Fast moving consumer goods sector

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

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