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Fast Moving Consumer Goods: By: Nitin Yadav

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Fast Moving Consumer

Goods

By:
Nitin Yadav
FMCG Industry
 FMCG are products that have a quick shelf turnover, at
relatively low cost and don't require a lot of thought, time
and financial investment to purchase

 ‘Fast Moving’ is in opposition to consumer durables such


as kitchen appliances that are generally replaced less
than once a year

 Three of the largest and best known examples of Fast


Moving Consumer Goods companies are Nestlé,
Unilever and Procter & Gamble
FMCG Industry
 The Indian FMCG sector is contributor to the country's GDP.
It is the fourth largest sector in the economy and is
responsible for 5% of the total factory employment in India
important

 This has been due to liberalization, urbanization, increase in


the disposable incomes and altered lifestyle

 . The lower-middle income group accounts for over 60% of


the sector's sales. Rural markets account for 56% of the total
domestic FMCG demand
Some Fact About FMCG
 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.
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.
Domestic Players

1. Britannia India Ltd. (BIL)

2. Dabur India Ltd.

3. Indian Tobacco Corporation Ltd. (ITCL)

4. Marico

5. Nirma Ltd.
Foreign Players

1. Cadbury India Ltd. (CIL)

2. Coca-Cola
3. Colgate Palmolive India
4. H.J. Heinz Co.
5. Hindustan Lever Ltd. (HLL)
6. Nestle India Ltd.
7. Procter & Gamble
Market Segmentation
 Geographic

 Demographic

 Social and Economic

 Behavioral
Geographical
 Zone region- nearest zone will be targeted
first

 Villages and town- helps to analyze


marketing strategy

 Density

 Climate
Demographic
 Age- children or adult

 Gender-male or female
Socio-Economic
 Income group- high, medium or low

 Social and Economic- Education (illiterate,


literate , highly literate), social class
Behavioral
 Occasions ( Diwali, Deshehra, Eid)

 Brand loyalty (rural area people are more


brand loyal)
FMCG
companies
Brief about Company

 The Company started in the year 1928 .


 Started to distribute Colgate Dental Cream, Colgate-Palmolive
 It has a presence in around 3.5 million retail outlets across the
country, of which the Company services 9.40,000 outlets
directly
 The Company has grown to a 9600 million plus with an
outstanding record of enhancing value for its strong shareholder
base
 Colgate has been voted ‘The Most Trusted Brand’ in India
across all brands and categories for the third consecutive year
in the Brand Equity .
Market Share
 Market share to 50.4% in March 2005
 It grew by 9% during 2004-05
 Company volume in the core toothpaste category increased by
14%,

Products
  Oral Care:
◦ Colgate – Toothpaste, Tooth Powder, Whitening Products
◦ Pamolive - Shower Gel, Shower Cream, Bar Soap, Liquid Hand
Wash, Shave Preps, Skin Care
 
Household Care:
◦ Axion Surface Clean
Brief about Company

 The company started in 1892 in a nondescript house in Calcutta (now


Kolkata) with an initial investment of 295
 In the subsequent public issue of 1978, Indian shareholding crossed
60%, firmly establishing the Indianness of the firm
 Four years later in 1983, it crossed the 100 crores revenue mark
 In 2002, Britannia's New Business Division formed a joint venture
with Fonterra, the world's second largest Dairy Company, and
Britannia New Zealand Foods Pvt. Ltd. was born
Forbes Global rated Britannia 'One amongst the Top 200 Small
Companies of the World', and The Economic Times pegged Britannia
India's 2nd Most Trusted Brand.
Products
BISCUITS
 BRITANNIA GOOD DAY(cashew, butter,pista, badam, chocochips
and choconuts),
 NICE TIME
 MARIE GOLD
 TIGER
 BRITANNIA TREA( Elaichi, orange, mango), MILK BIKIS
 LITTLE HEARTS
 BRITANNIA 50-50
 SALTED CRACKERS- SNAX, IMEPASS

BREADS
 DELBIS(sliced bread)
Market Share

 In terms of value, Britannia leads the market with


37% market share
Brief About the Company

 ITC is one of India's foremost private sector companies with a


market capitalization of over US $ 13 billion and a turnover of
US $ 3.5 billion

 Rated among the World's Best Big Companies by Forbes


magazine and among India's Most Respected Companies by
BusinessWorld, ITC ranks third in pre-tax profit among India's
private sector corporations
                            
 ITC has a diversified presence in Cigarettes, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business,
Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Greeting Cards, Safety Matches and other
FMCG products.
Products
 CIGARETTES
◦ Wills
◦ India Kings
◦ Gold Flake
◦ Navy Cut
◦ Capstan
◦ Berkeley
◦ Bristol
◦ Flake.

 FOODS
◦ Ready to eat foods, staples, confectionery and snacks .
Market Share

 ITC has captured a market share of 8%.

 In confectionery, ITC has built up a 17% share of mint


candies and 24% of hard-boiled candies

 Ready-to-eat Sunfeast Pasta Treat has clocked 6% of the


branded noodles
CONCLUSION

 India's FMCG sector is the fourth largest sector in the


economy and creates employment for more than three
million people in downstream activities. Its principal
constituents are Household Care, Personal Care and
Food & Beverages. The total FMCG market is in excess of
Rs. 85,000 Carors. It is currently growing at double digit
growth rate and is expected to maintain a high growth
rate. FMCG Industry is characterized by a well
established distribution network, low penetration levels,
low operating cost, lower per capita consumption and
intense competition between the organized and
unorganized segments.
BIBILOGRAPHY

 www.wikipedia.co.in
 www.itcportal.com
THANK YOU…..

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