The Internet has empowered today’s consumers by transferring the flow of information into the hands of the masses and not just a few large organizations. Consumers want to know exactly what they are buying, provide input into the products they will be using and enjoy a personalized user experience. As a result, gaining an intimate understanding of their consumers has become essential to any organization’s survival, and not simply about achieving a competitive advantage.
However, for FMCG manufacturers, they are facing a problem in the last mile of the purchasing cycle – no matter how much pre-purchase research they conduct, the end customer remains largely concealed.
Big box retailers, like Wal-Mart and Carrefour, as gateways to the end customer, have a control over even the largest manufacturers. Ironically, this imbalance came about because manufacturers leveraged retail channels for rapid growth during the Industrial Age. At the time, it made business sense – manufacturers gained economies of scale and were freed up to concentrate on their core competencies. However, it has blocked them off from building meaningful relationships which today’s customer demands.
For large FMCG players, the road ahead seems clear. They are bypassing retailers to create direct access to customer information. Evidence of this is in the establishment of Nike Towns and Apple Stores. These consumer-centric companies have realized that unless they shift and reconsider their traditional marketing and customer outreach channels, they will be disadvantaged.
Beyond the traditional marketing channels, Coke, P&G and Nestle have also been launching relationship strategies through viral campaigns, social networks and event sponsorships to better profile and understand their consumers. P&G recently launched a new TV program in Singapore, Girls Out Loud – in conjunction with their Being Girl portal, an online space for young women to get advice and information on issues they commonly face.
Earl
...Continue on to Part 2
First published in Marketing Magazine December 2006 issue