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. Growth Strategies For FMCGAli HeydariMBA – MarketingIV Semester. The current pace of change makes it more critical than ever to continually understand consumers’ changing attitudes and behaviours,” Leathwood said. Rather, it’s many granular ones that are specific and attribute-based. 6 proven techniques to increase sales for an FMCG business. Note: F-Forecast, 2018* - Data relates to the financial year FY18 performance of the FMCG sector are analysed. After having gathered this set of information, you will have got a feeling for the type of growth that is demanded. Household and personal care products accounts for 50% of the sales in the industry, healthcare accounts for 31-32% and food and beverage … And yet the report suggests that 45.4% of sales reps missed their quota. Uber is now valued at $3.76 billion and has offices around the globe. One path toward greater RGM impact is to elevate RGM to shape the company’s commercial strategy rather than just enable it. The FMCG industry has a strong distribution channel which is responsible to drive the growth of the global FMCG market. Fast Moving Consumer Goods (FMCG) brands are increasingly using influencer marketing as part of their wider marketing strategy. 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”. By 2020, about 40 per cent of FMCG consumption is estimated to be digitally influenced. Strong growth is possible for many businesses in the FMCG sector over the next 12 – 24 months. Strong growth is possible for many businesses in the FMCG sector over the next 12 – 24 months. The revenue of FMCG’srural segment is forecasted to grow to 15-16 per cent in FY19 from estimated 10 per cent inFY18. 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. Oddy Food Wrapping Paper & Parchment Paper ensure that the food being cooked or packed remains fresh and healthy. Growth Software Tools. Additionally, the report also highlights the challenges impeding market growth and expansion strategies employed by leading companies in the “FMCG … 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 … OVERVIEW THE FMCG … 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. 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 … Mostly, FMCG Company IRI believes it is a crucial time to monitor consumers’ constantly changing perspectives. E          tess@invigorate.com.au The consumer packaged goods (CPG) industry is an enormous one. 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. About IRI 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. If you continue browsing the site, you agree to the use of cookies on this website. 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. pioneers of the market with an imitation strategy, is not sustainable for FMCG firms. The Fast Moving Consumer Goods (FMCG) sector in rural and semi-urban India is estimated to cross US$ 220 billion by 2025. The FMCG Packaging Market is expected to grow at a CAGR of 4.6% over the forecast period 2020 to 2025. General Manager at Trinity alliance (Pvt)ltd. Clipping is a handy way to collect important slides you want to go back to later. If you have the capacity, invest in innovation while your competitors aren’t. 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. However, the growth of the FMCG market affected by the high competition in the major market players of FMCG market. How can we help you supercharge growth and profitability? Shoppers will be spending less in 2020-21 and will have a greater focus on price. FMCG Brands are always in search of ingenious ways to increase the field sales team’s performance and productivity. You can change your ad preferences anytime. For example, people must purchase food regardless of economic conditions. Marketing mix strategies aim to establish products’ loyalty and make it possible for the companies to charge higher prices. 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%). 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. Though the absolute profit made on FMCG products is … Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most demanded products in the market. “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. “Meanwhile, use promotional strategies to draw consumer attention to brands with higher elasticity. Growth Strategies For FMCG. The firm expects sales growth in ham, all-purpose cream, pasta, and canned goods. 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. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. No public clipboards found for this slide. The current recession is the most brutal economic downturn in a lifetime. 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). Press release - Facto Market Insights - FMCG Market Report to observe Potential Impact of Coronavirus (COVID19), Industry Dynamics and Future Growth, 2020-2025 - published on openPR.com Invigorate PR is a full service boutique public relations company that works with idea champions and businesses of all sizes throughout Australia and across the world. Mostly, FMCG Company “Businesses must avoid a broad-brush approach to cutting prices. Discover the importance of using retail data to develop growth strategies and maintain successful category leadership in this infographic for CPG manufacturers. Whilst increasing activity is desired, ensuring that a brand’s message hits the mark is key, otherwise the opportunity is wasted. 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. The current recession is the most brutal economic downturn in a lifetime. 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. The importance of data in developing omni-channel FMCG strategies. An important characteristic of the FMCG companies is price competition among retailers. 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. CPG, FMCG & Retail 05-29-2020 Adapt Your Shelf Strategies During Disruptive Times with Retail Data These strategic pillars of growth will help Australian FMCG retailers and brands to achieve the goal of sustained growth throughout this period. Refer customers. FMCG market is projected to reach $15,361.8 billion by 2025, at a CAGR of 5.4%. Unless brands solidify their FMCG digital strategy now, they are going to witness severe drawbacks in the future. Looks like you’ve clipped this slide to already. The most effective answer relies heavily on the type of product, and the market it’s in. AMA Research added a comprehensive research document of 200+ pages on ‘FMCG Packaging’market with detailed insights on growth factors and strategies. “Many flavour and size extensions erode core brands. An important characteristic of the FMCG companies is price competition among retailers. As a result, the businesses that ramp up marketing can tap into a lot of opportunity. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. We are what PR should be! This project explores the emerging strategies followed by FMCG companies in order to tap the Indian market, especially in the bottom of the pyramid. 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. Uber. 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. The report also presents the current state of the industry in Africa and the long term growth outlook. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. W         invigorate.com.au Please contact Tess Sanders Lazarus for further information and interview opportunities. 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 … Sales of an FMCG business are similar to a see-saw, where both of the sides need to be balanced to maintain equilibrium. 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. Big data, the speed of social media, and retailer polarization also help in the exponential growth of the industry. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Asst. Revenue Growth Management as a tool for portfolio management of products, channels and customers. 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. In episode #15, Juhi Singh, the Digital Evangelist and Transformation Strategist at Marico Limited talks about creating digital growth for FMCG brands. 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. Recessions provide the opportunity to rationalise your range and recover costs to invest in new innovations,” Leathwood added. “Recessions are a great time to invest in research and development as other less capitalised companies hunker down. “Recessions are a great opportunity to streamline your product range and trim the fat off your product range. 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). Choose a growth strategy and the growth vector you want to pursue. ... take you through our learnings one-on-one and discuss the consumer trends impacting your business and opportunities for growth. Increasing spend in a recession can help brands tap into new opportunities. FMCG. Copyright © 2020 IRI. 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. It includes everything from food items like flour, biscuits, ice creams, etc to body products soaps, face creams to cigarettes to beverages, etc. In deciding which marketing tactics to employ, it is a crucial time to monitor consumers’ changing perspectives. As stores began to reopen across the country, Nike’s digital business accelerated even more, approaching triple-digit growth levels. Beverages and personal care equipment are the categories with the highest growth rates. 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. Thus, it is essential to understand new consumers and how to reach them efficiently, profitably and in a way that makes an impact. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. The foundation of the four key pillars has the purpose to help retailers and brands redirect costs to invest in bold new opportunities. consumers need these things in their everyday life so they invests 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. Efficiencies in range and supply will help meet demand and shopper expectations. To evaluate, let’s look at three influencer marketing strategies that work for FMCG brands in 2020. But how effective are FMCG influencer marketing campaigns at driving positive results for brands? 95% of CPG, retail, and health and beauty companies in the Fortune 100 work with us. What they forget is that marketing can be vitally important during a recession,” Leathwood said. The most effective answer relies heavily on the type of product, and the market it’s in. “Most businesses cut marketing costs during a recession. Price cuts should be your last resort.”. Clearly, it’s growth story … 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. It therefore, captures changes during an unprecedented timeframe: the ‘COVID-quarter’. The time is ripe for out of the box innovation. FMCG Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. One of the biggest areas of growth in mobile usage will be in tier 2 cities and small towns in India. They should rather focus on product diversification when developing product strategies. FMCG brands need to stay up-to-date on the constantly evolving digital marketing trends in these tier 2 and tier 3 cities. Cutting back on the SKUs drives supply chain efficiencies and aids efforts to get stock on the shelves for consumers. This means that it is more recession-proof than other industries. Pricing is core to a brand’s proposition and positioning. According to IRI, Australian shopper FMCG spending is less discretionary than other forms of spending. 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. 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. See our User Agreement and Privacy Policy. However, global economic uncertainty may be threatening GDP growth in the short term. “Business leaders are always pressured to cut marketing spending during a recession. FMCG market is projected to reach $15,361.8 billion by 2025, at a CAGR of 5.4%. 1. 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. Invite other B2B companies to refer companies to you in return for a commission. IRI has identified that the consumption of media has grown through COVID-19, and there is an opportunity to increase marketing efforts. Strategy 2: Focus less on products and more on ethics and ethos. “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. New strategies for FMCG companies By Ahmed Faiyaz The industry has already extracted much of the benefit to be had from improving productivity and concentrating on core brands. Managing the customer experience has become a major differentiating factor and an important driver for growth. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The report segmented based on product type, distribution channel & region. Evaluating the product portfolio as a whole and segmenting by price elasticity will help decide on which pricing strategy is right and to focus discussions with retailers. Because of the mixed sources of data, the specific timeframes vary but are clearly stated on each slide. 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. 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 For any decision to be taken at corporate level, you need the right strategic tools. Additionally, the report also highlights the challenges impeding market growth and expansion strategies employed by leading companies in the “FMCG (Fast-Moving Consumer Goods… 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. ’ changing attitudes and behaviours, ” Leathwood said growth strategy and the growth of the mixed sources data... 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