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FAST MOVING
CONSUMER
GOODS
Meaning
 Fast selling, low unit value, universal demand supplied
 Daily needs satisfying the needs of the consumer
 Right time & place
 Contrasts with durable goods
 Branding
 Distribution Network
 Contract manufacturing
 Large unorganized sector
Top 10 FMCG Companies
• Hindustan Unilever Ltd.
• Indian Tobacco Company
• Nestle India
• GCMMF (AMUL)
• Dabur India
• Asian Paints
• Cadbury India
• Britannia Industries
• Procter & Gamble Hygiene and Health Care
• Marico Industries
Secondary Players
 Colgate-Palmolive India Ltd
 Godrej Consumers Product Ltd
 Nirma Ltd
 Tata Tea Ltd
 Parle Agro
 H.J.Heinz
FMCG Strategy
The consumer buying cycle
FMCG Buyers
Awareness (Caveat Emptor)
Knowledge (Familiar with Market trends)
Linking (Manufacturer-Consumer)
Penchant (Preference)
Conviction (Passion and assurance)
Purchase (Financial terms of income)
Marketing Mix in FMCG
Growth
a. Increased focus on farm sector .
b. Boosts rural income.
c. Betterment of infrastructure will improve supply chain.
d. Low per capita consumption.
e. Change the mindset of the consumers to branded products.
f. Amplified purchasing power in the countryside.
g. Rural India accounts more than 40% of FMCG categories.
h. They are into Personal care, Fabric and Hot beverages.
i. Urban areas records 66% on total FMCG – Household, feminine hygiene, food
segment, skin care.
Recent Developments
 Indirect taxes constitute no less than 35% of the total cost of consumer products in
Asia.
 Finance Minister proposed to introduce an integrated Goods and Service Tax by
April 2010 as it will directly proportionate to reduce the indirect taxes.
 Reduction of duty on edible oil will have a positive impact on Marico.
 Full exemption of excise duty on biscuits.
 Reduction of custom duty on food processing machinery and their parts from 7.5%
to 5%.
 Reduction of excise duty on food mixes from 16% or 8% to nil is positive for ITC.
 FMCG plays a crucial role in Surgery.
FMCG operations
Market Segmentation
Substantiality - refers to the size of segmented markets.
Accessibility – could be attained through existing channels of
distribution.
Representability – withstand the competitors.
Nature of demand – different quantities demanded by various
segment.
Measurability – changing behavior pattern of the consumers.
Responses – obtain feedbacks.
“S” Targeting
Sell : Customer acquisition and retention targets.
Serve : Customer satisfaction targets.
Sizzle : Visit duration and site stickiness
Speak : Trialogue; number of engaged customer.
Save : quantified efficiency gains
Positioning in Services
 Training
 Technology implementations
 Assessment internal and external
 Notification
 Policy
 Incidental Response
 Code Review
 Penetration Testing
 Compliance Auditing
 Architecture Evaluation
 Forensics
 Security Research
Positioning in Business
Legal
Financial
Government
Accounting
Service
Education
Technical aspect
Consumer Behaviour
Peter F. Drucker says, ‘It is the consumer who
determines what a business is … what the customer
thinks he is buying, what he considers to ‘value’ is
decisive - it determines what a business is, what it
produces and whether it will prosper”.
Psychographic classification of consumers
Computerization
Branding
Contribution
Innovation Model
Product Diversifications
Career Opportunities and qualities
• Encompasses large number of market research
• Pricing and Product Development
• Brand Awareness
• Advertising
• Team Player
• Communication Skill set
• Numerical Skill
• Tactfulness
• Job Security
• Quick Experience
• Creativity needed
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Fmcg

  • 2.
  • 3. Meaning  Fast selling, low unit value, universal demand supplied  Daily needs satisfying the needs of the consumer  Right time & place  Contrasts with durable goods  Branding  Distribution Network  Contract manufacturing  Large unorganized sector
  • 4. Top 10 FMCG Companies • Hindustan Unilever Ltd. • Indian Tobacco Company • Nestle India • GCMMF (AMUL) • Dabur India • Asian Paints • Cadbury India • Britannia Industries • Procter & Gamble Hygiene and Health Care • Marico Industries
  • 5. Secondary Players  Colgate-Palmolive India Ltd  Godrej Consumers Product Ltd  Nirma Ltd  Tata Tea Ltd  Parle Agro  H.J.Heinz
  • 8. FMCG Buyers Awareness (Caveat Emptor) Knowledge (Familiar with Market trends) Linking (Manufacturer-Consumer) Penchant (Preference) Conviction (Passion and assurance) Purchase (Financial terms of income)
  • 10. Growth a. Increased focus on farm sector . b. Boosts rural income. c. Betterment of infrastructure will improve supply chain. d. Low per capita consumption. e. Change the mindset of the consumers to branded products. f. Amplified purchasing power in the countryside. g. Rural India accounts more than 40% of FMCG categories. h. They are into Personal care, Fabric and Hot beverages. i. Urban areas records 66% on total FMCG – Household, feminine hygiene, food segment, skin care.
  • 11. Recent Developments  Indirect taxes constitute no less than 35% of the total cost of consumer products in Asia.  Finance Minister proposed to introduce an integrated Goods and Service Tax by April 2010 as it will directly proportionate to reduce the indirect taxes.  Reduction of duty on edible oil will have a positive impact on Marico.  Full exemption of excise duty on biscuits.  Reduction of custom duty on food processing machinery and their parts from 7.5% to 5%.  Reduction of excise duty on food mixes from 16% or 8% to nil is positive for ITC.  FMCG plays a crucial role in Surgery.
  • 12.
  • 14. Market Segmentation Substantiality - refers to the size of segmented markets. Accessibility – could be attained through existing channels of distribution. Representability – withstand the competitors. Nature of demand – different quantities demanded by various segment. Measurability – changing behavior pattern of the consumers. Responses – obtain feedbacks.
  • 15.
  • 16. “S” Targeting Sell : Customer acquisition and retention targets. Serve : Customer satisfaction targets. Sizzle : Visit duration and site stickiness Speak : Trialogue; number of engaged customer. Save : quantified efficiency gains
  • 17. Positioning in Services  Training  Technology implementations  Assessment internal and external  Notification  Policy  Incidental Response  Code Review  Penetration Testing  Compliance Auditing  Architecture Evaluation  Forensics  Security Research
  • 19. Consumer Behaviour Peter F. Drucker says, ‘It is the consumer who determines what a business is … what the customer thinks he is buying, what he considers to ‘value’ is decisive - it determines what a business is, what it produces and whether it will prosper”.
  • 24.
  • 27. Career Opportunities and qualities • Encompasses large number of market research • Pricing and Product Development • Brand Awareness • Advertising • Team Player • Communication Skill set • Numerical Skill • Tactfulness • Job Security • Quick Experience • Creativity needed