HOW TO CREATE A PROMOTION STRATEGY FOR FMCG? SHORT INSTRUCTION WITH EXAMPLES

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Creating an FMCG promotional strategy is perhaps the most challenging task for a marketer. These are mass-produced products with a blurred target audience. The age of the buyer? From toddler to senior citizen. Social status? Single, family-oriented, no children, with children. Consumers have no loyalty to a number of products, goods are inexpensive and quickly disappear from the shelves.

In such an environment, FMCG marketing is obliged to convey to literally everyone: this is the product you should buy. So how do you achieve your goal? We offer a short promotion manual with examples.

Keep it even simpler! It is enough to order a promotion strategy in Kiev and Ukraine from branding agency KOLORO!

Still from Strangers Things / Netflix

FMCG advertising strategy: market segment peculiarities

FMCG stands for daily demand goods: food, household, cigarettes, low-alcohol drinks. This includes all the things we usually see on the shelves of chain supermarkets. Such items are quickly used and the customer regularly visits the store for replenishment.

Making a promotional strategy in this segment means:

Form the need to purchase the product;
to carefully consider and work out the entire chain from production to the customer;
vying for retailers’ attention and customers’ attention;
think through trade marketing – on-site promotion, indoor advertising and promotions;
advertise the brand first and foremost, including in online channels.

The promotion strategy is twofold. Mass advertising does not act selectively and is more like information noise. But it also requires a constant search for new techniques.

Case: Pancake chain International House of Pancakes (IHOP) announced on Twitter in 2018 that it would soon change its name to IHOb. No clarification was forthcoming. Mentions of IHOP soared 6.477% the day after publication. Then there was an explosion on social media: people were wondering, what the hell is a “b”? Bankruptcy, bitcoin and bacon were at the top of the assumptions.

The company held a pause and occasionally joked back at the remarks. But more often than not, she offered to “be patient” a little longer before the clue. The hashtags #IHOP and #IHOB together garnered more than 297 million mentions in the week before the mystery was revealed on Monday. The hype didn’t subside even after the company announced on June 11 that the “b” stands for “burger.”

This event shows that people love solving puzzles and sharing ideas online. The nebula element can be a risky move. But is able to incorporate a new brand into the social media hype for little money.

In June 2018, however, there was another similar story – a giant Amazon delivery as if it were from the set studio of “Jurassic Park.” The company drove a box around town from Costa Rica, where the plot of the movie has a dinosaur park. People were wondering what might be hiding inside the box. The campaign was aimed at telling about the lack of borders in Amazon’s capabilities – able to deliver anything anywhere.

How to create a promotion strategy, taking into account the peculiarities of FMCG products

Daily demand goods have these characteristics:

familiar goods are bought quickly, without much thought;
they are characterized by spontaneous acquisitions;
they have seasonality;
Consumers develop consumption patterns;
high demand, which generates a lot of competition;
goods cost little and are easily replaced by similar ones.

In addition, we need to consider the nuances of not only the FMCG category, but also subcategories: what do people buy in retail stores and what do they buy in specialty stores? What’s your shopping budget? What influences the choice of point of purchase?

Market segmentation and customer preferences can be segmented based on six parameters:

regularity of purchases – by day of the week or time of day;
type of outlet – chains, small stores, specialized outlets;
cost of procurement;
how they choose the place of purchase (proximity to home, road junction, assortment, service and promotions);
planned or impulse purchases;
product selection (by brands/manufacturers).

Case: Body care cosmetics company Temple Spa doubled its profits from mobile commerce by analyzing consumer preferences. This English brand is only distributed at Harrods and online, and is also available at premium hotels and spas in Europe. The company found that predominantly items were purchased via mobile and tablets.

Solution: focus on perfectly customizing the user experience of online shopping. The app has been moved to a faster platform plus created an improved intuitive interface on the website. As a result, sales from mobile grew 106% year over year.

FMCG advertising strategy – tools and findings

What do you need to do to make your way in the FMCG world? Marketers use tools such as:

new approaches in advertising to make the brand/brand recognizable;
maximum availability and presence in all retail outlets;
Merchandising: when new products are launched, suppliers negotiate with retailers to have their products placed on branded shelves;
package design;
promotions, prize drawings, discounts.

A still from Marvelous Mrs. Maisel / Amazon

Case: Burger joints are often characterized by interesting promotions. For example, in June 2018, KFC’s “healthy burger” promotion strategy was sensationalized on the networks. And in January 2019, Burger King’s mass-liking of old posts by famous bloggers.

In 2018, KFC UK & Ireland wanted to promote the Louisiana burger – just as the country was gripped by healthy eating fever. Fast food is associated with anything but healthy, and previous campaigns have been unsuccessful.

Marketers researched the “clean eating” phenomenon and found that such meals are most often associated with joylessness. Plus, they researched all the brand mentions on social media and created the KFC Desire Index. Nearly 7% of brand discussions were about how badly one wants a forbidden burger. Not only that, but the main drivers of the conversations were “clean food” advocates.

Marketers suggested that KFC should make a promotion strategy opposite to the previous ones: break the pattern and not oppose but join the healthy eating movement. They created a fake burger and a fake blogger Figgy Poppleton-Rice with 40,000 subscribers (also fake).

Social presence included Instagram, Twitter, and a blog. Figgy posted endless “clean” recipes before and during the campaign, gave lots of tips with lifehacks, and even promoted her cookbook.

Then came the key ad – a post with a “clean” burger made with cauliflower, cooked chicken, almond yogurt, ice cubes and other condiments.

https://platform.twitter.com/embed/Tweet.html?dnt=false=twitter-widget-0=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%3D%3D=false=false=false=834821051368472578=ru=https%3A%2F%2Fkoloro.ua%2Fblog%2Fbrending-i-marketing%2Fkak-sozdat-strategiyu-prodvizheniya-dlya-fmcg-korotkaya-instruktsiya-s-primerami.html=804d2d6c695f05aa3b5c4aec016809893a616cc5=light=2615f7e52b7e0%3A1702314776716=550px

In 48 hours, the image garnered over 12 million unique views. Of those, 160,000 expressed disgust at the new burger. Only £5k was spent on media – a relatively low cost promotional strategy. Figgy Poppleton-Rice became a superstar by garnering 21% of google queries on clean eating.

A test shot followed 5 days later – a two-minute video of a “clean burger” recipe and the appearance of a real Louisiana burger.

The viral quickly became KFC’s most popular video, garnering over 10 million views. It was also covered in press around the world, and the campaign’s reach reached more than 27.8 million worldwide. And “Louisiana” has become the best-selling limited-edition offering.

The second case is a campaign from Burger King that received a mixed response. The brand gave massive likes to posts by top opinion leaders and Youtube vloggers published in 2009-2010. Naturally, they were all surprised and posted screenshots to the same social networks with the caption “What the fuck?”

It turns out that this is how Burger King decided to promote the return of Funnel Cake Fries – and this dish first appeared on the menu just in 2009. This came to light after the network posted “Some things from 2010 are worth revisiting – like your old tweets. And Funnel Cake Fries.”

Opinion leaders were outraged because no one suspected they were taking part in a promotional campaign. Nevertheless, the brand achieved the necessary resonance on social media and press coverage. Importantly, this is an example of a small investment case that a brand with smaller budgets than Burger King can pull off.

Order promotion services and retail branding in KOLORO agency!

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FMCG trends for creating a promotional strategy

The rhythm of consumers’ life is getting faster and faster, so even cooking food is urgent. More food delivery services Ubereats, Grubhub, Deliveroo are emerging. Supermarkets offer a range of ready meals from mixed vegetables to full lunches. The “TV dinners” of the year before last have been replaced by fresher and tastier foods.
Health is an important consumer preference. Low-salt, skim and sugar-free products have always been available in specialty boutiques, but have only recently begun to trickle into “normal” supermarkets. Consumers believe that eating this way will improve their health. Soy milk, lab-grown meat and soft drinks are becoming more common.
Caring for the environment. Consumers are paying more attention to the harms of FMCG and similar manufacturing. “Organic” and “local” brands are becoming more popular. The same meat, fish, and plants get the prefixes “antibiotic-free,” “grass-fed,” “free-range,” and “free-range. Product packaging also influences choice – customers increasingly prefer plastic-free designs.
It’s the impression that counts. The experiential (impression) is more important than the product itself. FMCG manufacturers are launching more products with personalization – like Coca-Cola cans with names or Doritos Blaze snacks with extreme flavors. Such techniques inspire people to share their experiences online and generate tracks with friends mentioning brands. Which, in turn, increases producers’ profits.

FMCG marketing is sometimes like walking a tightrope over a precipice. But the effort put in pays off a hundredfold. It is enough to competently invest a small budget – and a good profit goes into the business.

Get a quality user experience! For this purpose. order a promotion and internet marketing strategy from KOLORO branding agency. Our team knows where to find and what to attract your target audience with