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1. Marketing Club Instructor

3. FMCG Industry
By : Tarek Soliman
Marketing Manager
Al Hilal Trading Co.

4. What is FMCG?
What is FMCG?
Key players in FMCG market
Marketing Strategies for FMCG
FMCG & E-Commerce concept
Factors affecting FMCG Business

5. What is FMCG?
• Fast-moving consumer goods (FMCG) or consumer packaged
goods (CPG).
• products that are sold quickly and at relatively low cost. (Low
Profit Margin).
• Most of the item Replaced from 1 Day to 1 year.

6. FMCG Categories & Products
- Household Care
Laundry soaps, mosquito repellents , dish cleaners etc.
- Food & beverages
Soft drinks, bakery products, tea, coffee, vegetables, Milk etc.
- Personal Care
Oral care, hair care, skin care, cosmetics, deodorants, perfumes etc.

7. Key Player Companies

8. FMCG Supply Chain Process
X
Agent or distributer

9. Major Parts of Communication
Vendor Retailer Consumer

10. Vendor VS Retailer

11. What are the retailers requests?
• Discount %.
• Bonus%.
• Listing Fees$$$.
• Promo Subscription$$$ .
• Shelf rental.
• Merchandising support

12. What Shoppers Think
I’m going mad
with the queues! If I need
to do a small shopping!
They are all
similar!
I wish I could buy
everything I need
for my baby
at one place!
Often it’s difficult
to find quickly
what I need
There are so many
products! It takes ages
to choose!
What Consumers Think
about Retailers?

13. What to do to gain customers loyalty?
• Wow Display.
• Promo goods.(2+1) or (1+1).
• Price discounts.
• POS Materials.(shelf talker or screamer)
• Free Gifts.
• Awareness Campaign.

14. • Visual plan for displaying the products on the shelf.
• Attractive
• Grouping the items in the same category (easily recognized ).
• eye-level is the best position for most popular or profitable products.
• Low-level is suitable for Baby products (peanuts ) easily to see & pick it up.
• Very fast moving items placed with special planogram at check out register or at cachier
• A high-end clothing store would create a very different planogram that encourage
browsing and interaction with displays.
• Prices easily to see
Planogram Tips

15. FMCG display is stores

17. FMCG & E-Commerce Concept
• in 2013, online accounted for less than 1 percent of total sales in packaged food
and about 3 percent in nonfood areas, according to Euro monitor.
• Future Forecast :online will account for anywhere from 10 to 30 percent
of total industry sales growth in the next five years, which equates to a market
opportunity of $15 billion to $50 billion.

18. FMCG & E-Commerce Concept

19. What happens when a customer places an order on
Souq.com?
Order Placed:
Notification
goes to Seller
Seller confirms
the order
Seller packs the
merchandise
and prints
airway bill.
(Attaches it on
the package)
( Souq’s
logistics arm)
picks up the
package from
the Seller’s
store/warehou
se
Package
delivered to
the end user
Payment procedure:
Souq.com accepts online payments as well as cash on delivery.
The payment is first received by Souq.com and the same is
transferred into the sellers account (after deduction of the
commission and handling fee) in 5 working days from the date of
delivery.
Market Place

20. Partnership -Value Proposition
company
Branding
Addition
al Sales
Channel
Reduce
the cost
Flexible
Payment
Systems
Trackin
g
system
- Sell all brands
- Enhanced
visibility to a
new range of
consumers
- Opportunities
for selling Up
- controlling the
prices &WoW
offers
- Clear aged
stock & slow
moving items.
- Promote company
as leading Saudi
Company in the
markets
- All Brands.
- Multiple
payment
options incl.
Cash on
delivery , Credit
cards ,
Vouchers
Saddad & third
party
- Easy to use
system to
(Main Users –
sub users )
tracking &
processing
order, money
transfer ,
prices ,offers
editing .)
- Commission will
be deducted only
one the sell out
Q

21. FMCG Digital Marketing

22. Why Social Media?
• Varied Platforms – Consumers are consuming content on
varied platforms with mobile traffic shooting up by 87% in
2013
• Larger user volume- we are able to target the right
customers according age , sex , location , preference ,etc.
• Higher user engagement – online projects-To identify
problems with consumers and give immediate response and
even take up social issues.

23. Mobile Marketing
• For many of the FMCG giant's mass brands,
the key consumers are located in media dark
areas where access to computers & internet
is not there. Hence, it is using the power of
mobile wisely!

24. Growth Strategies For FMCG

25. 1.Multibrand Strategy
• The main rationale behind this strategy is to capture as much of the
market share as possible by trying to cover as many segments as
possible, as it is not possible for one brand to cater to the entire
market.

26. 2. Product Flanking
• It is basically offering the same product in different sizes
and price combinations to tap diverse market
opportunities.
• The idea behind this concept is to flank the core product
by offering different variations of size and price so that
the consumer finds some brand to choose from.

27. 3.Brand Extensions
• Companies make brand extensions in the hope that the
extensions will be able to ride on the equity of successful
brands, and that the new brand will stand in its own
right in the course of time.

28. 4.Building Product Lines
• Some companies add related new product lines to give the
consumer all the products he/she would like to buy under one
umbrella.

29. 5.New Product Development
• A company can add new products through the acquisition of other
companies or by devoting one’s own efforts on new product
development.

30. 6.Innovations in Core Products
• In the FMCG market, the life of a product is short.
• Marketers continually try to introduce new brands to offer
something new and meet the changing requirements of customer.

31. 7.Long term outlook
• Many companies adopt a long term outlook towards growth in an
FMCG market. In the process, short term gains which might
adversely affect the long term prospects of the company are
sacrificed. “ Long Term Message “

32. 8.Extending the PLC
• Economic conditions change, competitors launch new assaults, and the products
encounters new types of buyers and new requirements are situations in which a
FMCG company try to extend the PLC “Product life Cycle”.
• In the mature stage of the PLC, some companies abandon their weaker products.
They prefer to concentrate their resources on their more profitable products and
quickly develop new products.

33. 9.Expanding markets by usage
 A company usually expands the market for its brand in two ways,
either to increase the number of customers or by encouraging more
consumption per intake.
 The usage rate of the consumers can be increased in 3 ways :
1) It may try to educate or persuade customers to use the product
more frequently.
2) The Company can try to induce users to consume more of the
product on each occasion.
3) The company can try to discover new product uses and convince
customers to use the product in more varied ways.

34. 10.Wide distribution network
• A very simple way of increasing FMCG company’s market share is
by developing a strong distribution network, preferably in terms of
more locations.
• An extensive distribution system can be developed over time, or
the company many acquire another company which has an
extensive distribution network.

35. 11.Monitoring the pulse of the consumers
• Companies spend considerable effort to find out the what, where,
how and when of their consumers.
• Well known companies frequently undertake marketing research to
find out more about their consumers and how to satisfy their needs
and wants in a better manner.

36. 12.Advertising and Media coverage
• Advertising is required to build awareness about an FMCG or
brand which is available in the market but not many people might
know about it.
• Informative advertising figures heavily in the pioneering stage of a
product category, where the objective is to build primary demand.

37. 13.Sales promotion
• Sales promotions offer a direct incentive to buy more in the short
term.
• They are designed to stimulate quicker and/or greater purchase of
particular products by consumers or the trade.(quick wins )

38. KEY SUCCESS FACTOR
38