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There is a new, shiny marketing trend in Indian FMCG industry. Be it a liquid soap or candies, facelift cream or premium biscuits, marketers are just adding 'gold' before or after the brand name, because of which consumers are attracted to it. 
 
Let alone the FMCG market, even the mobile phones that have 'gold' added to their names or the names of the colour variants, are a hit in the market. 
 
Take, for example, Colgate came out with a new toothbrush, priced it aggressively at Rs 77 per piece, and named it ‘360 Charcoal Gold Toothbrush’. The product was a hit in the market. The tagline, "Wake up to a gold morning... with the gold standard of whole mouth cleaning", hits at Indians’ undying love for gold, which contributed to its popularity. 
 
"The country is besotted with gold. That cuts across the literate and non-literate; it cuts across social, economic, political and religious divides," Harish Bijoor, brand consultant, told <a href="http://economictimes.indiatimes.com/industry/cons-products/fmcg/fmcgs-new-marketing-mantra-is-to-brand-products-gold-and-consumers-dont-seem-to-mind/articleshow/53292120.cms">ET</a>. 
 
Bijoor added that companies now shy away from using platinum and silver, having tried it in the past and failing. "Indians don't understand platinum. And silver remains a distant second to gold," he said. 
 
Some other products that have added ‘gold’ to their names are: Marico's Parachute Gold hair oil, Reckitt Benckiser's Dettol Gold liquid soap and bar soap, confectionery category leader Perfetti Van Melle's Alpenliebe gold candies, and Mondelez's premium biscuit Oreo's Golden Oreo variant. 
 
However, adding ‘gold’ to the name doesn’t always mean that pricing has to necessarily be aggressive since the metal is not always used in the products. Sometimes, companies just want to attract users by this name. 
 
However, every trend is ‘in’ for a limited period of time. Therefore, there are chances that companies might be overplaying with the gold thing. 
 "Marketers attach the gold name to brands to convey quality and premiumness but it needs to be done intelligently, linking it to a good, better, best in their portfolio. Otherwise it loses relevance as different marketers use the gold name for entry-level as well premium-quality products," says Devendra Chawla, group president, food FMCG and brands, <keyword id="44949" type="CITY" weightage="100" keywordseo="Future-group">Future Group</keyword>. 
 
It remains to be seen when the FMCG marketers realise this threat. 
 
<a href="https://mohitze.files.wordpress.com/2015/03/treasure_treasure_chest_euro.jpg">Image source</a>

Indians are so fond of gold that they don’t mind shelling extra money for FMCG products with ‘gold’ in their names

<ul><li>E-commerce currently contributes 2% to the FMCG market.</li><li>Metros lead the <keyword id="8408593" type="UNKNOWN" weightage="20" keywordseo="e-commerce-fmcg">e-commerce FMCG</keyword> race with a 6% contribution from the channel to total FMCG sales. </li><li>Foods is the biggest contributor with 44%, then it is personal care (40%) and household care (13%). </li></ul><keyword id="6456080" type="ORGANIZATION" weightage="20" keywordseo="nielsen">Nielsen</keyword> India expects the Fast Moving Consumer Goods sales coming from the e-commerce channel to grow to $4 billion by 2022. The channel contributes 2% to the current FMCG market. These are insights were a part of Nielsen’s recently launched <keyword id="8408596" type="UNKNOWN" weightage="20" keywordseo="e-trak-index">E-Trak Index</keyword> - a measurement solution that tracks the FMCG e-commerce industry. The solution is created using aggregated ePOS (electronic point of sale) data from co-operating e-commerce players and data science backed estimation for non-cooperating e-commerce players in India. The index adds a crucial element to the Retail Measurement Services that Nielsen provides by adding a view of the FMCG E-commerce space for All India Metros currently - with monthly read for Total FMCG, Super-categories, Category level for about 20 categories and for 11 categories at a top manufacturer level. Manufacturers and marketers get data, information and insights that can be further used to hone their e-commerce channel sales strategy to help shape a smarter market. Metros lead the e-commerce FMCG race with a 6% contribution from the channel to total FMCG sales. Amongst these, Foods is the biggest contributor with 44%, followed by personal care (40%) and household care (13%). Narrowing in on the value contribution of e-commerce to Metro sales categories with the channel, diapers contribute 26% to the sales; followed by skin creams (12%) and shampoo (10%). <keyword id="3017476" type="PERSON" weightage="20" keywordseo="Prasun-Basu">Prasun Basu</keyword>, South Asia Zone President, Nielsen Global Connect, said, “Measurement is necessary. Measurement is difficult. Best possible measurement.” Explaining it further, Basu adds, “Data and insights from Nielsen’s Retail Measurement Services continue to provide an essential foundation for manufacturers and marketers to understand their market. In this rapidly evolving world of commerce, India’s FMCG industry is now making its presence felt in the E-Comm channel - appealing to consumers’ need for convenience, and in sync with increasing smartphone and internet penetration. To give a truly complete picture of the changing marketplace, we are happy to announce that Nielsen India has launched a specific E-Trak index that will now measure FMCG consumer offtake in the E-Comm space - marrying this with trends seen in modern and traditional trade to get a read on omnichannel in the country.” <keyword id="8408595" type="UNKNOWN" weightage="20" keywordseo="Sharang-Pant">Sharang Pant</keyword>, Head-Retail Measurement Services and Retailer Vertical, South Asia, Nielsen Global Connect said, “While the foundation is taking shape, E-comm’s dynamic nature has made it a disruptor in the marketplace. E-Comm has seen a transformative journey and is now a $1.2Bn Industry growing from 0.5% contribution in 2016 to a 2% contribution in 2019, and slated to be 5% in 2022 - this is in half the time that brick and mortar retail took to evolve. That said, these channels are not cannibalizing each other, and all continue to grow with E-Comm outpacing modern trade and traditional trade. The view that Nielsen presents on understanding channel, category and consumer trends will directly help players understand the right strategy in terms of assortment, pricing and positioning to win with the evolving consumer.” <keyword id="8408594" type="UNKNOWN" weightage="20" keywordseo="Nitya-Bhalla">Nitya Bhalla</keyword>, Head- Data Science, South Asia, Nielsen Global Connect, said, “Given the significance of the channel from both a current as well as future perspective, Nielsen has built a unique state of the art hybrid model for estimating this dynamic and growing channel. The methodology involves leveraging data from key collaborating E-tailers in the FMCG space. We then use crowd sourced data coupled with machine learning techniques from a panel of 200K+ consumers to estimate the Ecommerce sales for FMCG products.”

Nielsen expects FMCG e-commerce to grow at 44% CAGR to $4 Billion by 2022

The trend started in 1983, when Cavin Kare introduced the most innovative packaging concept in India’s fast-moving consumer goods (<keyword id="34523" type="CITY" weightage="60" keywordseo="fmcg">FMCG</keyword>) history by launching its Chik <keyword id="44692" type="UNKNOWN" weightage="100" keywordseo="Shampoo">shampoo</keyword> in sachets for Rs 1. That one step revolutionized not just the shampoo segment, but also the entire FMCG sector in the country, and today, sachets make up for more than 75% of the total volume of the shampoo segment. Since then, sachets have played quite a role in mobilizing FMCG products in India. Sachets have now become popular in the skincare and haircare segment too, including face creams, face wash, hair color etc. Can sachets create the same magic for the entire skincare and haircare segment, like it did for shampoo?

	The new wave of sachets<o:p></o:p>

	Gujarat-based company, <a href="http://www.business-standard.com/search?type=news&amp;q=Zydus">Zydus </a>Wellness, (which has brands like Sugar Free, <a href="http://www.business-standard.com/search?type=news&amp;q=Nutralite">Nutralite </a>and <keyword id="1162382" type="UNKNOWN" weightage="80" keywordseo="EverYuth">Everyuth</keyword>) recently launched facewash in sachet, a first in the product category. These sachets are priced at Rs 1.

	According to experts, this can be a breakthrough for the brand in the face wash category, especially with all the big brands wrestling it out in this field. The sachet strategy gives Everyuth an advantage, especially in the rural areas and villages, where face wash is not a regular product. This can help the brand boost its volumes and capture the bottom of the pyramid in this product category. If <keyword id="178761" type="COMPANY" weightage="80" keywordseo="Hindustan-Unilever-Limited">Hindustan Unilever Limited</keyword> (HUL) decides to follow this strategy for face wash, it can win more consumers thanks to its strong distribution network in the hinterlands of the country.

	HUL had applied the sachet strategy for its flagship fairness brand <keyword id="413087" type="UNKNOWN" weightage="80" keywordseo="Fair-Lovely">Fair &amp; Lovely</keyword> cream a few years ago. In fact, market reports suggest that sachets account for more than 50% of Fair &amp; Lovely’s sale in India. Encouraged by the success of sachets in fairness cream category, Garnier skin naturals launched Garnier Fair Miracle and Garnier White in Rs 10 sachet to capture the market.

	Next in sachet category is hair colour creams. To compete with powder hair dye which is preferred by masses, L'Oreal launched its hair colour, Garnier Black Naturals, in a sachet of just Rs 39, whereas any other cream-based hair colour costs Rs 100. This clearly gives Garnier Color Naturals an edge in the mass market. This helps the product increase its overall sales. This is quite a shift in strategy for the brand as globally, it prices its products higher but in India, it is targeting the lower-end customer.

	Clearly, one can see that sachet packaging is increasingly being adopted by various companies in skincare and haircare category to tap the bottom of the pyramid of India’s FMCG market.

	Why sachets work in the Indian market<o:p></o:p>

	The question that comes to one’s mind is what makes sachets such a success in the Indian market. Firstly, Indian consumers are always up for value for money. Through sachets, they get to use an expensive product for a very low cost. Secondly, due to the low cost, new consumers who have never tried the product/brand are more inclined to give it a try. After a few uses, some of these consumers may upgrade to other products of the brand.

	Way forward for FMCG marketers<o:p></o:p>

	Certainly, there lies a big opportunity for marketers in the skincare and haircare categories. They can expand their consumer base by utilizing the real potential of sachets in many sub categories of the cosmetic segment, which are not so popular among the masses, like anti-aging creams, sunscreen, night creams, etc. Sachets can really be a complete game changer for marketers in these categories and even others. <o:p></o:p>

How Are Sachets Changing The Game In Skin And Haircare

<ul><li>Globally, a third of FMCG businesses said their most successful influencer campaign increased sales by $250,000-$500,000.</li><li>Nearly half of fast-moving consumer goods (FMCG) companies will spend up to 50% of their marketing budget on <keyword id="3361533" type="PERSON" weightage="20" keywordseo="Social-Media-Influencers">social media influencers</keyword> post-COVID-19.</li><li>Less than a third of FMCG firms (27%) use third-party influencer verification services.</li></ul>According to a report released today by Duff &amp; Phelps and Kroll, 25% of companies have suffered a $100,000-$250,000 loss from a negative influencer experience. The Face Value Report highlights results of a survey of over 900 marketing and brand managers within the FMCG sector and provides insights into the value of <keyword id="2540701" type="PERSON" weightage="20" keywordseo="Influencer-marketing">influencer marketing</keyword>, as well as the financial and reputational impact of negative influencer experiences. Consumer devotion to digital devices during the pandemic has supercharged the influencer industry. During lockdown, two-thirds of <keyword id="84065" type="COMPANY" weightage="20" keywordseo="FMCG-companies">FMCG companies</keyword> have either maintained their influencer spending at pre-COVID-19 levels or increased it slightly, while nearly a fifth (19%) upped it significantly. By 2021, nearly half of FMCG companies (46%) expect to spend 31-50% of their total marketing budget on influencers—up one-fifth compared to the average spent between 2018-2020—while nearly one in 10 (8%)will spend more than 70%. Clear winners across countries emerge when comparing how much companies make from their influencer campaigns against what they spend running them. The average amount spent per influencer among FMCG companies globally is $22,151 per year. However, the UK spends on average $18,602 and boasts a high sales increase to expense ratio at 73%--comfortably above the ‘all countries’ average of 46%. FMCG companies will typically spread their spending across dozens of influencers; 45% of companies stated they usually work with 51-100 at a time, and this could rise as the influencer method of marketing becomes more entrenched. UK companies appear to use the fewest number of influencers than other countries at around 66, compared to the global average of 81. Michael Weaver, Managing Director Valuation Advisory Services at Duff &amp; Phelps, said, “Marketing teams once relied on securing the most expensive celebrity they could afford for a television campaign or billboard, but this strategy is increasingly obsolete in the digital age. FMCG companies are satisfied with the return on investment from influencers and are diverting marketing spend away from other traditional advertising and marketing tactics to keep the momentum going. We can’t deny that the lockdown and subsequent restriction measures have also played a part in boosting the industry. But regardless, we don’t expect influencer marketing to slow down post-COVID-19 either.” Influencer marketing also comes with certain risks—85% of FMCG companies have had their brand negatively impacted due to an association with an influencer, with almost a quarter (24%) of these companies claiming to have been adversely affected multiple times. Shockingly, 25% of FMCG companies report losses between $100,00-$250,000 from a negative influencer experience. The survey found that over two-thirds of FMCG companies (69%) had doubted an influencer’s follower count on one or multiple occasions compared to just a quarter (26%) who had never had any concerns. It is noteworthy that in the UK, where just over half of businesses (51%) had never had such doubts about followers, the use of third-party influencer verification specialists was among the highest at 32%, compared to the global average of 27%. Benedict Hamilton, Managing Director in Kroll’s Business Intelligence and Investigations practice, said, “Companies spend years creating brands built on trust and loyalty, characteristics which are hard-won but can be quickly lost, and are difficult to regain. When a negative incident with an influencer occurs, the reputational damage that follows can have long-term commercial impacts. Companies need to do their due diligence and not just take an influencer at “face value.” We are seeing increasing demand from brands to investigate influencers’ online activity and identify potentially sensitive issues, including those posted many years ago, to allow brands to establish whether or not an influencer’s values match their own, and ensure they are making informed decisions about their influencer programmes.”

85% FMCG companies have had a negative influencer experience but half of these companies will spend up to 50% of marketing budget on influencers post-COVID-19: Report

<ul><li>Out-of-home to bounce back from COVID-19 slump with 9% annual growth</li><li>Total FMCG adspend to exceed 2019 levels of spending in 2023</li><li>China leads digital transformation with 71% of FMCG budgets spent digitally</li></ul>Zenith forecasts that fast-moving consumer goods (FMCG) food and drink brands will increase their ad expenditure on digital channels by 7% a year to 2023, according to its Business Intelligence – FMCG Food and Drink report, published today. That’s well ahead of the 4% annual growth forecasts for FMCG adspend as a whole in the 12 markets included in this report*. <keyword id="417653" type="COMPANY" weightage="20" keywordseo="FMCG-brands">FMCG brands</keyword> still rely heavily on traditional TV, spending 39% of their budgets on <keyword id="1376766" type="PERSON" weightage="20" keywordseo="Television-advertising">television advertising</keyword> in 2020, compared to 24% for the average brand. Excluding China, where FMCG brands have already adopted <keyword id="169310" type="PERSON" weightage="20" keywordseo="digital-advertising">digital advertising</keyword> as their main form of commercial communication, FMCG brands spent 52% of their budgets in television, compared to an average of 26%. Their principal goal is to maximise brand awareness and reach so they are front of mind at the point of purchase for as many consumers as possible. This is something that TV has historically excelled at, but its declining reach – particularly among the young – is making it less effective. FMCG brands are therefore following audiences to digital channels. Zenith forecasts that FMCG digital adspend will increase from US$12.3bn in 2020 to US$14.9bn in 2023, and that its market share will rise from 46% to 49%. After the pandemic gave FMCG ecommerce its urgent stimulus in 2020, brands will look to support and expand their ecommerce capabilities, channelling consumers to DTC operations or retail partnerships. But the big challenge will lie in using digital to replace television effectively – creating large-scale brand awareness while managing frequency. The rise of Subscription Video on Demand (SVOD), which locks away high-value audiences from direct advertising, will make this even harder, as will the end of third-party cookies. “FMCG brands need a new comprehensive approach to reach-based planning,” said Ben Lukawski, Global Chief Strategy Officer, Zenith. “That means combining TV, paid advertising in online video, virtual placement in SVOD platforms and perhaps even a presence in gaming, using first-party and second-party data to prevent duplication and optimise incremental reach.” Out-of-home is the exception to the declining reach of traditional media. As traffic returns to normal after the COVID-19 slump, the spread of digital displays will make it even more effective at reaching consumers with targeted and relevant ads near the point of sale. FMCG out-of-home advertising is forecast to grow by 9% a year from 2020 to 2023, while its market share rises from 6.1% to 7.0%, slightly ahead of its pre-pandemic share of 6.8% in 2019. FMCG adspend to track total market growth as it recovers from 11% slump in 2020 Ad expenditure by FMCG brands fell more sharply than the ad market as a whole in 2020, shrinking by 10.7% to US$26.7bn. This was not because of any shortfall in demand. On the contrary, demand soared as people stopped eating in restaurants, cafes and bars and shifted consumption to the home. Instead, FMCG companies were faced with the challenge of ramping up production while supply chains were disrupted, and using limited available distribution to get their products onto shelves in stores, or to consumers’ homes. Many FMCG companies therefore cut back on promotional activity for products they couldn’t get to consumers quickly enough to satisfy demand, and invested in distribution infrastructure instead, especially ecommerce operations and partnerships. Zenith forecasts that the recovery of FMCG adspend will roughly track the market as a whole in 2021-2023. A bounce-back is almost inevitable in 2021 given the comparison with the sharp drop-off in 2020, particularly during Q2, though it will still be 6% below 2019 levels. FMCG companies face uncertainty over how quickly consumers will return to shops, and how much their behaviours have been permanently affected by the pandemic. However, now that FMCG ecommerce infrastructure is being put in place, brands will need to increase their investment in advertising to support it. Zenith forecasts 4.4% annual growth in FMCG adspend between 2020 and 2023, reaching US$30.3bn in 2023. At this point it will have fully recovered from the pandemic-induced drop in adspend, exceeding 2019 levels of spending by US$0.5bn. India leads adspend growth but China leads digital transformation Zenith forecasts that India will be the fastest-growing market by some distance over the next three years, with FMCG adspend expanding by 14% a year. It will benefit from blossoming consumer demand as disposable incomes rise rapidly, coupled with the catch-up expansion of the underdeveloped ad market: advertising accounts for only 0.3% of India’s GDP, less than half of the global average of 0.7%. All of the other markets in the report are predicted to grow steadily at between 2% and 5% a year. Jai Lala, CEO, <keyword id="3929120" type="DOMAIN" weightage="20" keywordseo="zenith-india">Zenith India</keyword> said, “FMCG growth will continue to be robust considering various reasons. Firstly, despite the pandemic, it is one category where the demand is constant, if not seen increasing. Secondly, with evolving consumer demand, FMCG continues to see a slate of new product launches and category expansion. Lastly, with the vast population being in Tier 2 and rural areas - it is one untapped potential market where the FMCG brands continue to increase penetration.” China stands out as the market where brands have most rapidly embraced ecommerce and digital advertising. In 2020, Chinese FMCG brands spent 71% of their budgets on digital advertising, compared to 46% across all 12 markets. Here, these brands focus on online video, which has a high and broad reach, and is open to commercial partnerships. This can mean advertising in online shows, or special livestreams by influencers, in which viewers can directly purchase the items being demonstrated. They also routinely advertise on ecommerce platforms to drive sales at the point of purchase. Chinese FMCG brands spent 35% of their total budgets on online video and 13% on ecommerce advertising in 2020. “Ecommerce will be the key battleground for FMCG brand growth over the coming years,” said Jonathan Barnard, Head of Forecasting, Zenith. “Western brands should look to China for best practice in using digital communication to drive FMCG ecommerce sales.” *The 12 markets included in this report are Australia, Canada, China, France, Germany, India, Italy, Russia, Spain, Switzerland, the UK and the US, which between them account for 73% of total global adspend. FMCG food and drink includes all packaged foods and soft drinks.

India will be the fastest-growing advertising market over the next three years, with FMCG adspend expanding by 14% a year: Zenith Report

How the apt use of the digital medium has led online-based <a href="http://www.businessinsider.in/searchresult.cms?query=startups+">startups </a>to join the <a href="http://www.businessinsider.in/searchresult.cms?query=unicorn">unicorn </a>club in a matter of few years, has compelled the big daddy’s to rethink on the ways they have been communicating with their target markets in this digital age. 
 

	The age old <a href="http://www.businessinsider.in/searchresult.cms?query=FMCG+companies">FMCG companies</a> as a result, are increasingly shifting focus from traditional to <a href="http://www.businessinsider.in/searchresult.cms?query=digital+marketing">digital marketing</a> methods for bridging audience passion with business objectives more quickly and efficiently, in a bid to stay competitive in the market.
 <keyword id="34523" type="CITY" weightage="100" keywordseo="fmcg">FMCG</keyword> brands were traditionally built using mass TV advertising to establish brand identity and drive retail sales (supported by promotional marketing). However, digital platform has opened a whole arena for them to achieve multiple results: Improve consumer experiences, deliver location and contextually relevant information, deepen engagement, improve productivity and reduce costs, apart from increasing sales and enhancing brand identity. Notably, with the rising internet penetration and with 61% of global online consumers using the web to research their grocery shopping according to a Neilson study, opportunities for FMCG marketers on the digital platform lay galore. Many seem to have found their way into it already. Say for example Coca Cola. The company encouraged conversations to happen about their brand with a multi-channelled digitally focused ad campaign full of relevant, engaging and viral content. Another one is Cadbury's "Chocolate Charmer" online advertising campaign which provided ROI almost 4 times higher than their TV campaign. The chocolate brand ran a cross-media campaign for its Dairy Milk brand, covering TV, online ads and <keyword id="10879" type="CITY" weightage="100" keywordseo="YouTube">YouTube</keyword> promoted videos. Despite only investing 7% of its budget in online, the brand saw the sector generate 20% of the sales. 

	As digital is known to be the fastest-growing revenue stream in the retail industries, the need of the hour is for 4Ps of price, place, product and promotion to be put in the digital marketing context. “Companies are increasingly trying to redefine their strategy to this effect. Some of the things they do now are being able to deliver discounts and offers in real time direct to the consumer for immediate one-time redemption through retailers. This enables shopper centric utility delivering inspiration and information in the shopper journey. Moreover, the consumer engagement via digital marketing generates a huge amount of data providing insights into how consumers choose and buy products that are valuable for product development, the ongoing development of the consumer experience and in trading negotiations with retailers,” says consumer and retail expert, Akhil Bajaj.
 

	“Its ability to facilitate a two-way conversation also provides feedback on current products and services, enabling propositions to be adjusted and optimized on a continuous basis. It is possible to use the audience or just those who are passionate for R&amp;D purposes,” he says, adding that the potential of the digital medium over traditional methods proves that it is the way forward for FMCG companies in branding and marketing their products, a fact that they are fast realizing.
 

	Bharat Rajamani, Director, Digital &amp; Social Media Analytics at Ernst&amp;Young, meanwhile, feels FMCG have started integrating their print and TV communications on digital platform. “They are already seeking feedback on their TV campaigns, inviting suggestions to name their upcoming brands and even taking up social issues. The TVCs are played on the various social media platforms of the brand. The chances of them getting viral is extremely higher compared to a traditional media medium. This is a platform where the consumers become the brand advocates and promote the product for free,” he says.
 

	However, several experienced marketing professionals we spoke to, feel that the real challenge that poses FMCGs at this time is to craft a holistic marketing strategy. 
 

	“They need to think how to balance both - traditional and new media - to achieve the best results. Consumers increasingly have limited mental capacity and time, so brands need to earn their right to have a role in peoples' lives. It's important to create propositions which are broader than the core product essence, and distributed through a range of touch points," says Rajesh Singh, former senior marketing professional in Unilever with 15 years of experience in consumer goods.
 

	One example would be ice cream brand PaddlePop, which drove significant consideration and share in India through a brand landscape consisting of a multi-part movie on Cartoon Network, experiential roadshows, online games and conventional media.
 

	Rajesh feels apart from the web, mobiles are also a huge potential marketing platform that not many FMCG companies have been able to understand. 
 

	“As the sophistication of mobile devices improves, there is a huge opportunity for marketers to deliver compelling brand messaging where consumers are making their purchase decisions,” he says.
 On similar lines, Bharat says: “Digital and internet have a reach out to consumers who do not have access to TV, radio or the print medium but have a mobile phone especially in the Indian context. Looking at sources like Facebook, YouTube, Twitter, <keyword id="939877" type="COMPANY" weightage="100" keywordseo="Pinterest">Pinterest</keyword> and a lot more of such websites which potential customers use these days. As a result it has become indispensable for each and every company to have a presence on all these mediums.” 

	Interestingly, <a href="http://www.businessinsider.in/searchresult.cms?query=Wal-Mart">Wal-Mart</a> has an app that senses when customers enter a store and suggests switching their phone to "store mode." In this mode, shoppers can interact with special QR digital signage located throughout stores to access useful product information. <keyword id="46675" type="CITY" weightage="100" keywordseo="Wal-Mart">Wal-Mart</keyword>, in turn, is able to track their in-store behavior. If sales of a certain item are not performing, tracking can show whether customers are skipping the aisle entirely or looking at the product without buying it. This information enables store owners to make product placement or other adjustments. Impressively, customers who use the Wal-Mart app make two additional visits to the store each month and spend 40% more than those without apps.

How the advent of Digital age compelled FMCG companies to shift focus from traditional to digital marketing

PM <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword>’s policy of demonetisation that scrapped off Rs 500 and Rs 1000 notes from circulation overnight has badly affected the businesses in India. <a href="http://www.businessinsider.in/you-may-have-to-pay-an-extra-tax-for-eating-pizza-and-burgersafter-budget-if-pm-modi-says-a-yes/articleshow/56736441.cms">FMCG category</a>, which relates to our daily consumption, has been badly hit. While the impact of a dip in sale in double in the urban markets as compared to the rural, date from <keyword id="4096912" type="UNKNOWN" weightage="20" keywordseo="brickworks-media">Brickworks Media</keyword> (a concern of Chrome DM), a research and data analytics company shows, tea has been the least affected item of demonetization at 10.77% and noodles ranks as the mostly affected at 33.23%. Even daily necessities like soaps and toothpaste saw a dip of <a href="http://www.businessinsider.in/you-may-have-to-pay-an-extra-tax-for-eating-pizza-and-burgersafter-budget-if-pm-modi-says-a-yes/articleshow/56736441.cms">16.17% and 18.5%</a> in the urban market respectively. <a href="http://www.businessinsider.in/you-may-have-to-pay-an-extra-tax-for-eating-pizza-and-burgersafter-budget-if-pm-modi-says-a-yes/articleshow/56736441.cms">ALSO READ: You may have to pay an extra tax for eating pizza and burgers after budget, if PM Modi says a yes</a> 
 With the annual <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">finance</keyword> budget been pre-poned this year, the <keyword id="34523" type="CITY" weightage="100" keywordseo="fmcg">FMCG</keyword> companies are pinning high hopes on a growth oriented budget this time. 
 
“We are expecting a growth-oriented Budget with various stimuli to revive<a href="http://www.businessinsider.in/you-may-have-to-pay-an-extra-tax-for-eating-pizza-and-burgersafter-budget-if-pm-modi-says-a-yes/articleshow/56736441.cms"> consumer confidence</a>… proactive reforms to stimulate demand by increasing the money in the hands of the emerging middle class and rural India, this will help bring FMCG growth back on track,” <keyword id="152630" type="COMPANY" weightage="20" keywordseo="Godrej-Consumer-Products-Ltd">Godrej Consumer Products Ltd</keyword> Managing Director <keyword id="218886" type="PERSON" weightage="20" keywordseo="Vivek-Gambhir">Vivek Gambhir</keyword> told the media. 
 With every other budget, restraining deficits and delivering higher growth is going to be a great challenge. <keyword id="40233" type="COMPANY" weightage="20" keywordseo="emami">Emami</keyword> group, leading FMCG brand in <keyword id="6354925" type="COMPANY" weightage="20" keywordseo="Kolkata">Kolkata</keyword> expects the budget to address issues related to GAAR, POEM, GST. Also a growth oriented budget is what they need at this hour to boost consumption, increase public investment, promote <a href="http://www.businessinsider.in/you-may-have-to-pay-an-extra-tax-for-eating-pizza-and-burgersafter-budget-if-pm-modi-says-a-yes/articleshow/56736441.cms">digitisation</a>, broaden tax base and lead higher growth”. <a href="http://www.businessinsider.in/statutorywarning-cigarettes-to-cost-more-after-budget/articleshow/56726842.cms">ALSO READ: Statutory Warning: Cigarettes to cost more after budget?</a> 
 
“While tax rates are expected to reduce with increased basic exemption limits, but taxpayers base is expected to broaden. Ease of doing business would be another focus area in currently subdued business environment. Agriculture, infrastructure and service sectors are also expected to get due attention and support,” said Emami CFO &amp; CEO Finance Strategy &amp; Business Development N. H Bhansali. 
 To believe an agency news report, the sales of <keyword id="6365619" type="CITY" weightage="20" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> and <keyword id="127653" type="COMPANY" weightage="20" keywordseo="Jyothy-Laboratories">Jyothy Laboratories</keyword> have dipped quite during the year end months. The agency has learnt that they admitted the fact that ‘adverse liquidity’ in the market has affected them. 
 
 ​ “We are expecting an all-inclusive, progressive Budget to assist the sustainable economic growth of our country. In order to do so, it is essential for the government to focus on three crucial factors – boosting the rural sector and agricultural productivity, providing benefits to the salaried tax payers in order to increase disposable income in the urban markets, and encouraging private investment along with generation of employment because for the demographic dividend to be leveraged, job creation is very critical. These steps coupled with last year’s good monsoon will drive both urban and rural consumption,” said Saugata Gupta, MD &amp; CEO, Marico Limited.

These are major expectations in Budget 2017 from FMCG sector, the worst affected by demonetization

<ul><li><keyword id="765755" type="General" weightage="20" keywordseo="agro-tech-foods-ltd" source="Orion">Agro Tech Foods Ltd</keyword>. recently announced its entry into the chocolate confectionery segment with the launch of the latest coconut Centered product under the brand name Sundrop Duo.</li><li>It is betting big on the confectionary segment this year.</li><li>We speak to Asheesh Sharma, Vice President - Marketing, Agro Tech Foods Ltd about challenges in the FMCG segment, its entry into the confectionery market and plans for FY23.</li></ul><keyword id="244683" type="General" weightage="20" keywordseo="fmcg-company" source="Orion">FMCG company</keyword> Agro Tech Foods Ltd, maker of <keyword id="13292512" type="General" weightage="20" keywordseo="act-II-popcorn" source="Orion">Act II popcorn</keyword> and <keyword id="12508245" type="General" weightage="20" keywordseo="sundrop-oil" source="Orion">Sundrop Oil</keyword>, has set its sight on the confectionery market to scale up and is aiming for a larger share in the market. The company is working on strengthening its production capacity by quadrupling it in the next three quarters. FMCG as an overall category has witnessed significant highs and lows through the pandemic. Analysts expect the near-term growth of most FMCG companies to be muted on account of high raw material prices and inflation. However, ATFL is confident that it would remain unaffected because of its pricing structure. ATFL’s Snack Foods business, which is spread across Ready to Cook, Ready to Eat, Spreads, Cereals &amp; Chocolates, is also amongst the fastest growing FMCG businesses in India with a 15-year CAGR of close to 16%. In fact in FY’21, ATFL’s food business grew at about double the rate as compared to the other food companies present in the industry. Its best-selling products, Sundrop Oil and Act II popcorn, have helped the company become a market leader in two product categories. Asheesh Sharma, Vice President - Marketing, Agro Tech Foods Ltd speaks to Advertising and Media Insider about ATFL’s diversified brand portfolio, foray into new categories, expansion plan, marketing strategy, dealing with macro challenges in the FMCG market and goals for FY23. Q. How was 2021 for Agro Tech Foods? 2021 was a transformational year for ATFL as we took the advantage of elevated consumer spends in in-home consumption to increase brand spends and cost savings in operational costs such as travel to reduce the price premium vs competitors in premium edible oils. The combination of these two actions resulted in a solid 35% growth in our Foods business in FY’21 and we successfully addressed the softness that we had seen in Premium Oils in the last few years. Q. You recently expanded the business into more categories like ready-to-eat, spreads and chocolate confectionery. How have you fared in those segments? Which category is bringing in the lion's share? All three categories are showing very strong momentum as the economy normalizes. While we expect to see strong growth in each of them, Chocolate Confectionery is expected to give disproportionate growth in FY’23 and that is the reason why we are working to quadruple the capacity in the next three quarters. It is a large category in the region of about Rs. 15,000 crore and our product offering – Coconut Duo – clearly addresses an unmet consumer need for the large Indian population. As a segment, we doubt it will be less than Rs. 500 crore in some years and probably more likely to be in the region of about Rs. 1000 crore. Q. With your recent foray into the chocolate category, what were the challenges you faced since people are today conscious of portion control and are looking for more nutrition and affordability. How have you been able to crack that? One of the biggest challenges while entering into the chocolate confectionery segment for us at ATF was to address the increasing health concerns of the people while consuming chocolates and we are delighted to share that our new Sundrop Duo has proved to be a value-added proposition in the fiercely competitive chocolate confectionery segment. It is a delicious offering and is a unique fusion of healthy-meets-tasty with coconut nutrition in the center, wrapped around chocolate outside. Keeping our consumers’ growing health concerns in mind, Sundrop Duo has been made with 30% less sugar and comes in varied pack sizes starting as low as a 9.5g bar priced at Rs 5 to control the portion size of an individual while consuming chocolates. Q. What are some of the trends that you are expecting to see in the FMCG segment this year? With increasing normalcy we expect that the total amount of time that consumers are spending at home will considerably change in the next 12-18 months and this will have a structural impact on consumption. For example, we expect people to spend a lot more time outside the house – working, travelling etc. – and as a consequence we expect to see exponential growth in our Ready-to-Eat portfolio including Ready-to-Eat Snacks, Cereal Snacks and Chocolate Confectionery. Similarly, since consumers will now be spending less time at home, we expect them to do less in-home cooking and ordering e.g. purchases from Food Aggregators. The latter could impact the growth of the Ready-to-Cook sections of our business. However, since this is something we have been expecting, we have (a) significantly increased our media spends in the last 2 years – our Media Spend in FY’21 and FY’22 combined is about 20% higher than what we spent in the 3 year period from FY’18 to FY’20- resulting in a significant increase in the consumer base as we exit the pandemic which will sustain growth and (b) expanded our RTC portfolio with the introduction of Mini Meal Kits with a huge runaway for growth. Both of these will ensure that we continue to deliver top tier growth in all parts of the Foods business. Q. You are one of the fastest-growing FMCG companies in India. Can you tell us what has worked in your favour at a time when the FMCG industry is facing several challenges? We have a unique growth model which effectively leverages innovation to meet unmet consumer needs with a strong value proposition supported by moderate A&amp;P spends. At a high level therefore, we get about half our growth from A&amp;P spends and the other half driven purely by innovation. This would be in comparison to most of our peer group which will depend heavily only on A&amp;P and this is what has enabled us to deliver a consistent growth rate in the Foods business of almost 2 X of most other Companies in this space. Q. How are you planning on sustaining this growth this year? We have a historical Foods Growth Historical CAGR about 15-20% and with the entry that we have made in the last 2 years into Breakfast Cereals, Chocolates, Chocolate Spreads and Meal Kits we see this rising further to the extent of about 20-25% per annum. Specifically, we see our current categories of Ready to Cook, Ready to East Snacks and Spreads growing at about 15% with the additional top up provided by Breakfast Cereals and Chocolate Confectionery which will add another 600-1000 basis points to take us to 20-25% Growth. To give perspective in our planning for FY’23 we are already working towards doubling our current Chocolate capacity in Quarter 1 FY’23 and then doubling again in Q3, FY’23. Similarly, we are making capital investments to automate and thereby increase output and reduce manufacturing costs in our Meal Kits lines. Much of this is possible only because of our largely in-house manufacturing model which enables powerful network effects as you translate learnings from one category to another. Now that we are competing in 5 different Foods categories all built from scratch, this network effect provides an almost seamless and endless flow of innovation. In a manner of speaking therefore we are almost spoilt for choice as compared to Companies which rely on 3 P manufacturing and therefore do not have this in house capability. Q. Analysts expect the near-term growth of most FMCG companies to be muted on account of high raw material prices and inflation. Do you think it will be a challenge for you, how are you planning on tackling it? On commodity costs, we believe that this will depend on how Companies have responded to the pandemic. Those who have chosen to invest during the pandemic and are finishing FY’22 with strong growth rates will have a very good year since commodity costs in Q1, FY’23 are unlikely to be higher than those of Q1, FY22. If this is true, then the strong Volume momentum will deliver significant incremental margins in the P&amp;L since the base costs will still be contained to PY levels. Our belief is that we are solidly in this category leading us to derive significant confidence for the year ahead. On general inflation and consumer sentiment, we do stand to benefit purely by virtue of our unmatched value offerings and overall low-cost structure. And the reason for this is that in each of the categories and products we compete in we offer unmatched value as a consequence of our overall low-cost structure. Accordingly, any desire by the consumer to explore better value options will offer an accelerated trial opportunity for our brands and therefore generate additional growth. Q. As per media reports, prices of soybean oil have gained 12%, contributing to a surge in global food inflation to near all-time highs, which is likely to put a strain on Indian oil brands. How are you planning on navigating through this challenge? Edible Oils prices in general move with the commodity input prices. In addition, we are fortunate that in the second half of FY’21 we did a significant price realignment for our Premium Edible Oils brands and that is the reason why we have largely been able to hold Volumes and Gross Margins in the Edible Oils category because we are benefiting from the improved price premium to competition. Q. What is your larger marketing strategy for the company? How has the company and brands’ communication evolved over the duration of the pandemic? The primary objective of the company is to drive penetration. Our mantra has always been to offer our consumers differentiated products with good value. With the onset of COVID-19 pandemic and people starting to spend more time at home, we focused our communication on in-home consumption in order to persuade people to make their home the cinema and continue experiencing it at home &amp; indulging with our offering without stepping out of their houses. Q. What is your marketing budget earmarked for this year? Our A&amp;P Spends are currently a little below 7% of food sales which is an average of FY’21- FY’22. We would ideally like to be between 7-8% on a long-term basis. Q. What does your media strategy look like? Which medium gets your lion's share? Our media strategy for marketing our products comprises promotion on television along with digital. However, the lion’s share largely goes to the television and digital just goes as an add-on to it. Q. What would be some of your larger focus areas for this year? We will continue to evolve and offer consumers with our differentiated offerings in all the 5 food categories that we operate in, however our major focus for this year will remain on the new chocolate confectionery and the meal kits offered under our brand Sundrop.

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