WHAT DO YOU BELIEVE ARE THE GREATEST CHALLENGES FACING THE SECTOR OR INDUSTRY YOU WOULD LIKE TO SPECIALIZE IN AT IE? WHAT ROLE DO YOU HOPE TO BE ABLE TO PLAY IN THIS SECTOR OR INDUSTRY IN THE MEDIUM TERM? -IE BUSINESS SCHOOL

NEHA GUJRAL

THE FAST-MOVING CONSUMER GOODS SECTOR FROM A CONSULTING PERSPECTIVE

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.

THE CHALLENGES OF THE FMCG SECTOR

Understanding People and their Demands

Responding to the Environmental Change

Understanding Inflationary Pressures

Surviving Competition

UNDERSTANDING PEOPLE AND THEIR DEMANDS

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

RESPONDING TO THE ENVIRONMENTAL CHANGE

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.

UNDERSTANDING INFLATIONARY PRESSURES

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.

SURVIVING COMPETITION

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.

ADDRESSING THE FMCG CHALLENGES WHILE PROVIDING CONSULTING SERVICES THROUGH WHAT I WILL LEARN AT THE IE BUSINESS SCHOOL...

CONSUMER SATISFACTION

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.

CONTROLLING INFLATIONARY PRESSURES

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.

MANAGING THE COMPETITION

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.

MANAGING THE ENVIRONMENTAL CHANGE

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.

COMBINING MY UNIQUE SELLING POINTS AND THE IE MBA

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.

NEHA GUJRAL

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.