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CavinKare Project
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- 2. SECTOR INFORMATION MARKET SIZE •FY16 from $672b in FY20 to $1.1t • In 2016 – 2017 grow 9% – 9.5% in 2018 • Consumption increase $1469 to $3600 in 2020 GDP Growth Rate • Grow by 15% in last 3years • 2016 the category of the product increase from 18 to 22 • Rural growth 1.7 times then the Urban 53% 20% 15% 10% 2% Indian FMCG Markets segment Foods and baverages personal Care Tobacco House hold care Lighting
- 3. HISTORICAL GROWTH RATE •India is the largest market for FMCG sector next to China • FMCG industry is the fourth largest sector in India • In last five years the growth rate is 17.3 percent 29.4 18.92 14.8 12.1 12.3 10.4 9 2016 2015 2014 2013 2012 2011 2010 Sale Year FMCG MARKET (US$ billion) Sale Fast fact of Indian FMCG • 2.5% of Country’s GDP • Past 10 years has grown at 17% CAGR • Food and Personal care both make up two – third revenue this sector
- 4. Porter’s Five ForcesAnalysis Industry Competitors • Rivalry among players is very high in the FMCG industry • Price Competition • Advertisement and Promotional stuff Potential Entries • No barriers to entry • New entrants offer tough competition due to cost effectiveness • Not a capital intensive Substitute Product • Consumer needs are complex and never ending • Lack of satisfaction in a new product • Range of choices leads to higher consumer expectation Bargaining Power of Supplier • Few number of suppliers are available • No monopoly situation in between suppliers Bargaining of Buyers • Bargaining is very high • Switching cost is very low • No threat of buying one product over another
- 5. SWOT ANALYSIS OFTHE COMPANY STRNGTH • Strong brand portfolio • Excellent research & development • Strong percentage, hence strong brand equity WEAKNESS • Mimic Brands • Declining exports level • High Advertising Costs increase in AD spending OPPORTUNITY • Large domestic market • Opportunity in food sector • Changing Lifestyle & rising income levels THREATS • Increasing costs of raw material • Competition from unbranded product • Losing market share in most of the categories of its presence
- 6. FMCG SALE INFY 16 SALE IN FY 17 GROWTH RATE HUL 5254.6 5410.73 2.97% GCPL 735.04 798.41 8.62% ITC FMCG 5572.15 6115.48 9.75% Dabur 1288.7 1255.1 -2.61% Cavin kare 951.02 946 -0.53% COMPARATIVE ANALYSIS 5254.6 735.04 5572.15 1288.7 951.02 5410.73 798.41 6115.48 1255.1 946 2.97% 8.62% 9.75% -2.61% -0.53% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 0 1000 2000 3000 4000 5000 6000 7000 Hindustan Unilever GCPL ITC FMCG Dabur Cavinkare Chart Title Total No sale in FY 16 Total No sale in FY 17 Growth Rate
- 7. PRODUCT/SURVICE PROFILE Launch Nov13, 2013 Price Rs 200, 40 Packet Two layer Package Weight Features Brilliant Color Visibly healthier hair Hair is hydrated, silky and 3x shinier No Ammonia
- 8. SWOT ANALYSIS OFTHE PRODUCT STRENGTH • Improved Hair Coloring outcomes and confidence • Minimize hair damage • Professional look: all done at home WEAKNESS • Market response currently unknown • Product looks complicated to handle • Too many removable part in the product OPPORTUNITY • Instant Hair streak market untapped • Collaboration with famous hair color brands • Enhance product to make more visually attractive THREATS • Enhance product to make more visually attractive • Dependency on existing color manufacture
- 9. Product • Product Varity– Indica Hair Color Black, 10 Minutes Hair Color, Easy Hair Color • Brand image – Brand logo, Youngster Model • Use – For looking different • Customer Service – Color warranty, Customer Care Number Price • Indica Easy Hair Color Dark Rs 200 • Indica 10 Minutes Natural Black Rs 18 • Indica Easy Natural Hair Color Rs 40 • Indica 30 Minutes Herbal Hair Color Rs 133 Place • More then Twenty countries • In Every Grocery shop, Mall, Stationary Promotion • Good media relation and carefully targeted advertising • Specific target customer ANALYSIS OF MARKETING MIX
- 10. STP OF THEPRODUCT Segmentation • Geographic – Metro city, Urban, Semi Urban • Demographic – 30–60 age group • Psychographic – Religion is not a matter, Fashion conscious • Behavioral - At a time in a month Targeted • Income – Above 20000 p.m. • Place – Urban, Semi Urban • Lifestyle – Fashion Conscious Positioning • Its for basically those people who can’t effort more costly product Now it is in decline stage: • For improving the substitute product more • More brand value then this product
- 11. 94.00% 94.50% 95.00%95.50% 96.00% 96.50% 97.00% FY 16 GROSS PROFIT MARGIN AXISTITLE FY 16 FY 17 96.40% 94.89% 95.90% 96.00% 96.10% 96.20% 96.30% 96.40% 96.50% FY 17 NET PROFIT MARGIN AXISTITLE FY 17 FY 16 96.40% 96.10% 0 200 400 600 800 1000 1200 1400 FY 17 FY 16 WORKING CAPITAL AXISTITLE FY 17 FY 16 1202.76 797.39 FINANCIALANALYSIS
- 12. MD GM Production Manager Shift Interchange Supevisor worker EngineeringManager Shift Worker Printing Manager Supervisor Worker Deputy Manager HR Manager Senior Executive Executive Admin It Dept Finance Manager Senior Executive ORGANIZATIONAL STRUCTURE
- 13. SOURCES OF REQRUITEMENT InternalSources External Sources • Recall • Pipeline • Promotion • transfer • Monster.com • Shine.com • Job Consultancy SELECTION PROCESS OF THE COMPANY • Written Test • Group Discussion • Aptitude Test • Personal Interview INDUCTION PROCESS • Overview of Cavinkare • Ensuring personal effectiveness • Overview of each CavinKare model • Understand the basic in the consumer goods industry
- 14. TRAINING AND LEARNINGAT CAVINKARE • Learning at Workplace • Learning on the shop Floor • Competency Building • Continuing Education EMPLOYEE BENEFITS PROVIDED • Vacation • Sick Days • Retirement • Health Spending Accounts PERFORMANCE APPRISAL MODEL • Make your people feel valued • Set new goals • Resolve grievances • Resolve grievances • Refocusing your team
- 15. EMPLOYEE DEVELOPMENT • LocalTraining • Regional Training • Communication Management • Marketing Leadership • R&D Leadership CARRER PLANNING AND CARRER PROGRESSION • Life as a fresher • Life as an Experienced Professional ORGANIZATIONAL CULTURE • Good working culture • Improve on the compensation for employee • Good brand Value • High focus on innovation
- 16. BIBLIOGRAPHY/REFERANCE • IBEF.org • www.moneycontrol.com •www.CavinKare.com • www.glassdoor.com • LinkedIn.com • my.cavinkare.com