FMCGs are famous for having massive marketing budgets and comprehensive strategies. With the advent of digital marketing, companies everywhere are shifting their marketing strategies to adapt to the wave of change. FMCGs are one of the biggest beneficiaries of this change and to educate you about them, we have written this blog. We will educate you on the following topics:
- Definition of FMCG
- 7 Trends in Digital Marketing Strategies of FMCGs
- Three in-depth case studies on digital marketing strategies with pdf for-
- Real Fruit Juice
- BBlunt Cosmetics
- Veeba Ketchup
The massive shift to a digital marketing strategy due to the increase in screen time on our mobiles and laptops as we slowly abandon old mediums of communication such as TV and radio. Combined with the rise of eCommerce stores and advancements in logistics, customers now want to buy everything online and from the convenience of their home. In this digital world, a comprehensive full-fledged digital marketing strategy is a necessity for FMCG brands.
The students at IIDE work on several projects during their training and get hands-on experience of the industry’s inner workings. They learn how to think from the user’s perspective as well as the brand’s perspective while coming up with viable solutions to business problems in this digital era.
The three case studies in this article are adapted from the final projects of the following students:
- Real Fruit Juice- Lisha Porwal & Rishita Hindocha
- BBlunt Cosmetics- Aditi Khandelwal & Namrata Dubey
- Veeba Ketchup- Shrey Dagli
Their work, from conducting in-depth research to creating viable business solutions and strategies, is full of insights, deep learning and showcases a great understanding of digital marketing strategies and their implementation.
Let us now begin our learning by first understanding a bit more about FMCGs in India.
Definition of FMCG
FMCGs or Fast Moving consumer goods are products that have a small shelf life and are used daily by its users. These products define our everyday usage materials like packaged food, juices, hygiene and lifestyle products etc. FMCGs are always in high demand because of their regular use of nature.
What is FMCG Marketing?
FMCG marketing has been the centre of some of the most iconic marketing jingles, taglines and advertisements. Traditionally, FMCG marketing was done through mediums such as door to door salesman, radio advertisements, newspapers and banners. These mediums were mass messaged, i.e., a company would be able to only send one common message to a very diverse crowd and hope for some success.
As digital marketing has crept on the scene, the same FMCGs are now changing their marketing strategies and tactics. With the medium of communication changing, the industry is going through a transition. Let us learn more about these trends that are shaping the industry and its marketing techniques.
Top 7 FMCG Digital Marketing Strategies in India
With the advent of social media, expanding data networks and spread in the usage of smartphones and the boom of eCommerce stores, the traditional marketing method for FMCGs are under attack. Long gone are the days where a FMCG would have only one advertisement they used for a product everywhere, with digital marketing, each promotional push can be customised to meet the consumers’ needs.
Let us now discuss the top 7 trends in digital marketing strategies of FMCGs in India.
1. Customer-Centric Content Marketing:
Traditionally, FMCGs marketed their products by only talking about its attributes. TVs, newspapers and radios all had the same message about what the product was and does. Such marketing was not very effective because it was not attractive and did not appeal to people individually. With the arrival of digital marketing, the strategies of FMCGs in India have changed drastically.
Through digital marketing, the customers get the content which revolves around them. They can engage and talk about the brand, show other people what they use and help the brand reach recognition for their efforts. FMCGs have capitalised on this trend heavily. With user-centric content marketing, a customer receives more personalised branding and more relevant advertisement is shown to them.
According to a survey, an average adult spends about 2 hours and 40 minutes on their social media applications daily in 2020. This is a massive amount of time where customers of a brand are highly engaged and can be easily reached. For an organisation, it is now a must to have their presence in all the platforms relevant to them.
Every social media platform is different and effective for different kinds of audience. While Facebook appeals well to age groups, Instagram is highly effective for marketing to the youth. LinkedIn is effective for increasing awareness about the work of an organisation, especially with professionals from the age of 25 – 45. YouTube is a great platform to put on the visual and long-form content, where Pinterest is great for running informative campaigns and pictorial content.
An organisation needs to identify the best social media platforms for their purpose and maximize their efforts on them.
3. User-generated content
Traditional methods only allowed for one way communication, that is, the company promoting its products to the users. Now with social media, the ability to communicate between companies and users has changed things. Smart organisations let their users do their promotions for them through applying UGC or User Generated Content strategy.
In UGC, a user is asked to promote the product or service through putting a story or post, tagging them and sharing hashtags. Such content acts as a great piece of digital word of mouth and is considered to be one of the most authentic and trusted sources of digital marketing. It engages the user to talk about the brand at the same time increasing the brand’s perceived authenticity by the people who see their friends’ posts and stories.
4. Increasing appeal through Influencer Marketing:
People like to believe other people they look up to, and that precisely what influencer marketing is based on. An influencer is someone with some form of skills they are famous for. They command a public presence and are trusted for their word. Through influencer marketing, a company asks them to produce content using the brand’s product or service, and drive conversation amongst their fans regarding that. An influencer can add a lot of legitimacy to a brand and its product, this is especially true for FMCG brands.
5. Automated Email Marketing
As people get used to more and more email marketing, they get bored and unaffected by them. The newest innovation in marketing is automated email marketing. While earlier mass mailers for sending general messages and offers were used, now we use action and preference generated email journeys to give specialised experience for all. This email marketing format is also known as Drip Marketing.
For example: When a customer first signs up, one email will be sent regarding that. Now if the customer after signing up goes and puts an item in their online cart, but does not check out, another email will be sent to remind you to complete your purchase and so on.
Automated emails are a great way to influence a customer. By making specialised action triggered emails, you can communicate to your customer more appropriately and be better able to guide them to make a purchase. Such emails also assist you in retargeting consumers who have already purchased from you.
6. Hosting in-house eCommerce Store
This might sound absurd, but many FMCGs do not have their eCommerce stores on their website. They rely on digital marketing to increase their offline sales but do not use the easy way of directly selling to the customer online. Now is a great time for the FMCGs to start direct selling through their websites as increasing numbers of consumers are beginning to shop online. FMCGs should also have their portals on websites like Amazon and Facebook to capture their customers digitally, everywhere.
7. Online Reputation Management
When customers shop online, one of the key decision making factors before making a purchase is online reviews. All the eCommerce stores have a review section where anyone who has bought the product can put a review. These reviews help in increasing the authenticity of the product at the same time develop trust with the customer that the product quality and usage is satisfying.
Customers who write reviews are also some of the most engaged users of a brand, hence it is very important to talk to them. This process of engaging the users is called ORM. An FMCG can capitalise on every positive review and smooth overall negative reviews with a proper ORM strategy.
Now that we have looked at the latest trends in Digital marketing strategies for FMCGs in India, let us now discuss three separate case studies to understand where and how these trends can be used in an FMCGs’ digital marketing strategy. We will look at the research and then solutions proposed for each brand and learn how to implement a business strategy using deep insights.
FMCG Digital Marketing Strategy Case Studies
Now that we have learned the various forms of digital marketing strategies that can be employed by the FMCGs to better attract customers, let us now look at some research and FMCG case study examples on how we can apply these tactics and strategies we learned to real-life situations.
All these strategies that we are presenting are solutions created by our brilliant students. They have taken up top brands in India and done in-depth research about the brands and come up with innovative solutions, using these latest trends and strategies to make holistic digital marketing strategies.
For this article we have picked our favourite FMCG presentations by our students, showcasing different strategies in three separate spheres of digital marketing. You can even download free FMCG case studies.
1. Real Fruit Juice- ORM and Paid Marketing:
Real Fruit Juice is one of India’s most trusted and oldest FMCG brands and a household name. Launched in 1997, the fruit juice is one of the most recognised brands in India. Serving millions, the juice is now sold to customers through the medium of eCommerce and websites. To keep pace with the changing world, they require digital marketing to maintain the market share. We now look at the deep insights collected by our students regarding Real Fruit juice and proposed solutions to improve their website through search engine optimization. Our student has created an entire sample digital marketing plan for Real Fruit Juice.
Check out the full Real Fruit Juice FMCG Case Study PDF for free
a. Research and Competitor Analysis
To better assess the brand at hand, we will first look at the current state of digital marketing is done by them. We will look at the competitors of Real Fruit Juice and the digital marketing presence of these FCMGs.
SWOT Analysis or Strength Weakness Opportunity and Threats analysis is a method of charting out what a company does best and what are the factors it should be worried about. It helps in giving a good overview of the state of the company.
Real Fruit has an excellent offline and word of mouth presence, but their approach to digital marketing has been poor and their after-sales online relations management very stale.
A website is the online address of a company, everyone visits the main website of any company before they make an online purchase. Most companies host eCommerce portals on their websites as well, making it a crucial part of any marketing strategy to focus on the website building and search engine optimization.
Dabur’s website (Real Fruit Juice’s parent company) is decently well built and targets a wide variety of keywords and has good domain authority. This shows they can capture a big amount of users through just organic posts.
Now looking at the negative aspects of the website, nearly half of the people return from the website very quickly (bounce rate) and loading time is a whopping 8. 12 seconds. This shows that the website is not user friendly.
Social Media Presence
Many companies create social media profiles but due to lack of concentrated effort and strategy, the profiles tend to underperform. Real suffers such a situation especially on Instagram, YouTube and Pinterest.
Real Fruit Juice faces its main competition from Tropicana and Paper Boat. Both these fruit juice companies have comparable quality and offer unique propositions to the consumer. When comparing the social media presence, Real fairs badly against its competitors.
b. Solution Strategy Proposed
As identified earlier, real juice suffers from weak ORM and online presence. The student team has identified these pain points and created the following solutions. These strategies are only a part of the sample multi-channel marketing plan they have created for these FMCG products.
Online Reputation Management
The most engaged and interested customers leave comments on websites such as Amazon And Grofers on products they bought earlier. According to surveys, 78% of consumers trust reviews as much as personal recommendations. This makes ORM very crucial, especially for physical products.
To every good review and bad review, a reply and engagement is a must. The student team has created a certain case study replies to showcase how engaging ORM should be a must for Real Fruit Juice digital marketing strategy.
All platforms collect customer data and their interests. A company can make more targeted and differentiated ads for each customer of different interests and appeal to them personally. Paid posts are a great way to acquire new and high-quality customer leads for your brand. Here are the ad seats and customer targeting parameters for each ad:
2. BBlunt- Email Marketing
BBlunt is a trending salon/ fashion brand, offering professional haircuts and high-quality fashion products. Started in 1994, the brand started as a fashion salon. With rise success and fame, it entered the world of beauty products, especially focusing on hair products. They have created a brilliant sample digital marketing plan for FMCG cosmetic products.
Check out the full BBlunt Cosmetics FMCG Case Study PDF for free
a. Competitor Analysis
BBlunt is a budding brand and faces the competitive world of fashion products. The students have created the following social media presence analysis. According to their research, they found that Lakme Salon has a very strong presence across all platforms. Whereas the presence of BBlunt salons is comparatively better than Enrich Salons, the difference between Lakme and the other companies is huge.
b. Solution Strategy Proposed
Salons are very personal service and customers are highly loyal to the salons they visit. Industries with high customer loyalty benefit the most from a comprehensive email marketing strategy. They are engaged users and tend to open emails and avail flash offers the most.
The student team has proposed an entire email journey to increase engagement.
Whenever a customer comes to the BBlunt website and subscribes, they are sent automated emails. These emails are “triggered” or sent whenever a customer does any particular action and on particular times or days.
These emails are designed to prompt people to partake in BBlunt’s services first. They are time-triggered and start going routinely after someone subscribes. If a customer makes an appointment, the emails shown are different and if they don’t choose to make an appointment, the emails will be different.
As time goes on, customers tend to forget brands. To solve that, one can send retaining offer emails or retarget them.
3. Veeba – Influencer Marketing and Blog Strategy
Veeba is a sauce and spreads FMCG in India. Founded in 2013 by Viraj Bahl, the brand is known for its low-fat content sauces of all types and flavours. The company offers more than 65 various sauces and brings exotic flavours to India. You can check out the entire sample digital marketing plan for FMCG cosmetic products.
Check out the full Veeba Sauces FMCG Case Study PDF for free
a. Research and Competitor Analysis
Let us first look at the current state of digital marketing strategies in place by Veeba.
Its competitors are Funfoods and urbanplatter. Where Funfoods is a direct competitor providing low-fat sauces and spreads, urbanplatter provides organic sauces and many other varieties of organic products.
The student team has analysed the social media presence of these companies. Veeba performs well on most platforms, but on Instagram, it lags significantly to urbanplatter.
b.Solution Strategy Proposed
Instagram is considered the most effective place to market a product, especially for the 18 – 30 years age group. It is essential to have a good digital marketing strategy which helps you gain traction from social media. Our student has come up with many comprehensive marketing strategies for the FMCG, and for this article, we will look particularly at Influencer marketing and Blog strategies. You can check out the full presentation by clicking here.
Food is a visual experience as well as an oral experience. To sway customer sentiment positively in Veeba’s favour, the student team proposes a budget of ₹5,80,000. They will employ the following food/ lifestyle influencers on Instagram.
Blogs are a great way to spread information to the customer about the product and its possible uses. People who love cooking, love learning about it even more! To capitalise on the people who google search recipes and uses of sauces, the students have prepared a list of blogs that can be written to garner the food enthusiast traffic.
Digital marketing has introduced a paradigm shift in the marketing of FMCGs in India. Gone are the days where one common messaging was sent to the people, instead, marketing has gotten personalised and customer-oriented. Marketing process now involves a great deal of interaction with customers, and hence they need to be kept happy and interested constantly.
Fast Moving Goods or FMCG Industry is a highly competitive one and has multiple brands competing with each other. Due to the high competition, neck to neck pricing, and multiple variants for each product, FMCGs direly to gain the attention of their customers.
Customer loyalty is very important in the FMCG industry. All the marketing trends, User-Generated Content, Online Reputation Management, Automated Email Marketing, eCommerce, Influencer Marketing, Social Media, User-centric content- all these trends of digital marketing aim to distinguish a company to its customers and to gain their loyalty.
In this article, we furthermore learned about 3 FMCG companies – Real Fruit Juice, Veeba and BBlunt and their digital marketing strategies. We discussed their current marketing strategy, competitor analysis and then saw how these companies can tackle their current situation by using different components of digital marketing. These solutions were all created by our students as a part of the various projects they partake in as they train with IIDE in digital marketing.
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