2. SECTOR REVIEW
• 4th Largest sector in India
• FMCG Market size: US$ 74
billion in 2018
• India accounts for 0.68% of
global FMCG market.
• Semi-urban and rural segments
has a revenue share of 40 per
cent
Food, 43%
Personal care, 22%
Fabric, 12%
Others, 23%
3. PORTERS FIVE FORCES MODEL
Competitive
Rivalry
HIGH
Private label
brands by retailers
are priced at a
discount to
mainframe brands
limits competition
for the weak
brands
Highly fragmented
industry as more
MNCs are entering
Bargaining
power of Buyers
HIGH
Low switching
cost induces the
customers’
product shift
Influence of
marketing
strategies
Threat of new
Entrants
MEDIUM
Huge
investments in
setting up
distribution
network and
promoting
brands
Spending on
advertisements is
aggressive
Threats of
substitutes
HIGH
Presence of
multiple brands
Narrow product
differentiation
under many
brands
Price war
Bargaining
power of
Suppliers
LOW
Big FMCG
companies are
able to dictate
the prices
through local
sourcing from a
fragmented
group of key
commodity
suppliers
4. COMPANY REVIEW
• Established in 1892
• Headquartered in Kolkata but
now switched to Bengaluru
• Product variants- bakery,
confectionary & dairy
• Chairman- Nulsi N Wadia
, ,
market share
6. SWOT ANALYSIS OF PURE MAGIC
Strength
•Has strong brand name
•Flavors of different variety
•Innovative and target based advertisement
Weakness
•A bit costly from normal chocolate biscuit
•Low penetration in rural areas
•Requires high investment in advertisement
Opportunities
•Exploring rural market
•Introducing in various price ranges
Threats
•New entrants like Cadbury Oreo, Parle-G Milano
, sun feast dark fantasy
•Margin war among the major brands
7. PRICING
Company Product Price
Britannia Pure magic 75gms-Rs.30
Parle-g Milano 75gms-Rs.35
Sunfeast Dark fantasy 75gms-Rs.30
• The pricing strategy which is
used by Britannia for Pure
magic is “GOING RATE PRICING”
• That is basically using the price
which is used by competitors
P L A C E
Manufacturing Units: 46+
Depots : 53
Auth. Whole sellers: 1500
Distributors: 2500
Retail outlets: 1.20 mn
10. SIGNIFICANT RATIOS
Name of ratio Working
note number
2017 2016
Gross profit 1 49.39% 51.62%
EBIT Margin 2 14.42% 14.45%
Net profit margin 3 9.72% 9.59%
Earnings per share 4 70.31 63.66
Debt to equity ratio 5 0.00 0.00
Current ratio 6 1.84 1.35
Working capital 7 829.73 (crore) 15.06 (Crore)
Direct expenses
Cost 2017 %change 2016
Excise duty 270.02 18%(increase) 228.92
Raw material consumed 5247.47 14%(increase) 4645.07
Carriage inward and
freight
426.30 5%(increase) 406.85
Indirect expenses
Cost 2017 % change 2016
Employee expenses 241.68 12%(increase) 216.24
Advertising and sales
promotion
322.07 16%(decrease) 384.25
Conversion charges 557.97 0.10% (increase) 557.39
Other expenses 463.89 13%(increase) 410.68
11. SKILL SET REQUIRED FOR THE COMPANY
Planned and Focus
Ambition and Risk-Taking
Commitment to employees and customers
Attitude and Ethics
Training and Assessment.
Technical Skills
Good Communication Skills
Supervising Skills
Management Skills
Negotiating Skills
12. Responsibilities as a HR
Professional
Human resource
Employee
development
Employee
maintenance
+
Understand the
business
And provide
training
accordingly
+
Manage
recruitment and
selection process
+
Define payroll
Update leave
record
+
Post graduate in HR
Minimum 6 years of experience
JOB DESCRIPTION & JOB SPECIFICATION
13. Responsibilities as a Finance
Professional
finance
Inventory
management
+
Financial
analysis
+
Asset management
+
Payable
Management
+
Graduate degree holder
Minimum 4 years of experience
Preference given to degree holders in
accounting and finance
JOB DESCRIPTION & JOB SPECIFICATION
14. Responsibilities as a Marketing
Professional
marketing
Analyze market
trends
And
recommend
changes
+
Preparing
marketing
strategies
+
Design print
advertisements
and publication
+
Plan marketing
&branding
objectives
+
Graduate degree holder
Minimum 5 years of experience
Preference given to degree holder
advertising , marketing management
JOB DESCRIPTION & JOB SPECIFICATION
15. Sources of Recruitment, Selection Process
Training and Employee Benefit
Selection Process
•Criteria development
•Application and résumé review.
•Interviewing
•Test administration
•Making the offer
Sources of Recruitment
•Specialist Recruitment Agency
•Advertisements
•Networking
•Head Hunting
Types of Training
•Technical or Technology Training
•Quality Training
•Skills Training
•Soft Skills Training
•Professional Training and Legal Training
•Team Training
Employee Benefit provided
•Insurance health and wellness
•Financial and retirement
•Family and parenting
•Vacation and time off
•Perks and benefits
•Professional support