FMCG - what is it? FMCG market and its marketing secrets

Have you noticed how standing in the long queue in the supermarket involuntarily pull your hand to the tray located at the ticket counter behind a chocolate bar or chewing gum that are safely sent to your food basket? At this moment, without realizing it, you are being led to a marketing move and thereby speeding up the turnover of funds in the FMCG sphere. "What is it?" - you ask. Goods that we all come across regularly and constantly need. This question will help you answer the question about this product.

How to recognize FMCG products?

From English, the abbreviation is translated as "fast-moving consumer goods" (fast mooving consumer goods). Simply put, this is something that we buy constantly and very often due to rapid consumption. They are characterized by three main features:

• low cost;
• Fast implementation;
• Use for a short period of time.

All products that fall under these parameters are FMCG. What kind of products are these? First of all, products with limited shelf life (dairy, bakery products) and quickly consumed (cigarettes, drinks, chocolates, alcohol). In addition, this group includes all household chemicals (powders, toothpastes, soap) and cosmetics, paper and plastic utensils, all sorts of batteries, light bulbs and so on.

FMCG market features

Unlike durable goods, FMCG is much cheaper, and therefore, in order to earn, companies in this area have to constantly maintain high turnover. The frequency of acquiring goods of daily demand at a sufficiently low cost is the basis for obtaining a good profit.

At the same time in FMCG, as in no other field, there is the highest and stiffest competition for a place in the sun. That's why you can not make a mistake in choosing the right marketing strategy, price policy, you need to keep your finger on the pulse while searching for new products for the market.

Supermarket is the best place for FMCG

The most popular in the implementation of this kind of goods was won by FMCG's most popular shopping networks, or simply supermarkets. It is these self-service stores that have been able to efficiently realize the products of everyday demand due to the following components:

• Wide range of goods;
• Relatively low cost of products;
• All the main categories of goods are always available (continuous replenishment).

In addition, the competent planning of the placement of goods throughout the supermarket (a thoughtful marketing strategy) stimulates the high activity of consumers. It is within the trading network that the principle of impulsive purchases is most easily realized. Have you ever wondered why a showcase with chocolates, candies and chewing gum is always located at the cash desk, and shelves with bread usually stand in the back of the store (to get to them, you can involuntarily have to walk past other goods)? All this is not an accident, but a marketing move, very popular in FMCG. What does this give? The opportunity to increase sales and earn in conditions of low prices for products.

Features of marketing policy in the FMCG area

To the features characteristic for marketing in this area, it is possible to carry:

• A continuous increase in turnover (when each individual commodity is inexpensive, high profits can only bring a significant amount of sales);
• The most important part of the work is working with the mind of the consumer (it is important here to cause buyers a steady and often unconscious desire to purchase goods, create a need for it);
• Two things are important - the place of the layout of goods (shelves in the supermarket) and the loyalty of consumers (you need to be able to attract their attention, gain confidence).

Thus, in order to survive in the conditions of a wide variety of consumer goods and high competition in this area, it is necessary to work a lot and continuously, constantly being in search of new products for realization and new marketing secrets, to maintain an acceptable price level and increase trade turnover.

The realities of the FMCG market

In America and Western Europe, the FMCG market has existed for a very long time and is considerably ahead of Russia in terms of development and organization. The category FMCG in Russia has become more or less formed in the post-Soviet period. At the same time, MARS became one of the first companies that started to conquer the Russian market of fast food products. However, it still occupies one of the leading positions in this field. Everyone knows Snickers or Bounty bars , Dove chocolate and Skeetles sweets. Even our pets consume their products, weaving feed "Whiskas" or "Pedigri". Buying goods of different groups and brands, we do not even think that in reality many of them are just different sides of one whole. A number of other products sold under different brands, we can say that most of them belong to one big brand ("Nestle", "Wimm-Bill-Dann", "Coca-cola"). This suggests that in this market there is almost a monopoly, when several of the largest companies occupy the bulk of it. Small firms in these conditions have hard times, but some of them find their niche and successfully exist in the modern FMCG market. What is this, if not a successful marketing policy that helps win (or win) the hearts of consumers?