Fast-Moving Consumer Goods Company in Rural Market Essay

Selecting the Market

The growth of the fast-moving consumer goods (FMCG) sector is observed in many European organisations. Some companies demonstrate high results and achieve high income levels. Sometimes, leaders may need additional time and skills to show success as this business becomes fashionable and not all companies gain power that can be easily shifted to retailers (Thain & Bradley 2014). Special attention will be paid to the development of a company that is defined as a European based supermarket multi-outlet business selling fast-moving household goods. The main goal of the company is to enter the international market.

The main characteristics of such organisation include low contribution margins and high volumes from the point of view of a marketer. Owners have to understand consumer demand and meet expectations, including price and quality. The best representatives of such supermarkets are Caprabo in Spain, DekaMarkt in the Netherland, or Morrisons’ in the United Kingdom. The companys specific attractions include the use of the Internet to provide customers with an opportunity to make purchases online; and specific quests for all clients to increase the level of their interest and attain satisfaction among the target audience (Rubin & Turner 2016; Vanelslander, Deketele & van Hove, 2013). However, it is also necessary to consider such important characteristics from the customer’s point of view as low price, rapid consumption, and frequent purchase (Kundu 2013). To meet these demands, supermarket’s main business should not have specific boundaries or frames. People have to get access to different goods and services.

Modes of Entry

An organisation that deals with fast-moving household goods may experience a number of problems and challenges. Supermarkets have to evaluate their options, focus on discount retailing, and meet all competing formats (Lamey 2014). As a rule, it is expected that such organisations have to choose appropriate modes of entry into an international market and use the channels that may be employed. Some researchers continue bothering if it is necessary to develop new entry modes (Shaver 2013). Still, as far as it is hard to control new organisations, these new modes cannot be stopped or avoided.

In this case, it is recommended to focus on such entry mode that may expand business with a less developed early stage emergent nation, low capita income, political instability, and high and rapid growth of population. Regarding the current political instability in Europe and frequent cases of migration from countries where military events occur, many modern supermarkets can meet these characteristics. The best solutions for such supermarkets may be strategic alliances, frequent access to technology, and low-cost exporting to the countries where people may need additional help and provision. The main task is to stabilise trade relationships with the chosen countries, investigate all possible risks and benefits, and identify several short-term and long-term goals. Though it may be hard for a local supermarket to penetrate other countries and regions because of the existing competitions and trade variety, there is a chance to use its main characteristics and improve consumer involvement through sales and numerous discounts.

Reference List

Kundu, SS 2013, ‘Customers’ perception towards the fast moving consumer goods in rural market: an analysis’, International Journal of Techno-Management Research, vol. 1, no. 2, pp. 1-15, Web.

Lamey, L 2014, ‘Hard economic times: a dream for discounters’, European Journal of Marketing, vol. 48, no. 3/4, pp. 641-656.

Rubin, C & Turner, F 2016, Cheaper easier direct: how to disrupt the marketplace and create your wwn e-commerce empire, Chad Rubin, New York, NY.

Shaver, JM 2013, ‘Do we really need more entry mode studies?’, Journal of International Business Studies, vol. 44, no. 1, pp. 23-27.

Thain, G & Bradley, J 2014, FMCG: the power of fast-moving consumer goods, First Edition Design Publishing, Sarasota, FL.

Vanelslander, T, Deketele, L & van Hove, D 2013, ‘Commonly used e-commerce supply chains for fast moving consumer goods: comparison and suggestions for improvement’, International Journal of Logistics Research and Applications, vol. 16, no. 3, pp. 243-256.