How FMCGs benefit from digital marketing ?

2018 E-Commerce statistics revealed that 4 out of every 10 purchases (including all product categories) are made using an online platform . FMCG companies depend heavily on these platforms for generating new business as well. Lets see how Digital marketing can play a role to support the business of FMCGs.

Benefits of digital marketing over Traditional Marketing A. Targeting:

Digital marketing platforms work on the principle of targeting and retargeting a well by engaging only people who are likely to show interest for a particular product or service; in case of FMCG, targeting is very crucial to meet the conversion objective

Social media platforms support targeting: All social media platforms ensure targeting by using a set of parameters For example, Facebook targets audience by their interests in particular product category, their age group and their location etc and showcases advertisements to that custom audience. Similarly, a feature of Facebook advertisement is Facebook Pixel that helps to target (or retarget) people who have visited your website.

Google adword’s targeting: Google adword targets people by analyzing their search queries and analyzing their activity on internet. A person most visiting the fitness blog may be interested in fitness products and adword will target that person for fitness related products.

Where targeting customers in nearby location is necessary, digital marketing targets on the basis of location of potential customer.

Similarly, digital marketing can help target the customers by showing content in their regional languages.

B. Effective retargeting:

Each digital platform allows effective retargeting by presenting insights of previous campaigns and regular posts; insights show key information like number of engagements, number of people to whom post was showcased, number of people who clicked the ad and number of conversion derived through this procedure. These insights help to start another campaign effectively by providing guidance towards removal and inclusion of specific group of audience.

C. Communities’ development through forums:

Many FMCG businesses have grown the number of its target customers by developing forums to discuss their product categories or responding to queries in the segment. It has proved to be an effective way to increase customer base in a limited period of time.

D. Brand Building:

Whether a company possesses a local store or intends to generate online sales digital marketing helps to develop brand in both cases. Whenever a company ensures its presence on Facebook, Instagram, Twitter, LinkedIn and Youtube etc, it helps in the brand building exercise.

Similarly, even when a small business store owns a blog or an entire website, it helps in promotion of its brand name. You don’t have to be BIG TO START, but you have to START to be BIG. So go on, make your website and get started with brand building.

E. Approaching more customers through SEO:

Having a website is one thing. Ensuring RELEVANT TRAFFIC is quite another, SEO helps you with that.

One important component of digital marketing is search engine optimization. SEO not only ensures cost effectiveness by driving organic traffic but also helps to enhance the brand awareness by approaching a large number of people in the region as most results on SERP are related to local businesses if a query for search of a business is entered in search bar. Moreover, there are analytics presented by Google and other search engines that reflect the effectiveness of SEO and help in determining the location and other information of potential customers.

FMCGs can improve SEO by ranking website against all keywords related to all products offered by it. The keyword approach proves very effective for improvement of SEO of FMCG businesses.

F. Cost Effectiveness:

Digital marketing is very cost-effective marketing, you will be charged on the basis of targeting which means cost is only charged when a customer views your ads, or shows some form of engagement. Similarly, other Social media platforms charge on the basis of reach of ad to certain number of users and charges are within the given limits that you set.

II. Examples of FMCG brands who benefited from digital marketing

Case Study 1: How Birchbox benefited from Instagram Campaign : Birchbox is a French Cosmetic brand, recently, it developed an Instagram Campaign whose purpose was to grow its audience around the world. It used Canvas ads in stories of Instagram because it wanted to convey two messages simultaneously: brand awareness and a promotional offer. As a result of the campaign Birchbox reached one million subscribers and 80 cosmetic brands partnered with it. Moreover, click through rate to the website also increased and it got 4X more visitors.

Case study 2: Chobani get 9% boost in sales due to paid search campaign : Chobani, a yogurt brand tried a paid search campaign on Yahoo. It wanted to increase its in store sales through this campaign, the campaign not only boosted sales by 9% but also increase its market share by 1.3%. It was a keyword based campaign that worked. Whenever a customer typed a relevant keyword it displayed chobani’s website on the top of the SERP (search engine result page) and most interesting thing is that sales kept on boosting till the end of campaign and decreased immediately as campaign ended. This shows the importance of a consistent marketing strategy for FMCG brands and extent of conversion with digital marketing campaigns.

III. Conclusion

Traditional marketing is not an appropriate type of marketing for the FMCGs because of easy availability of these products; only targeted marketing proves effective for this type of products and only digital marketing offers this opportunity. Digital marketing not only provides opportunity of deep targeting but also offers cost effectiveness, brand growth and effective outputs in the form of analytics and insights; this is why digital marketing is only the best choice for marketing of FMCGs’ brands.

Feel free contact us at contact@digitalsaline com to get in touch for any queries for your healthcare business.

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