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FMCG Sector: Innovation in Product Development and Marketing Strategies

FMCG Industry / Sector

In the field of the FMCG sector keen competition among the industries persists and to achieve this goal strategies of marketing plays a great role. Unique and innovative methods of product development are a continuous process in this industry to keep ahead of other competitors in the market. From big multinationals to small-scale industries, are engaged in producing FMCG goods. The market is lying all over the globe. The online selling process has become very popular and big multinational companies are utilising this opportunity to a large extent.

FMCG goods are single-used commodities with high inventory turnover at a cheap price. Mainly household and personal used products occupy half of the FMCG market. The FMCG sector has an important contribution to our country. It possesses the 4th position among the largest sectors of our economy. In this industry, goods are produced and packaged then sent to distributors or wholesalers for distribution to retailers, from where commodities are sold to consumers. Online purchase is becoming popular among young aged customers. Fast-moving consumer goods have high demand in the market because they are needed in daily life and consumed within a short period. The growth rate of the FMCG industry is increasing significantly in India. Many big international companies having renowned FMCG brands are competing with Indian brands in the national and international markets. Indian products are good in quality at a cheap price and are popular in the domestic and global markets. The continuous process of product development and packaging in innovative manners according to customer demand is inevitable in the modern era. Studies and experiments on products and marketing are going on by experts to fix up new strategies to increase turnover.

Innovation in product development and marketing

We can see a continuous inflow of new products in the FMCG market because the consumer market is always fond of new products. To attract consumers it is necessary to innovate new consumer goods with additional advantages in attractive packaging. Buyers want to get new products instead of old ones with new benefits. Innovation in product development is inevitable. Otherwise, your customer will shift to other products and your relationship with them will deteriorate. New product innovation increases the market. FMCG products should be improved on a regular basis to keep the customers satisfied, which will create a good customer base. In the present situation, innovation of products can be done by applying modern technologies. To keep consumers' databases in digital form which will help the company to get the ready references of customers using various types of technological processes. The most modern tool Artificial intelligence is being used by many companies to know their customers. To innovate new products or to improve existing products the company has to make a project and start a market survey to ascertain feedback from the targeted consumers. Makes an innovative plan and produces a specimen product. Being assured about the quality of the product makes its marketing plan. Then launches the product. Big companies make brands to establish product goodwill and individuality. Innovation in making a brand creates a separate attraction among the customers resulting in more sales than an unbranded commodity. Online sales have minimised the distance between cities and villages and raised the demand for FMCG goods. Sales through e-commerce portals are becoming popular. Digital marketing processes are being used by FMCG companies to get potential buyers

through social media platforms. Marketing of FMCG goods is also done by messages and emails. Distribution of products is also a key factor for marketing development. The supply of products should be balanced in accordance with the market demand. Short supply may harm the customer base.

Challenges and opportunities of FMCG companies

The world economy is going through a global recession. The effect of this depression has adversely fallen on the FMCG market. In India, we are in better condition with a positive economic growth rate and our FMCG market has a positive growth. But some reasons like a decrease in purchasing power, an increase in medical and educational expenses, and continuous price increases have lowered the demand of the FMCG market. India is a big market for FMCG goods and to grab this market FMCG companies from all over the world along with domestic producers are selling their products at the most competitive price with a low return. On the other hand, the cost of production and overhead costs are going higher day by day. Companies with small capital bases are facing great challenges.

World-class human resources are available in our country with a moderate payout structure. Experts in the field of management, technology, engineering, sales, etc. are available here. There is no scarcity of human resources. The demand for FMCG products is ongoing, creating an opportunity for the producers. Through digital platforms and e-commerce, producers are directly reaching out to customers to know their requirements and make future planning. As the producers can directly reach the end users, they can minimise overhead costs and make additional profit. Sometimes they sell products to the buyers at a discount making a high turnover. Transportation of FMCG goods has become easier now by connecting all parts of our country with well-maintained roadways and railways. The Indian FMCG market can be categorised into three major segments namely household and personal care goods, healthcare items, and food and beverages respectively.

The FMCG industry is one of the largest sectors in our economy. Huge manpower is engaged directly and indirectly in this sector. The products are consumed in a very short period yielding a continuous demand. Indian FMCG products are good in quality with a cheap price. Our country is one of the largest exporters of FMCG products. Indian FMCG companies are engaged in continuous research works and market surveys to produce high quality and trending world class commodities.

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