Fmcg Sector Main 97-03
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Transcript of Fmcg Sector Main 97-03
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FAST MOVING CONSUMER
GOODS
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Bella Waghralkar - 17
Clyde Fernandes - 25
Shivani Mitkar - 31
Sweta Mayekar - 43
Jayesh Zingade - 49
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Fast Moving Consumer Goods (FMCG) goods are
popularly named as consumer packaged goods.
Non-durable goods
Sold quickly at relatively low cost at large quantities.
Touches every aspects of human life.
Sub segments viz: personal care, oral care, and
household products.
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Detergents
Soaps
Beverages
ShampoosConfectionaries
Creams
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Per Capita Consumption(US$)
0
2
4
6
8
10
12
India China Thailand South Africa
Laundry Shampoo Skincare Deodrants
Per capita consumption in US$
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Name ofFMCG
Market sizein $ Million
Market Sharein %
MarketShare in %
Indian
Comp
anies
MNCs Indian
Comp
anies
MNC
s
1992 2004 1992 2004
Breakfast,
Cereals
2 25 100 0 52 48
Wafers,Potato chips
6 35 100 0 37 63
Washing
Machines
40 570 98 2 51 49
TV 630 3030 97 3 49 51
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India is important market for FMCG products.
The Indian FMCG sector is the 4th largest in theeconomy.
Total market size of around US$18 billion as of2007.
During 1950s to 1980s there was a lowinvestment as the purchasing power was low.
The govt. had put a lot of emphasis on thedevelopment of small scale sector.
The existing companies like HUL were purely focused
on the urban area.
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15
10
11
168
40
Savings Others Clothings
Entertainment Personal Care Grocery
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Wanted for - necessity, comfort, luxury.
Significant part of the consumer's budget.
Spends little time on the purchase decision.
Limited inventory of these products.
Brand switching is often induced by heavy
advertisement and recommendation.
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STRENGTHS:
Low operational costs
Presence of established distribution networks in bothurban and rural areas
Presence ofwell-known brands in FMCG sector.
WEAKNESS:
Lower scope of investing in technology and achieving
economies of scale, especially in small sectors Low exports levels
"Me-too" products, which illegally mimic the labels of theestablished brands. These products narrow the scope ofFMCG products in rural and semi-urban market.
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OPPORTUNITIES:
Untapped rural market.
Rising income levels, i.e. increase in purchasing power ofconsumers.
Large domestic market- a population of over one billion
.
Export potential.
High spending on consumer goods.
Changing Profile and Mind Set of Consumer.
THREATS:
Removal of import restrictions resulting in replacing ofdomestic brands.
Slowdown in rural demand.
Tax and regulatory structure .
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Availability ofraw materials
Presence across value chain
Labor cost comparison
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CONSUMERS:
More choices available.
Purchasing power
increases , especially inrural areas.
Demand shift from basicproducts to morepremium lifestyle
products.
Willing to pay premiumprices for some lifestylechoice.
FMCGPlayers Increase growth via price
hike
Keep pulse on new
customer insights andproduct developments tocater to changing needs
Focus on growth engines:health and personal careproduct categories
Penetrate rural areas
Invest into creativepromotions.
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HINDUSTAN UNILEVER LIMITED
AMUL
DABUR INDIA LIMITED
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No 1 company in India
Sales turnover of Rs 13,718 croresProduces 35 different brands with
15,000 employees
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4th largest company in India
Sales turnover of Rs 2745.74 crores
It has 15 different brands with 20,000
employees
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6th largest company in India
Sales turnover of 2,396 croresIt has 32 different brands with 6,500
employees
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0
5
10
15
20
25
30
35
HUL AMUL DABUR
35
15
32
20
11
17
BRANDS CATEGORY
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Government spending is huge in this sector.
A major portion of the monthly budget of each household
is reserved for FMCG products.
Customer spends a lot on this sector.
The volume ofmoney circulated in the economy against
FMCG products is very high, as the number of products
the consumer use is very high.
Increase in overall GDP which leads to increase in real
income.
Easy flow of capital in the economy.
Competition in the FMCG sector is very high resulting in
high pressure on margins.
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