FMCG Company

C: Firstly, I would like to know what are the kind of products that the company sells?

I: There are liquid products like bodywash, facewash, etc.

C: Okay. Is it an industry wide decline, or only our company is facing the decline?

I: It is not an industry wide decline, only a few companies, including us are facing a decline.

C: What are the retail chains through which products are sold? Is there any particular distributor or retailer who has seen a decline?

I: There are 4 kinds of retailers. The decline has been seen in the airport segment.

C: So, I would like to distribute the demand at the airport into 4 headers- The footfall at the airport, the footfall in the shop, the number of customers buying the product in shop, including the quantity bought, and the after sales services provided. Can I know which among these is the reason in the decline of profits?

I: There is a decline in people entering our shops, and the quantity purchased post that.

C: Okay. I would like to look at it from four external factors- Affordability, Acceptability, Accessibility, and awareness. As there has not been any change in price, I would assume affordability is not the issue. Is there any change in how customers could access our shops?

I: Yes, you are right. The customers are not able to access the shop as they used to before. What do you think might be the reasons for that?

C: There can be a change in the positioning of the shop at the airport, there might be an infrastructural change at the airport, or a change in the route to the shop.

I: Okay, there has been an infrastructural change at the airport. A highspeed walk has been installed in front of the shop, because of which customers don’t stop at our shops. What do you think might be the reasons for decline in purchase quantity?

C: It can be looked at from the internal or external reasons. Internally, there can be a change in the product, price, packaging or the display of products in the shop. Externally, there can be a change in the environment with respect to political, ecological, technical, or legal restrictions.

I: Right, there has been an introduction of a restriction by the airport authorities with respect to the quantity of liquid to be boarded in the flight.

C: That explains the decline in the purchase quantity. So, we have identified two main reasons, the installation of high-speed walks, and the restriction on the liquid quantity. Would you like me to probe further?

I: That would be it. Can you suggest some recommendations for the same?

C: Sure. For the accessibility problem, in the short term I would suggest opening a window outlet apart from the speed walk. In the long term, the company can talk to the airport authorities for the replacement of speed-walk, or the replacement of the shop.

Regarding the quantity restriction, in the short term, the products can be sold in small sachets. In the long term, the company can consider introducing powdered products as a substitute to the liquid ones and lobbying with the airport authorities.

I: Great, we can close the case. Thank you.