FMCG INDUSTRY.pptx

8/22/2019 FMCG INDUSTRY.pptx

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FMCG INDUSTRY

From:-

PRATEEK VERMA

13107


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FMCG INTRODUCTION

Products which have a quick turnover, and relatively

low cost are known as Fast Moving Consumer Goods

(FMCG).

Examples:

toiletries, soap, cosmetics, tooth cleaning products,

shaving products and detergents, as well as other

non-durables such as glassware, bulbs, batteries,

packaged food paper products, and plastic goods.


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FMCG EVOLUTION

1950s-80s Low Investment in the sector

Low purchasing power

Govt. emphasis on small scale sector

HLL and other companys urbane focus

Post liberalization

Entry of MNCs

Focus shifted to getting to rural consumer first

Others, like Nestle, remained with the urbanpopulation

Latest fad to hit the market is the sachet bug.


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FMCG INDIA

Indias FMCG sector is the fourth largest sector in

the economy

It creates employment for more than three millionpeople

Its principal constituents are Household Care,

Personal Care and Food & Beverages


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INDUSTRY SEGMENTS

Personal Care.

Household Care.

Branded and Packaged Food and Beverages.

Spirits and Tobacco.


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MARKET PLAYERS IN INDIAN FMCG SECTOR

Domestic Players:-

ITC Lim ited

Marico

Nirma Limited

Jyoth y Laborator ies Ltd.

Foreign Players:-

Cadbury India Lim ited

Cargi l l

Coca Cola

Colgate Palmolive Ind iaHindus tan Uni lever Lim ited

Nestle Ind ia Lim ited

P & G

PepsiCo


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TRENDS IN FMCG SECTOR

The FMCG sector has been registering double-digit

growth in sales since the last couple of years.

The FMCG sector is witnessing rapid growth in ruralareas as compared to the growth in urban areas.


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INDIAN FMCG MARKET SIZE(IN US $ BILLION)

(Source: IBEF FMCG Analysis)


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COMPETITION.

Significant Presence of Unorganized Sector

Basic technology for most products is fairly simple and

easily available.

The small-scale sector in India enjoys exemption/ lowerrates of excise duty, sales tax etc. This makes them more

price competitive.

A highly scattered market and poor transport infrastructure

limits the ability of MNCs and national players to reach ruralareas and small towns.

Low brand awareness enables local players to market their

fake look-alike brands.


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SWOT ANALYSIS: WHOLE INDUSTRY!

Strengths

Well established distribution networks extending to

the rural areas

Backed by strong brands Low cost operations

Weakness

Low export levels

Small scale sector reservations limit ability to investin technology and achieve economies of scale


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Opportunities

Large domestic market

Export potential

Increasing income levels will result in faster

revenue growth

Threats Imports

Tax & Regulatory Structures

Slowdown in Rural Demands


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TOP 3 FMCG COMPANIES IN

INDIA


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Earlier known as Hindustan Lever Limited.

Was formed in 1933 as Lever Brothers India Limited.

Headquartered in Mumbai.

HUL is the market leader in Indian products such as tea,

soaps, detergents etc.

The companys statement of corporate purpose is to meet

the everyday needs of people, everywhere.


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The company was renamed in late June 2007 to

Hindustan Unilever Limited, to provide the optimumbalance between maintaining heritage of the companyand future benefits.

HUL holds 100 factories across India for manufacturing

its diverse product range.


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PROMINENT BRANDS.Some of its brands include:

Kwality Wall's ice cream.

Lifeboy.

Lux.

Breeze.

Liril.

Hamam.

Pureit Water Purifier.

Lipton tea.

Brooke Bond tea.

Bru Coffee.

Pepsodent and toothpaste and brushes and many more..


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P&G The Company has 21 product categories out of which only 8

product have presence in India.

In India Proctor & Gamble has two subsidiaries:P&G Hygiene and Health Care Ltd. and P&G Home

Products Ltd.

P&G Hygiene and Health Care Limited has a turnover ofmore than Rs. 700 crores


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Procter & Gamble products

Three categories:

Beauty

Household Care

Health & Well-Being

More than 250 brands, including 23 brands which have

more than a billion dollars in net annual sales


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ITC

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

a market capitalization of over US $ 30 bln and a turnover of

US $ 6 bln.

ITC is rated among the World's Best Big Companies.

ITC ranks among India's 10 Most Valuable

(company)Brands.

While ITC is an outstanding market leader in cigarettes,

Hotels, Paperboards, Packaging and Agri-Export.


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PRODUCT MIXOF ITC LTD

FMCG

Cigarettes

Foods

Lifestyle

Retailing

Education &

Stationary

Safety Matches

Agarbaties

Hotels Paper boards &

Packaging

Paper Boards

Packing

IT Agri-

Business

Leaf

Tobacco

AgriCommodit

ies

e-

Choupal


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FMCG PRODUCTS1. CIGARETTES

2. FOODS

3. LIFESTYLE RETAILING

4. PERSONAL CASE

5. EDUCATION AND

STATIONARY

6. SAFETY MATCHES

7. AGARBATTIS


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FMCG - CIGARETTES

ITC Ci tt B i


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1.Market leader in India.

2.Highly popular portfolio of brands includes Insignia,

India Kings, Classic, Gold Flake, Silk Cut, NavyCut, Scissors, Capstan, Berkeley, Bristol and

Flake.

3.Extensive FMCG distribution network

1.Direct servicing of 85000 markets &

2.Nearly two million retail outlets

ITCs Cigarettes Business


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Upper Class Brands: Insignia, India Kings and

Classic, Berkeley

Middle Class Brands: Gold Flake, Silk cut and

Navy cut, & Scissors

Lower Class Brands: Bristol, flake, & Capstan.


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FOODS

The Foods business is today represented in 4 categoriesin the market. These are:

1. Ready To Eat Foods

2. Staples3. Confectionery

4. Snack Foods
http://images.google.co.in/imgres?imgurl=http://archives.chennaionline.com/food/potsnpans/images/Paneer-darbari.jpg&imgrefurl=http://archives.chennaionline.com/food/potsnpans/gki.asp&usg=__JInRXU8b6vovsrHFx-Dw-2s3kbc=&h=162&w=225&sz=16&hl=en&start=9&tbnid=5v1Xl7WQ49vmIM:&tbnh=78&tbnw=108&prev=/images?q=itc+Kitchens+of+India&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://ecx.images-amazon.com/images/I/51ZoKoZlVDL._SL500_AA280_PIbundle-6,TopRight,0,0_AA280_SH20_.jpg&imgrefurl=http://www.amazon.com/Kitchens-India-Spinach-Cottage-10-Ounce/dp/B000LKXCD6&usg=__JI96LZXVf3HZ0RjIJzoFq29jvZE=&h=280&w=280&sz=25&hl=en&start=23&tbnid=wJ7WGxlcTy5B9M:&tbnh=114&tbnw=114&prev=/images?q=itc+Ready+To+Eat+Foods&gbv=2&ndsp=20&hl=en&sa=N&start=20


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1. Kitchens of Indiapickles, masalas, curry

pastes, ready made foods

2. Aashirvaad atta, salt,

paste, chilli powders
http://images.google.co.in/imgres?imgurl=http://www.aashirwad.co.nz/images/atta.jpg&imgrefurl=http://adilsspices.blogspot.com/&usg=___EkS_PiNrkAwSUduPi-ZyMLrNKA=&h=153&w=121&sz=19&hl=en&start=4&tbnid=vbh7pDVJ2FsqDM:&tbnh=96&tbnw=76&prev=/images?q=ashirwad+atta&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.thehindubusinessline.com/catalyst/2007/05/10/images/2007051000180405.jpg&imgrefurl=http://www.thehindubusinessline.com/catalyst/2007/05/10/stories/2007051000180405.htm&usg=__SDxoWhjCGaPvuB8MLgRnpq9dwfo=&h=275&w=351&sz=21&hl=en&start=8&tbnid=1eRdOK9JleKzdM:&tbnh=94&tbnw=120&prev=/images?q=itc+Kitchens+of+India&gbv=2&hl=en&sa=G


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3.Sunfeast biscuits, cakes,

pasta

4.mint-o toffees-

5.Candyman eclairs, fruity,

different flavours

6.Bingo! chips and snacks
http://images.google.co.in/imgres?imgurl=http://www.indiaretailbiz.com/images/logographics/bingo.jpg&imgrefurl=http://www.indiaretailbiz.com/blog/2007/06/08/bingo-enters-big-bazaars-and-food-bazaars-as-frito-lay-suffers/&usg=__ABHFS7m1p2ejFiTP5aWpYYn6kuc=&h=263&w=370&sz=29&hl=en&start=7&tbnid=lo8T5dr1BqNYPM:&tbnh=87&tbnw=122&prev=/images?q=itc+Snack+Foods&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://www.delicious-chocolate.cn/chocolate/pics/2009/10/cadbury-chocolate-eclairs.JPG&imgrefurl=http://www.delicious-chocolate.cn/2009/10/cadbury-choclate-eclairs-95g/&usg=__xDlTomig8dnqUf9V88zkeCYafUo=&h=450&w=382&sz=15&hl=en&start=2&tbnid=bjhRTjsHI9AmoM:&tbnh=127&tbnw=108&prev=/images?q=eclairs&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.bluebird-electric.net/bluebird_images/blue_bird_toffee.jpg&imgrefurl=http://www.bluebird-electric.net/blue_bird_toffees.htm&usg=__fO1RGBaAQ1Je0LgK9yQXCgrgyIY=&h=278&w=386&sz=21&hl=en&start=13&tbnid=3ql80X7ilyBKuM:&tbnh=89&tbnw=123&prev=/images?q=mint+%E2%80%93+toffees&gbv=2&hl=en&sa=Xhttp://images.google.co.in/imgres?imgurl=http://www.itcportal.com/foods/images/sunfeast01.jpg&imgrefurl=http://appaji.livejournal.com/tag/party&usg=__wjuIYRlY7cZgE5YRCqDx6LJ-RsY=&h=155&w=276&sz=31&hl=en&start=3&tbnid=tUtS3Ugsya9nFM:&tbnh=64&tbnw=114&prev=/images?q=Sunfeast&gbv=2&hl=en&sa=G


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PERSONAL CARE

Products- Fragrances, shampoos, shower gels,conditioners, beauty bath soaps.

ITC's Personal Care portfolio under the 'Essenza DiWills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro','Vivel' and 'Superia' brands has received encouraging

consumer response and is being progressively extendednationally.


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EDUCATION AND STATIONARY

1.ITCs stationery Brands are

marketed as Classmate and

Paper Kraft.

2.Expressions Greeting Cards.

3.CLASSMATE-Indias

truly largest National brand
http://images.google.co.in/imgres?imgurl=http://www.itcportal.com/itc-annual-reports-2009/images/page-33-image-01.jpg&imgrefurl=http://www.itcportal.com/itc-annual-reports-2009/page-33.htm&usg=___B9dJRjU24wUlbjpYnwGxsQC0zA=&h=175&w=218&sz=17&hl=en&start=26&tbnid=diPoUhKloEctkM:&tbnh=86&tbnw=107&prev=/images?q=ITC%E2%80%99s+Paper+kraft&gbv=2&ndsp=20&hl=en&sa=N&start=20


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SAFETY MATCHES AND AGARBATTIS

1. Include popular brands like Mangaldeep,

2. Aim, Aim Mega and Aim Metro.
http://images.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_HaPYpxH4XaI/Squg28ytSGI/AAAAAAAAAYY/dbtCzOkjmmE/s200/AIM.JPG&imgrefurl=http://next-marketing-guru.blogspot.com/2009/09/itc-brands-in-paper-and-other-category.html&usg=__TEoGTh9Ql_V2u2Ve7zC8qNq9UFk=&h=141&w=200&sz=8&hl=en&start=4&tbnid=zw52Qebx6dm3ZM:&tbnh=73&tbnw=104&prev=/images?q=ITC+safety+matches&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.itcportal.com/itc_annualreports03/images/nb05.jpg&imgrefurl=http://www.itcportal.com/itc_annualreports03/no_stops.htm&usg=__dJNekKO7brUVpZBPTegZeUfXx08=&h=205&w=220&sz=11&hl=en&start=1&tbnid=6L7Hk30EHLBPmM:&tbnh=100&tbnw=107&prev=/images?q=ITC+safety+matches&gbv=2&hl=en


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THANKYOU

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FMCG INDUSTRY.pptx