Welcome to our blog series: Think Small, Play Big!
There’s a clear trend in the world of FMCG. Sales are transferring from large to smaller brands at a significant rate. In fact, 34 out of world’s 50 largest consumer companies are suffering from slower sales. Their combined market share dropped from 57.7% to 55.5% from 2013 to 2018. Companies such as Campbell, Kellogg’s and Nestle are racking their brains on how to respond.
There are a few reasons why categories within FMCG are attractive for small brands to enter. Many deliver high margins. They have a value chain which is easy to outsource, which is beneficial to data-born start-ups. And, they allow for the type of emotional relationships which many start-ups prioritise.
Due to this, start-ups have entered and disrupted FMCG categories, and provoked action. Big players have tried various strategies to stay on top, from investing in smaller companies to prioritising innovation. They’ve attempted to increase customer engagement, vary product ranges and utilise data.
We wanted to discover the ways in which big companies can better defend themselves in the FMCG space. To do this, we looked through our past projects with small brands to rediscover any key insights we had. Following this, we hosted a panel discussion at our office with a mix of marketers from start-ups and supermarket Mainstays. We have developed our insight into a series “Think Small Play Big” and over the next couple of months, we will share what we’ve learnt.
Keep your eyes peeled for this series content in order to gain insight into how leading FMCG brands have to ‘Think Small’ to ‘Play Big’. Sign up to our mailing list to be the first to hear about the series when it launches!