Consumer Discretionary

New Marketing Opportunity For FMCG Brand

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<p style="text-align: justify;">One of the things that I am passionate about is when you want to decode opportunities, how do we try to focus on the difference between fads and trends?&nbsp;</p><p style="text-align: justify;">Fads are led by stuff that is a buzzword. So, if everybody&rsquo;s talking about immunity, it becomes a buzzword, and then you know, it&rsquo;s mainly likely to be a fact.</p><p style="text-align: justify;">But learned behavior is something the consumer was not doing and is learning to do. Now, that&rsquo;s a trend. And trends need investment.&nbsp;</p><p style="text-align: justify;">So today, the digital education that we are seeing is a trend. It will lift and stay because once you get used to doing things in a particular manner, it will stay there.&nbsp;</p><p style="text-align: justify;">Similarly, the whole rise of e-commerce, Digital marketing &nbsp;and shopper journey are linked to online buying and selling. Now, that&rsquo;s a learned behavior. It can get tempered up and down, but I don&rsquo;t think we will ever go back to our traditional way of doing it.</p><p style="text-align: justify;">Similarly, online payment, digital wallets, and UPI are learned behaviors. It&rsquo;s going to stay from a slightly smaller trend.</p><p style="text-align: justify;">But trends like slightly healthier eating, having cornflakes and salsa hummus, and the shortcuts towards making better cuisine are small trends. Still, they are likely to stay because once the consumer gets used to the fact that I can make better quality food at home.</p><p style="text-align: justify;">When a consumer realizes they can make excellent meat or food at home by cooking it at a very affordable reek, that&rsquo;s a learned behavior.&nbsp;</p><p style="text-align: justify;">So, wherever you see a consumer learning something, you know that it will lead to new opportunities that require investment, pivoting, thinking, and innovation to sort of be prepared for that.&nbsp;</p><p style="text-align: justify;">So, these are some of the things that I feel are learned behavior, and they require manufacturers and marketers to start thinking about the future to say what the following structure looks like.</p><p style="text-align: justify;">In what way will my investment eventually move?</p><p style="text-align: justify;">What is the new media mix that is likely to emerge?&nbsp;</p><p style="text-align: justify;">What are the latest consumer behaviors and attitudes that will be driven by these learned behaviors and are likely to persist?&nbsp;</p><p style="text-align: justify;">And once you realize that this is not a Fad, it is expected to be a trend. You might as well put your money behind where your mouth is and start investing.</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/saurabhbajaj/">Saurabh Bajaj&nbsp;</a></em></span></p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Saurabh Bajaj&nbsp;</span></h3><h2><span style="font-size: 12pt;">1. What are the recent trends affecting FMCG companies?</span></h2><p style="text-align: justify;">Some of the key trends impacting FMCG business in recent times are:</p><ul><li style="text-align: justify;">Rise of Digital as a prominent part in the Shopper journey from Discoverability on Ecom sites (Awareness) to Engagement (through Social Media channels) and Purchase (E-com sites)</li><li style="text-align: justify;">Wellness, sustainability, and purpose are becoming buzzwords, and consumers are actively seeking better quality and more sustainable products with a point of view on local and global causes.</li><li style="text-align: justify;">More natural products with less colors, preservatives, and artificial additives.</li><li style="text-align: justify;">Consumers seeking intensity of experience be in immersive experiences or sinful delights in portion sizes to delight themselves.</li><li style="text-align: justify;">Galloping consumer inflation due to rising commodity prices due to the spate of the global crisis we are seeking unfolding around us.</li></ul><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. What are the growth strategies for FMCG?</span></h2><p style="text-align: justify;">In these turbulent times, FMCG firms are relying on the following consumer-driven marketing strategies:</p><ul><li style="text-align: justify;">Contextual consumer communication, which is sensitive to the reality around us and educates and reassures while communicating relevant product benefits.</li><li style="text-align: justify;">Sensible premium innovation leverages wellness and sustainability trends to provide consumers with a portfolio that is a better fit with online purchases and ties back to consumer needs at this time.</li><li style="text-align: justify;">Digital transformation across Sales, Marketing and Agency ecosystems functions to gear up to the change in purchase and consumption behavior.</li><li style="text-align: justify;">Managing the inflationary times by harnessing internal efficiencies to minimize consumer impact through pricing.&nbsp;</li></ul><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. What challenges does FMCG company face in developing new products and services?</span></h2><ul><li>Landing the proper consumer insight is critical. Often we mistake Fads for Trends, and by the time an innovation is launched, the Fad has already passed.</li><li>Developmental times required and managing an appropriate innovation funnel with the right balance of projects.</li><li>Investments required for building new initiatives. We often underestimate the effort, time, and energy needed to create a new product or service. The lack of patience or resourcing often holds them back from success.</li><li>Proliferation of a non-strategic portfolio. Too many tactical launches can often take the focus away from the master brand investments, weakening the core.</li></ul><h2><span style="font-size: 12pt;">4. What challenges are FMCG companies facing in the rural market?</span></h2><p>Rural has always been a key opportunity that most companies have on their radar. However, the key challenges in accessing this business opportunity are as follows:</p><ul><li>Distribution cost and channel viability is often the key issue, and manufacturers must arrive at innovative distribution structures to access the same.</li><li>Frugal innovation opportunities in creating low-value packs to solve for limited purchasing power.</li><li>Maintenance of product quality across a challenging route to market with channel partners with sub-optimal storage and transportation infrastructure.</li><li>Cost viability for mass media brand building is another challenge as national media is often quite expensive.</li></ul><p>However, rural continue to grow significantly faster than urban and remain a huge opportunity for FMCG firms, especially with rising affluence in these areas.&nbsp;</p><h2><span style="font-size: 12pt;">5. What is marketing to you in FMCG?</span></h2><p>In my mind, marketers are entrepreneurs hired by firms to manage their business models called Brands.</p><p>An FMCG marketer must be conversant in all aspects of the business, be it the fundamentals of Supply Chain, Product Development, Finance, or Sales.</p><p>Marketing is often the glue that holds organizations together, a mirror that shares what consumers feel about them, and a leader who takes that is charged with leading the path into the future.</p><p>Hence, consumer-centeredness, scientific temperament, and empathy are often critical to marketers' success.</p><p>&nbsp;</p>
KR Expert - Saurabh Bajaj