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    What Is The FMCG Industry

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    Braham Gairola
    The FMCG industry, also known as the consumer packaged goods industry, includes fast moving consumer goods that are essential household items purchased frequently, such as food, cleaning products, and personal care items. The top FMCG companies produce high-demand items and develop strong brand loyalty. Some leading FMCG companies include Colgate-Palmolive, Coca-Cola, General Mills, H.J. Heinz, Henkel, Johnson & Johnson, Kimberly-Clark, Kraft, and Nestlé. Market segmentation involves dividing the market into identifiable groups with unique needs in order to better satisfy customers. Consumer markets can be segmented geographically, demographically, psychographically, and behaviorally based on variables like age, income

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    What Is The FMCG Industry

    Uploaded by

    Braham Gairola
    957 views4 pages
    The FMCG industry, also known as the consumer packaged goods industry, includes fast moving consumer goods that are essential household items purchased frequently, such as food, cleaning products, and personal care items. The top FMCG companies produce high-demand items and develop strong brand loyalty. Some leading FMCG companies include Colgate-Palmolive, Coca-Cola, General Mills, H.J. Heinz, Henkel, Johnson & Johnson, Kimberly-Clark, Kraft, and Nestlé. Market segmentation involves dividing the market into identifiable groups with unique needs in order to better satisfy customers. Consumer markets can be segmented geographically, demographically, psychographically, and behaviorally based on variables like age, income

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    All about FMCG industries.

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    What is the FMCG Industry

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    The FMCG industry, also known as the consumer packaged goods industry, includes fast moving consumer goods that are essential household items purchased frequently, such as food, cleaning products, and personal care items. The top FMCG companies produce high-demand items and develop strong brand loyalty. Some leading FMCG companies include Colgate-Palmolive, Coca-Cola, General Mills, H.J. Heinz, Henkel, Johnson & Johnson, Kimberly-Clark, Kraft, and Nestlé. Market segmentation involves dividing the market into identifiable groups with unique needs in order to better satisfy customers. Consumer markets can be segmented geographically, demographically, psychographically, and behaviorally based on variables like age, income

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    957 views4 pages

    What Is The FMCG Industry

    Uploaded by

    Braham Gairola
    The FMCG industry, also known as the consumer packaged goods industry, includes fast moving consumer goods that are essential household items purchased frequently, such as food, cleaning products, and personal care items. The top FMCG companies produce high-demand items and develop strong brand loyalty. Some leading FMCG companies include Colgate-Palmolive, Coca-Cola, General Mills, H.J. Heinz, Henkel, Johnson & Johnson, Kimberly-Clark, Kraft, and Nestlé. Market segmentation involves dividing the market into identifiable groups with unique needs in order to better satisfy customers. Consumer markets can be segmented geographically, demographically, psychographically, and behaviorally based on variables like age, income

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    The key takeaways are that FMCG refers to fast moving consumer goods like household items, personal care products, and food items. Top FMCG companies produce high demand items and build brand loyalty. Market segmentation identifies different customer groups to better satisfy their needs.

    Some examples provided are Colgate-Palmolive, Coca-Cola, General Mills, H. J. Heinz, Henkel, Johnson & Johnson, Kimberly-Clark, Kraft, L'Oréal, and Nestlé. Their famous brands are listed.

    Market segments should be identifiable, accessible, substantial, have unique needs, and be durable.

    What is the FMCG industry?

    Also known as the Consumer Packaged Goods or CPG Industry, this multi-million dollar
    sector is made up of a huge range of famous brand names the kind that we use every single day. These fast moving
    consumer goods are the essential items we purchase when we go shopping and use in our everyday lives. They're the
    household items you pick up when you're buying groceries or visit your local chemist or pharmacy. FMCG goods are
    referred to as 'fast moving', quite simply, because they're the quickest items to leave the supermarket shelves. They
    also tend to be the high volume, low cost items.
    Cleaning and laundry products, over the counter medicines, personal care items and food stuffs make up a large bulk
    of the goods in the FMCG arena, but it doesn't end there. Paper products, pharmaceuticals, consumer electronics,
    plastic goods, printing and stationery, alcoholic drinks, tobacco and cigarettes can all be considered fast moving
    consumer goods too.
    The top FMCG companies are characterised by their ability to produce the items that are in highest demand by
    consumers and, at the same time, develop loyalty and trust towards their brands.
    Some of the leading FMCG companies in the world include:

    Colgate-Palmolive
    Famous brands: Colgate toothpaste; Palmolive soap and cleaning products; AJAX cleaning products.

    Coca-Cola
    Famous brands: Coca-Cola; Diet Coke; Fanta; Sprite

    General Mills
    Famous brands: Pillsbury; Green Giant; Yoplait dairy products

    H. J. Heinz
    Famous brands: Heinz Tomato Ketchup; Lea & Perrins; HP Sauce

    Henkel
    Famous brands: Pritt; Sellotape; Schwarzkopf hair products

    Johnson & Johnson


    Famous brands: Johnson's Baby; Neutrogena; Acuvue; Listerine oral care

    Kimberly-Clark
    Famous brands: Kleenex paper products; Kotex feminine care; Huggies baby products

    Kraft
    Famous brands: Kraft, Milka; Philadelphia; Toblerone

    L'Oral
    Famous brands: L'Oreal Paris, Garnier; Maybelline New York; Biotherm; Kiehl's

    Nestl
    Famous brands: Nestel Pure Life, Nescafe; Nesquik; Kit Kat; Purina

    Market segmentation is the identification of portions of the market that are different from one another.
    Segmentation allows the firm to better satisfy the needs of its potential customers.

    The Need for Market Segmentation


    The marketing concept calls for understanding customers and satisfying their needs better than the
    competition. But different customers have different needs, and it rarely is possible to satisfy all customers
    by treating them alike.

    Mass marketing refers to treatment of the market as a homogenous group and offering the same
    marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass
    production, mass distribution, and mass communication. The drawback of mass marketing is that
    customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all
    customers. If firms ignored the differing customer needs, another firm likely would enter the market with
    a product that serves a specific group, and the incumbant firms would lose those customers.
    Target marketing on the other hand recognizes the diversity of customers and does not try to please all of
    them with the same offering. The first step in target marketing is to identify different market segments
    and their needs.

    Requirements of Market Segments


    In addition to having different needs, for segments to be practical they should be evaluated against the
    following criteria:

    Identifiable: the differentiating attributes of the segments must be measurable so that they can be
    identified.

    Accessible: the segments must be reachable through communication and distribution channels.

    Substantial: the segments should be sufficiently large to justify the resources required to target
    them.

    Unique needs: to justify separate offerings, the segments must respond differently to the different
    marketing mixes.

    Durable: the segments should be relatively stable to minimize the cost of frequent changes.

    A good market segmentation will result in segment members that are internally homogenous and
    externally heterogeneous; that is, as similar as possible within the segment, and as different as possible
    between segments.

    Bases for Segmentation in Consumer Markets


    Consumer markets can be segmented on the following customer characteristics.

    Geographic

    Demographic

    Psychographic

    Behavioralistic

    Geographic Segmentation
    The following are some examples of geographic variables often used in segmentation.

    Region: by continent, country, state, or even neighborhood

    Size of metropolitan area: segmented according to size of population

    Population density: often classified as urban, suburban, or rural

    Climate: according to weather patterns common to certain geographic regions

    Demographic Segmentation
    Some demographic segmentation variables include:

    Age

    Gender

    Family size

    Family lifecycle

    Generation: baby-boomers, Generation X, etc.

    Income

    Occupation

    Education

    Ethnicity

    Nationality

    Religion

    Social class

    Many of these variables have standard categories for their values. For example, family lifecycle often is
    expressed as bachelor, married with no children (DINKS: Double Income, No Kids), full-nest, empty-nest,
    or solitary survivor. Some of these categories have several stages, for example, full-nest I, II, or III
    depending on the age of the children.
    Psychographic Segmentation
    Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and
    opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables include:

    Activities

    Interests

    Opinions

    Attitudes

    Values

    Behavioralistic Segmentation
    Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic
    variables include:

    Benefits sought

    Usage rate

    Brand loyalty

    User status: potential, first-time, regular, etc.

    Readiness to buy

    Occasions: holidays and events that stimulate purchases

    Behavioral segmentation has the advantage of using variables that are closely related to the product itself.
    It is a fairly direct starting point for market segmentation.

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