Brand Positioning is the Mantra to Success in the Fast Moving Consumer Goods FMCG Sector Authored by Mr Dawinder Pal Head of Marketing at Bikano
The
FMCG sector happens to be one of the toughest and volatile categories to
succeed, often regarded as modern branding’s birthplace. The FMCG market in
India was valued at $110 billion in 2020. The overall market size of FMCG had
nearly tripled as compared to 2012. Furthermore, by 2025, the market is
expected to grow to 220 billion dollars. There are numerous brands in India
catering their products to millions of people across the country and generating
immense capital. However, to become recognised as a household brand, it takes a
lot more than just good packaging and 'nice' logos. Brand positioning needs
synchronized efforts of different moving parts to create a perception in the
marketplace that drives the business forward.
What
is Brand Positioning?
Brand
positioning in simple words can be defined as the place a brand wants to own in
the target audience’s mind. It’s about identifying, exploring and refining the
distinctiveness of a brand through effective positioning strategy. The most
important aspect of positioning the brand is that it allows a company to be
distinct from its competitors which helps communicate value, increase brand
awareness and justify the pricing. All these factors impact the bottom line in
a significant way.
Strategies
that Act as Allies to Brand Positioning Efforts
Successful
brands incorporate different strategies to create authentic customer
experiences around their products. These brands provide their target audiences
with a compelling reason to buy through effective communication and reaching
out to them. While deciding to position the brand in the marketplace, there are
certain strategies that can be adopted to stay ahead in the race and drive towards
increasing consumer engagement.
Creating
Brand Loyalty
At
the heart of every successful FMCG company lies returning customers. This is
especially true for the FMCG segment where products are usually consumed
frequently and quickly. For long term success, brand loyalty is critical that
helps ensure consumers become tunnel-visioned concerning a brand. To drive
brand loyalty, many companies make the mistake of competing alone on price. It
is important to understand that consumers aren’t just looking for the cheapest
products. Typically they look for the right blend of value and quality. Value
is not only about price but involves a complex mix of the brand promise, brand
culture, brand values, corporate social responsibility, customer experience,
etc. that all add up to enhance the perceived brand value.
Aligning
with the Needs of the Target Audience
While
this may sound odd but to become a household brand, it is desirable to be
appealing to the right target audience instead of a broader audience. Apart
from knowing the market, competitors, the sector's environment intimately and
understanding what the ideal customer wants, it is also essential to know how
the offering can enhance their lives. It’s only when there is a proper
understanding of the consumer needs, loves, hates and aspirations that
companies can craft a focused and concise brand message that cuts through the
noise. In the present age, customers are bombarded with messages from multiple
channels throughout the day. The challenge is to put forward the right message,
on target to grab their attention, at the right time and then, most
importantly, to hold that attention. Companies can develop a customer avatar that
they can use to underpin their brand's proposition and profile. The brand
should indicate why and how it'll meet the consumer needs and that it
understands what really matters for the audience.
Evolving
with Time
The
FMCG market is undergoing constant evolvement and brands need to be flexible to
be at par with the changing times. Successful brands quickly recognize trends
and act on them with shifts in strategy that helps them to stay relevant and
meet market requirements over the years. With increasing digital media
consumption, the evolution of business models and proliferation in internet
connectivity, FMCG companies have vast opportunities to create value by leveraging
digital media across the value chain to drive the effectiveness of operations
and efficiency. However, there is a thin line between incorporating new trends
and staying relevant versus losing sight of what the brand stands for. Instead of ‘muddying the waters’ with an excessive range of confusing brand messages, brands must always remain true to the core of what they stand for.