The future of FMCG companies
Innovative thinking
As modern life accelerates and technology continues to advance, people expect everyday products to keep up too. That's why FMCG companies are always on the lookout for the next great innovation.
New product launches, new schemes, new brands, new brand extensions, and new marketing activity are springing up across the sector. But that doesn't automatically mean that they'll all survive. It's innovative thinking and smart working that will ensure individual companies in FMCG succeed. As Andrew Grove, founder of Intel Corporation, says,
"Success breeds complacency. Complacency breeds failure. Only the paranoid survive."The thinking behind new products is becoming increasingly innovative and the products themselves are being marketed to highlight the value they offer. Top companies are beginning to change the way they work already. As Rakesh Kapoor, CEO at Reckitt Benckiser (one of the leading names in world health and personal care products) says,
"At RB, it's all about letting people have ownership of the idea and delivery and not putting too many decision layers in their way. It's attitude, not process, that drives our innovation."They're adapting their traditional customer relationships as well, with a move away from large scale surveys to focus groups and social media research - bringing the business closer to their customers. Rakesh Kapoor points out that
"being close to the consumer doesn't only mean being reactive. It means listening, watching and then creating ways to meet a need that the consumer has, but may not have articulated yet. If you're in touch with consumers' lives, you're very aware of the life changes they experience over time."Reaching out to consumers
How the consumer is reached is changing too. Paid advertising is being replaced by below the line approaches which allow for direct contact with the public. Companies are also beginning to use the emerging technologies to capture essential data and new analytical models are being developed to measure ROI.
It's a move that is transforming brand relationships and customer experiences of advertising across the sector. Digital marketing platforms are being used to make sure products capture people's imaginations. As Chris Lowe, Chief Marketing Officer for Coca-Cola says, to be effective in today's world,
"you have to focus on the basic relationship with the consumer." This kind of thinking means that blogs, social media and other digital technologies are being used to market products in a whole new way. The FMCG companies have to react fast to survive, as there's no room for complacency. Increasing brand awareness through social media is a key strategy for any savvy FMCG firm.
These changes all make for a very exciting time in the FMCG/CPG industry and the ideal time to get involved. With strong cash flows, higher return on capital employed and steady growth already clear to see, the prospects for the future look good. More than good! The global household and personal products industry, for example, predicts Compound Annual Growth of 3% between 2009 and 2014
To find out more about where this ever-changing industry is headed, check out some of the following links: