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FMCG & Social Media

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Ways in which FMCG companies are going Digital to target consumers, who are largely Digital Natives.

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FMCG & Social Media

  1. 1. Industry Overview • The fast moving consumer goods (FMCG) segment - 4th largest sector in the Indian economy. • The market size of FMCG in India estimated to grow to US$ 74 billion in 2018. • Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. Source: http://info.shine.com/industry/fmcg/6.html
  2. 2. Why Social Media? • Varied Platforms – Consumers are consuming content on varied platforms with mobile traffic shooting up by 87% in 2013 • Larger user volume – To come in contact with their target consumers. Consumers, who are largely digital natives. • Higher user engagement – To seek feedback on TV campaigns, invite suggestions to name their upcoming brands, to identify problems with consumers and give immediate response and even take up social issues. Source: http://articles.economictimes.indiatimes.com/2014-04-14/news/49126100_1_digital-media-gsk-consumer-social- media
  3. 3. • To leverage celebrities to scale up conversations • To change Brand Perception Why Social Media?
  4. 4. Current Trend Among FMCG Companies • Overall, share of Digital Media risen to 7.9% in 2014 from 6.9% in 2013 amongst companies • Digital campaigns – 4% of FMCG companies’ marketing & advertising spends, however growing rapidly compared to spends on traditional media. • FMCG companies increased digital spends from 30% to 50% in 2014. Source: http://businesstoday.intoday.in/story/fmcg-companies-are-betting-on-digital-media-for- advertising/1/207227.html
  5. 5. Trend Initiator • One of the earliest campaigns that encouraged FMCG brands to take digital seriously was almost four years ago, when Nestle synced its print ad for Nescafe coffee with social media and asked people their feedback.
  6. 6. Naming a brand through User Suggestion • Company Danone chose the brand name of its vitamin-enriched flavoured water after interacting with consumers on social media. • The company talked about brand on various social media platforms and asked consumers to give their feedback. They received over 50,000 responses and that's how the name 'Blue' came about.
  7. 7. Immediate Addressing to a Consumer Problem
  8. 8. Changing Brand Perception • Cosmetics maker Revlon hired ad firm VML Qais to launch a digital initiative. • Revlon's target audience is younger women, but the common perception among them was that the brand related to the older generation. Thus, to make the brand look contemporary, digital media became imperative as most young women are digital natives. • Lipstick and other make-up variants that the company launched after their digital campaign boosted sales by nearly 20 per cent.
  9. 9. Oreo’s Successful Digital media Campaign & its Impact
  10. 10. Revlon’s Successful Digital Media Campaign & it’s Impact
  11. 11. Leveraging Celebrities • Frooti's association with Shahrukh Khan helped in scaling up conversations. When the campaign hit social media, the superstar engaged with Frooti fans while they shared their prized Frooti memories. The activity helped amplify the brand's user generated content. Source: http://articles.economictimes.indiatimes.com/2014-10-
  12. 12. SRK met the Frooti Contest Winners
  13. 13. Digital Media first, Traditional Later! • Nowadays, Companies roll out their ads on Digital Media first, like over Youtube or Facebook/Twitter before releasing it more widely. • This is because “they are going, where consumers are going.”
  14. 14. Nescafe’s ‘Netizens First’ Strategy • With 2,93,639 (and counting) views on YouTube, the ad film for Nescafé - coffee brand from Nestlé - fetched a fair amount of attention on Facebook and Twitter. It broke online on September 5 and was launched on TV later.
  15. 15. Iodex Pain Reliever Ad Goes Digital First • GlaxoSmith Kline • Consumer also premiered its ad for Iodex pain balm featuring badminton player Saina Nehwal on Facebook and YouTube a week before releasing it more widely.
  16. 16. Mobile – A Scalable Medium for Advertisers! • For many of the FMCG giant's mass brands, the key consumers are located in media dark areas where access to computers & internet is not there. Hence, it is using the power of mobile wisely! • Hindustan Uni-Lever & Reckitt Benckiser have tapped this device successfully.
  17. 17. HUL launched the most successful Digital Campaign • HUL launched a free mobile radio entertainment channel called Kan Khajura Tesan. To access the content, a mobile phone user gives a 'missed call' - the call here gets disconnected automatically after two rings - on a given number. The user is then called back and gets to listen to songs, jokes and, of course, HUL advertisements. The idea behind the campaign was to reach out to consumers who do not have access to TV, radio or the print medium but have a mobile phone.
  18. 18. Within 7 months, the radio station reached out to more than 9 million subscribers and HUL ads had been heard 85 million times. HUL now plans to roll out the channel in other regions.
  19. 19. Reckitt Benckiser believed in the power of Cell Phone too! • In an activation focused on media dark sections, Reckitt Benckiser’s Dettol leveraged mobile in a big way to reach out to a wider audience. As a part of the campaign, there were contests on mobile phones (feature and smartphones) and VAS targeting consumers across six states. The campaign reached out to 8 million users every month through the mobile platform.
  20. 20. Conclusion • As per reports and various surveys, younger people are using recommendations from their peers about products and services in order to make rational purchase decisions. Shoppers aged 18 to 24 are 174 per cent more likely to use recommendations on social media than shoppers aged 25 and over. • Considering that consumers today are Digital Natives, increasing digital media spends would totally pay.
  21. 21. “Social Media Marketing is about identifying the essence of Engagement.” /wilddreamsmedia /dubludee /wilddreams www.wilddreams.in +91-79-66168785 info@wilddreams.in

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