Biggest Lessons in Running an FMCG Business
A majority of companies within Singapore cannot completely grasp the power of the net upon the everyday lives of its consumers. The chasm slowly widens as the web is used to acquire information and goods in a more effective manner. Such carelessness results in a smaller range of communication and a drop of competitive advantage.
The usage of digital media is in most cases more complicated for bigger businesses that are too comfortably engage in traditional procedures. Not too long ago, there was a situation whereby a big corporation was experiencing tremendous losses due to a number of factors. Luckily enough, these people daringly turned to marketing through digital media in order to save themselves from bankruptcy. This company is none aside from Novi. With minimal threats in the marketplace, Novi once stood as a primary contender in the FMCG market. The chain had stores in nearly every town and had very little competition aside from little markets. Nevertheless in November of 2015, Novi’s results took an extreme turn.
A new Chief Executive was appointed when the old Chief Executive Officer attempted and failed to bring Novi into international markets. With the employing of any top executive, many corporate practices and processes needed modification. The restructuring process brought about some significant bills that compromised Novi’s cashflow. To add fuel to the fire, 2 competitions Neura and Sentri entered the arena. These new companies focused on serving the lower and higher ends of the market respectively, were established to take advantage of the segments which Novi wasn’t serving. Aside from battling it out on the retail floor, digital marketing became part of their arsenal of weapons which considerably leveled the playing field when it came to fighting it out with the recognized businesses on the web.
Novi’s advantages at that stage comprise market presence and brand equity. This acknowledgement extended their shelf life but did not help them retain investor loyalty or total patronage. Dominant investors of the ailing company announced on public record that they lost a minimum of $498 million just from the poor fiscal performance.
The CEO that was a True Believer in Technology
So as to successfully recoup Novi’s online ranking, the new CEO – a fan of technological progress – decided to set up an internal digital marketing department. Despite the fact that Novi’s online store back then was excellent, the changing times required a brand new approach to taking care of this online presence.
The newly appointed CEO kickstarts the revamp by creating an internal digital marketing department. The key objective of Novi’s CEO was to develop a digital marketing message that was strong and unified. Nonetheless, an internal team was not able to achieve optimal results spontaneously. It reached the decision that engaging an external marketing agency with capabilities in digital media was critical in keeping up its on-line campaign.
The new norm for businesses at present is to get more done with much less; in Novi’s circumstance, it would must raise its web store sales using the most cost-effective approach possible. This fundamental shift induced Novi to critically appraise its alternatives and it finally chose content marketing, making a gamble on it to help deliver the figures. By playing around with their online store structure such as incorporating a Finest Treats button, Novi was able to direct customers to a microsite named “Novi Finest Treats”. Food-related info such recipes, articles, life inspiring stories and well-being trivia were shared openly on this particular website.
The Finest Treats website shows that the new Novi direction focuses on quality website design because it by alone can exist as a valuable online resource for people hunting for food. Furthermore, this microsite is closely linked with Novi’s main website, which strengthens the association between it and the brand. This also helps with psychoing customers subtly and leading them to purchase more at Novi’s online store.
With social media being so well received and widely-used by the masses, Novi recognized the demand to leverage on this channel to improve its reach in the marketplace. Besides using content marketing, Novi’s inner team strengthened their stronghold through Facebook, Twitter, Pinterest and Google.
Two priceless uses can be derived from signing up for their own profiles on these societal platforms. First off, it is an easily controlled feed of generic information and promotional material for their shoppers. They went as far as to create specific Twitter accounts for each of their departments. Each accounts then supplies offer and promotional upgrades to customers who have an interest in those special departments just.
Next, it empowers them to carry on fine tuning their online brand reputation. A dilemma arises when a customer or even a rival confirms an unofficial social media presence under their name. As the content wasn’t official nor checked at the source, Novi would have to be always ready for damage control whenever assaults on its brand happened. An internal social media team would not permit such activities to occur under their watch. With information flowing directly from the official source, Novi will not have to be bothered about what exactly is being disseminated online.
Customers are the ones sustaining a company. Responding to customer concerns and working collectively to resolve the issue is a fundamental part of increasing loyalty to the brand thus ensuring repeat purchases. With digital media, Novi performs brilliantly in this place. In comparison with other firms that just have a singular social media account to handle criticisms and promotional offerings, Novi has gone a step further to create individual accounts for each. For instance, there was an account setup for customer care (designed to look after support related issues only) and yet another for sales (featuring the latest offers and promotions).
An integral priority would be to make sure the customer feels appreciated. This is achieved by devoting “real” people to respond to their issues as compared to hollow scripted replies. This will, undoubtedly, bring the users closer and entice them to splash out more in the future.
The CEO’s initiatives reaped rewards; based on various sources, Novi now controls a market share of about 48%, nearly 12 percentage points in front of the next closest competition. It would definitely resonate with key executives during annual general meetings.
By having this cutting edge strategy in internet marketing, Novi’s popularity and market value has increased exponentially. The internal development team are actively pushing out cellular programs that can expand Novi’s reach to more people. These programs should help them reach an even broader audience outside of normal website design and development .
Many companies can learn from Novi. Focusing only on traditional methods of branding and retail to support a business is not going to work. Without a doubt, any company that desires to remain competitive in the digital era requires a superior digital strategy.
If an industry giant like Novi was so readily crippled by the lack of an internet existence, imagine the implications for a smaller company. Digital media is no longer a crutch as it may have been in the past – it is a fundamental strategy towards business growth and accomplishment.