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Global Executives Survey: Impact of Seasonality in FMCG industry

Global Executives Survey: Impact of Seasonality in FMCG industry

  • May 2017
  • 65 pages
  • ID: 4938398
  • Format: PDF
  • By GlobalData

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Global Executives Survey: Impact of Seasonality in FMCG industry

Summary
Seasonality is the systematic time series attribute mainly influenced by factors such as weather, vacation, and holidays, directly or indirectly through the production and consumption decisions. Any foreseeable change or pattern, which repeats over a one-year period, can be termed to be seasonal.

Seasonality of products is primarily influenced by assortment, prices, and promotional activities. The survey results reveal that more than half of companies do not adjust their assortment based on a season. This is creating a business scope for seasonality in order to grow sales. Globally, Q2 is considered as the heaviest time for advertising and marketing activities. The majority of suppliers possess the same or comparatively less ability to provide ingredients year round, creating opportunities for new suppliers to initiate business. Furthermore, new flavors of existing products for recurring events have the potential to offer the highest return on investment for FMCG manufacturers and suppliers.

Most of the companies prefer Q2 as the heaviest time to invest in advertising and marketing activities. Furthermore, in Asia-Pacific, Q4 is most suitable for moderate and high advertising and marketing activities. Globally, Q1 and Q3 are considered the crucial time frames for seasonal product launch activity. However, in Asia-Pacific, Q2 and Q3 are moderately heavy for seasonal product launch activity.

Engaging in forward price agreements with suppliers is considered the primary option to deal with ingredient price fluctuations. Additionally, respondents operating in Asia-Pacific and the Rest of the World intend to increase the number of suppliers to encourage price negotiations. Globally, hypermarkets and supermarkets are identified as the most profitable retail channels for selling seasonal goods. However, 45% of respondents preferred convenience stores.

This report is a result of an extensive survey drawn from our exclusive panel of industry executives. These respondents are drawn from our Industry Insight Panel, an exclusive industry panel covering over two million business professionals worldwide.

The report "Global Executives Survey: Impact of Seasonality in FMCG industry" is a comprehensive desk research was also conducted across FMCG industry sources, with a focus on examining the impact of seasonal availability of ingredients on manufacturer’s production costs, significance of discounting, advertising and marketing activity, and identifies profitable retail channels for bestselling seasonal goods. It also covers examples of the latest products, or market expansion plans within the industry, to validate primary research observations.

Companies mentioned in this report: Starbucks, The Solid Chocolate Company

Scope
- Most of the companies prefer Q2 as the heaviest time to invest on advertising and marketing activities
- Globally, Q1 and Q3 are considered the crucial time frames for seasonal product launch activity
- Engaging in forward price agreements with suppliers is considered the primary option to deal with ingredient price fluctuations
- Globally, hypermarkets and supermarkets are identified as the most profitable retail channels for selling seasonal goods
- Christmas, New Year, and Easter are the major events targeted by companies when focusing on future new product development or marketing activity

Reasons to buy
- Organizations can actively plan for the next seasonal promotion by analyzing the significance of seasonality trends and their performance
- As holiday periods are extremely competitive times of the year, organizations can streamline their product portfolio by understanding seasonal products that offer the highest ROI
- Helps organizations to allocate funds towards seasonal events that have the highest ROI
- Organizations can improve their promotional abilities and develop their seasonal brand awareness by knowing the best period (by quarter) for advertising and marketing activity.

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