Product Placement Strategy in the Business Market Competition: Studies of Fast Moving Consumer Goods

Abstract

The phenomenon of distribution intensity has received little attention in academic research, particularly in its relation to the distribution of Fast Moving Consumer Goods (FMCG). This paper aimed at exploring distribution management practices that is appropriate for describing concept and theory related to product placement in the market. The paper uses either qualitative research method as phenomenology by using the philosophy of constructivism interpretation or grounded theory by philosophy of pragmatism interpretation. The data obtained to study the development in FMCG distribution management in term of channel group of traditional markets in Indonesia. The result identifies and describes that product placement concept pervades relations among: (1) the firm’s strategic policy; (2) numbers, types, and roles of salesperson; (3) the distribution level of product; and (4) the customers’ coverage expansion. Theoretically this paper proposes four typical of product placement strategies namely; trial, introduction, attacker, and leader. It might be argued that the findings of this study have constructively arranged the concept and theory of product placement as a form of its novelty. The result of the study contributes into the concept of “place” in marketing mix, along with the use of agency theory as an alternative perspective in marketing management research.

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

“…Level of demand assessment conceptualization according to the business interests of the product makers and the merchants provide a new perspective on demand, especially related to new product innovation on FMCG business. Therefore, the results of this study will have implications for strategic studies in determining brand strategy by Kotler and Armstrong (2013), Nijssen and Agustin (2005), Nijssen (1999), Trihatmoko (2016), and Trihatmoko, Mulyani, and Lukviarman, 2018).…”

“…New product innovation is theoretically called brand strategy, which consist of : line extension, brand extension, multi brand, and new brands (Kotler and Armstrong, 2013;Nijssen and Agustin, 2005;Nijssen, 1999;Trihatmoko, 2016;Trihatmoko, Mulyani, and Lukviarman, 2018). New products created from any types of strategy selected by the company, aims to position the product in the market.…”

“…Buying-selling transaction between wholesalers and distributors in this paper will be focus about the transactional of new products as a result from the innovations of the companies, as a principal party. New product criterions are brand strategies product innovation (line extension, brand extension, multi-brand and new-brand) by principal party as the brand product owner (Kotler and Armstrong, 2013;Nijssen and Agustin, 2005;Nijssen, 1999;Trihatmoko, 2016;Trihatmoko, Mulyani, and Lukviarman, 2018). Revealing the product innovation strategy by principal and buying decision process of new product by wholesaler is the originality and the uniqueness of this paper.…”

“…Likewise, estimating the demand for a new product innovated by Fast Moving Consumer Goods (FMCG) has a complexity in each of its business players. We have stipulates channel management of FMCG uses indirect channel system (see, Haryono, 2016a and2016b;Trihatmoko, 2016;Trihatmoko, Mulyani, and Lukviarman, 2018;Trihatmoko, Harsono, Wahyuni, Haryono, and Lukviarman, 2018). Thus, it can be assumed that the perceptive assessment of the demand for a new product is highly dependent on the interests of management.…”

“…This paper selects the subject on marketer from FMCG companies, and business market for intermediary type that is wholesaler in Indonesian traditional trade. On 2010, a consulting company identifies intermediary customer of FMCG in Indonesian traditional trade reaches number 2.480.349 stores, include wholesaler, semi-wholesaler, and retail (Trihatmoko, 2016b;Trihatmoko, 2016;Trihatmoko, Mulyani, and Lukviarman, 2018). It means that object of FMCG is interesting and complex.…”