FMCG giants pivot to premium: Nestle & ITC lead with innovative strategies
Nestle India plans to hire tasters and connoisseurs of premium foods for its soon-to-be-launched super-premium Nespresso coffee and boutiques. «The marketing thinking is very different. For example, the investment in a boutique would run into at least a couple of crores. So, the marketing of the brand, its positioning, advertising support and events have to be very different,» said Suresh Narayanan, chairman of Nestle India. He said the company's premiumisation will «build a new dimension; add to the strengths of the company; in coffee, in chocolates and milk.»
ITC, on the other hand, is turning to artificial intelligence (AI) and machine learning (ML) to predict demand and consumer trends in retail stores and supply chains, and recommendations for packs best suited for a particular store, for its premium portfolio which includes Fabelle chocolates, skincare, and deodorants.
«AI and ML models are being leveraged to position our premium portfolio across stores,» said Sandeep Sule, divisional chief executive, trade marketing and distribution, ITC, which makes Fiama body washes, Engage fragrances and Fabelle chocolates.
«We have put in place a comprehensive omni-channel distribution network that drives the premium portfolio across channels including and beyond metros and tier 1 cities,» Sule said. The contribution of its premium personal care portfolio has doubled in four years.
FMCG companies including Nestle, ITC, Tata Consumer, Parle Products, Amul, Britannia, and Parag Milk Foods are adopting new skill sets,
