This document provides an overview of the fast moving consumer goods (FMCG) industry in India. Some key points: - FMCG was a rapidly growing sector from the 1980s-1990s but started losing momentum in the 1990s due to lack of innovation. Growth resumed in 2006 as consumers upgraded to better products. - FMCG products have quick turnover, low cost, and don't require much consumer thinking. Major companies include Nestle, Unilever, and Procter & Gamble. - India is an attractive FMCG market due to its large population and domestic market, low consumption levels, changing lifestyles, and cost advantages for production. - FMCG companies segment markets based

1. Fast
Moving Consumer Goods
( FMCG )
Marketing
VIKAS KUMAR

2. • 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.
• After 1990’s,
o FMCG started losing their sheen due to introduction of other
product types
o 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.

3. 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.

4. • 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
o Innovative
o Full of Rich Experience
o Worldwide reach
o Frequently travelling opportunities

5. FMCG Category & Products
• Household Care
e.g. laundry soaps, mosquito repellents, dish cleaners etc.
• Food & beverages
e.g. soft drinks, bakery products, tea, coffee, vegetables etc.
• Personal Care
e.g. oral care, hair care, skin care, cosmetics, deodorants, perfumes
etc.

6. Why INDIA?
1. Large Domestic Market:-
2. Large Consumer Goods Spender:-
3. Low Penetration & Low per Capita consumption :-
4. Changing Lifestyles:-
5. Retailing – New growth area
6. Demand & Supply Gap

7. India’s competitiveness
&
Comparison with World Market
1. Materials Availability:-
2. Leveraging The Cost Advantage:-
e.g. P & G outsourced Vicks Vaporub to
Australia, Japan etc. from Hyderabad

8. Domestic Players
1. Britannia India Ltd. (BIL)
2. Dabur India Ltd.
3. Indian Tobacco Corporation Ltd. (ITCL)
4. Marico
5. Nirma Ltd.

9. 1. Cadbury India Ltd. (CIL)
2. Cargill
3. Coca-Cola
4. Colgate Palmolive India
5. H.J. Heinz Co.
6. Hindustan Lever Ltd. (HLL)
7. Nestle India Ltd.
8. Procter & Gamble
Foreign Players

10. 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

11. Market Segmentation
• Geographic
• Demographic
• Social and Economic
• Behavioral

12. Geographical
• Zone region- nearest zone will be targeted first
• Villages and town- helps to analyze marketing
strategy
• Density
• Climate

13. Demographic
• Age- children or adult
• Gender-male or female

14. Socio-Economic
• Income group- high, medium or low
• Social and Economic- Education (illiterate,
literate , highly literate), social class

15. Behavioral
• Occasions ( Diwali, Deshehra, Eid)
• Brand loyalty (rural area people are more
brand loyal)

16. Marketing Strategy
• 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

17. • Small size packet strategy
• Pricing strategy
1. Mark up
2. Go- deterring (e.g. bingo chips)
3. Competitor based
4. Product bundling
• Same value, size increase
• Same value, size decrease (e.g. society tea)

18. Target market
• Differs from product to product
examples:
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

19. Advertisement
• Huge investment on advertisement
• Frequent broadcast
• 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

20. Why advertisement?
• 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

21. Message delivery
• Surf excel for washing machine
• Vim bar gel
• Gillette razor
• Bingo chips
• Happy dent chewing gum
• Bourn vita, Horlicks
• Pepsodent, Colgate
• Pepsi, sprite, coca-cola

22. 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)

23. Packaging
• Attractive packs
• Vibrant colors
• 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).

24. 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.
- mint newspaper 23rd Jan 2010