Presented By:

Dubey Avantika Kansal Harkiran Kaur Nandini Maheshwari

Aparajita

 The

Indian FMCG sector - 4th largest Market size - US$13.1 billion. Well-established distribution networks intense competition between the organized and unorganized segments are the characteristics of this sector FMCG in India has a strong MNC presence across the entire value chain. Huge competition. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003.

 The

middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge.

 In

India FMCG sector 4th largest sector. It is a major chunk of the economy so we need to know it completely to know the market. The sector is likely to post a growth of 18 20% in the second quarter of the current fiscal year. In the first quarter, the growth in FMCG sector was around 12%.

 Large

domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies with a strong middle class base of 300 million. Rural and urban potential
urban Population 2001 02 53 rural 135

Population 200910
% Distribution market

69
28 3768

153
72 627000

PRIMARY OBJECTIVES : The aim of term paper is to enhance our knowledge of the FMCG sector by undertaking a significant practical as well as the theoretical unit to examine, analyze and study the various aspects of business management. RESEARCH METHODOLOGY : Data collection technique

Secondary data: -Already existing data is called secondary data. We collected them by following methods:

Internet Books Published Reports News Articles

 HUL-

FORMED IN 1933 AS LEVER BROTHERS INDIA LIMITED, HEADQUARTERED IN MUMBAI.

STARTED IN 1951, AMERICAN COMPANY, HEADQUARTERED IN CINCINNATI. STARTED IN 1910, INDIAN BASED COMPANY,HEADQUARTERED IN KOLKATA. FOUNDED IN 1866, SWITZERLAND BASED COMPANY.

P&G-

ITC-

NESTLE-

METHODS OF MARKETING USED IN FMCGs Use of emotional appeal ads Celebrity endorsements Child endorsement Use of great punch lines and jingles Use of attractive schemes and packages Retail branding Use of social media

STRENGTHS Variety of products. Distribution Network. Quality Management. Innovation and R&D strength WEAKNESS Not able to compete with local competitor in the rural market. Not focus on upper class population. Complex organizational structure.

OPPORTUNITIES Huge Market Increasing per capital income Increasing consumption pattern. Coming in technology e.g. in water purifiers. Developing markets in developing countries. THREATS From High Class Competitor e.g.: HUL and Proctor & Gamble. Foreign currency exchange fluctuations Competitors growing through acquisition.

IMPACT

OF INFLATION ON

FMCGs
IMPACT

OF HIGH INTETREST RATE ON FMCGs:

OF HIGH GDP ON

IMPACT

FMCGs

On 28th April, High Court of Bombay approved the scheme of amalgamation of Bon Limited with HUL after submission of Form 21 with the Registrar of Companies, Mumbai. On Dec09, 2010, Procter & Gamble Co (Procter) of the US acquired the Ambi Pur unit of Sara Lee Corp, a Chicagobased producer and wholesaler of meat and baked goods. In May 11 Nestle Waters North America acquired the Sweet Leaf Tea Co from private equity firm Catterton Partners, and in April the group acquired a controlling stake in Chinese food and drink maker Yinlu Foods Group.

Industry has well established Employee Development Centers in all units and at Corporate level. These centers play an important role in employees learning, training and in developing human resources in line with the companys business plans. These centers design training programs that impart and inculcate personality, motivation and stress management skills among officers. The HR Employee Development Centers focus on in-depth training on new telecom technology, information technology, multi-skill and management development programs and awareness programs.

HUL
Unilevers global strategy is to accelerate growth in developing and emerging markets Through low cost innovation and focussed R&D.

P&G
Grow leading global brands and core categories Build business with underserved and unserved consumers

ITC
To

Enter into less competitive or unexplored markets (Ready to eat, Staples, Wafers) Market differentiation (Ready to eat, Biscuits) ITC started packaged foods business with the target groups including tourists, NRIs, etc.

IT skills are necessary to operate the interorganizational information systems. IT helps in the field of Customer relations management (CRM) , which is the most critical process in the FMCG industry. IT as an enabler improves order and delivery processes, overall cost-effectiveness and efficiency. IT leads to increased process automation, accuracy, and labour efficiency.

 SWOT ANALYSIS

ECONOMIC

ANALYSIS

FINANCIAL ANALYSIS

SUBJECTS COVERED MARKET SHARE MARKETING STRATEGIES

HUL

P&G

ITC

NESTLE

30% Brand extension & Targeting strategies Accelerate growth in D&E Markets

19% Expanding product categories & focus on rural areas Growing our core & extend to reach more customers 901.22

18% Focuses more on advertising

22% Divestment of nonstrategic brands

GLOBAL STRATEGIES

Entering into Competitive less strategy competitive markets like ready to eat. 879.43 12,736.4

NET SALES (in crores)

19,689.91

The only threats to this strong growth trajectory remain the high portion of unorganized trade, the limited distribution network of new entrants and the pressure on profit margins due to increasing competition. But these are likely to be of diminished importance as proportion of organized trade increases and players invest in improving distribution. Going forward, the industry prospects remain attractive, and new graduates can hope to leverage the training and on-the-job learning at the leading players in various functional roles.

Customer Retention: a sector like FMCG should work more on the policies that help in retaining old customers who are loyal to their product rather than working towards acquiring new customers. FMCG sector should cut down on expenditures on varied sources of advertisements to increase their market share. Advertising should be more focussed. Technologies like RFID (Radio Frequency Identification Device), EPC Network for data sharing should be practically applied in the sector to reduce man power. To retain loyal customers, FMCG sector should employ skilled and intelligent labor who can satisfy different types of customers with their convincing powers. More Focus should be on global strategies by producing more apt and innovative products according to requirements of people in other countries to increase companys exports.