fmcg sector companies

8/2/2019 Fmcg Sector Companies

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SWOT & PEST OF FMCG SECTOR

COMPANIES

PRESENTED BY

AMAN PACHISYA

M.B.A -M.I.T -FINAL YEAR


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OBJECTIVE UNDER STUDY

To study the product differenitation of fmcgcompany.

To study the marketing strategy of each company.

To study the Swot & Pest analysis of fmcg sectorcompany.


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INTRODUCTION

One of the fastest growing sector.

Deals with fmcg products or first moving consumer goods.

Principle constituents are household care, personal care , food & beverages.

FMCG Industry is characterized by a well established distribution network, low

penetration levels, low operating cost, lower per capital consumption and intense competition

between the organized and unorganized segments.

Indias fmcg sector is 4th

largest Sector in the economy and contribute to around 3 millionemployment opportunities.

The dream of every creative man, any investor, advertising agency, or B-school graduate

to work in or for FMCG company.


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SECTOR OUTLOOK IN INDIA

Fourth largest sector in indian economy with a total market size of

Rs.60,000 crores. FMCG sector generates 5% of total factory employment inthe country.

FMCG sector will witness more than 60 % growth in rural and semi-urban

India by 2010. Indian consumer goods market is expected to reach $400

billion by 2010.

FMCG market in India is growing at a fast pace despite of the economic

downtrend. The FMCG market is set to double from USD 14.7 billion in

2008-09 to USD 30 billion in 2012.

FMCG Charaterized by Market Potentiatily.


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Swot of Fmcg sector


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1. GST Regime

2. Transportation and infrastructure

development in rural areas helps indistribution network.

3. Restrictions in import policies.

4. Help for agricultural sector

1. GDP rate increase along

2. Increase in disposable income at 10 %

annually for next 8 yrs.

3. Indian FMCG Recorded 16% Sales

Growth in Last Fiscal.

4. The FMCG sector is a 4th largest sector of

Indian

1. Rural employment

2,Volume-driven growth in rural market.

3.Major young population can increase

revenue .

4.The Indian culture, social & life styles are

changing drastically

1.Technology has been simplified and available

in the industry.

2. Foreign players helps in high technological

development.

Pest of Fmcg sector


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Advantages To The Sector

I.Governmental Policy.

II. Central & State Initiatives.

III. Foreign Direct Investment (FDI).

IV. Market Opportunities Vast Rural Market.


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Sectoral Opportunities:-

I. Dairy Based Products.

II.Packaged Food.

III. Oral Care.

IV. Beverages.


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Global Players

Company Prospects:


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Founded :1933Mission: Unilever's mission is to add Vitality to life.

Headquarters: Mumbai, India

Type: Public company

HUL is the largest Packed Mass Consumption Goods company in

India. It is the leader in home and personal care products and food

products.

HUL is the leader with market share of ~53 per cent;Hindustan Unilever Limited is the biggest producer of Personal

wash and detergents

Company Prospects:---

I


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I

Founded: 24 August 1910MISSION : Working for you.Working for India.

Headquarters: Kolkata, India

Total Revenue: 26,259.60 crores (2010)

FMCG Revenue: 20,924.71 crores (2010) .

More facts:

ITC ranks among India's 10 Most Valuable (company)Brands.

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

ITC believes in Touching your life. Everyday

ITC now offering more margins, exiting offers and long credit period to retailers and

Wholesalers


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Founded 1884

Founder(s) Dr. S K Burman.

Headquarters: Sahibabad, Ghaziabad.

Distrbution network:4000 Distributors in India.Retail Reach-2,500,000.

5 Umbrella Brands.

350+ products.

4000 employees.

15 Manufacturing Plants,Dabur is Indialargest Ayurvedic medicine manufacturer

Largest Herbal & Natural Portfolio


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Cadbury IndiaEstablished in India: 1948 Cadbury.

MissionCadbury in every pocket

Manufacturing facilities at:1) Thane, 2) Induri (Pune), 3) Malanpu(Gwalior),4)Bangalore 5) Baddi

(Himachal Pradesh)

Operates in India in 4 categories viz.

1)Chocolate confectionary2)Milk food drinks

3)Candy

4)Gum


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Procter & Gamble Co.

P&G: is a Fortune 500, American multinational corporation headquartered in Cincinnati, Ohio, that manufactures a wide

range of consumer goods

PVP (PURPOSE,VALUES,PRINCIPLES)

I. PURPOSE

Branded products & services of superior quality & value to improve the lives of consumers

II. VALUES

TRUST

LEADERSHIP

PASSION FOR WINNING

III. PRINCIPLES

SEEK TO BE THE BEST

FOCUSSED IN WORK

RESPECT FOR INDIVIDUALS

1 LARGE MARKET SHARE


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1.LARGE MARKET SHARE

2.STRONG BRAND3.LEADER IN RURAL MARKETS4.LARGEST EXPORTER

SWOT

ANALYSIS

HINDUSTAN UNILEVER I T C CADBURY DABUR PROCTEL &

GAMBLE

STERNGTH 1L.ARGE MARKET SHARE

2.STRONG BRAND

3.LEADER IN RURAL

MARKETS

4.LARGEST EXPORTER

1.STRONG BRAND

MANAGEMENT

2.DIVERSIFICATION

3.SUSTIANIBILITY AND CSR

PROGRAMMES

1.STORNG BRAND IMAGE

2.POSITIVE PERCEPTION

3.WORLD LEADER IN

CHOCLATES

1.STRATERGIC

PARTNERS

2.WORLDWIDE

COVERAGE

3.100 YEARS OF

EXPERIENCE

1.VAST EXPERIENCE

IN ORAL &

PERSONAL HYGIENE.

2.STRONG

BRANDING

3.P&G INVEST IN

R&D

WEAKNESS 1.NOT FOCUSSED ON

HIGHER CLASS PEOPLE

2.MIMICS OF BRANDS

3.ENTRY OF ITC

4.TAX & REGULATORY

STUCTURE

1.ITC IS STILL MORE

DEPENDEND ON TOBACCO

REVENUES.

2.HEAVY TAXATION POLICIES

1.LOW PENETRATION IN

RURAL MARKETS

2.PEOPLE AVOID CHOCLATE

BECAUSE OF EGG INGEDIENT

3.HIGH PRICED BRAND

1. NO RETAIL

OUTLETS

2. NO DOORSTEP

DELIEVERY

1.BEAUTY & HEALTH

CARE PRODUCTS

FOR WOMEN.

2. P & G DOES NOT

DIVEST ITS WEAK OR

POOR BRANDS.

OPPURTUNIT

Y

1.INCREASING

CONSUMPTION PATTERN

2.CAN SWITCH TO

DIFFERENT SEGMENTS

3.POTENTIAL FOR MAKING

4.STRONG BRAND IMAGE

1.TAPPING RURAL MARKET

2.MERGER

3.E-CHOUPAL

4.FRANCHISEE

1.CAN TAP BECAUSE OF

HUGE POPULATION

2.CHANGING TASTE AND

PREFRENCES

1.OVERSEAS

DEALERSHIP

2.HUGE EXPORTS

1. HEALTH&BEAUTY

PRODUCTS FoR

MEN.

2.USING ONLINE

SOCIAL NETWORKS

&INTERNET

MARKETING

TECHNIQUESTHREAT THREATS FROM HIGH CLASS

COMPETITOR

P&G

ITC

DABUR

MARICO

1.HEAVY TAXES IN

CIGRATTES

2.MORE COMPETITORS

1.NO BRAND LOYALTY 1.KERELA-HUB OF

AYURVEDA

1.COMPANY IS

CONSTANTLY

TRYING TO PURSUE

GROWTHOVERSEAS.

2.CUT THROAT

COMPETITION

HINDUSTAN ITC CADBURY DABUR PROCTEL& GAMBLE


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PEST

ANALYSIS

HINDUSTAN

UNILEVER

ITC CADBURY DABUR PROCTEL& GAMBLE

POLITICAL

1.CHALLENGING

ENVIRONMENT

WITH RESPECT TO

GOVT REGULATION

TAXATION

1.100% FDI ALLOWED .

2.BAN ON COMMUNICATION

OF TOBACCO ADS

1.INCREASED TAXES

ON CHOCLATES

2.GOVT CONCERN

FOR OBESITY

3.HEART PROBLEMS

1.TAXATION

POLICY

2.ENVIRONMENTAL

PROTECTION LAWS

1.HIGH BARRIERS TO

ENTRY ARE ERECTED

BECAUSE NEW

ENTRANTS.

ECONOMIC

1.TOP THREE

PRODUCERS

2.TOP TEN

EXPORTS

3.2.3 MILLION

DEPENDEND ON

LIVELIHOOD

1.PROFIT MARGIN IS HIGH

2.OTHER FORMS OF CHEAP

TOBACCO INTAKE

1.NEED LOW

INTEREST RATES FOR

BORROWING

1.INFLATION

2. DISPOSABLE

INCOME

1 .RESISTED CUTTING

PRICES BECAUSE OF

FACTORS SUCH AS

HIGH COMMODITY

COSTS AND A FEAR OF

HURTING ITS BRANDS'

IMAGE OF

SUPERIORITY.

SOCIAL 1.GROWINGCONCERNS FOR

TOBBACO .

2.CONSUMPTION

RESTRICTIONS ON

PROMOTION

1.BECOMING STATUS

SYMBOL.

2. CHANGING ATTITUDES

TOWARDS TOBACCO .

3.CHANGE IN LIFE STYLE

1. NEWS TRENDS IN

SNACKING

2. HEALTH CONCIOUS

PEOPLE

1.DEMOGRAPHICS

2..LIFESTYLE

CHANGES

3.LEVELS OF

EDUCATION

1.RESPOND TO

CONSUMERS DESIRES

IN TERMS OF QUALITY

AND INNOVATION

TECHNO-

-LOGICAL

1.INVENTORY

CONTROL

2. HIGH-TECH

LOGISTICS

TECHNOLOGY

1.CHEAP LABOUR SUPPLY.

2.ADAPTING OTHER

CONCEPTS LIKE QC,TQM

ETC.

1.NEW MACHINERY

FOR PRODUSTION

NEW TECHNOLOGY

1.NEW

DISCOVERIES AND

INNOVATIONS

2.SPEED OF

TECHNOLOGY

INTERNET

1. DEVELOP AND

INVEST IN NEW

TECHNOLOGIES.,

2.P&G IS MAKE THE

DIFFERENCE, IT

SPENDS $5 MILLION

PER DAY FOR R&D.

Recommendation


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Recommendation Cadbury

Cadbury focuses on choclates no dietary Options for heath concious people.

Cadbury should continue to promote itself as substitute to mithai.

Cadbury should introduce new flavors like strawberry,orange,vanilla etc .

Dabur

Increasing customer awareness & education regarding the Ayurvedic Dabur products.

More advertisements should be there focussing on the products, their mode of usage & benefits.

Packaging relative to the pricing should be improved and trial packs should be promoted . Dabur isn't the category leader in any of the consumer product categories where it has a presence: it is No. 4 in

shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps.

Proctel & Gamble

IT should continue to manufacture products that are less harm to environment issues.

Hindustan Unilever

It can switch to new brands in segments like confectionary ,medicines etc.

diversification.

HUL Has dominated Indian markets in various segments over the years through its product quality and widedistribution network but it has to find out new ways and strategies to tackle competition as various other

competitors like Colgate, marico, ITC etc.

ITC

Must not be dependend on tobacco segment as it causes health problems.


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CONCLUSION

Despite inflationary pressures sale of FMCG products is not adversely affected due to price hikes becausedemand for these products can never shrink and there is also a scope for FMCG companies to gain

through product diversification and introducing new variants of the existing products.

FMCG Companies mostly produce labor intensive products and not capital intensive.

The FMCG environment in India and overseas is competition intensive and companies need to focus on

branding, product development, distribution and innovation to ensure their survival.

More and more people these days have started involving themselves in this field as; it creates

tremendous job opportunities for them. It is a steady, diverse and a highly profitable industry where a

person can do a lot of work.

The jobs in this field range from sales and supply chain, investment, promotion, H.R development, and

general management. It also allows you to trade directly with the various traders online.

fmcg sector companies

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