Assessment of slow moving goods in fast moving consumer segment: Analysis and findings

Abstract

Everyday observation at the student run store here at IIMB was the inspiration for this project work on "Assessment of slow moving goods in the Fast moving consumer goods sector". In this study we have tried to identify some of the reasons for slow movement of certain products and come up with measure to ensure faster movement of these products. We started by doing a secondary search to understand the FMCG industry, its characteristics and identified the current trends in the industry. We also studied the retail industry, its structure and management as it is a major stakeholder in the FMCG sector. We then performed a literature survey to identify the characteristics of slow moving goods and methods used to identify them and actions taken to push the same. Post which based on this learning listed a few empirical examples of slow moving goods. A two phase methodology was adopted for further research. In Phase I we performed primary research where in we conducted interviews with retailers, customers and experts in the field. Insights from this phase enabled us to develop a two pronged approach through which 15 products were identified and a secondary research on these products was performed. In phase II we conducted a consumer survey to understand the consumer perspective regarding slow moving goods with reference to the 15 products which were identified in phase I. Further a retailer survey was conducted to understand the current dynamics of the products in the retail stores. Based on the insights from our research we have given recommendation to the retailers and the company to ensure faster movement of these slow moving goods.