The FMCG or the fast-moving consumer goods market is undoubtedly one of the most aggressive and competition markets in the entire world. Irrespective of the kind of products you sell, whether beverages, foods, cleaning products, toiletries, office or household supplies or electronic goods, your customers will have a wide variety of brands from which they can choose. Being an owner of a company within the FMCG market, it depends on you how you wish to build a brand platform with an increasingly sustainable business model which retains, grows and attracts your target customers.
Nowadays, FMCG brands aren’t only competing against other brands at retail pricing levels. The toughest competition comes from other private brands which offer similar services and products at a considerable discount level. Nevertheless, if you wish to stay ahead of your competitors, here are some strategies that you may adopt.
- Emphasizing on innovation
You must be aware of the fact that customers are always looking forward for something different and new. You can get a proof by the long queue or line outside the retail store of Apple which you see when there’s a new release of an iPhone. If you can build a brand loyalty around innovation, this can work for the FMCG products. Customers usually give inherent value to innovative brands and hence they can command higher prices. Unilever has shifted its strategy to innovation in order to bolster sales in grabbing the European and UK markets. The company has already met with huge success in the UK markets with the innovation of compressed deodorant cans and other eco-friendly products. Hence, the innovation formula has to be something which serves their purpose.
- Stay aware of what your competitors offer
Competitor monitoring is one of the most recommended jobs that you need to carry out when you want to stay ahead of your competitors. You will rather be foolish you are not aware of the products, services, strategies, price range and demographics which your competitor is offering. In fact, this is an absolute must! If you take for example Pepsi and Coke, both brands provide black soda and are always in the game of reaching the zenith. When one comes up with a discount offer, the other too follows. Hence this is something that continues in the FMCG market.
- There is lot of importance of product differentiation
Why would a company come to you for buying a shower gel when they can easily get from another shower gel brand? Your product should have a distinct USP which is special only for a specific product of your company. If you don’t have an USP of your product, you won’t be able to convince your customers about the reason why they should come to you. It should be clear to the consumers and they should identify your USP without a doubt.
Hence, you can well understand the fact that there’s lot of competition in the FMCG industry. Nevertheless, if you follow the above mentioned strategies, you might be able to stay ahead of your competitors.