1 A PROJECT REPORT ON “TREND ANALYSIS IN FMCG” {EMAMI LIMITED JABALPUR} For the partial fulfillment of the requirement of Master of Business Administration Semester IV Guided by Submitted by Submitted to Rani Durgavati Vishwavidyalaya ,JabalpurTABLE OF CONTENTS Page NO.
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practice work of the degree of master of business Administration Semester IV from
Rani Durgawati Vishwavidyalaya, Jabalpur for the year 2010.
It has been duly completed as record of bonafide work in practice of marketing
of Shri Ram Institute of Science And Technology Jabalpur This report has beencompleted by Yogesh under my guidance.
Name of faculty
CHAPTER I
EXECUTIVE SUMMARY
This study aims at the various programs being run by a FMCG company for their wholesalers and retailers and how these programs benefit the wholesalers and
retailers and setting up a benchmark for other FMCG companies to follow. Thus,
analyzing the market trend of FMCG
Initially the data was collected on the raw hand from various shops in the region so
as to compare the benefits associated with the ongoing programs but the major
support came in when the distributors who take care of the supply of products and
goods to the wholesalers and retailers were approached.
With this data which was collected from the distributors the detailed analysis of
various FMCG companies program was done and then the comparative analysiswas done using this data which was in detail.
On the basis of this collection few suggestions were sought to the company which
we were working for.
CHAPTER II
INTRODUCTION
Today, in order to survive, every business will have to be organized with
information and knowledge and be customer – focused, market driven, global inscope, well networked and flexible in its ability to deliver value to its customers.The ever growing economyOf India has given market a new look and everywhere the latest trends in consumer goods can be witnessed. The increasing market demand especially in metros, hasgiven customers many options in form of products available and had lead to
development of different channels by FMCG companies for selling their goods toconsumer.
Research project was conducted for Emami. The project involves the Analysis of the exclusive shops of Emami and for other FMCG companies tapping market andincreasing brand awareness among the consumers through this channel, thencomparison of our program with the program offered by other FMCG companies inthe market also to find the various margins and benefits given by the competitorson their products in these channel. The prime objective of these projects is toincrease market coverage, maximize sale and to increase point of contact inaddition to it, I also analyzed the promotional tools which can make the purchaseof a consumer more exciting, keeping the cost intact at each outlets under my area.
OVERVIEW OF FMCG INDUSTRY:
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
A major portion of the monthly budget of each household is reserved for FMCG
products. The volume of money circulated in the economy against FMCG products
is very high, as the number of products the consumer use is very high. Competitionin the FMCG sector is very high resulting in high pressure on margins.
FMCG companies maintain intense distribution network. Companies spend a large
portion of their budget on maintaining distribution networks. New entrants who
wish to bring their products in the national level need to invest huge sums of
money on promoting brands. Manufacturing can be outsourced. A recent
phenomenon in the sector was entry of multinationals and cheaper imports. Also
the market is more pressurized with presence of local players in rural areas andstate brands.
INDUSTRY SEGMENTS: The Indian FMCG market being the fourth largestsector in the economy, account for 4 million jobs in downstream activities. Themain segments of this sector are:
Personal Care:
Oral care, Hair care; Skin care, Personal wash (soaps), Cosmetics and Toiletries;Deodorants & Perfumes, Paper products (tissues, diapers, sanitary) and Shoe care.
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largestsector in the economy. A well-established distribution network, intense
competition between the organized and unorganized segments characterizes the
sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate
into an annual growth of 10% over a 5-year period. It has been estimated that
FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores
in 2010. Hair care, household care, male grooming, female hygiene, and the
chocolates and confectionery categories are estimated to be the fastest growing
segments, says an HSBC report. Though the sector witnessed a slower growth in
2002-2004, it has been able to make a fine recovery since then.
Top Ten Players in FMCG Sector:
COMPANY PROFILE:
One of the most attractiveIndian ayurveda proxies in aworld moving rapidly towardsnatural remedies
• Flagship company of the Emami Group promoted by Kolkata-basedindustrialists Mr. R.S. Agarwal and Mr. R.S. Goenka
• Board of Directors comprises of six independent Directors including eminent personalities likeMr. Viren J. Shah (Former Governor of West Bengal),Mr. K. N. Memani (Former Chairman and Country Managing Director of Ernst & Young, India),Padmashree Award winner Vaidya Suresh Chaturvedi,Mr. S. N. Jalan, Attorney andIndustrialists Mr. S. K. Todi and Mr. K. K. Khemka.
• Inducted professionals at various levels like Mr. N.Venkat (CEO) and Mr. Naresh Bhansali (CFO)
• Manufacturer of health, beauty and personal care products for over 30 years• Kolkata-headquartered; manufacturing plants in Kolkata, Guwahati and
• Manufacturing facilities with ISO 9001:2000 certifications and cGMPcompliance
MILESTONES ACHIEVED:
“Every month, over 70 Million consumer packs from Emami reach approximately130 Million consumers in about 23 Million households,
Network of over 2800 distributors, Direct coverage of over 4 lacs retail outlets,Products available across 2.6 million outlets in India, Five sales channels dividedinto rural and urban sales territories”
Emami's focus on sustainable profitable growth is manifest through itsconsistent financial performance
One of the most prominent Indian ayurveda product companies withrevenues of Rs. 5,837 mn (2008-9)
Prominent wealth creator with a market capitalization of Rs. 18.6 bn
One of the fastest growing as well; 13% topline and 41% bottomline growthin 2008-9. Three year CAGR growth is 25% and 46% respectively
The Company's shares are compulsory traded in dematerialized form and are
available on both the Depositories in India National Securities Depository Ltd
(NSDL) and Central Depository Services (India) Limited (CDSL). Under the
Depository System, the International Securities Identification Number (ISIN)
The project involves the analysis of the distribution system of Marico and various programs offered by them to tap market, then comparison of these programs withthe programs offered by main competitor in the market also to find the variousmargins and benefits given by the competitors on their products in these programs.The prime objective of these projects is to increase market coverage, maximize saleand to increase point of contact at each outlet.
SUMMARY OF RESEARCH METHODOLOGY:
Research Approach SurveySource Primary Data and Secondary
Data
Collection Method Direct Observations, PersonalInterview.
Most of the outlets i.e. 40% said that they are mostly satisfied with the co-
operation by the sales person of Emami ltd., 31% are highly satisfied,11% saidthey are neither satisfied nor unsatisfied, 12% are unsatisfied with the co-operation
Emami ltd. Is performing very good in the field of trading FMCG products,
there existing a good relationship with employees as well as the customers andretailers,the management is taking keen interest for finding their weakness and try
Some of the retailers were hesitant in giving the adequate information.
The major setback was in terms of data collected for COLGATE as theshopkeepers were not aware of the programs totally and distributor was notready to give out all the information.
Unavailability of the right contact - Many a times the right contact personswere not present, in that case follow up was done 2-3 times.
Few of the retail owners were very reluctant to provide information on
Margins, Rates of Displays, Schemes offered by competitors, conditionsimposed by competitors on such Schemes & Displays.
There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions.
Since the study involves sampling method, Drop – in or ‘Go Through’ error might have crept in.
Since the results have been drawn on the basis of the information provided by the respondents, chance of response error might have crept.
Due to the busy schedule of distributors, the frequency of meetingdistributors was very low.