FAST MOVING
CONSUMER GOODS
(FMCG)
Presented by:-
AKSHAY
INTRODUCTION
• The Indian FMCG industry witnessed significant
changes through 1990s. By the time of 20th century.
• Indian FMCG industries changed significantly
liberalization and growth of economy.
• The realization of the customer’s interests and the
need to meet changing life style required the FMCG
producing companies to formulate customer centric
strategies.
• The FMCG industry plays a significant role in
shaping a country’s economy and development.
NATURE OF INDUSTRY
• FMCG industry is characterized by a well
established distribution network, low operating
cost, lower pre capital consumption and intence
competition between organized and unorganized
seg ments.
• India’s FMCG sector is 4th largest sector in the
economy and contribute to around 3million
employment opportunites.
• FMCG market is in excess of RS. 85,000 Cr
• It includes houseold care, personal care, food &
beverages.
PLAYERS OF FMCG INDUSTRY
• Top 3 FMCG industry:
1 .HUL (Hindustan Unilever Ltd.)
2. ITC (indian Tabacco Companey)
3. Nestle india
• Bottom 3 FMCG industry:
1. Britannia Industry Ltd
2. Procter & Gamble Hygiene & Health care
3. marico Industres Ltd
HINDUSTAN UNILEVER LTD:
• It is India's largest consumer goods company based
in Mumbai Maharashtra.
• It is owned by the British – Dutch Company Unilever
which controls 52% majority stake in HUL.
• HUL was formed in 1933.
• Its products include foods, beverages, cleaning and
personal care products.
• revenue 22,116 Cr
• Net income 2,691 Cr
• Employees more then 16,500
ITC (Indian Tobacco Company)
• It was formed in 1910 by Henry Overton Wills and
Yogesh Chander (Chairman).
• Headquarters in kolkata, West Bengal, India
• Its product include
-Cigarettes
-Foods
-Apparel
-Personal care
-stationery
-safety maches and Agarbattis .
• Revenue 60,493 Cr
• Stock price: 282.00 Rupee
NESTLE INDIA
• It was formed in 1866 by Henri Nestle.
• Headquarter in Switzerland
• It is the largest company in the world measured by
the revenues.
• Nestlé's products include baby foods, breakfast
cereals, coffee, confectionery, dairy products, ice
cream, pet foods and snacks.
• Nestle’s in India 1st production facility was setup in
1961 at MOGA (Punjab)
• Revenue 89.791 billion, Stock price 11,267 Rupee
BRITANNIA INDUSTRIES LTD.
• The company was established in 1892.
• It is an food products corporation based in Kolkata,
India.
• It is famous for its Britannia and Tiger brand of
biscuit, which are popular throughout India.
• Britannia has an estimated 38% market share in
biscuit segment.
• Products: bakery products, including biscuits, bread,
cakes and Rusk, and dairy products, including milk,
cheese, ghee and Dhai.
• Revenue 4,670 Cr , share price 3,173.45 INR
PROCTER &GAMBLE HYGINE &HEALTH
CARE
• P&G is one of the largest and amongst the fastest
growing consumer goods companies in india.
• Established in 1964.
• These includes Vicks, Ariel, Tide, Olay, Gillette,
Pampers, Oral-B, Head &shoulders, wella and
Duracell.
• Revenue US$13.06 billion.
• Number of employees 95,000
• Stock price 91.18 INR
MARICO INDUSTRIES LTD.
• Marico is an Indian consumer goods company
providing consumer products and service in the
areas of Health and Beauty based in mumbai.
• Founded in 1987 and Headquarters is at mumbai,
India.
• The organisation holds a number of brands
including set wet , Perashute, Perashute Advansed,
Nihar Naturals, Body lotion, Soffola, Hare & Care,
Livon, Revive and Medicare.
• Revenue 4,008.3 Cr , Stock price 375.80 INR
MARKET SHARES OF FMCG INDUSTRY
COMPANEY MARKET
SHARES
Hindustan
Unilever ltd.
36.4%
Indian Tobacco
Company
30%
Nestle 8.2%
Britannia 6%
Others 19.6%
THE FMCG MARKET HAS THREE
MAIN SEGMENTS
1. Food & beverages (18%)
2. Health care (32%)
3. Household and Personal care (50%)
MARKETING STRATEGY PROCESS
• Understand customer
• Analyze market
• Analyze competition
• Research distribution
• Define marketing mix
• Financial analysis
• Review and revise
GEOGRAPHICAL SPREAD
• FMCG is the fourth largest sector in the Indian
economy.
• Household and Personal care is the leading segment,
accounting for 50% of the overall market. Health care
(32%) and food & Beverages (18%) comes next in
terms of market share.
• Growing awareness, easier access, and changing
lifestyle have been the key growth drivers for the
sector.
• Retail market in India is estimated to reach USD 1
trillion by 2020 from USD 600 billion in 2015, with
modern trade expected to grow at 20% per annum
this is likely to boost revenue from FMCG companies.
STRONG GROWTH IN THE INDIAN
FMCG SECTOR
• The FMCG sector in India generated
revenues worth USD 47.3 billion in 2015
• Over 2012- 16, the sector is expected to post
CAGR of 11.9% in revenues
• In 2017, revenue for FMCG sector is
expected to reach USD 50 billion
BRANDING STRATEGIES
• Some of the major strategies adopted by FMCG
companies for making their brands outstanding
competitions are as follows
1. Multi brand strategy
2. Product flanking
3. Brand extension
4. Building product lines
5. New product development
6. Product life cycle strategy
7. Thinking advantages of wide distribution
8. Sales promotion
POSITIONING & DIFFERENTIATION
STRATAGIS
• There are seven approaches to P&D strategies:
1. Using product characteristics
2. Pricing as a position strategy
3. Positioning strategy based on use or application
4. Positioning strategy based on product process
5. Positioning strategy based on product class
6. Positioning strategy based on cultural symbols
7. Positioning strategy based on competitors
PRICING POLICIES
• price is the exchange value of the product. It is the
amount of money needed to acquire a product/
service.
• Pricing is the most important strategy in rural
marketing. Pricing must be compatible with the
marketing strategy, including target market selection
and positioning. This should have a balance between
quality on offer and price.
1. Customer segment pricing
2. Product form pricing
3. Economy pricing
4. Value pricing
5. Differential pricing
CONTRAINTS
• Identify the system’s constraint
- As per Dr. Eliyahu M. Goldratt, ”Until the consumer
has bought, nobody has really sold…
- The system constraints found is in market demand
or the no of consumers willing to buy
• Decide how to Exploit the system’s constraint
- “exploiting the system constraint” means “having
the Risk SKU, at the right place ( in the downstream
supply chain ) and night time ( when consumer is
willing to buy )
PROFESSIONAL TRADE BODIES OF THE
INDUSTRY
• The Indian FMCG sector is the fourth largest
sector in the economy with a total market size of
US $18 billion.
• FMCG industry is expected to maintain a robust
growth rate as the population is increasing.
• The organized sector is account to 14-18% of the
shares.
• Overall, the FMCG industry is expected to increase
at a compound annual growth rate at 14.7% , with
a rural FMCG market expected to increase at
17.7%.
CONCLUSION
• It is the risk area but the promise of a large
costumer fallowing as the prize for those who
succeed.
• The key to reducing the risk is to understand the
market the consumer need and behavior .
• The consumer groups different by the
occupations, income, social and cultural grouping.
• More and more people these days have started
involving themselves in the field as it creates
tremendous job opportunities for them.
FMCG past moving consumer good's

FMCG past moving consumer good's

  • 1.
  • 2.
    INTRODUCTION • The IndianFMCG industry witnessed significant changes through 1990s. By the time of 20th century. • Indian FMCG industries changed significantly liberalization and growth of economy. • The realization of the customer’s interests and the need to meet changing life style required the FMCG producing companies to formulate customer centric strategies. • The FMCG industry plays a significant role in shaping a country’s economy and development.
  • 3.
    NATURE OF INDUSTRY •FMCG industry is characterized by a well established distribution network, low operating cost, lower pre capital consumption and intence competition between organized and unorganized seg ments. • India’s FMCG sector is 4th largest sector in the economy and contribute to around 3million employment opportunites. • FMCG market is in excess of RS. 85,000 Cr • It includes houseold care, personal care, food & beverages.
  • 4.
    PLAYERS OF FMCGINDUSTRY • Top 3 FMCG industry: 1 .HUL (Hindustan Unilever Ltd.) 2. ITC (indian Tabacco Companey) 3. Nestle india • Bottom 3 FMCG industry: 1. Britannia Industry Ltd 2. Procter & Gamble Hygiene & Health care 3. marico Industres Ltd
  • 5.
    HINDUSTAN UNILEVER LTD: •It is India's largest consumer goods company based in Mumbai Maharashtra. • It is owned by the British – Dutch Company Unilever which controls 52% majority stake in HUL. • HUL was formed in 1933. • Its products include foods, beverages, cleaning and personal care products. • revenue 22,116 Cr • Net income 2,691 Cr • Employees more then 16,500
  • 6.
    ITC (Indian TobaccoCompany) • It was formed in 1910 by Henry Overton Wills and Yogesh Chander (Chairman). • Headquarters in kolkata, West Bengal, India • Its product include -Cigarettes -Foods -Apparel -Personal care -stationery -safety maches and Agarbattis . • Revenue 60,493 Cr • Stock price: 282.00 Rupee
  • 7.
    NESTLE INDIA • Itwas formed in 1866 by Henri Nestle. • Headquarter in Switzerland • It is the largest company in the world measured by the revenues. • Nestlé's products include baby foods, breakfast cereals, coffee, confectionery, dairy products, ice cream, pet foods and snacks. • Nestle’s in India 1st production facility was setup in 1961 at MOGA (Punjab) • Revenue 89.791 billion, Stock price 11,267 Rupee
  • 8.
    BRITANNIA INDUSTRIES LTD. •The company was established in 1892. • It is an food products corporation based in Kolkata, India. • It is famous for its Britannia and Tiger brand of biscuit, which are popular throughout India. • Britannia has an estimated 38% market share in biscuit segment. • Products: bakery products, including biscuits, bread, cakes and Rusk, and dairy products, including milk, cheese, ghee and Dhai. • Revenue 4,670 Cr , share price 3,173.45 INR
  • 9.
    PROCTER &GAMBLE HYGINE&HEALTH CARE • P&G is one of the largest and amongst the fastest growing consumer goods companies in india. • Established in 1964. • These includes Vicks, Ariel, Tide, Olay, Gillette, Pampers, Oral-B, Head &shoulders, wella and Duracell. • Revenue US$13.06 billion. • Number of employees 95,000 • Stock price 91.18 INR
  • 10.
    MARICO INDUSTRIES LTD. •Marico is an Indian consumer goods company providing consumer products and service in the areas of Health and Beauty based in mumbai. • Founded in 1987 and Headquarters is at mumbai, India. • The organisation holds a number of brands including set wet , Perashute, Perashute Advansed, Nihar Naturals, Body lotion, Soffola, Hare & Care, Livon, Revive and Medicare. • Revenue 4,008.3 Cr , Stock price 375.80 INR
  • 11.
    MARKET SHARES OFFMCG INDUSTRY COMPANEY MARKET SHARES Hindustan Unilever ltd. 36.4% Indian Tobacco Company 30% Nestle 8.2% Britannia 6% Others 19.6%
  • 12.
    THE FMCG MARKETHAS THREE MAIN SEGMENTS 1. Food & beverages (18%) 2. Health care (32%) 3. Household and Personal care (50%)
  • 13.
    MARKETING STRATEGY PROCESS •Understand customer • Analyze market • Analyze competition • Research distribution • Define marketing mix • Financial analysis • Review and revise
  • 14.
    GEOGRAPHICAL SPREAD • FMCGis the fourth largest sector in the Indian economy. • Household and Personal care is the leading segment, accounting for 50% of the overall market. Health care (32%) and food & Beverages (18%) comes next in terms of market share. • Growing awareness, easier access, and changing lifestyle have been the key growth drivers for the sector. • Retail market in India is estimated to reach USD 1 trillion by 2020 from USD 600 billion in 2015, with modern trade expected to grow at 20% per annum this is likely to boost revenue from FMCG companies.
  • 15.
    STRONG GROWTH INTHE INDIAN FMCG SECTOR • The FMCG sector in India generated revenues worth USD 47.3 billion in 2015 • Over 2012- 16, the sector is expected to post CAGR of 11.9% in revenues • In 2017, revenue for FMCG sector is expected to reach USD 50 billion
  • 16.
    BRANDING STRATEGIES • Someof the major strategies adopted by FMCG companies for making their brands outstanding competitions are as follows 1. Multi brand strategy 2. Product flanking 3. Brand extension 4. Building product lines 5. New product development 6. Product life cycle strategy 7. Thinking advantages of wide distribution 8. Sales promotion
  • 17.
    POSITIONING & DIFFERENTIATION STRATAGIS •There are seven approaches to P&D strategies: 1. Using product characteristics 2. Pricing as a position strategy 3. Positioning strategy based on use or application 4. Positioning strategy based on product process 5. Positioning strategy based on product class 6. Positioning strategy based on cultural symbols 7. Positioning strategy based on competitors
  • 18.
    PRICING POLICIES • priceis the exchange value of the product. It is the amount of money needed to acquire a product/ service. • Pricing is the most important strategy in rural marketing. Pricing must be compatible with the marketing strategy, including target market selection and positioning. This should have a balance between quality on offer and price. 1. Customer segment pricing 2. Product form pricing 3. Economy pricing 4. Value pricing 5. Differential pricing
  • 19.
    CONTRAINTS • Identify thesystem’s constraint - As per Dr. Eliyahu M. Goldratt, ”Until the consumer has bought, nobody has really sold… - The system constraints found is in market demand or the no of consumers willing to buy • Decide how to Exploit the system’s constraint - “exploiting the system constraint” means “having the Risk SKU, at the right place ( in the downstream supply chain ) and night time ( when consumer is willing to buy )
  • 20.
    PROFESSIONAL TRADE BODIESOF THE INDUSTRY • The Indian FMCG sector is the fourth largest sector in the economy with a total market size of US $18 billion. • FMCG industry is expected to maintain a robust growth rate as the population is increasing. • The organized sector is account to 14-18% of the shares. • Overall, the FMCG industry is expected to increase at a compound annual growth rate at 14.7% , with a rural FMCG market expected to increase at 17.7%.
  • 21.
    CONCLUSION • It isthe risk area but the promise of a large costumer fallowing as the prize for those who succeed. • The key to reducing the risk is to understand the market the consumer need and behavior . • The consumer groups different by the occupations, income, social and cultural grouping. • More and more people these days have started involving themselves in the field as it creates tremendous job opportunities for them.