Fmcg sector india


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Fmcg sector india

  1. 1. Cold Cream Soap Pain Relief
  2. 2. NOTE : This presentation is prepared on marketing point of view and are subject to India only. All data are updated & Some of the pictures used in presentation are edited as per requirements
  3. 3. Info Source:  CII  Google images  FMCG Co. Websites  Wikipedia  PDF Document Digital News:  Business Maps of  India Money Manufacturing today Business Standard Trading
  4. 4.  CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's development process.  Founded in 1895, India's premier business association has over 7100 members, from the private as well as public sectors, including SSI,MSI and MNCs and an indirect membership of over 90,000 enterprises from around 257 national and regional sectoral industry bodies.
  5. 5. 2014 …What’s Happening???
  6. 6. Indian FMCG Sector are in for salary hikes of over 10% this year(2014)
  7. 7.  PepsiCo's largest beverage plant in India is coming up in Andhra Pradesh at a cost of Rs. 1,230 crore, its single largest investment in India  direct and indirect employment for 8,000 people  It will invest Rs. 33,000 crore ($5.5 billion) in India by 2020
  8. 8. Deepika Padukone becomes Brand amassador of Coco Cola for Rs 6 Cr. Deal (5th March 2014)
  9. 9. Emami signs Sonakshi Sinha as brand ambassador for Boro Plus (March 20th ) Tang introduces bottle pack for summer Mortein launches awareness drive “U & ME AGAINST DENGUE”
  10. 10.  Widely-popular fast-food chain McDonald announced its decision to launch its international coffee format McCafe in India  Jubilant Food Works to invest Rs 250cr in 2014.  Cadbury has developed a new heat-tolerant chocolate which is capable of withstanding temperatures of up to 40 degree Celsius
  11. 11. Parle Agro’s Café Cuba carbonated coffee to Target Youth
  12. 12. Glaxo Smithkline pays 1 billion USD to increase its stake in Indian Subsidiary (March 10th 2014)
  13. 13.  Fast Moving Consumer Goods (FMCG) goods, popularly named as consumer packaged goods.  Goods are purchased by the consumers repeatedly on daily, weekly & on monthly basis.  The price of such products per unit is low.  The consumption of such products is very high , Hence sold at large quantities.  FMCG Brands like HUL, ITC, Marico, Dabur etc..
  14. 14. FOOD & BEVERAGES Health beverages, cereals, bakery products, snacks, chocolates, ice cream, tea/coffee/soft drinks, processed fruits and vegetables, dairy products, ,branded flour .etc… PERSONAL CARE Oral care, hair & skin care, cosmetics/deodorants, perfumes paper products etc… HOUSE HOLD CARE Fabric wash, Household cleaners HEALTH CARE OTC products FMCG
  15. 15. INDUSTRY AT A GLANCE  FMCG sector is the fourth largest sector in the economy with a total market size of US $13.1 billion Rs 79,000 Crores  FMCG sector has grown at an average of 11% a year; in the last five years. & in last 10 years the industries size has tripled.  Expected to reach 33.4 billon USD.  FMCG’s GDP contribution rises by 24%, & FMCG sector represents nearly 2.5% of countries GDP.  Cumulative FDI from April 2000 to 2013 April in Food Processing was Rs 9,000 cr. & soaps,cosmetics-3,115.5cr.
  16. 16.  Food products are the leading segment, accounting for 43% of the overall market, nearly 21 per cent of the country‘s GDP.  Food & personal care products make up two third of the sector’s revenue  Ready to drink TEA & COFFEE expected to grow rapidly in next 4 years.  Out of every 10,00,000 new jobs, 16% is created in FMCG.
  17. 17. Indian FMCG Market segment 2% 12% 43% 8% 4% 4% 5% 22% Baby Care 2% Fabric Care 12% Food Products 43% Hair Care 8% Household 4% OTC Products 4% Others 5% Personal Care 22% Source : PDF Doc.
  18. 18.  The urban FMCG market in India has been growing at a fairly steady and healthy rate over the years.  The growth in rural markets has been more fast-paced.  Companies are now focusing on the rural market segment which is contributing more than 35 per cent to the total FMCG market  More than 80 per cent of FMCG products have posted faster growth in rural markets as compared to urban ones in the past.  Notable high growth items include snacks, refined edible oil, healthcare products, Iodised salt etc..
  19. 19. Penetration level  Hairoils, Soaps, toothpastes, Jams and shampoos have significantly high penetration in both urban and rural markets  Instant noodles, floor cleaners and hair dyes are picking up in the rural areas due to increased awareness  More than 200 million people expected to shift to processed & packaged food
  20. 20. Highly exported items:  TEA & Coffee  Processed food, frozen ,dehydrated foods, Instant food, Ready to eat food, Preserved vegetables & Sea food, Mangopulp, Poultry & meat products, Confectioneries. India also imports Foreign personal care products, Packaged Food, Health Care Products. Exports & Imports
  22. 22.  Direct marketing  Using INDIA as a brand  Small size packet strategy  Pricing strategy  Aggressive campaigns & Promotional strategies 'Maine Desh Ka Namak Khaya Hai'
  23. 23. Distribution channel Manufacturers /Marketers State & territory distributors Urban , Semi urban & Rural Stockists/Wholesalers Organized and Unorganized market Customers/Consumers E-Commerce (ITC’s Std. Distribution Channel)
  24. 24. Some Mergers , Acquisitions, J.V’s P&G-Gillette merger
  25. 25. Rin & Surf excel bar Strategy HUL made a unique marketing step in 2006. Rin Supreme became Surf Excel Bar..
  26. 26. FMCG Contribution to Indian Economy  Employment Approximately 12-13 million retail stores in India, out of which 9 million are FMCG kirana stores. So the sector is responsible for the livelihood of almost 13 million people  Fiscal contribution 30% revenue of the sector goes into both direct and indirect taxes. estimated size of $25 billion (Rs. 1,52,500 crores)  Social contribution FMCG firms have also undertaken some specific projects ( P&G, ITC ,TATA, Wipro etc..)  Agriculture - Its intake of agricultural output as raw material is estimated to US$ 2.2 billion(Rs. 13,640crores).  logistics market for the FMCG sector in India has been growing and is estimated to be US$ 146 million (Rs. 950 crores)
  27. 27. SWOT Analysis Strengths-  Low operational costs.  Presence of established distribution networks in both urban and rural areas.  Presence of well-known brands in FMCG sector.  Favourable governmental Policy: Indian Government has passed the policies aimed at lifting of the quantitative restrictions, reducing excise duties, 100 per cent export oriented units can be set up by government approval etc..  Foreign Direct Investment (FDI):  Automatic investment approval up to 100%foreign equity is allowed for most of the food processing sector, FDI in organized retail: India currently allows 100% FDI in Cash & Carry segment.
  28. 28. Weakness  Low export levels  Counterfiet products The fake products are affecting the sales of leading brands by almost 20-30 per cent i.e 15% of its revenue
  29. 29. Opportunities  Untapped rural market, changing life style.  Rising income levels, i.e. increase in purchasing power of consumers.  Large domestic market with more population of median age 25.  High consumer goods spending.  India is the largest milk producer in the world, yet only around 15 per cent of the milk is processed,hence has large long-term growth potential.  Only about 10-12 per cent of output is processed and consumed in packaged form, thus highlighting the huge potential.
  30. 30. Threats !!!  Removal of import restrictions resulting in replacing of domestic brands  Tax and regulatory structure  Rural demand is cyclical in nature and also depends upon monsoon.
  31. 31. To name a few…  Amitabh Bachan  SRK  Aamir khan  Hrithik Roshan  Salman  Puneeth  Dhanush  Aishwarya Rai  Kareena Kapoor  Katrina Kaif  Madhuri Dixit  Sania Mirza  Saina Nehwal  Mary Kom  Sachin tendulkar  MS Dhoni  Virat Kohli (Brand Ambassadors in FMCG)
  32. 32. A (PESIT, Bangalore ) Presentation By : darsh Gaonkar