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Fast Moving Consumer GoodsFast Moving Consumer Goods

(FMCG) Sector(FMCG) Sector

RichaRicha SrivastavaSrivastavaHR + IBHR + IB

Roll No. 14Roll No. 14

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OBJECTIVESOBJECTIVES

To study current trends in theTo study current trends in thesectors of study.sectors of study.

Product Portfolio of the companies.Product Portfolio of the companies.To study the marketing strategiesTo study the marketing strategies

of the companies.of the companies.SWOT Analysis.SWOT Analysis.

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Companies TakenCompanies Taken

ITCITCHULHULNestleNestle

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: Hindustan Unilever Limited: Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) isHindustan Unilever Limited (HUL) isIndia's largest Fast Moving ConsumerIndia's largest Fast Moving Consumer

Goods CompanyGoods Company Current Capitalization: 49033Current Capitalization: 49033 crorescrores Number of Employees: 15000 EmployeesNumber of Employees: 15000 Employees

Current Annual Turnover: Rs.20, 239Current Annual Turnover: Rs.20, 239crorescrores (for the 15 month period(for the 15 month period JanuaryJanuary1, 2008 to March 31, 2009).1, 2008 to March 31, 2009).

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Product ProfileProduct Profile

Foods

Home careHome care

Personal carePersonal care

HULs brandsHULs brands ---- like Lifebuoy,like Lifebuoy, LuxLux, Surf Excel,, Surf Excel, RinRin, Wheel,, Wheel,Fair & Lovely,Fair & Lovely, SunsilkSunsilk, Clinic, Close, Clinic, Close--up,up, Pepsodent Pepsodent,,LakmeLakme, Brooke Bond,, Brooke Bond, KissanKissan,, KnorrKnorr, Annapurna,, Annapurna, KwalityKwality--

Walls .Walls .

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Marketing StrategyMarketing Strategy

Unilever is committed to providingUnilever is committed to providingbranded products and services whichbranded products and services which

consistently offer value in terms of priceconsistently offer value in terms of priceand quality, and which are safe for theirand quality, and which are safe for theirintended use.intended use.

Products and services will be accuratelyProducts and services will be accuratelyand properlyand properly labelledlabelled, advertised and, advertised andcommunicated.communicated.

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ITC LtdITC Ltd

About Company About Company

Current Capitalization: US $ 22 billionCurrent Capitalization: US $ 22 billion

Number of Employees: 21,000rNumber of Employees: 21,000r Current Annual Turnover: US $ 5 billionCurrent Annual Turnover: US $ 5 billion ITC is rated among the World's Best BigITC is rated among the World's Best Big

Companies, Asia's 'Companies, Asia's 'FabFab 50' and the World's50' and the World'sMost Reputable Companies by ForbesMost Reputable Companies by Forbesmagazinemagazine

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About Product About Product PorfolioPorfolio::

ProductsProducts

CigarettesCigarettes

Wills,Insignia,

India Kings, Gold Flake,Wills,

Insignia,

India Kings, Gold Flake,Navy Cut, Scissors, Capstan, Berkeley,Navy Cut, Scissors, Capstan, Berkeley,

Bristol and FlakeBristol and Flake

FoodsFoods

Confectionery, Staples and Snack FoodsConfectionery, Staples and Snack Foodssegmentssegments

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Marketing StrategiesMarketing Strategies

Product strategies: ITC reworkingProduct strategies: ITC reworkingstrategies for Kitchens of India products tostrategies for Kitchens of India products to

target mainstream consumers ITC Ltd,target mainstream consumers ITC Ltd,which forayed into the branded &which forayed into the branded &packaged foods business.packaged foods business.

Export Marketing Strategies:Export Marketing Strategies:

Significant export opportunities for highSignificant export opportunities for highquality Indian manufacturers.quality Indian manufacturers.

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Nestle India LimitedNestle India Limited

Current Capitalization:

Current Capitalization:

Rs. 187 billionRs. 187 billion

Number of Employees:Number of Employees: 2830028300

Current Annual turnover:

Current Annual turnover:

2.652.65billion eurobillion euro

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Product PortfolioProduct Portfolio

Nestlé India manufactures products of Nestlé India manufactures products of truly international quality undertruly international quality under

internationally famous brand names suchinternationally famous brand names suchas NESCAFÉ, MAGGI, MILKYBAR, MILO,as NESCAFÉ, MAGGI, MILKYBAR, MILO,KIT KAT, BARKIT KAT, BAR--ONE, MILKMAID andONE, MILKMAID andNESTEA.NESTEA.

NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉNESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉFresh 'n' NaturalFresh 'n' Natural DahiDahi and NESTLÉand NESTLÉ JeeraJeeraRaitaRaita..

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Marketing StrategyMarketing Strategy

FMCG major Nestle India, having catapultedFMCG major Nestle India, having catapultedits business with the launch of its probityits business with the launch of its probity

range of frozen dairy products, is now all set range of frozen dairy products, is now all set to grow its coffee business.to grow its coffee business.

While coffee chains such as Café Coffee DayWhile coffee chains such as Café Coffee Dayand Barista target the upper middle classand Barista target the upper middle classyouth segment, Nestle India through itsyouth segment, Nestle India through its Cafés Cafés is going all out to woo the masses.is going all out to woo the masses.

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SWOT AnalysisSWOT Analysis

Strengths:Strengths:

Low operational costsLow operational costs

Presence of established distributionPresence of established distributionnetworks in both urban and rural areasnetworks in both urban and rural areas Presence of wellPresence of well--known brands in FMCGknown brands in FMCG

sectorsector

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Weaknesses:Weaknesses:

Lower scope of investing in technologyLower scope of investing in technology

and achieving economies of scale,and achieving economies of scale,especially in small sectorsespecially in small sectors Low exports levelsLow exports levels

"Me"Me--tootoo products, which illegally mimic products, which illegally mimicthe labels of the established brands.the labels of the established brands.These products narrow the scope of FMCGThese products narrow the scope of FMCGproducts in rural and semiproducts in rural and semi--urban market.urban market.

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Opportunities:Opportunities: Untapped rural market Untapped rural market Rising income levels, i.e. increase inRising income levels, i.e. increase in

purchasing power of consumerspurchasing power of consumers Large domestic market Large domestic market-- a population of a population of

over one billion.over one billion.

Export potentialExport potential High consumer goods spendingHigh consumer goods spending

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ThreatsThreats::

Removal of import restrictions resulting inRemoval of import restrictions resulting in

replacing of domestic brandsreplacing of domestic brands Slowdown in rural demandSlowdown in rural demand Tax and regulatory structureTax and regulatory structure

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LearningLearning

The industry has register a 15% growth in Q3The industry has register a 15% growth in Q320082008--09 as compared to the corresponding09 as compared to the correspondingperiod last year.period last year.

This has been also aided by the lack of This has been also aided by the lack of competition in the respective categories.competition in the respective categories.

Market share movements indicate that Market share movements indicate that

companies such as Marico Ltd and Nestle Indiacompanies such as Marico Ltd and Nestle IndiaLtd, with domination in their key categories,Ltd, with domination in their key categories,have improved their market shares.have improved their market shares.

Good growth overall could be seenGood growth overall could be seen in future.in future.

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THANK Y OUTHANK Y OU

Rich A

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