Have you noticed for yourself how, standing in a long line at the supermarket, you unwittingly reach out to the tray located at the checkout counter for a chocolate bar or chewing gum, which are safely sent to your grocery basket? At this moment, without realizing it, you are engaged in a marketing move 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 to answer the question about these products in more detail.
How to recognize FMCG products?
From English, the abbreviation is translated as “fast mooving consumer goods”. Simply put, this is what we buy constantly and very often in connection with fast 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 products? 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 dishes, all kinds of batteries, light bulbs and more.
Features of the FMCG market
Unlike durable goods, FMCGs are much cheaper, and therefore, in order to earn money, companies in this area have to constantly maintain high turnover. The frequency of acquisition of consumer goods at a fairly low cost is the basis for a good profit.
At the same time, in FMCG, as in no other field, there is the highest and fierce competition for a place in the sun. That is why it is impossible to make a mistake in choosing an appropriate marketing strategy, pricing policy, you need to constantly keep abreast, being in search of new products to bring to the market.
Supermarket is the best place for FMCG
The most popular in the sale of this kind of goods was won by everyone's favorite FMCG retail chains, or, more simply, supermarkets. It was such self-service stores that were able to effectively sell everyday goods due to the following components:
- wide range of goods;
- relatively low cost of production;
- All main categories of goods are always in stock (continuous replenishment).
In addition, competent planning of the distribution of goods throughout the supermarket (a well-thought-out marketing strategy) stimulates high consumer activity. It is within the trading network that the principle of impulsive purchases is most easily implemented. Have you ever wondered why a showcase with chocolates, candies and chewing gum is always located at the checkout counter, and shelves with bread are usually located in the back of the store (in order to reach them, you involuntarily have to go past other goods)? All this is not an accident, but a marketing move, very popular in FMCG. What does it give? An opportunity to increase sales and earn money at low prices for products.
Features of conducting 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, then only a significant amount of sales can bring high profit);
- the most important part of the work is work with consumer consciousness (it is important here to arouse the buyers' steady and often unconscious desire to purchase a product, create a need for it);
- two things are important - the location of the goods (shelves in the supermarket) and the loyalty of consumers (you need to be able to attract their attention, gain trust).
Thus, in order to survive in a wide variety of everyday goods and high competition in this area, you will have to work hard and constantly, constantly looking for new products for sale and new marketing secrets, maintain an acceptable price level and increase turnover.
Realities of the FMCG Market
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 form more or less in the post-Soviet era. At the same time, one of the first companies that began to conquer the Russian market of consumer goods was MARS. However, it still occupies one of the leading positions in this field. Everyone knows the Snickers or Bounty bars , the Dove chocolate , and the Skills candy. Even our pets consume their products, gobbling up "Viskas" or "Pedigree" food. When buying goods of different groups and brands, we don’t even think that in fact many of them are just different sides of one whole. On 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 almost a monopoly reigns in this market, when several of the largest companies occupy its main share. Small firms have a hard time under these conditions, 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 to win (or win) the hearts of consumers?