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digital marketing on FMCG

The impact of digital marketing on FMCG brands in 2023

Digital media is revolutionizing marketing in every industry, but particularly in the FMCG space. Campaigns for any FMCG product have historically relied on selecting the ideal combination of the 4 Ps (Product, Pricing, Place, and Promotion) to effectively affect the target audience’s purchasing behavior. But, customers now make new purchasing decisions, and as a result, techniques intended to influence this process must also change. With a surge in purchases made through marketplaces, apps, and direct-to-consumer companies, Covid 19 only advanced this trend more.

In contrast to conventional media like television, newspapers, and billboards, consumers are increasingly more exposed to the displays of their smartphones and laptops. A rising percentage of customers also like shopping for FMCG items online rather than going to a physical store. According to a research by Google and Bain & Co., internet marketing will have an impact on $11 billion, or two-thirds, of the entire sales of cosmetics and personal care items. For FMCG firms, a solid full-funnel digital marketing strategy is essential in today’s digital world.

The 4 P’s as They Apply to Digital Marketing

For FMCG firms, embracing digital marketing doesn’t mean abandoning the tried-and-true 4 Ps, which have for years served as the marketing industry’s holy grail. Instead, it entails modernizing the marketing mix for FMCG items to fit the times. FMCG marketers now have the opportunity to build relationships with consumers from the outset, something that was previously not feasible, thanks to emerging trends in digital marketing. Because of this, marketers must develop an all-encompassing FMCG digital strategy to interact directly with customers as well as merely influence them.

How FMCG Companies Can Profit from Digital Marketing\

Brands may benefit greatly from including a solid digital marketing strategy into their entire marketing mix.

1. It enhances brand recognition.

The FMCG industry is characterized by a vast selection of comparable items that provide customers with many options. A strong digital marketing strategy helps firms develop a distinctive brand identity, which is one of its largest benefits. This aids consumers in developing a solid opinion of the brand, which in turn affects their decision to make a purchase.

2. It offers a creative approach to showcase your brand.

The product presentation was regarded as one of the most crucial elements that affect purchase decisions in conventional FMCG marketing. Because consumers are visual beings, the more appealing your packaging is, the more likely it is that they will notice it. Digital marketing for FMCG firms may be thought of as a virtual shelf display in a similar way. It enables you to reach your precise target demographic, making your total marketing approach more cost-efficient, making it even more successful than a physical display. This makes it possible for top-of-mind awareness, which may affect purchasing choices. Similar to real shelves, digital marketing enables you to contextually arrange your items. Your items may be promoted using techniques like AdWords Smart Display while customers peruse related categories. If you are a skincare company, for instance, you may place your advertising next to the beauty blogs that your customers are reading.

Because you have entire control over the user experience on it, your product’s own website is frequently one of the finest methods to promote your brand. Anmol, a well-known brand in India’s north and east, needed to update their website. We fully replaced the outdated, lifeless website with a brand-new design that was as lively as their items. Our UX, content, and design teams implemented an unconventional strategy with interactive features, compelling language, and whimsical designs that appealed to all generations.

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3. You can increase ROI and gain consumer insights.

The ability to track every aspect of your marketing activities is one of the main benefits digital marketing offers over traditional marketing. FMCG companies invest a lot of money in billboards, TV commercials, print advertisements, radio ads, and other media. Yet, it is quite challenging to accurately gauge the success of these initiatives. Although speculative numbers can be generated, a firm conclusion cannot be reached.

On the other hand, digital marketing enables you to monitor and evaluate every component of your campaign. Analytical tools enable brands to retrieve data on the quantity of impressions, clicks, conversions, and other metrics. They can also determine precisely which advertisement led the customer to buy the product. You may even get more in-depth customer insights with advanced analytics. This can assist you in producing campaigns and content that genuinely engages your target audience. FMCG companies may improve and lower the cost of their initiatives by easily tracking digital marketing offerings.

4. The use of mobile devices will continue to increase.

Since most FMCG sales are still made offline, mobile phones are the way of the future. Almost all segments of the Indian population now have access to mobile phones and high-speed, affordable internet. Many Indian customers now buy FMCG items online through different applications, and this percentage will only increase. FMCG companies must adapt their digital marketing strategies to the rising number of consumers who want to purchase online.

In India’s Tier 2 cities and small villages, mobile usage is expected to expand at a rapid rate. The digital marketing trends in these tier 2 and tier 3 cities are continuously changing, and FMCG firms need to keep on top of them. Brands are likely to experience significant setbacks in the future if they don’t immediately cement their FMCG digital strategy.

Methods for FMCG Digital Strategy

FMCG firms have access to a variety of channels in digital media to sell their products. These numerous platforms assist companies in achieving a range of marketing goals, from raising brand recognition and developing a strong reputation to boosting sales and fostering customer loyalty.

1. Create robust communities via content marketing

For a very long time, FMCG brand marketing strategies were centered on the one-sided promotion of their products. Yet, current FMCG digital marketing trends are shifting the emphasis to producing user-centric content that really adds value to the lives of customers. You may encourage discussion among your customers and establish enduring communities by producing educational material. Building a devoted customer base requires a strong community. Using a variety of effective and inventive content marketing techniques, digital marketing may assist grow the community surrounding your business.

The creation of SEO-friendly content is another aspect of content marketing that is crucial for FMCG firms. It is essential to incorporate both a solid SEO strategy and content amplification tactics since doing so will increase consumer awareness of your business by bringing customers to your website. In addition to helping customers discover you when they do a search, keyword-optimized content also contributes to the trustworthiness of your brand in that industry.

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2. Boost online visibility via social media

Undoubtedly, Facebook is one of the most essential digital marketing forms of media. You can identify your target market, improve your marketing plan, and even increase conversions with the use of sophisticated social media analytics tools. You may broaden your target demographic and reach them with your campaigns by using the Facebook custom audience tool. FMCG companies may use Facebook to learn more about consumer behavior.

Yet, neither you as a company nor your customers should limit their use of social media to Facebook. To have the most impact, digital marketing for FMCG firms has to be integrated across a variety of channels. This includes the advertisements that appear before YouTube videos, Twitter campaigns, Instagram posts, and much more. Even SEO-friendly content is a part of effective FMCG digital marketing, ensuring that your brand appears when customers look for a corresponding requirement. Google AdWords are yet another crucial channel for FMCG marketing, as more FMCG items are appearing online.

3. Make use of video’s ability to make your brand stand out.

One of the most popular types of material now is video. This resurgence in interest in video material is seen in the tremendous rise of websites like YouTube and TikTok. Because of this, a solid video strategy should be a part of any effective digital strategy for an FMCG company. Using videos for your product has a number of benefits, one of which is the limitless creative potential it provides.

4. Engage with your audience frequently to promote brand loyalty.

FMCG advertisements have historically been one-sided, with firms telling customers about their products through print, radio, and television adverts. Advertising was often done to promote new goods or services. It is pricey and only allows for one-way communication in conventional media. Brands were unable to regularly interact with their customers

Digital media is fundamentally altering all of that. When it comes to increasing user engagement, digital marketing clearly outperforms conventional marketing. The goal of current FMCG digital marketing trends is to make your brand a constant presence in the lives of your customers. Brands can always be relevant by producing shareable content, useful information, and meaningful engagement. This aids customers in remembering your brand while making a buying choice. For instance, Whole Foods used chatbots as part of their digital marketing strategy to engage customers and point them in the direction of making a purchase..

5. Enlarge your clientele using influencer marketing

One of the most significant digital marketing trends in FMCG is influencer marketing. Your company may leverage influencers to reach their enormous fan bases and raise customer awareness of your goods. Influencer marketing is also incredibly beneficial for FMCG businesses since customers are more inclined to trust your brand when it is recommended to them by an influencer they respect.

6. Drip email marketing

With FMCG items, a one-size-fits-all marketing strategy is no longer effective. While drip emails in particular are a game-changing approach to tailor your marketing strategies, email marketing in general keeps your customers informed about the newest items and discounts. Drip emails, sometimes referred to as automated emails, are a series of emails that are delivered to customers in accordance with a predetermined set of guidelines. For instance, a customer will receive an email when they initially sign up, another if they add items to their basket but then decide not to finish the transaction, another after they make a purchase, and so on.

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One of the most efficient lead nurturing techniques is drip email marketing. These automated messages can reach customers at various phases, eventually influencing them to make a purchase. This strategy can aid FMCG firms with their digital marketing efforts by influencing consumers’ purchasing decisions. Automatic emails that are sent when customers leave their shopping carts are very successful since they encourage the customer to finish the transaction. You may retarget customers who have already bought your items using drip emails. According to research, customers who have previously bought your items are more inclined to do so in the Future.

7. Digital Product Selling

While this may seem obvious, not many FMCG companies sell their products online. Even though FMCG commercials are presented on digital media nowadays, their marketing efforts are still geared at influencing the consumer’s in-store purchase choice. Yet, with the introduction of several websites that allow you to purchase FMCG items online, a rising number of people are beginning to shop online. In this situation, even though a buyer has every intention of purchasing your goods, if it is not available online, they will prefer a competitor’s offering. To improve sales, FMCG companies may offer their products on Amazon, Facebook, and other comparable websites.

Selling things online also allows you to contact customers outside of your own geographical area. A local cosmetics firm, for example, may begin selling their items nationally by making them available online. This subsequently broadens the consumer base for FMCG items, which is a critical aspect in growing sales. Selling online through Amazon and other sites is a fairly simple approach for FMCG firms to grow their online presence.

  1. Run regional language campaigns

Tier 2 and tier 3 cities are the next significant growth opportunity for most FMCG firms. Meanwhile, the majority of customers in these places are becoming increasingly digitally connected. While the number of English-speaking web users has more or less peaked, regional language users will only increase from here. This has been greatly aided by the simultaneous proliferation of mobile phones and internet access in India’s smaller towns. According to a Google and KPMG research, the number of non-English speakers accessing the internet will increase by roughly 18% every year.

Furthermore, 99 percent of these individuals will predominantly access the internet via their cell phone. This presents a big potential for FMCG firms to employ digital marketing to reach this new group of customers. One of the primary elements influencing FMCG sales in tier 2 and tier 3 cities will be the rise of localised content online.