in depth analysis on fmcg sector in india

8/11/2019 In Depth Analysis on FMCG Sector in India

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Analysis on FMCG

What is FMCG?

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold

uickly and at relativelylo! cost"#$amples include non-dura%le goods such as so&t drinks' toiletries'and grocery items" hough the a%solute pro&it made on FMCG products is relatively small' they are

generally sold in large uantities' and so the cumulative pro&it on such products can %e su%stantial"

he term FMCGs re&ers to those retail goods that are generally replaced or &ully used up over a shortperiod o& days' !eeks' or months' and !ithin one year" his contrasts !ith dura%le goodsor maorappliancessuch as kitchen appliances' !hich are generally replaced over a period o& several years"

FMCG have a short shel& li&e' either as a result o& high consumer demand or %ecause the productdeteriorates rapidly" *ome FMCGs+such as meat' &ruits and vegeta%les' dairy products' and %akedgoods+are highly perisha%le" ,ther goods such as alcohol' toiletries' pre-packaged &oods' so&t drinks'

and cleaning products have high turnoverrates" An e$cellent e$ample is a ne!spaper+every daysne!spaper carries di&&erent content' making one useless ust one day later' necessitating a ne!

purchase every day"

he &ollo!ing are the main characteristics o& FMCGs.

From the consumers perspective.

o Freuent purchase

o /o! involvement (little or no e&&ort to choose the item 0 products !ith strong%rand

loyaltyare e$ceptions to this rule)

o /o! price

From the marketers angle.

o 1igh volumes

o /o! contri%ution margins

o #$tensive distri%utionnet!orks

o 1igh stock turnover

he 2ndian FMCG sector is the &ourth largest sector in the economy !ith an estimated si3e o&4s"5'677 %illion" he sector has sho!n an average annual gro!th o& a%out 558 per annum over thelast decade" 9nlike the developed markets' !hich are prominently dominated %y &e! large players'2ndia:s FMCG market is highly &ragmented and a considera%le part o& the market comprises o&unorgani3ed players selling un%randed and unpackaged products" here are appro$imately 5;-56million retail stores in 2ndia' out o& !hich < million are FMCG kirana stores"

2ndia FMCG sectors: signi&icant characteristics can %e listed as strong M=C presence' !ellesta%lished distri%ution net!ork' intense competition %et!een the organised and unorganised playersand lo! operational cost" #asy availa%ility o& important ra! materials' cheaper la%or costs and

presence across the entire value chain gives 2ndia a competitive advantage"

Penetration level and per capita consumption in many product categories is very lo! compared to!orld average standards representing the une$ploited market potential" Mushrooming 2ndian
http://en.wikipedia.org/wiki/Low_costhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Toiletrieshttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Inventory_turnoverhttp://en.wikipedia.org/wiki/Inventory_turnoverhttp://en.wikipedia.org/wiki/Newspaperhttp://en.wikipedia.org/wiki/Brand_loyaltyhttp://en.wikipedia.org/wiki/Brand_loyaltyhttp://en.wikipedia.org/wiki/Contribution_marginhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Low_costhttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Toiletrieshttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Inventory_turnoverhttp://en.wikipedia.org/wiki/Newspaperhttp://en.wikipedia.org/wiki/Brand_loyaltyhttp://en.wikipedia.org/wiki/Brand_loyaltyhttp://en.wikipedia.org/wiki/Contribution_marginhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Stock_turnover


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population' particularly the middle class and the rural segments' presents the huge untappedopportunity to FMCG players" Gro!th is also likely to come &rom consumer upgrading in thematured product categories like processed and packaged &ood' mouth !ash etc" A distinct &eature o&the FMCG industry is the presence o& international players through their su%sidiaries (1//' P>G'

=estle)' !hich ensures innovative product launches in the market &rom their parents port&olio"

,ur country has a varied agro-climatic condition !hich ena%les to o&&er e$tended ra! material %asesuita%le &or many FMCG su% sections like &ood processing industries etc" 2ndia is the one o& the maor

producer o& livestock' milk' sugarcane' coconut' spices and cashe! and is the second largest producero& rice' !heat and &ruits > vegeta%les" *imilarly' 2ndia has an a%undant supply o& caustic soda andsoda ash' the chie& ra! materials reuired in the production o& soaps and detergents' !hich ena%les thehousehold section o& the industry to e$cel and gro!" he accessi%ility o& these ra! materials gives2ndia the locational advantage"

Major highlights of the sector

58 F@2 has %een allo!ed in multi%rand retail in 2ndia" Massive investments are e$pected in

&ood processing' storage &acilities and e&&icient logistics" he sector !hich !ill %ene&it themost &rom this !ill %e the FMCG sector"

/ast year' 2ndia had a %umper khari& crop" 1istorically' it has %een o%served that 2ndia:s

agricultural output and sales volumes o& FMCG companies are highly correlated" hus a goodper&ormance can %e e$pected &rom this sector this &iscal"

,ver the past decade' there has %een a ualitative shi&t in the consumer pre&erences in 2ndia"

*upported %y rise in per capita income' a rise in demand &or %randed clothes' high endaccessories' and value added personal care products has %een !itnessed" Given the highgro!th phase that the economy is going through' the trend is e$pected to continue"

,rganised retail as a segment in the FMCG industry has %een gro!ing rapidly over the past

&e! years" /arge scale procurement has ena%led the organised retail players to source theirproducts directly &rom the manu&acturers" his has led to eliminating the middlemen' there%yreducing the overall price o& the product supplemented %y increasing demand &or the

products" he trend is e$pected to continue and organised retail players !ill see highergro!th in the &uture"

Gro!th drivers.


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Industry Classification and Performance

hree !ell-identi&ied sets o& players operate !ithin a highly developed and intenselycompetitive landscape o& the 2ndian FMCG market"

5" Foreign players !ho are present through their su%sidiaries such as 9nilever' P>G' =estle

and PepsiCo

;" *trong 2ndian players !ith esta%lished national presence such as Marico' @a%ur andGodre Consumer Products"

6" 4egional or small domestic players' such as Aanta' Anchor' Cavinare etc"' !ho are presentin a &e! regions o& the country

Apart &rom these' there are regional and small-scale FMCG players such as small tea producers andorganic &ood producers' !ho mainly compete %y o&&ering lo!-priced products !ith similar looks or

packaging compared to the %igger %rands' to the Bright consumers: typically %ased in rural areas or insmall to!ns" hese players !ith lo!er corporate overheads and clear &ocus on speci&ic consumer

reuirements have a competitive edge over larger FMCG players"

Major Segments Of The FMCG Industry:

Household Care

he detergents segment is gro!ing at an annual gro!th rate o& 57 to 55 per cent during thepast &ive years" he local and unorgani3ed players account &or a maor share o& the totalvolume o& the detergent market" he pre&erence is given to detergents in ur%an area comparedto %ars" 1ousehold care segment is &eatured %y intense competition and high level o&

penetration" With rapid ur%ani3ation' emergence o& small pack si3e and sachets' the demand&or the household care products is %ooming" 2n !ashing po!der segment' 19/ is the leader

!ith 6D per cent o& market share" ,ther maor players are =irma' 1enkel and Proctor >Gam%le"


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Personal Care

Personal care segment includes personal !ash products' hair care products' oral care products'cosmetics etc" he 2ndian skin care and cosmetics market is valued at E; million and isdominated %y 19/' Colgate Palmolive' Gillette 2ndia and Godre" he coconut oil market

accounts &or ; per cent share in the hair oil market" he hair care market can %e segmentedinto hair oils' shampoos' hair colorants > conditioners' and hair gels" 2n the %randed coconuthair oil market' Marico (!ith Parachute) and @a%ur are the leading players" *achet makes upto 7 per cent o& the total shampoo sale" Again the market is dominated %y 19/ !ith around per cent market shareH P>G occupies second position !ith market share o& around ;6

per cent" Personal !ash can %e &urther segregated into three segments namely Premium'#conomy and Popular" 1ere also' 19/ is the leader !ith market share o& 6 per centHGodre occupies second position !ith market share o& 57 per cent" *!elling disposa%leincomes o& the 2ndian consumers' gro!th in rural demand and upgrading to the premium

products are the key drivers &or &uture demand gro!th in maor FMCG categories" he skincare market is at a primary stage in 2ndia" With the change in li&e styles' increase in disposa%leincomes' greater product choice and availa%ility' people are %ecoming more alert a%out

personal grooming" he maor players in this segment are 1industan 9nilever !ith a marketshare o& per cent' &ollo!ed %y Cavinare !ith a market share o& 5; per cent and Godre!ith a market share o& 6 per cent" he oral care market can %e segmented into toothpaste -I7 per centH toothpo!der - ;6 per centH tooth%rushes - 5 per cent" his segment is dominated

%y Colgate-Palmolive !ith market share o& < per cent' !hile 19/ occupies second position!ith market share o& 67 per cent" 2n toothpo!ders market' Colgate and @a%ur are the maor

players"

Food and Beerages

his segment comprises o& the &ood processing industry' health %everage industry' %read and%iscuits' chocolates > con&ectionery' Mineral Water and ice creams" he three largestconsumed categories o& packaged &oods are packed tea' %iscuits and so&t drinks" 2ndian hot

%everage market is a tea dominant market" he maor share o& tea market is dominated %yunorgani3ed players" /eading %randed tea players are 19/ and ata ea" Maor players in&ood segment are 19/' 2C' Godre' =estle and Amul"

Strategic concerns for the Industry !

Compared to the developed nations' the logistics &acilities in 2ndia are o& very lo! standard" A

signi&icant amount o& goods get destroyed in transportation and storage" he distri%utionchannels too are not !ell organised" /arge num%ers o& small localised vendors have to %eengaged' leading to pro%lems in co-ordinating %et!een them and managing them"

here is heavy competition among the e$isting players in the industry" he entry and e$it%arriers are very lo!" Moreover' a large num%er o& players operate at the local level and theyhave a niche o& their o!n" #$ample. erosram il ,il is a dominating %rand in its segment

%ut it sells its products only in Jihar' ,rissa and Assam" here are a large num%er o& suchcompanies operating in the unorganised market' each !ith a di&&erentiated product o& its o!nand commanding its o!n loyalty" =ot only do they compete amongst themselves %ut alsocompete !ith the large organised players"

A large num%er o& players in the unorganised sector are kno!n to %e notorious &or making

counter&eits" hese small manu&acturers eat into the margins o& large companies and are o&tenvery di&&icult to track"

Com"anies in FMCG sector:


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Sr# $o Com"anies

% Hindustan &nileer 'td

( ITC )Indian To*acco Com"any+

, $estle India

- .M&'

/ 0a*ur India1 .sian Paints )India+

2 Cad*ury India

3 Britannia Industries

4 Procter and Gam*le Hygiene and health care

%5 Marico Industries

Ten Major Food Com"anies:

Hindustan &nileer 'td:

1industan 9nilever /imited (a%%reviated to 19/)' &ormerly 1industan /ever /imited ' is 2ndiaslargest consumer products company and !as &ormed in 5


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1industan /ever /td (1//) is 2ndias largest and highly progressive company in FMCG sector" 1//s%rands like /i&e%uoy' /u$' *ur& #$cel' 4in' Wheel' Fair > /ovely' Ponds' *unsilk' Clinic' Pepsodent'Close-up' /akme' Jrooke Jond' issan' norr-Annapurna' !ality Walls are household namesacross the country and span a host o& categories' such as soaps' detergents' personal products' tea'co&&ee' %randed staples' ice cream and culinary products" hese products are manu&actured over 7&actories across 2ndia and the associated operations involve over ;'777 suppliers and associates"1industan /ever /imiteds distri%ution net!ork comprises a%out '777 redistri%ution stockists'covering I"6 million retail outlets reaching the entire ur%an population' and a%out ;7 million ruralconsumers" 1// is also one o& 2ndias largest e$porters" 2t has %een recognised as a Golden *uper *tarrading 1ouse %ythe Government o& 2ndia" Presently' 1// has over 5I'777 employees including over 5';77 managers"2ts mission is to Kadd vitality to li&e"K he Anglo-@utch company 9nilever o!ns a maority stake in1industan /ever /imited"

1industan 9nilever /imited (19/)' a ;8-o!ned su%sidiary o& Anglo-@utch giant 9nilever' has%een !orking its !ay into 2ndia since 5DDD' !hen it started selling its products there" As 2ndias largestconsumer goods &irm' 19/ markets more than 77 %rands that include %everages' &ood' and home and

personal care goods" *ome o& its names include !ality Walls ice cream' *unlight dish detergent'/i&e%uoy soap' /ipton tea' Pepsodent toothpaste' and *ur& laundry detergent" 19/ markets atta (atype o& meal)' mai3e' rice' and salt' and its e$port division ships castor oil and &ish" he company alsosells %ottled !ater and over-the counter healthcare items" 2t licenses its /akmL and /ever Ayush

%rands"

1industan /ever /imited (1//) is 2ndias leading consumer goods supplier' !ith a &ocus on the Fast-Moving Consumer Goods (FMCG) category that includes detergents' soap' shampoo' deodorant'toothpaste' and other personal care items' and cosmetics" 1//s personal care %rands include soap

%rands such as /u$' /i&e%uoy' /iril' Jree3e' @ove' Pears' and 4e$onaH shampoos and hair coloring%rands including *unsilk =aturals and ClinicH skin care %rands Fair > /ovely and PondsH and oralcare %rands Pepsodent and Close-9p" he companys cosmetic line is led %y the /akme %randH 1//

also produces a line o& Ayurvedic personal and healthcare items under the Ayush %rand" 2n addition tothe FMCG segment' 1// has developed a line o& &ood items' primarily under the issan and norrAnnapurna %rands' as !ell as the ice cream %rand !ality Walls" 2n the early ;777s' 1// alsoacuired %aked goods producer Modern Food 2ndustries" 2n addition to its domestic %rand &amily'1// sells %ulk &oods' including mai3e' rice' salt' and atta" 1// is also an active e$porter' shipping itsFMCG and &ood %rands' as !ell as riceH marine products including surimi' shrimp' cra%sticks' andothersH and castor oil" 1// has completed a restructuring o& its %usiness in the &irst hal& o& the ;777s'streamlining its %rand port&olio' &rom 557 %rands to 6 Kpo!erK %rands' !hile e$iting a num%er o&

%usinesses' such as teas (sold to the Wood%riar Group in ;77I) and specialty chemicals" 1//maintains a strong manu&acturing presence in 2ndia' !ith some D7 &actories located throughout thecountryH the company also su%contracts to more than 57 third-party producers" 1// is itsel& asu%sidiary o& 9nilever' !hich controls 5" percent o& the group"

Hindustan 'eer 'td 6 Products

With 77 %rands spanning 5 categories o& home' personal care and &oods products' no other companytouches so many peoples lives in so many di&&erent !ays" Jrand port&olio has made us leaders inevery &ield in !hich !e !ork" 2t ranges &rom much-loved !orld &avourites including /ipton' norr'@ove and ,mo' to trusted local %rands such as Jlue Jand and *uave" From com&orting soups to !arma !inters day' to sensuous soaps that make customers &eel &a%ulous' and products help people getmore out o& li&e" 19/ is constantly enhancing its %rands to deliver more intense' re!arding producte$periences" 2t invests nearly 5 %illion every year in cutting-edge research and development' and has&ive la%oratories around the!orld that e$plore ne! thinking and techniues to help develop products"Consumer research plays a vital role in its %rands development" hey are constantly developing ne!

productsand developing tried and tested %rands to meet changing tastes' li&estyles and e$pectations" And ourstrong roots in local markets also mean they can respond to consumers at a local level" Jy helping


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improve peoples diets and daily lives' can help them keep healthier &or longer' look good and givetheir children the %est start in li&e" here is a %ig list o& products o& this company and e$plained %elo!.

Health 7 "ersonal care

First launched in France in 5


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,pportunity &or %oosting sales and revenue is very good"

/o! cost operations in 2ndia due to availa%ility o& ra! materials and cheap la%our costs"

Threats:

2mports &rom China at lo!er cost creating di&&iculty"

Government policies and ta$ regulation are necessary to %e implemented"

*lo!do!n in demand due to local &actors in 2ndia economy" From internal and e$ternal &oreign player tough competition is %eing &aced"

Procter and Gam*le:

History:

William Procter' a candlemaker' and Qames Gam%le' a soapmaker' emigrated &rom #ngland and2reland respectively" hey settled in Cincinnati initially and met !hen they married sisters' ,livia and#li3a%eth =orris" Ale$ander =orris' their &ather-in-la!' called a meeting in !hich he persuaded hisne! sons-in-la! to %ecome %usiness partners" ,n ,cto%er 65' 5D6' as a result o& the suggestion'

Procter > Gam%le !as created"

2n 5DD05D Gam%le" @uring the American Civil War' the company !on contracts to supply the9nionArmy!ith soap andcandles"2n addition to the increased pro&its e$perienced during the !ar' themilitary contracts introduced soldiers &rom all over the country to Procter > Gam%les products"

2n the 5DD7s' Procter > Gam%le %egan to market a ne! product' an ine$pensive soap that &loats in!ater" he company called the soap 2vory" William Arnett Procter' William Procters grandson' %eganapro&it-sharingprogram &or the companys !ork&orce in 5DD" Jy giving the !orkers a stake in thecompany' he correctly assumed that they !ould %e less likely to go on strike"

he company %egan to %uild &actories in other locations in the 9nited *tates %ecause the demand &orproducts had outgro!n the capacity o& the Cincinnati &acilities" he companys leaders %egan todiversi&y its products as !ell and' in 5 Gam%le had their 9 1eaduartersat 1edley 1ouse in =e!castle upon yne' until uite recently" =umerous ne! products and %rand

names !ere introduced over time' and Procter > Gam%le %egan %ranching out into ne! areas" hecompany introduced idelaundry detergentin 5 Gam%le acuired a num%er o& other companies that diversi&ied its product line and

signi&icantly increased pro&its" hese acuisitions included Folgers Co&&ee' =or!ich #atonPharmaceuticals (the makers o& Pepto-Jismol)' 4ichardson-Ricks' =o$ell (=o$3ema)' *hultons ,ld
http://en.wikipedia.org/wiki/William_Procter_(candlemaker)http://en.wikipedia.org/wiki/James_Gamble_(industrialist)http://en.wikipedia.org/wiki/American_Civil_Warhttp://en.wikipedia.org/wiki/Union_Armyhttp://en.wikipedia.org/wiki/Union_Armyhttp://en.wikipedia.org/wiki/Candlehttp://en.wikipedia.org/wiki/Ivory_(soap)http://en.wikipedia.org/wiki/Profit-sharinghttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Criscohttp://en.wikipedia.org/wiki/Shorteninghttp://en.wikipedia.org/wiki/Vegetable_oilshttp://en.wikipedia.org/wiki/Vegetable_oilshttp://en.wikipedia.org/wiki/Animal_fathttp://en.wikipedia.org/wiki/Thomas_Hedley_Co.http://en.wikipedia.org/wiki/Newcastle_upon_Tynehttp://en.wikipedia.org/wiki/Tide_(detergent)http://en.wikipedia.org/wiki/Detergenthttp://en.wikipedia.org/wiki/Prellhttp://en.wikipedia.org/wiki/Fluoridehttp://en.wikipedia.org/wiki/Crest_toothpastehttp://en.wikipedia.org/wiki/Charminhttp://en.wikipedia.org/wiki/Downyhttp://en.wikipedia.org/wiki/Fabric_softenerhttp://en.wikipedia.org/wiki/Fabric_softenerhttp://en.wikipedia.org/wiki/Pampershttp://en.wikipedia.org/wiki/Disposable_diapershttp://en.wikipedia.org/wiki/Johnson_%26_Johnsonhttp://en.wikipedia.org/wiki/Folgers_Coffeehttp://en.wikipedia.org/wiki/Pepto-Bismolhttp://en.wikipedia.org/wiki/Noxzemahttp://en.wikipedia.org/wiki/Old_Spicehttp://en.wikipedia.org/wiki/William_Procter_(candlemaker)http://en.wikipedia.org/wiki/James_Gamble_(industrialist)http://en.wikipedia.org/wiki/American_Civil_Warhttp://en.wikipedia.org/wiki/Union_Armyhttp://en.wikipedia.org/wiki/Union_Armyhttp://en.wikipedia.org/wiki/Candlehttp://en.wikipedia.org/wiki/Ivory_(soap)http://en.wikipedia.org/wiki/Profit-sharinghttp://en.wikipedia.org/wiki/Workforcehttp://en.wikipedia.org/wiki/Criscohttp://en.wikipedia.org/wiki/Shorteninghttp://en.wikipedia.org/wiki/Vegetable_oilshttp://en.wikipedia.org/wiki/Vegetable_oilshttp://en.wikipedia.org/wiki/Animal_fathttp://en.wikipedia.org/wiki/Thomas_Hedley_Co.http://en.wikipedia.org/wiki/Newcastle_upon_Tynehttp://en.wikipedia.org/wiki/Tide_(detergent)http://en.wikipedia.org/wiki/Detergenthttp://en.wikipedia.org/wiki/Prellhttp://en.wikipedia.org/wiki/Fluoridehttp://en.wikipedia.org/wiki/Crest_toothpastehttp://en.wikipedia.org/wiki/Charminhttp://en.wikipedia.org/wiki/Downyhttp://en.wikipedia.org/wiki/Fabric_softenerhttp://en.wikipedia.org/wiki/Fabric_softenerhttp://en.wikipedia.org/wiki/Pampershttp://en.wikipedia.org/wiki/Disposable_diapershttp://en.wikipedia.org/wiki/Johnson_%26_Johnsonhttp://en.wikipedia.org/wiki/Folgers_Coffeehttp://en.wikipedia.org/wiki/Pepto-Bismolhttp://en.wikipedia.org/wiki/Noxzemahttp://en.wikipedia.org/wiki/Old_Spice


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*pice'Ma$ Factor' and the2amsCompany' among others" 2n 5 @ri' and

@ry 2dea !ere sold to @ial Corporation"ST

he companies o&&icially merged on ,cto%er 5' ;77"/iuid Paper' and Gillettes stationery division' Paper Mate!ere sold to=e!ell 4u%%ermaid" 2n ;77D'P>G %ranched into the record %usiness !ith its sponsorship o& ag 4ecords'as an endorsement &orAG Jody *pray"

P>Gs dominance in many categories o& consumer products makes its%rand managementdecisions!orthy o& study" For e$ample' P>Gs corporate strategists must account &or the likelihood o& one o&their productscanni%ali3ing the sales o& another"

,n August ;' ;77


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no!ledge o& local customers and territory sometimes not availa%le

O""ortunities:

2ndian erritory is still untapped and it is !ith huge potential &or gro!th"

#$port potential can %e utili3ed %y the company"

Cost competitive advantage to the company due to &avoura%le 2ndian market position"

,pportunity &or e$pansion in all relevant aspects o& FMCG sector e$ists"Threats:

hreats &rom lo! cost production imports"

=ecessary implementation o& policies and ta$ation rules in 2ndia"

*ometime the local market conditions a&&ect the demands and sales"

Connectivity in rural areas is not good &or %etter coverage"

ITC 'imited

2C !as &ormed on August ;' 5


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the o&&ice consuma%le segment !ith the launch o& e$tliners' Permanent 2nk Markers andWhite Joard Markers in ;774 (ConsumerPackaged Goods > 4etail)' 1 (ravel' 1ospitality and ransportation) and Media >#ntertainment"

2Cs &oray into the Foods %usiness is an outstanding e$ample o& success&ully %lendingmultiple internal competencies to create a ne! driver o& %usiness gro!th" 2t %egan in August;775 !ith the introduction o& itchens o& 2ndia ready-to-eat 2ndian gourmet dishes" 2n ;77;'2C entered the con&ectionery and staples segments !ith the launch o& the %rands mint-o andCandyman con&ectionery and Aashirvaad atta (!heat &lour)" ;776 !itnessed the introductiono& *un&east as the Company entered the %iscuits segment" 2Cs entered the &ast gro!ing

%randed snacks category !ith JingoX in ;77" 2n ust over a decade' the Foods %usiness hasgro!n to a signi&icant si3e !ith over ;77 di&&erentiated products under si$ distinctive %rands'!ith an envia%le distri%ution reach' a rapidly gro!ing market share and a solid marketstanding"

2n ;77;' 2Cs philosophy o& contri%uting to enhancing the competitiveness o& the entirevalue chain &ound yet another e$pression in the *a&ety Matches initiative" 2C no! markets

popular sa&ety matches %rands like ino' Mangaldeep' Aim' Aim Mega and Aim Metro" 2Cs&oray into the marketing o& Agar%attis (incense sticks) in ;776 marked the mani&estation o& its

partnership !ith the cottage sector" 2Cs popular agar%attis %rands include *priha andMangaldeep across a range o& &ragrances like 4ose' Qasmine' Jouuet' *andal!ood' Madhur'*am%rani and =agchampa"

2C introduced #ssen3a @i Wills' an e$clusive range o& &ine &ragrances and %ath > %ody care

products &or men and !omen in Quly ;77" Continuing !ith its tradition o& %ringing !orldclass products to 2ndian consumers the Company launched Fiama @i Wills' a premium rangeo& *hampoos' *ho!er Gels and *oaps in *eptem%er' ,cto%er and @ecem%er ;77respectively" he Company also launched the *uperia range o& *oaps and *hampoos in themass-market segment at select markets in ,cto%er ;77 and Rivel @e Wills > Rivel range o&soaps in Fe%ruary and Rivel range o& shampoos in Qune ;77D"

S8OT .nalysis of ITC

2C is one o& 2ndias %iggest and %est-kno!n private sector companies" 2n &act it is one o& the Worldsmost high pro&ile consumer operations" 2ts %usinesses and %rands are &ocused almost entirely on the2ndian markets' and despite %eing most !ell-kno!n &or its to%acco %rands such as Gold Flake' the

%usiness is no! diversi&ying into ne! FMCG (Fast Moving Consumer Goods) %rands in a num%er o&market sectors - including cigarettes' hotels' paper' agriculture' packaged &oods and con&ectionary'


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%randed apparel' personal care' greetings cards' 2n&ormation echnology' sa&ety matches' incensesticks and stationery"Strengths:

ITC leveraged it traditional %usinesses to develop ne! %rands &or ne! segments" For

e$ample' 2C used its e$perience o& transporting and distri%uting to%acco products to remote

and distant parts o& 2ndia to the advantage o& its FMCG products" 2C master che&s &rom its hotel chain are o&ten asked to develop ne! &ood concepts &or its

FMCG %usiness"

2C is a diversi&ied company trading in a num%er o& %usiness sectors including cigarettes'

hotels' paper' agriculture' packaged &oods and con&ectionary' %randed apparel' personal care'greetings cards' 2n&ormation echnology' sa&ety matches' incense sticks and stationery"

8ea9nesses:

he companys original %usiness !as traded in to%acco" 2C stands &or 2mperial o%acco

Company o& 2ndia /imited" 2t is interesting that a %usiness that is no! so involved in %randingcontinues to use its original name' despite the negative connection o& to%acco !ith poor healthand premature death"

O""ortunities:

Core %rands such as Aashirvaad' Mint-o' JingoX And *un Feast (and others) can %e developed

using strategies o& market development' product development and marketing penetration" 2Cis moving into ne! and emerging sectors including 2n&ormation echnology' supporting

%usiness solutions"

0a*ur:

@a%ur is 2ndias largestAyurvedicmedicine manu&acturer" he @a%ur %egan !ith a small' %utvisionary endeavour %y @r" *" " Jurman' a physician tucked a!ay in Jengal" 1e has set up @a%ur in

5DD to produce and dispense Ayurvedic medicines" 4eaching out to a !ide mass o& people !ho hadno access to proper treatment" @r" *" " Jurmans commitment and ceaseless e&&orts resulted in thecompany gro!ing &rom a &ledgling medicine manu&acturer in a small Calcutta house' to a householdname that at once evokes trust and relia%ility"1is mission !as to provide e&&ective and a&&orda%le cure&or ordinary people in &ar-&lung villages" With missionary 3eal and &ervour' @r" Jurman undertook thetask o& preparing natural cures &or the killer diseases o& those days' like cholera' malaria and

plague"*oon the ne!s o& his medicines traveled' and he came to %e kno!n as the trusted @aktar or@octor !ho came up !ith e&&ective cures" hat is ho! his venture @a%ur got its name - derived &romthe @evanagri rendition o& @aktar Jurman" S;T

@a%urs Ayurvedic *pecialities @ivision has over ;I7 medicines &or treating a range o& ailments and%ody conditions-&rom common cold to chronic paralysis"@a%ur 2nternational' a &ully o!ned su%sidiary

o& @a%ur 2ndia' has sold its stake in 9A# %ased Weik&ield 2nternational on ; Qune ;75;"

S8OT .nalysis of 0a*ur India

Strengths:

*upport &rom leading %usinesses houses &rom a%road"

Financial position o& the company is sound"

4esearch and development &acilities are adeuate &or &urther development o& the products"

Market position is !ell maintained

=iche marketing strategy is doing !ell"

8ea9nesses:

he impact o& @a%ur products is slo! and o& lo! uality and that is to %e improvedH

Production and operating costs are higher and these reduce the pro&its o& the company"
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ayurvedahttp://en.wikipedia.org/wiki/Dabur#cite_note-2http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ayurvedahttp://en.wikipedia.org/wiki/Dabur#cite_note-2


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@a%ur 2ndia:s 4>@ &acilities are comparatively inadeuate and needs improvements"

2n e$perienced sta&& sometimes creating pro%lems and giving !eak per&ormance"

,ld and outdated technologies not helping in production o& more production o& higher uality"

/ack o& innovative approach in the company e$ists"

O""ortunities

2ndian market is very !ide and having great potential &or &urther development"

he kno!ledge o& the company regarding customers and there pro&ile is good"

he availa%ility o& ra! materials and lo! la%our cost is another opportunity"

/ess level o& competition is her%al %ased products

Threats

#$port e$pansion chances are very less"

Competition is slo!ly increasing and &or &urther it !ould %e threat"

1igher in&lation increasing the total costs

in depth analysis on fmcg sector in india

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