Members of the Sales & Marketing Institute of Australia might remember my presentation, “Coles & Woolies aren’t the bad guys, we are!”, at the FMCG Summit in August, 2012.
In this presentation, I suggested…
- The fundamentals of solid FMCG haven’t changed – and won’t
- Loyalty data has become an information goldmine
- FMCG now beats to different & distinct checks & measures
- The Category Management business is in ‘re-jig’ – they are creating business manager experts in smaller categories
- Buyers don’t know where their categories will head UNTIL AFTER a category review – so there’ll be more hesitation before decision but the decision will be based upon shopper satisfaction
- Card data will never be completely shared because it gives retailers a new advantage
- There is always a trade-off between sales, profit & market share
- There is a new imperative on suppliers to be more effective & efficient
- Retailers now run ‘category laboratories’ , and do – they know more than FMCG marketers do
- The quality of the seller must rise to meet the quality of the buyer and visa versa
The point of the presentation was that FMCG marketers must remember that their hay-day came when they discovered segmentation, and conducted segmentation studies annually… long before cost-cutters and short sighted profit goals ate away at research budgets.
FMCG companies who are struggling MUST call out “its time for a segmentation study” if things go astray… but MORE IMPORTANTLY… to plan a product portfolio, write a 3, 5 or 7 years marketing plan, or invest in new products, new plant, or growth without clear understanding of segments and market opportunities… is suicide by Russian Roulette!
I’m not ashamed to say that Launch Engineering does outstanding segmentation studies: One FMCG client increased business 50% in a year on the basis of strategic recommendations following his LE segmentation study…. and EVERY client that takes advantage of our expert researchers with added strategist recommendations, finds inspiration and confidence in their decision-making, post report.
If you’re in FMCG in Australia… its tough. You could make it a whole lot easier…
For more information or a confidential chat, feel free to share your problems and I’ll let you know if I can help… you’ll find my contact details at http://www.launchengineering.com