Page 324 - (DK) The Business Book

322 QUALITY SELLS

camera also surpassed the iPhone 5 and breakfast cereal, that are
in terms of functionality and pixels. bought frequently by households
In addition, according to research and consumed immediately. Since
by the UK consumer magazine FMCGs are purchased regularly
Which?, the Samsung processor throughout the year, the sales
was nearly twice as fast as that in volumes achieved by a successful Quality means fitness
the iPhone. product can be immense. for use. Fitness is defined
Samsung’s prices were slightly A good example of an FMCG by the customer.
lower than Apple’s, but there were market is the one for toilet paper. Joseph Juran
other producers of Android mobile According to research by US US expert on quality management
phones that substantially undercut toilet paper manufacturer Charmin, (1904–2008)
Samsung’s prices without taking 126 billion rolls of toilet paper
any of its market share. The key to are bought every year in the US.
Samsung’s Galaxy 4 success was In a market this large, even a
its superior quality. small share will translate into
multimillion-dollar revenues. If
Brand loyalty consumers habitually purchase
Quality can be an important selling the same brand of a particular and again if the product is softer
point even for low-cost products, product over and over, rather and stronger than the brands sold
since it helps build brand loyalty than switching between rival by its rivals, generating higher
and thus ensures repeat customers. brands, their brand loyalty will volumes of sales and greater
In markets for fast-moving consumer be invaluable. revenues. This means the business
goods (FMCGs), manufacturers use High-quality brands are more has increased its revenues without
superior product quality to preserve likely to win brand loyalty than having to pay any of the marketing
and extend their customer base. brands of an inferior quality. For costs usually associated with
FMCGs are nondurable products, example, households are more likely acquiring customers.
such as beer, toothpaste, chocolate, to buy Charmin toilet paper again
Service and quality
Another indicator of good quality
is providing a service in a manner
that exceeds customer expectations.
This might manifest as efficiency,
Even a small or rapid response to customer
market share of these
concerns. The Zurich Insurance
repeat-buy, low-cost Group operates in over 170
items will represent
vast profits. countries and each month handles
over 600,000 customer interactions
via phone, mail, and the Internet.
Its ambition is to be the best global
insurer as measured by customers,
employees, and shareholders, and it
actively pursues quality assurance.
Its iQuality program sets out how
Consumers tend to employees can pay more attention
stick with their to customers, and find out more
favorite brands of about their changing needs and
fast-moving consumer expectations. It performs regular
goods (FMCGs), which checks on the quality of employees’
Household items such as toothpaste, toilet
are bought regularly. work and uses extensive market
paper, and laundry detergent represent low-cost,
high-volume items that are bought regularly and research to gain feedback on
generate huge revenues for manufacturers. customer experience.