Leverage e-commerce and technology for sustainability in 2022, Moses Mogbolu tells FMCG companies
By Oghale Mafuru
The world has witnessed a dramatic and unprecedented shift in human interactions and the Fast Moving Consumer Goods FMCG Industry, is no exception. The sudden emergence of the pandemic accompanied with months of lockdowns gave way to an accelerated growth of e-commerce. With a new variant of the pandemic, ‘Omnicron’ which poses a new threat to human existence, it is imperative to seek ways to mitigate its impact ahead of 2022.
It is against this backdrop that the Chief Marketing officer of Brand7Ps Communication Ltd. Moses Mogbolu, has urged FMCG companies to focus more on the expansion of their retail outlets and ensure the accessibility of their products.
He said: “Presently there is a competition on price war, retail outlet expansion. But I would advise that in 2022 FMCG that truly want to lead in their market segment, should focus majorly on two key things which are retail outlet expansion and expansion of trade channel through e-commerce adding that they should focus on integrated approach to brand visibility.”
According to him, when it comes to Fast Moving Consumer Goods, they are different research to support the statement that any FMCG company that has the highest visibility, availability and the retail channel definitely controls the market share.
The marketing expert noted that in 2022, without brand visibility, product availability at the retail channels and e-commerce sales, it will be difficult for any FMCG company to survive the competition and economic hardship because the exchange rate will continue to increase and unstable.
He added that the ability for companies to reduce their cost of sales, attract more customers by leveraging e-commerce and digital marketing will put them in an advantageous position to optimize sales and profitability.
Commenting on the use of discount and price reduction as sale promotion techniques, Moses Mogbolu said price being one of the most fundamental element in the Ps of marketing is very crucial for the attainment of marketing objectives.
According to him, the psychology of discount sales is premised on the reality that humans want to get high value for every product or services they purchase.
“Every human wants to get the best quantity at the lowest price; whenever any consumer hears about price discount, it triggers their ability to think that you are making more gain, that you are having more value, and paying less amount,” he said.
While affirming that the harsh economic conditions and reduction of disposable income has necessitated the use of discount sales to stimulate purchase decisions, the Mr. Mogbolu advice companies to “consider what your competitors are doing, target audience, sales for the year, revenue target for the year, source of raw materials or cost of sales so you do not give discounts that makes you sell products without making profits.”
He noted that profitability is key and any company that must survive should begin to work to optimize the opportunities inherent in 2022 as well as plan response to the challenges.
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