First and foremost, what are ‘fast-moving consumer goods’ (FMCG)? These are goods purchased relatively cheaply and often, they're consumed quickly and sold in large numbers. They are known for their relatively high turn-over rate compared to other consumer goods; they are commonly referred to as ‘consumer packaged goods’ (CPG). Nearly everyone in the world uses FMCGs every day; they are the small consumer purchases we make at the corner store, supermarket and warehouse outlet. Examples include milk, bread, fruit and vegetables, toilet paper, beer and over-the-counter medicines.
Though the absolute profit made on FMCG products is relatively small; they are sold in large quantities, and so the cumulative profit on such products can be substantial. Although considered low-investment items, CPGs account for about 50% of all consumer spending. The other half is what's known as 'high-investment' goods, such as a new car or smartphone. These people are more likely to show off and brag about, not the CPG soda they picked up at the 7/11 store for $2.50. Naturally, the way FMCG products and CPG products are marketed is vastly different. We will now go on to discuss different strategy technics to effectively promote fast-moving consumer goods.
Now the stage is set, let’s understand how FMCG marketing works to sell these products. In the race towards relevancy and brand reach, leading FMCG businesses rely heavily on innovation for an edge. Those that sit on the side-lines or rest on their laurel are losing market share and dominance. Gone is the bygone era of customer loyalty, nowadays, trends are continuously shifting, and fickle shoppers are continually seeking out new products and brands that will make their life flashier, easier and faster. For this reason, FMCG companies are compelled to put forward innovative products and campaigns to capture the market interest — so they can satisfy an unmet need, charge ahead into unsaturated markets and increase their revenue.
Many innovative brands are fads, they sell well immediately, but then quickly die off once their novelty goes away. The mark of a competent, long-lasting product is its ability to increase product sales and overall market share in its second year; ultimately repeating at least 80% of its year-one sales quota. If not, the harsh reality is that the product will be considered a failure. The goal with an innovative brand isn’t to remain on-trend, but rather to become a new standard. When an innovative brand first enters into the market, they generate buzz and interest, primarily via FMCG social media marketing. But if they can persist in the market even after novelty has worn off, they can go on for long-term success.
Digital marketing plays a fundamental role in developing, promoting, distributing and monitoring a new product. The world’s most innovative CPG businesses rely heavily on strategic online marketing for FMCG, integrating the function in the product development process. They know that they must be agile and flexible, to quickly pivot and deliver products that satisfy demand and opportunities in emerging markets. Their bottom line relies on volume to arrive at a satisfactory profit margin.
Listed below are the core aspects we recommend for any FMCG marketing strategy:
Primal is the leading FCMG marketing company in Asia, located in Bangkok, Thailand. We have a wealth of experience conducting sales and marketing campaigns for large e-commerce and brick and mortar enterprises engaged in the business of fast-moving consumer goods marketing. The companies we’ve partnered with are both local and international. Our FMCG marketing agency can provide you with weekly, bi-weekly or monthly reports that identify progress and areas for improvement. These reports will help you maintain or surpass your present sales volume. We can help you spot the trends in FMCG that will vault your company ahead of your competitors.
We also offer advanced SEO techniques, which we employ to keep your website ranking at the top of your industry. We can directly target your competitors’ customers and drive them to your website; enabling you to establish new buy personas and customer segments. We guaranteed results and can deliver a robust digital marketing ROI. Move into the fast lane of the digital marketing for FMCG world by partnering with Primal. We’ll increase your brand recognition as well as your sales volume to the satisfaction of your entire company. Reach out to us today to learn more.
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