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Digital Marketing For Small Fmcg Companies

Fast Moving Consumer Goods (FMCG) are products which are sold very quickly and don’t cost too much. These products include packaged foods, pharmaceutical products, personal care products and a lot more. These products have a short shelf life, and are supposed to be used / consumed instantaneously.

The Fast Moving Consumer Goods (FMCG) industry is the 4th largest sector in the Indian economy with Household and Personal Care accounting for 50% FMCG sales in India. The retail market is expected to reach $USD 1.1 trillion by the year 2020. While the urban segment has been the largest contributor to the overall revenue generated by the FMCG sector in India, recording a market size of around $USD 29.4 billion, in the last few years rural and semi-rural areas have recorded the highest growth percentage in India. This shift has been observed due to the growing economy and the ease of access formed by the government. Anyone would agree that this growth isn’t very likely to slow down.

Yes, all of that sounds great but there are quite a few key challenges that the entire industry is facing and a company’s ability to solve it determines its success in the industry.

One of the biggest issues with the FMCG industry is that it does not treat the small scale businesses generously. In fact, more than 90% of the market is occupied by products supplied by large MNC’s. To clear your doubts even further, I would like you to think about all the companies which are a part of the FMCG industry. If the names which came to your mind were P&G, Nestle, Unilever, or some other giant corporation then you can tell that small scale businesses don’t do very well in the market. Even the local brands are not featured in the local market, where the MNC’s dominate the market as well. This is not good news for the consumers because with less competition and the strong influence by multi-billion dollar corporations, MNC’s have almost turned the FMCG market into an oligopoly. The formation of an oligopoly market is dangerous for several reasons, and the consumer is the only one suffering because of it.

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Demerits Of An Oligopoly In The Fmcg Industry

  • Fixed Prices: Firms involved in an oligopoly tend to fix the prices of their products, they have formed cartels and the participants in the cartels fix the prices. If a firm does increase their prices above the market price, other competitors do not follow and it results in a loss of consumers and profit. If a firm lowers their prices below the market price, other competitors follow up and do the same. These practices devoid the market of any sort of competition based on price.
  • Barrier to Entry: Newer companies face a lot of difficulty entering an oligopoly dominated industry. Advertising by large corporations nullifies exposure for any newcomers entering the industry. Considering, Advertising is one of the principal expenses for large MNC’s in the oligopoly industry, it indicates the importance of advertising and brand promotion in the industry for big as well as small companies.

What Is Digital Marketing And How Can It Help You?

As I earlier mentioned, advertising and brand promotion and very important components required to produce successful products for any firm involved in the FMCG Industry. While large firms have no problem advertising their already well-advertised brands frequently, newer entries and other relatively smaller brands cannot afford such huge marketing budgets.

This is where I introduce you to Digital Marketing. Digital Marketing, simply put, is using digital technologies to promote your brand/product on various online platforms to generate organic views and proper audience interaction.

Over the past couple of years Digital Marketing has grown to become such a huge aspect of marketing that ignoring its strengths can be considered ignorant. Every company wants to get in the game before it’s too late to enter.

How Does Digital Marketing Work?

Digital Marketing uses three main strategies which are the breathing elements of Digital Marketing. These strategies are:

Digital Marketing For Small Fmcg Companies

Search Engine Optimization (SEO)

Search Engine Marketing (SEM)

Social Media Marketing (SMM)

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Search-Engine Optimization is the process optimizing your website in such a way that it increases the website ranking on search engines like Google, Bing and Yahoo. This process is one which is long, complicated and tedious yet doable with proper guidance. Search-Engine Optimization is one of the most important parts of promoting a website/business. Staying on the top of search results is a significant achievement as that will result in us gaining more quality traffic and eventually converting the traffic into potential sales.


Search engine marketing is the practice of marketing a business using paid advertisements that appear on search engine results pages. These ads can also be customized as you want, using creative taglines and description and you can even target customers as per their gender, age group, location, etc. Search Engine Marketing for FMCG companies can be very beneficial as the users are most likely to stumble upon a company while searching for a product related to the industry.


With the entire world, of all age groups, using social media as a source of fun and information, social media marketing has become extremely important as a Digital Marketing component. Branding for your firm on Social Media has become easier than ever. Using, creative images, taglines and engaging with users is all part of what establishes a company’s presence and improves its communication with the consumers.

You can consult with us with regards to digital marketing service for small fmcg companies to know more about digital marketing.

To Know More How We Can Built Digital Marketing Strategy For Your Small Fmcg Companies

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