Influencer marketing and strategic importance in fmcg sector

Influencer marketing and strategic importance in fmcg sector

By —Deepak Kushwaha

Abstract:

Influencer marketing has become a significant marketing strategy in the FMCG sector. It is a way of utilizing social media influencers with a large following to promote products and services. This research paper aims to investigate the strategic importance of influencer marketing in the FMCG sector, its benefits, and challenges. The research has been conducted by reviewing literature and analyzing case studies. The results indicate that influencer marketing has become an essential tool for FMCG companies to connect with their target audience, improve brand awareness, and increase sales. The paper also highlights the challenges of influencer marketing, including the authenticity of influencers and measuring ROI.

Introduction:

FMCG companies are increasingly using influencer marketing to promote their products and services. Influencer marketing is a marketing strategy that involves utilizing social media influencers with a large following to promote products and services. Influencer marketing has become an essential tool for companies to connect with their target audience, improve brand awareness, and increase sales. This research paper aims to investigate the strategic importance of influencer marketing in the FMCG sector, its benefits, and challenges.

Literature Review:

Influencer marketing has gained popularity in recent years due to the growing use of social media. It is a form of word-of-mouth marketing that relies on the influence of individuals who have a significant following on social media platforms. According to a survey conducted by Influencer Marketing Hub, 93% of marketers use influencer marketing, and 65% of marketers plan to increase their influencer marketing budget in 2021. Influencer marketing has become a strategic priority for many FMCG companies due to its effectiveness in reaching their target audience.

The benefits of influencer marketing in the FMCG sector include improved brand awareness, increased sales, and the ability to connect with the target audience. According to a study conducted by Linqia, 86% of marketers reported that influencer marketing was effective in raising brand awareness. Influencer marketing allows FMCG companies to reach their target audience more effectively by leveraging the influence of social media influencers. It is also an effective way to generate user-generated content and engage with the audience.

However, there are also challenges associated with influencer marketing. One of the main challenges is the authenticity of influencers. Some influencers may have fake followers, and their content may not be genuine. This can damage the credibility of FMCG companies and their brands. Another challenge is measuring the ROI of influencer marketing. It can be challenging to track the impact of influencer marketing on sales and brand awareness accurately.

FMCG brands can also use influencer marketing to engage with their target audience and increase their social media following. A study by Influencer Marketing Hub found that 49% of consumers rely on influencer recommendations when making purchase decisions (Influencer Marketing Hub, 2021). By collaborating with influencers who have a similar target audience, FMCG brands can reach out to a wider audience and build a loyal following on social media platforms.

Case Studies:

To investigate the strategic importance of influencer marketing in the FMCG sector, two case studies have been analyzed: Coca-Cola and L’Oreal.

Coca-Cola launched a marketing campaign in Vietnam called “Share a Coke” in 2014. The campaign involved personalizing Coca-Cola bottles with people’s names and encouraging them to share their experiences on social media. Coca-Cola collaborated with social media influencers who had a significant following on Instagram and Facebook to promote the campaign. The campaign was successful, and Coca-Cola’s sales increased by 19% during the campaign period.

L’Oreal launched a marketing campaign in the UK called “Beauty Squad” in 2017. The campaign involved collaborating with social media influencers to promote L’Oreal’s products. L’Oreal selected influencers based on their credibility, engagement rates, and audience demographics. The influencers created content featuring L’Oreal’s products and shared it on their social media platforms. The campaign was successful, and L’Oreal’s sales increased by 7.7% during the campaign period.

Challenges and Opportunities:

Despite the benefits of influencer marketing, it also poses some challenges for FMCG brands. One of the major challenges is the selection of the right influencer for the campaign. FMCG brands need to identify influencers who have a similar target audience and are aligned with the brand’s values and messaging. A study by Influencer Marketing Hub found that 61% of consumers are likely to unfollow an influencer if they promote products that are not relevant to their audience (Influencer Marketing Hub, 2021). Therefore, it is crucial for FMCG brands to choose influencers carefully to avoid damaging their brand’s reputation.

Another challenge for FMCG brands is measuring the effectiveness of influencer marketing campaigns. FMCG brands need to define their goals and objectives for the campaign and monitor the performance of the campaign regularly. This will help them to identify the areas that need improvement and make necessary changes to achieve their goals.

Discussion and Conclusion:

In conclusion, influencer marketing has become an essential tool for FMCG companies to connect with their target audience, improve brand awareness, and increase sales. The benefits of influencer marketing include increased brand awareness, improved engagement rates.