Digital Marketing for FMCG Companies
If there’s one industry which has perfected mass-media marketing, it’s the FMCG sector. No other product category or industry comes nearly close to the mastery of the FMCG in mass-media marketing. Hence, it’s obvious that the FMCG is a sector heavily dependent on marketing for its sales. But with shelf spaces finding themselves increasingly online and lesser offline, how should the FMCG sector adapt?
The root problem lies in how the industry perceives the internet. They see online as just one more medium to interact with consumers post offline sales. Most brands don’t realise that a significant shift is happening where the internet is literally moving towards being a market for all varieties of FMCG goods or any good for that matter. The best example would be the marketing techniques used my start-ups producing daily consumption products. These new brands just don’t have the budget or infrastructure in place required to compete directly with the mega brands and their perfected advertising strategies. What we see is these small brands effectively and smartly leveraging online media to drive sales.
Recent report by Google-BCG reveals interesting statistics regarding digital marketing for FMCG industry. It is expected that by 2020, digital marketing will influence FMCG consumption by USD 45 billion in India. Particularly, 40% of the overall FMCG consumption in India will be based on digital platforms. Due to the initiative of Digital India, the number of internet users in India will surpass 650 million. Interestingly, the majority of them will be from non-metros. These numbers hint that a large space has been created on digital platform for companies to market their products. In FMCG industry, where there is high competition between brands, the digital marketing is going to play a vital role in determining the total revenue, as it is deemed to be the inevitable future.
How do they do it?
Digital Marketing. With an exponentially increasing number of people making purchase related decisions online, the opportunity to increase conversion rates and subsequently sales numbers through digital marketing is completely up for grabs. Effective Marketing is so crucial for the FMCG industry mainly due to the lack of innovative products as the needs fulfilled by the products are more or less similar. Marketing forms the key element in leading to the sale of these similar products and inducing crucial motivation among the customers to buy the products. The key to selling these products lies in brands establishing their authenticity among consumers and in setting appropriate quality standards to attain the edge over other competitors. Digital marketing helps achieve just that through properly executed strategies resulting in a wider reach which then helps in pulling consumer interest towards the concerned products.
Most brands today are slowly discovering the advantages of showcasing their products 24/7 on their websites. Not to mention the flexibility and convenience offered to customers to order whatever they want, whenever they want, wherever they want, however they want. This has revolutionised shopping as we know it and the transformation has been widely appreciated by consumers and producers alike. This is again another example of how effective digital marketing can help in increasing business by multitudes.
Relevance and Advantages of Digital Marketing for FMCG companies
The impacts of digital marketing for FMCG industry are visible already. However, with the radically growing internet consumption, digital marketing is going to be highly favoured, particularly for FMCG industry. Some of its advantages are mentioned below:
- Industry reports reveal online consumers spend twice than offline consumers on FMCG companies. By 2020, FMCG consumption will be influenced digitally by 65%. Thus, investing in digital marketing for FMCG is a smart decision.
- Since people prefer to by FMCG products from well established companies, digital marketing is the most economical way for new players to compete against well established players in FMCG industry.
- In FMCG industry, the market is packed with products that are alike. Unless the product is innovative, it is very challenging to sell it. Thus marketing plays an essential role in making the sales. Particularly, digital marketing has the potential to reach maximum number of target audience with very low investment, compared to traditional marketing.
- Digital marketing provides the opportunity to market your brand 24×7, unlike newspapers and TV, which are constrained through space and duration. Thus, it is possible to reach out to billions of FMCG consumers worldwide through digital marketing.
- Digital marketing helps to develop brand awareness by having a strong presence on social media. Also, online conversations enable the marketers to identify the current FMCG trends, analyse consumer behaviour, simplify performance tracking, enhance customer satisfaction and extend the scope for continuous improvement.
- Digital marketing helps to identify potential FMCG influencers on social media. By recognizing influencers based on their popularity, qualifications and their followers on social media, you can decide the most suitable influencer for your target audience.
- Digital marketing ‘informs’ about a product, rather than ‘selling’ it. This helps a great deal, especially for FMCG consumers who dislike being ‘forced’ into buying a product.
- Digital marketing helps in identifying your FMCG competitors and their strategies to attract consumers, through their social media activities.
Our Digital Marketing services for FMCG companies
The thing is, we at Adsyndicate can help you achieve wonders for your business through digital marketing. Our clients such as Namaste India and Foodmenu are living testimonies to the extent and effectiveness of our marketing strategies and their flawless execution, whether it be digital or traditional. Our inhouse digital marketing panel is well versed in all components of modern digital marketing and is proficient in creating exceptional strategies accompanied by the promise of sound execution. “It is expected that 130 million Indians will buy cosmetic items online by 2020, making the internet a prominent sales channel with 20 per cent of estimated total sales of $3 billion. Besides, the number of online shoppers in India will continue to grow, expectedly reaching 250 million, or 40 per cent of all internet users, by 2020.” (Source: BL) This is enough proof to convince FMCG brands the need to shift their focus towards digital and invest in adequate strategies to stay on top of the competition. Let us help, we never disappoint. Contact Us today!
Adsyndicate is ranked among the most preferred Digital Marketing Agency in India. With a wonderful team of dreamers, achievers, believers, innovators and endowed individuals, we have been winning hearts and writing successful stories in the Advertising and Marketing domains since 25 years.
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