The Five Most Overlooked Threats Facing FMCG Organisations Today

ROCKLINE www.rockline.co.uk EUROPE THE 5 MOST OVERLOOKED THREATS FACING FMCG ORGANISATIONS TODAY Find out more about the often overlooked threats, including a lack of product innovation and supply chain disruption, that can damage the bottom line and reputation of FMCG companies. FMCG is a competitive industry, so it's important to stay one step ahead. The companies that do are obviously paying attention to the following five key threats, avoiding damage to their bottom line and their reputation. Find out what the threats are and how your company can avoid them. THREAT 1 LOSS OF MARKET SHARE 47% The primary reason for of company failures and a contributing factor in 63% of cases according to The Independent. Low customer loyalty increases the likelihood of company failure. According to Jill Griffin's book, Customer Loyalty: Monitoring and maintaining market share is key to the survival of FMCG companies. sine The average company loses 20-40% of its customers every year. It costs around Unhappy customers An unhappy customer will tell are less than 5X 10% 8-16 In High Cost of Losing a Customer, the more to attract people on average about their likely to buy from you again Score Association discovered that: a new customer dissatisfaction THREAT 2 NOT MAXIMISING YOUR ROI 96% 25% Less than of companies have the resources in place to fulfil project requirements. J.M. Tisch found that a lack of project planning and resources are the biggest risks to project ROI, causing 96% of all new projects to fail to meet or exceed targets. $200 MILLION Of the in projects managed by respondents each year - 37%or $74 MILLION of this was "at risk" at any one time according to a study by PM Solutions. THREAT 3 SUPPLY CHAIN DISRUPTION Supply chain disruption can reduce trust, cause lost revenue and significantly cause ham to even the most established brands. The Business Continuity Institute Survey in 2011 found that: -14% $5MILLION from a single A manufacturer can lose up to supply chain disruption 14% reported costs in excess of $1MILLION 49% 38% 32% Loss of productivity was reported by 49% of businesses, cost increases by 38% and 32% reported a loss in revenue FMCG companies need to ensure that they select reliable, financially sound suppliers with a good reputation. THREAT 4 LACK OF PRODUCT INNOVATION Short term focus, lack of time, resources and product innovation processes listed as main threats. The Faculty of Education reported that: It takes Only 3,000 1/4 1/3 ideas to get 1 commercially successful product product innovations make products that go it to market to market fail THREAT 5 PRODUCT RECALLS Product recalls can have a massive impact on purchase and revenue levels, as well as the image of the brand itself. According to Reeves Law Group: In the US alone the number of product recalls each year has grown by 85% 27,000. Around deaths are caused by unsafe products each year TAKEAWAYS Loss of market share can seriously damage your company - it's important to innovate and meet your customers' needs. Badly managed projects and lack of product innovation are huge problems for FMCG companies. It's important to select reliable and trustworthy suppliers to avoid the damage caused by supply chain disruption or product recalls. ROCHUNE FEROPI LINE KTROPE Find out why wet wipes should be your next product to help increase market share and innovation: 8 things to do with wipes that you've never thought of before 8 THINGS TO DO WITH WIPES THAT YOU'VE NEVER THOUGHT OF BEFORE Download your free eGuide Open up you imaginator wenit comea ta mentieg tihe vario.IS learing or porscral cyre recda of your oistamern