fmcg.ppt

Fast Moving Consumer Goods( FMCG )Marketing : 

Fast Moving Consumer Goods( FMCG )Marketing Presented By :- Sandeep Vaishya Vaibhav Pawar Guided By :- Prof. M. Khan

Slide 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, FMCG started losing their sheen due to introduction of other product types 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.

Slide 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.

Slide 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 Innovative Full of Rich Experience Worldwide reach Frequently travelling opportunities

FMCG Category & Products : 

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.

Why INDIA? : 

Why INDIA? Large Domestic Market:- Large Consumer Goods Spender:- Low Penetration & Low per Capita consumption :- Changing Lifestyles:- Retailing – New growth area Demand & Supply Gap

India’s competitiveness & Comparison with World Market : 

India’s competitiveness & Comparison with World Market Materials Availability:- Leveraging The Cost Advantage:- e.g. P & G outsourced Vicks Vaporub to Australia, Japan etc. from Hyderabad

Domestic Players : 

Domestic Players Britannia India Ltd. (BIL) Dabur India Ltd. Indian Tobacco Corporation Ltd. (ITCL) Marico Nirma Ltd.

Foreign Players : 

Cadbury India Ltd. (CIL) Cargill Coca-Cola Colgate Palmolive India H.J. Heinz Co. Hindustan Lever Ltd. (HLL) Nestle India Ltd. Procter & Gamble Foreign Players

FMCG Vs. Industrial Marketing : 

FMCG Vs. Industrial Marketing

Market Segmentation : 

Market Segmentation Geographic Demographic Social and Economic Behavioral

Geographical : 

Geographical Zone region- nearest zone will be targeted first Villages and town- helps to analyze marketing strategy Density Climate

Demographic : 

Demographic Age- children or adult Gender-male or female

Socio-Economic : 

Socio-Economic Income group- high, medium or low Social and Economic- Education (illiterate, literate , highly literate), social class

Behavioral : 

Behavioral Occasions ( Diwali, Deshehra, Eid) Brand loyalty (rural area people are more brand loyal)

Marketing Strategy : 

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

Slide 17: 

Small size packet strategy Pricing strategy Mark up Go- deterring (e.g. bingo chips) Competitor based Product bundling Same value, size increase Same value, size decrease (e.g. society tea)

Target market : 

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

Advertisement : 

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

Why advertisement? : 

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

Message delivery : 

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

Why product line extension is done? : 

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)

Packaging : 

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).

Latest scenario in FMCG market : 

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