To study the change in the profitability of the major FMCG companies in Pakistan due to change in the demand and consumer preferences in the rural areas.
Research Topic
To study the change in the profitability of the major FMCG companies in Pakistan due to change in the demand and consumer preferences in the rural areas.
Introduction:
Products which have a quick turnover and relatively low cost are known as Fast Moving consumer Goods (FMCG). FMCG products are those that get replaced within a year or less and the purchase cycle is relatively small as compared to other products and consumer durables.
Examples of FMCG products include a wide range of frequently purchased products such as food item, toiletries, soaps, cosmetics, tooth cleaning, shaving detergents as well as some non durables such
as
glass
ware,
bulbs,
batteries,
paper
products
and
plastic
goods.(StudyMode.com,2011).
The FMCG industry in the country is playing a vital role in the supporting the economy as well as fulfilling the demands of the consumers according to their like, dislike and preferences. The higher crop prices have increased the Income level of farmers residing in the rural areas.
(Dr.Nisar Ahmed, D. R.,2012). This have increased the purchasing power of the people and their demands are switching from conventional products to FMCG products. The managing director of a giant FMCG company in an interview said that “Our observation is that Pakistan’s rural economy is doing better than urban areas.” (Pakistan link.com)
Statement of the Problem:
Although the FMCG sector is contributing a major part in the developing the economy of the
Country and improving their profitability but during the recent past years their also remains few other avenues for this sector to explore. The rural areas of Pakistan yet remain undiscovered by the FMCG companies. These areas consist of the major population of the country and their purchasing power has increased over the years. The companies are unable to increase the share of their profitability if the rural areas are not make aware of the company’s
To study the change in the profitability of the major FMCG companies in Pakistan due to change in the demand and consumer preferences in the rural areas.
Introduction:
Products which have a quick turnover and relatively low cost are known as Fast Moving consumer Goods (FMCG). FMCG products are those that get replaced within a year or less and the purchase cycle is relatively small as compared to other products and consumer durables.
Examples of FMCG products include a wide range of frequently purchased products such as food item, toiletries, soaps, cosmetics, tooth cleaning, shaving detergents as well as some non durables such
as
glass
ware,
bulbs,
batteries,
paper
products
and
plastic
goods.(StudyMode.com,2011).
The FMCG industry in the country is playing a vital role in the supporting the economy as well as fulfilling the demands of the consumers according to their like, dislike and preferences. The higher crop prices have increased the Income level of farmers residing in the rural areas.
(Dr.Nisar Ahmed, D. R.,2012). This have increased the purchasing power of the people and their demands are switching from conventional products to FMCG products. The managing director of a giant FMCG company in an interview said that “Our observation is that Pakistan’s rural economy is doing better than urban areas.” (Pakistan link.com)
Statement of the Problem:
Although the FMCG sector is contributing a major part in the developing the economy of the
Country and improving their profitability but during the recent past years their also remains few other avenues for this sector to explore. The rural areas of Pakistan yet remain undiscovered by the FMCG companies. These areas consist of the major population of the country and their purchasing power has increased over the years. The companies are unable to increase the share of their profitability if the rural areas are not make aware of the company’s
References: Dr.Nisar Ahmed, D. R. (2012). Food Consumption Analysis in Pakistan. Interdescilipinary Journal Of Contemporary Research In Business , 1-10. Dr.Jyoti Rana (April 2012). Rural Consumer Behaviour (A Case of Premium FMCG Brands),International Journal of Engineering and Social Sciences,Vol.2,Issue 4. C. Samuel Craig, Susan P. Douglas, (2011),"Empowering rural consumers in emerging markets", International Journal of Emerging Markets, Vol. 6 Iss: 4 pp. 382 - 393