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Brand positioning is the mantra to success in the FMCG sector
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Saturday, 29 January, 2022, 13 : 00 PM [IST]
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Dawinder Pal
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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-vision 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, 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 recognise 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.
(The author is head of marketing at Bikano)
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