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FMCGFMCGFAST MOVING CONSUMER GOODS

PRESENTATION BY:PRESENTATION BY:--

AVIJESH JHAAVIJESH JHA

BIKASH AGRAWALBIKASH AGRAWAL

NIRAL JAINNIRAL JAIN

SHASHANK RAWALSHASHANK RAWAL


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ROAD MAP OF THE

PRESENTATION

.INTRODUCTION

.PRODUCT FEATURES.SEGMENT-WISE PRODUCT

.KEY PLAYERS

.SWOT ANALYSIS

.STATISTICAL ANALYSIS

.MARKET OUTLOOK


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o DEFINATION

Fast Moving Consumer Goods (FMCG), also known

as Consumer Packaged Goods (CPG), are products

that have a quick turnover, and relatively low cost.

o India's FMCG sector is the fourth largest sector in the

economy.

o Over 1 lac cr. turnover in India 2009-2010.

INTRODUCTIONINTRODUCTION


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SEGMENT-WISE PRODUCT


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FMCG CATEGORIES AND MAJOR

PLAYERS


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KEY PLAYERS

MAJOR Companies in FMCG Sector

1. Hindustan Unilever Ltd

2. ITC (Indian Tobacco Company)3. Nestl India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. P&G Hygiene and Health Care

10. Marico Industries


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CORPORATE SOCIAL

RESPONSIBILITY

FMCG companies have now started takingCorporate Social Responsibility seriously. Forinstance, to encounter domestic violence,Ponds has tied up with the United NationsDevelopment Fund(UNDF) for Women. SurfExcel is funding the education of children. Mostbrands link themselves with the social causes,thereby linking consumers with the brands andgaining goodwill in the market.


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PROMOTION OF PRODUCT

AWARENESS

In a volume driven and competitively intenseenvironment, FMCG players are aggressively promoting

their brands to gain product awareness, customer base,and their shares of the customers wallets.

Promotions include innovative BTL and ATLadvertisements that sometimes have education andsocial responsibility slants and even extend to highlyorganized distribution networks in rural areas.

In 2009 alone, some FMCG companies scaled up theirpromotion spending to as much as 50% and even 120%.


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SWOT ANALYSIS

STRENGTH

1. Low operating costs

2. Distribution networks

3. Well-known company

WEAKNESS

1. Lower scope of investing in technology.

2. Low exports levels

3.Me-too products


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OPPORTUNITY

1. Untapped rural market

2. Rising income levels

3. Large domestic marketpopulation

THREAT

1. Removal of import restrictions

2. Less amount of cash in rural

SWOT ANALYSISSWOT ANALYSIS


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PARTICULARS 50UNITS(in rupees) 100UNITS(in rupees)

A)FIXED EXPENSES

Building,Rent,Machine

expenses)

B)VARIABLE EXPENSES

1-Material(@RS 25 P/U)

2-Labour(@RS 10 P/U)

2000

1250

500

2000

2500

1000

TOTAL COST 3750 5500

PER UNIT COST=TOTAL COST/NO. OF UNITS

AT 50 UNITS>3750/50=75P/U

AT 100 UNITS>5500/100=55P/U

Economies of scaleEconomies of scale


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Critical operating rules in FMCG sectorCritical operating rules in FMCG sector

1. Heavy launch costs for new products on launch advertisements, free samples

and product promotions.

2. Majority of the product classes require very low investment in fixed assets.

3. Existence of contract manufacturing.

4. Marketing assumes a significant place in the brand-building process.

5. Extensive distribution networks and logistics are key to achieving a high level of

penetration in both the urban and rural markets.

6. Factors like low-entry barriers in terms of low capital investment, fiscal incentivesfrom government and low brand awareness in rural areas have led to mushrooming

of the unorganised sector.

7. Providing good price points is the key to success.


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RURAL & URBAN

POTENTIAL

Particulars Urban Rural

Population 2001-02 (million household) 53 135

Population 2009-10 (million household) 59 153Per cent distribution (2009-10) 28 72

Market (towns/villages) 3,768 627,000

Source: Statistical Outline of India, NCAER


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MARKET OUTLOOKMARKET OUTLOOK


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REFERENCES :REFERENCES :--

1.Management accounting

by R.K.Gupta

2.www.ibiparters.com

3.www.angelreasearch.com


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Final Fmcg 27

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