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Designing Consumer Values in the FMCG Market in Terms of Sustainability Development

Student: Smyshliaeva Anna

Supervisor: Elena Panteleeva

Faculty: Graduate School of Business

Educational Programme: Marketing (Master)

Year of Graduation: 2020

As part of this master's thesis, consumer value design was carried out regarding the implementation of the project for refill stations in the Russian FMCG market for the household chemicals category. The dissertation consists of three chapters. The relevance of the study is due to the following trends in the FMCG market: • Manufacturing companies in the Russian FMCG market use various marketing tools aimed at educating consumers about environmental and sustainable consumption, while simultaneously innovating and modernizing their production to new standards. Not surprisingly, the new “green economy” paradigm is leading to a change in Russian consumer behavior. • It is logical that Russian retailers are testing various eco-initiatives. • Nevertheless, the FMCG market in Russia is going through quite “turbulent times”. The protracted crisis of 2018 led to a rationalization of consumer behavior. Experts from Nielsen say that a purchase based on a promotion is a trend that will continue to develop for several years, and if earlier the consumer made a decision in the trading floor, now the decision to buy is increasingly made using discount aggregator platforms. • Laundry detergents have been the most “motivated” non-food category in the FMCG market for several years in a row. The aim of the final qualification work is to design consumer value regarding the implementation of the project for refill stations in the Russian FMCG market for the household chemicals category. To achieve this goal, it is necessary to solve the following tasks: • consider existing theoretical approaches to the formation of consumer value; • build your own model that describes the value elements that an individual relies on when choosing environmental goods; • carry out an empirical assessment of the created model; • interpret the results and analyze how much the Russian consumer is ready to purchase detergents through refill stations in everyday life; • develop a value proposition and prepare recommendations for the manufacturing company regarding the positioning of the project, both for consumers and for the retailer. The object of the study is the attitude of Russian consumers, as well as retail representatives to refill stations. The subject of the study is the willingness of Russian consumers and retailers to use refill stations. The theoretical review presented in the first chapter allowed us to delve deeper into the concept of consumer value and consider the value elements of which it consists. The works of foreign authors (Kotler, Zeytaml, Gruel, Monroe and Kirshman, etc.) were analyzed. The second chapter provides a brief overview of the FMCG market in the detergent category - the result of desk research. The results of the focus groups showed that despite the respondents 'concern about environmental problems and the emergence of environmental habits in everyday experience, the level of environmental awareness remains quite low, which is reflected in the respondents' everyday experience in purchasing laundry detergents. To date, respondents are not ready to pay for such value as brand compliance with the concept of sustainable development for the category in question. The limitations of the work are the lack of quantitative data that would allow for more detailed segmentation of green consumer groups in the Russian FMCG market, as well as to identify behavioral patterns of customers in various retail formats (hypermarkets, supermarkets / convenience stores).

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