Daria became an expert in Online Marketing, Digital Transformation and Business Management. She holds a Bachelor of Arts (B.A.) degree in Economy and Business Psychology from Leuphana University Lüneburg and a Master of Business Administration (MBA) in International Business and Brand Management from London School of Business and Finance (LSBF).
In the fast-moving consumer goods (FMCG) sector, establishing a robust business-to-business (B2B) partnership with distributors is often seen as a pivotal step toward securing a competitive edge. However, an often-overlooked fact is that building a network of distributors is just one piece of the puzzle. While an effective distribution strategy ensures that products are available in the market, it does not guarantee that end customers will be aware of or desire these products. This gap between supply and consumer demand can only be bridged through strategic marketing efforts.
The distributor dilemma
Distributors play a critical role in the supply chain, effectively acting as intermediaries who bring products from manufacturers to retailers. They are responsible for ensuring that FMCG products are transported, stored, and displayed at various selling points. This, without doubt, is crucial for accessibility and availability. Yet, the presence of a product on store shelves does not alone spark consumer interest or drive sales.
The visibility gap
A distribution network ensures product placement, but it does not engage with consumers. If end-customers are unaware of a product's benefits, features, or even its existence, the product will not move off the shelves. This disconnection can lead to a surplus of unsold inventory and strained relationships between manufacturers and distributors.
To circumvent this, FMCG companies must engage in proactive marketing strategies designed to raise awareness, generate interest, and drive consumers to retail points.
The imperative of marketing
Creating awareness
First and foremost, potential customers need to know that a product exists. Awareness campaigns, whether through traditional means such as TV, radio, and print media, or digital channels like social media and search engine marketing, are vital. These platforms allow FMCG companies to reach a broad audience and inform them about their products.
Generating interest and desire
Awareness alone is not enough; FMCG brands must also focus on creating a compelling narrative that resonates with their target audience. This involves emphasizing the unique selling propositions (USPs) of the product—what differentiates it from competitors and why a consumer should choose it. Techniques such as storytelling, influencer partnerships, and experiential marketing can be particularly effective in this stage.
Driving action
Marketing's ultimate goal is to convert interest and desire into actionable consumer behavior. This is often achieved through call-to-actions (CTAs), promotions, and point-of-sale marketing. When consumers are aware of a product and convinced of its value, they are more likely to seek it out at retail locations, thereby fulfilling the role of the distribution network.
Integrated strategies for success
For FMCG companies, a successful market presence hinges on the synergy between distribution and marketing. Here are some strategies to ensure both elements work in tandem:
Collaborative campaigns
Collaborate with distributors to run joint marketing campaigns. This can include in-store promotions, special displays, and shared advertising costs.
Data-driven insights
Utilize data analytics to understand consumer behavior and preferences. This can help tailor marketing strategies that align with buying patterns and trends, improving the chances of a successful product launch.
Omnichannel presence
In today’s digital age, maintaining an omnichannel presence is crucial. Combining online and offline marketing efforts ensures a cohesive brand message and maximizes reach.
What is omnichannel presence?
An omnichannel presence involves integrating various marketing and sales channels to create a seamless customer experience, regardless of where or how they engage with the brand. This approach ensures consistency in messaging and facilitates an effortless transition between online and offline touchpoints.
Why it matters
Customer convenience: Customers today demand convenience and flexibility. They may see an advert on social media, research the product further on the company's website, and eventually make a purchase in-store. Ensuring that each touchpoint provides the same information and quality of service can significantly enhance the customer experience.
Brand consistency: An omnichannel strategy ensures that the brand message is consistent across all platforms. This builds trust and familiarity, which are critical factors in consumer decision-making.
Enhanced data collection: By leveraging multiple channels, companies can collect extensive data on consumer behavior. This data can be analyzed to gain insights and refine both marketing and distribution strategies.
Higher engagement: An omnichannel approach allows brands to engage with customers on multiple fronts. This increased engagement can lead to higher brand recall and loyalty.
Implementing an omnichannel strategy
Unified customer profiles: Use Customer Relationship Management (CRM) systems to create unified profiles of customers. This allows for personalized marketing efforts that can cater to individual preferences and purchasing habits.
Cross-channel promotions: Run synchronized promotions across online and offline channels. For example, an online discount coupon that can be redeemed in-store creates a cohesive shopping experience.
Responsive support: Ensure customer support is available across all channels, including social media, email, phone, and in-store. Consistent, high-quality support can significantly enhance customer satisfaction.
Seamless transition: Make it easy for customers to transition between online and offline channels. Features like buy-online-pickup-in-store (BOPIS) or online returns in-store can offer significant convenience.
Conclusion
While distributors are indispensable in ensuring that FMCG products reach retail points, they do not fulfill the role of generating consumer demand. Marketing is essential in capturing the attention and interest of end-customers, driving them towards purchase. An integrated approach, leveraging both distribution networks and comprehensive marketing strategies, is not just beneficial but essential for the sustained success of FMCG companies.
By acknowledging the indispensable role of marketing, and specifically an omnichannel presence, FMCG companies can not only establish their product's presence in the market but also ensure that there is a continuous and growing demand, leading to a thriving business ecosystem.
Daria Chernysheva, Chief Executive Officer, Business Owner
Daria Chernysheva was born in Odessa, Ukraine and moved with her family to Hamburg, Germany when she was 9 years old. After her graduation, Daria became an expert in Online Marketing, Digital Transformation and Business Management. She holds a Bachelor of Arts (B.A.) degree in Economy and Business Psychology from Leuphana University Lüneburg and a Master of Business Administration (MBA) in International Business and Brand Management from London School of Business and Finance (LSBF). Over the course of 15 years of working experience, she worked for different large international IT and Consulting companies in diverse countries, such as Italy and Ireland. Daria knows several European languages.
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