If you are going to grab a soft drink or a box of tissues, chances are that you won’t bother comparison shopping. You are thirsty now or know you will be soon and you want your favourite soft drink. You just buy it. Quite simply, consumers buy out of necessity (you need shampoo) or habit or because these items are part of their everyday way of being. These low cost fast moving consumer goods have low profit margins but a huge volume of sales.
How can a retailer effectively market these fast moving items? Is it worth it because the profit margin is so low? I’m Phillip Adcock and I’d like to answer some of your questions. For now, let’s think about trends. What are the current and upcoming fast moving consumer goods?
In 2014, trends in FMCG included things organic, interactive marketing, and social media. Go natural, get your name on a bottle of Coke, share a hashtag on Facebook. That was then. What about now? According to Grocer Jobs, the 2017 trends in FMCG for the UK include healthy food, lager, licensed goods, African products, and flexitarian products.
Inside FMCG reported in January 2017 that the major food trends in the Australian grocery industry leaned toward health concerns. Wellness tonics, purple foods (the colour indicating high nutrient levels and antioxidants), coconut, Flexitarian, and Mindful meal prep were the products moving off the shelves quickly.
Here’s something I discovered, when it comes to the sale of these low profit items, 71% of shoppers who bought them on special offer would have made the purchase anyway.
Using the information gleaned from reports on the trends in fast moving consumer goods, a pattern can be seen. With the experience my team and I have in understanding the retail sector, the power of brands, the needs of the customer, and the value of testing the behaviour of shoppers, we are well situated to help in the development of an effective plan to place and promote huge amounts of fast moving items.
We know most customers will make the purchase because they need the item, with little motivation from special promotions. Sometimes it is as simple as having the item placed so that the shopper cannot avoid seeing it. Prominently placed purple food (in Australia at least) may hit the customer’s impulse button.
Some of my clients like to read more about product placement. However, while the search for data on the latest trends is intriguing, unless you understand the relationship between the shopper and these fast moving consumer goods, trend analysis won’t help your business.
This is where I can help. It is important to have expertise behind you here because more than half of consumer spending is for FMCG. I’ve spent more than 20 years studying the dynamics between retailers and paying customers. If you are interested in discussing how my market research services can help you, contact me via email firstname.lastname@example.org or call 01543 255 259.