FMCG (Fast Moving Consumer Goods)
1.
Market- Monopolistic Competition
As we can see that FMCG is one of the biggest organisation
not only in INDIA but also abroad, so it has a huge competition in the market
from the organisations producing similar products. It the big organisation so
it dominates the market through its pricing strategies and according to which
the other organisations have to keep.
2.
Price Discrimination
In FMCG products, the prices are discriminated according to
the nature of goods purchased by the customers, we can say that if suppose 50kg
of Milk is purchased which is termed as bulk purchase, the price offered by the
producer will decline to certain extent. In this second degree of price
discrimination is applicable.
3.
Economies of Scope
There are so many option present in FMCG such as a list of
company operating under FMCG like Amul for dairy products, Pepsi Co for
beverages, Nestle etc. so in this these small companies are sharing on single
platform (FMCG) which help consumers to get the quality product available in a
vast way across the nation and abroad.
4.
Economies of Scale
Here there are a variety of product produced in bulk so the
therefore the cost of production is somewhat change and then become constant
because the input provided for the same amount of product if some increment is
there then also only a few amount will be incurred as compared to when the
product is produced in less quantity.
5.
Rational People Think at Margin
Here we can see that Pepsi Co and Coca-Cola both are under
FMCG or moreover the price is somehow equal so through which we can say that
the product which provides low cost and give the best benefit out of it here
the concept applies. Suppose there are two products Pepsi Co and Coca-Cola,
Pepsi Co provides at 10/- and Coca-Cola at 12/-, but the benefit from both the
product is same so we can see that people will tend towards Pepsi Co because it
is providing same amount of benefit at cheaper price.
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