Fast Moving Consumer Goods ( FMCG ) Marketing VIKAS KUMAR
One of the fastest growing sector in early 1980’s till 1990’s
The dream of every creative man, any investor, advertising agency, or B-school graduate to work in or for FMCG company.
FMCG started losing their sheen due to introduction of other product types
Total lack of imagination on the part of FMCG companies.
By 2000, volumes & margins either shrank or stagnated
During 2006, Consumers willingness to upgrade to better, value added products helped FMCG.
What is FMCG ?
Also known as Consumer Packaged Goods (CPG)
Products with quick turnover &relatively low cost
Less thinking by consumers
Absolute profit made on FMCG products is relatively small but they sell in large quantity & earn large profits.
Durable Products; E.g. Soaps, Cosmetics, teeth cleaning products, shaving products etc.
Non-Durable Products; E.g. Glassware's, bulbs, batteries, plastic goods etc.
FMCG companies are Nestle, Unilever, Proctor & Gamble.
Their products are in varieties of soft drinks, chocolate bars etc.
Few FMCG brands are Coca-Cola, Kleenex, Pepsi etc.
FMCG industry is
Full of Rich Experience
Frequently travelling opportunities
FMCG Category & Products
e.g. laundry soaps, mosquito repellents, dish cleaners etc.
Food & beverages
e.g. soft drinks, bakery products, tea, coffee, vegetables etc.
e.g. oral care, hair care, skin care, cosmetics, deodorants, perfumes etc.
Large Domestic Market:-
Large Consumer Goods Spender:-
Low Penetration & Low per Capita consumption :-
Retailing – New growth area
Demand & Supply Gap
India’s competitiveness & Comparison with World Market
Leveraging The Cost Advantage:-
e.g. P & G outsourced Vicks Vaporub to Australia, Japan etc. from Hyderabad
Britannia India Ltd. (BIL)
Dabur India Ltd.
Indian Tobacco Corporation Ltd. (ITCL)
Cadbury India Ltd. (CIL)
Colgate Palmolive India
H.J. Heinz Co.
Hindustan Lever Ltd. (HLL)
Nestle India Ltd.
Procter & Gamble
FMCG Vs. Industrial Marketing Industrial Marketing FMCG Relationship driven Product Driven Maximize value of relationship Maximize value of transaction Small focused target market Large target market Multi-step Buying process, longer sales cycle Single-step Buying process, shorter sales cycle Rational buying decision based on business value Emotional buying decision based on status, desire or price
Social and Economic
Zone region- nearest zone will be targeted first
Villages and town- helps to analyze marketing strategy
Age- children or adult
Gender-male or female
Income group- high, medium or low
Social and Economic- Education (illiterate, literate , highly literate), social class
Occasions ( Diwali, Deshehra, Eid)
Brand loyalty (rural area people are more brand loyal)
Direct on-screen marketing (e.g. Harpic)
Power brand strategy
(Include those brand that have maximum pulling power and growth e.g. lifebuoy soap)
Power brand extension (e.g. lifebuoy talcum powder)
Exit from non power brand
Using “India” as a brand
Small size packet strategy
Go- deterring (e.g. bingo chips)
Same value, size increase
Same value, size decrease (e.g. society tea)
Differs from product to product
1. Mc Donald's – Youth
2. Vim bar - Housewives
3. Pepsodent – Kids
4. Kellogg's – Previously kids now adults too
5. Sugar free – Age group of 35 and more
Huge investment on advertisement
Specially during peak hours
During live matches
During popular TV shows
Target TV channels ( M TV, V TV)
Through banners, posters, trial packs, events, hoardings, radio etc.
Based on Market Research
As a reminder
To inform about our product
To show the success of brand
To attract the customers
To hamper the unsecured mind of consumer (e.g. saffola,dettol)
To arise the need purposely
To attach consumer emotionally with product
To show facts and figures of products
Surf excel for washing machine
Vim bar gel
Happy dent chewing gum
Bourn vita, Horlicks
Pepsi, sprite, coca-cola
Why product line extension is done?
According to the need of consumer
To avoid the loss of product diversification
To balance the profit through product line
To avoid penetration by competitor ( perk glucose)
Pack will show the important feature of product
Protective packaging( bru coffee)
Size wise packing (Navratna oil and Colgate)
According to segmentation of Market
Packaging should be enhanced time by time
Affordable packs ( coca cola 200 ml).
Latest scenario in FMCG market
Increasing per year with the growth rate of 9 percent
Price of raw materials are decreasing
Cost of machinery required for consumer goods are less then durable goods.