An Assessment of The Demand for New Products of Fast Moving Consumer Goods (FMCG)

Abstract

Assessing the approximation of demand for a new product is a complex work, while current research on demand assessment is limited. The purpose of this paper is to identify, describe, and obtain deep understanding comprehensively about: (1) the assessment of demand by principal companies in order to create or innovate new products; and (2) buyer responses regarding the assessment on demand aspect concerning on new product buying decision. This research uses qualitative method by phenomenology theoretical design that is: Fast Moving Consumer Goods (FMCG) principal within new product innovation, and FMCG wholesaler phenomenon within transactional buying-selling process between wholesalers and distributors. Data interpretation for this research is constructivism philosophy that is based on the location where buyer and seller, and companies do exist at traditional trade. The result identifies demand aspects those are demand of competitor product and categorical product, product segmentation, and demand of the product itself is: (1) several aspects that are valued by marketers in new product innovations. Aspects of demand are assessed by marketers for marketing mix strategy planning; and (2) the essences and buyer responses. Demand aspects are assessed by the buyer to estimate level of demand of new product within competition at internal or external condition.

Channel capability and the effectiveness of new product strategies

“…Bergen et al (1992) can be seen as the originator of agency theory for the field of marketing management. However, the theory is still rarely touched by many researchers in their studies (Trihatmoko, Napitupulu, Purnamasari and Kurniawanto, 2018; Trihatmoko, 2016; Trihatmoko et al , 2016b). Transactional between suppliers and buyers are identified based on the type of business and the characteristics of the relationship between the business actors, namely in the context of direct competition, exclusive contracts and temporary contracts (Trihatmoko, Harsono, Wahyuni, Haryono and Lukviarman, 2018).…”

“…Trihatmoko, Napitupulu, Purnamasari and Kurniawanto’s (2018) study illustrates that the new product innovation set by the principal is motivated by competing products and their categories, as well as product segments. Product innovation is covered by planning a marketing mix strategy.…”

“…It can be used to assess or create a level of product demand. However, the demand for a product is expected by the buyers of “wholesale type intermediates” related to the product distribution level itself (Trihatmoko and Mulyani, 2018) and the capacities of buyers in handling products offered by their suppliers (Trihatmoko, Napitupulu, Purnamasari and Kurniawanto, 2018). As concluded by Sashi (2009), such transactional exchanges will provide opportunities for the development of long-term relationships between suppliers and customers in marketing strategies.…”

New Product Pricing Strategy and Product Performance Assessment in Fast Moving Consumer Goods

“…New products competing in the FMCG market are a strategic outcome of manufacturers in terms of brand strategies (Nijssen and Agustin, 2005;Trihatmoko, 2016;Trihatmoko et al, 2018). The new product strategy should be integrated according to the 4P's strategies, so the pricing strategy set by the company is part of corporate management, and in this case, it is also related to the relationship marketing, which represents the connection to the customers.…”

“…FMCG business problems are indicated to be inseparable from the role of distributors, namely distribution and wholesale companies, or retailers. On the other hand, business of wholesalers are products that compete with other product's category from their suppliers (Trihatmoko et al, 2018). The next question is what is the product pricing strategy set by marketers, and how to assess the success of the product.…”