There is no doubt that India is a high-growth market. The key challenge facing an FMCG is to grow its market. Considering the sea change that social and economic landscape in India is undergoing, and the competition looming in to grab this opportunity, having sustainable strategies to grow the market by increasing penetration and consumption and holdingon to it is an FMCG companies' key challenge.
Perspectives of FMCG Business
On one hand, there are urban consumers whose spending power is growing very rapidly and who are becoming quite discerning in their taste about the products and brands they use which is why FMCG need to make sure their brands remain attractive and relevant to a large number of changing consumers.
On the other, there are rural consumers which represent 70% of the population. The key challenge here for the FMCG is to ensure their products are available to these rural consumers even though they might be living in the remotest of the villages. The coverage of these markets has to be expanded by the FMCG to bring a larger percentage of rural population under its ambit.
Focus of Specific FMCG Industry Initiatives
India's market for fast moving consumer goods is highly fragmented considering a large percentage of population still buys nonbranded non-packaged home made products. This presents a golden opportunity to branded product makers to lure this section of the population to branded products. But this opportunity presents its own difficulties. India has over six million retail outlets and there are very limited departmental stores/super markets/hyper markets. That makes logistics very challenging especially when the FMCG companies are breaking new ground.
|Increasing penetration and consumption||FMCG are aware there is gigantic headroom to increase penetration and consumption. This is because the per capita consumption for various categories is very low. With the changing scenario FMCG can fuel their growth by deploying different strategies . FMCG have already experienced that the major contributors for its growth have been higher penetration, per capita consumption, increasing population base, and increasing household income.|
|Restoring Competitiveness||Several initiatives are being taken to strengthen the brands through innovation in
product quality, pricing and branding
|Expanding distribution networks||Companies are now focused on improving their distribution networks to expand their reach in rural India.|
|FMCG companies are devising exclusive rural marketing strategies to tap the rural consumer base.|
Solution Offerings of MapmyIndia
FMCG is one of the key verticals for which MapmyIndia has provided GIS services since its inception. Thus MapmyIndia is very deeply conversant with the challenges faced by the FMCG companies and consequently has armed itself with map, data repository, services portfolio, and solutions for FMCG companies that help them further their business objectives in a userfriendly and easy to use manner.
The challenges faced by FMCG companies are many. To give a perspective, where is their customer base located, how their distribution network is spread out on ground, where are the competitors present, what are the gaps related to coverage, how to get the information of uncovered and under-utilized area, how can the distribution network be optimized for enhanced sales, coverage growth and Dealer expansion.
How MapmyIndia Helps
It is a web based analytical tool powered by MapmyIndia maps targeted to assist organizations in expansion and map based analysis in a larger sense. This solution has been implemented for some of the major enterprises in India and has helped them for in market planning and expansion. It provides a single window dashboard for demographics, sales data, business asset spread, and competitor network breakdown. It helps the user in following key areas:
MapmyIndia provides its field services to major FMCG brands which helps them in understanding the ground coverage, number of active outlets, outlet/dealer share, competitor presence, outlet/dealer branding and other key information which helps them in determining market penetration in terms of reach and the sales team penetration. MapmyIndia provides different categories of field survey :
Some Key Points:
Delivery Dispatch Solution:
It is an integrated GIS-GPS system which caters to everyday logistics as well as the route to market planning. This solution helps you communicate information in real time to the delivery assets, on the go navigation between two point of sales and the warehouses, track their mobility and data sharing in real time.)
Perspective of Retail Business
India is a unique country as far as purchasing power of a large percentage of its population is concerned where the growth has been exponential in the last few years. Be it in the areas of apparels, cosmetics, shoes, watches, Beverages, food, and jewellery which are classified under lifestyle products. The urban consumer's aspirations reflect the lifestyle changes sweeping the urban areas; and their discerning power points towards major brand consciousness.
Solutions Offerings MapmyIndia
For every Retail Organization in the country, MapmyIndia can offermany solutions which can help the organization for store planning, potential analysis, consumer centric application:
MapmyIndia provides in house business insight services powered by MapmyIndia rich map repository, census data and MapmyIndia demographic datasets which will help the organization in store planning and potential analysis for a set geography. The analysis can take place both city and site level for setting up the market network
Trade Area Analysis:
Mapmyindia provides their field survey services which help organization in retail (F&B) to map consumer profile drawn by each store
MapmyIndia provides mapping services both through ground survey, in house geo tagging and preparing thematic maps for business area analysis. Today, MapmyIndia services and map data are being used by major brands like Yum! Restaurants, Metro, Tesco, Aditya Birla Group, Mahindra and many others. These services can be used to determine your current market spread , delivery area and market potential through:
Location Based Applications:
MapmyIndia also provides applications which are consumer centric and are aimed at helping current and potential customers discover point of sale of brands like lifestyle, shoppers stop, big bazaar, domino's, pizza hut around them through web, mobile and WAP channels.
MapmyIndia has built many applications across platforms which help the end consumer in getting to nearby outlet/dealer/shop. These applications include the following:
MapmyIndia's geo-demographic and socio-economic data coupled with its proprietary affluence data forms the basis for customer profiling to determine if a candidate location will be a good choice or not. In other cases the proposed area is divided in different zones and based on potential customer segmentation and used to select the most profitable location.