Why FMCG Companies Spend lot of money on Retail Marketing and focus more on Retail Sales than Institutional Sales?

In light of this global financial crisis ... everyone tends to earn money immediately without orientation of the distant future

The FMCG stands for Fast moving Consumer Goods ,

as the name suggests the Maximum sale comes form Consumer hence money is put on Retail Slaes 

Institutional sales for FMCG is a very small market .The impact of the spend on Retail can have positive impact on Institutional sales 

FMCG or matter of fact Retail Industry is very competitive at all levels.. Be it Getting the product listed in all outlets, attracting customers, retaining customers, maintaining Good display, merchandizing etc not only involve costs but also challenging as you are not competiting with10 or100 brands but1000's & where failure rate is higher than success thus these are not costs but ate investments for the current & future. For most marketers its not just products but are their Baby... :-) Though Institution & Wholesale are also important but many of the requirements are not there as I mentioned above but are highly competitive in terms of pricing, deliverabilty etc & thus have different strategy. Its too different from each other. In Retail you plan strategies for millions of customers &10000's of retailers but in Institution & Wholesale your Market share in terms of wholesale & Institutions are not beyond1000's & there you can't plan for end consumers. :-)

Becuase of Competition & Customer Satisfaction

FMCG prodcuts are more consumed in retail than institutional.

everbody likes to draw money from retail as large number of mouths are there and buzz marketing is at its best in retail sales rather in institutional sales.It simply creates focus group.

Retail marketing based on consumer .consumer attention is more important so every company try to attract consumer that why company focus on retail sales and retail marketing..

In fact, in fmcg sector85% of business rely on retail segment which gives maximum profit compared to insti sales.

A cording to finance law. High risk is high return. Basically public and customers are the basic of earning.

Retail marketing is desinged to get the attention of the customer. the end target of any such company is to sell the product . therefore companies pay alot of attention to placement of the products and promotional prices or bundle offers so that they can get the attention of the customer and they end up buying the product.