1

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.

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

Male
Female
Total

74
33
107

Percentage

69%
31%

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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
18-25
26-35
36-45
46-55
56-65
Total

Frequency
2
44
48
11
2
107

Percentage
2%
41%
45%
10%
2%

Mean
21.4

Standard Deviation
22.79912279

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.

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

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

1.9

Qualification
40
35

36

30

30

25
20

22

15
10

14

5
0

High school

Under graduate

Bachelor

M asters

2
Phd

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
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.

6
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

1.9

Work Experience
41

25
22
14

1-5

6-10

11-15

16-20

2
21-25

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:
7

Description

Frequency (N)

Percentage (%)

Corporate function

17

16.5

Sales

34

33.2

Marketing

12

11.5

Physical distribution

5.8

CEO/Owner

10

9.82

Daughter/Subsidiary company

5.8

Mother company

11

10.6

Planning department

0.821

Purchasing department

0.821

Accounting

0.821

Category and channel sales development

0.821

Information and communications technology

0.821

Consultant

0.321

Production

1.9

Re sponde nts Organiz atonal De partme nt

34

35
30
25
20

17

15
10
5

12
6

10

11
6

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
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
9

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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:

Variable

Description

Frequency(N)

Percentage
(%)

No of employees in
company

How old is company

Companys annual

50

23

22.34

50-250

12

11.5

250-5,000

35

34.5

5,000-10,000

7.63

10,000-50,000

17

16.54

>50,000

8.71

10 years

20

19.81

10-25 years

44

43.22

25-50 years

6.57

50-100 years

12

11.5

>100 years

21

20.98

0.5-1 billion

10

9.82

10

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turnover

> 1billion

30

29.76

5 billion

20

19.81

5-10 billion

7.63

10-20 billion

6.57

20-100 billion

19

18.76

100-500 billion

10

9.82

Companys yearly R and D

There is no budget for R and D

31

30.23

spending

0.5%

15

14.33

0.5-1%

16

15.76

1-2%

7.63

2-4%

8.71

4-6%

7.63

>6%

17

16.54

No of FMCG brands,

35

34.44

company is dealing with

5-15

18

17.83

15-50

20

19.81

>50

31

30.23

No of different FMCG

10

13

12.56

products

10-50

12

11.5

50-100

8.71

>100

70

69.31

Electric/electronic products

18

17.56

Food products

17

16.54

Care products (toiletries)

1.9

Medicine/drug

0.821

Products for animals

0.821

Cigarettes

1.9

Beauty products

0.821

Drinks

0.821

Type of FMCG products

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Type of FMCG products

Electric/electronic products

38

37.67

(multiple products)

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

0.821

Cosmetics

0.821

Accessories for phones

0.821

Personal care products

43

42.56

Newspapers and magazines

0.821

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
12

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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

7.63

Once in 2 years

12

11.5

Only when forced from outside

2.53

1-2 times per year

21

20.81

3-5 times per year

1.9

Permanently

27

26.72

Never

1.9

More than 10 times per year

0.821

Once in 5 years

0.821

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Innovative Investments
30
25
20
15
10
5
0

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 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.

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15

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

Neutral N

Agree N (%)

(%)

Company is in FMCG industry

67 (66.5)

14
(13.5)

2
(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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Market Position of Company

70
60
50
40
30
20
10
0

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 employers Company
The data gathered for this particular scenario is illustrated below:

Description

Agree N

Partially

Neutral

Partially

Disagree

(%)

Agree N

N (%)

disagree

N (%)

(%)
Company develops innovations

N (%)

48

30

24

37

10

12

16

33

33

10

15

22

43

17

11

21

18

20

35

17

31

17

14

21

15

41

20

13

11

17

38

21

16

32

29

16

14

16

32

23

11

18

itself
Company prefers improvements in
distributions than innovations
Company is always in search for
new and innovative distribution
Company focuses on innovation in
distribution from outside
Company is not using third party
solution in distribution
Company use external consultants
for innovation
Satisfactory innovation
implementation in the company
Company has a culture of
innovation
Company has certain model for
innovation
There is a team within the company
which search for innovations that
can be used in the FMCG
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Distribution

The company innovates by

22

21

13

20

23

34

37

15

41

38

12

18

19

33

14

17

18

37

18

13

14

34

36

14

45

40

34

37

10

30

38

12

10

38

38

10

implementing new technology

The company is searching for the
new possibilities in distribution
The company is testing different
innovative models (i.e. linear
model, user model, privatecollective model
The company innovates in physical
distribution
The company innovates in
marketing
The company innovates in
assortment
The company innovates in new
marketing channels
The company innovates in
distribution channels
The company innovating in sales
channels
The company awards creativity
and innovativity

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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).
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 below

Developing Innovation Itself

48%

30%

8%
Agree

Partially Agree

Neutral

19

6%
Partially Disagree

8%
Disagree

20

On the other hand, distribution is found to be as one of the essential marketing mixes.The
distribution has a very important role in marketing and in the entire economy that can detailed
out below:
The concept of marketing stresses on the profit earning through customer satisfaction.
Other than the research within the market for the sales and development of merchandise as per
the wants and needs of buyers, the distribution channel participants likewise assist the producers
in accordance with the new goods production.
The function of distribution serves to enhance standard of life for the customers within
the society. An appropriate distribution of essential services and products to the buyers
effectively at the suitable and appropriate time fulfill them as well as leads to the bringing of
change in the standard of their life. Distribution results in the enhancement in the standard of
purchasers through increase in income, employment generation and exchange of proprietorship.
Consequently, it acquires constructive outcome within the general society. The elements of
distribution, for example, warehousing, transportation, inventory management and so forth build
the significance of products by developing time utility, place utility along with quality utility as
well. The distribution mix assumes an essential part to enhance the value of products through the
delivery of merchandise in an appropriate quantity, at perfect place and ideal time. Distribution
serves as connection between consumers and producers. Producers can make an informational
flow and messages to shoppers about their price, product, its promotion and so forth through the
members of the channel. So also, they get data about competitors, clients and changes within the
environment from the members of the channel. Due to this, 24% of the respondents have agreed

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with the statement that companies prefer improvements in the distribution rather than innovation.
In the same manner, 37% have partially agreed with this. The data for this illustrated below:

Improvements in Distribution rather than Innovation

37%

24%
16%
10%

Agree

Partially Agree

Neutral

12%

Partially Disagree

Disagree

16% of the respondents prefer improvements in innovation rather than distribution while
12% partially disagree with this. It is quite critical to point out those who agree and disagree
because their viewpoints are quite significant for the researcher to understand their opinions.
Both of the groups would have their own experience in the FMCG industry and they have
respondents as per their experience, knowledge and insight. Therefore, both answers can be
considered significant keeping in mind that innovation and distirbution both are quite critical for
the success of the company to acquire a strategic advantage and become dominant enough to be
the leader of the industry over the competitors.
It is definitely true that innovative distribution strategy is one of the significant features
associated with the purchase as to where and when a person can purchase the product. In accordance with
the innovative distribution strategy, one can acquire the capability of enhancing sales and capturing it
from the rivals while being more available or convenient than different choices. For instance, would one
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be able to review the brand of gas purchased the last time one halted at the roadway rest stop? Most likely
this is not the case at all, on the grounds that it didn't make a difference as to which brand was being
offered at that time and the person purchased it in light of the fact that one figures out to obtain one of the
slots at that stop which is utilizing a distribution strategy. Innovative distribution is found to be range of
activities that are associated with reliable and efficient movement of the finished product from productive
operation to the buyer. Innovative distribution is found to be as one of the environments where the
management of sales operates basically. It is also noticed that sales service, innovative distribution,
product or service brand management were found to be the interface of sales associated with marketing
and these accounted to a significant extent for the organizational market share that operates within the
industries. The data analysis for this variable is illustrated below:

Innovative Distribution

43

22

17
7

A gr e e

P a r t i a l l y A gr e e

N e ut r a l

11

P a r t i a l l y di sa gr e e D i sa gr e e

The figure illustrates the importance of innovative distribution as 33% of the respondents agreed
with the fact that the company is always in search of innovative distribution while 33% partially agreed
with this.
It is further explored that almost innovations happen outside that boundaries that are self imposed
and that is the reason, organizations need to stretch out to every one of their limits. Organizations
22

23
comprehend that today innovation is not only within the walls of one specific organization. The world
"assimilates" more innovation than individuals can transform into more noteworthy value however they
have to put in endeavors to acquire this and check whether and where its quality can mismatch. This will
be accomplished probably within an innovative distribution which would demand that everybody add to
innovative ideas and give them on a reliable premise the feasible context and content fit that is needed
particularly. In this way, organizations need to keep on continuing to push the innovation made regularly
locally, provides support to the organization in a form of back up so it can conceivably transform such
insights towards innovation that will discover a place in the reality that provided enhancement on the
existing which was found to be something that they contributed as well, that can be exceedingly
motivating. In order to make it happen, organizations need to perceive the reliance and inter dependency
that an expanded, distributed group of engaged people can put in endeavors for bolstering innovation to
explore, share and then work on the ideas that can be turned in to an innovative solution. For this
particular reason, 22% of the respondents agree with the fact that the companies focuses on innovation in
distribution from outside due to the fact that the diversity of ideas and approaches can assist in getting
numerous appropriate solutions for any issue or concept. More than this, 43% of the respondents partially
agreed with this. The further data is illustrated below:

Innovation in Distribution from outside(%)

45
40
35
30
25
20
15
10
5
0

Agree

Partially Agree

Neutral

Partially disagree

23

Disagree

24
The above data illustrated that only few respondents partially disagreed and completely disagreed
with the statement. While, some remained neutral as well. Therefore, the significance of outside
innovation in distribution is evident enough.
There are many organizations that develop internal consultants group to drive internal alignment
and foster innovation. Some of the dominant organizations, for example, Dell, American Express, and
Wyeth have a team of internal consultants for the instant launch of initiatives and stay in front of their
competitors. Numerous smaller firms do without internal consulting groups basically as they are not in a
need for them or there are some budget related issues as well. More than this, the internal consultants are
regularly far less costly than external consultants. Originating from an outside perspective, it permits the
consultants to have a significant objective, a deep view of the organization and the business all in all.
Rather than turning out to be excessively fascinated inside of a particular organization, the professional
consultants ought to be on top of the business all in all. They have an expansive point of view, and that
have numerous experiences working with different organizations in the same industry and that confronted
comparable difficulties. In this way, they can apply encounter from the past into their present
engagements and projects. Another point of preference of not being as coordinated into the environment
of work project is the capacity to be viewed not as a peer but as a consultant. Internal consultants can be
seen simply as the one to roll out improvements within the organizations. Rather, external consultants are
employed for the sole motivation behind their aptitude and capacity to make change for a particular
business issue. This conveys more clarity and consideration to the role, and helps focus endeavors on the
project, and regularly, and along with this, also facilitates the ensuring of the buy in of the client. The data
for the company opting for external consultants for innovation is illustrated below:

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25

External Consultants for Innovation (%)

35
30
25
20

31

15
10

17

17

21
14

5
0

Agree

Partially Agree

Neutral

Partially disagree

Disagree

There are mixed responses for this particular statement. 17% of the respondents agree
but 21% of them disagree with this statement. More than this, 31% of the respondents have
partially agreed with this. This could be mainly due to the fact that they give preference to
internal consultants as well. The principle advantage that the leaders of the industry refer to when
the preference for an internal consultant is concerned, it entails that that an internal consultant
has a great organizational understanding, its strategies, culture and other political aspects of the
organization. On the other hand, external consultants have a limited knowledge about the
corporate society and that an internal consultant can explore quickly about the organization.
More than this, an internal recommendation originates from a foundation of over seeing the
issues that happen within the organization all the time.
It could be that the internal consultants likewise have the chance to work from the
recommendations and suggestions through the project implementation. As compared to this, the
external consultants ordinarily remain focused on the project until they illustrate their
decisions.The internal consultants can support and observe the implementation of the proposals,
25

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assist in exploring the change, and make changes wherever needed. This considers more
conceivable outcomes for the organizational success over the long term. An effective internal
consultant is constantly ready to proactively develop a plan before the issue can really happen,
rather than finding solutions after the issue has really occurred or happened.
Innovation is one part of the culture within an organization that will dependably be in a
condition of consistent change for any particular industry. Those organizations that neglect to
stay aware of the most recent "new" things are regularly at a greater chance of being quite less
intensive in accordance with the competitive rivalry. More than this, organizations today need to
find out about the most recent and most noteworthy new best practices so they can adjust the
strategies in an appropriate manner.
In any case, there are some of the organizations which don't understand that a best
practice turns into the standard norm quite rapidly. Along these lines, for an organization, the real
competitive differentiator is creativity and innovation the capacity for the organization to
make its own new best practices. However, each and every organization has a general governing
society, it likewise has a few cultural subgroups. The quantity of cultural subgroups and how
they're exhibited is reliant on how the company or corporation gets structured. Cultural
subgroups can be departmental, functional and geographic. Within such subgroups, the
organizations can develop and also be capable enough to manage creativity and innovation.
Almost 17% of the respondents agree with the fact that the company has a culture of innovation
while 38% partially agree with this.The data for this particular scenario is illustrated below:

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Innovative Culture (%)

40
35
30
25
20
15
10
5
0

Agree

Partially agree

Neutral

Partially disagree

Disagree

Over and over again, organizations get their business characterized in accordance with the
products they manufacture and sell. This reasoning constrains their capacity to maintain a strategic
distance from commoditization, intensely face the competitive threat and even effectively enter new
markets. In accordance with the accomplishing of transformational development regularly means
changing how one attracts the clients. The innovative business model speaks the truth generally
reexamining the business around a reasonable but not generally associated with the customer always, then
realigning the processes, resources and profit formula in accordance with the new value proposition. It is
difficult and can take the makers of decision away from the safe and secure zones. Be that as it may, there
could be dramatic outcomes as well. Innovative business model would allow the organizations to tap in to
an opportunity to find out new clients with an enhanced new innovative business model that would
further modify the competitive position of the company. It would assist the company to generate new and
valuable ideas to interact with the customer emulated by the designing of transformed or new models
which would fulfill the customer jobs that would need to be completed more efficiently, profitably and
effectively. It would further assist the company to successfully make an entrance to the evolving markets
which would assist them to reconceive the business models that would further recognize the customer
needs within the market quite efficiently and profitably. It would also help in the creation of new rules,
systems, and metrics which would allow the company to make an implementation of the new business
27

28
successfully. From the above data, it can be said that 32% of the respondents agree with this due to the
importance of innovation and innovative model within an organization while 29% partially agreed with
this.
The data for certain innovation model is illustrated below:

Certain Model for Innovation

35

32
29

30
25
16

20

14

15

10
5
0

Agree

Partially Agree

Neutral

Partially Disagree

Disagree

There are several definitions of innovation and it is implementing new things or enhancing
existing things that include more prominent value which is a great thing to initialize with for everybody in
the organization to effectively search out their potential commitments. On the off chance that people feel
that their commitment is valued this turns into an intense inspiration to turn up for work, as well as to take
part in new profitable work. It turns into a more dynamic environment, not static to work inside and
simply endeavor to relate to.

28

29
Hypothesis Testing
Following are the hypotheses that would be tested accordingly.
Hypothesis I: Innovation in distribution channels is likely to bring positive effects on company growth.

For this hypothesis, the dependent variables are as below:

Dependent Variable I: Your Company had significant revenue from innovative products in the last 5 years.
Dependent Variable II: Your Company expands on new markets.
Dependent Variable III: Your Company improved its distribution.
Dependent Variable IV: Your Company attracts new talents

The independent variables are as below:

Independent Variable I: Your Company is innovating in Physical distribution
Independent Variable II: Your Company is innovating in distribution channels.

In accordance with the above hypothesis, the following results are obtained:

Innovation,

Statistics
Results of

Results of

Results of

implementation

innovations Your

innovations Your

innovations Your

and reflection to

company expand

company attract

company had

your company

on new markets

new talents.

significant cost

[Your company

savings from

innovating in

innovations in last

distribution

5 y.

channels]
N

Valid

57

57

29

57

57

30
Missing
Mean
Median
Mode
Std. Deviation
Sum

0
3.7544
4.0000
4.00
1.19942
214.00

0
4.3684
5.0000
5.00
1.04594
249.00

0
3.8947
4.0000
5.00
1.24906
222.00

0
3.9298
4.0000
5.00
1.20800
224.00

Innovation, implementation and reflection to your company [Your company is innovating in

distribution channels]
Frequency
Percent

Valid Percent

Cumulative
Percent

Valid

Disagree
Partially disagree
Neutral
Partially agree
Agree

5
5
4
28
15

8.8
8.8
7.0
49.1
26.3

8.8
8.8
7.0
49.1
26.3

Total

57

100.0

100.0

8.8
17.5
24.6
73.7
100.0

The importance of innovation within the distirbution channels is already mentioned earlier. It is a
true fact that innovation is found to be a procedure for the translation of an intervention or an
idea into a service or good which would create value or for which the customers would definitely
pay. The distribution channel is basically found to be a lower end of the value and that
innovation in this lower end can be beneficial for the company. Therefore, there could be an
effective transportation coordination. That is the reason that almost 28 respondents have partially
agreed with this while 15 have strongly agreed with this. We have filtered out the other
30

31

respondents in order to prove the hypothesis more effectively. The total number of respondents
are assumed to be 57.

Results of innovations Your company expand on new markets

Frequency
Percent
Valid Percent

Cumulative
Percent

Valid

Disagree
Partially disagree
Neutral
Partially agree
Agree

2
2
6
10
37

3.5
3.5
10.5
17.5
64.9

3.5
3.5
10.5
17.5
64.9

Total

57

100.0

100.0

3.5
7.0
17.5
35.1
100.0

From the above table, with the result of innovation in the distribution channel, the subsequent
result due to this is that the company can have the possibility to expand on new markets. And,
that is the reason as to why many of the respondents have agreed with this statement.

Results of innovations Your company attract new talents.

Frequency
Percent
Valid Percent

Cumulative
Percent

Valid

Disagree
Partially disagree

5
4

8.8
7.0

31

8.8
7.0

8.8
15.8

32
Neutral
Partially agree
Agree

5
21
22

8.8
36.8
38.6

8.8
36.8
38.6

Total

57

100.0

100.0

24.6
61.4
100.0

In accordance with the innovation in distribution channels and physical distribution, the
company can attract new talents due to the fact that with the increase in innovation, it gives rise
to digitalization. More multi channel strategies will be established due to which the company can
attract new talents. That is the reason as to why 22 respondents have strongly agreed while 21 of
them have partially agreed.

Results of innovations Your company had significant cost savings from innovations in last 5 y.
Frequency
Percent
Valid Percent
Cumulative
Percent

Valid

Disagree
Partially disagree
Neutral
Partially agree
Agree

4
4
7
19
23

7.0
7.0
12.3
33.3
40.4

7.0
7.0
12.3
33.3
40.4

Total

57

100.0

100.0

7.0
14.0
26.3
59.6
100.0

Innovation in distribution channels can definitely result in cost savings due to the fact that it would
integrate the operations system and certain processes related to distribution to enhance the performance of
the distribution network.
This is further illustrated below:

32

33

33

34

34

35

35

36

In order to prove the fact that innovation in distribution channels can improve the companys
revenues, the following test is conducted:

36

37
TEST BETWEEN SEVERAL DIFFERENT VARIABLE

Tests of Between-Subjects Effects

Dependent Variable: Results of innovations Your company had significant revenue from innovative
products in last 5 y.
Source

Type III Sum of

df

Mean Square

Sig.

Squares
12.845a
492.154

4
1

3.211
492.154

3.434
526.275

.015
.000

12.845

3.211

3.434

.015

Error

48.629

52

.935

Total

1072.000

57

61.474

56

Corrected Model
Intercept
Innovation In Distribution
Channels

Corrected Total

a. R Squared = .209 (Adjusted R Squared = .148)

In the above table, the dependent variable is the significant increase in revenue and the
independent variable is found to be the innovation factor in distribution channels. From the
above table, the significance level p is less than 0.05 which indicates that there is a statistical
significant relationship between the innovations in distribution channels and companys revenue
and that is why, this can be an evidence that the hypothesis 1 is acceptable. This can be
illustrated in a better manner through estimated marginal means graph which is as below:

37

38

In the above graph, the line for two options partially agree and agree slopes upwards.
This would mean that with the result of innovation, the company enhances its revenue and
therefore, the hypothesis 1 can be acceptable.
If more variables are to be discussed in order to proceed with the hypothesis testing of the same
scenario, then the following results are obtained:

38

39
Tests of Between-Subjects Effects
Dependent Variable: Results of innovations Your company expand on new markets
Source
Type III Sum of
df
Mean Square
F

Sig.

Squares
7.530a
599.237

4
1

1.882
599.237

1.822
579.907

.139
.000

7.530

1.882

1.822

.139

Error

53.733

52

1.033

Total

1149.000

57

61.263

56

Corrected Model
Intercept
Innovation in
distribution channels

Corrected Total

a. R Squared = .123 (Adjusted R Squared = .055)

In the above table, the p value is somehow higher than significance level i.e. 0.05.
But in accordance with the answers of the questions, the frequency to agree with this statement is 37
respondents which turns in favor of the hypothesis. Therefore, the innovation in distribution channels
results in the company expanding to new markets. This can be further illustrated below through estimated
marginal means graph.

39

40
Another dependent variable i.e. the company attracts new talents due to innovation in distribution
channels can also prove to be quite strong due to the fact that more and more talent is needed to serve the
business and its distribution channels in accordance with multiple distribution strategies more effectively.

Tests of Between-Subjects Effects

Dependent Variable: Results of innovations Your company attract new talents.
Source
Type III Sum of
df
Mean Square

Sig.

Squares
20.390a
445.454

4
1

5.097
445.454

3.958
345.836

.007
.000

20.390

5.097

3.958

.007

Error

66.979

52

1.288

Total

952.000

57

87.368

56

Corrected Model
Intercept
Innovating in Distribution
Channels

Corrected Total

a. R Squared = .233 (Adjusted R Squared = .174)

The significance level p is less than 0.05 which indicates that the innovation in distribution channels and
new talents have a statistically significant relationship and that have already been discussed earlier. This
can be made more comprehensive through estimated marginal means graph which is as below:

40

41

The line slopes upward when it comes to the last option i.e. strongly agree which indicates that the
company attracts new talents since new markets are served and businesses expand themselves which
would result in new recruitments so that business processes can be served effectively and efficiently.
Therefore, the hypothesis I is acceptable based on the above evidence.
In order to prove the hypothesis more effectively, some other tests are also conducted to test the validity
for accepting the hypothesis. Following tests and outsputs are generated as illustrated below:

Paired Samples Test

Paired Differences

df

Sig. (2tailed)

Mean

Std.

Std. Error

95% Confidence Interval of

Deviation

Mean

the Difference
Lower

41

Upper

42
SignificantRevenue Pair 1

InnovatinginPhysicalDist

.61682

1.36427

.13189

.35534

.87830

4.677

106

.000

.68224

1.42483

.13774

.40915

.95533

4.953

106

.000

.80374

1.20094

.11610

.57356

1.03392

6.923

106

.000

.28302

1.35755

.13186

.02157

.54447

2.146

105

.034

.28037

1.28705

.12442

.03369

.52706

2.253

106

.026

ribution
NewMarket Pair 2

InnovatinginPhysicalDist
ribution
ImprovedDistribution -

Pair 3

InnovatinginPhysicalDist
ribution
SignificantRevenue -

Pair 4

Innovatingindistributionc
hannels
NewTalent -

Pair 5

InnovatinginPhysicalDist
ribution

In accordance with the above table, it can be said that with the innovating in physical distribution, it has a
significant influence on the significant revenue of the company, and this is proved through the Sig. (2tailed) value since p is less than 0.05 which indicates that there is a statistical significant relationship
between the two and hence, we can reject the null hypothesis that innovation in distribution channels
cannot bring positive effect on the companys growth. In the same manner, innovating in physical
distributions also has a significant influence on the company obtaining new markets and resulting in the
improved distribution. The same applies for innovating in distribution channels as well.
The second hypothesis is as below:
H2: Innovation plays a significant role in the large international retail chains.
For this hypothesis, the dependent variables are as below:
Dependent Variable I: Local Retail chains are not affected.
42

43
The independent variables are as below:
Independent Variable I: Your Company is innovating in distribution channels.
Following results are obtained in order test the validity of the hypothesis.
Descriptive Statistics
Dependent Variable: How innovation and new trends from international retail
chains affect the local/regional retail chains? [Locals retail chains are not
affected]
Innovation, implementation

Mean

Std. Deviation

and reflection to your company

[Your company innovating in
distribution channels]
Disagree
Partially disagree
Neutral
Partially agree
Agree
Total

1.7500
1.8462
1.7000
2.5000
2.1563
2.1589

1.13818
1.06819
1.05935
1.51911
1.46154
1.38829

12
13
10
40
32
107

In the above table, the mean average was quite higher for the option partially agree and strongly agree as
well when contrasted with the other options that were against this statement.

Tests of Between-Subjects Effects

Dependent Variable: How innovation and new trends from international retail chains affect the local/regional retail chains?
[Locals retail chains are not affected]
Source
Type III Sum
df

Mean Square

Sig.

of Squares

Partial Eta

Noncent.

Observed

Squared

Parameter

Powerb

Corrected
10.038a

2.510

1.318

.268

.049

5.271

.399

312.949

312.949

164.319

.000

.617

164.319

1.000

10.038

2.510

1.318

.268

.049

5.271

.399

Error

194.261

102

1.905

Total

703.000

107

Model
Intercept
Innovatingdistributi
on channels

43

44
Corrected Total

204.299

106

a. R Squared = .049 (Adjusted R Squared = .012)

b. Computed using alpha = .05

The above table proves the fact that local retail chains are definitely influenced by innovation in the
distribution channels since the p value is greater than 0.05 i.e. 0.268 which means that there is no
statistical significant relationship between the two and due to this, we can reject the null hypothesis that
innovation in distribution channels does not play a significant role in the large international retail chains.
Henceforth, the hypothesis is acceptable based on the above evidence. This can further be proved by an
estimated marginal means graph which is illustrated below:

44

45
The line for the option agree slopes downward because the respondents are not in favor of this statement
due to which there is a downward slope for this option. This would mean that local retail chains that are
innovative have an increased efficiency, speedier processes, boosted productivity and reduction in the
investment. Therefore, that is the main reason as to why the line for option agree has sloped upward.
In order to effectively prove the relevance of this hypothesis, one other test can be conducted which has
the following results as below:

Paired Samples Test

Paired Differences
Mean

Std. Deviation

Std. Error Mean

df

Sig. (2-tailed)

95% Confidence Interval of the

Difference
Lower

Upper

Innovatingindistributionchann
Pair 1

els -

1.50943

1.73614

.16863

1.17507

1.84379

8.951

105

localretailchainsnotaffected

In the above table, the p value is less than 0.05 which indicates that we can easily reject the null
hypothesis that innovation in the distribution channels cannot influence the large international retail
chains. This would mean that innovation in the retail chains would foster customer loyalty and attain
growth and sales volume. Therefore, the retail chains have a significant influence through innovation.
The 3rd hypothesis is as below:
Hypothesis III: Contemporary trends in the FMCG industry require consolidation of local distributors /
wholesalers in order to effectively use innovations successfully applied on major markets
For this hypothesis, the dependent and independent variable are as below:
Dependent Variable: Local Retail Chains are forced to collaborate/consolidate.
Independent variable: Your Company is innovating in distribution channels.
45

.000

46
For proving the validity of this hypothesis, the following results are obtained:
Tests of Between-Subjects Effects
Dependent Variable: How innovation and new trends from international retail chains affect the
local/regional retail chains? [Local retail chains are forced to collaborate/ consolidate]
Source
Type III Sum of
df
Mean Square
F

Sig.

Squares
8.393a
924.370

4
1

2.098
924.370

1.670
735.641

.163
.000

8.393

2.098

1.670

.163

Error

128.168

102

1.257

Total

1416.000

107

136.561

106

Corrected Model
Intercept
Innovatingin
distribution channels

Corrected Total

a. R Squared = .061 (Adjusted R Squared = .025)

In the above table, it can be said that the p value is greater than 0.05 i.e. 0.163 which means we do not
reject the null hypothesis i.e. the contemporary trends in the FMCG industry does not require
consolidation of local distributors in order to use innovations effectively and successfully applied on the
major markets. This shows that the in order to sustain the competitiveness and viability, local retail chains
see their own entrepreneurial opportunities and companies experiment with new ways of doing business.
Therefore, it is their choice to collabore or consolidate and they are not forced as they can perform
innovative distribution activities by themselves as well.
This is further proved through estimated marginal means graph as illustrated below:

46

47

The above graph illustrates the fact that many respondents have agreed to the statement that the local
retail chains are forced to cosolidate and coollaborate to use innovation as a single retail chain. But the
fact is that it is a marginal mean which is also combined with the fact that the company innovates in the
distribution channel. However, with the above mentioned explanation, it can be said that company prefer
to practice innovation within their distribution channel and hence, the local retail chains are not forced to
consolidate but if they consolidate then too many practices can be collaborated which can act as a
betterment for the distribution channels as the markets can be served in one of the best manners.
The 4th hypothesis is as below:

47

48
Hypothesis IV: Innovation and investment in distribution channels in the FMCG industry is one of the
main reasons behind the rapid growth of this industry
For this the dependent variable is as below:
Dependent Variable: Your Company expands on new markets
Dependent Variable: Your Company improved its distribution
The independen variables are as below:
Independent Variable I: Your company always search for new and innvoative distribution
Independent Variable II: In your Company exists team which search for innovations that can be utilized in
the FMCG distribution networks?
Independent Variable III: Your Company is innovating in physical distribution
Independent Variable IV: Your Company is innovating in distribution channels
For this particular hypothesis, the following results are gathered.

48

49
Tests of Between-Subjects Effects
Dependent Variable: Results of innovations Your company expand on new markets
Source
Type III Sum of
df
Mean Square
F

Sig.

Squares
21.959a
1129.962

4
1

5.490
1129.962

3.255
669.933

.015
.000

21.959

5.490

3.255

.015

Error

172.041

102

1.687

Total

1906.000

107

194.000

106

Corrected Model
Intercept
Innovatingin
distribution channels

Corrected Total

a. R Squared = .113 (Adjusted R Squared = .078)

In the above table, the sig tailed p value is less than 0.05 i.e. 0.015. This indicates that we can reject the
null hypothesis and accept the alternate hypothesis that Innovation and investment in distribution
channels in the FMCG industry is one of the main reasons behind the rapid growth of this industry. This is
quite true since the importance of innovation and the focus of this aspect within the distribution channels
is evolving in FMCG industry already. This has already been discussed earlier. This can further be made
more comprehsive through estimated marginal means graph. This is illustrated below:

49

50

From the above graph, it can be said that the line for the options partially agree and agree slopes upward
which means that with the innovation in the distribution in channels, the company expands on new
markets. This is due to the fact that innovation in severa functions of the distribution channels like
transport coordination and assortment will enhance the effectiveness of distribution channels and hence,
the company can have the capacity to get attracted to new markets and implement business expansion.
The innovation in distribution channels is quite imperative for improving the performance of the
distribution channel and its effectiveness which would immediately enhance the firm performance. That is
the reason, many respondents have affirmed to this statement and the line for the option agree slopes
upward than others. In order to test some other dependent variables for this hypothesis, one other test is
conducted where the results are demonstrated below:

50

51
Tests of Between-Subjects Effects
Dependent Variable: Results of innovations Your company improved it's distribution
Source
Type III Sum of
df
Mean Square
F

Sig.

Squares
48.435a
1139.000

4
1

12.109
1139.000

13.282
1249.415

.000
.000

48.435

12.109

13.282

.000

Error

92.986

102

.912

Total

1959.000

107

141.421

106

Corrected Model
Intercept
Innovating distribution
channels

Corrected Total

a. R Squared = .342 (Adjusted R Squared = .317)

It is a true fact that with the innovation in distribution channels, the company will subsequently improve
its distribution as it will become a key driver for better competitiveness of the firms. This is because
innovation is connected with the performance of firms and this can be enhanced effectively when the
firms will improve its distribution. This is also illustrated from the above table since the P value is less
than 0.05 i.e. 0.000. Therefore, through this, the hypothesis can still be accepted. This is further illustrated
through estimated marginal means which is demonstrated below:

51

52

The estimated marginal means for the options partially agree and agree are quite higher than the other
options. This clearly defines the importance of innovation as with the innovation in distribution channels,
the companies have improves their distribution which has resulted in a competitive advantage and
effective distribution of the finished products.
The 5th Hypothesis for this research is as below:
Hypothesis V: Today innovation has become the vital component of any international FMCG

producer
For this the dependent and Indpendent variables are as below:
Dependent Variable I: Your Company develop and implement innovations from inside
52

53

Independent Variable I: Your Company is a FMCG manufacturer.

In order to test this hypothesis, the following results are obtained.
Tests of Between-Subjects Effects
Dependent Variable: Innovation, implementation and reflection to your company [Your company
develop and implement innovations from inside (by its self)]
Source
Type III Sum of
df
Mean Square

Corrected Model
Intercept
FMCG
manufacturer
Error
Total
Corrected Total

Sig.

Squares
24.336a
188.350

4
1

6.084
188.350

4.414
136.660

.002
.000

24.336

T6.084

4.414

.002

1.378

140.580

102

1901.000

107

164.916

106

a. R Squared = .148 (Adjusted R Squared = .114)

It is a true fact that within the FMCG sector, they are always on the verge for the great
innovation. This is due to the fact that technology continues to advance and the modern life
accelerates. Therefore, people expect the products to be advanced like this. The smarrt working
and innovative thinking has resulted in the success for FMCGs. This is also proved from the
above table when the p value is less than 0.05 and hence, it would mean that if the company is a
FMCG manufacturer, then the company would develop and implement innovations from inside
by itself. Therefore, there is a statistical significant relationship between the two. This is further
illustrated through the estimated marginal means graph as illustrated below:

53

54

However, the line for the option agree slopes downward but is still higher than the other options
on an average which means that if the company is a FMCG manufacturer, then the company can
make an implementation of the innovation from itself. This has already been mentioned earlier
for the FMCG sector.
The 6th hypothesis for this research is as below:
Hypothesis VI: Growing innovation and international FMCG producers pose enhanced threat to
local distributor companies and (small) local FMCG producers in south-east Europe.
The dependent and indepent variables for this hypothesis are as below:
Dependent Variable I: Local FMCG manufacturers posed as a threat for the independent
existence
54

55

Independent Variable I: Your Company is an FMCG manufacturer.

Independent Variable II: Your Company develop and implement innovations from inside (by its
self)
For this hypothesis testing, the following outputs are obtained.
Tests of Between-Subjects Effects
Dependent Variable: How Innovation and new trends from large multinational manufacturers affect the
local/regional FMCG producers? [Local FMCG manufacturers posed as a threat for it's independent
existence]
Source

Type III Sum of

df

Mean Square

Sig.

Squares
Corrected Model

23.267a

15

1.551

1.297

.220

Intercept

174.422

174.422

145.875

.000

Innovation by itself (1)

9.771

2.443

2.043

.095

FMCG (2)

7.978

1.994

1.668

.164

1* 2

6.173

.882

.738

.641

Error

108.808

91

1.196

Total

1384.000

107

132.075

106

Corrected Total
a.

R Squared = .176 (Adjusted R Squared = .040)

From the above table, it can be said that it doesnt matter if the company is an FMCG
manufaturer or the company develops and implements innovation from itself, the local FMCG
manufacturers would never pose as a threat for its independent existence. As the p value for all of
them are greater than 0.05 i.e. 0.095 and 0.164 respectively. However, when both of the factors
are combined, then still the p value is lesser than 0.05 which proves this fact. Therefore, the
investment in innovation is of a practical value for the companies since innovation has a several
numerous benefits like the companies that invest in innovation, go towards the product
development and that their capability allows them to effeciently set them apart from the other
55

56

companies which permits them to develop new products in an effective manner. This is
illustrated below through estimated marginal means graph.

The estimated marginal means somehow contradicts with the above explanations but on an average the
line for the option partially agree and agree slopes upward and that is due to the combined response in
accordance with the statement that the company develops and implements innovations from inside by
itself. For the other dependent variable, the graph is illustrated below:

56

57

Just because the company is an FMCG manufacturer, it does not mean that it would pose as a threat for its
independent existence. This is because the companies that make innovation their significant purpose can
definitely position themselves to make profits hugely and then stand out in the crowd dominantly and
obtain competitive advantage. Therefore, the hypothesis will be rejected.

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