Strategies for Launching a New FMCG Product in a Market Dominated by Big Brands

The FMCG (Fast Moving Consumer Goods) landscape is both exciting due to its sheer size, and challenging, as it is usually quite crowded. The established brands, like Kit-Kat and their sugary snack counterparts, with marketing budgets unreachable for a small newcomer, dominate the shelves and the consumer's minds. However, with the right strategy, even newcomers can carve a niche for themselves and build a brand.

1. Understand the Gap and Differentiate

Before entering the market, it's crucial to conduct thorough market research. Identify gaps in what's currently being offered. Maybe it's health-conscious snacks, ethical sourcing, or innovative flavors? Whatever it might be, once identified, your product can fill that niche.

For instance, in a market overflowing with sugary options, introducing a no-added-sugar, all-natural snack bar offers a compelling differentiation. But differentiation isn't just about the product itself. It's about positioning, branding, and communicating that unique selling proposition (USP) to your target audience. What is it about your brand that stands out? Your USP could be grounded in:

• Unique Ingredients: Perhaps a rare superfood or an exclusive blend.

• Advanced Technology: Maybe a special processing method that retains more nutrients.

• Special Accommodations: Catering to niche dietary needs or preferences.

• Consumer Desires: Offering something a significant consumer segment craves but can't find elsewhere.

• Innovation: Breaking the mold with something entirely new.

• Perceived Value: Anything that makes your target consumer feel it's worth the investment.

Once USP is determined, the brand creation process can begin, including the name, slogan, colors, interactions with customers. You cannot guess this. The USP decision, and the rest of the brand components, should be developed based on the research conducted. In a same way I ask my family what they want for dinner before I start cooking, otherwise I will waste a lot of time and a lot of food and nobody will eat it, except me.

Some SME may argue that research is a costly and lengthy endeavor, and that ‘nobody got time or budget for that’. However, launching a brand without understanding your audience's pulse is akin to serving a dinner no one wants. The fallout? Wasted resources and a brand that resonates with no one. SMEs often fall into the trap of thinking research is a luxury only large corporations can afford. In reality, it doesn’t need to be a drawn-out affair. SMEs have the agility to kick-start research at their own pace. An adept marketer can spearhead a brainstorming session, involving all key stakeholders, to outline a quick survey, even if it means just asking a handful of potential consumers. And if a deeper dive is needed, specialized agencies are always an option.

Creating a user persona is one of the useful points to start. It’s a great tool for giving everyone in your team a better understanding of who your customers are and what they really want. I find it very insightful to describe a persona in a good level of details - not just average demographics, but going deeper into goals, pains and benefits. - Volodymyr Semenikhin, Marketing Expert, KSE Consulting

2. Emotional Branding

While it's essential to have a quality product, in the FMCG sector the emotional connections often drive purchase decisions. Brands like Coca-Cola don't just sell soda; they sell happiness, togetherness, and memories.

Your brand is not mere ingredients blended together. Your brand is the emotional connection, that your consumers create in their minds to the name on the packaging. To establish this, start by sharing stories, not just about the product but about the people behind it, and people who the brand is for, their journey, and the passion that drives them. Make your brand relatable and human. Don’t be afraid to segment, narrow your initial target segment down. This will not only help you save on advertising (the narrower the target niche, the lighter the budget), this will help resonate with an audience who will feel special to have their own brand and open for emotional connection. They will become the advocates for your brand as they feel they are receiving the promised USP, designed especially for them. Once the positioning with its target niche is established and sales start, consider widen the reach.

Storytelling is an effective way to capture the emotional bond between a brand and its consumer. We, humans, are prone to tell and hear stories by thousand years of civilization. And I believe, every brand has a story and can tell it. Just as a brand isn't born without an idea, it can't thrive without a story. - Volodymyr Semenikhin, Marketing Expert, KSE Consulting

3. Take Advantage of Digital & Social Media Platforms

In today's digital age, social media offers a level playing field. While TV spots and billboards might be out of reach for a new brand competing against giants, platforms like Instagram, Facebook, and TikTok offer an opportunity to reach millions with a fraction of the budget.

User-generated content (UGC), as discussed in a recent case study about a Ukrainian jewelry brand, can be a game-changer. Encouraging customers to share their experiences, stories, and moments related to the product can amplify reach and create authentic engagement. Themes such as sustainability, shared experiences, or health journeys can resonate deeply with modern consumers and help the brand stand out.

4. Collaborative Marketing

Another effective strategy for newcomers is collaboration. This could be with influencers, local businesses, or even other brands that share a similar target demographic but are not direct competitors.

For instance, our health-conscious snack bar might collaborate with fitness influencers for workout challenges or with cafes that emphasize organic produce. These collaborations help tap into an existing customer base while offering mutual value.

The sales channels can be quite accomodating to a brand, if they see a potential. However, simply being present on the shelves is not a guarantee of sales. Think back to your own thoughts, how many times you passed by a product just because you are not sure who it is for. I certainly have done so many times. I even remember seeing certain brands and never buying them because they didn’t hook me, my needs and wants, and so I didn’t spend. I am sure this is mainly because I wasn’t the target audience.

5. POS Marketing

One of the challenges of launching a new FMCG product is the inherent consumer resistance to trying something new, especially when they have established favorites (me! me!). To combat this, consider product sampling. This could be in strategic locations, such as gyms, health stores, or events where your target demographic is likely to be. I confess, I will try free samples every time. I have done this before, and have made purchases based on the sample. I am sure I am not the only one.

Let’s also add the need for enhanced presence at the sales channels, so called ‘Traffic Zones’, where there are many people walking, and ‘Hot Zones’, where people open up their wallets to pay. Being placed in the hot zone is often out of reach for small brands, but temporary enhancement with a sampling stand can certainly attract enough attention and push to try.

Customer insight is what gives power to POS marketing. Knowing shoppers' preferences is key to implementing this strategy effectively. - Volodymyr Semenikhin, Marketing Expert, KSE Consulting

Social Media Strategy for Launching a New FMCG Product

We live in the world dominated by digital platforms, so the importance of social media in branding and marketing is unparalleled. Each platform has its unique attributes, and for brands looking to not just increase visibility but also drive sales, Instagram remains a popular choice, especially in markets like Ukraine when selling to millennials. What can a new brand do?

1. Decide on the Right Channel

a. Competitor Analysis. Start by analyzing the social media presence of direct competitors. What platforms are they active on? Which ones do they have the most engagement on? This will give a clear picture of where potential customers are most active.

b. Complementary Product Analysis. Looking at brands that aren't direct competitors but share a similar target audience can also provide valuable insights. For instance, if your product is a health-conscious snack, analyzing health drink brands or fitness wear brands can provide additional perspective.

Given consistent trends in Ukraine, Instagram stands out as the primary platform for sales-driven campaigns, with Facebook coming close second.

2. Create a Content Calendar

Having a clear plan helps in maintaining consistency, which is key for growth on Instagram. Decide on the frequency of posts, types of content (photos, videos, stories, reels), and themes. Use HubSpot template to get started, or develop your own, tailored to your needs.

3. Instagram Promo Launch

a. Idea Generation. Identify the primary goal of the promo – is it brand awareness, increased sales, or user engagement? Based on this, brainstorm creative concepts that resonate with your target audience.

b. Budget Allocation: determine the budget for the promo. This should include content creation costs, influencer collaboration fees, and ad spends.

c. Influencer Collaboration. Identify the Right Influencers. Look for influencers whose followers match your target demographic. Engagement rate, authenticity, and content quality are more important than just follower count.

d. Content Creation and Scheduling: Depending on the promo idea, this could include product shots, lifestyle images, behind-the-scenes content, etc.

e. Engage with the Audience: Respond to comments, engage with influencer content related to your promo, and use interactive features like polls or questions in stories to keep the audience engaged.

f. Ad Boosting: Depending on your budget, boost key posts or stories to reach a larger audience. Use Instagram's detailed targeting to ensure your promo reaches your desired demographic.

g. Use Instagram Insights to monitor the performance of your promo. If certain content is performing exceptionally well, consider boosting it further. If something isn't resonating, adjust your approach.

4. Post-Promo Analysis: Look at metrics like engagement rate, conversion rate, ROI, and any uptick in followers or website visits. This will provide valuable insights for future campaigns.

Social Media Strategy Emphasizing UGC & Sustainability

Objective: Increase brand awareness, foster community engagement, establish emotional connections, and highlight the brand's commitment to sustainability using social media platforms, with a particular emphasis on User Generated Content (UGC).

1. Brand Storytelling. Share the brand's journey, its commitment to natural ingredients, and the unique benefits of the snack bar.

UGC Idea: Invite customers to share their stories or moments when they chose something natural over artificial in their lives.

2. Product Showcase. Highlight the product's USPs, the benefits of its main ingredients, and how it stands out in the market.

UGC Idea: Encourage users to post photos or videos of them enjoying the snack bar in various settings, emphasizing its versatility as a snack for all occasions.

3. Sustainability & Environmental Responsibility. Share the brand's sustainability initiatives, such as eco-friendly packaging or responsible sourcing.

UGC Idea: Launch a 'Clean-Up Challenge,' where users can share photos of them collecting snack bar wrappers (or other trash) from public places and properly disposing or recycling them. Reward the best initiatives monthly.

4. Shared Experiences. Promote the snack bar as a bridge between different demographics, showcasing it as a unifier.

UGC Idea: Create a campaign around the theme 'We are different, but like the same.' Encourage users to post stories or photos of them sharing the snack bar with someone unexpected—a stranger at the park, a colleague from a different department, etc. Highlight stories where the snack bar sparked conversations or connections. I foresee this escalating into jokes, so encourage good humor, but discourage abuse.

5. Engage and Celebrate the Audience. Celebrate customer testimonials, success stories, and feedback.

UGC Idea: constantly feature your followers and customers, their story, and their experiences with the brand.

6. Contests and Giveaways with themes that resonate with the brand's essence, such as “Healthy Living”, “Natural Choices”, or “Sharing Moments”.

E-Commerce

Many new brands launch their sales on the market places like Amazon, and do this quite successfully. Amazon provides a wide network of customers willing to try a new brand (traffic) and for a small fee every brand is offered an opportunity to be “recommended by Amazon” (almost like placing you in the hot zone). In Ukraine there are similar marketplaces, and many brands place their brands online to jump start the sales. For a snack bar, selling online may seem an out-of-the-box thinking, but in reality, this is a normal sales channel for many busy professionals, who omit crowded super markets with their parking, and push carts and lineups. It is becoming more and more popular to click the “Buy now” and receive your purchase delivery tomorrow. So launching your brand on the market places is an great way to enter a new market.

Are you looking to elevate your brand, captivate your audience, and amplify your impact? Dive deep into the world of small business marketing with a personalized touch. Don't leave your success to chance; leverage expertise tailored to your unique needs.

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