Investigating of Dominant Factors Causing Loss of Sales and Marketing in a Fast-Moving Consumer Goods (FMCG) Company in Lagos

Abstract

The Fast-Moving Consumer Goods (FMCG) sector contributes substantially to Nigeria's national economy, yet the sector has experienced declining sales performance in recent years, reducing revenues for key market players. While prior studies have examined the sector broadly, few have investigated sales losses within individual firms. This study examined the primary factors driving lost sales and marketing underperformance at Nestlé Nigeria, with a focus on Lagos, and aimed to provide evidence-based insights to support improved competitive performance. A mixed-methods design was used, combining quantitative and qualitative approaches. Quantitative data included inventory levels, stock-out frequencies, marketing campaign metrics, sales figures, consumer demographics, and macroeconomic indicators. Qualitative data were gathered through surveys, focus groups, and customer interviews. Analysis employed frequency distributions, means, standard deviations, Principal Component Analysis (PCA), and correlation analysis. High competition and poor customer service were the most frequently cited internal contributors to sales loss. PCA identified ineffective marketing strategies (loading = 0.671), poor customer service (loading = 0.265), and insufficient product availability (loading = 0.138) as the dominant internal factors. Among external influences, competitor pricing strategies (Mean = 4.15, SD = 0.85) and consumer behaviour changes (Mean = 4.03, SD = 0.88) received the highest mean ratings. Regression analysis confirmed economic downturn as a statistically significant predictor of sales variability (β = 0.450, p = 0.02). The study concludes that improving customer service, strengthening supply chain management, and adopting competitive pricing strategies represent the most critical interventions for Nestlé Nigeria. Enhanced supply chain management and responsive pricing are recommended as priorities for addressing product availability gaps and sustaining market position.