Social Sciences Research Journal, Volume 7, Issue 4, 197-203 (December 2018), ISSN: 2147-5237 197

Marketing Strategies Followed by FMGC Companies

and Suggestions for Better Brand Position in Turkey

Yasemin ORAMAN1 M. Omer AZABAGAOGLU2

1
Namik Kemal University, Agricultural Faculty, [email protected]
2
Namik Kemal University, Agricultural Faculty, [email protected]

Fast moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that
are sold quickly and at relatively low cost. That product comprises non-durable goods such as
soft drinks, toiletries, and grocery items.
Customers noticed or experienced almost every day when visit a shop to purchase some
products, they leave from shop by purchasing some other products which were not on their
shopping list or they did not think its need. How many times it has happened that you exited
shopping malls with the products or merchandise in your shopping bag which you did not
intend to buy or had no idea to buy when you entered that mall just to buy some product/s
needed by you or maybe you entered that mall just to stroll and kill time. Delivering a right
product to the masses which they required is always a key to success. A full detailed market
research report is very effective before any product launch.
The aim of paper carried out is to understanding FMCG companies followed some effective
strategies which make their brand outstanding as compare to the competition. These strategies
are multi-brand strategy, product flanking, brand extensions, building product lines, new
product development, product life cycle strategy, taking advantages of wide distribution
network.
As a result of the paper there were significant positive correlations between the successes of an
FMCG depends greatly on its marketing strategy. An FMCG marketer pursues a wide
combination of strategies. For example, when prices are competitive, the firm would use an
extensive distribution network, design suitable advertising and sales promotion schemes from
time to time.

Keywords: Fast moving consumer goods, marketing strategies, multi-brand strategy,

product flanking

Introduction
Fast moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that
are sold quickly and at relatively low cost. That product comprises non-durable goods such as
soft drinks, toiletries, and grocery items. The fast-moving consumer goods (FMCG) sector is
one of the most volatile and toughest categories in which to succeed and sometimes considered
the birthplace of modern branding (Carter, 2014). The competition has always been fierce and
the fight for wallet share never more challenging then it is now.
Nestlé, Procter & Gamble and PepsiCo are the world’s largest FMCG companies. The other
FMCG firms operating in Turkey can be listed as follows:
•! Peyman is a FMCG player in the Turkish snacks market focusing on the highest growth
sub-segment - dried fruits, nuts and seeds ('DFNS').
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•! Nestle is the leading Nutrition, Health and Wellness Company. (Nescafe, cafemate,
cappuccino, nesquik, chokella, crunch, damak, kitkat, nestle, erikli water, nestle
purelife etc.)
•! Hayat Kimya is a leading player in the FMCG industry, and one of the biggest global
companies established by Turkish investors. (Home care category: Test, Bingo, Has),
(Hygine category: Molfix, Joly, Molped), (Tissue category: Papia, Family, Focus,
Tero).
•! Johnson & Johnson have beauty products (Clean&Clear, Johnson’s Adult, Neutrogena,
Le Petit Marseillais, baby care products (Johnson’s baby) and oral care products
(Listerine) as a FMCG firm.
•! Danone (Danissimo, active, dinette),
•! Coca-cola (light, zero etc),
•! Henkel (Beauty care, laundry& home care products etc.)
•! Mondelēz International in Turkey is home to many brands. These are First, Falım,
Sıpsevdi, Jelibon, Topitop, Olips, Missbon, Tofita, PopTip, Kent, Milka, Toblerone.
•! Heinz (Barbecue sauce, Hot Chilli sauce, Heinz ketchup, Heinz mustard, Heinz
mayonnaise)
•! Kellogg Company (Coco Pops, Special K, Corn Flakes, Kellogg’s Granola)
•! Uludag Beverage ( Natural Spring Water, Sparkling Natural Mineral Waters, Fruit
Flavored/Concentrated Sparkling Natural Mineral Water, Carbonated Soft Drinks,
Energy Drinks, Still Drinks
•! Unilever in Turkey have many brands Omo, Dove, Lux, Knorr, Lipton, Magnum, Max,
Cornetto, Carte d'Or, etc.
The major FMCG segments are personal care, food & beverage, household care, tobacco and
oral care. Food segment is the leading segment in FMCG sector. Taste and preference of
customers are changing rapidly so the companies are adopting innovative process in response
to technological development to match current customers requirement so there is a huge
opportunities in the sector.

Aim and Objective

The aim of paper carried out is to understanding FMCG companies followed some effective
strategies which make their brand outstanding as compare to the competition. These strategies
are multi-brand strategy, product flanking, brand extensions, building product lines, new
product development, product life cycle strategy, taking advantages of wide distribution
network.
Research Methodology
This study is based on secondary data. The study is conceptual and exploratory in nature. This
study explored the strategies in marketing of FMCG products and explains the conceptual
framework of marketing strategies and its importance in marketing and FMCG sector.
Secondary data is used from different research works for understanding the marketing
strategies followed by FMCG companies for making their brands outstanding in Turkey and
its necessity in current globalised scenario.
Review of literature
Social Sciences Research Journal, Volume 7, Issue 4, 197-203 (December 2018), ISSN: 2147-5237 199

According to the studies were carried out by different researcher to explore marketing
strategies. Saxena (2011) focused the study on marketing innovation in FMCG sector through
different models which provide suggestion to bring innovativeness in marketing. Bressoud
(2013) carried studies on innovation in FMCG by testing it in experimental versus real store
and found virtual store testing is not successful which is a new method in comparison to real
store. Khare and Ali, (2015) focused his studies on marketing innovation in FMCG sector.
Moss and Scuiling, (2004) defines what branding is, describes the advantages of developing
brands in the pharmaceutical industry and highlights the key differences between brands in the
FMCG and pharmaceutical industry.
Some researchers have discussed the appropriateness of different branding strategies for the
FMCG sectors (Mann and Kaur, 2013). Individual brand type is advocated to be the most
appropriate for FMCG companies (Kotler and Armstrong, 1997). However, Laforet and
Saunders (2005) find that in actual practice, FMCG companies are using individual brand type
in combination with corporate or house brand type. Saunders and Guoqun (1996) empirically
demonstrate that consumers prefer corporate and individual brand types together for an FMCG
product than either brand type used alone. In contrast, Laforet (2011) reports that corporate
brand does not add any value to products in the FMCG sector. For the services sector, corporate
brand type is recommended as the best option (Berry, 2000; McDonald et al., 2001). On the
contrary, Rahman and Areni (2009, 2010) argue that service companies should also develop
individual brands and should use them in combination with their corporate brands. For
durables, corporate brand type is opined to be the most appropriate choice (Anisimova, 2007).

Marketing Strategies Followed by FMCG Companies

Today’s FMCG industry is a multi-billion dollar sector that’s typically dominated by well-
established household brands around the globe, from Coca-Cola to Ipek Kagıt (Selpak) to
Henkel. Breaking into that market as a new brand can be a serious challenge, particularly when
you are up against global power houses that have ruled their respective niches for decades with
deep pockets.
Size of FMCG industry is mostly correlated with the population and economic power of the
country. Hence, it can be easily said; FMCG industry is considerably big and demanding in
Turkey with country's population over 80 million people. There are thousands of companies
which trying to cover this huge demand to FMCG in Turkey both with manufacturing and
importing. The most successful brands are consistently creating an authentic customer
experience around their consumable products, one that is worthwhile and personally
engaging. These brands spring their core target consumers a more compelling reason to buy and
create brand perceptions through their brands personality, promise, values, story, which their
customers find resistless. The whole brands in the world are backed up by a history. Consumers
are aware of some stories. Every brand has an importance, standing, vital signs colour, attitude,
and diverse attributes.

Figure 1
FMCG Industries
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What keeps them front of mind in terms of customer preferences, and how can these strategies
be incorporated into companies' own branding efforts? The market is constantly evolving, and
the brand must be flexible enough to keep up with the changing times. Successful FMCG
brands understand how to recognize trends and implement shifts in strategy that will help them
continue to stay relevant and meet market requirements over the years and decades.
Some of the major strategies adopted by FMCG companies for making their brands outstanding
compared to competitions are as follows:
I.! Multi-brand Strategy
II.! Product Flanking
III.! Brand Extensions
IV.! Building Product Lines
V.! New Product Development
VI.! Product Life Cycle Strategy
VII.! Taking advantages of wide distribution network.
The success of an FMCG depends greatly on its marketing strategy. An FMCG marketer
pursues a wide combination of strategies. For instance, when prices are competitive, the
company would use an extensive distribution network, design suitable advertising and sales
promotion schemes from time to time.

Multi-brand Strategy

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 cater to the entire market. This also enables the company to lock up more distributer shelf
space.
Unilever in Turkey have introduced many brands like “Magnum” in premium segment, the
love of children “Max”, the freezing of young and young residents “Cornetto”, the generous
flavor of houses “Carte d'Or”, refreshing and low calorie “Fruttare”, meaning thereby, the
company has not left any segment untouched.

Product Flanking

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. Cornflakes in small sachets and premium
detergents (Tide in USA, Ariel etc.) in small pouches are examples of this strategy. 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.

Brand Extensions

FMCG firms 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
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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 e.g.: Heinz ketchup
brand extensions are Barbecue sauce, Hot Chilli sauce, since these brands have been positioned
at different segments. Similarly, Heinz ketchup, Heinz mustard, Heinz mustard and Heinz
mayonnaise are various brand extensions of regular Heinz Brand. Companies make brand
extensions in the hope that the extensions will be able to ride on the equity of the successful
brands.

Building Product Lines

Some companies add related new product lines to give the consumer all the products he/she
would like to buy below one umbrella. For e.g: Mondelēz International in Turkey is home to
many brands. These brands are First, Falim, Sıpsevdi, Jelibon, Topitop, Olips, Missbon, Tofita,
PopTip, Kent, Milka, Toblerone.
Similarly, Kellogg Company has related cornflakes as differed product lines. Companies add
related new product lines to give consumers at the products they would like to buy.

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.
For example; Proctor and Gamble is leading company in the world as reputed for new products
development. Companies that fail to develop new products would expose themselves to great
risk and might face stagnation in future.
The existing products are vulnerable to changing consumer needs and tastes, new technologies,
shortened product life cycles and increased domestic and foreign competition. A company can
develop new products either through R&D in-house or by acquiring other company or both.
It is seen that a lot of products being brought into the market day in and day out. Some
companies which have thrived in the market due to innovative product development are FMCG
companies. However, new product development is not an easy ball game. There are many
aspects which the company has to take into consideration before even thinking of new product
development. These aspects and the challenges of new product development are below:
•! Cost considerations
•! Is the market ready?
•! Is the product coming late to the market?
•! Resources
•! Can product line extension suffice?

Product Life Cycle Strategy

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
extend the Product Life Cycle. In the mature stage of the Product Life Cycle, some companies
abandon their weaker products. They prefer to concentrate their resources on their more
profitable products and quickly develop new products.
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An FMCG has short life cycle whereas an industrial product has long Product Life Cycle.
According to Product Life Cycle, companies plan to develop new products after abandoning
the old product which has experienced the decline stage of product life cycle curve. FMCG
products are those products which have short life span which are used for short time and are
replaced within days, week and month or within a year. Since FMCG products are replaced
rapidly so they are having high market demand. They operate at a lower margin. Some of the
FMCG products are such as packaged foodstuff, household accessories, soaps, detergents,
shampoos, toothpaste, shaving products and shoe polish, etc. Therefore, 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.

Wide Distribution Network

In modern companies’ distribution network has a great impact on the success of any business.
In the FMCG segment the role of an excellent distribution channel becomes even more crucial
because the delivery of FMCG product is confined to day to day basic. Therefore, in order to
survive and thrive in a highly competitive market you have to have a distribution channel which
has no problem at any point of the distribution channel. An extensive distribution system can
be developed over time, or the company may acquire another company which has an extensive
distribution network.
Some of the values of FMCG industry, which made this industry as a potential one, are low
operational cost, strong distribution networks, presence of renowned FMCG companies. Some
of the well known FMCG companies are: Nestlé, Unilever, Procter & Gamble, Coca-Cola,
Pepsi etc.
Coca-Cola and PepsiCo’s or Nestle and Danone wide distribution network systems have made
them market leaders. 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.

Conclusion

Encouraging for FMCG industry is to captivate new customers and retain them; therefore, it is
necessary to make pace with technological change and to satisfy the changing tastes and
preference of customers. FMCG firms should offer the product with affordable cost, new
packaging, and design. Innovation process should be continuous and it should provide to local
needs rather than global.
As a conclusion that FMCG firms need to re-focus their marketing strategies and start consider
the importance of Turkish market. They can try to change demand of the market following are
few of the important strategies that can prove to be very useful, by communicating and
changing quality perception, by understanding cultural and social values, by providing what
customer want, by associating themselves with Turkey, by effective media communication, by
adopting localized way of distributing etc.
Social Sciences Research Journal, Volume 7, Issue 4, 197-203 (December 2018), ISSN: 2147-5237 203

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