Achieving healthy growth of FMCG company under promo pressure and promo hunting trends in the Czech Republic

Serhiy Bobrytskyy

Master's thesis

Abstract:

This master thesis focuses on the Promo Pressure Phenomena in the retailer industry. The research can be considered as a replicable roadmap for the FMCG company to escape from the promotional spiral and start to grow “healthy”. The author presents Mind Map, which summarizes all of the definitions, measurement tools and the elements of Promo Pressure, and it serves later as a Promo Pressure Model. Based on the detailed literature review, quantitative data obtained from different sources and the qualitative data gathered from the interviews with industry experts, the author evaluates the promotional situation in the Czech Republic and provides the set of recommendations how to make the FMCG company experience the sustainable growth under high promo share in the industry. Such recommendation proposals include: understanding the industry environment, the introduction of PRGM role within the company, proper management of different channels, setting the adequate company targets and policies, innovations and being in line with the new marketing paradigm.

Abstract:

This master thesis focuses on the Promo Pressure Phenomena in the retailer industry. The research can be considered as a replicable roadmap for the FMCG company to escape from the promotional spiral and start to grow “healthy”. The author presents Mind Map, which summarizes all of the definitions, measurement tools and the elements of Promo Pressure, and it serves later as a Promo Pressure Model. Based on the detailed literature review, quantitative data obtained from different sources and the qualitative data gathered from the interviews with industry experts, the author evaluates the promotional situation in the Czech Republic and provides the set of recommendations how to make the FMCG company experience the sustainable growth under high promo share in the industry. Such recommendation proposals include: understanding the industry environment, the introduction of PRGM role within the company, proper management of different channels, setting the adequate company targets and policies, innovations and being in line with the new marketing paradigm.

Keywords

Promo Pressure, Promo Share, Incremental Sales, Promo Hunting

Keywords

Promo Pressure, Promo Share, Incremental Sales, Promo Hunting

Language used: English

Date on which the thesis was submitted / produced: 11. 12. 2018

Thesis defence

• Date of defence: 5. 9. 2019
• Supervisor: Martin Machek
• Reader: Jan Wegert

Vysoká škola ekonomická v Praze

Master programme / field:
Ekonomika a management / International Management