Some effective tactics used by FMCG companies to distinguish their brands from the competition are:
- Using a multi-brand strategy,
- Product flinching,
- Brand extensions,
- Building product lines,
- New product development,
- Product life cycle strategy, and
- An extensive distribution network.
- Businesses use a wide-ranging distribution network and occasionally create relevant advertising and sales promotion plans when prices are competitive.
Some tactics used by FMCG companies to distinguish their brands from those of rivals are as follows:
- Multi-brand Strategy:?Businesses frequently develop multiple brands within the same category. There are several reasons to do this. Since only one brand can serve some of the markets, the main goal of this strategy is to take as much of the market share as possible by attempting to cover as many sectors as possible.
- Hindustan Unilever?has expanded its brand portfolio with the introduction of numerous products, including "Dove" in the premium category, "Lifebuoy" in the economic section, and "Lux," "Liril," and "Rexona" in the interim. This shows that the firm has paid attention to every market aspect.
- Product Flanking:?Different combinations of items are introduced at different pricing to reach as many market segments as possible. It sells the same product in various sizes and pricing ranges to take advantage of various market prospects.
- Examples of this tactic include packaging quality detergents (such as?Tide,?Aeriel, etc.) in tiny bags, Pan masala in small pouches, and shampoos in little sachets.
- Brand Extensions:?Hindustan Lever's Lifebuoy soap?has extensions called?Lifebuoy Plus,?Lifebuoy liquid, and?Lifebuoy Gold?since these brands have been placed in several market categories. Similar to?Amul chocolates,?Amul butter,?Amul ghee,?Amul cheese, and?Amul?are all variations of the?Amul Brand.
- Companies create brand extensions to capitalize on the success of the original brands.
- Adding New Product Lines:?Hindustan Lever has added new?Lifebuoy,?Lux,?Liril,?Dove, and other product lines. Similar to this,?Britannia?Industries offers several product lines of comparable biscuits.
- Businesses develop new product lines to provide customers with what they wish to buy.
- Proctor & Gamble?is the world's top firm for new product development. Companies that don't create new items are in great danger and could experience future stagnation. Products currently on the market are susceptible to shifting consumer preferences and needs, new technology, shortened product life cycles, and intense domestic and international rivalry. A business can create new goods through internal R&D, external acquisitions, or a combination.
- Making use of a vast distribution network:?Building a solid distribution network, especially one with more locations, is a simple strategy to boost an FMCG company's market share. Over time, a comprehensive distribution network can be built, or the business can purchase another business having a vast distribution network. Due to their extensive distribution networks,?Coca-Cola?and?PepsiCo?are market leaders.
