Blog > Thought Leadership > How Data Can Help India’s FMCG Companies Make The Most Of The Opportunity In Bharat
By 01/02/2021 Thought Leadership

How Data Can Help India’s FMCG Companies Make The Most Of The Opportunity In Bharat

The FMCG industry has started to take a keen interest in Bharat, i.e. the rural and semi-urban areas of the country.

According to Nielsen’s Report, rural India has started to outpace the urban counterparts in consumption.

After a brief lull, rural India has reported recovery, and sales have picked up again. In fact, companies like Dabur and HUL have reported that rural areas now account for 40-45% of their revenue.

This increasing consumption is driving a shift in the focus of FMCG companies. Add to that the penetration of smartphones and low-cost internet that has made consumers of Bharat more aware, well-informed, and curious to experiment with new products.

All these factors have contributed to making Bharat a fertile ground for FMCG companies to innovate and grow.

But what can they do to strengthen their position in Bharat? How can they maximize their sales and revenues in these areas? The answer lies in data.

How FMCG Companies Can Use Data To Grow In Bharat

Data is the new oil.

Cliché it may be, but the truth is if an FMCG company wants to consolidate its position as a leader in Bharat, it has to leverage the potential that data presents.

Here are some ways in which data can help India’s FMCG companies grow in Bharat.

1. Predict buyer’s behavior

The consumers of Bharat may have different tastes and needs than those living in urban areas. A simple example could be the difference in the family unit. People in rural and semi-urban areas often live in a large, joint family. The older generation might be unwilling to experiment with new products. Urban areas, on the other hand, have a nuclear setup that is willing to try new products.

Data analytics can help FMCG companies understand and then predict the behavior and preferences of the consumers. It can help companies capture data across various platforms such as social media and consumer surveys to understand the general sentiments of consumers and derive meaningful insights to strengthen the relationship with the consumers. So, FMCG companies cannot get a dependable understanding of consumer behavior accurately in each area without using analytics.

2. Planning distribution

Bharat is a fragmented market. It’s been said that the language and culture of people change every 100 kms. FMCG companies use data analytics to collect information such as untapped markets, the right location to open an outlet, and to identify optimum routes to distribute products to wholesale and retail outlets. It helps companies save costs by finding an optimal solution to reach consumers cost-effectively. Take Nestle India, for example. It realized that expanding direct distribution by adding more regions under its territory can help them triple their direct reach in the next few years. It has already helped them reach 50,000 villages directly. According to some experts, the phenomenal growth of FMCG in rural areas between 2007 and 2013 was just due to the distribution drive by FMCG companies.

3. Innovate product offerings

Every region has its own tastes and preferences. The only way to capture this market and build loyalty in consumers is by innovating the product offerings. Nestle, for instance, is experimenting with a new range of products and SKUs that target the rural and semi-urban areas. HUL has been doing 30-50 innovations every year to reach out to the deep pockets of the country. Using data analytics and business intelligence tools, companies can derive insights on what could appeal to the customer in a particular region, what drives them to purchase a product, and accordingly launch their product innovations.

4. Improve forecasting

If FMCG companies want to predict the future sales volume scientifically, identify the current market situation, and its implications on sales, then they would have to leverage data. Using business intelligence tools and data analytics, FMCG companies can build a predictive model and use what-if analysis to predict the outcome of sales under multiple situations. It could help them identify potential events and factors that could influence sales and structure their product launch strategy and marketing campaigns around it. These insights also prepare the company to optimize its inventory to ensure that the products do not go out-of-stock during crucial events such as festivals.

5. Fix right pricing

FMCG companies have to set the right price if they want to establish themselves as market leaders. With the help of data, companies can find out the impact of a price change on overall sales and its impact on the margin. It can build a pricing model to fix the right price for products across different categories. For example, it can help the company to determine the price elasticity for each product category and suggest optimal pricing for offers to drive sales and profit. The right pricing model has a direct impact on the sales margins and the bottom-line of the company.

6. Optimize Supply Chain

The supply chain is the foundation of an FMCG company’s success. If FMCG companies want to reach the deeper pockets of Bharat, they need to strengthen their supply chain and logistics. And they can leverage data analytics to enhance it. They can use it to streamline the process right from picking the product from the manufacturing plant to delivering it to the retail. The whole process can be made optimal and companies can save time and costs on tracking the delivery or fixing lapses in the process.

Conclusion

The FMCG industry is all set to strengthen its reach in every corner of the country. The increase in consumption, higher aspirations, and better income has led to rapid growth in consumer interest. That’s why the FMCG sector in rural and semi-urban India is poised to cross $220 billion by 2025. Of course, the only to make a mark in these areas is by leveraging data.

32 thoughts on “How Data Can Help India’s FMCG Companies Make The Most Of The Opportunity In Bharat”

  1. Hello! This post could not be written any better! Reading through this post reminds me of my old room
    mate! He always kept talking about this. I will forward this write-up to him.
    Fairly certain he will have a good read. Thanks
    for sharing!

    Reply
  2. Reply
  3. Reply
  4. Reply
  5. Reply

  6. Pretty nice post. I just stumbled upon your blog and wished to
    say that I’ve truly enjoyed surfing around your blog posts.
    In any case I will be subscribing to your feed
    and I hope you write again soon!

    Reply

  7. certainly like your web-site however you have to check the spelling
    on quite a few of your posts. A number of them are rife with spelling problems and
    I to find it very bothersome to inform the truth on the other hand I will
    surely come again again.

    Also visit my site; Testolmax Reviews

    Reply
  8. Reply

  9. Hey! I realize this is somewhat off-topic however I had to ask.
    Does running a well-established website such as yours require a massive
    amount work? I am completely new to blogging however I do write in my
    journal on a daily basis. I’d like to start a blog
    so I will be able to share my personal experience and views online.
    Please let me know if you have any suggestions or tips for brand new aspiring blog owners.
    Appreciate it!

    Also visit my web-site: U Slim X Keto Review

    Reply
  10. Reply

  11. Hello There. I discovered your weblog using msn. That is a
    really smartly written article. I will make sure to bookmark it and return to learn extra of your helpful info.
    Thank you for the post. I’ll definitely return.

    Reply
  12. Reply

  13. Hey there just wanted to give you a quick heads up and let you know a few of the images aren’t loading correctly.
    I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and
    both show the same outcome.

    Reply
  14. Reply
  15. Reply

  16. Hello There. I found your blog using msn. This is a really well written article.

    I’ll be sure to bookmark it and return to learn extra of your
    useful info. Thank you for the post. I will definitely return.

    Here is my webpage – pansionat.com.ru

    Reply

  17. I was wondering if you ever thought of changing the laayout
    of your blog? Itts very well written; I love what youve got too say.
    But maybe you could a little more in the way of content sso people
    could connect with it better. Youve got an awful lot of text
    for only having 1 or 2 pictures. Maybe you coupd space it out better?

    Reply

  18. I loved as much as you will receive carried out right here.

    The sketch is attractive, your authored subject matter stylish.

    nonetheless, you command get got an impatience over that you wish be delivering
    the following. unwell unquestionably come more formerly again as exactly the same nearly a
    lot often inside case you shield this hike.

    Reply
  19. Reply

  20. I think that what you posted made a lot of sense.
    But, think about this, what if you composed a catchier post title?
    I am not saying your content is not solid, but what if
    you added a title that makes people desire more? I mean How
    Data Can Help India’s FMCG Companies Make The Most
    Of The Opportunity In Bharat – Blog is a little vanilla.
    You might look at Yahoo’s home page and see
    how they create news titles to get people interested.
    You might try adding a video or a related picture or two to
    get people excited about what you’ve got to say.
    In my opinion, it would make your blog a
    little bit more interesting.

    My blog post; QuadAir Drone

    Reply
  21. Reply
  22. Reply
  23. Reply

  24. Excellent goods from you, man. I’ve understand your
    stuff previous to and you are just too magnificent.

    I really like what you have acquired here, certainly like what you are saying and the way in which you
    say it. You make it enjoyable and you still take care of
    to keep it sensible. I can’t wait to read far more from you.

    This is really a great web site.

    Also visit my website – Keto Premium Shot Review

    Reply
  25. Reply
  26. Reply

  27. Do you have a spam problem on this blog; I also am a blogger, and I was wanting to know your situation; many of us have
    created some nice methods and we are looking to swap techniques
    with others, please shoot me an email if interested.

    Here is my website Keto Vibe

    Reply
  28. Reply

  29. Do you have a spam issue on this blog; I also am a blogger, and
    I was wondering your situation; we have
    created some nice practices and we are looking to exchange solutions
    with other folks, be sure to shoot me an email if interested.

    Stop by my web page – Keto Vibe Pills

    Reply

  30. We absolutely love your blog and find most of your
    post’s to be just what I’m looking for. Does one offer guest writers to write content
    for yourself? I wouldn’t mind producing a post or elaborating on most of
    the subjects you write about here. Again, awesome web log!

    Also visit my blog :: Keto Vibe Pills Reviews

    Reply
  31. Reply
  32. Reply
Leave a Comment