The paper "Consumer Packaged Goods in Australia" is a good example of a marketing assignment. Consumer packaged goods (CPG) or Fast-moving consumer goods (FMCG) are low-cost goods or products that are sold fast, usually in a matter of days. FMCG constitute a large part of consumers’ budget in Australia. Retail trade, in these goods that are their supply has attracted considerable interest from policy-makers, companies and consumers because a well-functioning retail industry is important for the daily provision of these FMCG’ s at low cost and high quality. The retail industry for FMCGs in Australia has drastic transformed itself over the years.
New retail formats like hyper/supermarkets and chain stores, have rapidly diffused in almost all major cities and increased their market share at the expense of traditional formats in the last two decades (Magee, 2009). This transformation of FMCG’ s has raised concerns about competition in FMCG’ s sector. Market Research is the compulsory homework of any company in the FMCGs industry. This report will analyse various industries that deal with FMCG’ s and recommendation given based on the analysis of the discussion. Question 1 Confectioneries products are food products that are rich in sweetener or sugar content.
Confectioneries are products that commonly include sweets, cocoa, toffees, chocolate, sugar syrup and more (Margaret, 2006). Some of the key drivers for the growth of confectionery industry is rising disposal income of consumers and urbanization. Also growing population in Australia is anticipated to impact the growth of the confectionery industry (Cleave, 2012). The market for products like chewing gums, chocolates and energy bars is expected to grow in the future. Key companies in this industry are now entering the Australia market to exploit market opportunities in the confectionery industry (Margaret, 2006). The major restraint for confectionery market is good health awareness among consumers (Magee, 2009).
Confectionary is products which have a high amount of sugar calories and is considered to be the reason for illnesses like diabetes and obesity (Cleave, 2012). Thus, many manufacturers are now trying to develop sugar-free products with the same taste and with low calories. Figure 1. Observed sales for period 1 and 2 Shopper class Observed period 1 sales Observed period 2 sales Product Share period 1 Product Share period 2 Non-buyers 0 112 0 17% Light buyers (bought 1 unit) 106 100 16% 15% Medium buyers (bought 2-3 units) 183 146 27% 22% Heavy buyers (bought 4+ units) 375 305 56% 46% Average 166 166 25% 25% Total 664 663 Figure 2: Table for market share Product Share Market’ s total sales or market share is earned by a company over a specified time period.
Market share is found by taking the business’ sales over the period and then dividing it by the total sales of the business in the same period. Market share metric is employed to give a general idea of the size of a business to its markets and its competitors (Cleave, 2012). The owner of the business can look at the product market share decrease or increase because they can be a good sign of the relative competitiveness of certain products (Margaret, 2006).
As the total market for a product grows, a business that maintains its product share is growing incomes or revenues at the same rate as the total market. A business that is growing its product share will be rowing its product’ s revenues faster than its closes rivals. Increase in product share can allow a business to achieve greater scale in its improve profitability and operations. A company will look to expand its product share, in addition trying to grow its market size by appealing to a larger demographic through advertising or lowering prices (Margaret, 2006).
As the market for the product grows, many analysts view the increase or maintenance in market share as a sign of business competitiveness. Increases in product share might come from broadening demographic appeal, innovation, simply advertising, or lower prices.
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