FMCG - what is it? The FMCG market and its marketing secrets

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Have you ever noticed how, standing in a long queue at the supermarket, you involuntarily reach for a tray located at the checkout counter for a chocolate bar or gum, which are safely sent to your grocery basket? At this moment, without realizing it, you are on a marketing ploy and thereby accelerate the turnover of funds in the field of FMCG. "What is it?" - you ask. Products that we all encounter regularly and that we constantly need. This article will help answer the question about this product in more detail.

How to recognize FMCG products?

From English, the abbreviation translates as "fast mooving consumer goods". Simply put, this is what we buy constantly and very often due to rapid consumption. They are characterized by three main features:

• low cost;
• quick implementation;
• use for a short period of time.

All products that fall under these parameters are FMCG. What are these goods? First of all, products with a limited shelf life (dairy, bakery products) and quickly consumed (cigarettes, drinks, chocolates, alcohol). In addition, this group includes all household chemicals (powders, toothpastes, soap) and cosmetics, paper and plastic utensils, all kinds of batteries, light bulbs, and more.

Features of the FMCG market

Unlike durable goods, FMCG is much cheaper, and therefore, in order to earn money, companies in this area have to constantly maintain a high turnover. The frequency of purchasing everyday goods at a fairly low cost is the basis for making good profits.

At the same time, in FMCG, as in no other area, there is the highest and toughest competition for a place under the sun. That is why it is impossible to make a mistake in choosing the right marketing strategy, pricing policy, you need to constantly keep your finger on the pulse, while looking for new products to launch on the market.

Supermarket is the best place for FMCG

The greatest popularity in the sale of such goods has been won by everyone's favorite today FMCG retail chains, or, more simply, supermarkets. It was these self-service stores that proved to be able to effectively sell everyday products due to the following components:

• wide rangegoods;
• relatively low production cost;
• all major product categories always in stock (continuous replenishment).

In addition, competent planning of the placement of goods throughout the supermarket (a well-thought-out marketing strategy) stimulates high consumer activity. It is within the framework of the trading network that the principle of impulsive purchases is most easily implemented. Have you ever wondered why a showcase with chocolates, lollipops and chewing gum is always located at the checkout, and shelves with bread are usually located at the back of the store (to reach them, you will involuntarily have to walk past other goods)? All this is not an accident, but a marketing ploy, very popular in FMCG. What does it give? Opportunity to increase sales and earn in conditions of low product prices.

Features of conducting a marketing policy in the FMCG-sphere

The features characteristic of marketing in this area include:

• continuous increase in turnover (when each individual product is inexpensive, only a significant amount of sales can bring high profits);
• the most important part of the work is working with the mind of the consumer (here it is important to arouse in buyers a steady and often unconscious desire to purchase a product, create a need for it);
• two things are important - the place where goods are displayed (shelves in the supermarket) and consumer loy alty (you need to be able to attract their attention, gain their trust).

So to survive in a wide variety of goods everydayconsumption and high competition in this area, you will have to work hard and continuously, constantly looking for new products for sale and new marketing secrets, maintain an acceptable price level and increase turnover.

FMCG market reality

In America and Western Europe, the FMCG market has existed for a very long time and is significantly ahead of the Russian market in terms of development and organization. The FMCG category in Russia began to take shape more or less in the post-Soviet era. At the same time, MARS became one of the first companies that began to conquer the Russian market of fast-consumer goods. However, it still occupies one of the leading positions in this field today. Everyone knows Snickers or Bounty bars, Dove chocolates and Skittles sweets. Even our pets consume their products, gobbling up Whiskas or Pedigree food. When buying goods from different groups and brands, we do not even think that in fact many of them are just different sides of one whole. Of a number of other products sold under different brands, it can be said that most of them belong to one big brand (Nestle, Wimm-Bill-Dann, Coca-cola). This suggests that this market is practically dominated by a monopoly, with several of the largest companies occupying the majority of its share. Small firms in these conditions have a hard time, but some of them find their niche and successfully exist in the modern FMCG market. What is it,if not a successful marketing policy that helps win (or win back) the hearts of consumers?