Abstract
For decades, fast moving consumer goods (FMCG) manufacturers have focused most of their marketing efforts, expertise and funds on their end-targets who are the consumers. The successive laws addressing the relationship between retailers and manufacturers in France have encouraged the food retail industry to undergo a fundamental shift. The retail industry completely changed its strategic and operational skills due to aggressive expansion into new markets and countries.
It cannot be denied that the current environment is not helping the manufacturers; the increase in purchase of raw materials and energy prices along with the economic crisis has had an impact on companies.
Consequently, the balance of power in the new retailer-supplier relationship is leaning towards the trading side. In addition to being the primary way for brands to reach the consumers, the food retailers have created an extremely concentrated retail market after the invention of global retail powerhouses.
As a result, FMCG manufacturers have to be very adaptable because the economic situation is quite difficult.
Danone group is one of the biggest and most famous FMCG companies which has understood the need to reverse its approach in order to retain its commercial power and hence the reason why the group has set-up a Trade Marketing Strategy for several years now. Danone has always had a strong marketing oriented strategy by paying attention to the retailers as well.
