Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
MBA Executive Research Project
Sales force of a typical FMCG company strives hard for the sake of increase in sales numeric and sales volumes. The sales team along with marketing personnel tries to achieve the sales goals set for them by the authorities; however, it has been observed in the context of Pakistan that retail & merchandizing practices are not at par with the global standards. This study attempts to find out the areas of retail & merchandizing practices of top FMCGs (i.e. Engro, Haleeb & Nestle) in the category of tea-whitener that require overhauling. This overhauling through the research will ensure that these companies have efficient distribution and retailing practices which will result in greater volumes and improved sales numeric.
Primary research for this was conducted through an elaborate review of literature available in comparative markets of the Far East such as Singapore and Philippines. The research performed in these countries can be compared with Pakistan in terms of microeconomic, macroeconomic and financial terms. Qualitative data using questionnaire surveys was collected from 50 randomly selected retailers and were asked for the retail & merchandizing practices of top FMCGs in the category of tea-whitener. These local practices were then compared to the best practices established by the world leaders in the same industry using a technique called Dimension Analysis. ANOVA F-Test for equality of means was used to check for equality between the mean values of responses as well as correlation matrices were obtained for each dimension to check for correlation among the performance of FMCGs.
The results obtained from the Dimension Analysis were used to propose some recommendations regarding retail practice to the top three companies in tea whitener category i.e. Engro Foods for Tarang, Nestle for Everyday Liquid and Haleeb for Tea Max. From primary research, it was indicated that SATDIR and SATINDIR scales proved very effective for rating this perception study of retailers. Our research punctuated the fact the Tarang is by far perceived to be the best product in tea — whitener category although tea max and everyday liquid are throwing their weight and proving to be boisterous competitors through improvements in financial support and better sales personnel. It also gives an important insight that good product in itself is not the sole determinant for increasing sales and distribution practices do matter a lot in a category as nascent as specialized tea whiteners in an emerging economy like Pakistan.
The study was limited to only 50 shops due to financial and project constraints. It was only limited to 4 areas of Karachi and the number cannot be extrapolated to the whole city of Karachi. The outcome of the study showed that Engro Foods can build on its product and invest in its distribution muscle to improve its perception. Nestle already has a good distribution infrastructure available courtesy of their partner, Burque Corporation. They need to invest more on the R & D and taste of their product. Haleeb as a company enjoys a good product and sales team, hence, they need to improve on their trade schemes and channel strategy to leverage their experience of dealing in dairy products in Pakistani markets.
Tanveer,, M. (2017). Tea whitener, sales practices of major players in Karachi (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/137
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