Fmcg ppt
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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
Fmcg ppt
- 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