Chapter 4 – Data Analysis and Results This chapter aims to determine the influence of innovative distribution channels on the performance of market. For this particular purpose, a questionnaire survey was conducted with the FMCG employees regarding the development of distribution systems. In total, the questionnaire incorporated 163 questions all of which were linked with the influence of innovation on the size, growth, and profitability of the FMCGs. With 500 questionnaires, only 104 were returned where the frequency of males and females was 71 and 33 respectively. In the same manner, the respondents had different qualification levels which ranged from high school to PHD with their respective departments and majors. The age group of the respondents had a range of 18 till 65. The data reflects the analysis of 40 different companies. However, the data is not adequate enough due to time shortage or lack of interest demonstrated from the respondents but still it would help in analysing the data reflecting the main theme of the research study along with the hypothetical tests as well. 1
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Chapter 4 – Data Analysis and Results
This chapter aims to determine the influence of innovative distribution channels on the
performance of market. For this particular purpose, a questionnaire survey was conducted with
the FMCG employees regarding the development of distribution systems. In total, the
questionnaire incorporated 163 questions all of which were linked with the influence of
innovation on the size, growth, and profitability of the FMCGs. With 500 questionnaires, only
104 were returned where the frequency of males and females was 71 and 33 respectively. In the
same manner, the respondents had different qualification levels which ranged from high school
to PHD with their respective departments and majors. The age group of the respondents had a
range of 18 till 65.
The data reflects the analysis of 40 different companies. However, the data is not
adequate enough due to time shortage or lack of interest demonstrated from the respondents but
still it would help in analysing the data reflecting the main theme of the research study along
with the hypothetical tests as well.
Data Analysis
The following section will analyse the data that is collected from the respondents in
accordance with the questionnaire survey. It includes a general analysis of the respondents and
some other essential variables in order to comprehensively analyze the data.
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Gender Distribution
For the repondents who were interviewed, it included a total of 107 respondents of which
74 were males while 33 were females.
Gender Distribution Percentage
Male 74 69%
Female 33 31%
Total 107
2
Age Distribution
There was a diverse range of age group for the respodents which ranged from 18 till 65. It
is quite clear that through the opinions and viewpoints of different age groups, it would be easier
to have diverse perspectives about the innovative distribution channel on the profitability and
growth of FMCGs. Hence, the ages are divided in to several age groups which are illustrated
below:
Age Frequency Percentage Mean Standard Deviation
18-25 2 2% 21.4 22.79912279
26-35 44 41%
36-45 48 45%
46-55 11 10%
56-65 2 2%
Total 107
From the above table, it was found that the critical age group that was involved in this
study ranged from 26-55. This was the potential age group for this research. These age groups
can provide relevant and critical information that would be quite significant for the research
being conducted. Hence, the analysis of data would be quite fair enough.
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Educational Qualification
Educational qualification is quite necessary for the researcher to be aware of for this
particular study. Since in accordance with the respective qualification, the researcher will be able
to understand the dependency of the relevant viewpoints on the actual question being surveyed.
However, one thing is for sure that the higher the qualification, the more accurate and suitable
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answers would be available for the research to proceed further quite smoothly. The data for
educational distribution is illustrated below:
Qualification Frequency (N) Percentage (%)
High school 14 13.5
Under graduate 30 28.8
Bachelor 22 21.1
Masters 36 34.6
Phd 2 1.9
High school Under graduate Bachelor Masters Phd0
5
10
15
20
25
30
35
40
14
30
22
36
2
Qualification
The most number of respondents had the qualification of undergraduate, Bachelors and
Masters. The highly qualified PHDs included only 2 respondents. Qualification can be positively
related to the responses for this particular research because the more knowledge a person has in
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accordance with his qualification, the more accurately he will be able to answer the questions
within the questionnaire keeping in mind his broad knowledge and deep insights.
Work Experience
The work experience will also be significant element for this particular research. This is
because the more experience within the company an individual would possess, the more easily
and relevantly the ability to answer would be there. Therefore, it is quite pivotal to learn about
the work experience so as to make sure the data is reliable and effective. The data for work
experience is as below:
Years Frequency (N) Percentage (%)
1-5 25 24.0
6-10 41 39.4
11-15 22 21.1
16-20 14 13.5
21-25 2 1.9
6
1-5 6-10 11-15 16-20 21-25
25
41
22
14
2
Work Experience
From the above data, the work experience of more than 15 years did not include that
much respondents as mentioned earlier that with a greater work experience, the responses from
the respondents will be fairly appropriate but it can also be said that the those have less than or
equal to 10 years of work experience could have the ability to observe critical patterns and trends
in the innovative distribution within their respective FMCG company. Hence, the work
experience of 6-10 years had the most number of respondents for this particular research.
Respondents Position
It is quite true that the department of the respondent is quite important for this research
survey. This is due to the fact that if the research survey is linked with the exact department and
designation of the respondent, the answer would be quite nearer to 100% or even 100% valid.
Hence, the position of the participants is quite necessary to be learnt. In this particular research,
there were several positions/departments included in the survey. Among them illustrated below,
the most effective ones would be related to marketing, physical distribution, CEO and corporate
function as well. The results in accordance with the respodents position are as below:
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Description Frequency (N) Percentage (%)
Corporate function 17 16.5
Sales 34 33.2
Marketing 12 11.5
Physical distribution 6 5.8
CEO/Owner 10 9.82
Daughter/Subsidiary company 6 5.8
Mother company 11 10.6
Planning department 1 0.821
Purchasing department 1 0.821
Accounting 1 0.821
Category and channel sales development 1 0.8218
Information and communications technology 1 0.821
Consultant 1 0.321
Production 2 1.9
0102030 17
34
126 10
6 111 1 1 1 1 1 2
Respondents Organizatonal Department
From the above table, it can be said that the respondents from the sales department were
included in a greater amount so as to learn about the effectiveness of innovative distribution.
This could be due to the fact that a product distribution influences the sales and hence, a greater
number of respondents were included in the research survey. This would then be emulated by the
correlation with the factors like the quality of product, positioning, and reputation of marketers
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along with the efforts of marketing, corporate function, CEO and finally a need for coordination
among such elements.
Company Characteristics
It should be accepted that the characteristics of any particular company would facilitate in
this research to learn the impact of innovative distribution on the performance within the market
itself. The characteristics will itself prove to be essential factors that could have a close link with
the innovative distribution. The innovative ability is perceived today as one noteworthy approach
to acquire competitive advantage for the marketing of the services and products specifically and
within the corporate world generally. A firm that is innovative would promptly lend the support
to novelty, new ideas, and the innovative procedures that may bring about new products,
technological process along with the services. One conventional method for acquiring
competitive advantage is to make new product yet can be effectively replicated. Minimal
products costs as a competitive advantage likewise experiences sustainability while the name of
the brand as a competitive advantage is conceivable just if there is a well reputed brand. The data
for the characteristics of the company is as below:
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Running head: [Shortened Title up to 50 Characters] 11
Variable Description Frequency(N) Percentage
(%)
No of employees in
company
≤ 50 23 22.34
50-250 12 11.5
250-5,000 35 34.5
5,000-10,000 8 7.63
10,000-50,000 17 16.54
>50,000 9 8.71
How old is company ≤10 years 20 19.81
10-25 years 44 43.22
25-50 years 7 6.57
50-100 years 12 11.5
>100 years 21 20.98
Company’s annual turnover 0.5-1 billion € 10 9.82
> 1billion € 30 29.76
≤ 5 billion € 20 19.81
5-10 billion € 8 7.63
10-20 billion € 7 6.57
12
20-100 billion € 19 18.76
100-500 billion € 10 9.82
Company’s yearly R and D
spending
There is no budget for R and D 31 30.23
≤ 0.5% 15 14.33
0.5-1% 16 15.76
1-2% 8 7.63
2-4% 9 8.71
4-6% 8 7.63
>6% 17 16.54
No of FMCG brands,
company is dealing with
≤ 5 35 34.44
5-15 18 17.83
15-50 20 19.81
>50 31 30.23
No of different FMCG
products
≤10 13 12.56
10-50 12 11.5
50-100 9 8.71
>100 70 69.31
Type of FMCG products Electric/electronic products 18 17.56
Food products 17 16.54
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Care products (toiletries) 2 1.9
Medicine/drug 1 0.821
Products for animals 1 0.821
Cigarettes 2 1.9
Beauty products 1 0.821
Drinks 1 0.821
Type of FMCG products
(multiple products)
Electric/electronic products 38 37.67
Food products 50 49.54
Care products (toiletries) 53 52.43
Household products 50 49.14
Medicine/drug 13 12.56
Products for animals 22 21.1
Automotive parts 1 0.821
Cosmetics 1 0.821
Accessories for phones 1 0.821
Personal care products 43 42.56
Newspapers and magazines 1 0.821
13
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In accordance with the characteristics of the company, it could be that after the data gets
analyzed, it can be known perfectly the basic charactertistics of the company that has the most
effective and innovative distribution strategy. These characteristics would definitely reflect
towards that company that has the reliable innovative distribution strategy through which every
business and company will come to know the ideal requirement for the company where
innovative distribution can be implemented either directly or indirectly.
Innovative Investments
This is one of the most significant aspect of the research study. This would let the
researcher know about the time plan for innovative investments. It is quite critical to
know that innovations can facilitate in the exploration of the opportunities that basically
exist or can even emerge in the near future (Vaile, 2010). Businesses not only fulfill the
organizational or customer needs, but also make an anticipation of trends in future and
hence, make a development of a service, product or idea which would further allow them
the reach the demand for future quite instantly ('Training delivers for distribution company',
2010). Due to innovation, it will definitely bolster the market competitiveness, trends shift
and technologies as well. The data for this particular aspect is as below:
Description Frequency (N) Percentage (%)
Rarely 12 11.5
Whenever there is need 16 15.44
Whenever there is a chance 8 7.63
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15
Once in 2 years 12 11.5
Only when forced from outside 3 2.53
1-2 times per year 21 20.81
3-5 times per year 2 1.9
Permanently 27 26.72
Never 2 1.9
More than 10 times per year 1 0.821
Once in 5 years 1 0.821
Rarely
Whene
ver th
ere is
need
Whene
ver th
ere is
a ch
ance
Once i
n 2 ye
ars
Only w
hen f
orced
from
outsi
de
1-2 tim
es pe
r year
3-5 tim
es pe
r year
Perman
ently
Never
More th
an 10
times
per y
ear
Once i
n 5 ye
ars0
5
10
15
20
25
30
Innovative Investments
Majority of the respondents answered in favor of the permanent innovative
investment. Numerous organizations are making an adoption of the measures to fortify
innovative ability. Such organizations are developing a framework for development and 15
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innovation which is found to be a critical component of corporate sustainability. Research
has shown that when competition is blended with a significant demand is a noteworthy
innovative driver. The competitive intensity is the determinant of productivity and
innovation. Innovation, other than services and products, additionally incorporates new
methods of management, new processes and new business frameworks, which have a
critical effect on efficiency and development. However, more than 15 respondents also
confirmed that company makes innovative investments at least 1-2 times annually
(Eklund & Waluszewski, 2015). Some companies make innovative investment whenever
there is a need to do so. Some of the other factors like forceful innovation were not
favored completely.
Market Position
The market position of the company would let the researcher know as to in what
market the FMCG operates in. This would let the research to understand which
companies implements innovation in which market and that where the market
performance has boosted considerably due to innovation. Therefore, this data is also
important and significant aspect of the study. It is illustrated below:
Description Agree N (%) Partially
Agree N (%)
Neutral N
(%)
Company is in FMCG industry 67 (66.5) 14 2
16
17
(13.5) (1.9)
Company is in FMCG retail 8
(7.63)
25 (24.39) 14
(13.43)
Company is in FMCG wholesale 24
(23.32)
23
(22.34)
12 (11.59)
Company is in FMCG distribution 13 (12.97) 47
(46.55)
14
(13.43)
Company is in FMCG manufacturer 2
(1.9)
58
(57.46)
16
(15.48)
Domestic is main market 12 (11.59) 53
(52.61)
11
(10.69)
Europe is main market 4
(3.45)
54
(53.35)
34
(33.17)
Whole world is market 32
(31.49)
20
(19.47)
5
(4.26)
Surrounding countries is main market 23
(22.34)
28
(27.91)
34
(33.17)
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18
Compa
ny is
in FM
CG indu
stry
Compa
ny is
in FM
CG retai
l
Compa
ny is
in FM
CG who
lesale
Compa
ny is
in FM
CG distr
ibutio
n
Compa
ny is
in FM
CG man
ufactu
rer
Domest
ic is
main m
arket
Europe
is m
ain m
arket
Whole
world i
s mark
et
Surrou
nding
coun
tries i
s main
mark
et0
10203040506070
Market Position of Company
Agree N (%) Partially Agree N (%) Neutral N (%)
Majority of the respondents were of the view that the company is in FMCG
industry. In the FMCG industry, the sector is mainly characterized by the need to
diminish time to market and make a discovery of the new developmental ideas for
generating new products, firms are always looking forward for innovation and ideas that
will give them a competitive position (Barge-Gil, 2013). Significant enterprises need brand
new technology and ideas to enhance the innovative processes. However, it can be said
that still small firms are critical innovative generators however are ordinarily constrained
by a resource.
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Innovation, Implementation and reflection to the employer’s Company
The data gathered for this particular scenario is illustrated below:
Description Agree N
(%)
Partially
Agree N
(%)
Neutral
N (%)
Partially
disagree
N (%)
Disagree
N (%)
Company develops innovations
itself
48 30 8 6 8
Company prefers improvements in
distributions than innovations
24 37 10 12 16
Company is always in search for
new and innovative distribution
33 33 10 15 9
Company focuses on innovation in
distribution from outside
22 43 17 7 11
Company is not using third party
solution in distribution
7 21 18 20 35
Company use external consultants
for innovation
17 31 17 14 21
Satisfactory innovation
implementation in the company
15 41 20 13 11
Company has a culture of
innovation
17 38 21 8 16
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20
Company has certain model for
innovation
32 29 16 9 14
There is a team within the company
which search for innovations that
can be used in the FMCG
Distribution
16 32 23 11 18
The company innovates by
implementing new technology
22 21 13 20 23
The company is searching for the
new possibilities in distribution
34 37 15 7 7
The company is testing different
innovative models (i.e. linear
model, user model, private-
collective model
41 38 12 5 5
The company innovates in physical
distribution
18 19 33 14 17
The company innovates in
marketing
18 37 18 13 14
The company innovates in
assortment
34 36 9 14 7
The company innovates in new
marketing channels
45 40 7 6 3
20
21
The company innovates in
distribution channels
34 37 9 9 10
The company innovating in sales
channels
30 38 9 12 10
The company awards creativity
and innovativity
38 38 7 6 10
The importance of the innovation has grown significantly. This means that
inventiveness is found to be a core factor for influencing the strategic planning. Before,
numerous associations have possessed the capacity to survive even with extremely
constrained measures of innovation. Their main focus is to make a provision of quality
products and upgrade them to such an extent that helps them to acquire a competitive
advantage within the market. Such methodology is still applicable to a few products that
have fewer opportunities for innovation and longer life cycles.
As of late on the other hand, a few patterns have been developed that drive the
process of innovation. Because of variables, for example, outsourcing and globalization,
it is explored that there are a lot of efforts made to enhance productivity and efficiency of
the companies or organizations. Organizations require more than great products to
survive; they oblige those processes that are innovative emulated by the management that
can drive down expenses and enhance efficiency (Barge-Gil, 2013).
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That is the main reason as to why majority of the respondents have agreed to the
fact that the company develops the innovation by itself. Their responses are illustrated