Fmcg Market Advantages And Disadvantages

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

According to Keller(1993) the effective brand positioning gives a brand a competitive advantage or “unique selling proposition” that determines a reason why consumers are buying this product or service (Keller, 1993). Similarly, Kay (2004) argues that brand’s strength depends

2-Introduction 2.1-About FMCG Industry Fast Moving Consumer Goods (FMCG) industry is one of the fastest growing industries in the world, which consists of food as well as non-food consumable products. The volume purchased by end users is usually on a small scales and everyday use basis. This industry had suffered immensely during the global financial crises however, most of the companies conquered profitability and sales growth by 2010. These products are mostly available at supermarkets, chain stores, hypermarkets, grocery stores, etc. The

Simplified brand loyalty describes a status in which consumers determine their selves in; out of it they become committed to a brand. Thereby they continue purchasing products or services of a specific brand. At this point consumers rather spent more money on a product of a specific brand than buying from multiple suppliers within the same category. Mainly brand loyalty is a result of consumer’s behavior, which is enforced through a company’s measurements regarding branding. Branding is a process that a company runs through in order to establish a new brand. The ambition here is to strengthen a unique name and image for a product in

Primarily the loyalty is based on perception, not tangible evidence. Here we can see how important brand equity and positioning can be to a product that is otherwise probably on par with many of its competitors, but the message conveyed by the brand is quite different.

While I’m an atypical U.S. consumer who doesn’t buy into marketing hype, I do have strong product/service loyalty affiliations. I’ll try to keep my Journal entry under 1000 words! I like to revisit the meaning of familiar words. Merriam-Webster (n.d.) defines loyalty as, “The quality or state or an instance of being loyal”. This is exactly what brand loyalty and loyalty programs are trying to create: an ongoing experience with multiple touch-points that captures followers and keeps them engaged through rewards, added value, and “prestige”. The goal is to lengthen “the lifetime value of the customer” (Tanner & Raymond, 2010, p. 284) which helps to maximize profits.

Brand loyalty is the ‘Holy Grail’ to all marketing organizations. Marketing practitioners are consumed by it. They search. They try. They dream. They want to achieve the ultimate in brand loyalty, making it so airtight that no competition can lure their consumers from their brands of products. Unfortunately, there is no one-size-fit-all methodology. Competition is dynamic. There’s no way to accurately anticipate what the creativity of their competitors can bring to the marketplace, which can lead to

Sorce, P. (2002). Relationship marketing: A research monograph of the printing industry center at RIT. New York, USA: Rochester Institute of Technology

Positioning is the process of designing the company’s offering and image to occupy a distinctive place in the minds of the target market (Kotler and Keller, 2006). Scientists Etzel, Walker and Stanton (1997) refer positioning as the management’s ability to bring attention to a brand and to differentiate in its favorable way from similar products in different brands. However, Ries and Trout (1986) emphasizes that positioning is not what is done to product/brand, positioning is what you do to the mind of the prospect. According to Vukasovic (2009), the positioning of a brand is ultimately depends on the consumer, and how they perceive the overall quality, attributes, value, price, and image of the brand. In short,

Thanks to this two factors, P&G find itself with a significant competitive advantage. However, slowdown in global economic condition is making it increasingly difficult for branded product manufacturers like P&G to maintain their sales volume and revenue growth.

Positioning: After segmenting and targeting. Where in customers’ minds the product occupies relative to competing products.

The FMCG industry is volume focused and is categorized by low margins. The products are branded and supported by marketing, wide advertising, smooth packaging and strong distribution networks. The Fast Moving Consumer Goods segment can be classified under the premium segment and popular segment. The premium segment outfits mostly to the higher/upper middle class which is not as price delicate apart from being brand sensitive.

The birth of ‘Marketing’ happened centuries ago where vendors in ancient times tried to seduce the oncoming customer by chanting in loud noises and catering to the customer needs by negotiation of price or assumption of what they might need aside from what they were actually looking for. Over the years, this process has been refined, given a

Many definitions from the experts about brand positioning. Philip Kotler stated that Brand Positioning is the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds (Kotler, 2003, Page 308). Beri (2007, p 469) also mentioned that brand positioning is about how the brand perceived by the target consumer in related to other brands. Based on those ideas, we can determine that brand positioning is about how the brand itself received and placed in the mind of our customers.

The behavior in which a consumer keeps buying a product time and again instead of buying products from other competitive companies is called Brand Loyalty. Brand loyalty can often be termed as Customer Loyalty, Brand Commitment, Product Loyalty etc. Brand Loyalty is seen among consumers when they realize that the product is better than the other products that are available in the market. This affinity of a consumer towards a particular product is considered to be brand loyalty. Although, this consumer behavior is not limited to a simple repetition of a purchase, there is also a psychological reasoning behind the consumers’ affinity towards behavior.