Digital Strategy Digital Transformation

The impact of Digital Marketing on FMCG’s brands sales – Part I

Written by Jack Sreih

The impact of Digital Marketing on FMCG’s brands sales, all the way from the start…

After the progress of technologies; appearance of smartphones, applications’ development, fast internet, social media influence and E-Commerce expansion, it’s obvious that the digital is everywhere, everything is digitalized, it is the digital era!

This new fact is letting the FMCG’s marketers specifically face ultimate and unique challenges in converting their marketing effort into sales which is the main objective behind every marketing activity.

Unlike electronics, clothes, cosmetics or financial services; FMCG products (food and non-food) are still largely depending on the offline sales, where products’ visibility on shelves, planogram implementation, products’ positioning, shelf prices, attractive product design and packaging matter as much – if not more – than advertising. Not to mention brand equity, costumer’s loyalty and product’s specs.

In other terms, campaigns for every FMCG product would depend on the right marketing mix of the 4P’s (Product, Price, Place and Promotion). That would best influence the targeted client’s purchase decisions in an era where consumers are increasingly making buying-decisions differently.

While marketers in other sectors work based on their sales-based multi-channels attribution models (Sales Funnel), analyzing the customers’ behaviors along with the user journey from first visiting a website to closing a purchase, enabling them to well define their targets and to focus their activities on the right and potential clients, FMCG marketers are still stuck measuring campaign success via proxy measures, such as demographic reach, viewability, and video completion rate if the activity was an ATL campaign. On the other hand, they are still using the traditional sales activity impact comparing the sales before, during and after the activity implementation for the BTL campaigns paying a lot of money to the retailers to get some specific data or to some outsourced statistic companies, like Nielson, who is keeping the collected data limited geographically and depending on the retailer geographical coverage without knowing the client’s behavior during the purchase act!

Consequently, marketing planning, execution, and action plans are also based on proxies, rather than insights, into what drove product sales.

The revolution must begin!

FMCG companies should not keep losing huge budgets on enhancing their BI systems or paying to a third party to get some analytical data!

Moreover, FMCG companies cannot continue making campaigns, bulk activities and promotions even if nowadays they are targeting specific outlets, BUT, they are not targeting specific clients, which is absolutely a waste of money in targeting unnecessary clients.

FMCG brands need large amounts of data to dissect it and to gain actionable insights that help them make better business decisions. They also need to be able to work at an individual customer level to create personalized experiences which isn’t currently practicable.

So here it’s the main core subject, what should FMCG marketers be doing today to make consumer-level purchase data actionable at scale?

It’s all about taking ownership and building up their own sets of consumer-level purchase data and, ideally, storing this data within their Data Management Platform of choices that should be distributed geographically, by channel, in both offline and online sales elaborating the most suitable and proper action plans.

The Digital platforms are meant to facilitate the work and make life easier, thus, Digital marketing for FMCG companies involves tuning and tweaking the marketing mix for FMCG products to bring them into the current era.

Digital marketing trends in FMCG allow marketers not to just capture the consumer at the final buying stage, but also to create a relationship with them from the beginning, something that was not possible before. This requires marketers to formulate an all-inclusive FMCG digital strategy not to just influence their consumers, but also to personally engage with them.

How Digital Marketing Can Benefit FMCG Brands?

In order to ensure a competitive advantage, FMCG marketers can’t wait for the broader industry to find a solution. Instead, they must take actions now.

We will tackle this subject in a coming blogpost, stay tuned and follow me on digital-me-up.com 😊

 

 

 

About the author

Jack Sreih