Peculiarities of Project Portfolio Risk Management for FMCG Sector Company

Master thesis is dedicated to portfolio risk management recommendations development for FMCG sector with the distinctive features of this industry. This research contains investigation of the theoretical aspects of portfolio risk management as well as the main features of the consumer goods sector which affect portfolio risk management. Among the most significant characteristics, we can highlight such features as the launch of a large number of a new product, the need for continuous monitoring of competitors, market trends and consumer preferences, sales seasonality of some product categories, wide brand portfolio, wide products range within a single brand. In order to identify the most significant risks of project portfolios, interviews were conducted with the employees of the consumer goods sector with the identified risks subsequent ranking during the survey. In this master work, it was proved with the example of the new product launch through the analysis of pair correlations in SPSS that projects in portfolio are affected to negative interference – the cannibalization effect. By data analysis through regression statistics in Excel it was identified that product market share depends on the investments size for this product media support, competitors’ prices for the similar product and competitors’ investments for their products support. Market share increase is the main objective of the investments in consumer goods sector’s projects. For the evaluation of the possible market share of the product before the end of the project Crystal Ball was used. Implementation of presented recommendations will allow companies in FMCG sector to increase the possibility of strategic goals achievement, budget allocation optimization for marketing support of the products and increase the effectiveness of the risk management of the project portfolios.