The Impact of Marketing Strategy on Business Performance: Case Study of a Fast Moving Consumer Goods Company

Abstract

The purpose of this research was to investigate how the FMCGs Company’s marketing approach contributed to its overall financial success. The study used monthly data for two years running from 2020 to 2021 making 24 observations. These observations covered the time period during which the company had implemented various marketing strategies, which resulted in expenditures on physical and digital marketing activities. In addition, the FMCG Company introduced the pricing strategy to market its products. These strategies entailed making modifications to the prices of the items that the company sells in order to encourage more people to purchase its products. In light of this, the research employed a quantitative methodology in the form of the Vector Autoregressive (VAR) Model in order to ascertain the influence of expenditures on physical marketing activities, expenditures on digital marketing, and pricing marketing strategies on the short-term business (sales) performance of Trade Kings. This study recommends that the FMCGs Company allocates more funds to physical marketing strategies such as setting up billboards about their products and hiring sales representations to market and sale products on their behalf. Because the study found that expenditure on Physical marketing strategy has a positive and statistically significant impact on sales, and that pricing marketing strategies tend to have negative impacts on the sales in the short run, the study found that expenditure on Physical marketing strategy has a positive and statistically significant impact on sales. But, in order to avoid suffering losses in the market, the FMCGs needs to adjust their pricing methods and lower their prices.

Keywords: Marketing, strategies, pricing, physical, digital, business, performance, sales

DOI: 10.7176/JMCR/92-01

Publication date: January 31^st 2024