fast moving consumer goods sector
TRANSCRIPT
Fast Moving Consumer Goods
Special Product Groups
Food Sector
Divya Manivannan
Masters In Fashion Management
Fast Moving Consumer Goods – Global Scenario
• FMCG companies are behind the biggest brands in the world.
• The FMCG industry changes fast and is constantly evolving
• FMCG firms thrive on employee and customer retention.
• FMCG companies can beat the recession
• The FMCG industry thinks bigger – and better
• FMCG has a history of delivering what consumers want
Fast Moving Consumer Goods – Global Players
Fast Moving Consumer Goods – Indian Scenario
Fast Moving Consumer Goods – Indian Scenario
Fast Moving Consumer Goods – Indian Scenario
Fast Moving Consumer Goods - Classification
Food and Beverages - Classification
Foo
d &
Bev
erag
es
Unprocessed
Primary Processed
Diary Products
Frozen Food
Spices & Mixes
Health Food
Secondary Processed
Instant Food
Canned Food
Tertiary Processed
Snacks
Beverages
Processed Whole Food Staples
Food and Beverages – Major Players
Global Players in Food & Beverage
• Nestle
• Procter & Gamble
• Coca cola
• Anuheuser Bush in bay
• Unilever
• Pepsico
• Kellogs
Indian Players in Food & Beverage
• ITC Ltd
• Amul
• Dabur India Limited
• Britannia
• Parle Agro
• Haldirams
• Future Consumer Enterprises
• Marico
• Haldirams
Food (Instant & Snacks) – Global Market
Asia Pacific – Largest Market for Food
Food (Instant & Snacks) – Global Market
India – Due to the increase in working population
Food (Instant & Snacks) – Asian Market
Food (Instant & Snacks) – Indian Market
Food(Instant & Snacks) - Indian Market
Asia Pacific – Largest Market for Food, India covers 85% of its Population
Food(Instant & Snacks) - Indian Market
Example – Nestle Product Mix
Food(Instant) - Indian Market
Example – Major Brands in India
Product Strategy – Example (Lays)
• Very high quality control and stringent production processes followed to
produce high quality chips.
• To address rising health concerns, Frito-Lay potato chips have been
manufactured with zero trans-fats and no added MSG.
• To cater to health conscious market, Lay's India recently launched new
“Lay's Baked” range with 50 percent less fat
• Introduced many different “Westernized as well as Indian” flavors to
cater to urban as well as rural market segment.
Pricing Strategy – Example (Lays)
• Frito Lays goal is to provide good quality snack at fair prices so as to
attract customers.
• Since the potato chips market is driven by high impulsive buyers, there is
very little scope of different pricing strategies by market players.
• Prices consistent and comparable to competitors and are generally
inexpensive.
• Introduced SKU’s priced at Rs.5, Rs.10 and Rs. 20
Distribution Strategy – Example (Lays)
• PepsiCo has a well-established network Pan-India
• 30 CFAs, 2 RDCs, 800 distributors , 4 lakh retailers
• Over 1 million retail outlets in over 100 towns/villages
• Lay’s are basically sold everywhere including railway canteens,
gas stations, colleges, groceries, supermarkets, convenience
stores, amusement parks, movie houses and even schools
• Lays displayed at a small Chai waala shop on a hill station
Promotion Strategy – Example (Lays)
• 360 degree promotion
• Frito Lay's roped in various brand
ambassadors like Saif Ali Khan, Dhoni to
promote Lays in different campaigns with
tag lines “No One can eat just one” and “Be
a little Dillogical”
• Free samples for new flavors launched
• Displays before check-out line in the store
• Eye-catching retail displays with special
fixtures for Lays chips at retail stores are
also one of their strategies.
Product Strategies – Range Planning
• Analyze different target customers
health conscious, convenience
seekers
• Analyze different price points –
Value & premium
• Analyze different packaging as per
target customers – depending on
price points
Example – Nestle
Range Planning
Product Strategies – Range Planning
Target.C Value Seekers Health Concious
Pricing Value Core Premium Value Core Premium
50 gms
100 gms
400 gms
Bars Drinks Ice cream
& Desserts
Packages Biscuits
& Cakes
Product Strategies – Range Planning
Premium Pricing
Product Strategies – Range Planning
Indulgence
Value Pricing
Snacks
Example – Cadbury Range Planning
Product Strategies – Line Stretching
• Up Market
• 2Way Market
• Down Market
Down Market Stretching – Cadbury Diary Milk Shots
UP Market Stretching – Cadbury Diary Milk Silk and Cadbury Bourneville
Product Life Cycle
Example – Nestle Maggie PLC
Product Life Cycle
Example – Cadbury Diary Milk PLC
Food (Instant) – Supply Chain
India’s Instant food market growth – necessity for Supply Chain Management
Food (Instant) – Supply Chain
Strong Distribution Channel for Traditional & Modern Retailers
Food (Instant & Snacks) – Retail Dynamics
Packaging Strategy
Strategies involved in packaging
- Convenience
- Branding
Packaging Strategy
Food – Retail Dynamics
Promotional Strategy
• Television
• Radio
• News Paper
• Hoarding
• Public Relation
• Campaign
• Social Media
Marketing Strategy
Promotional Strategy
Marketing Strategy
Marketing Strategy of Pepsico - Lays
Food – Retail Dynamics
Promotional Strategy
• Events & Contests
• Famous Personalities
• Discount Coupons
• Combining Products
• Customized Regional Flavors
• Frequent product launch – mini
segments(diabetics)
• Expansions / Joint Ventures
• Sample Distribution
• Importance for Health
• Brand Personalities/Cartoons
Food (Instant) – Retail Dynamics
Example - Nestle
Food (Instant) – Retail Dynamics
Penetration Strategy used by major brands to increase market share
Market Penetration Level
Penetration Strategy
used by major brands to increase
market share
Thank You