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FMCG refers to fast moving consumer goods also known as consumer-packaged goods. These are products whose demand is high since they are highly consumable. Fast moving consumer goods have a quick turnover. The cost is relatively low and consumer generally put little thought when purchasing the products. In comparison with other products, consumers easily make the purchase decision. On the other hand, retailers who have a greater role to play in selling the fast moving consumer goods report small profits though the uptake of these products is very high. The profitability of retailing the fast moving consumer goods is observed through the immense volumes that move in short periods. This allows the cumulative profit to be immense.
The Fast moving consumer goods laundry products are products that consumers buy to keep up with hygiene, an important aspect of their personal lives. Hygiene refers to sanitary and general cleanliness products such as soaps, detergents, toothpaste, diapers, sanitary pads, tissue paper, and other laundry products. The uptake of these products as earlier mentioned is high. The volumes sold daily or within specific time are very high. Though the profit margin is negligible, the cumulative profit from voluminous sales sums up to an attractive profit to the retailer.
The products that fall in this category include washing powder, detergent, bathing soaps, sanitary pads and gels, hand wash, and toothpaste. These products are at a high demand and the retailer is always making progress selling and displaying them to increase consumer awareness (Tauber, 1995). Brand identity is what drives sales in the industry with consumer more concerned with the brand positioning and identity after identifying with the manufacturer. In retailing, retail management struggles to keep consumers concerned with incentives and corporate social responsibility even when their role is to represent the manufacturer. Upon convincing consumers of the greater role of the manufacturer and his product, retailers have to go the extra mile of convincing the buyer about the quality and other benefits of buying from this particular manufacturer. The promise of better things and an image after associating with the product is what guarantees a returning customer to the retailer.
Washing powder as a key Fast moving consumer goods
Every day, consumers are buying washing powder to clean up their clothes. The advent of multipurpose washing powders has given new impetus to washing powder maker’s effort in tapping on the laundry market. Washing powder is in high demand today with millions of households buying a sachet of over 500 grams every day to clean household equipment and clothes. Unfortunately, the competition has remained stiff with older industry players remaining dominant industry players. As a fast moving product, new entrants in the industry can improve on the brand image as well as quality to tap on the ever-growing market. The truly profound is how this can be achieved effectively.
The demand for a fair price in the fast moving consumer goods has continued to be principal in determining consumer behavior with relation to the uptake of the products. Cheap products have found their way to many households with many others of better quality failing to place a foot in the threshold. Improving on the product portfolio is core in making the product attain a great image that will not only impress but also please the consumer enough to make him/her connected and committed to the product (Buchanan, Simmons, & Bickart, 1999).
There are several ways of increasing the product portfolio. One, increasing the product line will help a great deal. A product line means a variety of products from the same brand serving different clusters of the market. A variety means the clientele will have a choice to choose from. Another way of upping the stakes of a brand is marketing. Effective marketing entails finding effective means of positioning the product and subsequently raising the level of awareness about the benefits of using the product. Corporate social responsibility is one of the untapped methods of consolidating a market. This aspect of marketing is essential in making the market to identify with the manufacturer. Identifying with the firm is very important. Many manufacturers want consumers to identify with their brands rather than with the company, which deters consumer relationship with the company. However, companies that practice corporate social responsibility have found more consumers identifying with them and subsequently with the products. As if to say thank you for the role the company plays in social governance, the consumer will keep buying from this company. Consumer loyalty is also observed when companies practice corporate social responsibility.
Improving the quality of the product and properly advertising this improvement is another measure. Quality can involve improving the overall capacity of the washing powder. Increasing its ability to remove stains and make clothes whiter can improve the brand image. Advertising this change/improvement can impress the clientele quite well and bring very good results.
The product growth in the market should be based on various aspects of marketing and establishing a market-share. The product will be developed to meet consumer expectations through aggressive marketing campaigns and brand positioning to make the washing powder the choice powder for many households. The range of products like hand-washing gel, laundry washing powder, utensils washing liquid, and carpet wash can bring about a sense of a new range of unique and reliable products that consumer can affordably own and on the long-term, consistently buy these products.
The reason why increasing the product range is essential without a marginal price change is mainly to consolidate the market while increasing its range. Consumers will have more to chose from while getting value for their money. This growth strategy will ensure consistent growth and development of the brand.
Buchanan, L, Simmons, C, & Bickart, B. (1999). Brand equity dilution: retailer display and context brand effects. Journal of Marketing Research, 36(3), Web.
Tauber, E (1995). Why do People Shop? Marketing Management, 4(2).