August 31, 2011

Marketing in times of Robust Demand


Indian economy has been experiencing robust demand across board for fmcg goods, particularly fmcg food category. Consequently most companies have begun to ignore their marketing function for the sake of focusing more on procurement & production. Almost double digit inflation in food segment growing demand has confused the producers. You have a situation now that some major established companies may have to face the prospect of substitution by new competition.  It is important for a professional company to invest more in marketing during periods of robust growth to consolidate their position to ward off potential threats.

Outages due to supply constraints are best period for new players to enter market for immediate product trails. You must have noticed that during the cycles of sufficient demand most producers tend to focus away from marketing to focus more on production etc. Such situation leads to a state when not only wasteful leakages of resources in production go unnoticed but more seriously the marketing gets completely ignored. I have noticed such situation facing many food companies in North India. Most companies are in danger of getting seriously hit by new entrants. Therefore such companies must wake up and invest in marketing immediately to have top of mind recall. 

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