FMCG

Industry : Our view

Most customers perceive FMCG products as commodity until differentiated & communicated effectively otherwise by manufacturers. As many manufacturers are competing for same piece of market & customers bombarded with promotions, there is declining customer loyalty & hyper price competition. Coupled to that is almost non existent switching costs.

Manufacturers face significant challenge in reaching out to end customers. Mass market advertisements are costly & with all manufacturers reverting to it, it is minimum required to be afloat in business - a parity deadlock. Most promotions are remarkably similar and do little to generate new sales or increase profits.

Next big opportunity for manufacturers would be to individualize the promotions, start winning individual customer loyalty & trust. Effective use of multi-brand synergies with automated individualized strategies are expected to provide next level of growth.

Study indicates about 10-15% of FMCG sold in market are counterfeit with industry losses estimated to be INR 15000 Cr. Counterfeits may cause serious damage to health of consumers along with revenue & reputation loss to manufacturers. Counterfeits are one of the impediments to earn customer trust.

Cormorant suite of solutions for FMCG provide lowest cost & most effective customer engagement & counterfeit deterrence solutions.