Consumer Goods Industries

The consumer products industry has been growing at a brisk pace in the past few years backed by robust economic growth and rising rural income. Growth drivers such as rapid urbanisation, evolving consumer lifestyles and emergence of modern trade have shielded the industry from the slowdown. In this industries each and every parts of the industries whether its accounts , marketing , administrative or branding  is taken care in systematically or tactically. There are some tips for the better analysis for company growth.

Profitability

 The success and profitability of any organisation in this industry is heavily dependent on how effective these companies are at addressing the changing demands of consumers. 

Profitability analysis shows how efficiently the firm is applying its resources to get the maximum returns. In the consumer goods organisation, Working capital management is considered to be a vital issue in financial management decision and it affects both liquidity and profitability of the firm. In terms of utilisation of resources to generate profits, measured by the return on equity and assets, the analysis reveals that the firms performed above the industry average.

Valuation

Portfolio management is conventionally associated with financial strategies: instead of putting all of 

the investment in one place, organisation spread it around and create a diverse portfolio of different types of investments. Then organisation manages the risk and return in the portfolio by adjusting the mix and amount of investments.

Brand equity

Consumers are more price-sensitive so offering more price promotions makes a lot of sense. Shoppers have a natural tendency to switch to private labels in order to save money. The logical thing for brands to do is to counter this tendency by either lowering their own price, or by offering sufficient non-price reasons to consumers to buy their brand. The brand can counter the price advantage of private labels by increasing its investments in advertising or new product activity. Both provide non-price reasons to purchase the manufacturer brand – image and improved functional performance, respectively. 

In the Consumer goods industry developing category is very important to increase brand valuation and build a brand of people. An organization should focus on to create a brand communication to increase the brand visualization among the consumer. For example Lifebuoy reaches out to thousands of children through its hand washing campaign, raising standards of hygiene on the Healthy Hoga. 

Marketing 

Under the marketing concept, the firm must find a way to discover unfulfilled customer needs and bring to market products that satisfy those needs. The process of doing so can be modeled in a sequence of steps: the situation is analysed to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are made, the plan is implemented and the results are monitored. It is vital that we understand your specific market niche and our marketing strategy for fast moving consumer goods commences with proper research in consumer goods sector to understand their motivations, preferences and habits when buying and also helps to define the size and shape of your market opportunity.  When firms first began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was to satisfy customer needs. Often these departments were sales departments with expanded responsibilities.

Customer orientation

Consumer Goods Services suite is used in this sector which is focused on operational excellence in order to eliminate waste and inefficiencies from the consumer goods supply chain; to reduce costs and increase customer satisfaction. Customer satisfaction can be achieved by improving customer service, optimising marketing spends, reducing operational costs; and streamlining processes through efficiency, quality, and productivity improvements

Achieving high levels of customer satisfaction requires that organisations continually monitor and examine the experiences, opinions, and suggestions of their customers and people who are potential customers. Improving service quality to meet customers’ standards is an ongoing part of doing business. In this way, customers drive the market and the organisation. At the same time that organisations act to attract and satisfy customers, the customers themselves exercise ultimate influence. Their satisfaction depends on both their expectations and their treatment.

People Capital

Staffs are a major resource in any business. This is particularly true in consumer industry, which has a very large amount of employees and which provides a range of services to its customers. As consumers nowadays play a very important role in consumer goods industry and employees are highly visible to the consumers, organisation must select and train employees carefully, especially care about their manners and appearance.

Quality of Distribution as Important as Quantity

Successfully positioning your brand in front of customers is one of the first steps in achieving profitable growth. To that end, companies must develop a long-term trusted status with customers. That process is driven by product quality.

The ability to differentiate provides consistent quality and good consumer value, earn a reasonable margin and reinvest in growth. Consumer products companies need strong data granularity to reduce operational risk, properly respond to an adverse event with a targeted recall, provide high quality and compliant products, and avoid counterfeiting issues associated with global trade. Organisation needs to ensure that entire enterprise’s operations and processes—including manufacturers and suppliers—meet the required standards. This is especially important to a company that owns the brand because it will bear the brunt of regulatory, media, and consumer scrutiny if there are any quality issues or product recalls.

Innovation: Timing it Right

Innovations are a key driver of growth. Consumer goods industry is undergoing a major transition as the shopper becomes a major driver of innovation. Consumers have become global in their aspirations and are more demanding. Consumer goods companies must create new products; achieve faster time to market and lower operational costs in order to remain competitive in the market. To sustain in the market innovation in the organization is very important. Innovation can be in any any department finance, marketing production and Human capital.

Corporate Governance 

Leaving aside our interest as business or even the government’s from a revenue perspective, we must not abandon consumers to counterfeiters, smugglers and adulterators. Consumers deserve safe and healthy products at a lower cost. They deserve a fair deal. With added scale that level playing field would bring, our cost of serving the people. Moreover, Corporate Governance is concerned with the establishment of a system whereby the Directors are entrusted with the responsibilities and duties in relation to the direction of corporate affairs. It is concerned with accountability of persons who are managing it towards the stakeholders. It is concerned with the morals, ethics, values, parameters, conduct and behavior of the company and its management. In addition to compliance with regulatory requirements, an organization endeavors to ensure that highest standards of ethical and responsible conduct are met throughout the organization.