Fast-moving consumer goods or FMCG goods are those products which are sold quickly and cost relatively lesser than other products, for example, soft drinks, cleaning products, alcohol or toiletries, grocery items and so on. It may appear that the absolute profit made by FMCG products is small, however, as they are sold in bulk, their cumulative profit becomes substantial. The success of an FMCG business largely depends on its marketing strategies and usually a marketer employs different combinations of strategies to raise his/her sale.
Let us know some of the favorite marketing strategies implemented by FMCG business.
Multi-brands is one of the widely used strategies by companies where they foster several brands under the same category. The primary motive behind it is to capture a significant market share as it is not possible for a single brand to accommodate the entire market. For example, Britannia has multiple segments like Good Day, Crakers, Nutri choice, Marie Gold and so on.
Product flanking refers to the introduction of various combinations of products at different prices. Under product flanking, a single product is offered in different sizes and price combination to fulfill as many market segments as possible. For example, shampoos come in a variety of bottles, containers, and sachets.
Advertising is a vital mean to access target audience. There are several mediums to reach potential customers for example newspaper, print, the internet, and FMCG ads. While targeting a market, it is essential to building awareness about an FMCG brand which may be available in the market, but people might not be aware of it.
A new brand allows the company to launch a new product more easily. Moreover, a well-recognized brand name gives the new product instant acknowledgment and wider acceptance. This is why companies make brand extensions so that the new brand get established in due course of time. For example, Godrej; it has multiple brands like Good Night, Godrej Expert, Cinthol, Frika, Hit, Ezee, Soft & Gentle and so on.
Building product lines
Companies add new product lines to fulfill consumers’ diverse needs and demands. For example, Amul. With the success of its first product Amul Milk Powder, the company launched a series of products like Amul Ghee, Amul Butter, Amul Cheese, Amul spread and Amul Chocolates and so on.
New product development
To develop new products is essential for a long-term success of a company. A company adds new products through the acquisition of other companies or by putting its own effort in developing the new product. With this, the company enters the growing market for the first time and add-on its existing product lines.
These are some successful, tried & tested marketing strategies adopted by companies to raise their sale. How many of these strategies have you employed in your business projects?