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FMCG Industry

by Mr. Y C Narendrababu, Empanelled Consultant, See Change Consulting

FMCG INDUSTRY – Is it a preferred industry? Consumer goods industry, which was what refered once, today is called, as FMCG, which is known as “Fast Moving Consumer Goods”. The workd fast denotes it is one of the biggest industries in the global arena and has facts to substantiate this industry stands apart, when it comes to career choice.

1. Do you think, FMCG , delivers what consumer wants?

The concept of “Want Satisfying” products are highly consumer researched only in FMCG, and most branded FMCG companies roots are more than a century, and their sustainability is because of on going research. Understanding consumer buying behavior and altering the product mix of the product and relaunching with a new features. FMCG uses the feature FAB ( Features , Advantages, Benefits) to the largest extent than any other industry does. To quote Sam Walton, founder of “Walmart” “High expectations are Key to everything”.

2. Do you Think FMCG, wants to think different and better ?

Is there any industry in the globe which handles several billion accounts across the globe, spread over entire geography of each country ? Is there any industry where maximum decisions are taken by the housewife, in buying the products ? Any employee in FMCG always hears a lot of global success stories, be it Coke or Pepsi, or you call it “Cola Wars “ and both the brands are successful. Global success stories influence the consumer shopping. So there fore “saga of innovations” is on going for FMCG, always developing to meet the challenge of changing consumer needs.

3. Do you think FMCG is evolving and changing to the needs of the consumers?

Its always an exciting moment in FMCG, and reason being 50% of brands on the 100 list twenty years back, have already been replaced by new names today. Product innovation leads to higher sales and higher sales leads to career progression. Great industry to be in.

4. Does Recession affect FMCG industry ?

Housewives / consumers will always buy FMCG products, since clothes have to washed, one has to bathe, brush their teeth, pains to removed through balms etc. FMCG industry manages to to be resilient to recession. Just consider Washing

“SEE THE CHANGE” eZine from the Desk of M K Anand, HP: +91 94440.25283

Email: anand@seechangeworld.com; Twitter: @mkanand

“SEE THE CHANGE” – Monthly eZine

machines, two wheelers being bought in recession, normally purchases gets postponed. This is the only industry which manages fairly well with the financial storm during recession. Eventually loyalty of the employees continue

5. Does employee feel happy in FMCG industry ?

Just as a Consumer is a confused animal with too many choices of brands in FMCG, even employee feels secured in this industry since it is able to weather the storm of recession, growth is faster and opportunities are within the organization and outside the organization. Number of companies in FMCG sector is highest than any other industrial segment in the world. So the critical need for FMCG companies is retention of employees.

6. Do you think the biggest brands with highest brand equity exist in FMCG ?

When you talk about “top of the mind re-call “ of many brands, try doing consumer research on this. Many consumers will spell out atleast 60% of brands which are associated with FMCG. So therefore obiviously these brands have widest reach among the young and the old. Products in this industry are not just in your bathrooms and kithchen, but have moved to Drawing rooms, Study rooms and travel along with you when you make a trip outside your hometown.

7. Do you think success of FMCG depends on Distribution ?

Distribution is the key

• Focus on width to get the consumers proximity

• Increase the depth, which increases business volume

• Proximity by way of affordability to the consumers – Variants of products with

low and high prices to match all types of consumers.

• Adding Channel partners, who are eventually are business Associates and

partners in progress.