FMCG marketing strategy

Marketing Strategy To Be Adopted By FMCG Business

Owning Fast Moving Consumer Goods (FMCG) business is definitely not that easy. Aiming to gain a large portion of market share and fulfill the diversified needs of customers requires effort, strategy, tactics, investment, product lines, and knowing competitors’ steps. With all these must-to-do requirements, marketing strategy is one of the important agents towards success that FMCG businesses should never neglect.

The success of an FMCG business greatly depends upon how it formulates marketing strategy.  Operating FMCG business with one marketing strategy may give you little, but combining multiple strategies can help you gain maximum profit. And of course, updating your strategies in response to the changing market is also equally important to sustain.

 Top 7 Marketing Strategies for FMCG Business

Here are the strategies the FMCG business adopts to make the brand visible in the market.

1. Form a strong and wide distribution Network

The distribution network is the key to a successful FMCG marketing strategy. Expanding the market shard highly depends upon how efficiently you have developed a distribution network. While developing a networking strategy proper analysis should be done to determine in which location your band can succeed. Knowing the location is a crucial step before planning to develop a networking strategy for the brand.

Developing a networking strategy requires an investment of time. In order to develop an extensive distribution network, proper research needs to be conducted on the location to identify whether people can reach out to your products or not.  After finalizing the perfect location for your brand to succeed, your FMCG business will need a marketing strategy to develop a strong distribution network.

2. Multiple brand strategy

Brand Strategy
Brand Strategy

FMCG business has a wide range of product lines and each product line has multiple products. So, it might not be possible for one brand to earn the entire market share but to some extend FMCG business can minimize space for the competitors’ product in the market. The best way to capture most of the market share is by creating competition among its own products in the market.

The major motive of doing this is to have a strong impact on the market with the products of the same brand. This marketing strategy is effective for FMCG companies because this strategy can easily occupy most of the market. When similar products of the same brand are doing great in the market, there will be very few chances for competitors’ products to expand in the market.

3. Product Flanking

Product flanking refer to offering the same product in different quantity and price in response to a diverse marketing opportunity. When implementing a product flanking strategy, the FMCG company can cover many marketing segments. Fulfilling market demand with different prices and sizes of the products is impactful in keeping the brand’s name on the top of the customers’ minds.

The intention behind product flanking is to make the product affordable to every customer. Additionally, this strategy is also beneficial in encouraging people to buy larger package products. It is an effective marketing strategy because when the product is very new in the market people would want to buy a small package for trial. When they are satisfied with it there is a higher chance that they will buy the larger package in their next purchases.

4. Creating product lines

product line
product line

A product line is a group of similar products that are sold in the market with the same brand name. When a brand gives options to the people to choose then the probability of people choosing the product from the same product line increases. The intention of creating a wide product line is to meet the requirement of different groups of people.

FMCG Company has related product lines to provide customers with all the necessary products they want to buy under one umbrella. If people are satisfied with the brand and can get the entire product from the same brand then the customer is less likely to change the brand. This marketing strategy can help FMCG companies to capture maximum market share.

5. Develop new product

The market is always changing. People are becoming more demanding and want to be satisfied with exactly what they want. It is also an opportunity for the brand to develop new products to fulfill the requirement of people. It’s always better to keep an eye on the market and sense the changing scenario to figure an opportunity to grow.

Increasing domestic and foreign competition can be another reason to add products to the product line. Developing better products than competitors’ products can help you overcome any kind of competition to secure your position in the market. New technology and a shortened product lifecycle can also be the reason to develop new products.

6. Product life cycle strategy

Product life cycle
Product life cycle

Every product goes through four life stages: Introduction, Growth, Maturity, and Decline. And each stage is associated with the change in the market position of the product. So, you can use various marketing strategies to prolong the product’s life cycle at each stage. Try to formulate the marketing strategy for FMCG products in every stage to make it stay longer in the market.

FMCG product has a short life cycle compared to industrial products. FMCG companies plan on developing new products after abandoning the old product, which has experienced the decline stage. So, it’s crucial to stay focus while developing a marketing strategy for FMCG products.

These are the major six traditional marketing strategies that FMCG products must implement to outstand competitors. Besides, this FMCG business must also adopt a digital marketing strategy to introduce the brand to new people.

7. Digital marketing strategy

Digital marketing strategy
Digital marketing strategy

All the business from every industry is incorporating digital marketing strategy in their marketing strategy. Introducing the brand to the virtual world is in trend in every industry. When people are spending most of the time on the internet, businesses are viewing this as an opportunity to earn loyal customers and new customers.

Search engine optimization (SEO) and Social media marketing (SMM) are the two major digital marketing strategies that have an excellent impact on brand visibility and sales. FMCG company can adopt both or one marketing strategy to achieve its marketing goal. Remember to align the digital marketing goal with a business goal for effective results.

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