Ways in which FMCG companies are going Digital to target consumers, who are largely Digital Natives.

2. Industry Overview
• The fast moving consumer goods (FMCG) segment -
4th largest sector in the Indian economy.
• The market size of FMCG in India estimated to grow
to US$ 74 billion in 2018.
• Food products is the leading segment, accounting for
43 per cent of the overall market. Personal care (22
per cent) and fabric care (12 per cent) come next in
terms of market share.
Source: http://info.shine.com/industry/fmcg/6.html

3. Why Social Media?
• Varied Platforms – Consumers are consuming content on
varied platforms with mobile traffic shooting up by 87% in
2013
• Larger user volume – To come in contact with their target
consumers. Consumers, who are largely digital natives.
• Higher user engagement – To seek feedback on TV campaigns,
invite suggestions to name their upcoming brands, to identify
problems with consumers and give immediate response and
even take up social issues.
Source: http://articles.economictimes.indiatimes.com/2014-04-14/news/49126100_1_digital-media-gsk-consumer-social-
media

4. • To leverage celebrities to scale up conversations
• To change Brand Perception
Why Social Media?

5. Current Trend Among FMCG Companies
• Overall, share of Digital Media
risen to 7.9% in 2014 from 6.9%
in 2013 amongst companies
• Digital campaigns – 4% of FMCG
companies’ marketing &
advertising spends, however
growing rapidly compared to
spends on traditional media.
• FMCG companies increased
digital spends from 30% to 50%
in 2014.
Source: http://businesstoday.intoday.in/story/fmcg-companies-are-betting-on-digital-media-for-
advertising/1/207227.html

6. Trend Initiator
• One of the earliest campaigns that encouraged FMCG
brands to take digital seriously was almost four years
ago, when Nestle synced its print ad for Nescafe
coffee with social media and asked people their
feedback.

7. Naming a brand through User Suggestion
• Company Danone chose the brand name of its vitamin-enriched
flavoured water after interacting with consumers on social media.
• The company talked about brand on various social media platforms
and asked consumers to give their feedback. They received over
50,000 responses and that's how the name 'Blue' came about.

8. Immediate Addressing to a Consumer Problem

9. Changing Brand Perception
• Cosmetics maker Revlon hired ad firm VML Qais to launch a
digital initiative.
• Revlon's target audience is younger women, but the common
perception among them was that the brand related to the older
generation. Thus, to make the brand look contemporary, digital
media became imperative as most young women are digital
natives.
• Lipstick and other make-up variants that the company
launched after their digital campaign boosted sales by nearly
20 per cent.

10. Oreo’s Successful Digital media Campaign & its Impact

11. Revlon’s Successful Digital Media Campaign & it’s Impact

12. Leveraging Celebrities
• Frooti's association with
Shahrukh Khan helped in
scaling up conversations.
When the campaign hit social
media, the superstar engaged
with Frooti fans while they
shared their prized Frooti
memories. The activity helped
amplify the brand's user
generated content.
Source:
http://articles.economictimes.indiatimes.com/2014-10-

13. SRK met the Frooti Contest Winners

14. Digital Media first, Traditional Later!
• Nowadays, Companies roll out their ads on Digital
Media first, like over Youtube or Facebook/Twitter
before releasing it more widely.
• This is because “they are going, where consumers are
going.”

15. Nescafe’s ‘Netizens First’ Strategy
• With 2,93,639 (and
counting) views on
YouTube, the ad film for
Nescafé - coffee brand
from Nestlé - fetched a
fair amount of attention
on Facebook and Twitter.
It broke online on
September 5 and was
launched on TV later.

16. Iodex Pain Reliever Ad Goes Digital First
• GlaxoSmith Kline
• Consumer also premiered
its ad for Iodex pain balm
featuring badminton
player Saina Nehwal on
Facebook and YouTube a
week before releasing it
more widely.

17. Mobile – A Scalable Medium for
Advertisers!
• For many of the FMCG giant's mass brands, the key
consumers are located in media dark areas where
access to computers & internet is not there. Hence, it
is using the power of mobile wisely!
• Hindustan Uni-Lever & Reckitt Benckiser have
tapped this device successfully.

18. HUL launched the most successful
Digital Campaign
• HUL launched a free mobile radio entertainment
channel called Kan Khajura Tesan. To access the
content, a mobile phone user gives a 'missed call' - the
call here gets disconnected automatically after two
rings - on a given number. The user is then called back
and gets to listen to songs, jokes and, of course, HUL
advertisements. The idea behind the campaign was to
reach out to consumers who do not have access to TV,
radio or the print medium but have a mobile phone.

19. Within 7 months, the radio station reached out to more than 9 million subscribers and HUL ads
had been heard 85 million times. HUL now plans to roll out the channel in other regions.

20. Reckitt Benckiser believed in the power of
Cell Phone too!
• In an activation focused on media dark sections,
Reckitt Benckiser’s Dettol leveraged mobile in a big
way to reach out to a wider audience. As a part of the
campaign, there were contests on mobile phones
(feature and smartphones) and VAS targeting
consumers across six states. The campaign reached
out to 8 million users every month through the mobile
platform.

21. Conclusion
• As per reports and various surveys, younger people are using
recommendations from their peers about products and services in
order to make rational purchase decisions. Shoppers aged 18 to 24
are 174 per cent more likely to use recommendations on social
media than shoppers aged 25 and over.
• Considering that consumers today are Digital Natives, increasing
digital media spends would totally pay.

22. “Social Media Marketing is about
identifying the essence of Engagement.”
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