What is one thing which makes a company reach the zenith of success? We all know it is the strategies and business model which does that. But how to know whether the strategies planned are right or not?
Confused? The best way to learn something is to analyze the ones at the top, in other words, analyzing the top five companies of your industry and how they get their strategies right will give you a clear idea of what works with your audience. Nothing is best learned than learning from the best.
Of the 20 fastest growing, fast-moving consumer goods companies (FMCG), the top five posted a 28% growth in value against 18% registered by the bottom five. Here’s a sneak peek on what helped them reach the top:
Let us focus on the key factors as defined by a Nielsen study “Delivering Consumer Clarity”, that differentiate these high performers from the rest.
1. Quality is as important as Quantity
The top five companies mainly focus on their core markets rather than trying out and experimenting strategies on the new ones. This allows them to achieve higher growth in revenue-per-store as distribution became a major task.
2. Balancing Volume and Pricing Growth
Even during economic volatility, the company restricts itself from higher pricing and this helps the top five companies to drive significant volumes in the category.
3. Innovation is the key to success
The top five companies are more open to experimenting with new offerings in existing & new categories. They outperform the bottom five in terms of the share contributed by new launches in 2011 and 2012.
4. Changing with Modern Trade
The top five companies drew more of their sales from modern trade than the bottom five while simultaneously achieving slightly more growth from this channel Sales through modern trade channels as a percentage of total value sales & growth.
Also Read: Baba Ramdev’s Pricing Strategy To Change The Fortunes Of FMCG Market
These sectors help top FMCG companies reach the top easily. Even during times of instability, these techniques are the best way for a company to stabilize itself and expand smoothly.
