Fast Moving Consumer Goods (FMCG) hold a special place in Indian markets. It is the fourth largest sector in India, with household and personal care items accounting for over 50% of sales. Changing lifestyles since the onset of the pandemic and increased online sales have driven the exponential expansion of the industry.
Consequently, the segment is expected to grow at a CAGR of 14.9% to reach US$220 billion by 2025. And while this category has already cornered the lion’s share of marketing budgets and strategies, this matrix will still to augment. With digital marketing having entered the mix, marketing strategies should also take advantage of this channel. Choosing the right growth strategy at this stage can prepare businesses for continued success in 2022.
Diversify to multiply profits
As a marketing growth strategy, Diversification involves adding services and goods, or markets, to the main activity. If these wares involve a completely new product or service from a familiar industry, the practice is called diversification at company level. Otherwise, we can also adopt diversification at company level tactics in seeking to conquer new markets.
One can use the diversified marketing strategy for many reasons. It might be:-
- To start growing: When businesses are experiencing a downturn, launching new product lines, approaching new markets, or targeting your customers from another channel can jump-start growth.
- To thrive: Companies can also diversify as part of a proactive strategy to enter new industries or attract new customers.
- To support: Sometimes diversification is about ensuring the survival of a business in difficult times or in difficult market phases.
How to diversify?
The easiest way to diversify is to expand the existing product line, also known as horizontal diversification. In this way, companies minimize their exposure to risk while exploiting synergies. Then there is vertical diversification in which firms extend their operations from one market sector to another. This way, they leverage their existing skills and also reduce costs.
There is also lateral diversification— here, companies are expanding into virtually uncharted territory. It’s easier for established brands to diversify this way because of their goodwill with consumers.
Growth strategies for 2022
In 2022, there are certain factors to make growth strategies more effective.
Diversify your approach to social media: About 400 million new users got their start on social media during the COVID-19 pandemic because the only way to stay connected was digital. As a result, people are increasingly using online channels for everything, including learning about brands and making purchases. So, in 2022, companies should necessarily devote more resources to social media marketing if they do not. Think of this change as a new marketing opportunity and increase your reach by engaging with new consumers and reconnecting with loyal customers online.
Innovation: Only when your brand and your approach are exclusive will it be easy to enter new markets or with new services and products. Innovation is the key to business today. Fresh innovative ideas, bold designs and strategies, and transparent execution drive success.
Market penetration: This year, figure out how to sell more services and goods to your existing customer base. Are consumers demanding better warranties? Or maybe they need faster order processing? Learn more about what exactly they want and shape the service accordingly to sell more.
Market development: 2022 could also be a good year to approach new markets. If there’s a new age group to target, invest in market research, create marketing plans, and build them. As the saying goes, nothing explored, nothing gained.
Product development: Sometimes it is enough to develop existing services and goods differently. Can the product portfolio be expanded, quality improved, packaging improved, etc.? ? Market research will have the answers and the marketing team will have the plan. Go for it.
In today’s market, the diversification strategy drives growth and sales. Be sure to offer an exclusive online consumer experience to ensure better growth this year.
The opinions expressed above are those of the author.
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