BIB, Oils, FFP - The Beginner’s Guide to FMCG Speak
October 24th, 2007It is so appropriate that the only industry with an acronym for a name, FMCG (Fast Moving Consumer Goods), should be so dominated with jargon. I have only worked with clients in this industry in the last 18 months and I have to say I find it quite fascinating.
They do, however, speak a different language. Here is a quick guide to get you started:
Oils
This refers to the petrol stations owned by the major oil corporations. E.g. Shell, BP, Caltex etc. There is far great margin on chocolate bars and soft drinks sold in the shop, than the petrol on the forecourt. Due to the consolidated nature of the industry, the "oils" are an extremely lucrative trade partner for FMCG marketers, whilst at the same time having enormous purchasing power. They can literally make or break your brand in some cases.
Route
These are the diaries and small convenience stores. Much smaller customers, but important due to the large volume and the ability to get your products into as many neighbourhoods as possible.
Grocery
This is more obvious, the supermarkets.
BIB
Bag in Box - in the soft drink business this is the product you sell to fast food restaurants. Large plastic bags filled with concentrate which the restaurants can put into their machines and mix with carbonated water.
Flavour Flow Planogram
No, this has nothing to do with aging rap legend turned reality show star. A planogram is how products are presented in a glass fronted fridge or on a shelf in a shop or supermarket. A Flavour Flow Planogram is where products are arranged in order of flavours, so all the cola drinks, then all the water drinks, then all the lemon flavoured drinks etc.
Larger brand conglomerates like Coca-Cola obviously don’t want this. They want to be at the top of the aisle with all their products grouped together, so that you get all your different flavour products from their range and so by the time you get to the competitors, you already have everything you need for the week in your shopping trolley.
Carbonated Footprint
This is my favourite, refers to when a consumer will choose to buy a diet/sugar free soft drink when purchasing fast food so they can reduce their "Carbonated Footprint" and justify that extra burger/slice of pizza/fried chicken wing.
This is by no means an exhaustive list but I’ll add to it over time for my own reference more than anything.
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