Although the pandemic is still ongoing, FMCG manufacturers are gradually resuming work. For 2020 post-pandemic, FMCG manufacturers need to focus on marketing trends and opportunities, whether consumer behavior will change due to the pandemic, and how to plan marketing based on consumer changes. These are the key considerations for FMCG manufacturers. To address this, New Distribution invited Mr. Pan Lihua from Swire Coca-Cola to discuss key work priorities for FMCG manufacturers at different stages of the pandemic and under different consumer demand contexts.
We can broadly divide the pandemic period and post-pandemic into four stages:
1. Pandemic ongoing period – that is, the current moment; 2. Pandemic easing period – after the inflection point, when city lockdowns, road closures, and store closures are gradually lifted; 3. Pandemic end period – when society is basically unblocked and the pandemic disappears; 4. Normal operation period – when people's lives return to a regular state.
These four stages have no precise timeline; they mainly depend on the overall development of the pandemic and involve some uncertainty. But the general stages are as described. For different stages, manufacturers need to adjust their work priorities, as follows:
-01- Pandemic Ongoing Period
The current situation is not optimistic, and the government's control measures are increasingly strict. However, as long as people live in society, they still need to consume. During this high-incidence period, most consumers are staying at home. They have moved from the initial anxiety, constantly seeking information and tracking case numbers, to a calmer state of mind.
From anxiety to calm, consumers' psychology has changed, and their needs have also changed. Especially after city lockdowns, road closures, and community closures, most people were unprepared. At this time, consumption needs are for essential products, such as rice, flour, cooking oil, vegetables, and fruits. Typical FMCG products like instant noodles have been snapped up.
After meeting essential needs, being trapped at home creates leisure needs, especially for leisure foods like beer, beverages, and snacks. Consumption channels are mainly online home delivery and hypermarkets (KA).
Since companies have not fully resumed work, employees can only work from home temporarily. At the very least, they should make phone calls to check on customers. Offer remote assistance and proactively help solve customer problems. As the saying goes, "a friend in need is a friend indeed." If conditions allow, consider mailing masks to customers.
Online business is booming, which companies did not anticipate before the Spring Festival. In the past, manufacturers may have had simple supply cooperation with O2O platforms, but now they need to proactively engage. Although the surge in online business is temporary, this pandemic has cultivated habits in some consumers. Even if online home delivery volume decreases after the pandemic, it remains a key business for manufacturers to focus on.
What should be done for online business? As managers, proactively engage, build relationships, and appropriately invest in some fees (e.g., homepage banners, slots) to increase brand product exposure, rather than directly running promotions. While work is not saturated, step into this business, gradually explore experience, and learn the ropes.
Additionally, in team management, keep employees in a fighting state even when working from home. Implement morning meetings and evening reports, and arrange some learning opportunities since they are usually busy with business. Enhance their planning and logical thinking abilities.
For example, last week I arranged for branch companies to write annual market plans and report directly to me via a lottery draw; this week I arranged for local office managers to do packaging strategy development plans and share their personal ideas. These methods also allow managers to hear the ideas of subordinates and draw on collective wisdom.
-02- Pandemic Easing Period
When city lockdowns, road closures, and community closures are lifted, social order gradually recovers, and consumers can go out. However, they are still not entirely reassured and remain psychologically fragile, as if after a disaster, the future seems uncertain. At this time, consumer spending is mainly for family and personal consumption, with less inclination for group dining. After resuming work, consumption is mainly through takeout.
At this stage, consumers' focus is still on health and hygiene. It is recommended that manufacturers' brand communication focus on caring for consumers, even with a warm message like "Spring is blooming..." Also, note that the focus should be on promoting the brand, not the product, to plant the brand in their hearts.
At this time, companies are also returning to normal operations. Frontline sales representatives should visit stores as soon as possible. While showing care, the core is to solve problems, such as handling old inventory and exchanging goods. Additionally, the previously set sales target assessment mechanisms should be adjusted. Fully consider the store's perspective: can assessment indicators be lowered, and due rewards be appropriately discounted?
From the perspective of caring for sales points, do not rush to make sales or push inventory just because stores are open. The primary task of frontline sales is to help customers solve problems. If shelves are messy, help arrange displays and restore the store to normal as soon as possible.
Moreover, as more companies return to work, takeout consumption for lunch and group meals will surge, especially in office buildings and business clusters. FMCG manufacturers of certain categories (milk/beverages) can consider cooperating with them to increase sales opportunities.
-03- Pandemic End Period
The pandemic is over, and daily confirmed cases are zero. At this time, there will be a wave of pent-up revenge consumption, especially in social dining establishments (hotpot/BBQ) and urban complexes, where business will explode.
What should FMCG manufacturers do at this time? From the perspective of retail stores, they will face three problems:
First, cash flow shortage. Previously reserved funds have been used for personnel expenses. Having survived until now, cash flow is definitely limited. It is recommended that manufacturers provide credit term support. Those who offer credit terms will earn more gratitude from store owners. Of course, not every store should be supported. Before this, manufacturers should have a credit evaluation system, dividing credit support levels based on past cooperation, with corresponding credit periods and amounts.
Second, high-frequency, small-unit delivery. Whether it is dining establishments or circulation supermarkets, they need to stock up on many goods, but they cannot stockpile large quantities at once. Therefore, higher frequency and smaller unit deliveries are needed.
Third, good business naturally leads to staff shortages. FMCG manufacturers can appropriately consider personnel support, such as providing promoters and shelf stockers for large supermarkets, and promoters for dining establishments.
The thorny problems faced by retail stores are the focus of FMCG manufacturers' fee allocation planning. By helping retail stores solve difficulties, manufacturers naturally need not worry about sales and customer relationships.
-04- Normal Operation Period
Returning to normal consumption, production lines begin to run at full capacity, and front-end sales are soaring. At this time, the company itself faces a shortage of manpower. But from a business management perspective, it is unlikely to immediately add many staff.
At this time, as a sales manager, you should classify customers into different levels based on different criteria, establish a customer tiering system, and focus on top-tier customers. Use different methods and resources for different tiers for business management. This maximizes resource efficiency and customer output efficiency.
When business is good, do not panic or try to serve all customers equally. Enterprise resources are limited, and employee energy is limited. Invest limited resources in top-tier customers to maximize resource output.
Don't worry about consumption; overall, consumption will not be too bad. Recall the SARS period: business was very bleak, but after SARS, the national retail industry experienced rapid growth.
With China's 1.4 billion population, the business is huge, and there is always business to do. This is a critical period. Every enterprise must try every means to survive. At the same time, be fully prepared and maintain a fighting stance.
The above are the changes in consumer demand and behavior at each stage, along with the corresponding key work priorities and business opportunities for manufacturers. Frankly speaking, although we are still in the first stage, we should now actively start preparing and planning the work for the second, third, and fourth stages.
The more difficult the times, the more it tests every FMCG manufacturer manager's ability to deploy and command!
About the author: Pan Lihua, Sales Operations Manager at Swire Coca-Cola, and a student of Dedao University's zeroth cohort. With over 15 years of sales management experience at Coca-Cola, he is familiar with FMCG market layout, strategy formulation, and team management. He is skilled in market insight and team motivation.