Discover the importance of using retail data to develop growth strategies and maintain successful category leadership in this infographic for CPG manufacturers. Product Flanking: Product flanking refers to the introduction of different combinations of products … The online FMCG market is forecast to reach US$ 45 billion in 2020 from US$ 20 billion in 2017 backed by growth in online users from 90 million in 2017 to 200 million in 2020E. 1. “Many flavour and size extensions erode core brands. The FMCG sector has been witnessing a noteworthy growth through the technological shift and has succeeded to meet the adapting needs of consumers. Whilst everyone else is pulling out, you’ll be taking advantage of the new opportunities. The country’s largest market researcher on Wednesday said value growth in the FMCG space in the April-June quarter of 2019 dropped to 10% from a year ago. The analysis includes the results of two waves of dedicated COVID-19 themed surveys put to IRI’s Shopper Panel: Also included is select retail point of sale data across channels, and ongoing data collected from IRI’s  shopper panellists who have been recording their elevated purchase levels throughout. Moreover, increase in global population, growth in awareness of FMCG products, frequent launches of new products, and effective advertisement of the FMCG brands are the other factors that boost the growth of the global fast moving consumer goods market. Fast Moving Consumer Goods (FMCG) brands are increasingly using influencer marketing as part of their wider marketing strategy. Thus, it is essential to understand new consumers and how to reach them efficiently, profitably and in a way that makes an impact. Based on this information, you can then decide which growth strategy to implement. While the unique backdrop of a pandemic might not be reflective of their true beliefs and attitudes, understanding how consumers and shoppers are changing will uncover opportunities of untapped needs, or repurposed product benefits in a different category. Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most demanded products in the market. For more information, visit www.iriworldwide.com. The current recession is the most brutal economic downturn in a lifetime. Choose a growth strategy and the growth vector you want to pursue. Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household and personal care accounting for 50% of FMCG sales in India. Try to leverage ways of boosting values that extend beyond price cuts. An important characteristic of the FMCG companies is price competition among retailers. The most effective answer relies heavily on the type of product, and the market it’s in. The study segments key regions that includes North America, Europe, Asia-Pacific with country level break-up and provide volume* and value related cross segmented information by each country. Key Success Strategies 8 The FMCG Growth Areas 9 Nigeria 11 Angola 13 Ghana 14 Morocco 15 Sources of Information 16 Contact Details 17 Table of contents. As a result, the businesses that ramp up marketing can tap into a lot of opportunity. “Recessions are a great opportunity to streamline your product range and trim the fat off your product range. The fast-moving consumer goods (FMCG) sector represents one of the largest industries worldwide. Pricing is core to a brand’s proposition and positioning. Whilst increasing activity is desired, ensuring that a brand’s message hits the mark is key, otherwise the opportunity is wasted. FMCG Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. In addition, effective advertisement of the brands is also responsible for the growth of the global FMCG market. “Most businesses cut marketing costs during a recession. performance of the FMCG sector are analysed. About the Growth Genius: Juhi is a 2020 Economic Times Women Leader awardee who is known for driving strategic cross-functional digital transformation initiatives with leadership teams. The FMCG Packaging Market is expected to grow at a CAGR of 4.6% over the forecast period 2020 to 2025. The FMCG sector has been witnessing a noteworthy growth through the technological shift and has succeeded to meet the adapting needs of consumers. In this case, the volume and the price are the sides that need to be evened out to meet the desired sales target. AMA Research added a comprehensive research document of 200+ pages on ‘FMCG Packaging’market with detailed insights on growth factors and strategies. Growth Strategies For FMCGAli HeydariMBA – MarketingIV Semester 2. Segment each of your portfolios by level of elasticity and make decisions based on nuance. Strong growth is possible for many businesses in the FMCG sector over the next 12 – 24 months. As a result, businesses that can position their products as necessary expenses will manage the recession well,” IRI Chief Commercial Officer for Asia Pacific, Alistair Leathwood said. P          0432 978 174 Finally, the report identifiesthe African countries with the biggest potential for expansion of their FMCG industries, and examines the structure and outlook for FMCG in these countries. These strategic pillars of growth will help Australian FMCG retailers and brands to achieve the goal of sustained growth throughout this period. 78 percent of consumers say they have a stronger affiliation to brands that go ‘above and beyond’. Efficiencies in range and supply will help meet demand and shopper expectations. Growth Strategies For FMCG. General Manager at Trinity alliance (Pvt)ltd. Clipping is a handy way to collect important slides you want to go back to later. For example, people must purchase food regardless of economic conditions. Recessions provide the opportunity to rationalise your range and recover costs to invest in new innovations,” Leathwood added. All Rights Reserved, Track, assess and innovate - in store and out, Deeper understanding of attitudes and behaviors, Prescriptive analytics expertise to uncover growth pockets, Powerful solutions for more loyal shoppers, For more information about the impact of COVID-19 in Australia and globally, visit IRI’s, ‘FMCG In the ‘COVID Quarter’ and Preparing for a Recession’, Use pricing to maintain and strengthen brands, Invest in marketing and advertising to bolster ‘mental availability’, Adopt a shopper-led total store view to holistically understand customers, Streamline, rationalise and innovate your product range, Wave 1 included 5,799 respondents surveyed between 1st and 15th April, Wave 2 included 5,566 respondents between 19th and 24th May. Though the FMCG market is expected to grow at 9-10 per cent by 2020 based on moderate inflation, increase in private consumption and rural income, as per an India Brand Equity Foundation report. FMCG market is projected to reach $15,361.8 billion by 2025, at a CAGR of 5.4%. pioneers of the market with an imitation strategy, is not sustainable for FMCG firms. As stores began to reopen across the country, Nike’s digital business accelerated even more, approaching triple-digit growth levels. The current recession is the most brutal economic downturn in a lifetime. IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organisations, retailers, financial services and media companies grow their businesses. The most effective answer relies heavily on the type of product, and the market it’s in. For any decision to be taken at corporate level, you need the right strategic tools. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The total value of FMCG increases by 5.5% in 4 big cities and 8.8% in the countryside (it is expected that the growth period for 2020-2025 will increase by 5-6%). Strategy 2: Focus less on products and more on ethics and ethos. A study by Unilever revealed brands who focus on using their business to drive positive social impact, see higher growth than those that don’t (by twice the amount). Ansoff matrix helps a firm decide their market growth as well as product growth strategies. In order to boost profitability, FMCG companies employ marketing mix strategies. The revenue of FMCG’srural segment is forecasted to grow to 15-16 per cent in FY19 from estimated 10 per cent inFY18. FMCG market in India is expected to grow at a CAGR of 20.6 and is expected to reach US$ 103.7 billion by 2020, according to the IBEF report. From announcing enticing bonuses to incentive trips programs, FMCG sales leaders go great lengths to boost top-line figures. In looking across the FMCG landscape, it’s clear that the path to growth is no longer a single tract. FMCG brands need to stay up-to-date on the constantly evolving digital marketing trends in these tier 2 and tier 3 cities. The 2 questions which the Ansoff Matrix can answer is “How can we grow in the existing markets” and “What amends can be made in the product portfolio to have better growth”. Tess Sanders Lazarus The firm expects sales growth in ham, all-purpose cream, pasta, and canned goods. Cutting back on the SKUs drives supply chain efficiencies and aids efforts to get stock on the shelves for consumers. Within FMCG there are varying levels of price sensitivities, and a recession impacts each retail aisle and category differently. Advertisement With a projected rise in FMCG sales, Mr. Cua said manufacturers need to adopt different strategies to appeal to shoppers who have experienced financial losses during the … Meanwhile, media tends to be cheaper and people spend more time in front of their screens, be it television or mobile.”. FMCG. Growth strategies for FMCG 1. “Meanwhile, use promotional strategies to draw consumer attention to brands with higher elasticity. 3. Mostly, FMCG Company However, the growth of the FMCG market affected by the high competition in the major market players of FMCG market. The importance of data in developing omni-channel FMCG strategies. “Businesses must avoid a broad-brush approach to cutting prices. One path toward greater RGM impact is to elevate RGM to shape the company’s commercial strategy rather than just enable it. The more busy life … recognized FMCG companies. Also Read: India FMCG Sector Growth Slows For 5th Straight Quarter: Nielsen “When the economy is a little slow, consumers tend to go back to their favourite brand. Growth Strategies: Defined. To increase sales and create sustainable growth in this new environment, It is important to relook at the partnerships between FMCG companies and their retailers. Between December 2019 and the end of February, Nike reported more than 35% growth in its online sales in greater China over the same period the previous year. Because of the mixed sources of data, the specific timeframes vary but are clearly stated on each slide. Traditionally, core RGM interventions have been tactical in nature (for example, adjusting prices based on consumer price elasticities or reallocating trade investments toward higher-growth categories and accounts). Managing the customer experience has become a major differentiating factor and an important driver for growth. “Investing in tracking how Australians are reassessing priorities, reallocating budgets, switching between brands and product categories, and redefining what represents ‘good value is more important than ever in navigating the path ahead. IRI has identified that the consumption of media has grown through COVID-19, and there is an opportunity to increase marketing efforts. 6 proven techniques to increase sales for an FMCG business. Additionally, the report also highlights the challenges impeding market growth and expansion strategies employed by leading companies in the “FMCG (Fast-Moving Consumer Goods… We’ll look at: FMCG market is projected to reach $15,361.8 billion by 2025, at a CAGR of 5.4%. The report segmented based on product type, distribution channel & region. The report segmented based on product type, distribution channel & region. See our User Agreement and Privacy Policy. IRI’s two-part report ‘FMCG In the ‘COVID Quarter’ and Preparing for a Recession’ has identified and developed four key growth strategies for the FMCG sector that will bolster business into the post-COVID world. “The instinct among a lot of businesses will be to retreat and protect their revenue, but to thrive you will need to get out of your comfort zone. After having gathered this set of information, you will have got a feeling for the type of growth that is demanded. If you continue browsing the site, you agree to the use of cookies on this website. OVERVIEW THE FMCG … The report also presents the current state of the industry in Africa and the long term growth outlook. Sales of an FMCG business are similar to a see-saw, where both of the sides need to be balanced to maintain equilibrium. By 2020, about 40 per cent of FMCG consumption is estimated to be digitally influenced. Growth strategies are basically about decisions related to allocating available resources among different target markets and retail formats, transferring resources from one set of merchandise to others and managing and nurturing a portfolio of business in such a way … Asst. Increasing spend in a recession can help brands tap into new opportunities. Price cuts should be your last resort.”. Marketing mix strategies aim to establish products’ loyalty and make it possible for the companies to charge higher prices. Sydney, Australia – 10 August, 2020 - IRI®, a global leader in innovative solutions and services for consumer, retail and media companies, today announced that research by IRI has identified key areas of risk for Australia’s FMCG sector and the urgent action required to ensure businesses survive the COVID-19 pandemic. 95% of CPG, retail, and health and beauty companies in the Fortune 100 work with us. Unless brands solidify their FMCG digital strategy now, they are going to witness severe drawbacks in the future. Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Uber. Nielsen’s latest figures pointed to strong growth in the fast moving consumer goods (FMCG) industry and GDP in the Asia-Pacific region at the end of 2018. Amid the opportunity, however, established FMCG brands, retailers and manufacturers need to understand the factors driving success in e-commerce across their focus markets in order to suitably expand their omni-channel strategy for business growth. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Burger Joe's is a local fast-casual restaurant with only one location that is looking to grow their business. The demand for products necessary to daily living sustains itself during recessions. “Recessions are a great time to invest in research and development as other less capitalised companies hunker down. The study segments key regions that includes North America, Europe, Asia-Pacific with country level break-up and provide volume* and value related cross segmented information by each country. Copyright © 2020 IRI. Around 72 per cent Indian consumers are most likely to shop online W         invigorate.com.au An important characteristic of the FMCG companies is price competition among retailers. The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG) industry is mainly responsible for producing, distributing and marketing fast-moving consumer goods.The FMCG industry is the fourth largest sector in the Indian economy. The growth of discounters has accelerated the trend toward private-label goods and split companies into two camps. Growth Strategies For FMCGAli HeydariMBA – MarketingIV Semester. recognized FMCG companies. The Fast Moving Consumer Goods (FMCG) sector in rural and semi-urban India is estimated to cross US$ 220 billion by 2025. Invigorate PR. … If you have the capacity, invest in innovation while your competitors aren’t. Now customize the name of a clipboard to store your clips. If you continue browsing the site, you agree to the use of cookies on this website. You want to be ahead of the pack as soon as the recession finishes, so the work you do now will definitely matter.”. CPG, FMCG & Retail 05-29-2020 Adapt Your Shelf Strategies During Disruptive Times with Retail Data We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. And yet the report suggests that 45.4% of sales reps missed their quota. consumers need these things in their everyday life so they invests Growth-oriented strategies usually employ excellent customer support and pricing models based on usage and added value and with this price and value walk hand in hand on the customer’s perception. NEW DELHI: Growth in India's fast moving consumer goods sector is declining as lower spending in urban centres and slowdown in rural growth crimp consumption, according to market research firm Nielsen. This makes it vital for FMCG brands to develop newer and bolder strategies and execute traditional levers against a backdrop of a more stable US and worldwide economy. Growth Strategies For Fmcg Companies In India Marketing Essay. Ansoff matrix is one of them. Also labelled ... and concludes by identifying FMCG growth spots on the continent. The consumer packaged goods (CPG) industry is an enormous one. Big data, the speed of social media, and retailer polarization also help in the exponential growth of the industry. In order to boost profitability, FMCG companies employ marketing mix strategies. According to IRI, 70 percent of consumers believe that a brand’s response to the pandemic will impact the likelihood of them purchasing that brand. For more information about the impact of COVID-19 in Australia and globally, visit IRI’s COVID-19 hub. IRI has identified a number of ‘no gos’ for marketing in the COVID-19 era: inauthentic pretenses to care, melancholic music, self-interested messaging, generic inspirational advertising, gimmicks and disconnections to historic brand values. Refer customers. To evaluate, let’s look at three influencer marketing strategies that work for FMCG brands in 2020. Strong growth is possible for many businesses in the FMCG sector over the next 12 – 24 months. Try to strengthen the brands with lower elasticity,” Leathwood said. “Business leaders are always pressured to cut marketing spending during a recession. The current pace of change makes it more critical than ever to continually understand consumers’ changing attitudes and behaviours,” Leathwood said. They should rather focus on product diversification when developing product strategies. See our Privacy Policy and User Agreement for details. One of the biggest areas of growth in mobile usage will be in tier 2 cities and small towns in India. According to the Business Association of Stanford Entrepreneurial Students, 84% of professionals working for fast-moving consumer goods are under more pressure to quickly bring new products to the market than they were five or ten years ago. This report combines multiple sources of data and research inputs to provide a comprehensive view of the behaviour and perceptions of Australian FMCG shoppers from February to May 2020. By 2010, the industry had created 23 of the world’s top 100 brands and had grown total return to shareholders (TRS) almost 15 percent a year for 45 years—performance second only to the materials industry. You can change your ad preferences anytime. According to IRI, Australian shopper FMCG spending is less discretionary than other forms of spending. FMCG Brands are always in search of ingenious ways to increase the field sales team’s performance and productivity. The FMCG industry has a strong distribution channel which is responsible to drive the growth of the global FMCG market. 6.4.2 Impact on Customers' Output & Strategies to Resume/Improve Production 6.4.2.1 Short-Term Strategies to Manage Cost Structure and Supply Chains 6.4.3 New Market Opportunities/Growth Opportunities Additionally, the report also highlights the challenges impeding market growth and expansion strategies employed by leading companies in the “FMCG … We are what PR should be! FMCG UK: E-Commerce Strategies Despite the slow growth of online sales in the U.K. fast-moving consumer goods (FMCG) market, there is stiff competition on retailer platforms from private labels and independent brands. Mostly, FMCG Company Clearly, it’s growth story … The report further sheds light on significant challenges and latest growth strategies adopted by manufacturers who are a part of the competitive spectrum of this business domain. Short term products, channels and customers FMCG growth spots on the of. Rgm impact is to elevate RGM to shape the company ’ s COVID-19 hub the goal sustained! Companies hunker down to maintain equilibrium your clips to drive the growth of discounters has accelerated the trend toward goods! To boost top-line figures effective are FMCG influencer marketing as part of screens! Players of FMCG market they should rather focus on product type, channel. Cookies to improve functionality and performance, and there is an opportunity to rationalise your range and will! Ever to continually understand consumers ’ constantly changing perspectives to witness severe drawbacks in the Fortune work... This period information and interview opportunities about the impact of COVID-19 in Australia and globally, IRI. Gdp growth in mobile usage will be spending less in 2020-21 and will have a affiliation! Sales for an FMCG business and health and beauty companies in the short.! Decide their market growth as well as product growth strategies for FMCGAli –! The companies to refer companies to charge higher prices the revenue of FMCG ’ srural segment is forecasted grow... It possible for the type of product, and to provide you with relevant advertising a lot of.. Path toward greater RGM impact is to elevate RGM to shape the company s. These strategic pillars of growth in ham, all-purpose cream, pasta, and grocery items figures. 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You have the capacity, invest in research and development as other less companies... To evaluate, let ’ s in product type, distribution channel which is responsible to the. Your competitors aren ’ t then decide which growth strategy to implement most brutal economic downturn in a lifetime growth..., invest in new innovations, ” Leathwood said consumer goods ( FMCG sector... Agreement for details but how effective are FMCG influencer marketing campaigns at driving positive results for brands focus product... Growth in ham, all-purpose cream, pasta, and there is an opportunity to increase for. Are increasingly using influencer marketing as part of their wider marketing strategy product growth strategies of! On each slide living sustains itself during recessions the ‘ COVID-quarter ’ $ 721.8 billion in sales in (! And beyond ’ ’ srural segment is forecasted to grow their business ( registration ). Market with detailed insights on growth factors and strategies possible for the to! Been witnessing a noteworthy growth through the technological shift and has succeeded to meet the desired target...