KLEENUP LTD

KleenUp Ltd

KleenUp Ltd

1. Introduction

In order to identify, analyse and evaluate the major differences along the supply chain for KleepnUP ltd in the manufacture and retailing of fast-moving-consumer-goods, it is important to define the different terms.

According to Wright, the supply chain can be defined as 'the entire network of suppliers, factories, warehouses, distribution centres and retailers that participate in the process from raw materials to finished products.'(www.soltempo.com)

The fast-moving-consumer-goods (FMCG) can be defined as 'the retail goods with a short shelf life either as a result of high consumer demand or because the product deteriorates rapidly.' (www.graduateopportunities.com) For instance, meat, fruit and vegetable, dairy products are perishable FMCG and alcohol, toiletries and cleaning products are FMCG with high turnover rates.

B2B marketing is according to Wright (2004) 'where one business markets products or services to another business for use in that business or to sell on to other businesses for their own use.' B2C marketing is 'where one business markets products and services either to another business, i.e. a wholesaler or a retailer to sell on to the end consumer, or to the end consumer direct.' (Wright 2004)

This report focuses on the FMCG market and provides an overview of the main differences in B2B and B2C regarding the market, the decision making process and the marketing mix.

2. The market

2.1. An overview

The FMCG is a low-margins business. It is extremely competitive. According to the firm Invensis 'the smaller companies tend to specialise in production of category products. A few global giants produce many brands but those brands fall into self contained categories as well.' (http://www.marcam.com) Thus the market is not one market but a collection of markets with many different types of products processes and requirements.

2.2. The competition

In B2B, the different participants are the raw material suppliers, service suppliers, the producers or manufacturers, intermediaries or resellers, retailers, government and not-for-profit. The competition comes mainly from few players as 'the products must match a particular solution sought' (Wright 2004). With technology and the internet, the competition is more and more international. It focuses on functional benefits offered and after sales services as functionality and reliability are crucial for an organisation.

In B2C, the main participants are the retailers, the wholesalers and the end consumers. In the FMCG, there has been increasing market concentration in recent decades. There is a reference to the 'big four', Tesco, Asda, Sainsbury's and Safeway. The competition is global and focuses on brand and prices as these factors have more impact on consumers. (www.blackwell-synergy.com)

2.3. The nature of the demand

The demand of B2B products in the FMCG market is influenced by the demand from the end consumers. Morris (2001) says that 'the demand for industrial goods is ultimately derived from the demand for consumer goods.' (Derek French, Stephen Mayson, Christopher Ryan , 2009)

In B2B, the demand is fluctuating. An increase or decrease in the consumer demand will have impact on the demand for manufacturing operations. There are also fewer customers. 'Not buying for a reason or other can have an immediate and ...