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

Geographic Display
  • Visual display of distribution network
  • Penetration Analysis
  • Depicting the number of outlets in an area.
  • Details of the covered area.
Gap Analysis
  • Identify untapped Market
  • Highlights the area being covered/ served by a distributor or in a sales territory
  • Where to place a new Distributor/Dealer/Point of Sales, if required?
  • Which are the potential areas/outlets/regions for sale?
  • Which territory/region/area requires attentiveness?
  • Why a potential area is not covered or why an area remains uncovered?
Ssles Analysis
  • Plan/Improve Cohesive Sales & Distribution Strategy
  • Manage Sales, Marketing & Distribution Operations
  • Demonstrate the clear picture of current scenario of the sale of product and helps to analyze the business saturation market.
  • Uiderstand Market Share
  • Depicts the %age of Market penetration/ capture w.r.t. Competitor.
  • Where to put effort to expand the business, when analyzed with competitor data.

MapmyIndia Offerings

Geo-Marketing Applications:

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:

  • Identify the potential in both urban/rural market
  • Identify the current presence
  • Identify the penetration region wise
  • Identify the sales organizational hierarchy
  • Helps in determining the route network planning to cover the untapped markets
  • Helps in identifying network coverage in rural market as well as identifying new stock points
  • Help quick communication of ground facts within internal network, also report generation for city, district and state
  • It can be used in meeting to generate a quick overview and numbers on the fly which would give away with traditional

Market Survey:

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 :

  • Every Dealer Survey
  • Retail Audit
  • Mystery Shopping
  • Potential Survey

Some Key Points:

  • It provides location element to the sales and distribution data used by the enterprises.
  • Micro level profiling of consumer markets
  • Tapped/ untapped markets at the locality/ pin code level
  • Mapping of physical presence
  • Depicts the number of outlets in an area
  • Marks the presence of other assets
  • Identifying the key geographic areas with business potential
  • Both tapped and untapped
  • Which are the areas with most revenue potential?
  • Which areas require attention?
  • Help in better understanding of business coverage, penetration and gaps

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:

Catchment Analysis:

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

  • Traffic and Footfall count
  • Business potential
  • Who are the generators and enablers through map
  • Map against DL (decision Logic: forecasting)
  • Opportunity to map untapped generators
  • Business generated beyond trade area
  • Brand Connect
  • Inputs for store design ambience
  • Business potential across natural and man-made barriers

Mapping Services:

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:

  • Consumer Mapping
  • Competition Mapping
  • Delivery Area Mapping ( F&B Retail)

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:

  • Web and mobile locators powered by MapmyIndia Maps with interactive driving directions
  • Offer locators : User can discover location based offers and promotions for a brand let's call it X. MapmyIndia has developed location based applications for major brands in India to help them connect with their TG directly

Examples:

MapmyIndia Solution:

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.