General Management

On

To Understand FMCG sector exercising digital

platform.

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(under Universit y of Mumbai )

Submitted by

Abuzar Patel

(Roll No.233)

Under the Guidance of

Prof. Ritu Bhattacharya

2016-18

Sheila Raheja School of Business Management & Research .

Raheja Education Complex, Khernagar,

Opp. Chhatrapati Shivaji Ground, Bandra (East),
Mumbai-400051.
 CERTIFICATE

This is to certify that project titled “To understand FMCG sector

exercising digital platform ” is successfull y completed by Mr. Abuzar Patel
during the IV semester, in partial fulfillment of the Master ’s Degree in
Management Studies recognized by the Universit y of Mumbai for the
academic year 2016-2018 through Sheila Raheja School of Business
Management & Research.

This project work is origina l & not submitted earlier for the award of any
degree, diploma or associateship of any other universit y/ Institution.

Name: Prof. Ritu Bhattacharya ( )

Date: 20/02/2018 Signature of the Guide

ii
 DECLARATION

I hereby declare that this project Report submitted by me to the Sheila

Raheja School of Business Management & Research is a bonafide work
undertaken by me & it is not submitted to any other university or institution
for the award of any degree diploma/ certificate or published any time before .

Name: Abuzar Patel

Roll No. 233

Marketing Signature of the Student

iii
 ACKNOWLEDGEMENT

I take this opportunity to specially gratify Dr. Vijay Wagh, Director, Sheila Raheja School
of Business Management & Research, for permitting me to undertake this study. I am
deeply indebted to my guide Prof. Ritu Bhattacharya for not only his valuable and
enlightened, guidance but also for the freedom he rendered me during this project work.

Faculty Members, who have extended their kind help, guidance and suggestion without
which it could not have been possible for me to complete this project report.

Lastly I thank my peers for supporting me whole heartedly in this endeavor.

iv
 Table of Contents

Sr. No Topics Page No

Prefatory items
0.1 0.1 Cover page
0.2 0.2 Certificate
0.3 0.3 Declaration
0.4 0.4 Acknowledgement
0.5 0.5 Table of content
0.5.1 Index of table
0.5.2 Index of graph

1 chapter 1 Introduction
1.1 section 1 Problem Statement
1.2 section 2 Research Objective
1.3 section 3 Hypothesis
1.4 section 4 Limitation
1.5 section 5 Importance
1.6 section 6 Benefits

2 chapter 2 Literature review

2.1 section 1 FMCG
2.2 section 2 Definition
2.3 section 3 Introduction
2.4 section 4 Digital Marketing
2.5 section 5 Definition
2.6 section 6 Introduction
2.7 section 7 8 Benefits
2.8 section 8 Brand Awareness
2.9 section 9 Uses of Digital
2.10 section 10 Approach
2.11 section 11 Strategies
2.12 section 12 Various forms & strategies

3 chapter 3 Methodology
3.1 section 1 Sample strategy
3.2 section 2 Research design
3.3 section 3 Data collection

v
4 chapter 4 Results

5 chapter 5 Discussion
5.1 section 1 Finding/Interpretation
5.2 section 2 Hypothesis testing

6 chapter 6 Conclusion
6.1 section 1 Recommendation

7 chapter 7 References

8 chapter 8 Appendices
8.1 section 1 Sample questionnaire

vi
 LIST OF TABLES

SR. NO Topics Page No

4.1 FMCG sector growing digitally

4.2 influencer factor

4.3 factors

4.4 comparison

4.5 reasons

4.6 Effectiveness
4.7 Recent purchase

4.8 Approaches

4.9 Strategies

4.1 strategy planning

4.11 Areas of practice

4.12 platform

4.13 future

vii
 LIST OF DIAGRAMS

SR. NO Topics Page No

2.7.1 Conversion Rate of digital platform

2.7.2 Connection of mobile customer

2.9.3 Digital influence customer

4.1 FMCG sector growing digitally

4.2 influencer factor

4.3 factors

4.4 comparison

4.5 reasons

4.6 Effectiveness

4.7 Recent purchase

4.8 Approaches

4.9 Strategies

4.1 strategy planning

4.11 Areas of practice

4.12 platform

4.13 future

viii
 CHAPTER-1: INTRODUCTION

1.1: PROBLEM STATEMENT:

To understand FMCG sector exercising digital platform.

1.2: RESEARCH OBJECTIVE:

1. To understand the effect of FMCG brand on digital platform.
2. To describe the uses of digital platform by FMCG.
3. To compare the digital & traditional marketing approach undertaken by FMCG.
4. To analyze the strategies used by FMCG in traditional & digital.
5. To understand the various forms used in digital platform by FMCG.

1.3: HYPOTHESIS:
Set 1:
H0: There is no impact of FMCG brand on digital platform.
H1: There is an impact of FMCG brand on digital platform.
Set 2:
H0: There is no use of digital platform.
H1: There is use of digital platform.
Set 3:
H0: There is no effect of digital marketing approach in FMCG.
H1: There is an effect of digital marketing approach in FMCG.
Set 4:
H0: There are no strategies used by FMCG sector.
H1: There are various strategies used by FMCG sector.
Set 5:
H0: There are no various forms used in digital platform by FMCG.
H1: There are various forms used in digital platform by FMCG.

1.4: RESEARCH DESIGN:

The research design will be combination of exploratory & descriptive research.
The research is used to measure the importance given to FMCG sector exercising digital
platform.

1
 1.5: LIMITATION:

Although this research was carefully prepared, there are some limitations and shortcomings.
These are listed below:-

Lack of prior research on FMCG sector exercising digital platform has not been carried out in
that much extent in India.

There are various factors that influence people to purchase products online. All the factors
could not be taken into consideration; hence there are some assumptions which are made.

Survey was conducted online so the factors that influence the respondents could not be
controlled. There could be biases in the response when the respondents were along with other
influencer like friends or relatives.

Time restriction was another limitation that prevented to have in depth understating of the
research project.

Research is limited to residents of Mumbai with a limited sample size; hence the findings
cannot be generalized for the entire online purchasers.

Lack of experience in the field of research has restricted the full understanding of the
research project.

1.6: AIM

Since the demand for digital platform is in peak the factors affecting customer preference on
buying behavior, so i have decided to study the digital platform & FMCG product and find
out the reasons for the same. From the survey conducted we can find the reasons and the
causes for the customers not able to decide well.

2
 CHAPTER-2: LITERATURE REVIEW

2.1: FAST-MOVING CONSUMER GOODS (FMCG):

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that
are sold quickly and at relatively low cost. Examples include non-durable goods such
as packaged foods, beverages, toiletries, over-the-counter drugs and many other consumables.
In contrast, durable goods or major appliances such as kitchen appliances are generally
replaced over a period of several years. Many fast moving consumer goods have a short shelf
life, either as a result of high consumer demand or because the product deteriorates rapidly.
Some FMCGs, such as meat, fruits and vegetables, dairy products, and baked goods, are
highly perishable. Other goods, such as pre-packaged foods, soft drinks, chocolate, candies,
toiletries, and cleaning products, have high turnover rates. The sales are sometimes
influenced by holidays and seasons.

Packaging is critical for FMCGs. The logistics and distribution systems often require
secondary and tertiary packaging to maximize efficiency. The unit pack or primary package
is critical for product protection and shelf life and also provides information and sales
incentives to consumers. Though the profit margin made on FMCG products is relatively
small (more so for retailers than the producers/suppliers), they are generally sold in large
quantities; thus, the cumulative profit on such products can be substantial. FMCG is a classic
case of low margin and high volume business.1

Characteristics:

The following are the main characteristics of FMCGs:

From the consumer's perspective

Frequent purchase
Low involvement (little or no effort to choose the item)
Low price
Short shelf life
Rapid consumption

From the marketer's perspective

High volumes
Low contribution margins
Extensive distribution networks
High stock turnover

1
https://en.wikipedia.org/wiki/Fast-moving_consumer_goods

3
Fast-moving consumer electronics:

Fast-moving consumer electronics are typically low-priced generic or easily

substitutable consumer electronics, including mobile phones, MP3 players, game players,
earphones, headphones, OTG cables, and digital disposable cameras.

2.2: DEFINITION of 'Fast-Moving Consumer Goods (FMCG)'

These are consumer goods products that sell quickly at relatively low cost – items such as
milk, gum, fruit and vegetables, toilet paper, soda, beer and over-the-counter drugs like
aspirin. Nearly everyone in the developed and developing world uses fast-moving consumer
goods (FMCC) every day. They are the small-scale consumer purchases we make at the
produce stand, grocery store, supermarket and warehouse outlet. FMCG have short shelf
lives, so, while the profit margin on individual FMGG sales is low, the volume of sales
makes up for it. The market for $3.99 orange juice is a lot larger than the market for $399
juicing machines. The FMCG marketplace is huge and includes some of the largest
companies in the world – Dole Foods Co., The Coca-Cola Co. (KO) Unilever (UL), General
Mills, Inc. (GIS). As investments, FMCG stocks are a generally low-growth, but safe bets
with predictable margins, stable returns and regular dividends. FMCG accounts for more than
half of all consumers spending, but they tend to be low-involvement purchases. Consumers
are more likely to show off a durable good such as a new car or beautifully designed
smartphone, than wax poetic about a new energy drink they picked up for $2.50 at the
convenience store.2

2.3.1. INTRODUCTION:

Fast moving consumer goods (FMCGs) constitute a large part of consumers’ budget in all
countries. Retail trade in these products, that is, their supply to households, has attracted
considerable interest from consumers and policy-makers because a well-functioning retail
sector is essential for daily provision of these essential products at high quality and low
cost.The retail sector for FMCGs in Turkey is in the process of a drastic transformation. New,
“modern” retail formats, like chain stores and hyper/supermarkets, have rapidly diffused in
almost all major urban areas, and increased their market share at the expense of traditional
formats (grocery shops, green groceries, etc.) in the last couple of decades. This rapid
Transformation has raised concerns about competitive conditions in the sector.
1 This study is aimed at to shed light on competitive conditions prevailing in the FMCGs
retail trade sector in Turkey. We analyze how the structure of the market is being
transformed in recent years by new retail formats. The study is focused on the analysis of
competitive dynamics (inter-firm rivalry, pricing and non-price policies, barriers to entry,
regulatory conditions, etc.) within the sector, and draws lessons for competition policy.
Since the FMCG retail sector is closely related to suppliers (FMCG producing industries),
other services (most importantly, wholesale trade), and users of FMCGs (hotels and
restaurants), the backward and forward industry linkages are also taken into account.

2
https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp

4
The study is based on four sources of information. First, we extensively use official
statistics collected by the State Institute of Statistics (SIS). Although the SIS provides
comprehensive data on the retail trade sector and supplier industries (number of firms,
employees, production, foreign trade, etc.), the data are not up-to-date (most of the data are
not available beyond 2002). Second, we conducted a series of interviews with the main
observers and actors both in the private (FMCGS retailers as well as suppliers) and public
sectors. Interviews provided very valuable information on various business practices and
competitive dynamics in the sector. Third, we conducted a comprehensive survey, partly to
get quantitative evidence on the issues raised by the interviewees. A list of 100 main
retailers and about 200 suppliers was collected. Two questionnaires, one for retailers and
the other one for suppliers, were prepared and the survey was conducted in the fourth
quarter of 2004. The response rate was about 50 percent for retailers and 40 percent for
suppliers. Finally, we used the HTP Household Consumption Panel data to analyze market
share dynamics and pricing behavior.3

The study is organized as follows: Section 2 presents the data on the structure of the
FMCG retail market . Sector 3 summarizes recent changes in the markets (market
dynamics). Section 4, drawing on the survey and HTP data, describes the conduct of
retailers and suppliers, and analyzes the implications for competitive conditions. Section 5
discusses likely changes that can be observed in the future. After a brief discussion on
competition policy issues in Section 6, the last section summarizes main findings of the
study.

2. The Market :

The retail market for fast moving consumer goods (FMCGs) consists of various retail
channels. The International Standard Industry Classification (ISIC, Revision 3) classifies
retail channels into seven categories at the 4-digit level: ISIC 5211 retail sale in non-
specialized stores, ISIC 5219 other retail sale in non-specialized stores (department stores,
etc), ISIC 5220 retail sale of food, beverages and tobacco in specialized stores, ISIC 5231
retail sale of pharmaceutical and medical goods, cosmetic and toilet articles, ISIC 5251
retail sale via mail order houses, ISIC 5252 retail sale via stalls and markets, and ISIC
5259 other non-store retail sale. Since there is no firm in categories ISIC 5251 and 5252 in
Turkey, they are excluded from our analysis.

Table 1 presents the summary data on the retail sector2 in Turkey for the period 1997-
2001.3 The data on wholesale sectors (5121 wholesale trade in agricultural raw materials and
live animals, and ISIC 5122 wholesale trade in food, beverages and tobacco) are also
included in the table.The retail sector in Turkey sold $ 29.8 billion worth of goods in 1999.
Its contribution to GDP amounted to $ 6.7 billion.4 The value of goods sold declined sharply
in 2001 (21.9 billion) because of the severe economic crisis in that year. The Turkish lira
depreciated almost by 100 percent whereas manufacturing prices increased by 67 percent.
The value of goods traded by the wholesale industry experienced a similar decline from 1999
($ 23.1 billion) to 2001 ($ 19.4 billion). The retail sector employed 231 thousands people,
and the number of people engaged in the sector (paid workers plus owners, self-employed

3
Mazzarotto (2001) and Dobson et al. (2001).
5
and unpaid family workers) was 580 thousands in 2001. The retail sector, together with the
wholesale sector, provides employment for 690 thousand people. In other words, it is one of
the leading employment generation sectors in Turkey.
There were about 282 thousands retail and 20 thousand wholesale establishments in 2001,
i.e., in an average retail establishment, there are only two people working, whereas an
average wholesale trader operates with 5.5 people. The sector shrunk more than 10 percent
in real terms in 2001, but the number of establishments and the number of employees/
engaged people increased slightly in the same year, thanks to its flexibility.
The retail sector is closely related with agriculture and FMCG supplying industries.5 Total
value added created by the agriculture sector was $ 27.2 billion in 2000 (Table 2). FMCG
supplier industries added $ 7.2 billion. Agriculture employs almost 35 percent of all
working people in Turkey (about 7.5 million people). Since a significant part of the
population lives in rural areas and are engaged in agricultural production, a large part of
agricultural goods are consumed there. The FMCG supplying industries employed 203
thousands people in 2000 (down from 216 thousands in 1998). These industries lost further
10,000 jobs during the economic crisis in 2001.4

The retail sector provides households essential consumption goods. However, these same
products are consumed by households as services provided by hotels and camping sites
(ISIC 5510) and restaurants, bars and canteens (ISIC 5520 that also includes catering
activities and take-out activities). These services purchase FMCGs from wholesale and/or
retail trade outlets and substitute for consumption at home. These two sectors’ sales for
private domestic consumption were about $ 5 billion in 1998.6 Thus, hotels and restaurants
demand a considerable amount of FMCGs and they provide these goods embodied in their
services to households as substitutes. Moreover, the share of these sectors in total FMCG
consumption tends to increase. Total output of hotels and restaurants increased in dollar
terms 73 percent in only three years, from 1997 to 2000, whereas the sales of the retail
sector grew 31 percent in the same period.7 Turkey imported, on average, $ 1.9 billion worth
of agricultural products annually in the period 1998-2003, and its average annual export
revenue from agricultural products was about $ 2.4 billion in the same period. It is a net
exporter in food products ($ 1.9 billion exports vs $ 1.3 billion imports), and a net importer of
paper and paper products. It exported somewhat more soap and detergents, cleaning
preparations, and perfumes than it imported in the last 6 years. The most important imported
food items are meat and meat products and vegetable and animal oils and fats (total import
value in 2003 was almost $ 1 billion).

An analysis of the market structure in supplier industries is necessary to understand the

performance of the retail sector. The data on concentration rates (4-firm concentration
ratios,8 CR4) are shown in Table 3. The 4-firm concentration rates are higher than 50
percent in fish and fish products (53), dairy products (696), starches and starch products
(913), cocoa, chocolate and sugar confectionery (933), macaroni, noodles and couscous
(173), spirits and ethyl alcohol (539), wines (31), malt liquors and malt (329), soft drinks
and mineral waters (763), tobacco and tobacco products (3143), and soap and detergents,

4
FMCGs, the “retail sector” refers to only those sectors that trade FMCGs (ISIC 521 and
522).

6
cleaning preparations and perfumes (1215).9 In order to determine the degree of
concentration in domestic supply, we need to check the level of concentration in imports,
and the share of imports in domestic supply as well. The SIS data on concentration in
imports show that 4-firm concentration ratio in imports, i.e., the share of 4-largest
importers in total imports, exceed 50 percent in only macaroni, noodles and couscous, and
beverages (all four sub-sectors). Since imports make up less than 25 percent of domestic
supply of all FMCG-related products (with one exception, pulp, paper and paperboard),
foreign trade does not likely to have a major impact in reducing the market power of
domestic suppliers.10 Thus, we conclude that seller power could be a problem for retailers,
especially for small ones, for the aforementioned products.5

The SIS does not calculate concentration rates for retail sectors. However, we have
collected sales data from major retailers for the period 2000-2003. We have estimated 4-
firm concentration rates for the non-specialized retail trade in stores sector (ISIC 521) by
assuming that the largest chain stores in our sample do not compete with specialized retail
sector (ISIC 522 and 523) and non-store retail trade (ISIC 525). Our estimates suggest that
4-firm concentration rates in the non-specialized retail trade in stores was 10.8 percent in
2000 and 11.5 percent in 2001 . 11 The level of concentration is much lower in Turkey than
in many European countries, but is expected to increase gradually as a result of the
increasing market share of and the wave of mergers between large retailers.12 Finally, we
will look at the financial performance of the retail sector and FMCG-related sectors. Table 4
presents the data on profit margin (operating profits/turnover). 13 As may be expected, the
profit margin is very low in retail trade (ISIC 521): it was around 1 percent in 1997 and 1998,
but it became negative in 1999 and continues to be negative.
Retail trade of new goods in specialized stores (retail trade in pharmaceutical and medical
goods, textiles, clothing, footwear, household appliances, hardware, paint and glass) had a
much higher profit margin, around 10 percent in the period 1997-2002. Profits margin in
wholesale trade is somewhat higher than the margin in retail trade (5.8 percent in wholesale
of agricultural raw materials, and 1.9 percent in wholesale of food, beverages
and tobacco). Among the FMCG-supplier industries, other chemical products and tobacco
have the highest profit margins. Profit rates (profits before tax/equity ratio) are highly
correlated with profit margins. Retail trade in FMCG experienced a sharp decline in profit
rate in 2001 (-43 percent), and sustained substantial losses in 2002 as well. However, retail
trade in non-FMCG (ISIC 523) has had quite high profit rates throughout the period under
investigation. Wholesale trade has a high profit rate (on average, around 25 percent in the
period 1998-2002), and tobacco and other chemicals are among the most profitable FMCG-
supplying industries. Although there are a few observations, there is a discernible positive
correlation between profitability measures and 4-firm concentration ratios (average values for
1999-2001). Highly concentrated sectors, like tobacco and other chemicals, score well in
profitability measures. Incidentally, retail trade in FMCG (ISIC 521) has the lowest
concentration rate and it is one of the least profitable sectors.

5
The State Institute of Statistics conducted the Census of Businesses in 2002, but the results
were not available as of January 2005.

7
3. Market dynamics:

We have seen that the level of concentration in retail trade in FMCG is quite low compared
to the European countries. However, the concentration data provides a snapshot of the
sector without much information on the underlying dynamics. Therefore, in this section,
we will analyze market dynamics, i.e., entry and exit processes with a special emphasis on
entry by foreign firms, and changes in the composition of the industry by retail type. (The
process of internationalization of retailers in Turkey is extensively studied by Tokatli and
her colleagues, see Tokatlı and Boyacı, 1997; Tokatlı and Özcan, 1998; Tokatlı and
Eldener, 2002. For a comparison between the retail market in Turkey and other emerging
markets of Europe, see Tokatli, 1999).6

The market dynamics is to a large extent determined by the regulatory framework. The
Australian Productivity Commission (APC), in collaboration with the Australian National
University, has measured restrictions on trade in services for a number of countries in the
world.14 The OECD has also compiled a large database, the OECD International
Regulation Database, for various sectors, including wholesale and retail trade (see, for
example, Boylaud, 2000; Boylaud and Nicoletti, 2001). In this study, we use the APC
database to compare Turkey with various categories of economies because it covers a large
number of countries and summarizes regulations in index form.
The trade restrictiveness index is calculated for two types of supply (domestic and foreign)
and two types of activities (ongoing operations and establishment of new businesses). It
covers all distribution services, i.e., wholesale and retail trade (ISIC 51 and 52). Table 5
presents the data on restrictiveness index scores for Turkey and average values for four
country categories (developed countries, EU-15, Latin America and Asia). The domestic
index scores for all country groups are quite low. In other words, there are not many
restrictions on establishment of domestic retail firms and their ongoing operations. The
domestic index score for restrictions on establishment is zero for Turkey, i.e., Turkey does
not impose any serious restriction that may impede the establishment of domestic retail
firms. The domestic index score for restrictions on ongoing operations is slightly higher than
the average of other countries, mostly because of insufficient protection of intellectual
property rights (IPRs).

Turkey seems to have minor restrictions on the establishment of foreign retail firms: the
index score is only 0.031 (much lower than the EU-15 average, 0.153; other developed
countries, 0.094; Latin American countries, 0.080; Asian countries, 0.176). In other words,
contrary to other countries, Turkey does not discriminate against foreign firms in the retail
sector. The index score for restrictions on ongoing operation of foreign firms in Turkey is
comparable to those observed in other countries (0.096 for Turkey vs 0.086 for EU-15,
0.071 for other developed countries, 0.074 for Latin America, and 0.105 for Asian
countries). “Insufficient protection of intellectual property rights” is again the main factor
contributing to the foreign index in Turkey. Turkey seems to restrict “movement of

6
The database was downloaded in December 2004 from the Australian Productivity
Commission website: http://www.pc.gov.au/research/rm/servicesrestriction.

8
people” that imposes additional restrictions for foreign firms.
Turkey has introduces a number of changes in protecting IPRs in recent years. Turkey
introduced a number of laws on the protection of patent rights, industrial designs,
geographical indications, and trademarks, and ratified the Patent Co-operation Treaty, and
Nice, Vienna and Strasbourg Agreements, and specialized courts on IPRs were established.
Turkey has become a member of the European Patent Convention in 2000. The new law on
foreign direct investment (No 4875, enacted on June 5, 2003) guarantees national treatment
for foreign firms established in Turkey and allows 100 percent foreign ownership in almost
all sectors.15 Moreover, the law on work permits for foreign nationals (No 4817, enacted on
February 27, 2003) has reduced the administrative burden on getting work permit, and
opened up a large number of occupations to foreign citizens. We can conclude that, with the
recent legislative changes, Turkey has lifted almost all restrictions in retail sector for
domestic and foreign investors.7

The regulatory framework has changed so as to create an environment favorable to entry of

new companies, and efficient operation and growth of existing ones. Turkey has a number
of policy tools to promote investment in various sectors, activities and/or regions. The
Decree of the Council of Ministers on investment incentives (No 2002/4367, June 10, 2002)
provides the legal basis for state support schemes. The Regulation on the
implementation of the decree (No 2002/1, published in the Official Journal on July 3
2002), defines the administrative procedures, and clarifies the types of investment
activities that can benefit from state support. The Regulation (Appendix 6, A.11) explicitly
states that investment in “hypermarkets, shopping centers and car parks” in any region will
not benefit from any investment incentive. Although the exclusion of hypermarkets and
shopping centers from the state support program is potentially an unfavorable amendment
for large chains companies, they did not raise much concern about it.
16 There is no reliable data on entry and exit in the retail sector. However, since the average
establishment size is very low (only 2 people per establishment), the turnover rate is
expected to be high. In spite of high turnover and the economic crisis in 2001, the number
of establishments in the retail sector has continuously increased since 1997.17 For example,
there were 260175 establishments in retail trade18 in 1997, and it increased to 267370 in
1998, 273057 in 1999, 279329 in 2000, and 281911 in 2001. The number of establishments
increased in other retail types and wholesale trade as well.

Although there is a slight increase in the number of retail establishments, the market has
been transformed by the entry and diffusion of “organized” or “modern” retailing (chain
stores, hypermarkets and supermarkets). Migros-Turk, established in 1954, was the first
retail joint-venture between Municipality of Istanbul and the Federation of Swiss
Cooperatives in Turkey (Tokatlı and Boyacı, 1997: 105). However foreign partner
withdrew in 1975 and majority shares of the company were transferred to Koç Holding.
The first supermarket chain in Turkey, Gima, was established in 1956 as a public
undertaking. It was privatized in 1993, and sold to the partnership of Bilfer and Dedeman.

7
An interviewee claimed that major chain stores have already invested in hypermarkets.

9
The majority shares of the company were later sold to Fiba Holding in 1996 (Tokatlı and
Özcan, 1998: 92). Another main retailer, Tansa_, was set up in 1973 by Izmir Municipality.
It was also privatized in 1996 and Dou_ Holding purchased the majority of its shares.
The 1990s witnessed entry by foreign firms. As the first foreign retailer, Metro
International entered into market in 1988. 8(Although Metro adopted the cash-and-carry
format, it is regarded as a “retail” store serving mostly small scale shops and households.)
Carrefour and Promodes, French retailers, entered into market in 1991 and 1992,
respectively (Tokatlı and Boyacı, 1998: 6). Carrefour entered into retailing by establishing
partnership with Sabancı Holding (CarrefourSa) in 1996. The merger by parent companies
of Carrefour and Promodes affected the Turkish retail market, and CarrefourSa acquired
Continent in 2000. After operating ten years in Turkey, Metro planned to set up a joint
venture with Migros in 1998. Although the Competition Board granted a conditional
permission, the merger was not realized. Metro established a new retailer, Real, in 1997,
which was followed by Dia in 1999 and B_M in 2000. The last major foreign entry
occurred in 2003. A leading retail chain store in the UK, Tesco, entered into the Turkish
market in 2003 by merging with Kipa, a regional retailer. The industry analysts suggest
that new foreign retailers, for example, Wall Mart, are planning to enter into the Turkish
retailing market.19 Most of the large domestic chains that entered into the retailing sector in
the 1990s, are members of business groups that operate in FMCG-supplier industries and
service sectors (see Table 6). There seems to be a tendency towards both vertical integration
and horizontal integration. For example, Sabancı and Koç groups are active in supplier
industries and hotels and restaurants sector. In the retail sector, they have different retail
formats (hypermarkets, supermarkets and discount stores) operated under different brands
names. Other retailers also tend to be active in various retail formats and own vertically
related firms (Özcan, 2001). As noted earlier, we have conducted a survey of large FMCG
retailers and FMCG suppliers in Turkey, and received responses from 51 retailers and 79
from suppliers. Table 7 presents the data on the time of establishment of these companies that
can be used as an indication of entry into the retail market by large companies. Our survey
data show that most of the largest retailers operating in 2004 were established in the 1990s.
More than 60 percent of retailers were established in the 1989-1998 period whereas those
established before 1989 represent only 20 percent of retailers. 13 of 51 retailers who
responded to our survey belong to a (domestic) business group, and 5 are foreign-firms.20
Most of companies belonging to business groups and multinational companies were also
established in the 1990s. There is no new large-scale entry since 1998.
The entry pattern of FMCG-suppliers is quite different than the one observed for retailers.
More than half of suppliers who responded to our survey were established before 1984.
This is valid for suppliers who belong to business groups as well. The difference in entry
patterns in retail and supplier sectors indicate that FMCG retail sector, once considered to
be dominated by traditional retailers, has become quite appealing for large companies, and
attracted significant amount of large-scale entry in the 1990s. However, the FMCG supplying
industries seem to be dominated by large, old (established) companies who do

8
Tokatlı, Nebahat and Gül Berna Özcan (1998), “The State and the Corporate Private Sector
in the Recent Restructuring of Turkish Retailing”, New Perspectives on Turkey (18): 79-111.

10
not face with entry competition, as evident in high concentration rates in most of these
industries.

The transformation of the retail market brought by entry of large (chain) companies can be
observed in FMCG purchasing patterns of consumers. We look for purchasing patterns of
four groups of consumers, categorized by their socio-economic status as AB, C1, C2 and D
groups,21 because chain markets operating mainly hypermarkets and large supermarkets
may incline to serve well-to-do consumers who can afford to travel these stores by their
own cars. Figures 1a-1d depict purchasing patterns of four categories of consumers,
respectively. AB group consumers used to purchase their FMCGs mostly from traditional
grocery shops. The share of grocery shops in total FMCG expenditures of the AB group was
more than 35 percent in 1999 but it declined steadily to 22 percent in 2004. The main winners
are local supermarkets, and DVFV and kiosks, gaining about 6 and 3 percentage points
market share, respectively, in the last five years. Thus, local supermarkets have been the
largest retailer for AB group of consumers since 2002. The single most important chain that
achieved a considerable increase in its market share is B_M, a hard discount store. Its
market share for AB group increased from 4 to 12 percent. Migros and _ok seem to be the
losers for the AB group. Their total share declined from 14.2 percent to 8.7 percent in the
same time period.9

Grocery shops have been the main retailer for the C1 group but its share declines
continuously (from 50 percent in 1999 to 35 percent in 2004). Local supermarkets (from
24 percent to 31 percent) and B_M (from 4 percent to 12 percent) are the main winners in
this market as well. Micros has not been an important outlet, and its share fluctuated
around 4 percent. The C2 group behaves as the C1 group. Grocery shops have a declining
share (from 53 percent to 42 percent), and local supermarkets (from 18 percent to 31 percent)
and B_M (from 5 percent to 10 percent) increased their shares.
The D group experienced possibly the most dramatic transformation. Grocery shops had
the dominant share for this group of consumers in 1999 (about 65 percent), but lost their
market drastically (48 percent in 2004). Local supermarkets (from 14 percent to 27
percent), B_M (from 4 percent to 10 percent) and DFV and kiosks (from 2 percent to 7
percent) had increased their shares substantially.10

Although the trends are similar for four categories of consumers (declining shares of
grocery shops, increasing shares of local supermarkets, B_M, and, to some extent, DFV
and kiosks), the levels of market shares of retail formats are still significantly different
across consumer groups. For example, the share of traditional outlets (grocery shops and
open bazaar) was only 22.4 percent for AB group in 2002, it was 35.1 percent for C1
group, 43 percent for C2 group, and 48.6 percent for D group. In a similar way, chain stores
have a larger share in FMCG expenditures of well-to-do consumers. Total share of
all chains (B_M, Carrefour SA, Dia , Gima , Kipa-Tesco, Migros, Real, _ok and Tansa_) was

9
HTP Household Consumption Panel data, 1996.
10
Household Labor Force Survey.

11
35.8 percent for AB group and 28.1 percent, 18.9 percent and only 15.3 percent for C1, C2
and D groups, respectively. However, chain stores excluding B_M have not been successful
in increasing their market shares in the last five years. The combined market share of all
chain stores excluding B_M increased only a few percentage points for AB and C1 groups,
and declined almost the same amount for C2 and D groups. These findings indicate that
large chain stores, as a group, has gained some market share in the early- and mid-1990s,
especially in those markets serving AB and C1 groups, but their market share has been
stabilized. However, local supermarkets and B_M continue to increase their market shares
at the expense of traditional retail formats.
The informal sector is considered as one of the main obstacles for the development of the
“modern” retail sector because informal sector firms, by not paying social security
contributions and any taxes, gain an unfair competitive advantage against firms obeying
laws and regulations. Although it is almost impossible to measure the exact size of the
informal sector, its share in the market can be estimated roughly.
According to the SIS 2003 Household Labor Force Survey, there were 4.1 million people
employed in wholesale and retail trade, hotels and restaurants, and 42 percent of these
people were not covered by any social security system. Thus, more than 40 percent of the
people employed in “wholesale and retail trade, hotels and restaurants” are employed
“informally”.

We have asked in our survey the firms about the extent of the informal sector. Almost
three quarters of retail and suppliers firms indicated that they compete with the informal
sector firms. These firms estimated that the market share of the informal sector was around
30 percent in retail and 20 percent in FMCG supplier sectors. These estimates are
somewhat lower than the estimates derived from the HLFS22, but they indicate that
informal sector continues to play and important role, especially in the retail sector. In spite of
the rapid development of the modern retail formats in Turkey in the last
decade23, their market share is still very low compared to the European countries.
According to AC Nielsen data (AC Nielsen, 2004: 20), the markets shares of hypermarkets
and big supermarkets reached 36.0 percent and 23.3 percent, respectively, in European
countries in 2002 whereas their total share in Turkey in the same year was only 22 percent
(11 percent for hypermarkets and 11 percent for big supermarkets). Among the European
countries, the lowest total share of hypermarkets and big supermarkets was observed in the
Netherlands (25 percent), Austria (29 percent) and Greece (36 percent), and the highest
shares in Portugal (62 percent), the UK (76 percent) and France (77 percent). These
findings indicate that modern retail formats (hypermarkets and big supermarkets) are likely
to increase their market shares substantially in Turkey.

4. Retailers’ conduct :

Large chain stores have entered into the FMCG retail sector in Turkey in the early- and
mid-1990s and have transformed its structure. Although their share in the national market
is still small, they may have significant market power in localities they operate because the
FMCG market is basically a local market. There are different definitions for the
geographical dimension of the market, but it is commonly accepted that a customer is not
likely to move more than 30 km for shopping. Therefore, large retailers’ conduct should be

12
analyzed to shed light on possible abuses of market power. Since retailers sell FMCGs
without any further processing, we will focus on pricing behavior and supplier-retailer
relations.11

We have conducted interviews with about 20 large retailers, and on the basis of our
findings, designed two surveys, one for retailers and the other one for FMCG-suppliers to
get information about retailers’ conduct and retailer-supplier relations. We received
responses from 51 retailer and 79 from suppliers. The responses rates were 50 percent and
40 percent, respectively. Table 8 presents the data about the coverage of these surveys.
According to the SIS statistics, total sales value of the “non-specialized retail trade in stores”
sector (ISIC 521) was $ 14.3 billion in 2001. Total sales of 44 firms who provided
the sales data for 2001 for our survey was $ 2.6 billion. In other words, the surveyed firms
account for at least 18.3 percent of non-specialized retail trade.24 The SIS data are not
available for 2003. However, HTP estimates total FMCG retail sales in 2003 as $14.4
billion. Chains, discounters, hypermarkets and supermarkets sold 4.6 billion worth of
FMCG in the same year. Thus, according to HTP data, our sample of firms covers 30.3
percent of total sales and 94.6 percent of sales by chains and supermarkets.25 These
comparisons suggest that our sample firms provide a good coverage of large retailers. The
coverage ratio for FMCG-supplier industries is also quite satisfactory (18.4 percent of sales
in 2001). The retail firms’ turnover in our sample was around $ 100 million, and they
employed, on average, about 900 people. Suppliers are slightly smaller ($ 78 million
turnover and 750 employees per firm in 2001).

In order to compare our results across firm size, we have classified firms into three
categories, small, medium-sized, and large. Since more retail firms provided their
employment data, we used the number of employees in 2003 for classification for the retail
sector (small means employing less than 150 people, medium-sized 150-499 people, and
large 500 and more people). However, for those firms we have sales data, the
classifications based on employees and turnover were almost the same. For suppliers firms,
we used turnover data for 2003 for classification (small means turnover less than $20
million, medium-sized $ 20-50 million, and large more than $ 50 million). The cut-off
values are chosen such that firms are more-or-less equally distributed in these three
categories.12

Table 9 shows the distribution of firms across size categories. All five foreign firms in the
retail sector are large firms. Moreover, all but one firm that belong to business groups are
medium-sized and large firms. There are 9 foreign firms in our sample of suppliers (11
percent of all firms). There are two small, one medium-sized and five large foreign
suppliers. Suppliers belonging to business groups are, on average, large firms. There is a
strong positive correlation between retailer size and store size (see Table 10).
Small retailers do not own any hypermarket, and concentrate on supermarkets and small
supermarkets (store area between 100-1000 m2). A few medium-sized retailers operate
some hypermarkets, but their preferred type is a supermarket with 400-1000 m2 store area.
Almost all hypermarkets are operated by large retailers who have also a large number of

11
High inflation rates in the 1990s, of modern retail formats.
12
Since the surveyed firms are large firms, they account a smaller share of employment.
13
small supermarkets. Foreign retailers operate either hypermarkets or small supermarkets.
An analysis of large domestic and foreign retailers at the firm reveals clear differences in
firm strategies. More than 80 percent of small supermarkets of large domestic firms are
operated by only two firms, whereas there is only one foreign firm that operates small
supermarkets. In other words, most of large firms, either domestic or foreign, concentrate
on operating relatively small number of large stores (hypermarkets, large supermarkets,
etc.) whereas a few large firms have been following the strategy of opening a large number
of small supermarkets all around the country.

Estimates on total store area indicate that large retailers have a dominant position. 11 large
domestic retailers had 58 percent of total store area whereas 4 large foreign retailers had 28
percent in 2003. The number of products sold by a retailer changes positively by size as well.
Small and medium-sized retailers sell about 9000 and 12000 products, respectively. Large
retailers sell a large number of products, about 24000. The survey questionnaire included
questions that define the “relevant market” for retailers. Three aspects of the market,
consumers’ socio-economic status, retail format, and geographical market, are used to define
the “relevant market”. There seems to be no difference between small and large retailers in
terms of serving different categories of consumers. Large retailers claim to serve all
categories more, but there is not any specialization towards serving any specific consumer
group. As may be expected, all retailers indicate that “supermarkets” constitute the main
competitive form. 75 percent of large retailers consider hypermarkets as a part of their
market. It is interesting to observe that discount markets and cash & carry are closely related
with large retailers’ markets. 17 Geographical aspect seems to be main aspect that defines the
“relevant market” for retailers. Almost all small and medium-sized retailers consider their
market as local (only one province), or regional whereas half of large retailers consider the
market as a national market. Moreover, the market is conceived as “international” by one
third of large retailers (5 firms). It is interesting that only one foreign retailer considers its
market as “international” whereas others (4 firms) consider it as national and/or regional.

Firms were asked to provide data on the number of entrants into and exits from the market
in which they operate. Most of the firms (60 percent) could not respond to this question.
The average values for the number of entrants and exits were 3.6 and 2.5 for retailers, and
12.3 and 12.1 for supplies. Firms estimated their market share in 2003. Interestingly, small
retailers estimated larger market shares, probably because of the fact that, as note earlier,
they consider their market local. In the case of FMCG-suppliers, large firms claimed to
have larger shares, as one would expect, because suppliers’ compete mainly at the national
level.

5. The future :

The organized retail market (local supermarkets and chain stores) have grown rapidly at
the expense of traditional retail formats (grocery shops and open bazaar). Of course,
organized retailers face with certain problems in developing their businesses. They claim
that (high) tax rates restrict their growth (Table 19). This is the most important obstacle
cited by small and medium-sized retailers. In addition to taxes, land/store availability and
competition from informal firms are also important barriers for further growth of the

14
organized retail sector. It seems that urban areas develop without a proper implementation
of well-designed city planning in Turkey. This has the most adverse effect on retailing
sector. Since it is rather difficult to find an estate suitable for a large-scale store in city
centers, the rents and prices for suitable places/areas in city centers may reach prohibitive
levels. In order to overcome this problem, the large-scale retailers prefer to acquire
supermarkets located in central areas. The lack of suitable locations acts as a significant
entry barriers for supermarkets and large chains, and prevents their rapid diffusion.
Small and medium-sized retailers consider competition from large chain stores as a
noteworthy obstacle. Regulations, macroeconomic uncertainty, costs of financing financial
and transportation facilities are only partially important. Interestingly, consumer demand is
among the least important factor that inhibits retailers’ growth. This is a striking finding
because the SIS survey on capacity utilization finds consistently that the most important
reason for underutilization of production capacity in manufacturing industries in Turkey is
the lack of (domestic) demand.

29 Retail characteristics that determine competitiveness provide the clue to understand which
retail formats are likely to grow in the future. All retailers, large and small, said that the most
important determinant of competitiveness in the retail sector is stores’ location (Table 20). It
is followed by quality-related aspects (product quality, product range/ diversity, and retailer's
brand/reputation), and prices (promotions, proximity to consumers, and prices). Other
services offered by the retail (parking, packing, store’s appearance and loyalty cards) are
slightly less important than quality and prices. Product brand is also among the partially
important factors. Given those factors, retailers (and suppliers as well) believe that
hypermarkets, supermarkets and discounters will increase their market shares in the next
decade. Some suppliers (20 percent of all suppliers) predict that cash & carry and gas station
markets will also increase their markets shares. There is almost no firm that
believes that grocery shops, open bazaars and specialized markets (butchers, green
groceries, etc.) will be able to increase their market shares. Consistent with these
predictions, all large retailers who responded to the survey plan to open new stores in the
next three years. There are three out of 17 medium-sized and 4 out of 14 small retailers that
do not envisage any increase in the number of stores. No retailer predicts any contraction
in the number of stores it currently operates. One small retailer stated that it plans to exit
from the market in the next three years.
Almost all retailers and suppliers (about 90 percent of firms) expect that foreign retailers’
market share will increase in the next decade (Table 21). The proportion of small retailers
that expect an increase in foreign presence is a little lower (75 percent). Those firms that
predict foreign entry in the retail market believe that, as a result of foreign entry, retail
prices will decline somewhat, and product quality and diversity will increase to a large
extent. Retailers, especially small ones, are skeptical on the impact of foreign entry on
domestic suppliers’ production, but suppliers, especially small ones, are hopeful that
domestic suppliers’ production may increase as a result of foreign entry.

As noted in the second section of this study, there is no specific law regulating the retail
market in Turkey. A draft law prepared last year initiated an intense debate on a number of
issues. It is obvious that almost all retailers and suppliers are in favor of having a law
regulating the retail market (Table 22). Majority of retailers (67 percent) and almost all

15
suppliers (90 percent) support the idea that the law should impose restrictions on belowcost
sales. The stance of suppliers on this issue is consistent with their opinion that below30
cost sales are harmful for suppliers. Suppliers are also strongly in favor of restrictions on
payment conditions and exclusivity agreements whereas small and medium-sized retailers
are indifferent and large retailers are weakly against these restrictions. While retailers,
especially large ones, are against restrictions on promotions, suppliers are somewhat in
favor of these restrictions, too. Overall, suppliers seem to be worried that retailers could
pass on the costs of fierce competition in the market on their shoulders.

The issue of imposing restrictions on private label sales by retailers (such as 20 percent
ceiling) is a contested area where suppliers and retailers, and small and large firms disagree
each other. Large retailers who can capitalize on the reputation they establish in the market
by selling more private label products are against restrictions on private label sales,
whereas medium-sized and large suppliers, who consider private label as a threat to their
national brands, are in favor of these restrictions. Small and medium-sized retailers, who
may not benefit much from private label products, are somewhat in favor of restrictions,
and small suppliers, whose position may not differ under private label production, are
indifferent. Private label products seem to be a tool that may shift the benefits of brand
name advantages in favor of large retailers.

6. Issues for competition Policy:

The conduct of firms in the retail and supplier sectors has received considerable attention
due to its direct impact on consumers. There have been 23 complaints on retailers made to
the Competition Authority in the period 1998-2003. Most of these complaints are about
below-cost selling and discriminatory practices.

The common feature of below-cost selling complaints is the claim that hypermarkets sell
their products at excessively low prices that may force small retailers to exit from the
market. According to the Competition Law, below-cost selling or excessively low prices
can be deemed as the violation of the law only if the undertaking concerned has a dominant
position in the relevant market. The law defines dominant position as “any position
enjoyed in a certain market by one or more enterprises by virtue of which, those enterprises
have the power to act independently of their competitors and purchasers in determining
31 economic parameters such as the amount of production or distribution, price and supply”.
The Competition Board rejected all complaints about below-cost selling as out of scope by
arguing that the dominant position of any hypermarket in the relevant market is unlikely
because of low concentration ratios in the market, low entry barriers and dynamic market
conditions.13

Other main complaints brought before the Competition Board are concerned with
discriminatory practices done by suppliers against small retailers in favor of large retailers.

13
Frito-Lay-salty-snack market in Turkey, traditional retailers, in the period 1998-2003.

16
Complaints were generally brought by small retailers or the Chamber of Small Grocery
Shops (Bakkallar Federasyonu Odası ). They claimed that suppliers sell their products
under more favorable conditions to large retailers. The Competition Board deemed almost
all these complaints as out of scope because it decided that small retailers and large
retailers are not in equivalent position because of differences in their sizes, volumes of
purchased products, product diversity, etc. There are two cases of infringement of the
Competition Law. The Competition Board decided in the case brought by the Istanbul Food
Wholesale Traders Association (IGTOD) that a number of large food suppliers (Benckiser,
Sezginler, Ülker, Besler, Eczacıba_ı Procter & Gamble, Marsa Kraft Jacobs Suchard,
Unilever, and LeverElida) violated the law by imposing sales restrictions on their distributors.
Likewise, another food supplier
(Frito-Lay) was found to be abusing its market power by imposing exclusivity restrictions
on retailers.
34 There have been five merger cases in retail trade brought before the Competition Board
since 1998. In the first case, Metro and Migros joint venture (1998), the Board granted a
conditional permission, but the venture was not established later on. In all other cases,
Dougas Holding-Tansa_(1999), Carrefour-Continent (2000), Tesco-Kipa (2003), and
Carrefour-Gima/Endi (2005) the Board permitted mergers unconditionally. As noted earlier,
there is no special legislation regarding the establishment of large retailers in Turkey. 14
There have been several attempts to introduce a law for this purpose, and three
draft laws were brought before the Competition Board in recent years. Although there were
some differences between these laws, the common aim was to help small retailers
(groceries, green groceries, etc.) by forcing large stores to be located “outside” the city.
The first draft law prepared in 2001 aimed at regulating the establishment of stores having
a sales area greater than 250 m2 subject to the permission obtained from a Board composed
of the Municipality, Chamber of Commerce, Competition Board and consumer
associations. The Board would give its decision by considering the location (its distance to
the city centre), demand and supply conditions in the city concerned, and the
competitiveness of small retailers. The same procedure would apply to the stores that are
larger than 1000 m2 that would be located 5 km away from the city centre. The second draft
law was prepared by Ministry of Trade and Industry in 2003. The difference between the first
and second laws was the fact the latter one did not envisage any special Board. It assigned the
authority to the governor or the Ministry of Industry and Trade according to size of large
stores. It also included provisions that prohibited certain forms of conduct (predatory pricing
tactics, etc.) that could be addressed indirectly under the Competition Act. The last draft law
was put on the agenda in 2004. Those above-mentioned prohibitions were excluded from
draft law after the Competition Board’s objections. Although there are some improvements in
the new draft law, the Competition Board opposed to two issues concerning restriction of
private label sales by large stores (the draft law envisaged 20 percent limit for private label
sales) and limitations on low-price sales promotions. The Competition Board states that these
restrictions harm consumers (by preventing price competition) and small and medium-sized
manufactures (who can gain competitive advantage by producing private label products for
large retailers). It seems that the law is not agenda of the government, and is not likely to be
enacted in recent future. Although most of the retailers and suppliers who participated in our

14
Dougas Holding-Tansa_(1999), Carrefour-Continent (2000), Tesco-Kipa (2003), and
Carrefour-Gima/Endi (2005).
17
survey stated that they welcome a law on regulating the retail market, restrictions on different
forms of 33 competitive practices and on the location of large stores need to be tackled with
care. Since the competition law provides sufficient safeguards against any anti-competitive
behavior, there may not be any need to introduce additional general restrictions. The idea of
protecting small retailers by imposing a ban on the establishment of new large stores
around the city center is also questionable because it basically helps the incumbent large
retailers. The issue of land provision for large stores and shopping centers can be better
dealt within the context of urban planning.

2.4: DIGITAL MARKETING:

Digital marketing is the marketing of products or services using digital technologies, mainly
on the Internet, but also including mobile phones, display advertising, and any other digital
medium. Digital marketing's development since the 1990s and 2000s has changed the way
brands and businesses use technology for marketing. As digital platforms are increasingly
incorporated into marketing plans and everyday life, and as people use digital devices instead
of visiting physical shops, digital marketing campaigns are becoming more prevalent and
efficient.

Digital marketing methods such as search engine optimization (SEO), search engine
marketing (SEM), content marketing, influencer marketing, content automation, campaign
marketing, data-driven marketing, e-commerce marketing, social media marketing, social
media optimization, e-mail direct marketing, display advertising, e–books, and optical disks
and games are becoming more common in our advancing technology. In fact, digital
marketing now extends to non-Internet channels that provide digital media, such as mobile
phones (SMS and MMS), callback, and on-hold mobile ring tones.15

WHAT IS DIGITAL MARKETING?

At a high level, digital marketing refers to advertising delivered through digital channels such
as search engines, websites, social media, email, and mobile apps. While this term covers a
wide range of marketing activities, all of which are not universally agreed upon, we’ll focus
on the most common types below.

2.5: DEFINITION OF 'DIGITAL MARKETING':

Digital marketing is a subcategory of marketing that uses digital technology to place and sell
products. Product promotion is done, not only on the internet, but also via Short Message
Service (SMS), Simple Notification Service (SNS), search engine optimization (SEO),
electronic or interactive billboards and other online ads (such as banner ads).

15
https://en.wikipedia.org/wiki/Digital_marketing

18
 2.6: INTRODUCTION:

PAID SEARCH:

Paid search, or pay-per-click (PPC) advertising, typically refers to the “sponsored result” on
the top or side of a search engine results page (SERP). You only pay when your ad is clicked.
You can tailor your PPC ads to appear when specific search terms are entered, creating ads
that are targeted to a particular audience.
PPC ads are flexible, visible, and most importantly, effective for many different types of
organizations. They are also contextual advertisements—ads that appear when a person is
searching for a particular keyword or term.

SEARCH ENGINE OPTIMIZATION (SEO):

Simply put, search engine optimization (SEO) is the process of optimizing the content,
technical set-up, and reach of your website so that your pages appear at the top of a search
engine result for a specific set of keyword terms. Ultimately, the goal is to attract visitors to
your website when they search for products, services, or information related to your business.
SEO can almost be viewed as a set of best practices for good digital marketing. It enforces
the need for a well-constructed and easy-to-use website, valuable and engaging content, and
the credibility for other websites and individuals to recommend you by linking to your site or
mentioning it in social media posts.

CONTENT MARKETING:

Have you heard the expression, “Content is king?” If not, you have now. Great content is the
fuel that drives your digital marketing activities:
It is a key pillar of modern SEO , It helps you get noticed on social media. It gives you
something of value to offer customers in emails and paid search ads.
Creating clever content that is not promotional in nature, but instead educates and inspires, is
tough but well worth the effort. Offering content that is relevant to your audience helps them
see you as a valuable source of information. On top of that, resourceful content makes it less
likely that they will tune you out.16

SOCIAL MEDIA MARKETING:

People aren’t just watching cat videos and posting selfies on social media these days. Many
rely on social networks to discover, research, and educate themselves about a brand before
engaging with that organization. For marketers, it’s not enough to just post on your Facebook
and Twitter accounts. You must also weave social elements into every aspect of your

16
https://www.investopedia.com/terms/d/digital-marketing.asp

19
marketing and create more peer-to-peer sharing opportunities. The more your audience wants
to engage with your content, the more likely it is that they will want to share it. This
ultimately leads to them becoming a customer. And as an added bonus, they will hopefully
influence their friends to become customers, too.

EMAIL MARKETING:
Email has been around for more than two decades, and it’s not going anywhere anytime soon.
It’s still the quickest and most direct way to reach customers with critical information. The
reason is simple: Consumers are very attached to their emails. Just ask yourself how many
times you have checked your email in the past hour...See what we mean?
But great marketers know that not just any email will do. Successful email campaigns must
be engaging, relevant, informative, and entertaining. To succeed, your marketing emails
should satisfy these five core attributes:
1. Trustworthy 2. Relevant 3. Conversational
4. Be coordinated across channels 5. Strategic

MOBILE MARKETING:

As mobile devices become an increasingly integral part of our lives, it’s vital that marketers
understand how to effectively communicate on this unique and extremely personal channel.
Mobile devices are kept in our pockets, sit next to our beds, and are checked constantly
throughout the day. This makes marketing on mobile incredibly important but also very
nuanced.
From SMS and MMS to in-app marketing, there are many ways to market on mobile devices,
so finding the right method for your particular business is key. Beyond the mechanisms to
deliver your message, you also need to think about coordination of your marketing across
digital channels and make sure mobile is a part of that mix.

MARKETING AUTOMATION:

Marketing automation is an integral platform that ties all of your digital marketing together.
Without it, your campaigns will look like an unfinished puzzle with a crucial missing piece.
Marketing automation software streamlines and automates marketing tasks and workflows.
Most importantly, it measures the results and ROI of your digital campaigns, helping you to
grow revenue faster. When used effectively, marketing automation will help you gain much-
needed insight into which programs are working and which aren’t. It will give you the
metrics needed to speak confidently about digital marketing’s impact on the bottom line.17

17
https://www.marketo.com/digital-marketing/

20
INFORMATION:

Digital marketing targets a specific segment of the customer base and is interactive. Digital
marketing is on the rise and includes search result ads, email ads and promoted tweets –
anything that incorporates marketing with customer feedback or a two-way interaction
between the company and customer.Internet (a.k.a. online) marketing differs from digital
marketing. Internet marketing is advertising that is solely on the Internet, whereas digital
marketing can take place over the telephone, on a subway platform or in a video game.
In the parlance of digital marketing, advertisers are commonly referred to as sources, while
members of the targeted ads are commonly called receivers. Sources frequently target highly
specific, well-defined receivers. For example, after extending the late-night hours of many of
its locations, McDonald's needed to get the word out. It targeted shift workers and travelers
with digital ads, because the company knew that these people made up a large segment of its
late night business. McDonald's encouraged them to download a new Restaurant Finder app,
targeting them with ads placed at ATMs and gas stations, as well as on websites that it new
its customers frequented at night.

MARKETING MESSAGES:

Digital marketing is used to market more than just products and services. It is widely used to
sell people on things such as companies, political parties and ideas. Political parties use
digital marketing to target voters with positive SMS messages about their candidates and
negative SMS messages about their candidates' opponents, and tailor ads to receivers who
frequent particular digital channels, such as Facebook newsfeeds and YouTube channels.
McDonald's created a digital "Kick the Trash" campaign to counter negative press in
Germany that called the company's outside areas dirty.

DIGITAL MARKETING CHALLENGES:

Digital marketing poses special challenges for its purveyors. Digital channels are
proliferating rapidly, and digital marketers have to keep up with how these channels work,
how they're used by receivers and how to use these channels to effectively market things. In
addition, it's becoming more difficult to capture receivers' attention, because receivers are
increasingly inundated with competing ads. Digital marketers also find it challenging to
analyze the vast troves of data they capture and then exploit this information in new
marketing efforts.
The challenge of capturing and using data effectively highlights that digital marketing
requires a new approach to marketing based on a new understanding of consumer behavior.
For example, it may require a company to analyze new forms of consumer behavior, such as
likes on Facebook and tweets on Twitter.18

18
https://www.investopedia.com/terms/d/digital-marketing.asp
21
 2.7: 8 Benefits and importance of digital marketing:

1. Opens up growth options for small businesses:

Importance of digital marketing for business lies in the option to select your method of
marketing as per your budget and reach a wider audience at a lesser cost. Even a decade back
getting your product marketed especially for a small business was a task in itself. Most of the
expensive models were just out of their reach and they had to resort to small level methods
where the guarantee of success was close to negligible. The digital modes of marketing are
customizable and hence much cheaper. If you are trying to make a foray into an already
established market you can still make your presence felt by targeting a small base of
customers.

2. The conversion rate is higher:

The businesses that are using online as the preferred mode of marketing are able to measure
the conversion rate through real time using a simple method. That is identifying the
percentage of viewers who get converted into leads and then subscribers and in the end
finally purchasing the service or product. SEO, Social media marketing and Email marketing
are methods which have a high conversion rate as they are able to generate a quick and
effective communication channel with the consumer.

Surprisingly all the traffic that you may get on your website may not be fruitful hence digital
marketing lets you reach out to only those who have the need for your kind of service hence
offering better lead conversions.19

19
http://technians.com/blog/benefits-importance-digital-marketing/

22
3. Customer support has become a priority:

For any business to survive the one thing that they really need to work upon is establishing a
reputation which is impeccable. In the past few years, it has become evident that customers
will always prefer a company which does not have any scandals associated with it.
Importance of Digital marketing today lies in offering you multiple ways to establish a
personal rapport with your customer base. Be it email marketing or social media you can
always offer the customer solutions to their problems and make them relate to your product
by even providing live chat access. Your website and social media page can easily be
converted into a place where the consumer can ask queries, give suggestions and hence take
the association with you on a positive level.20

4. Get connected to the mobile customers:

After Google mobile first update nearly almost all the websites these days are made in a
manner that they are easily viewable on the mobile as well. This is because that almost all
customers have access to a smartphone and most of them even look for products on the same.
In many instances, customers have changed their purchase plan and picked up a product from
a different brand just because they were convinced that the new product has a much better
functionality.

5. Increase the trust for your brand:

The presence of your brand and service on multiple platforms gives the option to customers
to rate your services as per their level of experience. A positive and favorable review left by a
satisfied customer causes the new ones to immediately convert. These days contacting the

20
https://www.lyfemarketing.com/blog/benefits-digital-marketing/

23
social media page of a brand for issue resolution and other matters is a common thing to do.
This, in turn, leads to the building up of strong image of the brand in the minds of the new
consumers hence leading to more conversions.21

6. Better ROI for your investment :

While earlier budget allocations were done individually to handle each kind of marketing
medium the situation becomes more progressive now. Being digital you have access to
packages at different levels of costing hence ensuring that you can pick up one which suits
your budget best. Even a small level of investment done in a mode like email marketing has
the potential to deliver results in terms of customer’s engagement. Using web analytics helps
the business owners know whether your website is providing optimal ROI. While the website
may not be generating revenue for you directly you can always track conversion rate of
enquiries made through email and telephone calls to sales.

7. Digital marketing is cost effective:

A small business needs to save up on its resources before it finally goes into the green zone
and starts making profits. Digital marketing gives you the scope to reach out to many
customers at the same time and that too within your budget. You can plan your marketing
strategy such that you only use modes which lie in your budget. If there is a desire not to
extend the budget then you can always target niche audiences who you know would
definitely like and appreciate the concept of your offering.

8. Potential to earn higher revenues:

Since the amount of money invested is less and the ROI more the scope to make money is
much higher. As per a study conducted by IPSOS Hong Kong in accordance with Google has
shown that compared to traditional methods, digital marketing is known to generate 2.8 times
more revenue. This coupled with the fact that the conversion rates here are much high ensure
that you are minting money as soon as you enter the fray. For organizations which are
formulating their strategies keeping money in mind, this also means a faster movement
towards the growth path they want to be on.
The future of digital marketing seems very bright at the moment. However, while brands
were earlier competing with each other’s marketing strategy now the focus has shifted to a
fight against the entire internet. This is the time when brands will have to use different modes
and ways to actually delve and make an impact on the customers. Surviving in such cut throat
competition is only possible if you can devise and implement a marketing strategy which
portrays your uniqueness and gives the customers a reason to opt for you.22

22
https://mytasker.com/blog/benefits-of-digital-marketing/

24
 2.8: BRAND AWARENESS:

Brand awareness refers to the extent to which customers are able

to recall or recognize a brand. Brand awareness is a key consideration in consumer
behavior, advertising management, brand management and strategy development. The
consumer's ability to recognize or recall a brand is central to purchasing decision-making.
Purchasing cannot proceed unless a consumer is first aware of a product category and a brand
within that category. Awareness does not necessarily mean that the consumer must be able to
recall a specific brand name, but he or she must be able to recall sufficient distinguishing
features for purchasing to proceed. For instance, if a consumer asks her friend to buy her
some gum in a "blue pack", the friend would be expected to know which gum to buy, even
though neither friend can recall the precise brand name at the time.
Different types of brand awareness have been identified, namely brand recall and brand
recognition. Key researchers argue that these different types of awareness operate in
fundamentally different ways and that this has important implications for the purchase
decision process and for marketing communications. Brand awareness is closely related to
concepts such as the evoked set and consideration set which describe specific aspects of the
consumer's purchase decision. Consumers are believed to hold between three and seven
brands in their consideration set across a broad range of product categories. Consumers will
normally purchase one of the top three brands in their consideration set.

Ease of Access:

A key objective is engaging digital marketing customers and allowing them to interact with
the brand through servicing and delivery of digital media. Information is easy to access at a
fast rate through the use of digital communications. Users with access to the Internet can use
many digital mediums, such as Facebook, YouTube, Forums, and Email etc. Through Digital
communications it creates a Multi-communication channel where information can be quickly
exchanged around the world by anyone without any regard to whom they are. Social
segregation plays no part through social mediums due to lack of face to face communication
and information being wide spread instead to a selective audience. This interactive nature
allows consumers create conversation in which the targeted audience is able to ask questions
about the brand and get familiar with it which traditional forms of Marketing may not offer.23

Competitive Advantage:

By using Internet platforms, businesses can create competitive advantage through various
means. To reach the maximum potential of digital marketing, firms use social media as its
main tool to create a channel of information. Through this a business can create a system in
which they are able to pinpoint behavioral patterns of clients and feedback on their
needs. This means of content has shown to have a larger impingement on those who have a

23
Öztürk, C. M. (Ed.) (2013) Dijital İletişim ve Yeni Medya, Anadolu Üniversitesi Yayını:
2956, Eskişehir.

25
long-standing relationship with the firm and with consumers who are relatively active social
media users. Relative to this, creating a social media page will further increase relation
quality between new consumers and existing consumers as well as consistent brand
reinforcement therefore improving brand awareness resulting in a possible rise for consumers
up the Brand Awareness Pyramid. Although there may be inconstancy with product
images; maintaining a successful social media presence requires a business to be consistent in
interactions through creating a two way feed of information; firms consider their content
based on the feedback received through this channel, this is a result of the environment being
dynamic due to the global nature of the internet. Effective use of digital marketing can result
in relatively lowered costs in relation to traditional means of marketing; Lowered external
service costs, advertising costs, promotion costs, processing costs, interface design costs and
control costs.24

Effectiveness:

Brand awareness has been proven to work with more effectiveness in countries that are high
in uncertainty avoidance, also these countries that have uncertainty avoidance; social media
marketing works effectively. Yet brands must be careful not to be excessive on the use of this
type of marketing, as well as solely relying on it as it may have implications that could
negatively harness their image. Brands that represent themselves in an anthropomorphizing
manner are more likely to succeed in situations where a brand is marketing to this
demographic. "Since social media use can enhance the knowledge of the brand and thus
decrease the uncertainty, it is possible that people with high uncertainty avoidance, such as
the French, will particularly appreciate the high social media interaction with an
anthropomorphized brand." Moreover, digital platform provides an ease to the brand and its
customers to interact directly and exchange their motives virtually.
Treat online as offline: If online shopping is increasing, then customer visits represent an
opportunity for FMCG brands to be present there. Consumers may not buy the brands but it
acts like an online shelf space where they need to be present and be available. Also, being a
digital medium, the brands that can be placed on these online shelf spaces can be flexible and
contextual. If a customer is buying fashion apparel, then the relevant brands need to be
positioned next to these online shelves. The FMCG brands can invite customers to ask for
more information, urge them to download mobile apps, request coupons, drive trials and
such. Imagine being present in every market area and outlet — that will be the digital strategy
thinking that needs to be brought to play. FMCG marketers know this the best.
Convert digital presence into conversations: If presence in online marketplaces was the first
objective and key metrics were designed to assess the percentage of brands’ presence, the
next objective is to see how to convert presence into conversations. Normally, most often, in
the offline world, dominating shelf space leads to purchases.
In the digital world, online shelf space must lead to moving into the device basket and then to
the shopping basket. This, therefore, converts into having a direct two-way dialogue with
consumers. Digital enables ongoing connections using a range of channels and platforms —

24
Van Niekerk, A (2007). "Strategic management of media assets for optimizing market
communication strategies, obtaining a sustainable competitive advantage and maximizing
return on investment: An empirical study". Journal of Digital Asset Management. 3 (2): 89–
98. doi:10.1057/palgrave.dam.3650070.
26
via mobile, social and CRM through useful services and utilities delivered on mobile. This
enables personalised dialogue across multiple interest areas, bridging the audience’s passion
with the brand objectives.25

Leverage the big data eco-system:

Big data creates big engagement opportunities for FMCG brands. Conversations can be
contextual and intelligent – based on a host of third-party APIs. For example, if it was a
sunscreen brand, using the weather APIs, I would intelligently engage in conversation
through the mobile app. The brand could provide contextual advice, recommend solutions
and during the course of the conversation request trial and purchase. Also, location data can
be used effectively to recommend customers to nearest stores where they are doing their
promotions or even inform these customers about the new promotional offers.
Similarly, mobile-based platforms to connect distributors and retailers to leverage B2B digital
opportunities can be unique for the Indian marketplace.

Re-imagining the last mile in the FMCG journey:

Often, there is a gap in the last mile data between the retailer and consumer’s off-take. If
digital is able to bridge this last mile for FMCG marketers, it can be transformational in terms
of digital distribution for various categories. There are interesting digital innovations that are
possible here. Very little has been done to date, as modern retail still contributes a small
percentage of the overall share of sales. There are interesting cross-learning opportunities to
be inspired by — for example, how digital banking has changed the way consumers do their
banking transactions and investments today. Digital can create ‘connected customer
experiences’ right through the consumer buying cycle for FMCG companies and it is
imperative to re-imagine digital in this new context.

2.9: USES OF DIGITAL:

Digital marketing has changed the marketing mix for FMCG sectors - changing the way
marketers communicate. Successful marketing strategies demand the right consumer insights
and channel selection as the media landscape continues shifting. To keep you on top of how
digital marketing is changing.
Proliferation in internet connectivity, evolution of new business models and increase
in digital media consumption would provide companies enormous opportunity to create
value. Others who fail to capitalise on these opportunities would be under pressure. FMCG
companies can make three disruptive moves to win in the digital world:
Shaping digital influence: This entails connecting with the consumers along the purchase
pathway by building brand equity online and creating strong advocates for the brand.
Winning with E-commerce: Creating a profitable e-commerce business entails strategic
choices around the channel - brand.com or/and market places/vertical specialists. Companies
would need to think through operating choices to avoid channel conflict.26

25
Hudson, S., Huang, L., Roth, M. S., & Madden, T. J. (2016). The influence of social media
interactions on consumer–brand relationships: A three-country study of brand perceptions
and marketing behaviors. International Journal of Research in Marketing, 3327-
41. doi:10.1016/j.ijresmar.2015.06.004
27
Digitising operations: Companies can create substantial value by leveraging digital across the
value chain to enhance efficiency and effectiveness of operations. To realise these
opportunities, some old world capabilities need to be recast, while others need to be built
afresh.

Recasting old world capabilities: Capabilities from the physical world such as product
placement, supply chain, and partnership with retailers need to be recast for the digital world.

Building new capabilities: Companies would need to build new "fit for purpose" capabilities
to compete in the digital world. These would include analytics based decision making, a
digital ready organisation, and a nimble IT system that allows companies to follow a 'test,
scale and grow' approach in digital.

Take a top-down view to the opportunity:

Most FMCG companies are unclear on the opportunity it provides for them. We recommend
companies take a top-down view of the opportunity: the likely revenue (& associated profit
pools) and degree of digital influence for each category.

The answer would vary by category very significantly.

In some categories, e.g. health/ OTC, e-commerce would grow to account for 12-15 per cent
of category sales by 2025 while other, e.g. staples, laundry, contribution from e-
commerce would be much lower. Similarly for some categories e.g. baby food, degree of
online influence would be significant (5-7 per cent), yet e-commerce contribution would
continue to be low (2-4 per cent).

26
Maw-Liann Shyu; Wan-Ju Chiang; Wen-Yuan Chien; Sheng-Liang Wang (1 July 2015).
"Key Success Factors In Digital Marketing In Service Industry and the Development
Strategies: A Case Study On Fleur DE Chine At Sun Moon Lake". The international Journal
of organizational innovation.
28
Companies need to assess their starting position, investment appetite and the trajectory they
would undertake (e.g. would they lead/actively shape online or be a follower). This strategic
view would determine the level and shape of the investment required.
Within the same category, organizations may choose to take different paths e.g. a leading
FMCG global player has an evolved digital offering (self-owned e-commerce portal with the
option of personalized offerings for consumers, active social media engagement, social
listening for generating rich insights) for its premium portfolio while continuing to have a
basic digital presence for rest of the portfolio.27

Take a data driven approach: There is a clear opportunity for companies to revisit both the
strategic stance (level and shape of spend) and the effectiveness of spend. Companies need to
re-examine the following strategic choices:
 What should be the level of spend in digital?
 What digital platforms is the core consumer engaging in? Hence, what platforms
should we invest in?
 What would be objectives for selected platforms and what campaign tactics and
engagement techniques should be adopted?
While most companies has started to measure effectiveness of their spend through specific
metrics tied to given objectives, companies further ahead on the maturity curve have taken a
programmatic media buying approach which seeks to buy specific digital audiences rather
than buying an inventory of click through.
Provide rich content and engage communities:
Digitally influenced consumers spend considerable time online engaging with the brand
across the purchase pathway. Most companies have created rich, immersive content on their
websites/ online platforms. Best in class companies are pushing the envelope further to create
content that is personalized, adapted to micro-segments of consumers and co-creating
products/solutions. A key strategic choice is leveraging existing social medial platforms v/s
building own platforms to drive community engagement. The decision would be based on:
Level of engagement: Existing social media platforms help the brand achieve rapid reach,
however, own platforms allow much deeper engagement relationships and rich insights.
Starting position: For brands with limited social media presence, harnessing an owned
platform would entail considerable efforts; however, if the brand enjoys a high social media
following, migrating the fan base to an owned platform would be relatively lower effort.
There are a number of ways brands can use digital marketing to benefit their marketing
efforts. The use of digital marketing in the digital era not only allows for brands to market
their products and services, but also allows for online customer support through 24/7 services
to make customers feel supported and valued. The use of social media interaction allows
brands to receive both positive and negative feedback from their customers as well as
determining what media platforms work well for them. As such, digital marketing has
become an increased advantage for brands and businesses.
It is now common for consumers to post feedback online through social media sources, blogs
and websites on their experience with a product or brand. It has become increasingly popular
for businesses to use and encourage these conversations through their social media channels

27
Nielsen (17 December 2015). "Tops of 2015: Digital". Nielsen Insights Media and
Entertainment. Nielsen. Retrieved 24 March 2016.
29
to have direct contact with the customers and manage the feedback they receive
appropriately.28
Word of mouth communications and peer-to-peer dialogue often have a greater effect on
customers, since they are not sent directly from the company and are therefore not planned.
Customers are more likely to trust other customers’ experiences. Examples can be that social
media users share food products and meal experiences highlighting certain brands and
franchises. This was noted in a study on Instagram, where researchers observed that
adolescent Instagram users' posted images of food-related experiences within their social
networks, providing free advertising for the products.
It is increasingly advantageous for companies to use social media platforms to connect with
their customers and create these dialogues and discussions. The potential reach of social
media is indicated by the fact that in 2015, each month the Facebook app had more than 126
million average unique users and YouTube had over 97 million average unique users.

2.10: APPROACH:

In order to engage customers retailers must shift from a linear marketing approach of one-
way communication to a value exchange model of mutual dialogue and benefit-sharing
between provider and consumer. Exchanges are more non-linear, free flowing, and both one-
to-many or one-on-one. The spread of information and awareness can occur across numerous
channels, such as the blogosphere, YouTube, Facebook, Instagram, Snapchat, Pinterest, and a
variety of other platforms. Online communities and social networks allow individuals to
easily create content and publicly publish their opinions, experiences, and thoughts and
feelings about many topics and products, hyper-accelerating the diffusion of information.The
Nielsen Global Connected Commerce Survey conducted interviews in 26 countries to
observe how consumers are using the Internet to make shopping decisions in stores and
online. Online shoppers are increasingly looking to purchase internationally, with over 50%
in the study who purchased online in the last six months stating they bought from an overseas
retailer. Using an omni-channel strategy is becoming increasingly important for enterprises
who must adapt to the changing expectations of consumers who want ever-more sophisticated
offerings throughout the purchasing journey. Retailers are increasingly focusing on their
online presence, including online shops that operate alongside existing store-based outlets.
The "endless aisle" within the retail space can lead consumers to purchase products online
that fit their needs while retailers do not have to carry the inventory within the physical
location of the store. Solely Internet-based retailers are also entering the market; some are
establishing corresponding store-based outlets to provide personal services, professional help,
and tangible experiences with their products.29
An omni-channel approach not only benefits consumers but also benefits business bottom
line: Research suggests that customers spend more than double when purchasing through an
omni-channel retailer as opposed to a single-channel retailer, and are often more loyal. This
could be due to the ease of purchase and the wider availability of products.

28
Holmberg, C et al. (2016). Adolescents' presentation of food in social media: An
explorative study. Appetite. doi:10.1016/j.appet.2016.01.009. 1;99:121-129. PMID 26792765
29
Tiago, Maria Teresa Pinheiro Melo Borges;Veríssimo, José Manuel Cristóvão (2014).
"Digital Marketing and Social Media; Why Bother?". INBAM, Business Horizons.
30
Customers are often researching online and then buying in stores and also browsing in stores
and then searching for other options online. Online customer research into products is
particularly popular for higher-priced items as well as consumable goods like groceries and
makeup. Consumers are increasingly using the Internet to look up product information,
compare prices, and search for deals and promotions.

Differences between digital marketing and traditional media:

Digital marketing isn’t simply another channel for sharing advertising. It’s not like you craft
ads like companies have for generations, then share the ads across different channels, such as
radio, TV, and print. And, while you may change the execution of your ad across media, you
fundamentally kept the message the same and use similar main elements in your ads
regardless of channel. Digital isn’t a channel. It’s a totally different way of looking at the
world and engaging with your audience. In my original post, which was updated a year ago, I
created a table that identified differences between traditional media and social networking.
I’m reproducing that here because those differences still hold in a world where we talk about
digital marketing rather than social networking.30
Social Media Traditional Media
Two-way conversation One-way conversation
Open system Closed system
Transparent Opaque
One-on-one marketing Mass marketing
About you About ME
Brand and User-generated Content Professional content
Authentic content Polished content
FREE platform Paid platform
Metric: Engagement Metric: Reach/ frequency
Actors: Users/ Influencers Actors/ Celebrities
Community decision-making Economic decision-making
Unstructured communication Controlled communication
Real-time creation Pre-produced/ scheduled
Bottom-up strategy Top-down strategy
Informal language Formal language
Active involvement Passive involvement
Deep Analytics Poor analytics
Paid, Owned, Earned Paid

4 Differences Between Digital Marketing and Traditional Media:

1. Not advertising, but advertainment

First of all, digital media and traditional media differ in that digital marketing isn’t
advertising, while traditional media is primarily advertising. Fundamentally, digital media is

30
https://www.hausmanmarketingletter.com/differences-digital-marketing-traditional-media/

31
a tool to create awareness and develop attitudes about the brand, rather than promote
purchase. Digital marketing fills the top of the funnel based on both your content and shared
content from others. But, instead of bashing people over the head with slick advertising copy,
your goal is to use advertainment, which embeds corporate messages within entertainment.
Traditional media also used advertainment, which accounts for much of its success.
Advertising is embedded within TV, radio, or print content that consumers enjoy. It’s the
advertising that makes these entertainment options either free or delivered at a much lower
cost to consumers.
But, digital is already FREE. Now, ads are just annoying because they interrupt our access to
what we really want from digital; funny cat videos, exchanges with friends and family,
information. In fact, you’re now costing us money in the form of data on our mobile or
slowing down page loads for our social platforms and websites.

2. Peer recommendations

Word of mouth is always a big motivator of purchase behavior. Before digital, the voices of
word of mouth were quiet, but digital marketing gave a megaphone to those voices.
Celebrities and micro-celebrities have a strong impact on the brands consumers choose, but
our friends and acquaintances on social networks also have a big impact on our consumer
decisions. In fact, their impact goes beyond recommendations. Even sharing photographs on
social networks offer subtle endorsements for the brands displayed in them.
An important consideration about peer recommendations is that they amplify the firm’s
marketing efforts without costing them money and these recommendations are more
motivating because we view them as objective.

3. Digital is data-driven

With traditional media, you never knew where you stood in terms of ROI. Sure, with direct
marketing, you had good analytics, but with broadcast and print, you were mostly in the dark.
And, yes, I know this is already in my table above.
In contrast, digital marketing doesn’t just use metrics to assess ROI, it uses them
to IMPROVE ROI. So, not only can you predict your returns, you have the information
necessary to prioritize your marketing efforts, which improves ROI.
For instance, you can use Google Analytics, or a similar tool, to determine the percentage of
traffic coming from various social networks to determine where to spend your marketing
dollars. You can even determine the percentage that converts from each marketing campaign.
Or, use information about conversions to determine which target markets convert best. Then,
you can focus efforts to reach more of those high-converting segments or craft marketing
strategies that cause more people in low-converting segments to buy.
The granularity of the data available in digital marketing allows knowledgeable analysts to
optimize everything they do across digital networks, from content to channels to offers.31

31
https://www.digitaldoughnut.com/articles/2016/july/digital-marketing-vs-traditional-
marketing

32
4. Digital marketing isn’t just different, it’s better

Many businesses still spend the lion’s share of marketing dollars on traditional media, despite
the problems with such expenditures. Look at data below from Price Waterhouse Cooper
projecting advertising spending in 2010 compared to 2016. Adding up all the numbers for
traditional media versus digital, you see that advertisers still spend more money on traditional
media, despite the uncertainty (and increasing doubt) that this is the best place to put their
marketing dollars.
If you look at the dire state of traditional media, you find it captures fewer eyeballs (which is
the appropriate metric) every year. Instead, consumers increasingly watch TV via Netflix or
another service where they’re not subjected to advertising, or record programs for later
viewing, when they can just fast forward past advertising. The same thing is happening with
radio as most of us switch to subscription programming or link phone playlists with our car
radios. Almost no one reads newspapers, at least the print kinds, and entire demographics are
missing from print newspaper readership.

Difference Points of Traditional & Experiential marketing:

Points Traditional Marketing Experiential Marketing

Underlying Focus is more on broadcasting and
philosophy bombarding information to the
audience.
Approach Mostly a unidirectional approach
Information The information flow is one way as
flow in you want the audience or the
customer to read, listen or view
your message. E.g. is a roadside
banner of depicting some
advertisement. You expect that the
people passing by will be interested
in reading it.
Buying The onus of the decision making
Decisions process largely falls in the buyers
hands. You expect the potential
customer to think over and make
the buying decision. You hope he’s
impressed enough with the ad
enough to buy your product.
Focus is more on interaction and
creating an experience. The goal is to
engage the audience.
Usually a multipronged approach
Here you would interact with the
customer and thus you would expect
the customer to respond or reply in
some way or the other. The moment the
customer responds even the initial
information being sent might change
and thus this lays the foundation for a
new relationship e.g. giving away free
samples of a soft drink to promote the
brand while simultaneously taking
feedback from the customers. This
creates a lasting positive impression on
the customers.
Since there has been some level of
interaction, there is some form of
emotional connection developed
between the brand and the customer.
The multisensory experience that the
customer receives has a positive
influence on him, which in a way
compels him to buy the concerned
product e.g. lets continue the previous
example of the soft drink. The free soft
drink samples that the customer

33

Memory There is a lot of repetition and
bombardment that goes on in this
method. You hope the repetition
will help get the brands message
through to the audience.
Unfortunately sometimes what may
happen is that people might
remember your catchphrase, or
even your logos and mascots, but
they may never get to know what
your brand is all about. And there
may be a very low chance of an
actual emotional or a personal
connection forming.
32
received and the “human” face to face
interaction that he had with the people
endorsing the brand make the customer
feel at ease and at home with the
product. It is no longer alien to him. He
is much more likely to go ahead and
buy that product the next time he
comes across it.
The quality and richness of experience
offered plays a huge role. The more
vividly the customer can recall the
positive experience. The more likely
he’s to revisit the brand that gave him
that experience. For e.g. if there’s a
restaurant that, plays excellent music,
has a dance floor, offers really good
service and interacts wonderfully with
the customers then such a restaurant is
likely to be revisited by customers even
though the taste of food may have
been average.

2.11: STRATEGIES:

Digital marketing planning is a term used in marketing management. It describes the first
stage of forming a digital marketing strategy for the wider digital marketing system. The
difference between digital and traditional marketing planning is that it uses digitally based
communication tools and technology such as Social, Web, Mobile, Scan able
Surface. Nevertheless, both are aligned with the vision, the mission of the company and the
overarching business strategy.

1) Opportunity

To create an effective DMP a business first needs to review the marketplace and set
‘SMART’ (Specific, Measurable, Actionable, Relevant and Time-Bound)
objectives.[57] They can set SMART objectives by reviewing the current benchmarks and
Key Performance Indicators (KPIs) of the company and competitors. It is pertinent that the
analytics used for the KPIs be customised to the type, objectives, mission and vision of the
company.
Companies can scan for marketing and sales opportunities by reviewing their own outreach
as well as influencer outreach. This means they have competitive advantage because they are
able to analyse their co-marketers influence and brand associations.
To cease opportunity, the firm should summarize their current customers’ personas and
purchase journey from this they are able to deduce their digital marketing capability. This

32
http://jagransolutions.com/blog/experiential-marketing-vs-traditional-marketing/
34
means they need to form a clear picture of where they are currently and how many resources
they can allocate for their digital marketing strategy i.e. labour, time etc. By summarizing the
purchase journey, they can also recognise gaps and growth for future marketing opportunities
that will either meet objectives or propose new objectives and increase profit.

2) Strategy

To create a planned digital strategy, the company must review their digital proposition (what
you are offering to consumers) and communicate it using digital customer targeting
techniques. So, they must define online value proposition (OVP), this means the company
must express clearly what they are offering customers online e.g. brand positioning.
The company should also (re)select target market segments and personas and define digital
targeting approaches.
After doing this effectively, it is important to review the marketing mix for online options.
The marketing mix comprises the 4Ps - Product, Price, Promotion and Place. Some
academics have added three additional elements to the traditional 4Ps of marketing Process,
Place and Physical appearance making it 7Ps of marketing. 33

3) Action

The third and final stage requires the firm to set a budget and management systems; these
must be measurable touchpoints, such as audience reached across all digital platforms.
Furthermore, marketers must ensure the budget and management systems are integrating the
paid, owned and earned media of the company. The Action and final stage of planning also
requires the company to set in place measurable content creation e.g. oral, visual or written
online media.
After confirming the digital marketing plan, a scheduled format of digital communications
(e.g. Gantt Chart) should be encoded throughout the internal operations of the company. This
ensures that all platforms used fall in line and complement each other for the succeeding
stages of digital marketing strategy.

All the brands in the world are backed up by a story. We are aware of some stories of the
stories. Every brand has an importance, standing, vital signs color, attitude, and misc
attributes. Marketing & Advertising is also an integral part for brand promotion as we say in
local lingo " Jo Dikhta hai Woh bikta hai" .

Brands are made competitive via following strategies:

1. Multibrand Strategy

´Marketing of two or more similar and competing products by the same firm. A company
often nurtures a number of brands in the same category. There are various motives for doing
this. ´The main rationale behind this strategy is to capture as much of the market share as
possible by trying to cover as many segments as possible, as it is not possible for one brand to

33
McCarthy, E.J. (1964), Basic Marketing, Richard D. Irwin, Homewood, IL.
35
cater to the entire market. This also enables the company to lock up more distributer shelf
space.

2. Product Flanking

Refers to the introduction of different combinations of products at different prices, to cover as

many market segments as possible. It is basically offering the same product in different sizes
and price combinations to tap diverse market opportunities.
The idea behind this concept is to flank the core product by offering different variations of
size and price so that the consumer finds some brand to choose from. Shampoos in small
sachets and premium detergents (Tide, Ariel etc.) in small pouches are examples of this
strategy

3. Brand Extension

Companies make brand extensions in the hope that the extensions will be able to ride on the
equity of successful brands, and that the new brand will stand in its own right in the course
of time.A well respected brand name gives the new product instant recognition and easier
acceptance.It enables the company to enter new product categories more easily. For
eg: Lifebuoy Plus & Lifebuoy liquid.

4. Building Product Line

Some companies add related new product lines to give the consumer all the products he/she
would like to buy under one umbrella. For e.g: Unilever has added product lines one after
another starting from Lifebuoy, Lux, & Dove.34

5. New Product Development

A company can add new products through the acquisition of other companies or by devoting
one’s own efforts on new product development.
With the help of new products a company can enter a growing market for the first time, and
supplement its existing product lines.

6. Innovations in Core Products

The life of a product is short in FMCG market Marketers continually try to introduce new
brands to offer something new and meet the changing requirements of customer.
It is prudent for a marketer to innovate from time to time both by technological expertise as
well as from the consumer’s or dealer’s feedback.

7. Extending the product life cycle

Economic conditions change, competitors launch new assaults, and the products encounters
new types of buyers and new requirements are situations in which a FMCG company try to

34
McCarthy, E.J. (1964), Basic Marketing, Richard D. Irwin, Homewood, IL.
36
extend the PLC.In the mature stage of the PLC, some companies abandon their weaker
products. They prefer to concentrate their resources on their more profitable products and
quickly develop new products.

8. Expanding markets by usage

´A company usually expands the market for its brand in two ways, either to increase the
number of customers or by encouraging more consumption per intake.
The usage rate of the consumers can be increased in 3 ways :
1)It may try to educate or persuade customers to use the product more frequently.
2)The Company can try to induce users to consume more of the product on each occasion.
3) The company can try to discover new product uses and convince customers to use the
product in more varied ways.

9. Wide Distribution Network

A very simple way of increasing FMCG company’s market share is by developing a strong
distribution network, preferably in terms of more locations. An extensive distribution system
can be developed over time, or the company may acquire another company which has an
extensive distribution network. Coca-Cola and PepsiCo’s wide distribution network systems
have made them market leaders.

2.12: VARIOUS FORMS USED IN DIGITAL PLATFORM BY FMCG:

Digital marketing activity is still growing across the world according to the headline global
marketing index. Digital media continues to rapidly grow; while the marketing budgets are
expanding, traditional media is declining (World Economics, 2015). Digital media helps
brands reach consumers to engage with their product or service in a personalized way. Five
areas, which are outlined as current industry practices that are often ineffective are
prioritizing clicks, balancing search and display, understanding mobiles, targeting, view-
ability, brand safety and invalid traffic, and cross-platform measurement (Whiteside,
2016). Why these practices are ineffective and some ways around making these aspects
effective are discussed surrounding the following points.

Prioritizing clicks:

Prioritizing clicks refers to display click ads, although advantageous by being ‘simple, fast
and inexpensive’ rates for display ads in 2016 is only 0.10 per-cent in the United States. This
means one in a thousand click ads are relevant therefore having little effect. This displays that
marketing companies should not just use click ads to evaluate the effectiveness of display
advertisements (Whiteside, 2016).35

35
Whiteside, S (January 2016). "Five digital marketing lessons from comScore". Warc.com.
Retrieved 10 January 2018.
37
Balancing search and display:

Balancing search and display for digital display ads are important; marketers tend to look at
the last search and attribute all of the effectiveness to this. This then disregards other
marketing efforts, which establish brand value within the consumers mind. Com-Score
determined through drawing on data online, produced by over one hundred multichannel
retailers that digital display marketing poses strengths when compared with or positioned
alongside, paid search (Whiteside, 2016). This is why it is advised that when someone clicks
on a display ad the company opens a landing page, not its home page. A landing page
typically has something to draw the customer in to search beyond this page. Things such as
free offers that the consumer can obtain through giving the company contact information so
that they can use retargeting communication strategies (Square2Marketing,
2012). Commonly marketers see increased sales among people exposed to a search ad. But
the fact of how many people you can reach with a display campaign compared to a search
campaign should be considered. Multichannel retailers have an increased reach if the display
is considered in synergy with search campaigns. Overall both search and display aspects are
valued as display campaigns build awareness for the brand so that more people are likely to
click on these digital ads when running a search campaign (Whiteside, 2016). 36

Understanding Mobiles: Understanding mobile devices is a significant aspect of digital

marketing because smartphones and tablets are now responsible for 64% of the time US
consumers are online (Whiteside, 2016). Apps provide a big opportunity as well as challenge
for the marketers because firstly the app needs to be downloaded and secondly the person
needs to actually use it. This may be difficult as ‘half the time spent on smartphone apps
occurs on the individuals single most used app, and almost 85% of their time on the top four
rated apps’ (Whiteside, 2016). Mobile advertising can assist in achieving a variety of
commercial objectives and it is effective due to taking over the entire screen, and voice or
status is likely to be considered highly; although the message must not be seen or thought of
as intrusive (Whiteside, 2016). Disadvantages of digital media used on mobile devices also
include limited creative capabilities, and reach. Although there are many positive aspects
including the users entitlement to select product information, digital media creating a flexible
message platform and there is potential for direct selling (Belch & Belch, 2012).

Cross-platform measurement: The number of marketing channels continues to expand, as

measurement practices are growing in complexity. A cross-platform view must be used to
unify audience measurement and media planning. Market researchers need to understand how
the Omni-channel affects consumer's behaviour, although when advertisements are on a
consumer's device this does not get measured. Significant aspects to cross-platform
measurement involves de-duplication and understanding that you have reached an
incremental level with another platform, rather than delivering more impressions against
people that have previously been reached (Whiteside, 2016). An example is ‘ESPN and
comScore partnered on Project Blueprint discovering the sports broadcaster achieved a 21%
increase in unduplicated daily reach thanks to digital advertising’ (Whiteside, 2016).
Television and radio industries are the electronic media, which competes with digital and

36
Whiteside, S (January 2016). "Five digital marketing lessons from comScore". Warc.com.
Retrieved 10 January 2018.
38
other technological advertising. Yet television advertising is not directly competing with
online digital advertising due to being able to cross platform with digital technology. Radio
also gains power through cross platforms, in online streaming content. Television and radio
continue to persuade and affect the audience, across multiple platforms (Fill, Hughes, & De
Franceso, 2013). 37

Targeting, view-ability, brand safety and invalid traffic:

Targeting, view-ability, brand safety and invalid traffic all are aspects used by marketers to
help advocate digital advertising. Cookies are a form of digital advertising, which are
tracking tools within desktop devices; causing difficulty, with shortcomings including
deletion by web browsers, the inability to sort between multiple users of a device, inaccurate
estimates for unique visitors, overstating reach, understanding frequency, problems with ad
servers, which cannot distinguish between when cookies have been deleted and when
consumers have not previously been exposed to an ad. Due to the inaccuracies influenced by
cookies, demographics in the target market are low and vary (Whiteside, 2016). Another
element, which is affected within digital marketing, is ‘view-ability’ or whether the ad was
actually seen by the consumer. Many ads are not seen by a consumer and may never reach the
right demographic segment. Brand safety is another issue of whether or not the ad was
produced in the context of being unethical or having offensive content. Recognizing fraud
when an ad is exposed is another challenge marketers face. This relates to invalid traffic as
premium sites are more effective at detecting fraudulent traffic, although non-premium sites
are more so the problem (Whiteside, 2016).

Channels:

Digital marketing is facilitated by multiple channels, As an advertiser one's core objective is

to find channels which result in maximum two-way communication and a better overall ROI
for the brand. There are multiple online marketing channels available namely;
Affiliate marketing - Affiliate marketing is perceived to not be considered a safe, reliable
and easy means of marketing through online platform. This is due to a lack of reliability in
terms of affiliates that can produce the demanded number of new customers. As a result of
this risk and bad affiliates it leaves the brand prone to exploitation in terms of claiming
commission that isn’t honestly acquired. Legal means may offer some protection against this,
yet there are limitations in recovering any losses or investment. Despite this, affiliate
marketing allows the brand to market towards smaller publishers, and websites with smaller
traffic. Brands that choose to use this marketing often should beware of such risks involved
and look to associate with affiliates in which rules are laid down between the parties involved
to assure and minimize the risk involved.
Display advertising - As the term infers, Online Display Advertisement deals with
showcasing promotional messages or ideas to the consumer on the internet. This includes a
wide range of advertisements like advertising blogs, networks, interstitial ads, contextual
data, ads on the search engines, classified or dynamic advertisement etc. The method can

37
Fill, C; Hughes, G; De Franceso, S (2013). Advertising strategy, creativity and media.
London, UK: Pearson.
39
target specific audience tuning in from different types of locals to view a particular
advertisement, the variations can be found as the most productive element of this method.
Email marketing - Email marketing in comparison to other forms of digital marketing is
considered cheap; it is also a way to rapidly communicate a message such as their value
proposition to existing or potential customers. Yet this channel of communication may be
perceived by recipients to be bothersome and irritating especially to new or potential
customers, therefore the success of email marketing is reliant on the language and visual
appeal applied. In terms of visual appeal, there are indications that using graphics/visuals that
are relevant to the message which is attempting to be sent, yet less visual graphics to be
applied with initial emails are more effective in-turn creating a relatively personal feel to the
email. In terms of language, the style is the main factor in determining how captivating the
email is. Using casual tone invokes a warmer and gentle and inviting feel to the email in
comparison to a formal style. For combinations; it's suggested that to maximize effectiveness;
using no graphics/visual alongside casual language. In contrast using no visual appeal and a
formal language style is seen as the least effective method.
Search engine marketing -
Social Media Marketing - The term 'Digital Marketing' has a number of marketing facets as
it supports different channels used in and among these, comes the Social Media. When we
use social media channels ( Facebook, Twitter, Pinterest, Instagram, Google+, etc.) to market
a product or service, the strategy is called Social Media Marketing. It is a procedure wherein
strategies are made and executed to draw in traffic for a website or to gain attention of buyers
over the web using different social media platforms.38

Social Networking:
Game advertising - In-Game advertising is defined as "inclusion of products or brands
within a digital game."[45] The game allows brands or products to place ads within their
game, either in a subtle manner or in the form of an advertisement banner. There are many
factors that exist in whether brands are successful in their advertising of their brand/product,
these being: Type of game, technical platform, 3-D and 4-D technology, game genre,
congruity of brand and game, prominence of advertising within the game. Individual factors
consist of attitudes towards placement advertisements, game involvement, product
involvement, flow or entertainment. The attitude towards the advertising also takes into
account not only the message shown but also the attitude towards the game. Dependent of
how enjoyable the game is will determine how the brand is perceived, meaning if the game
isn’t very enjoyable the consumer may subconsciously have a negative attitude towards the
brand/product being advertised. In terms of Integrated Marketing Communication
"integration of advertising in digital games into the general advertising, communication, and
marketing strategy of the firm" is an important as it results in a more clarity about the
brand/product and creates a larger overall effect.

Online PR:
Video advertising - This type of advertising in terms of digital/online means are
advertisements that play on online videos e.g. YouTube videos. This type of marketing has
seen an increase in popularity over time. Online Video Advertising usually consists of three

38
4 Important Digital Marketing Channels You Should Know About". Digital Doughnut.
Retrieved 17 October 2015.
40
types: Pre-Roll advertisements which play before the video is watched, Mid-Roll
advertisements which play during the video, or Post-Roll advertisements which play after the
video is watched. Post-roll advertisements were shown to have better brand recognition in
relation to the other types, where-as "ad-context congruity/incongruity plays an important
role in reinforcing ad memorability". Due to selective attention from viewers, there is the
likelihood that the message may not be received. The main advantage of video advertising is
that it disrupts the viewing experience of the video and therefore there is a difficulty in
attempting to avoid them. How a consumer interacts with online video advertising can come
down to three stages: Pre attention, attention, and behavioural decision. These online
advertisements give the brand/business options and choices. These consist of length, position,
adjacent video content which all directly affect the effectiveness of the produced
advertisement time, therefore manipulating these variables will yield different results. Length
of the advertisement has shown to affect memorability where-as longer duration resulted in
increased brand recognition. This type of advertising, due to its nature of interruption of the
viewer, it is likely that the consumer may feel as if their experience is being interrupted or
invaded, creating negative perception of the brand. These advertisements are also available to
be shared by the viewers, adding to the attractiveness of this platform. Sharing these videos
can be equated to the online version of word by mouth marketing, extending number of
people reached. Sharing videos creates six different outcomes: these being "pleasure,
affection, inclusion, escape, relaxation, and control". As well, videos that have entertainment
value are more likely to be shared, yet pleasure is the strongest motivator to pass videos on.
Creating a ‘viral’ trend from mass amount of a brands advertisement can maximize the
outcome of an online video advert whether it be positive or a negative outcome.
It is important for a firm to reach out to consumers and create a two-way communication
model, as digital marketing allows consumers to give back feed back to the firm on a
community based site or straight directly to the firm via email. Firms should seek this long
term communication relationship by using multiple forms of channels and using promotional
strategies related to their target consumer as well as word-of mouth marketing.39

Multi-channel communications

Push and pull message technologies can be used in conjunction.

Self-regulation
The ICC Code has integrated rules that apply to marketing communications using digital
interactive media throughout the guidelines. There is also an entirely updated section dealing
with issues specific to digital interactive media techniques and platforms. Code self-
regulation on use of digital interactive media includes:
 Clear and transparent mechanisms to enable consumers to choose not to have their
data collected for advertising or marketing purposes;
 Clear indication that a social network site is commercial and is under the control or
influence of a marketer;

39
Lee, J.; Ham, C.; Kim, M. (2013). "Why People Pass Along Online Video Advertising:
From the Perspectives of the Interpersonal Communication Motives Scale and the Theory of
Reasoned Action". Journal of Interactive Advertising. 13 (1): 1–
13. doi:10.1080/15252019.2013.768048
41
  Limits are set so that marketers communicate directly only when there are reasonable
grounds to believe that the consumer has an interest in what is being offered;
 Respect for the rules and standards of acceptable commercial behavior in social
networks and the posting of marketing messages only when the forum or site has
clearly indicated its willingness to receive them;
 Special attention and protection for children.40

Advantages and limitations:

The whole idea of digital marketing can be a very important aspect in the overall
communication between the consumer and the organisation. This is due to digital marketing
being able to reach vast numbers of potential consumers at one time.
Another advantage of digital marketing is that consumers are exposed to the brand and the
product that is being advertised directly. To clarify the advertisement is easy to access as well
it can be accessed any time any place.
However, with digital marketing there are some setbacks to this type of strategy. One major
setback that is identified, is that Digital marketing is highly dependent on the internet. This
can be considered as a setback because the internet may not be accessible in certain areas or
consumers may have poor internet connection.
As well as digital marketing being highly dependent on the Internet is that it is subject to a lot
of clutter, so it marketers may find it hard to make their advertisements stand out, as well as
get consumers to start conversations about an organisations brand image or products.
As digital marketing continues to grow and develop, brands take great advantage of using
technology and the Internet as a successful way to communicate with its clients and allows
them to increase the reach of who they can interact with and how they go about doing
so,. There are however disadvantages that are not commonly looked into due to how much a
business relies on it. It is important for marketers to take into consideration both advantages
and disadvantages of digital marketing when considering their marketing strategy and
business goals.
An advantage of digital marketing is that the reach is so large that there are no limitations on
the geographical reach it can have. This allows companies to become international and
expand their customer reach to other countries other than the country it is based or originates
from.
As mentioned earlier, technology and the internet allows for 24 hours a day, 7 days a week
service for customers as well as enabling them to shop online at any hour of that day or night,
not just when the shops are over and across the whole world. This is a huge advantage for
retailers to use it and direct customers from the store to its online store. It has also opened up
an opportunity for companies to only be online based rather than having an outlet or store due
to the popularity and capabilities of digital marketing.
Another advantage is that digital marketing is easy to be measured allowing businesses to
know the reach that their marketing is making, whether the digital marketing is working or
not and the amount of activity and conversation that is involved.

40
"ICC Code, Digital Interactive Media - ICC Codes Centre". codescentre.com. Retrieved 17
October 2015.
42
With brands using the Internet space to reach their target customers; digital marketing has
become a beneficial career option as well. At present, companies are more into hiring
individuals familiar in implementing digital marketing strategies and this has led the stream
to become a preferred choice amongst individuals inspiring institutes to come up and offer
professional courses in Digital Marketing.
A disadvantage of digital advertising is the large amount of competing goods and services
that are also using the same digital marketing strategies. For example, when someone
searches for a specific product from a specific company online, if a similar company uses
targeted advertising online then they can appear on the customer's home page, allowing the
customer to look at alternative options for a cheaper price or better quality of the same
product or a quicker way of finding what they want online.
Some companies can be portrayed by customers negatively as some consumers lack trust
online due to the amount of advertising that appears on websites and social media that can be
considered frauds. This can affect their image and reputation and make them out to look like
a dishonest brand.41
Another disadvantage is that even an individual or small group of people can harm image of
an established brand. For instance Dopplegnager is a term that is used to disapprove an image
about a certain brand that is spread by anti-brand activists, bloggers, and opinion leaders. The
word Doppelganger is a combination of two German words Doppel (double)
and Ganger (walker), thus it means double walker or as in English it is said alter ego.
Generally brand creates images for itself to emotionally appeal to their customers. However
some would disagree with this image and make alterations to this image and present in funny
or cynical way, hence distorting the brand image, hence creating a Doppelganger image, blog
or content (Rindfleisch, 2016).
Two other practical limitations can be seen in the case of digital marketing. One, digital
marketing is useful for specific categories of products, meaning only consumer goods can be
propagated through digital channels. Industrial goods and pharmaceutical products cannot be
marketed through digital channels. Secondly, digital marketing disseminates only the
information to the prospects most of whom do not have the purchasing authority/power. And
hence the reflection of digital marketing into real sales volume is skeptical.

Measuring The Effectiveness of Digital Marketing Campaigns:

Although the ultimate criteria to evaluate any business initiative should be its return on
investment or any other financial metrics in general, the evaluation criteria and metrics for
the digital marketing campaigns can be discussed in more details.
The criteria and metrics can be classified according to its type and time span. Regarding the
type, we can either evaluate these campaigns "Quantitatively" or "Qualitatively". Quantitative
metrics may include "Sales Volume" and "Revenue Increase/Decrease". While qualitative
metrics may include the enhanced "Brand awareness, image and health" as well as the
"relationship with the customers".
Shifting the focus to the time span, we may need to measure some "Interim Metrics", which
give us some insight during the journey itself, as well as we need to measure some "Final

41
INBAM, Business Horizons, (May 2015). "Digital Marketing for Identifying Customers'
Preferences -- A Solution for SMEs in Obtaining Competitive Advantages". International
Journal of Economic Practices & Theories.
43
Metrics" at the end of the journey to inform use if the overall initiative was successful or not.
As an example, most of social media metrics and indicators such as likes, shares and
engagement comments may be classified as interim metrics while the final increase/decrease
in sales volume is clearly from the final category.
The correlation between these categories should exist. Otherwise, disappointing results may
happen at the end in – spite of the illusion of success perceived early during the project.42

42
"ICC Code, Digital Interactive Media - ICC Codes Centre". codescentre.com. Retrieved 17
October 2015.
44
 CHAPTER-3: METHODOLOGY

3.1: SAMPLING STRATEGY:

DEFINE THE TARGET POPULATION

FMCG Consumers of Mumbai

SELECT A SAMPLING FRAME

Aadhar Card, Pan Card.

SAMPLING METHOD

Probability sampling

SAMPLING PROCEDURE

Random sampling

SAMPLE SIZE

100

DETAILS OF SAMPLE

Gender: Male & Female.

Age: 20 & above

Profile: FMCG user & College students.

SAMPLE SIZE

Sample size = n = ( Zs / E ) 2

E = Tolerance limit = 5%

S = Standard deviation = 0.53

Z = Accuracy level = 95%

N = Number of elements = Sample size

45
n = (Zs / E) 2

n= [ ( 0.95 * 0.53 ) / 0.05 ) ] 2

n=100

Sample size = 100

DETAILS OF SAMPLING

Total number of students = 100

Number of Male & Female user = 100

AGE Male & Female user

20-35 60

36-50 20

51 & Above 20

3.2: RESEARCH DESIGN

The research design will be combination of exploratory & descriptive research.

3.3: DATA COLLECTION:

Sources of Data:

The data has been collected from both primary as well as secondary source.

Secondary Data

It is defined as the data collected earlier for a purpose other than one currently being
pursued.

As a research I have scanned lot of source to get an access to secondary data which
have formed a reference base to compare the research findings. Secondary data in this study
has provided an insight and forms an outline for the objective established.

46
The various source of secondary data used for this study are:

Internet

Blogs

Journals

Books

People included in sampling belong to the age group of 20 to 50 years & above.

Primary Data:

The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in this
study

The methods that have been used to collect the primary data are:

Method: Survey

Instrument: Questionnaire.

Contact Method: Face to faces & online survey.

47
 CHAPTER-4: DATA ANALYSIS

1. Do you think digital platform help FMCG sector to grow or market their product?

Table-4.1 FMCG sector growing digitally

Frequency No of Respondents
May be 9
Yes 87
No 4
TOTAL 100
Source: Data collection from questionnaire Q. 1

FIGURE-4.1

Source table – 4.1 FMCG sector growing digitally

48
 2. What influences FMCG sector to exercise digital?

Table No-4.2 influencer factor

Frequency No of respondents
Advertising 67
Customer acquisition 40
Product pricing 31
Promotion 42
Customer value 31
Distribution 12
Source: Data collection from questionnaire Q. 2

FIGURE-4.2

Source table – 4.2 influencer factor

49
 3. What factors affect FMCG sector on digital platform?

Table No.4.3 factors

Frequency No of respondents
Target Market 34
Audiences 40
Quality content 38
Interactions 26
Inputs & expenditures 6
Talent 4
Source: Data collection from questionnaire Q. 3

FIGURE-4.3

Source table – 4.3 factors

50
 4. Do you compare brand while buying FMCG products online?

Table No. 4.4 comparison

Frequency No of respondents
May be 27
Yes 63
No 10
TOTAL 100
Source: Data collection from questionnaire Q. 4

FIGURE-4.4

Source table – 4.4 Comparison

51
 5. For what reason do you think FMCG sector uses digital platform?

Table No.4.5 reasons

Frequency No of respondents
Market expansion 59
Modern techniques 58
Cost effective 40
Build brand reputation 34
Earn customer trust 12
Source: Data collection from questionnaire Q. 5

FIGURE-4.5

Source table – 4.5 reasons

52
 6. Marketing activity of FMCG is very effective on digital platform?

Table No. 4.6 Effectiveness

Frequency No of respondents
Strongly disagree 4
Disagree 5
Neutral 33
Agree 41
Strongly agree 17
TOTAL 100
Source: Data collection from questionnaire Q. 6

FIGURE-4.6

Source table – 4.6 Effectiveness

53
 7. Recent purchase of FMCG product was based on?

Table No. 4.7 Recent purchase

Frequency No of respondents
Traditional form 34
Digital media 66
TOTAL 100
Source: Data collection from respondent’s to Q. 7

FIGURE-4.7

Source table – 4.7 recent purchases

54
 8. Which approach of marketing activity benefits FMCG sector?

Table No. 4.8 Approaches

Frequency No of respondents
Traditional 22
Digital 48
Both 30
TOTAL 100
Source: Data collection from questionnaire Q. 8

FIGURE-4.8

Source table – 4.8 Approaches

55
 9. Which all listed strategies are used by FMCG?

Table No. 4.9 Strategies

Frequency No of respondents
Multi-brand Strategy 50
Product Flanking 26
Brand Extension 54
Building Product Line 37
New Product Development 41
Innovations in Core Products 36
Extending the product life cycle 22
Source: Data collection from questionnaire Q. 9

FIGURE-4.9

Source table – 4.9 strategies

56
 10. How important the listed strategy as per u? (Rate 1-5)

Table No.4.10 strategy planning

Frequency No of respondents
Opportunity Strategy Action
1 10 0 17
2 32 40 21
3 44 29 27
4 10 22 27
5 4 9 8
TOTAL 100 100 100
Source: Data collection from questionnaire Q. 10

FIGURE-4.10

Source table – 4.10 strategy planning

57
 11. Which areas do FMCG sector currently practice?

Table No.4.11 Areas of practice

Frequency No of respondents
Prioritizing clicks 11
Balancing search and display 26
Understanding Mobiles 26
Cross-platform measurement 18
Targeting, view-ability, brand safety and invalid traffic 33
Channels 32
Search engine marketing 25
Social Networking 45
Multi-channel communications 29
Source: Data collection from questionnaire Q. 1

FIGURE-4.11

Source table – 4.11 Areas of practice

58
 12. Which platform of digital marketing are effective for FMCG?

Table No. 4.12 platform

Frequency No of respondents
Facebook 70
Instagram 55
Email 68
Twitter 17
Youtube 17
Source: Data collection from questionnaire Q. 12

FIGURE-4.12

Source table – 4.12 platform

59
 13. Do you think digital platform will create big impact in future for FMCG?

Table No.4.13 future

Frequency No of respondents
May be 7
No 13
Yes 80
TOTAL 100
Source: Data collection from questionnaire Q. 13

FIGURE-4.12

Source table – 4.13 future

60
 CHAPTER-5: DISCUSSION
5.1: FINDINGS
1) 87% of people think that digital platform help FMCG sector to either grow or market the
product. Whereas, 9% says they think maybe it help. 4% says deny digital platform as a
helping tool for FMCG.

2) Advertising: 67% % of respondent’s belief that advertising influence FMCG sector to

exercise digital platform. Customer acquisition & Promotion: 40% & 42% of respondent’s
belief that customer acquisition & Promotion are also some influence force for FMCG sector
exercise digital. Product pricing & Customer Value: 31% of respondent’s says that product
pricing & Customer Value can influence FMCG sector exercise digital. Distribution: 12% of
respondent’s belief that distribution have least influential factor for FMCG sector exercise
digital.

3) Factor affects fmcg sector on digital platform, respondents reactions towards is 34% for
target market, 40% for audience , 38% for quality content, 26% for interactions, 6% for
inputs & expenditures & 4% for talent.

4) 63% of people think that they compare brand while buying FMCG product online.
Whereas, 27% says that they may be comparing brand while buying online. 10% says they
don’t compare brand while buying online.

5) The reason behind using digital platform where market expansion, modern techniques, cost
effective, build brand reputation, earn customer trust. So the respondents say high rate of
usage of digital platform for market expansion & modern technique as 59% & 58% whereas,
moderate respond for cost effective & build brand reputation as 40% & 34%. low respond for
earn customer trust as 12%.

6) 58% of respondents say that they strongly agree & agree with the point which says
marketing activity of fmcg is very effective on digital platform. 33% of respondents say that
61
they are neutral to the point which says marketing activity of fmcg is very effective on digital
platform. 9% of respondents are strongly disagree & disagree with the point.

7) 66% of respondents think that there recent purchase of product were based on digital
platform. Rest 34% of respondents reply to traditional form. Both forms have its effect on
customer but still consumer is more on digital.

8) Approach of marketing activity has its outcome on consumer, but respondents feel that
48% of digital marketing activity had greater approach style than traditional form i.e. 22%
30% of respondents are neutral for both the form of marketing activity.
9) Multi-brand strategy: respondents gave him 2 highest strategies used by fmcg by 50%.
Product Flanking: respondents gave him 6 highest strategies used by fmcg by 26%. Brand
Extension: respondents gave him 1 highest strategy used by fmcg by 54%. Building Product
Line: respondents gave him 4 highest strategies used by fmcg by 37%. New Product
Development: respondents gave him 3 highest strategies used by fmcg by 41%. Innovation in
Core Product: respondents gave him 5 highest strategies used by fmcg by 36%. Extending the
product life cycle: respondents gave him 7 highest strategies used by fmcg by. 22%.

10) 1st Preference: respondents say that 10% for opportunity, 0% for strategy, 17% for
action. 2nd Preference: respondents says that 32% for opportunity, 40% for strategy, 21% for
action. 3rd Preference: respondents say that 44% for opportunity, 29% for strategy, 27% for
action. 4th Preference: respondents say that 10% for opportunity, 22% for strategy, 27% for
action. 5th Preference: respondents say that 4% for opportunity, 9% for strategy, 8% for
action.

11) 45% of respondents says fmcg sector currently practising on social networking. 33% &
32% of respondents says fmcg sector currently practising on Targeting, view-ability, brand
safety and invalid traffic & Channels. 29%, 26% & 25% of respondents says fmcg sector
have moderate current practising on Multi-channel communications & Balancing search and
display & Understanding Mobiles & Search engine marketing. 18% & 11% of respondents

62
says fmcg sector have least currently practising on Cross-platform measurement &
Prioritizing clicks.

12) 70% of respondents feel Facebook as effective platform for digital marketing for fmcg
sector. 68% of respondents feel E-mail as effective platform for digital marketing for fmcg
sector. 55% of respondents feel Instagram as effective platform for digital marketing for fmcg
sector. Twitter & Youtube have 17% have least effective platform for digital marketing.

13) 80% of respondent says that there is future of digital platform in market. 13% of
respondent says that there is no future of digital platform n market. 7% of respondent says
that there are chances of digital market in future.

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 5.2: HYPOTHESIS TESTING

Set 1:
H0: There is no impact of FMCG brand on digital platform.
H1: There is an impact of FMCG brand on digital platform.
4. Do you compare brand while buying FMCG products online?
Table No. 4.4 comparison

Frequency No of respondents
May be 27
Yes 63
No 10
TOTAL 100
Source: Data collection from questionnaire Q. 4

FIGURE-4.4

63% of people think that they compare brand while buying FMCG product online.
Whereas, 27% says that they may be comparing brand while buying online. 10% says they
don’t compare brand while buying online.

HENCE HYPOTHESIS H1 IS ACCEPTED AND H0 IS REJECTED.

64
 Set 2:
H0: There is no use of digital platform.
H1: There is use of digital platform.
5. For what reason do you think FMCG sector uses digital platform?
Table No.4.5 reasons

Frequency No of respondents
Market expansion 59
Modern techniques 58
Cost effective 40
Build brand reputation 34
Earn customer trust 12
Source: Data collection from questionnaire Q. 5

FIGURE-4.5

The reason behind using digital platform where market expansion, modern techniques, cost
effective, build brand reputation, earn customer trust. So the respondents say high rate of
usage of digital platform for market expansion & modern technique as 59% & 58% whereas,
moderate respond for cost effective & build brand reputation as 40% & 34%. Low respond
for earn customer trust as 12%.

HENCE HYPOTHESIS H1 IS ACCEPTED AND H0 IS REJECTED.

65
 Set 3:
H0: There is no effect of digital marketing approach in FMCG.
H1: There is an effect of digital marketing approach in FMCG.
3.What factors affect FMCG sector on 8. Which approach of marketing activity
digital platform? benefits FMCG sector?
Frequency No of respondents Frequency No of respondents
Target Market 34
Audiences 40 Traditional 22
Quality content 38 Digital 48
Interactions 26
Both 30
Inputs &
6
expenditures TOTAL 100
Talent 4

Factor affects fmcg sector on digital
platform, respondents reactions towards is
34% for target market, 40% for audience ,
38% for quality content, 26% for
interactions, 6% for inputs & expenditures
& 4% for talent.
Approach of marketing activity has its
outcome on consumer, but respondents feel
that 48% of digital marketing activity had
greater approach style than traditional form i.e.
22%. 30% of respondents are neutral for both
the form of marketing activity.

HENCE HYPOTHESIS H1 IS ACCEPTED AND H0 IS REJECTED.

66
 Set 4:

H0: There are no strategies used by FMCG sector.

H1: There are various strategies used by FMCG sector.
9. Which all listed strategies are used by FMCG?
Table No. 4.9 Strategies

Frequency No of respondents
Multi-brand Strategy 50
Product Flanking 26
Brand Extension 54
Building Product Line 37
New Product Development 41
Innovations in Core Products 36
Extending the product life cycle 22
Source: Data collection from questionnaire Q. 9
FIGURE-4.9

Multi-brand strategy: respondents gave him 2 highest strategies used by fmcg by 50%.
Product Flanking: respondents gave him 6 highest strategies used by fmcg by 26%. Brand
Extension: respondents gave him 1 highest strategy used by fmcg by 54%. Building Product
Line: respondents gave him 4 highest strategies used by fmcg by 37%. New Product
Development: respondents gave him 3 highest strategies used by fmcg by 41%. Innovation in
Core Product: respondents gave him 5 highest strategies used by fmcg by 36%. Extending the
product life cycle: respondents gave him 7 highest strategies used by fmcg by. 22%.

HENCE HYPOTHESIS H1 IS ACCEPTED AND H0 IS REJECTED.

67
 Set 5:

H0: There are no various forms used in digital platform by FMCG.

H1: There are various forms used in digital platform by FMCG.
12. Which platform of digital marketing are effective for FMCG?
Table No. 4.12 platform

Frequency No of respondents
Facebook 70
Instagram 55
Email 68
Twitter 17
Youtube 17
Source: Data collection from questionnaire Q. 12
FIGURE-4.12

70% of respondents feel Facebook as effective platform for digital marketing for fmcg sector.
68% of respondents feel E-mail as effective platform for digital marketing for fmcg sector.
55% of respondents feel Instagram as effective platform for digital marketing for fmcg sector.
Twitter & Youtube have 17% have least effective platform for digital marketing.

HENCE HYPOTHESIS H1 IS ACCEPTED AND H0 IS REJECTED.

68
 CHAPTER-6: CONCLUSION
6.1: RECOMMENDATION:

From the research study which i did on “To understand fmcg sector exercising digital
platform” we have come to the conclusion that respondents believe digital platform is
necessary to FMCG sector helps them to pursue their marketing effort. Advertising, customer
acquisition & promotion influences to market their product both digitally or traditionally.
Product pricing, customer value, distribution got least influential factor for marketing their
product.

There are factors that effect fmcg sector while marketing their products digitally are the
audience, target market & quality content with least mean factors are interaction, inputs &
expenditure, & talent. By questioning people about comparing brand while purchasing
products online. So respondents agree on comparing brand while purchasing online. whereas,
some deny & some are neutral. Market expansion & modern techniques are the main reason
for what fmcg sector uses digital platform. The other three reason were carrying least weight.

Respondents strongly agree on marketing activity of fmcg is very effective on digital

platform. Its mean it will reduce their time & start creating content that attract customer
purchase online. Now-a-days people purchase fmcg product digital rather than traditional.
Digital approach benefits fmcg sector to market their product. Technology revolution has
made a great impact on business to market their product.

There are many strategies used by company to market their product. They find
opportunity & create a strategy to penetrate the market. At end they execute their planning
strategy to achieve their objective & goals. brand extension strategies is mostly used by fmcg.

Multi brand, new product development, building product line, innovation in core product are
strategies that follow brand extension.

Areas were now company focussing on is social networking. Search engine

marketing, channels & targeting the market. The social media help them to reach their target
customer. facebook & twitter are most effective platform to market the product. Instagram is
an upcoming social platform. In future digital platform will create an huge impact on buying
behaviour of consumer.

69
 CHAPTER-7: REFERENCES

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2. https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp
3. Mazzarotto (2001) and Dobson et al. (2001).
4. FMCGs, the “retail sector” refers to only those sectors that trade FMCGs (ISIC 521
and 522).
5. The State Institute of Statistics conducted the Census of Businesses in 2002, but the
results were not available as of January 2005.
6. The database was downloaded in December 2004 from the Australian Productivity
Commission website: http://www.pc.gov.au/research/rm/servicesrestriction.
7. An interviewee claimed that major chain stores have already invested in
hypermarkets.
8. Tokatlı, Nebahat and Gül Berna Özcan (1998), “The State and the Corporate Private
Sector in the Recent Restructuring of Turkish Retailing”, New Perspectives on Turkey
(18): 79-111.
9. HTP Household Consumption Panel data, 1996.
10. Household Labor Force Survey.
11. High inflation rates in the 1990s, of modern retail formats.
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13. Frito-Lay-salty-snack market in Turkey, traditional retailers, in the period 1998-2003.
14. Dougas Holding-Tansa_(1999), Carrefour-Continent (2000), Tesco-Kipa (2003), and
15. Carrefour-Gima/Endi (2005).
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18. https://www.marketo.com/digital-marketing/
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Yayını: 2956, Eskişehir.

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24. Van Niekerk, A (2007). "Strategic management of media assets for optimizing market
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27. Nielsen (17 December 2015). "Tops of 2015: Digital". Nielsen Insights Media and
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29. Tiago, Maria Teresa Pinheiro Melo Borges;Veríssimo, José Manuel Cristóvão
(2014). "Digital Marketing and Social Media; Why Bother?". INBAM, Business
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30. https://www.hausmanmarketingletter.com/differences-digital-marketing-traditional-
media/
31. https://www.digitaldoughnut.com/articles/2016/july/digital-marketing-vs-traditional-
marketing
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33. McCarthy, E.J. (1964), Basic Marketing, Richard D. Irwin, Homewood, IL.
34. McCarthy, E.J. (1964), Basic Marketing, Richard D. Irwin, Homewood, IL.
35. Whiteside, S (January 2016). "Five digital marketing lessons from
comScore". Warc.com. Retrieved 10 January 2018.
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38. 4 Important Digital Marketing Channels You Should Know About". Digital
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 CHAPTER-8: APPENDICES
8.1: QUESTIONNAIRE:

Survey on 'FMCG' Sector exercising digital platform

This survey is conducted in order to collect data for a research paper related to FMCG sector
using digital platform.

The data will be used only for educational purpose and the confidentiality of the information
provided will be maintained.

1. NAME: __________________

2. AGE: __________________

3. GENDER:

o MALE
o FEMALE

Please answer the following questions

This survey is conducted in order to collect data for a research paper related to FMCG sector
exercising digital platform. The data will be used only for educational purpose and the
confidentiality of the data will be maintained.

1. Do you think digital platform help FMCG sector to grow or market their product?

o Yes
o No
o May Be

2. What influences FMCG sector to exercise digital?

 Advertising
 Customer acquisition
 Product pricing
 Promotion
73
  Customer value
 Distribution
 Others

3. What factors affect FMCG sector on digital platform?

 Target Market
 Audiences
 Quality content
 Interactions
 Inputs & expenditures
 Talent

4. Do you compare brand while buying FMCG products online?

o Yes
o No
o May Be

5. For what reason do you think FMCG sector uses digital platform?

 Market expansion
 Modern techniques
 Cost effective
 Build brand reputation
 Earn customer trust

6. Marketing activity of FMCG is very effective on digital platform?

1 2 3 4 5

Strongly Strongly
Disagree O O O O O Agree

74
7. Recent purchase of FMCG product was based on?

o Digital media
o Traditional form

8. Which approach of marketing activity benefits FMCG sector?

o Traditional
o Digital
o Both

9. Which all listed strategies are used by FMCG?

 Multi-brand Strategy
 Product Flanking
 Brand Extension
 Building Product Line
 New Product Development
 Innovations in Core Products
 Extending the product life cycle

10. How important the listed strategy as per u? (Rate 1-5)

1 2 3 4 5

Opportunity O O O O O

strategy O O O O O

Action O O O O O

11. Which areas do FMCG sector currently practice?

 Prioritizing clicks
 Balancing search and display
 Understanding Mobiles
 Cross-platform measurement
 Targeting, view-ability, brand safety and invalid traffic
 Channels
75
  Search engine marketing
 Social Networking
 Multi-channel communications

12. Which platform of digital marketing are effective for FMCG?

 Facebook
 Instagram
 Email
 Twitter
 Youtube

13. Do you think digital platform will create big impact in future for FMCG?

o Yes
o No
o May Be

76