FMCG Industry


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Analysis of FMCG Industry in terms of top 5 players

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FMCG Industry

  1. 1. By Team Members:- Members:- 1. A Sindhuja (12PGP001) 2. Arnab Roy (12PGP008) 3. Bir Bahadur Singh (12PGP014) 4. Komal Billu Kujur (12PGP021) 5. Sathiyasundaram T (12PGP038)9/29/2012 Indian Institute of Management Raipur 1
  2. 2. ____ __ABOUT THE SECTOR• FMCG Quick Turnover and relatively low cost (soaps , toothbrush, chocolate etc)• Fourth Largest – US$ 13.1 billion• Burgeoning population + middle class + rural class = huge market• MNCs , Unorganized, Organized , Distribution Competition• Inelastic demand for addictives (constant revenue – ITC )9/29/2012 Indian Institute of Management Raipur 2
  3. 3. ____ __ PLAYERS9/29/2012 Indian Institute of Management Raipur AND MANY MORE…. 3
  4. 4. ____ MARKET SCENARIO Others, 2% Market Cap (in Rs.000Crore) 160 Tobacco, 15% 140 120 100 Personal 80 Food & Care, 20% 60Beverages 40 , 53% 20 Househol 0 d Care, 10% Market Cap (in Rs.000Crore) Constituents Segmentation Market Cap Distribution9/29/2012 Indian Institute of Management Raipur 4
  5. 5. __ MAJOR PLAYERS Founded 1932 Head Quarter Mumbai Chairman Harish Manwani CEO Nitin Pranjape Revenue 22,116 crores(2011-2012) Employees 16,500(2011) Parent Unilever Plc (52%) company Founded 1837 Head quarter Cincinnati,USA Chairman Robert A. McDonald CEO Robert A. McDonald Revenue $82.55 billion (2011-2012) Employees 129,000(2011)9/29/2012 Indian Institute of Management Raipur 5
  6. 6. __ MAJOR PLAYERS Founded 1867 Head quarter Vevey, Switzerland Chairman Peter Brabeck-Letmathe CEO Paul Bulcke Revenue CHF 83.64 billion Employees 328,000Founded 1910Head Quarter KolkataChairman Yogesh Chander DeveshwarCEO Yogesh Chander DeveshwarRevenue US$ 7 billion(2010)Employees 29,000 9/29/2012 Indian Institute of Management Raipur 6
  7. 7. __ MAJOR PLAYERS Founded 1884 Head Quarter Ghaziabad Chairman Anand Burman CEO Sunil Duggal Revenue US$ 1 billion Employees 30009/29/2012 Indian Institute of Management Raipur 7
  8. 8. __ COMPETITIVE PATTERN Generic Form Pizza Cakes Industry Brand Burger Chips Britannia Bourbon Home- Chocolates Parle Milk Biscuits made food ITC Marie Krack-Jack BISCUITS9/29/2012 Indian Institute of Management Raipur 8
  9. 9. ____ SWOT ANALYSISSTRENGTH:- OPPORTUNITY:-1. Low Operation Cost. 1. Vast untapped Rural Market.2. Established Distribution 2. Rising Income Level.Network. 3. Export Potential3. Presence of global players.WEAKNESS:- THREAT:-1. Low intervention from 1. Tax & Regulatory 2. Illegal mimic of the label.2. No entry barrier soeveryday a new product comesinto the market.9/29/2012 Indian Institute of Management Raipur 9
  10. 10. ____ SWOT ANALYSISANALYSIS HUL ITC Nestle Dabur P&GStrengths *Variety of product *Strong & experienced *Strong Brand. *World’s largest *Strong brand image *Distribution management *Ability to Ayurvedic medicine *Innovation &R&D Network *Strong Brand customise Product. provider distribution *Diversified product *Brand image presence *R&D ability. network portfolio *Quality *Diversified products *Strong operation *Powerful brand *Strong distribution management *Excellent R&D facility with diversified ambassadors network *Innovation and *HR Pool revenues base *Extensive supply *Global operation R&DWeakness *No big impact on *Dependent on its *Product recall *Uneven Profitability *No big impact in rural area tobacco revenue Hampering across different rural area *Competition from *Hotel industry has not Brand Product lines. *Dependence on its own brand producing large market and equity *No direct company wall-mart stores for (lux,Liril) share outlets. majority of its *No focus on upper *Various products revenue class population under the same *Over dependence product line on mature market *People’s preference of like USA and western allopathic over countries Ayurveda. *Quality control *Low R&D work. problem. *Lack of Marketing Strategy. *Online presence is9/29/2012 low. Indian Institute of Management Raipur 10
  11. 11. ____ SWOT ANALYSIS (Contd…) ANALYSIS HUL ITC Nestle Dabur P&GOpportunity *Huge market *Tap rural market & Transactional to a *Huge Market. *Acquisition *Increasing per increase penetration in “Nutrition & well *Increasing per capita &resultant value capita income urban area Being company” Income. generation Social initiative *Merger and *Booming out focus of *Growing demand of *Growing Indian *Rural market still acquisition to home eating market health supplements. FMCG market untapped strengthen the brand *Focus on developing *Rural Market still *Expansion in *Westernisation of and emerging untapped. developing life style economies *Various other markets campaigns in the support of Ayurveda. Decrease in TaxationThreats *Emergence of *Strict govt rule & *Compliance issue *Emergence of Other *Emergence of other players policies regarding resulting in penalty Players. other players *Tax and cigarettes payments *Youth’s attraction to *Regulatory Regulatory *Increasing *Allegation of unethical western life style. environment structure competition among business activities *Growth in Tobacco *Global economic *Scepticism about FMCG companies *Macro economic sector where Dabur is condition MNCs *FDI in retail market factors not present at all. *Increase in the *Increasing cost of *Increasing Cost of Raw cost of raw Raw materials Materials. materials *Over dependency on technology infrastructure9/29/2012 Indian Institute of Management Raipur 11
  12. 12. ____ BCG ANALYSIS STATUS HUL ITC Nestle Dabur P&G Chayawanprash Axe Ariel HajmolaCASH COW Vaseline Cigarettes Ceralac Vicks Amla petroleum jelly Tide Vatika Lux. Gillett Sunsilk. Real fruit juice. Pantene Fair & lovely. Paperboards / Nescafe Active fruit juice. Head and STAR Ponds packaging. Maggi noodles Dabur red tooth shoulders Kissan ketchup. Agri business. paste Pamper Surf excel. Whisper Annapurna atta. Milo Automotive Kitkat/Munch Rin Furniture Maggi soup OdomosQUESTION Pepsodent Financial Neltle butter Sanifresh Olay MARK Domex Tobacco Nesvita Oxylife facial Food Nestle Maggi Nestle butter Nestea Dabur gulabari Wheel. DOG ITC infotech. Milky bar Burst fruit juice Sunlight. Wella 9/29/2012 Nestle crunch Indian Institute of Management Raipur Dabur meswak. 12
  13. 13. ____ SUCCESES• Perfect stores – Improved availability & visibility – 16000 perfect stores in 130 towns• Enhancing livelihoods – Project Shakti• Colgate Bright smiles, Bright futures – Oral Health Educational Program• ITC e-choupal – Metamarket setup• Classmate notebooks – Re.1 donation9/29/2012 Indian Institute of Management Raipur 13
  14. 14. ____ FAILURES• Moti soap – Power brand strategy of HUL – Decrease in premium soap market• Pond’s toothpaste – Wrong selection of territory• Binaca’s acquisition – No stress on promotion9/29/2012 Indian Institute of Management Raipur 14
  15. 15. ____ E-CommerceName Status The time for e-commerce has not come in IndiaHUL especially for FMCG marketP&GNESTLEDABUR urveda.comITC 9/29/2012 Indian Institute of Management Raipur 15
  16. 16. _ Marketing Techniques• Societal marketing – HUL’s Asha Daan• Ambush marketing – Dove’s promotion just before the launch of Pantene• Viral marketing – Bingo’s Contest2win• Green marketing – ITC Farm forestry• Buzz marketing – Maggi guess the taste campaign.9/29/2012 Indian Institute of Management Raipur 16
  17. 17. _ Consumer Behavior• Planning Time » Very Short• Buying Decision » Almost Instant• Influencing Media » TV Commercial mostly• Brand Loyalty » Not much9/29/2012 Indian Institute of Management Raipur 17
  18. 18. _ STP(Major Brands) Attributes Lifebuoy(HUL) Navy Cut (ITC) Real (Dabur) Tide (P&G) Maggi (Nestle) Tagline Healthy hoga Made for each other My Real Fruit White hai to Tide Taste bhi health Hindustan Power hai bhi USP Lifebuoy provides Priced at the deep Fruit flavored Provides good Can be cooked and 100% better protection discount level health drink whitening and prepared in 2 from germs as fragrance at low minutes compared to ordinary price soaps Segment Personal Care – Soap, Medium priced For all people People who have People looking for Hand Sanitizer, Hand cigarettes seeking a healthy fixed budget for a healthy snack fruit based drink Wash household things when hungry for regular occasions, parties like detergents and look for economical options Target All households, to Adult as well as the All age groups Women ages 18 to Young people and provide a 100% anti- youth smokers. It Lower, middle 54 years old, children from Group bacterial soap for extended beyond the and upper class middle classes upper and middle SEC A complete protection people class category to the SEC B as wellPositioning Lifebuoys goal is to Combines smooth A fruit juice made Product which has Tasty and healthy provide affordable and flavour with cool, from real fruits all the qualities snack which can be accessible hygiene and unique packaging at a required from a prepared in 2 health solutions price that is more detergent-quality, minutes affordable for today fragrance and low price9/29/2012 Indian Institute of Management Raipur 18
  19. 19. Product Life Cycle for LUX soap Product Life Cycle (PLC) of any product generally has four stages namely Introduction, growth, maturity and decline as shown in the figure below.9/29/2012 Indian Institute of Management Raipur 19
  20. 20. Different stages of Product Life CycleIntroduction stage: -• Product branding and quality level is established.• Pricing may be low to penetrate the market• Distribution is selective until consumers show acceptance of the product• Promotion is aimed at early adopters and potential customers about the product9/29/2012 Indian Institute of Management Raipur 20
  21. 21. Different stages of Product Life CycleGrowth stage: -• Product quality is maintained• Pricing is maintained as the firm enjoys increasing demand with little competition.• Distribution channel is added as demand increases.• Promotion is aimed at a broader audience9/29/2012 Indian Institute of Management Raipur 21
  22. 22. Different stages of Product Life CycleMaturity stage: -• Product features may be enhanced to differentiate the product from others.• Pricing may be lower because of competition.• Distribution becomes more intensive.• Promotion emphasizes product differentiation.9/29/2012 Indian Institute of Management Raipur 22
  23. 23. Different stages of Product Life CycleDecline stage: -• Maintain the product possibly by adding some new features or finding some new uses.• Harvest the product- reduce the costs and continue to offer it.• Discontinuing the product and liquidating inventory or selling it to other firms who is willing to continue the product.9/29/2012 Indian Institute of Management Raipur 23
  24. 24. Current scenario of LuxLux is currently in the decline stage of its life cycle The reasons for decline of Lux are• Unilever products are in over 100 countries and as a result they are exposed to adverse currency fluctuations.• Huge competition from other soap brands• Due to the economic downturn in 2008-09 people started looking for cheaper brands and sales of Lux declined.9/29/2012 Indian Institute of Management Raipur 24
  25. 25. Product Life Cycle for Maggi NoodlesIntroduction: -• Launched in 1982 by Nestle India• Created new category in packaged food market called instant noodles market9/29/2012 Indian Institute of Management Raipur 25
  26. 26. Current scenario of Maggi Maggi is currently in the maturity stage of PLC and it is facing tough competition from other brands. Following measures need to be taken to prevent it from going down to decline stage of PLC• Change product image• Change product use• Change product positioning• Change product variants9/29/2012 Indian Institute of Management Raipur 26
  27. 27. _ New Products NESTLE ITC HUL9/29/2012 Indian Institute of Management Raipur 27
  28. 28. _ Product Mix PRODUCT MIX FOR DABUR SKIN CARE BABY CARE Hair care Oral care Health Care Dabur Gulabari Dabur Vatika Dabur Ayurvedic Dabur Red SkinCare Shampoo Chyawanprash BabycarePRODUCT LINE LENGTH Herbal & Medicated Vatika Hair Oil Babool Dabur Honey Soaps Dabur Amla Hair Promise Dabur Glucose Oil Dabur Anmo Meswak Real Fruit Juice 9/29/2012 Indian Institute of Management Raipur 28
  29. 29. _ Promotion Mix Personal Sales Direct Advertising Public Relation Selling Promotion marketing ITC Classmate - "Because - Supporting CRY Sunfeast – you are one of a kind" Discounts (NGO) BillboardsHUL Surf Excel - "Daag Pure it - Door Lux - Gold Lakme fashion Kissan Squeezo Achey Hain" to Door selling coins week – BillboardsDabur Fem - Free Real Active - "Purani - Dabur gulabari Vatika business Real active – Jeans" with Fem centre BillboardsNestle Nestle Pure Maggi- Kitkat – Polo - "A mint with Life drinking "Discount on Meri Maggi Billboards the hole" water lage packets" Campaign Pantene -P&G P&G -"Proud sponsor - Everyday Low Sponsor of Billboards of mom" pricing Olympics 9/29/2012 Indian Institute of Management Raipur 29
  31. 31. Marketing Plan For ArielIntroduction: - Ariel was launched in 1991 by P&G India The Enzyme technology Smart Eyes technology Compact detergent technology Wide range of fragrancesVariants of Ariel:- Ariel Front-o-mat Ariel Fresh Clean Ariel Oxyblu Ariel Ultramatic Ariel Spring Clean9/29/2012 Indian Institute of Management Raipur 31
  32. 32. Segmentation of detergent market in India Detergent powder Market Premium Mid-Priced Mass MarketAriel Ultramatic, Spring Surf Excel Blue, Tide, Ghadi, Wheel, Sunlight, Clean, Surf Automatic, Stain Champion Nirma Quick wash9/29/2012 Indian Institute of Management Raipur 32
  33. 33. SWOT Analysis of Ariel Strength Opportunity 1> P&G brand name 1> A big untapped rural 2> 1st detergent to market introduce different fragrances 2> Rs. 5700 crore detergent 3> The use of enzyme market technology Weakness Threat 1> poor promotional 1> Huge competition from strategy other brands 2> Low Advertisement recall 2> Spurious/counterfeit value products in rural area 3> Improper pricing strategy9/29/2012 Indian Institute of Management Raipur 33
  34. 34. Suggestions about new product launch Ariel Quick wash: For removing stains immediately Ariel Silk: For silk and delicate clothes Ariel Bar: For competing with Surf Excel bar, Rin bar etc. Ariel Smart: For woolen clothes and blazers9/29/2012 Indian Institute of Management Raipur 34
  35. 35. Recommendations for market penetration Offering lucky draw coupons with a sure prize to be won inside the pack to attract customers Creating a strong distribution chain to reach the interior parts of India Offering higher incentives to distributors Roping in Yuvraj Singh and his mother for endorsement Penetrate to the mass market by introducing low price variant.9/29/2012 Indian Institute of Management Raipur 35
  36. 36. References••••••••••• Financial_Express_182.aspx?NEWS9/29/2012 Indian Institute of Management Raipur 36
  37. 37. THANK9/29/2012 YOU Indian Institute of Management Raipur 37