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	<title>Comments on: The truth about FMCG in Australia</title>
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	<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/</link>
	<description>by Steve Sammartino</description>
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		<title>By: 임승민</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-20130</link>
		<dc:creator><![CDATA[임승민]]></dc:creator>
		<pubDate>Fri, 12 Apr 2013 05:08:16 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-20130</guid>
		<description><![CDATA[Great summary and quick questions.

Do you happen to know any relevant case that multinational FMCG company have tried Australian market as &#039;the beta test market&#039; before hitting US/EU? (product, services.. etc)

thanks]]></description>
		<content:encoded><![CDATA[<p>Great summary and quick questions.</p>
<p>Do you happen to know any relevant case that multinational FMCG company have tried Australian market as &#8216;the beta test market&#8217; before hitting US/EU? (product, services.. etc)</p>
<p>thanks</p>
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		<title>By: Steve Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16536</link>
		<dc:creator><![CDATA[Steve Sammartino]]></dc:creator>
		<pubDate>Tue, 07 Feb 2012 01:26:46 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16536</guid>
		<description><![CDATA[I agree - I think all the &#039;Smart Marketers&#039; are exiting the industry as clearly it&#039;s glory days are behind it....

The fact is simple - if the pillars of the marketing mix are not available, then marketing can create very little value if any. 

Good link,
Steve.]]></description>
		<content:encoded><![CDATA[<p>I agree &#8211; I think all the &#8216;Smart Marketers&#8217; are exiting the industry as clearly it&#8217;s glory days are behind it&#8230;.</p>
<p>The fact is simple &#8211; if the pillars of the marketing mix are not available, then marketing can create very little value if any. </p>
<p>Good link,<br />
Steve.</p>
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		<title>By: Steve Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16535</link>
		<dc:creator><![CDATA[Steve Sammartino]]></dc:creator>
		<pubDate>Tue, 07 Feb 2012 01:24:42 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16535</guid>
		<description><![CDATA[I totally agree that a large majority couldn&#039;t care less about the Consumer goods they buy. My post is a more about the world of FMCG whose lack of strategy, both product and distribution, is leading to a bleak future. 

In relation to distribution channels - the point is not about manufacturers going direct to consumer (again I agree 100% that no one wants food products deliver individually by mail) but rather some form of aggregation business that circumvents retail entirely. So that people like me, who equally don&#039;t need to waste time going to a supermarket, don&#039;t have to. Instead, we would use smart technology (phones, RFID,s NFC) to get stuff (all of it at once) delivered in an even more efficiently than the current distribution channels.......

I see you points and agree - mine post is two fold:

1. FMCG are stuffed in this country because they didn&#039;t innovate
2. Manufacturers only chance of thriving lies in to &#039;collaborating &amp; circumventing&#039; existing channels. If they fail to do that they will just become plain commodity traders.

Steve.]]></description>
		<content:encoded><![CDATA[<p>I totally agree that a large majority couldn&#8217;t care less about the Consumer goods they buy. My post is a more about the world of FMCG whose lack of strategy, both product and distribution, is leading to a bleak future. </p>
<p>In relation to distribution channels &#8211; the point is not about manufacturers going direct to consumer (again I agree 100% that no one wants food products deliver individually by mail) but rather some form of aggregation business that circumvents retail entirely. So that people like me, who equally don&#8217;t need to waste time going to a supermarket, don&#8217;t have to. Instead, we would use smart technology (phones, RFID,s NFC) to get stuff (all of it at once) delivered in an even more efficiently than the current distribution channels&#8230;&#8230;.</p>
<p>I see you points and agree &#8211; mine post is two fold:</p>
<p>1. FMCG are stuffed in this country because they didn&#8217;t innovate<br />
2. Manufacturers only chance of thriving lies in to &#8216;collaborating &amp; circumventing&#8217; existing channels. If they fail to do that they will just become plain commodity traders.</p>
<p>Steve.</p>
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		<title>By: Andre Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16516</link>
		<dc:creator><![CDATA[Andre Sammartino]]></dc:creator>
		<pubDate>Fri, 03 Feb 2012 02:12:02 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16516</guid>
		<description><![CDATA[Seems one FMCG firm agrees (at least a little) with my view of the low value of their marketing folks:

http://www.businessinsider.com/pg-ceo-to-lay-off-1600-after-discovering-its-free-to-advertise-on-facebook-and-google-2012-1]]></description>
		<content:encoded><![CDATA[<p>Seems one FMCG firm agrees (at least a little) with my view of the low value of their marketing folks:</p>
<p><a href="http://www.businessinsider.com/pg-ceo-to-lay-off-1600-after-discovering-its-free-to-advertise-on-facebook-and-google-2012-1" rel="nofollow">http://www.businessinsider.com/pg-ceo-to-lay-off-1600-after-discovering-its-free-to-advertise-on-facebook-and-google-2012-1</a></p>
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		<title>By: Andre Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16505</link>
		<dc:creator><![CDATA[Andre Sammartino]]></dc:creator>
		<pubDate>Wed, 01 Feb 2012 06:02:45 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16505</guid>
		<description><![CDATA[But what if the big lesson for these FMCGs is that most consumers couldn&#039;t give a rat&#039;s behind about who puts a name and design on the outside of their soap powder, deodorant, crunchy nut flakes or black fizzy sugar drink?  

If so, then the big &#039;losers&#039; in this are going to be the spin merchants who&#039;ve convinced shareholders that they should be paid six figures to say things like &quot;brand value systems&quot;.

My guess is that 99% of consumers have no desire to wade through some other less efficient distribution channel than the current model of bringing together 5,000-25,000 different consumer staples under one physical roof where they are all sorted into categories we use (or don&#039;t use) and can navigate pretty efficiently.  I don&#039;t see any joy in waiting by the mailbox for my extra-special personalised toilet rolls to arrive by hovertruck.]]></description>
		<content:encoded><![CDATA[<p>But what if the big lesson for these FMCGs is that most consumers couldn&#8217;t give a rat&#8217;s behind about who puts a name and design on the outside of their soap powder, deodorant, crunchy nut flakes or black fizzy sugar drink?  </p>
<p>If so, then the big &#8216;losers&#8217; in this are going to be the spin merchants who&#8217;ve convinced shareholders that they should be paid six figures to say things like &#8220;brand value systems&#8221;.</p>
<p>My guess is that 99% of consumers have no desire to wade through some other less efficient distribution channel than the current model of bringing together 5,000-25,000 different consumer staples under one physical roof where they are all sorted into categories we use (or don&#8217;t use) and can navigate pretty efficiently.  I don&#8217;t see any joy in waiting by the mailbox for my extra-special personalised toilet rolls to arrive by hovertruck.</p>
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		<title>By: Steve Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16489</link>
		<dc:creator><![CDATA[Steve Sammartino]]></dc:creator>
		<pubDate>Mon, 30 Jan 2012 07:31:50 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16489</guid>
		<description><![CDATA[Exactly - I reckon there is a big prize for FMCG entrepreneurs who get on this space and do what the brand owners are too gutless to do

SS]]></description>
		<content:encoded><![CDATA[<p>Exactly &#8211; I reckon there is a big prize for FMCG entrepreneurs who get on this space and do what the brand owners are too gutless to do</p>
<p>SS</p>
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		<title>By: Chrisso</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16488</link>
		<dc:creator><![CDATA[Chrisso]]></dc:creator>
		<pubDate>Mon, 30 Jan 2012 06:06:35 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16488</guid>
		<description><![CDATA[Direct to consumer is the way it&#039;s heading!  Great times for logistics/fulfilment organisations to work collaboratively and creatively with brand owners to hook into the e-tailing tsunami that has washed over the higher value consumer goods market ... That and creative MLM ;)]]></description>
		<content:encoded><![CDATA[<p>Direct to consumer is the way it&#8217;s heading!  Great times for logistics/fulfilment organisations to work collaboratively and creatively with brand owners to hook into the e-tailing tsunami that has washed over the higher value consumer goods market &#8230; That and creative MLM <img src='http://s1.wp.com/wp-includes/images/smilies/icon_wink.gif' alt=';)' class='wp-smiley' /> </p>
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		<title>By: Steve Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16487</link>
		<dc:creator><![CDATA[Steve Sammartino]]></dc:creator>
		<pubDate>Mon, 30 Jan 2012 02:55:19 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16487</guid>
		<description><![CDATA[You clearly get it. Ok - so you and I need to talk about my FMCG retail fightback startup....  Seriously. I jest not.

Steve.]]></description>
		<content:encoded><![CDATA[<p>You clearly get it. Ok &#8211; so you and I need to talk about my FMCG retail fightback startup&#8230;.  Seriously. I jest not.</p>
<p>Steve.</p>
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		<title>By: Al</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16486</link>
		<dc:creator><![CDATA[Al]]></dc:creator>
		<pubDate>Mon, 30 Jan 2012 01:43:53 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16486</guid>
		<description><![CDATA[A solid summary of the current situation. As per many other articles, the real risk to this current growth in retailer power and private label, consumers, with a &#039;today&#039; focus on lowest cost will happily trade out of a brand in to private label / control brand. However the risk lies &#039;tomorrow&#039; when, once choice is gone, retailers can be free to push up price like never before, knowing that they control the total value chain. 

Some form of &#039;cooperative&#039; is definitely an interesting idea. Whilst some brands (ie Fosters, Heinz and Goodman Fielder) have played hard line either publicly criticizing the retailers, or in Fosters case stopping supply, despite this feeling like a positive step, the negative outcomes that plague these individual brands post these decisions tarnish any of the initial feelings of strength at the time of making the stand.Ultimately it&#039;s like pitching a tent in front of a skyscraper, and until brands work ourt a way to pool their power, the strategy ultimately backfires in favour of the retailers. 

If we are not going to provide a compelling, authentic, and relevant brand experience, all we will do is end up playing on price, and therefore losing the retail war. With consumers more connected than ever, it&#039;s an exciting time to think about getting off the supermarket shelves and in to their lives, in a far more connected and personal way.]]></description>
		<content:encoded><![CDATA[<p>A solid summary of the current situation. As per many other articles, the real risk to this current growth in retailer power and private label, consumers, with a &#8216;today&#8217; focus on lowest cost will happily trade out of a brand in to private label / control brand. However the risk lies &#8216;tomorrow&#8217; when, once choice is gone, retailers can be free to push up price like never before, knowing that they control the total value chain. </p>
<p>Some form of &#8216;cooperative&#8217; is definitely an interesting idea. Whilst some brands (ie Fosters, Heinz and Goodman Fielder) have played hard line either publicly criticizing the retailers, or in Fosters case stopping supply, despite this feeling like a positive step, the negative outcomes that plague these individual brands post these decisions tarnish any of the initial feelings of strength at the time of making the stand.Ultimately it&#8217;s like pitching a tent in front of a skyscraper, and until brands work ourt a way to pool their power, the strategy ultimately backfires in favour of the retailers. </p>
<p>If we are not going to provide a compelling, authentic, and relevant brand experience, all we will do is end up playing on price, and therefore losing the retail war. With consumers more connected than ever, it&#8217;s an exciting time to think about getting off the supermarket shelves and in to their lives, in a far more connected and personal way.</p>
]]></content:encoded>
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		<title>By: Steve Sammartino</title>
		<link>http://startupblog.wordpress.com/2012/01/30/the-truth-about-fmcg-in-australia/#comment-16485</link>
		<dc:creator><![CDATA[Steve Sammartino]]></dc:creator>
		<pubDate>Mon, 30 Jan 2012 00:44:15 +0000</pubDate>
		<guid isPermaLink="false">http://startupblog.wordpress.com/?p=6392#comment-16485</guid>
		<description><![CDATA[Actually - the AFL really have an old world view. They should be thinking about their own digital channel and sell media direct via media agencies... They would end up generating double their 1.3 billion...

Absolutely - that is a cracking idea Sean, Australian marketers should going to the USA tech firms and selling their ideas as test markets...

Hmm - there&#039;s an idea or two in that.
Steve.]]></description>
		<content:encoded><![CDATA[<p>Actually &#8211; the AFL really have an old world view. They should be thinking about their own digital channel and sell media direct via media agencies&#8230; They would end up generating double their 1.3 billion&#8230;</p>
<p>Absolutely &#8211; that is a cracking idea Sean, Australian marketers should going to the USA tech firms and selling their ideas as test markets&#8230;</p>
<p>Hmm &#8211; there&#8217;s an idea or two in that.<br />
Steve.</p>
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