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Jan 12, 2016
FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.
Indias personal care industry is composed of hair care, bath products, skin care and cosmetics, and oral care. The sector is driven by rising income, rapid urbanization, and celebrity promotions. This industry accounts for 22% of the countrys fast-moving consumer goods (FMCG), which is the term for Consumer Packaged Goods in India. Foreign direct investment in this sector totaled $691 million in 2014.Hair care is a main category of this industry. A study by Nielsen, a market research firm, determined that shampoo is the most popular FMCG product in India. The $818 million shampoo segment is dominated byHindustan Unilever Ltd., owned by U.K.-based Unilever. Its most popular brands are Sunsilk,Clear, andClinic Plus. Hair oil is another important product, valued at $1.3 billion annually. India-basedMarico's ParachuteandDaburare leaders in the production of branded coconut hair oil.Estimated at $1 billion, the soap and bath category is significant. Soap is a prevalent product found in more than 90% of Indian households. The most common brands include GodrejsCinthol, Reckitt BenckisersDettol, Wipros Santoor, and UnileversLux,Dove,Hamam, andLifebuoy. For men, shaving cream and razors are important personal care items.Procter & GamblesGilletteis the most popular shaving cream and razor brand in India.Within the cosmetics category, Indias most prevalent products are skin creams, lotions, whitening creams, and makeup. Hindustan Unilever has three brands that are popular among Indian womenFair & Lovely,Lakm, and Ponds.Fair & Lovelywas the worlds first skin lightening cream and is the companys leading skin care brand.Colgate PalmolivesCharmismoisturizer is also prominent. The majority of the demand for cosmetics comes from working men and women.LOreal Parisdevelops both skin care and cosmetic products for India. New York-basedRevlonexpanded further to smaller cities in India, generating $40 million in revenues in 2014.The organic skin care category grows at over 20 percent annually and is expected to total $157 million in 2020, according to Azafran Innovacion, an organic skincare group. Large Indian organic skin care companies include Himalaya HerbalsandBiotique. Both specialize in Ayurveda-based products.The oral care category is the smallest category; less than half of Indian consumers utilize western-style products such as toothpaste.Colgate Palmolivedominates more than half of this industry and was named Indias most trusted brand four years in a row by a brand equity survey. Hindustan Unilever is another significant player with toothpaste brandsPepsodent and Close Up.
. Reckitt Benckiser India Ltd (RBIL) is a fully owned subsidiary of Reckitt Benckiser Plc., worlds No.1 Company in household cleaning. Reckitt Benckiser Plc came into being with the merger of Reckitt & Colman Plc with Benckiser NV in 1999. The company has operations in 60 countries, sales in 180 countries and has had net revenues in excess of $5.5 billion. Reckitt Benckiser India Ltd (RBIL) manufactures and markets a wide range of products in Personal care, Pest control, Shoe care, Antiseptics, Surface care, Fabric care and other categories. Amongst its many well-known brands are Dettol, Mortein, Harpic, Cherry Blossom, Lizol, Disprin, Robin powder, Colin, etc. Most of these brands are either number 1 or number 2 in their respective categories in India.RBIL distributes all its products through its common distribution channel, which has a wide and deep reach in the markets and is a key strength of the company. The channel is managed by a wellstructured sales force, responsible for achieving sales for the entire product portfolio of more than 150 Stock Keeping Units (SKUs).
POPULAR PRODUCTSCherry Blossoms, Colin, Itch guard, Dettol, Air wick, Disprine, Finish, Harpic, Lizol, Mortine, Itch guard, Dettol, Air wick, Disprine, Finish, Harpic, Lizol, Mortine, Strepsils, Vanish, Veet.
DETTOL An iconic brand has stood for trusted protection in India since 1933. The brand is endorsed by the Indian Medical Association and has been voted consistently as one of Indias Most Trusted Brands (ORG Marg Brand Equity Survey) since 2002. Today multiple product offerings of the brand Dettol touch the consumers in many more aspects of personal and home care in their daily lives.
Consumers use Dettol in multiple ways and the brand has grown with introductions in synergistic segments like Bar, Soaps, Liquid Hand Wash & Sanitizers. The Dettol Antiseptic Liquid has been a household name for the family mainly used for first aid and personal care uses. Expanding the portfolio we have Dettol soaps, easy to hold and in four variants including Dettol Original, Dettol Fresh, Dettol Cool and Dettol Skincare. Dettol liquid hand wash provides 10 times better protection and Dettol Instant Hand Sanitizer assure us of 99.9% germ kill, rinse free and ideal for the entire family. The brand first started in hospitals 80 years ago, where Dettol Antiseptic Liquid was first used for the cleaning and disinfection of skin during surgical procedures. As a trusted brand by doctors, Dettol was also used to protect mothers from illness after childbirth. Dettol was launched in India in 1933, and ever since has been the gold standard of protection. Dettol has been the trusted partner of health, for millions of mothers across the country, to protect their family by preventing illness and infections.Even today, our brand continues to be one of the most trusted protectors of health ranking among the top 10 Most Trusted Brands in India since the last 10 years.The brand Dettol was launched in India in 1933 in the Antiseptic liquid form as a treatment for cuts and wounds. For almost the first 50 years, Dettol was present only as an antiseptic liquid. Although it was being used in hospitals and nursing homes for first aid and disinfectant uses like cleaning wards, washing linen, etc. Consumers were also using it for bathing, mopping, shaving and other secondary purposes. While it started its journey as the cuts and wounds brand in the country, over the years it had taken over the role of protector from germs in every situation.Usage of the brand gives rise to many emotions in the consumers minds. From making them feel safe and secure about the well-being of their family to making the mother feel that she has done the best for her family, the brand evokes positive imageries and emotions. Thus, it is only fitting that the brands tagline says - Be 100% Sure. Over the years brand Dettol has been extended and has made its presence felt in a number of product categories. While Antiseptic Liquid was the category where the brand was born and where it continues to command a dominant market share of 85%, its revenue growth is significantly driven by its presence in the other product categories of toilet soaps(or bar soaps), Liquid handwash, Body wash, Shaving Cream and Plasters too (see Exhibit 1 for the complete portfolio). Each of these markets are at varying stages of evolution, so while in one market the brand - as the leader - had the responsibility of driving overall market growth, in other markets, the brand strategy had b een to garner share. Fundamental to all the categories was existence/creation of a consumer need for germ protection satiated by Dettols trusted promise.Markets for various categories The Antiseptic liquid marketThe Body wash MarketThe Liquid Handwash MarketThe Bar Soap Market
Complete Range of Products under Brand Dettol
PROMOTIONS/INTEGRATED MARKETING COMMUNICATIONSUsage of the brand gives rise to many emotions in the consumers minds. From making them feel safe and secure about the well-being of their family to making the mother feel that she has done the best for her family, the brand evokes positive imageries and emotions. Thus, it is only fitting that the brands tagline says - Be 100% sure. These are some Seasonal Advertisements that shows how Dettol Enters into customers Minds.Summer Advertisements
BANEGA SWACHH INDIA RB (formerly known as Reckitt Benckiser) has a vision of a world, where people live healthier and live better. The Power Brands - Dettol and Harpic, have stood for hygien