The competition in the FMCG sector has reached a point where the consumers have very little to no idea about half the players out there. Smaller FMCG brands have disrupted the market and pushed larger players to the backseat in some cases while in others they have not quite been able to leave even a faint mark in the market.
We at Gainbuzz – a well-known media planning and buying platform notices that over the years FMCG brands have battled marketing mixes to come up with strategies that cost less while still giving them the market share that they plan on acquiring. Even established brands are constantly on the lookout for media buying strategies that would boost sales without burning a hole in their quarterly revenue sheets. Companies like HUL and ITC rely heavily on pull based strategies and giving them offers that boost sales. For Example, for a very long time Lux soap ran a campaign that focused on buying more of their product to save more. They relied on the fact that Lux was the 2nd most sold soap bar in the country and this strategy helped them push products off the shelves.
Generate Brand Awareness
Smaller brands rely heavily on consumer awareness. Brands that have a smaller market share in a certain region to make sure that they understand the audiences and the way they consume a certain product. It could be about the quantity of a certain product being bought or simply a price based analysis. This is what Parachute Coconut oil did in South Indian markets like Tamil Nadu. Since the market already had a lot of local players selling coconut oil in larger volumes, to generate awareness they introduced Parachute oil in small sachets. Simultaneously they worked towards engaging their audiences by running a Branding van campaign that was aimed at women and giving them the convenience they seek.
FMCG brands can easily achieve brand awareness goals by utilizing a multitude of low cost media available at their disposal. Yes, advertising using traditional channels works, but disrupting the market to grab the consumer’s attention can work wonders for your FMCG products. Creating a campaign that taps into the potential that your audiences offer is the key to success. Looking for opportunities in smaller segments can actively bring down costs another way to do the same is working closely with your retailer network and promoting them to promote the brand and the range of products.
Build Brand Loyalty
FMCG brands also take into account strategies that focus on building a certain level of brand loyalty to steal customers from competitors and engage customers belonging to other segments. Brands like Head and Shoulders promote brand loyalty by incorporating known icons and celebrities to promote the product. They work by pushing more usage of their product to tackle hair problems and the results that they deliver. These helped the brand in pushing sales and grab a larger market share.
Understanding how to build an audience loyal to your Brand
Brand Loyalty programs can be customized by rearranging the touch points for your consumers. You can easily establish your brand’s loyalty by pushing incentive based programs. Running a social media campaigns that focus on enhancing how your consumers perceive your brand come in handy. Associating with an audience’s mindset and changing the perception of your brand works wonders for your brand without costing a bomb.
Product Flanking is the way to go
FMCG brands work by spreading a network of products and building a strong supply chain to back their products. The most common way of penetrating any market is by introducing products in every segment and actively using product flanking. This works by providing consumers with a variety of options in terms of size and volume for the same product. While this increases the packaging costs marginally, this particular strategy helps brands in appealing to consumers of every budget and requirement. Vicks Vaporub used the same strategy and introduced a number of smaller sized packages for their Vaporub. This helped the brand in boosting sales by coming directly in competition with smaller brands that worked for consumers that perceived the brand as costly. They gave something for everyone and their strong market presence helped them in eliminating most of the competition.
Understanding product flanking better
Although product flanking can be a bit costly in the initial phase but it works well in the long run and helps you in grabbing a bigger market share across the consumer pyramid. Introducing a superb range of products that aim at making the brand approachable helps you in making sure that you make sales across channels in all segments of the market.
The FMCG market is a volatile one and witnesses a massive rise and fall in market shares while a dynamic consumer loyalty. The best way to approach this spectrum is to be as flexible as possible while working continuously to understand consumer behavior and the demographic that you aim for.