Industry Overview

• The fast moving consumer goods (FMCG) segment -4th largest sector in the Indian economy.

• The market size of FMCG in India estimated to growto US$ 74 billion in 2018.

• Food products is the leading segment, accounting for43 per cent of the overall market. Personal care (22per cent) and fabric care (12 per cent) come next interms of market share.

Source: http://info.shine.com/industry/fmcg/6.html

Why Social Media?

• Varied Platforms – Consumers are consuming content onvaried platforms with mobile traffic shooting up by 87% in2013

• Larger user volume – To come in contact with their targetconsumers. Consumers, who are largely digital natives.

• Higher user engagement – To seek feedback on TV campaigns,invite suggestions to name their upcoming brands, to identifyproblems with consumers and give immediate response andeven take up social issues.

Source: http://articles.economictimes.indiatimes.com/2014-04-14/news/49126100_1_digital-media-gsk-consumer-social-

media

• To leverage celebrities to scale up conversations

• To change Brand Perception

Why Social Media?

Current Trend Among FMCG Companies

• Overall, share of Digital Mediarisen to 7.9% in 2014 from 6.9%in 2013 amongst companies

• Digital campaigns – 4% of FMCGcompanies’ marketing &advertising spends, howevergrowing rapidly compared tospends on traditional media.

• FMCG companies increaseddigital spends from 30% to 50%in 2014.

Source: http://businesstoday.intoday.in/story/fmcg-companies-are-betting-on-digital-media-for-

advertising/1/207227.html

Trend Initiator

• One of the earliest campaigns that encouraged FMCG

brands to take digital seriously was almost four years

ago, when Nestle synced its print ad for Nescafe

coffee with social media and asked people their

feedback.

Naming a brand through User Suggestion

• Company Danone chose the brand name of its vitamin-enriched

flavoured water after interacting with consumers on social media.

• The company talked about brand on various social media platforms

and asked consumers to give their feedback. They received over

50,000 responses and that's how the name 'Blue' came about.

Immediate Addressing to a Consumer Problem

Changing Brand Perception

• Cosmetics maker Revlon hired ad firm VML Qais to launch adigital initiative.

• Revlon's target audience is younger women, but the commonperception among them was that the brand related to the oldergeneration. Thus, to make the brand look contemporary, digitalmedia became imperative as most young women are digitalnatives.

• Lipstick and other make-up variants that the companylaunched after their digital campaign boosted sales by nearly20 per cent.

Oreo’s Successful Digital media Campaign & its Impact

Revlon’s Successful Digital Media Campaign & it’s Impact

Leveraging Celebrities

• Frooti's association with

Shahrukh Khan helped in

scaling up conversations.

When the campaign hit social

media, the superstar engaged

with Frooti fans while they

shared their prized Frooti

memories. The activity helped

amplify the brand's user

generated content.

Source:

http://articles.economictimes.indiatimes.com/2014-10-

29/news/55558711_1_maaza-frooti-nokia-india

SRK met the Frooti Contest Winners

Digital Media first, Traditional Later!

• Nowadays, Companies roll out their ads on Digital

Media first, like over Youtube or Facebook/Twitter

before releasing it more widely.

• This is because “they are going, where consumers are

going.”

Nescafe’s ‘Netizens First’ Strategy

• With 2,93,639 (andcounting) views onYouTube, the ad film forNescafé - coffee brandfrom Nestlé - fetched afair amount of attentionon Facebook and Twitter.It broke online onSeptember 5 and waslaunched on TV later.

Iodex Pain Reliever Ad Goes Digital First

• GlaxoSmith Kline

• Consumer also premiered

its ad for Iodex pain balm

featuring badminton

player Saina Nehwal on

Facebook and YouTube a

week before releasing it

more widely.

Mobile – A Scalable Medium for

Advertisers!• 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!

• Hindustan Uni-Lever & Reckitt Benckiser have

tapped this device successfully.

HUL launched the most successful

Digital Campaign• HUL launched a free mobile radio entertainment

channel called Kan Khajura Tesan. To access thecontent, a mobile phone user gives a 'missed call' - thecall here gets disconnected automatically after tworings - on a given number. The user is then called backand gets to listen to songs, jokes and, of course, HULadvertisements. The idea behind the campaign was toreach out to consumers who do not have access to TV,radio or the print medium but have a mobile phone.

Within 7 months, the radio station reached out to more than 9 million subscribers and HUL ads

had been heard 85 million times. HUL now plans to roll out the channel in other regions.

Reckitt Benckiser believed in the power of

Cell Phone too!• In an activation focused on media dark sections,

Reckitt Benckiser’s Dettol leveraged mobile in a bigway to reach out to a wider audience. As a part of thecampaign, there were contests on mobile phones(feature and smartphones) and VAS targetingconsumers across six states. The campaign reachedout to 8 million users every month through the mobileplatform.

Conclusion

• As per reports and various surveys, younger people are using

recommendations from their peers about products and services in

order to make rational purchase decisions. Shoppers aged 18 to 24

are 174 per cent more likely to use recommendations on social

media than shoppers aged 25 and over.

• Considering that consumers today are Digital Natives, increasing

digital media spends would totally pay.

“Social Media Marketing is about

identifying the essence of Engagement.”

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