2. I would like to explore the FMCG sector
from a consulting perspective. In today’s
day and age, this sector covers the most
commonly used consumer goods in day-
to-day life where circulation of goods in
the market is high in volume and low in
prices.
Utilizing my proven leadership and
interpersonal abilities, I will be able to
establish an instant connect with clients
from this sector and present
recommendations in a systematic and
convincing manner, thereby addressing
the issues and challenges plaguing the
sector.
3. Understanding People and their Demands
Responding to the Environmental Change
Understanding Inflationary Pressures
Surviving Competition
4. People :
The FMCG sector majorly thrives on
consumer demand and one of its
biggest challenges, also from a
consulting perspective, is
understanding and tackling the needs
of people from all over the world.
For example – with the consumer’s
evolving tastes and preferences, the
demand in the market changes.
Demand :
Demand depends on geography to a
great extent - that is, which part of the
world the company is supplying a
particular product to and whether the
product would flourish there or not as
compared to its receptivity in other parts
of the world.
For example – a worldwide burger chain
was introduced in India in 1987;
however, it broke even after 20 years, in
2007, due to its slow growth in the Indian
market owing to differences in taste and
cultures
5. The FMCG industry is partially controlled by environmental changes. If farmers do
not receive a good monsoon, produce such as wheat, maize, etc. gets directly
affected that further leads to:
Increased demand of the produce
Reduced supply of the produce
Adverse environmental conditions also reduce the purchasing power of farmers
themselves, as they do not get proper monetary compensation for their produce
in such situations.
6. In each market/country, it is imperative
to source cheaper raw material and
skilled labour so as to maximize profit
from that product.
If a company is unable to achieve this,
it will impact the manufacturing and
pricing of the product leading to
inflation, a significant challenge faced
by this sector.
7. The FMCG sector is a very competitive space as each product has an equally good
alternative.The challenge around competition in this sector is:
To maintain the interest of the consumers, for which the FMCG companies must
come up not only with new versions of an existing product but also new products.
While living up to the competitive spirit, a product might fail in the market directly
impacting the revenues of the company.
8.
9. As this sector is largely driven by the consumer and their satisfaction, the key to success
in this sector is :
To carry out market surveys in both rural and urban markets.
Ensure consistent and quality-driven consumer care post sale.
Establish healthy consumer relations.
The consultation I would provide to my clients in this respect would show them:
How to put a low-cost after-sales support infrastructure in place.
How to solve consumer grievances and enhance sensitivity towards them.
IE’s Organisational Behaviour course will help me in this regard to apply relationship and
conflict management principles effectively.
10. Inflationary pressure is a major challenge confronting the FMCG sector & the key is to:
Have an effective supply chain management right from the point of origin to the point of
consumption.
Conduct market and product research consistently.
Have FMCG sector specialists identify the inflation scenarios from time to time.
The consultation I would provide would guide my clients on:
How FMCG companies can groom their middle level management to vastly focus on better
supply chain management.
How to staff FMCG sector specialists on these engagements that I carry out for my clients.
How they can spread word in the market about the excellent consumer service they
provide, thereby creating an authentic voice for themselves in the market.
IE emphasizes greatly on business ethics and integrity. Implementing these principles, I
will create Belief in my clients and thus will be able to play an important role in this
sector.
11. Managing competition in the market covers all aspects spanning price management, brand
management, and effective delivery of quality products.The key here is to:
Perform a SWOT analysis, identifying the Strengths, Weaknesses, Opportunities and Threats of the
other brands in the market as against the brand I work for.
Design innovative ways to market products through creative advertising campaigns and well thought
out promotional activities.
The consultation I would provide would help my clients to understand:
How to conceptualize and fabricate new strategies to drive publicity that can keep the brand value
alive in the market for a sustained period of time.
How to consistently counter attacks on the brand name with the help of an efficient legal team in my
company.
How to shape a my firm’s strategy by analysing the FMCG industry at large and competitive
behaviour in general.
IE’s courses like Marketing Management and Strategy would align my thinking towards these aspects so
that I can advise my clientele successfully.
12. In cases where the production of raw material is impacted due to environmental
changes, it is important to:
Store a fixed part of every batch of the produce by default so that it can be used during crises
such as a bad monsoon.
Manufacture safe and environment-friendly packages to store produce for a longer time .
Sell the partial produce in a package over the counter.
My consultation would include advising my clients on:
How to expand the business through mergers and acquisitions, not only focusing on
organic/internal growth of the firm but even inorganic/external growth.
How to establish a global footprint so that products, raw materials and labour can be utilised
from one country when the environment is unfavourable in the other country.
13. Spearheading critical projects and dealing with clients from across the world, I have
cultivated an open mind, listening skills and adaptability. The Human Resources
module at IE will further develop my leadership and team skills that will stand me in
great stead as a consultant. I would establish strong connections and lasting working
relationships with people from across the world and thereon persuade my clients to
accept my recommendations/consultation for their business.
I will use the learning from the Negotiation course while offering consultation to my
clients as well as target companies whom my clients want to merge with/acquire.
Interacting with international peers at IE will refine my pre-existing interpersonal
competencies and expand my understanding of the FMCG sector. With this shared
knowledge, I will learn to research, analyse and understand the global markets
better.
14. Thus, the IE MBA will groom me into a global leader capable of comprehending
and addressing the challenges of the sector I wish to specialize in.
