FMCG
35 posts
Background Due to a number of factors many Australians are struggling with the ‘cost of living’. Shoppers are downtrading to P/L (private label) and are increasingly buying on promotion. In the short-term high inflation has hidden some underlying challenges for manufacturers and supermarkets including declining sales volume. Many are suggesting […]
Due to the current inflationary environment many in FMCG are stating shoppers want ‘value’. As an industry how can we deliver value? Step 1 is to clearly understand what shoppers mean by ‘value’. Psychographics is a term that tries to capture psychological factors that may influence a shoppers’ buying behaviour. There are numerous factors including activities, attitudes, behaviours, interests, lifestyle, opinions, personality and values that could be part of psychographic market segmentation. Obviously not all factors are important in all purchases.
This simple blog poses the important question is sustainability achievable for the FMCG industry? The FMCG (and other) industries are embracing new goals such as sustainability, circular economy, ESG etc. Whilst these goals are commendable the obvious question is are they realistic? Do all these different terms have the same meaning? Are the goals environmental, financial or social?
This simple blog uses the example of Red Bull (innovator) vs Coca Cola (incumbent) to help explain shopper led innovation. Red Bull physically is a very similar product to Coca Cola. To make both products requires water plus ingredients and carbon dioxide for effervescence. So why is Red Bull an energy drink? Original Coca Cola contains caffeine and sugar so why is it a soft drink and not an energy drink?
Trust is important in any relationship. Unfortunately, there are numerous examples of when technology has broken the trust in a business to consumer relationship. Most recently hackers have stolen users’ personal data from retailers including Woolworths. So, do shoppers still trust Woolworths? Should suppliers and supermarkets trust technology to deliver offer a personalised service to shoppers? Does the shopper want a personalised offer more than to protect their personal data?
Amazon Australia opened their first FC (fulfilment centre) almost 5 years ago. Later this year they plan to open Australia’s largest warehouse and the first Amazon Robotics FC in the Southern Hemisphere. To get a better understanding of how to partner with Amazon I have spoken with Betsy McGinn, co-author of The Amazon Roadmap: How Innovative Brands are Reinventing the Path to Market.
Background January 2020 WHO (World Health Organisation) declared COVID-19 a public health emergency of international concern. By March 2020 WHO declared COVID-19 a pandemic. Since that time there has been much debate about how COVID-19 would change the behaviours of supermarket shoppers. This quick blog focuses on how COVID effected […]
In a high inflation environment manufacturers and supermarkets will need to discuss cost price increases. The recent fight between TESCO and Heinz (Heinz ceased supply) has highlighted these negotiations can become adversarial. Do these adversarial negotiations deliver the best outcome? This quick blog suggests a different approach, collaboration, will deliver the best results for shoppers plus manufacturers and supermarkets.
Will Australia follow the lead of over 50 countries and introduce a sugar tax? During the recent federal election campaign both major parties suggested that a sugar tax was a maybe. Previously their position had been no. So, what has changed?
As an industry a great deal of time and effort is put into category reviews and creating category plans. Unfortunately, these category plans cannot always be implemented. Recent events such as COVID, extreme weather and war have highlighted the need for the industry to respond quickly to disruption in supply chains and shopper demands. The traditional category management process, with a 12 month category plan, may not be apt. The industry needs to embrace a more flexible approach to better manage disruption and meet the ever-changing demands of shoppers.
Background ESG is an acronym for Environmental, Social and Corporate Governance. Some simple examples of ESG initiatives in FMCG would include: Environmental: removal of single use shopping bags Social: employing a diverse workforce Corporate Governance: banning all forms of bribery and corruption There are several other terms with similar goals […]