MAJOR CHALLENGES TO THE INDUSTRY Inadequate distribution network. High competition between large and small players. Taylor made products with attractive packaging. Collaboration and partnership do work !!! Reach and role of distribution. Low price high quality, high price high quality or low quality equivalent to price Competent front end sales force. Technology
GLOBAL PLAYER IN INDIA Hindustan Unilever Limited Procter & Gamble Limited (P&G) Godrej Consumer Products Limited (Godrej) Dabur India Limited (Dabur) Colgate-Palmolive (India) Limited Nestle India Limited
MARKET SEGMENTFOOD PRODUCTS IS THE LARGEST CONSUMPTION CATEGORY ININDIA, ACCOUNTING FOR NEARLY 21 PER CENT OF THE COUNTRY‘S GDP. Indian FMCG market segment WWW.IBEF.ORG Baby Care 2% Fabric Care 12% Food Products 43% Hair Care 8% Household 4% OTC Products 4% Others 5% Personal Care 22%
ADVANTAGE TO INDIA WWW.GOOGLE.COM LARGE AND GROWING YOUTH POPULATION EMERGENCE OF INFRASTRUCTURE ORGANISEDRETAIL DEVELOPMENT BUSINESS Advantage India SIGNIFICANT INCREASE IN GROWING CONSUMPTION URBANISATION LEVELS INCREASING DISPOSABLE INCOME
SWOT ANALYSIS OF FMCG INDUSTRYSTRENGTHS Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector
WEAKNESSES Lower scope of investing in technology and achieving economies of scale, especially in small sectors. Low exports levels "Me-tooʺ products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.
OPPORTUNITIES Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Large domestic market- a population of over one billion. Export potential High consumer goods spending
THREATS Removal of import restrictions resulting in replacing of domestic brands. Slowdown in rural demand Tax and regulatory structure
TRENDS & PLAYERS The Structure Critical operating rules in Indian FMCG sector Majority of the product classes require very low investment in fixed assets Existence of contract manufacturing Marketing assumes a significant place in the brand building process Providing good price points is the key to success
YOGESH CHANDER DEVESHWARBorn on 4 Feb,1947Chairman of ITC LimitedEducationBachelor of Technology Degree in Mechanical Engineeringfrom the Indian Institute of Technology,Delhi in 1968AMP Diploma from Harvard Business School, United StatesCarrerHonours & Awards
PAUL BULCKE Born on 1954 CEO of Nestle on 20th Sep,2007 Education graduated as a commercial engineer at the Katholieke Universiteit Leuven and is an alumnus of the Vlerick Leuven Gent Management School. He also, attended the program for Executive Development at the Swiss leading business school International Institute for Management Development, IMD in Lausanne.
ROBERT A MCDONALD Born on 20th June,1953 President & CEO of Procter & Gamble Early Life & Carrer Awards & Positions In 2007, McDonald received the inaugural Leadership Excellence Award from the U.S. Naval Academy and Harvard Business Review
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