How to start a new FMCG Brand in India
When introducing a new FMCG brand in the Indian market is necessary to discover more about the market and the target audiences as well as understand demand and supply management between the market and consumers. India has a wide range of consumer markets all over the globe. Such businesses are managed by some necessary guidelines with a set of food safety and hygiene policies.
Type of businesses
in the FMCG sector in India
Because of the large scale population,
India becomes the prime market in the FMCG sector. Due to this, the FMCG
businesses are expected to generate tremendous profits. There are several kinds
of activities which can be upgraded to the industry level as they set a wide
range of products and services which tend to obtain a good amount of revenue. Below
mentioned are some types of businesses in FMCG sectors:
¨ Beverages
¨ Foodstuffs
¨ OCP fertilizer products
¨ Tobacco & associated Products
¨ Cosmetics & toiletries
¨ Detergents
There are various segments to run the business in terms of supermarkets, retail stores, mini markets, and also logistics organization which provides distribution services of the above mentions FMCG products.
Government Initiatives
There are some regulatory guidelines of the FMCG companies in India which need to be kept in mind during the initial stage of a business start-up:
¨ Expansions in the wrapped food sectors will subsidize increased prices for farmers and moderate the wastages.
¨ GST is estimated to renovate
logistics in the FMCG sector into a recent and proficient model as all foremost
corporations are transforming their processes into higher logistics and
warehousing.
¨ The Government has enrolled a new Consumer Protection Bill with the unusual accent on setting up a widespread mechanism to ensure the easy, rapid, manageable, reasonable, and well-timed delivery of justice to consumers.
Market
research must cover the following:
¨ Product should serve the interest
of potential consumers
¨ Price & portion margin should
be considered
¨ Pre-position of the product should
be set
As per the
market research, there are two paths that are to be pursued simultaneously. One
of which involves manufacturing and sales, so as to bring the actual product to
the consumer as a tangible experience; while the other involves marketing so as
to bring the intangible aspect of the brand to the consumer and influence their
perception.
There are 4
types of Consumer buying behaviors. They are as below:
¨ Complex Buying Behaviour
¨ Dissonance-reducing Buying
Behavior
¨ Habitual Buying Behavior
¨ Variety Seeking Behavior
·
The purchases which
are expensive and complex involve higher deliberation and various customers.
·
Consumer
buying behavior is determined by the level of involvement shown by a potential
consumer while making a buying decision.
·
The amount of
risks involved in the purchase pattern also determines the buying behavior of
the consumers.
·
Higher priced
goods tend to develop higher risk, thereby seeking riskier involvement in
buying decisions.
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