three different categories
Fast moving consumer goods refer to products that are sold quickly and at a relatively low cost. Products categories include soft drinks, toiletries, over the counter drugs, processed foods and a wide range of other consumables. These products are normally sold in large quantities and sometimes have a short shelf life.
The main differences between FMCG & retail in the businesses I have worked in are; FMCG are the manufacturer of the products to the retailer and retail are the sellers to the end consumers, thus both businesses are part of the end to end chain.
Best way to grow is to spend time in both Sales and Brand Management through your career. Strong Sales Marketing people often grow to lead FMCG businesses as their CEOs. Chemistry / Science / Engineering / Technical Background: People from this background have a great career too.
In India, one in every two items bought via online shopping platforms such as Amazon and Flipkart belongs to fast-moving consumer goods such as cosmetics, food and beverages, skincare and other categories. FMCG products remain the most sold items on e-commerce platforms by volume.
Last but not the least, FMCG industry provides one of the brightest employment prospects across profiles. It is one of the highest paying industries, with a very strongly paced career progression opportunities.
Top Tips for a Successful FMCG Sales job Interview
- PREPARE & ASK QUESTIONS. With any interview preparation, you should have researched several questions of your own to ask.
- BE ENTHUSIASTIC. Make sure you show your enthusiasm for the position and company throughout the interview process.
- SUMMARISE YOUR STRENGTHS.
The FMCG (Fast Moving Consumer Goods) is one of the most exciting industries to work with! This lends FMCG a level of job security unknown than other industries. FMCG offers an opportunity to express your creativity through developing new ideas for products, packaging, branding, and advertising.
ECO: It stands for Effectively Covered Outlet or Effective Coverage which means how many outlets out of total outlet of a route or market or territory are making at least one memo in a month. With ECO a company measures active outlet number.
A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store. The label allows vendors to automatically track the movement of inventory. The characters are a code that the price, product details, and the manufacturer.
Drop Size means the volume of Unit of all Products in a single delivery to a Restaurant.
The frequency distribution of drop sizes (diameters, volumes) that is characteristic of a given cloud or of a given fall of rain. The drop- size distribution is one of the primary factors involved in determining the radar reflectivity of any fall of precipitation, or of a cloud mass.
PER DEALER OFFTAKE (PDO)Ratio of sales by volume to the total number of dealers handling the product.
Weighted distribution percentageThis percentage is related to the sales turnover of a product category in comparison to the sales turnover obtained from stores selling a particular product from that category—this can be calculated globally or locally for a particular area.
Numeric distribution is based on the number of outlets that carry a product (that is, outlets that list at least one of the product's stock-keeping units, or SKUs). It is defined as the percentage of stores that stock a given brand or SKU, within the universe of stores in the relevant market.
KPI to measure the % of visits where sales transaction(s) were achieved. Written by Oliver Huggins. A useful KPI to measure field team performance in sales is Strike Rate. The strike rate is the percentage of visits where a sales transaction (e.g. an order, invoice) was generated on a store visit.
Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are products that are sold quickly and at a relatively low cost. FMCG is the most common acronym in use across most of Europe, Asia, and Oceania, while CPG is used more frequently in the Americas.
The main challenges companies must face up to in the future if they wish to grow sustainably and profitably:
- The Marketing Challenge.
- Promote and look after new channels.
- Multichannel Sales Equality.
- Global.
- Organizational Model.
- Innovation.
- Efficient management of Prices and Promotions.
- Generate Value.
Sales strategy for FMCG products in 4 steps:Make Perfect Store happen in your organisation. Select the stores with the greatest selling potential. Consumer goods companies offer more and more products within the same categories. This increases the competition year by year.
There are many different types of relative valuation ratios, such as price to free cash flow, enterprise value (EV), operating margin, price to cash flow for real estate and price-to-sales (P/S) for retail. One of the most popular relative valuation multiples is the price-to-earnings (P/E) ratio.
