While many of the FMCG categories used to be extremely dynamic 10 years ago in terms of the communication of brand positioning messages, they have been increasingly discreet in this type of discourse and investment in recent years.
After the 2009-2010 crisis, many manufacturers have shifted their attention to tactical actions and retail strategies aimed at keeping up sales. The expansion of the modern as well as of the online retail have also created a challenging context. Manufacturers and retailers alike have felt the pressure to react to a repositioning of the communication channels with the public, while at the same time feeling a lack of exercise in using the new tools, and implicitly in controlling them in a reassuring manner.
One of the consequences of these changes is the shift of focus from the area of brand equity type communication, of brand essence type messages, to tactical, promotional actions and the need to expand communication into the new online channels, social media.
A consequence of the above consequences is that in many cases, the brand image fell behind, into an area of inertia. The observation is based on the consumers’ reactions recorded in multiple interactions with them during research projects focused on important FMCG categories. People display undisguised reactions of unease and appear to be in difficulty when invited to compare brands and to provide differentiating arguments in favor of the brands they use. The preference is often a strong, well-established one, and the decision to give up one brand in favor of another is not easily made and must be “supported” by a major blunder of that brand. Which happens very seldom.
In highly competitive markets (e.g. dairies, soft drinks, beer), most image-related arguments and brand image descriptions are built on messages from communications a few years old. There are very few cases where consumers were able to provide answers that included new brand perception elements.
Prior experience it’s the main reason why for justifying a preference. Which puts in forefront on one hand a passive behavior, oriented towards diminishing the risk of choice – “I go on the safe side in order not to be disappointed” – and, on the other hand it’s the consumers’ answer to the inconsistent brand messages they received, pointed out by the difficulty in coming with answers to the question “What information in brands’ messages caught your attention lately?”.
At the same time, a rise in the presence (and importance) of top-up type shopping fuels the consumers’ inertial behavior. They want to spend the shortest time possible in shops, which means reaching the desired product as quickly as possible. Therefore, they most often end up buying the product they had a positive experience with, which guarantees consumption/usage satisfaction.
The time available to attract people’s attention is increasingly shorter, and it is increasingly challenging for a product and brand to make room for themselves in the consumers’ relevant set of information (= noticed and processed with interest). These conclusions make it necessary for us to flag again the need for brands to resume building clear, updated equity messages, and to convey them consistently to the consumers. At the same time, a rise in the presence (and importance) of top-up type shopping fuels the consumers’ inertial behavior. They want to spend the shortest time possible in shops, which means reaching the desired product as quickly as possible. Therefore, they most often end up buying the product they had a positive experience with, which guarantees consumption/usage satisfaction.
Adapting the ranges to the market demands, potential expansion with new recipes and formats able to meet the changing needs and the newly emerged consumption occasions, supporting social causes are a “must” for any brand seeking success on the market. Constantly adapting the price and promotion strategies is also essential. However, any replicable thing creates the pressure of a future challenge offered to the market.
We therefore feel this is an important moment to resume investing in brand value messages, to work on differentiation and to provide messages of substance to the target audience. Consistency and engagement in communicating the differentiators to the public are also crucial in this endeavor, as brands need to ensure at least medium-term engagement in this initiative.