Channel strategy management in Fast-Moving Consumer Good Companies
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The fast-moving consumer goods (FMCG) sector operates in an increasingly complex distribution
environment characterised by channel fragmentation, strong retailer power, evolving consumer
behaviour, and rising executional demands. As a result, channel strategy has become a critical
element of strategic management. Despite this development, existing literature largely conceptualises multichannel and omnichannel strategy as formally designed systems, offering limited
insight into how channel strategy is incorporated into strategic planning in practice. This study
addresses this gap by examining how FMCG companies formulate and implement strategic management, with particular focus on the integration of channel strategy into strategic planning
processes.
The study adopts a qualitative research design combining a narrative literature review, a singlecase study, semi-structured interviews, and analysis of publicly available corporate documents
from leading FMCG companies. Empirical data consists of two in-depth interviews with senior
executives from the case company, complemented by capital markets day presentations and
investor materials from global FMCG firms. This multi-source approach enables triangulation
between managerial perspectives and publicly articulated strategic intent.
The findings demonstrate that channel strategy in FMCG companies is rarely articulated as a
standalone strategic framework. Channel considerations are embedded implicitly within
broader strategic planning processes, such as portfolio management, investment prioritisation,
capability development, and long-term growth planning. Consumer behaviour emerges as the
primary driver of channel differentiation, while portfolio design and price-pack architecture
function as key executional tools. The study further shows that retailer collaboration, innovation–channel fit, analytical capabilities, and operational constraints significantly shape how
channel strategies are formulated in practice.
The study contributes theoretically by reframing channel strategy as an emergent, asymmetric,
and capability constraint managerial process rather than a formally optimised omnichannel system. Managerially, this study provides practical insight into how FMCG firms can integrate channel considerations into strategic planning through disciplined prioritisation, capability alignment, and collaborative execution. Overall, the research bridges the gap between normative
channel strategy models and real-world strategic management practices in FMCG contexts.