Innovations in FMCG

Abstract

FMCG industry has the widest reach among all industries in our country because it touches everyday life of the consumers. Gone are the days where innovation was luxury factor for FMCG companies. It has become hygiene factor now to survive in the existing fierce competition. Earlier, power vested with FMCG manufacturers whereas now the retailers have gained power and most importantly consumers are more powerful with ample of choices available. Customers have become the leaders of this business and the success of FMCG companies lie in meeting their expectations. Consumers are aware and well-informed about the products and hence it is difficult to please them with the existing products. Once known for Cola drinks, Pepsi is now innovating with healthy beverages and snacks according to the changing lifestyle and preferences. Similar pattern is observed in all products, for instance, a consumer has wide choice to choose from different shampoos such as Pantene (Silky hair, Dry hair, Anti-dandruff), Head and Shoulders, Sunsilk (For shiny hair, dull hair, etc), Dove, etc. The industry is shifting towards more and more healthy variants with customers expecting value for money. So innovation has become metric to measure FMCG Company’s performance and the company’s growth depends on the innovation they make. With company’s shareholder keeping keen eye on company’s growth and profits, FMCG companies are in the compulsion to innovate. As the marketing students and budding marketers, we got inspired by FMCG giants and their products in the market to know about what transformation is happening in this industry. The other purpose is to understand what role did customer play in the innovation process, what are all the obstacles faced by FMCG companies from customers while innovating and how they are marketing different types of innovation to consumers. Hence we took this topic “Innovation in FMCG” as part of our Contemporary Concerns Study.