How Innovation Fuels FMCG Globalization and technology driven economy has given the consumer access to a wide range of FMCG products from across the world. Moving down the supermarket with trolley at hand, the customers have the liberty to pick and choose products from a wide array of available goods. As one rolls the trolley along these shelves, consumers find familiar products, with a different name, brand and packaging or a new product vying for attention either with a new and attractive packaging, competitive rates, or innovative marketing. The consumer finally ends up buying five more newly launched products.
However, not all products are sold like hot cakes as consumers are dubious of the contents. To provide the consumers with the required know-how before purchasing a product is a herculean task. The concept of supermarkets facilitated customers to walk through the shelves stacked with variety products, read through the packaging, understands the benefits and selects the product. The acceptance of innovation products by today’s next generation consumers find supermarket shelves lined with well accepted creative products and uncommon combinations such as oats noodles, Manchurian upma or a lemon flavored salt.
Fueled by innovation, the FMCG business machinery does not just relate to creating new products but also includes the process of renovating, restructuring the products. Brand renovation is a process aimed to constantly renew the product equity with the consumer by making the product current and contemporary in tune with the emerging consumer preferences. Further, with a number of untapped markets, ideas and customers available, the need of the hour is to find the right idea which would click for the business to surge ahead.
Companies today are extremely aware and have the capability to listen to the consumer and develop innovative products tailored to their needs.The Consumer Goods and Retail companies need innovative ideas to retain their customers. Leading FMCG company Britannia entered the health drink sector, and took steps to reinvent the brand name by entering the pre-cooked breakfast category with creative ideas identified through brainstorming sessions across departments and from consumers. FMCG brands such as Frito Lays and Procter and Gamble (P&G) find their storehouse of ideas from their consumers. The upside down packaging of Heinz ketchup is the result of a consumer’s observation of the ketchup resting at the farthest point from the opening.
Innovative ideas can come either from the consumers, employees or even the management or all. Whatever be the source, effective idea management service needs to be in place to ensure that the revenue grows continuously. Market research showcases facts that most of the leading FMCG brands both India and abroad use strategic innovation by crowdsourcing software to bring out ideas and creative thoughts from consumers. Such exhaustive idea management implementation tactics will help enterprises to attain higher brand recall value and better consumer connects.