In any industry, there will always be someone who is at top of the leader board.
Within the FMCG sector, the leading companies in 2018 were Nestle, Proctor & Gamble, Unilever, and PepsiCo. The reason they are so popular is that they are always searching to find the next product or innovation that will meet consumers' needs.
To compete with others in your industry, you must understand who the competition is and how their products, services and marketing strategies affect your business. It is fundamental for a company's survival; whether you are a global organisation or a small, local business, competition can have a direct effect on your success.
In any business driving sales should be a key objective, as it keeps the business moving forward within the industry. Here are a couple of ways this can be achieved:
- Reach New Audiences
Reaching new audiences is the area that most businesses focus on because it allows you to increase market share and penetration. However, this process is very expensive and time-consuming.
One of the cheapest (and easiest) ways to attract new customers is through word-of-mouth from current customers; according to a Neilson report, 74% of customers would identify word-of-mouth as a key influencer in their purchasing decisions. Research had also found that a 10% increase in word-of-mouth marketing increased sales between 0.2 – 1.5%, without you having to spend time or money marketing to them.
- Increase Product Purchase Rate
The easiest way to grow a business is to sell more to your current customers, they already have an emotional connection with you, they know and trust your brand; therefore, making it easier to sell more.
But how do you decide on what to sell to your current shoppers? That’s where we come in; Emotional Logic can optimise the subconscious power of your in-store presence to engage more buyers.
Remember, it costs seven times more to gain a new customer than it does to sell to a current customer.
- Increase Average Ticket Spend
Businesses often underestimate what their products or services are worth, they lack confidence and are unsure on what consumers will pay for a product/service. Which then leads to a reduction in the price of the product.
However, increasing the average ticket spend of a product or service is probably one of the easiest ways to increase revenue; but this does come with a risk. Within the FMCG market, there is a lot of competition and if your product or services become too expensive, it could result in customers looking elsewhere.
If you are unsure of what is driving sales in your market or want to increase your market share, get in touch today to discover how our Motivation Deep Dive or Point of Purchase Optimiser can help you reach a new or existing market.