The Impact of Amazon Go and Dash Buttons on FMCG Companies

This report explores the impact of Amazon Go and Dash Buttons on FMCG companies, highlighting the benefits and drawbacks of these technological advancements. It discusses how Amazon Go's seamless shopping experience can disrupt traditional retail, while Dash Buttons create a pseudo-subscription model that shields consumers from rival brands. The analysis provides insights into the changing marketplace and the need for FMCG companies to adapt to this new environment.

TABLE OF CONTENTS
1.Executive Summary..............................................................................................................................4
2.Research Methodology........................................................................................................................8
2.1 Secondary Research ......................................................................................................................9
2.2 Primary Research .......................................................................................................................13
2.3 Key Findings from In-depth Interviews.......................................................................................16
3.Target Audiences................................................................................................................................20
3.1 How the Consumer Personae fit in the Closeup Grid..................................................................20
3.2 Core Closeup Consumer Personae...............................................................................................20
3.3 Core Closeup Personae................................................................................................................21
...........................................................................................................................................................21
4.Evolution of Technologies and The Impact on Closeup’s Target Audience......................................23
5.Digital Technologies and their Impact on Industry, Locally and Globally........................................29
5.1. Instant Messaging Platforms ......................................................................................................29
5.2 Self-Expression ...........................................................................................................................30
5.3 Social Networking Platforms.......................................................................................................30
5.4 Search .........................................................................................................................................31
5.5 Artificial Intelligence ..................................................................................................................32
6.Future Trends that will Impact Target Audience and Industry...........................................................33
6.1 Drones ........................................................................................................................................34
6.2 Bots..............................................................................................................................................34
6.4 Amazon Dash Button...................................................................................................................36
...............................................................................................................................................................36
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1. EXECUTIVE SUMMARY
Close-up toothpaste was acquired by Unilever South Africa in the year 2011. The
vision of this brand is to become a Euro 10 M brand by the year 2020 with a mission of
becoming South Africa’s no. 1 oral care confidence brand for the youths. Its new positioning
was facilitated to profitably differentiate this brand by connecting it with the target group of
young adults by converting them from an unconscious to a conscious behaviour. This can be
done by creating a sense of awareness in them by which they can avoid using the products
made for family’s oral care and start using their own Close-up oral care product, specially
designed for youngsters.
With such new set of objectives and a refreshing mode, this brand was relaunched in
the year 2015 where they also made a significant use of digital media tools as a leading
channel of communication to reach the target audiences of bull’s eye. The present report is
based on a correspondent research work carried out to scrutinize the undertaken strategies of
Close-up in terms of marketing and other related areas of their business. It is based upon both
primary and secondary sources of data where a comparative evaluation has been done to
analyze the performance of the campaign and future opportunities to drive the brand.
Further, this paper has assessed the growth drivers in the digital landscape and how it
is going to impact the targeted audiences of this industry. At present, South African digital
usage is spreading rapidly and influenced by high mobile penetration. Instant messaging,
social media have been used to express how youth feels in a highly diversified culture and
searching is being done to determine their zero moments of truth. At the same time, a major
digital transformation is happening in the FMCG industry due to the development of
technology. Only companies that are quick to adapt can survive and thrive in the new digital
landscape.
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2. RESEARCH METHODOLOGY
Digital
Landscape
Total
Population
Internet Users Active Social
Media Users
Mobile
Subscriptions
Active Mobile
Social Users
55 Million 29 Million 15 Million 80 Million 13 Million
Analysis
Total Number
of Monthly
Active Users
Percentage of
Users
Accessing Via
Mobile
Percentage of
Facebook Users
engaging Daily
Percentage of
Female
Facebook
Profiles
Percentage of
Male Facebook
Profiles
15 Million 87% 40% 51% 49%
Total Social
Media Use
Total Number of
Active Social
Media Users
Active Social
Users as a
Percentage of
Total Population
Total Number of
Social Users
accessing via
mobile
Active Mobile
Social Users as a
Percentage of
Total Population
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15 Million 27% 13 Million 24%
Ages of Mobile
Users
Source: (Avinash,
2017)
According to
Avinash (2017),
mobile phones are
the most
widespread media
platform that is
used in South
Africa. The
diagram above
illustrates that
mobile users are
diversified over all
age groups.
The South African digital landscape statistics were gathered from the Digital Yearbook,
written by Kemp (2017).
2.1 Secondary Research
Close-up was launched on digital the platform in the month of July 2015 as part of a re-
positioning strategy where the youths aged between the year 18 – 24 were targeted. This
section has intended to analyze the internal data and learned at a deeper level by conducting
secondary research.
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The following are the key secondary research objectives-
 To understand the brand's digital journey.
 To learn key success factors of the current digital strategy and areas to improve.
 To understand requirements of the target audience and enhance strategy.
The timeline below illustrates Close-up’s digital journey so far. Refer to appendix 8.2 for the
campaign links.
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An internal report by Reddy (2017) from Mindshare provided media insights on the
performance of content shared on Close-up’s social media platforms. Top and low-
performance content will be illustrated in the tables below, and insights will be discussed
from July 2015- April 2017. For campaign analytics, refer to sections 8.7- 8.9 in the
appendix.
Time Period: July 2015 – December
2015
Top performance* Low
performance*
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Insights For the period, July 2015- December 2015
Posts with music related content received high-performance ratings while posts with
stock imagery were viewed less favorably, suggesting that millennials prefer content related
to music and dance. It was also proposed that Millennials appreciate authentic and humorous
content (Reddy, 2017).
Time Period: July 2016 – December
2016
Top performance* Low
performance*
Source: (Reddy, 2017)
Insights for the period, July 2016- December 2016,
Time Period: January 2017 – April 2017
Top performance* Low performance* Insights
The risqué content was well received and the best performing posts played on the concept of the hea
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attraction by connecting Tinder, an online dat
website, to a Close-up product variant that promi
to help turn up the heat. It was also noted that
use of emojis as gifts was received poorly
millennials.
The relationship-based content received favorable ratings whereas, the product
focussed content received poor performance rating as the audience could not relate to the
content. Towards the latter part of the year, risqué content was developed (Reddy, 2017).
For additional secondary information highlighting advertising spend and Close-up awareness,
refer to sections 8.3- 8.6 in the Appendix.
2.2 Primary Research
Based on the findings of the secondary research, primary research was conducted to
validate the overall findings of this investigation. The sample population comprised of South
African millennials aged between 18-24 years. Refer to section 8.10 in the appendix to view
sample questionnaire and section 8.11 to view table highlighting the way in which the
questions were developed.
Research Objectives
 To determine the content which is appropriate for millennials on digital media.
 To learn how, when and where to communicate with millennials.
Research Purpose
With continual advancement in technology, the consumption patterns of digital usage
by millennials continue to change. The purpose of this research study is to, therefore, ensure
that the brand executes Close-up's intensifying marketing messages on the digital platform
that are most relevant to millennials.
Survey Findings
78% of the total respondents have completed a diploma or undergraduate degree.
Corroborating the age distribution of the sample population.
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The results suggest that 54% of Millennial engage with online content several times a day.
This suggests that Close-up can successfully reach its targeted audience through digital
content.
Research Design
A survey was administered to 120 respondents. Thereafter, in- depth interviews were
conducted to validate the findings of the survey.
Survey Findings
55% of millennial engage with online content
throughout the day and 23% towards the evening. This
suggests that Close-up should post content in the
evening to increase its reach.
93% of Millennial access online platforms from their
smart phones, implying the need for content to be
mobile-screen friendly.
63% of Millennial consume content from instant
messaging platforms and 59% prefer photography
applications to consume content in an online
environment.
Survey Findings
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When seeking specific content, Google is the most
popular search engine, followed by Facebook and
Instagram.
Useful content that provides updated and informative
information grabs the attention of millennial while
culture-specific content does not resonate much with
this group as they prefer engaging in content that is
focused on self-improvement or voicing opinions via
online applications.
If the content is being enjoyed by the millennial, then
they are likely to either comment, share or tag a friend
who would appreciate the content too. Content is
usually posted on weekly basis.
Survey Findings
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On social networking platforms, such as Facebook, millennial will most likely re-post or share
content that appears on the persons feed or has an inspirational connotation.
Content that is humorous and thought-provoking, about issues such as racial equality is usually
shared. This indicates that millennial is confident about who they are.
 75% indicated that celebrities are followed online. The most commonly followed star
is Beyoncé. Artists such as Trevor Noah and Chrissy Teigen are also being followed.
 35% follow South African (SA) political figures, therefore, local celebrities may not
have a significant impact on SA millennial.
 59% follow black celebrities.
2.3 Key Findings from In-depth Interviews
1. Millennials are eager to lead a fun filled life full of happiness.
2. Millennial consider known people as role models such as mothers who demonstrate
admirable qualities.
3. This group of individuals are very confident and comfortable with their own way and
feels proud of what they are.
4. The family is extremely important to millennial and they are willing to demonstrate
their affection for their family members.
5. Millennials are driven by experience and their common interest includes traveling, use
of technology and music. For additional key insights from the in-depth interviews,
refer to section 8.12 of the appendix.
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3.Target Audiences
Close-up consumer personae were developed based on the primary research study.
Five distinct millennial personalities emerged and from which, three have been identified as
core Close-up consumer personal.
3.1 How the Consumer Personae fit in the Close-up Grid
The size of the bubbles is representative of the size of the bucket based on the primary work
(representative sample size)
3.2 Core Close-up Consumer Personae
Although five personae were developed, Casual Seeker’s and the Curious Collectors
are not a part of the brand's target audience as these groups do not regularly engage with
digital media. Curious Collector’s, Super Fan’s and Compulsive chroniclers are regarded as
core Close-up consumer personae because these millennials are identified to be very closely
linked to the brand and are therefore classified as Close-up’s target audience. The core Close-
up personae will be discussed in the table below. Refer to sections 8.13- 8.14 in the appendix.
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3.3 Core Close-up Personae
Compulsive Chronicler Content Creator Super Fan
Location
Cities and smaller towns
Motivations
 Peer Approval
 To showcase one’s own
life experiences.
 Not strongly driven by
any other topic such as
books or movies.
Online Behavior
Posts selfies, pictures of
places visited at least once a
day.
Actively present on
Facebook, Instagram,
Snapchat. Passively on
YouTube
Location
Top 5 Largest Cities
Motivations
 Fame and popularity
 Influence over peers
 Recognition for own talent
Online Behaviour
Has consistent online style, dynamic
follower base.
Posts original content on multiple
digital platforms.
Actively present on
Facebook, Instagram, YouTube
Snapchat, Twitter, Pinterest, Tumblr,
Zumao to
Location
Cities and smaller towns
Motivations
 Sporting teams or music
bands.
 Idolizes celebrities
Online Behaviour
Posts only when there are updates
that are related to the team or band.
Actively present on-
Facebook, Twitter, passively on
YouTube and Google search
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4.Evolution of Technologies and The Impact on Close-up’s Target Audience
Instant messaging (IM) enabled communication between friends, consumers, and like-
minded people in real-time and has revolutionized the way in which the individuals tend
to connect with each other today. The present IM experience is seamless and includes
features such as video, images and voice sharing (Virtual Capitalist, 2016). Key
technological insights from 2010-2017 will be highlighted below. Refer to appendix 8.15
for technological insights from 2001-2009.
Key Technological Insights Post 2010
 After Facebook had acquired Instagram, millennials are able to share the same content
on both platforms. Instagram users highlighted a preference for visual content;
marketers must, therefore, ensure that visual content is engaging and appealing.
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 Currently, only 2% of South African users engage with Snapchat. However, this user
base is expected to increase. Therefore, the brand should consider developing content
for this platform in the future (Statista, 2016).
 Modifications to existing networks are currently in progress. Facebook is planning to
create content that is similar to television by creating short videos.
 This impacts directly on YouTube users, as consumers may shift from consuming
content from YouTube to Facebook.
Market Snapshot of Instant Messaging WhatsApp is the most popular IM app in
SA
What this Evolution means for Close-up
Millennials
1. The Top 4 Instant messaging applications are larger than the Top 4 Social Networking
applications. This suggests that Close-up millennial spend a more significant portion of
time on IM applications.
2. Millennial want to constantly stay connected with each other on digital platforms and a
deeper level outside the cyber world, close-ups millennial will, therefore, continue
embracing the brand digitally.
3. Instant messaging applications have broadcasting features; this indicates that millennial
will share content if the content is humorous or music related.
A developing technology simultaneously evolves the way in which the individuals
communicate with each other. It is therefore useful for the brand to gain an insight into the
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evolution of self-expression as this will enhance the way Close-up communicates with
millennial.
In conversation, words are not the only medium of exchange used to communicate effectively
with millennial. Body language, the tone of voice, posture, and hand gestures equally
contribute in improving the quality of the conversation. Previously, messaging via text had
the drawback of not bringing a lively conversation among the individuals and bring the spark
of above nonverbal cues in conversation. However, recent improvements in messaging
technology have brought the emotional element and improved the quality of brand
conversation with millennial with a rising use of emoji’s, bit strips and GIFs.
Secondary research has indicated that when emoji are used individually or as stock images,
low-performance ratings are received, therefore all elements in the brand conversation must
be engaging and are being expressed in an appropriate
manner (KPCB Internet Trends 2016).
Fig. Evolution of Self-expression on Global Electronic
messaging platforms
Impact
1. Emoji has helped millennial express themselves on an online platform. However, emoji
should not be used extensively in digital content as this results in poor performance
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ratings of posts.
2. Close-ups millennial will be able to take relationships to the next level by expressing
feelings in both verbal and visual ways.
3. Due to the variety of ways to express the way one feels, millennial will find it easier to
digitally communicate their aspirations, goals and lifestyle patterns which can be used
as consumer insights.
As per GfK EMEA Country Profile Study (2015), 37% of South Africans prefer Facebook as
a platform to discover new products and new content compared to other social networks.
Facebook has played an evolutionary role by being one of the most popular and widely-used
social networking platforms in the lives of millennial all across the globe. Reach is an
important aspect to consider that matters to maximize the scope of driving results.
Maximizing reach improves the return on ad spends, 70% or greater as per the internal data
of Unilever. Therefore, marketers need to make sure that 50-70% of the brand's target media
audience is reached to make a vital impact.
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Illustration 1: Active social media platforms
(Source: Kemp, 2015)

Facebook, Youtube, Twitter, and Instagram have been used to support Close-up’s
campaigns; YouTube achieved satisfactory results in driving brand awareness, however,
purchase intent was strong among Millennial aged between 18-24 years (Mindshare, 2016).
Impact
1. The future of social media platforms for South African millennial could entail a shift
from more public platforms like Facebook, which has a high family presence as
compared to platforms that are more private such as Instagram and Snapchat, etc.
2. Facebook will continue to be popular but with a more involvement of third-party for
content sharing & viewing. Personal content and original content will potentially move
to platforms such as Snapchat.
3. This is validated by the primary research that was conducted.
Google has established itself as one of the best search engines in the world.
Technology today has evolved to filter only relevant results based on the user’s context,
incorporating aspects such as past search queries, location, and previous online behavior.
Three key movements are influencing the way Millennial utilize the search function.
i. Content Discovery
Content discovery is the key to raise brand awareness without using another tactic of direct
advertisement. For example, a millennial searching for a dating site can refer to a Close-up
website to find out the way in which more confidence can be gained when exploring new
relationships. Brand awareness would have been created without using the practice of direct
advertising (SDL Solutions, 2014).
ii. Intent-based Search
Google increasingly summarizes the top results for any type of query. Google can provide
relevant information that does not necessitate to access any specific website link.
iii. Voice Search
Voice search is constantly improving in terms of quality due to several technological
improvements. However, there exists a leading drawback of undertaking voice search due to
the distinct pronunciation of different words where some words are often unrecognizable by
the system (KPCB Internet Trends Report, 2016).
iv. Moments of Truth in marketing defines the precise moment when a consumer interacts
with a brand or product. Zero Moment of Truth (ZMOT) refers to the research conducted by
the consumers themselves before making a purchase of goods and services such as reading a
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product review before taking a buying decision. In the FMCG industry, this includes various
queries such as ‘Which toothpaste provides lasting freshness?’. This makes it vitally
important for Close-up to ensure that when a consumer engages in a search, a prompt
information must be available where it should be relevant and engaging the customers to
capture the moment in which the consumer can provide appropriate suggestions to the brand
(Lecinski, 2014). This together signifies a considerable interaction among the customers and
the brands with a chance to the companies like Close-up to listen to the plea of their
consumers and accordingly design their products.
Impact
1. Millennials prefer applications that provide personalized content.
2. Intent-based search is a key trend in the algorithms of search engines today.
Millennials may become accustomed to Google that provides summarized solutions
to a query rather than website links.
3. Millennials being early adopters and are always at the forefront of the voice search
evolution.
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What this Evolution Means for Close-up
Millennials
1. Millennials are early adopters of technology and excited to embrace the newer
developments in this field.
2. Millennials prefer experiences to materialistic things to get an option to explore its
virtual reality.
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5.Digital Technologies and their Impact on Industry, Locally and Globally
5.1. Instant Messaging Platforms
Instant messaging platforms are becoming the primary method of communication.
Consumers are sharing content at an accelerating pace; this can be both advantageous and
harmful for the companies. When consumers are fulfilled with the product offering, positive
reviews and word of mouth will be dispersed
to other consumers. Conversely, on the
reverse spectrum, consumers who are
disappointed or have any negative discovery
about a product or service are more likely to
share their unpleasant experiences that can
have in turn make a negative impact on the
overall brand of the company.
Instant messaging platforms such as WhatsApp and WeChat have group features that in turn
enable the users to broadcast messages and find solutions to their problems were shared
problems directly result in shared engagement (Beaver, 2017). Close-up can optimize the
group features by sharing authentic and engaging content that will, in turn, drive their brand
awareness. From a global perspective, Canyon Bicycles uses intelligent chat tools to connect
with its consumers to provide them the most appropriate sales support in consumer's
preferred language (Wojcik, 2016). Close-up should also consider having a chat-box
available on the website all the time, once after its launch.
5.2 Self-Expression
Marketing messages are now expressed by considering the culture relevant to the
target audience that reduced the mass media communication as consumers are seeking
personalized content. Close-up must incorporate millennial into the brand conversation and
develop specific and original content to attract their targeted audience.
The global landscape comprises of multiple ethnicities and languages; it is therefore crucially
important for Close-up to combine the product offering with that to the background of the
consumers while creating content. To engage in the brand conversation with consumers,
McDonald’s consider the background and language of the consumers and communicate
products on the menu in the language which is familiar to the consumers (McDonald's, 2017).
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This, in turn, increases the responsiveness of the consumers towards the brand (Noheda,
2016).
5.3 Social Networking Platforms
News Feed is often the first page that the users see on the social media
platforms in their mobile phones; it is, therefore, important for Close-up
to acknowledge the importance of creating authentic, thumb stopping
content for News Feed to hold the interest of the consumers.
As per an internal study conducted on Unilever, real identity on
Facebook delivers remarkable strategy of targeting that in turn
indicates an average of 94% accuracy rate against the broad
demographic means of targeting. This, in turn, serves as an
incredible opportunity to the companies to drive highly relevant messages to their consumers.
Further, it is evident that Clicks and engagement such as likes and shares do not correlate to
in-store sales. Clicks drive less than 1% of sales. On an average, 99% of sales are driven by
impressions and not by clicks. It has been revealed that likes do not result in equal success.
Therefore, Close-up must ensure that impact metrics tend to measure sales.
Facebook is now seeking to persuade users to watch programs on the platform as it
hopes to compete with television and other online video platforms such as YouTube to
receive more revenue from the advertisers. By creating longer videos and changing
algorithms to feature more videos on news feed, the users will now be able to engage with
more video content on Facebook (Kuchler & Bond, 2017).
5.4 Search
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Siri and other voice assistants like Cortana for Windows and “OK Google” on
Android are also classified as search means. Applications such as Shazam and Google
Goggles are examples of video and audio search
engines. Visual search shows a greater potential to
assist consumers by serving as a reliable source for
identifying items that cannot be described by words
such as a new dress on a stranger. Close-up should work
towards ensuring the same to their consumers so that,
when they search for Close-up with the gateway of visual search, the results provide useful
information about the product and from where it can be purchased.
Google Now is the biggest example of a contextual search, without undertaking a real
investigation. This technology generates such content that is based on the information
collected from the user's email and preferences. This is for instance if the consumer's favorite
term is playing, Google Now will notify the user of the score with no need for search by the
user for it.
At present, brands are focusing on paid search where it is much easier to understand.
However, only 20% of the clicks are being done through paid search. The outstanding 80% of
the clicks are made up of organic search results that are being determined by the search
algorithm of Google. As per the internal study of Unilever, it is suggested that when brands
use both paid and organic search functions together, their performance is much more raised in
terms of benefits.
5.5 Artificial Intelligence
Artificial Intelligence (AI) is leading the technological boom by penetrating industries
where technology lacked an entry point, such as the consumer goods, education, and food
industries. Consequently, if anything is set to define the future of technology, it’s AI.
Until now, AI has predominantly been an academic exercise, by which the researchers
and academics sought to build machines that replicate human behavior. Presently, AI has
become an essential part of the technology industry and has been able to assist businesses and
particularly marketing professionals who have been challenged to consistently provide a
superior customer service experience to the consumers all the time when they interact to a
brand. Furthermore, customers not just expect an excellent once-off service but a very
personal and intimate, yet non-intrusive, relationship with a company. To achieve this type of
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content, Close-up may require additional resources and an evaluation of their undertaken
strategies.
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6. Future Trends that will Impact Target Audience and Industry
Global Digital
Snapshot
Total Population Internet Users Active Social
Media Users
Mobile
Subscriptions
Active Mobile
Social Users
7.476 Billion 3.773 Billion 2.789 Billion 8.047 Billion 2.549 Billion
Source: (Kemp, 2017)
Industry
The FMCG industry is the most
extensive industry in the world.
Consumers belong to various
geographical landscapes and are
continuously engaging with
technology, making it essential
for businesses to utilize
technology to communicate with
them (Kaushik, 2015). However, the following technological developments will significantly
impact on the way in which the FMCG industry is operating right now.
6.1 Drones
Drone deliveries have now been a technological conversation piece in the recent
years. Drone delivery is predicted to take off in 2017 and will have a significant impact on
the fulfillment of one of the serving targets of FMCG companies. The idea of unique item
shopper journeys ‘popping to the store’ for milk or Close-up could become obsolete, replaced
by a Drone drop.
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Drones could also potentially revolutionize
access to more rural areas, where last mile delivery has
struggled to operate on the same time-scales as within
the urban surroundings. Similarly, Drones could
conceivably reduce the barriers to entry into the Direct
to Consumer space, allowing small firms to serve
dense urban areas using a couple of Drones by together
avoiding all the cost and hassle of setting up and running a complex order fulfillment chain.
Governments are now beginning to put serious ideas into drone ownership and operation
regulation for the first time. This is a real milestone which shows that this technology has
indeed ‘arrived.' The impact that this regulation will have on the market is yet to be seen.
Nevertheless, it is worth keeping an eye on the skies in 2017 because this will significantly
impact the people shopping for FMCG products.
6.2 Bots
Bots can carry a range of tasks, from providing online chat support to buying cinema
tickets. Commercial Bots gained popularity in 2016, and the concept became a real-world
translation in 2017, particularly on mobile and in store. Amazon’s Alexa is a popular example
of a Bot, but many players are exploring this technology. In San Francisco, the ‘LoweBot’ is
being used in stores and have been designed to assist shoppers by answering general queries
that in turn assist in monitoring the store inventory.
This latter point could be a game changer for a perfect store
initiative. If Close-up were to access data from this Bot, the
brand would be able to receive inventory and shelf layout data
in real time, learning which products are selling and verifying
that both shelf plans and displays have been correctly
implemented.
There are limitations to this sophisticated technology. For instance, the Alexa device
has no screen, and this has massive implications for online shopper experiences. If Close-up
decides to use this technology in the future, the brand must ensure that the benefits outweigh
the costs.
6.3 Shopper Tech
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The scope of the FMCG industry is huge, and the disruptive potential is enormous.
Some of the attributes of this technology will challenge FMCG companies to rethink the way
in which they operate, with technology such as Amazon Go. The tracking and machine
learning technologies powering Amazon Go stores seek to go one better than the staff-less
checkouts.
Customers swipe into stores using their mobile phones, select the items they wish to
purchase, then simply leave the store, at which point, the items they have selected are
automatically purchased through their Amazon account. It’s all about enhancing consumer
convenience.
Amazon Go, however, has limited disruptive potential from an FMCG companies’
perspective. Although it may be highly disruptive to established retailers, challenging them
on cost competitiveness due to the reduction in staff required to run a store, these
technologies will enable Amazon Go at its core to become a traditional brick and mortar
store. It is a concept that manufacturing has known for almost a century, and is therefore
already well situated to handle its related operations.
6.4 Amazon Dash Button
Amazon Dash buttons remove the need for consumers to go to a store or website to
restock on items. The shelf space for products visible to the consumer is reduced to the space
of a cupboard shelf. If a brand is not on that cupboard shelf, it is not in the marketplace.
For an FMCG company, this means that many of their metrics that they are currently
using such as the Perfect Store initiative will become redundant. Homes as stores is a double-
edged sword. Consumers no longer visit rival retail outlets, where they might be exposed to
rival brands. The products in the consumer’s home are
transformed into a pseudo-subscription model product,
shielding consumers to reorder the same brand time after time.
It becomes very hard to reach people at the time and point of
purchase and convince them to switch products. Changing the marketplace will also
necessarily change the place and the way in which the companies advertise.
Contrastingly, the situation could be abundant for some FMCG companies. Repeated
income stream will be created as companies will not be competing for the consumer’s
attention every time the consumer visits a store or website and rivals will find it difficult to
steal its market share.
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Amazon Dash is a closed ecosystem which is curated by Amazon, but this is an awful
product for FMCG companies. This implies that Amazon will have to allow a brand to
feature on a consumer’s shelf to be a part of this new marketplace. Amazon will demand a
bigger slice of the profit margin from suppliers in exchange for allowing suppliers to access
this ecosystem. The greater the penetration of the Dash and the fewer rival systems available,
the greater the slice of margin Amazon will demand.
In conclusion, this report has summarized some major technological advancements
taking place in today's global environment that is, in turn, impacting on the FMCG businesses
to a great extent. It is with a special context of Close- up where several examples of various
other firms have also been discussed. It is with a primary focus on discussing the ways in
which the companies are required to undertake the digital platform of marketing with the help
of various accessible tools and techniques. This reflected a principal scope of some leading
tools like Drones, Bots, Shopper Tech and Amazon Dash Buttons that are apparent to change
the FMCG landscape and have a significant impact on both brands and consumers.
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