Business Accent

The pathway to FMHG segment

A $ 675 million industry FMHG market is expected to grow further with new products slated for launch in future. Suhas Wadwalkar, Head - Brand Communications SOHUM on the different phases of market penetration for FMHG products

Switch on the TV and you are most likely to hear the confident voice ' Bhaag daud bhari zindagi, thakna mana hai, or see Dhoni advising young kids' Jeetne ke liye chahiye fit Body aur active dimaag', or else a direct promotion of the emergency contraceptive pill 'abortion se accha hai pregnancy ko rokna, hai na'?

One out of every fifth ad on TV, screams about health, wellness, prevention, care and better quality of life. The brands they are pushing come under one common umbrella - 'Fast Moving Health Goods' in short FMHG. In the print media it is not just the health magazines that talk about health. Fashion, society and business magazines are also now earmarking a permanent place to address health issues. Healthcare brand ads are now seen on front pages of leading newspapers. Out of home media is not lagging behind as one can see a plethora of healthcare brands advertised on hoardings, bus stops and also through the digital media at airports and shopping malls.

With the current CAGR of over 20 percent in the consumer healthcare segment, the market is sure to witness a wave of FMHG companies and brands flooding the retail shelves. As every company / brand / product has its own strengths and USPs and hence, there cannot be a uniform marketing strategy for all. However, the following seven steps are required to ensure a royal entry into the FMFG segment.

1. Market Research

Market research provides a base to the entire plan. FMHG involves high investment in marketing and hence all decisions are required to be evaluated factually, unbiased and professionally.

Identifying the right product mix:

A company may be offering multiple products with proven benefits to the consumer, yet a detailed research is required to identify which products have the necessary attributes to fall under the 'wellness' umbrella. There are numerous life-style inhibiting areas which need preventive support to ensure continued wellness. Health supplements also prove helpful in avoiding incremental drug requirements in case of chronic diseases. Careful selection of products in FMHG segment is required not only to relate the benefits of those products with the consumer needs and aspirations but also to ensure that the positioning of these products do not encroach into the 'illness' zone and suffer eventual rejection and statutory barricades

Identification of fertile markets for entry:

'Well begun is half done'. It is important for any new entrant to achieve 'critical mass' within the projected time frame and much before the account books start screaming of pathetic return on investments (ROI). To begin well it is necessary to identify fertile areas. For example, a weight loss product may readily attract the consumers in western region where as rejuvenators and aphrodisiacs may find instant takers in the north. Similarly, a product promising prevention and relief from joint pains may be apt for urban executives leading sedentary lives than other towns where the incidence is not so alarmingly viewed.

Identifying the target group:

This is the most important aspect and can make or break a product's success at the market place. The TG identification forms the basis of formulation of promotional plans and deciding below the line (BTL) and above the line (ATL) communication objectives. Even packaging, presentation, pricing and product availability decisions are TG focused. The effort is made to study their needs, aspirations, values and behaviour to strike a common chord with them.

Then, the brand communication and promotion is directed towards the identified TGs. For example, Saffola has identified young couples, Revital - the working executives and Sugar Free Natura has the housewives as their TGs. Most companies channelise all their energies to entice the identified TGs.

2. Pre launch media publicity

Wellness is becoming a high involvement area especially among the SEC A and B men and women in urban areas across the nation. Thanks to the consumer's unstoppable penchant for knowledge and information, the general awareness levels are already peaking. Prevalence of common health problems and professional deliberation on the possible remedy for that problem together, make an interesting reading for the affected consumer. Pre launch publicity is especially useful for the entrepreneurs armed with the exclusive distribution rights for some of the best nutraceutical products patented by reputed global companies for commonly prevailing health problems in the society.

3. Trade lobbying

FMHG supply chain support:

While prescription driven segment is mainly catered by the stand alone chemists and relatively un-organised sector, FMHG products on the other hand need a more organised, networked, wide reaching and deep distribution system. Success depends on how close the product is available to the end user. A powerful concept, potential market, aggressive action plans and a meaningful presentation can help in enlisting support from leading FMHG distributors with deep distribution capacity. Promotional tie ups with trade (pharmacy chains) will be ideal for 'in shop' and 'on shop' communication and marketing activities and attract the consumer attention.

4. Information access points

Information is the key to develop confidence. Easy access to information and knowledge about health problem, options of relief and the product benefits and features associated with it ultimately help in building a strong brand. It is important to develop access points such as user friendly website with contact mail address and telephone numbers, 24 x 7 toll free numbers to help and assist or an automated SMS programme for quick response to queries about product, packing, price, mode of action, benefit, availability, etc.

5 BTL communication and activities

Below the line activities are irreplaceable in any consumer driven market. The product needs to be seen, read and felt by the consumer. As retail visibility may be ensured with various possible elements like posters, danglers, shelf talkers, wobblers, shelf markers, window displays, gondolas and other POS material, BTL communication is an interface with the end user and the single most important factor to initiate an immediate trial / sale. No ATL activity must be taken up before one is convinced of executing and implementing the BTL activities as planned.

6. Ground level communication and show of presence

Participation in consumer exhibitions is a positive way of interacting with the prospective customers and knowing them closely. This also gives a wider exposure to the brands in a shorter time. It has an effective practice to develop new customers.

In addition, it is healthy to participate in industry summits, seminars conferences. While exhibitions are generally in a B2C format, the summits are always B2B and hence there is possibility of generating symbiotic business partners and allies as well.

7. Above the line communication (ATL)

While the BTL activities initiate the sales, ATL helps in magnifying them. ATL is sometimes exorbitantly expensive and is the last weapon to be used in FMHG marketing. Careful selection of media is mandatory to avoid huge losses.

Firing on all directions at a time is often disastrous. Many companies reach the levels of exhaustion and finally crumble down due to poor / delayed returns.

ATL communication is safe to start with print media with high retention value such as magazines and periodicals. Timing has to be matched with crescendo effect just before the onset of the peak festival season for better gains.

After tasting success with print media, one can look for out of home (OOH) media like bill boards, hoardings, pole kiosks, bus stops, digital signage in public places to spread the net wider. Electronic media like TVCs and ad films are a very high investment media and may be considered after OOH media to build a brand into a house hold name and make it a super brand. Electronic media helps in attaining the unshakeable position at the market place by achieving maximum mind and body share of the target consumer.

Consolidation and growth

A new entrant in the market goes through different phases of penetration, consolidation and growth

• First year is necessarily dedicated to penetration and hence all activities are focused on that
• Penetration gains need to be defended, consolidated and strengthened with planned actions in the second year. There needs to be a continuous effort to expand horizontally and vertically to offset shelf space erosion due to incremental competitors' activities.
• After successfully handling challenges of penetration and consolidation, it is now time to enter the growth phase to reach greater heights in the third year.

Growth in leaps and bounds

The FMHG segment has the potential to grow by leaps bounds in the near future. In spite of it being a $ 675 million industry, there are not too many players. There is a large space for new entrants and an early entry now can offer rich dividends in shorter term. Whichever path one may choose, they will have to focus on the 'wellness' needs of the consumers by adding real value at every step which will be of paramount importance to succeed at the market place.