Analysis of FMCG Industry in terms of top 5 players

1. By Team Members:-
Members:-
1. A Sindhuja (12PGP001)
2. Arnab Roy (12PGP008)
3. Bir Bahadur Singh (12PGP014)
4. Komal Billu Kujur (12PGP021)
5. Sathiyasundaram T (12PGP038)
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2. ____ __ABOUT THE SECTOR
• FMCG Quick Turnover and relatively low cost
(soaps , toothbrush, chocolate etc)
• Fourth Largest – US$ 13.1 billion
• Burgeoning population + middle class + rural class = huge market
• MNCs , Unorganized, Organized , Distribution Competition
• Inelastic demand for addictives (constant revenue – ITC )
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3. ____ __ PLAYERS
9/29/2012 Indian Institute of Management Raipur AND MANY MORE….
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4. ____ MARKET SCENARIO
Others,
2%
Market Cap (in Rs.'000Crore)
160
Tobacco,
15% 140
120
100
Personal 80
Food & Care, 20% 60
Beverages
40
,
53% 20
Househol 0
d
Care, 10%
Market Cap (in Rs.'000Crore)
Constituents Segmentation Market Cap Distribution
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5. __ MAJOR PLAYERS
Founded 1932
Head Quarter Mumbai
Chairman Harish Manwani
CEO Nitin Pranjape
Revenue 22,116 crores(2011-2012)
Employees 16,500(2011)
Parent Unilever Plc (52%)
company
Founded 1837
Head quarter Cincinnati,USA
Chairman Robert A. McDonald
CEO Robert A. McDonald
Revenue $82.55 billion (2011-2012)
Employees 129,000(2011)
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6. __ MAJOR PLAYERS
Founded 1867
Head quarter Vevey, Switzerland
Chairman Peter Brabeck-Letmathe
CEO Paul Bulcke
Revenue CHF 83.64 billion
Employees 328,000
Founded 1910
Head Quarter Kolkata
Chairman Yogesh Chander Deveshwar
CEO Yogesh Chander Deveshwar
Revenue US$ 7 billion(2010)
Employees 29,000
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7. __ MAJOR PLAYERS
Founded 1884
Head Quarter Ghaziabad
Chairman Anand Burman
CEO Sunil Duggal
Revenue US$ 1 billion
Employees 3000
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8. __ COMPETITIVE PATTERN
Generic
Form
Pizza
Cakes Industry Brand
Burger
Chips Britannia Bourbon
Home-
Chocolates Parle Milk Biscuits
made food
ITC Marie
Krack-Jack
BISCUITS
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9. ____ SWOT ANALYSIS
STRENGTH:- OPPORTUNITY:-
1. Low Operation Cost. 1. Vast untapped Rural Market.
2. Established Distribution 2. Rising Income Level.
Network. 3. Export Potential
3. Presence of global players.
WEAKNESS:- THREAT:-
1. Low intervention from 1. Tax & Regulatory Structure.
technology.
2. Illegal mimic of the label.
2. No entry barrier so
everyday a new product comes
into the market.
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10. ____ SWOT ANALYSIS
ANALYSIS HUL ITC Nestle Dabur P&G
Strengths *Variety of product *Strong & experienced *Strong Brand. *World’s largest *Strong brand image
*Distribution management *Ability to Ayurvedic medicine *Innovation &R&D
Network *Strong Brand customise Product. provider distribution *Diversified product
*Brand image presence *R&D ability. network portfolio
*Quality *Diversified products *Strong operation *Powerful brand *Strong distribution
management *Excellent R&D facility with diversified ambassadors network
*Innovation and *HR Pool revenues base *Extensive supply *Global operation
R&D
Weakness *No big impact on *Dependent on its *Product recall *Uneven Profitability *No big impact in
rural area tobacco revenue Hampering across different rural area
*Competition from *Hotel industry has not Brand Product lines. *Dependence on
its own brand producing large market and equity *No direct company wall-mart stores for
(lux,Liril) share outlets. majority of its
*No focus on upper *Various products revenue
class population under the same *Over dependence
product line on mature market
*People’s preference of like USA and western
allopathic over countries
Ayurveda. *Quality control
*Low R&D work. problem.
*Lack of Marketing
Strategy.
*Online presence is
9/29/2012 low.
Indian Institute of Management Raipur 10

11. ____ SWOT ANALYSIS (Contd…)
ANALYSIS HUL ITC Nestle Dabur P&G
Opportunity *Huge market *Tap rural market & Transactional to a *Huge Market. *Acquisition
*Increasing per increase penetration in “Nutrition & well *Increasing per capita &resultant value
capita income urban area Being company” Income. generation
Social initiative *Merger and *Booming out focus of *Growing demand of *Growing Indian
*Rural market still acquisition to home eating market health supplements. FMCG market
untapped strengthen the brand *Focus on developing *Rural Market still *Expansion in
*Westernisation of and emerging untapped. developing
life style economies *Various other markets
campaigns in the
support of Ayurveda.
Decrease in Taxation
Threats *Emergence of *Strict govt rule & *Compliance issue *Emergence of Other *Emergence of
other players policies regarding resulting in penalty Players. other players
*Tax and cigarettes payments *Youth’s attraction to *Regulatory
Regulatory *Increasing *Allegation of unethical western life style. environment
structure competition among business activities *Growth in Tobacco *Global economic
*Scepticism about FMCG companies *Macro economic sector where Dabur is condition
MNCs *FDI in retail market factors not present at all. *Increase in the
*Increasing cost of *Increasing Cost of Raw cost of raw
Raw materials Materials. materials
*Over dependency
on technology
infrastructure
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12. ____ BCG ANALYSIS
STATUS HUL ITC Nestle Dabur P&G
Chayawanprash
Axe Ariel
Hajmola
CASH COW Vaseline Cigarettes Ceralac Vicks
Amla
petroleum jelly Tide
Vatika
Lux.
Gillett
Sunsilk.
Real fruit juice. Pantene
Fair & lovely. Paperboards /
Nescafe Active fruit juice. Head and
STAR Ponds packaging.
Maggi noodles Dabur red tooth shoulders
Kissan ketchup. Agri business.
paste Pamper
Surf excel.
Whisper
Annapurna atta.
Milo
Automotive Kitkat/Munch
Rin Furniture Maggi soup Odomos
QUESTION
Pepsodent Financial Neltle butter Sanifresh Olay
MARK
Domex Tobacco Nesvita Oxylife facial
Food Nestle Maggi
Nestle butter
Nestea Dabur gulabari
Wheel.
DOG ITC infotech. Milky bar Burst fruit juice
Sunlight. Wella
9/29/2012 Nestle crunch
Indian Institute of Management Raipur Dabur meswak. 12

13. ____ SUCCESES
• Perfect stores
– Improved availability & visibility
– 16000 perfect stores in 130 towns
• Enhancing livelihoods
– Project Shakti
• Colgate Bright smiles, Bright futures
– Oral Health Educational Program
• ITC e-choupal
– Metamarket setup
• Classmate notebooks
– Re.1 donation
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14. ____ FAILURES
• Moti soap
– Power brand strategy of HUL
– Decrease in premium soap market
• Pond’s toothpaste
– Wrong selection of territory
• Binaca’s acquisition
– No stress on promotion
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15. ____ E-Commerce
Name Status
The time for e-commerce
has not come in India
HUL especially for FMCG
market
P&G
NESTLE
DABUR urveda.com
ITC
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16. _ Marketing Techniques
• Societal marketing
– HUL’s Asha Daan
• Ambush marketing
– Dove’s promotion just before the launch of Pantene
• Viral marketing
– Bingo’s Contest2win
• Green marketing
– ITC Farm forestry
• Buzz marketing
– Maggi guess the taste campaign.
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17. _ Consumer Behavior
• Planning Time
» Very Short
• Buying Decision
» Almost Instant
• Influencing Media
» TV Commercial mostly
• Brand Loyalty
» Not much
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18. _ STP(Major Brands)
Attributes Lifebuoy(HUL) Navy Cut (ITC) Real (Dabur) Tide (P&G) Maggi (Nestle)
Tagline Healthy hoga Made for each other My Real Fruit White hai to Tide Taste bhi health
Hindustan Power hai bhi
USP Lifebuoy provides Priced at the deep Fruit flavored Provides good Can be cooked and
100% better protection discount level health drink whitening and prepared in 2
from germs as fragrance at low minutes
compared to ordinary price
soaps
Segment Personal Care – Soap, Medium priced For all people People who have People looking for
Hand Sanitizer, Hand cigarettes seeking a healthy fixed budget for a healthy snack
fruit based drink
Wash household things when hungry
for regular
occasions, parties like detergents and
look for economical
options
Target All households, to Adult as well as the All age groups Women ages 18 to Young people and
provide a 100% anti- youth smokers. It Lower, middle 54 years old, children from
Group bacterial soap for
extended beyond the
and upper class middle classes upper and middle
SEC A
complete protection people class
category to the SEC B
as well
Positioning Lifebuoy's goal is to Combines smooth A fruit juice made Product which has Tasty and healthy
provide affordable and flavour with 'cool', from real fruits all the qualities snack which can be
accessible hygiene and unique packaging at a required from a prepared in 2
health solutions price that is more detergent-quality, minutes
affordable for today fragrance and low
price
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19. Product Life Cycle for LUX
soap
Product Life Cycle (PLC) of any product
generally has four stages namely
Introduction, growth, maturity and decline
as shown in the figure below.
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20. Different stages of Product
Life Cycle
Introduction stage: -
• Product branding and quality level is established.
• Pricing may be low to penetrate the market
• Distribution is selective until consumers show
acceptance of the product
• Promotion is aimed at early adopters and potential
customers about the product
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21. Different stages of Product
Life Cycle
Growth stage: -
• Product quality is maintained
• Pricing is maintained as the firm enjoys increasing
demand with little competition.
• Distribution channel is added as demand
increases.
• Promotion is aimed at a broader audience
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22. Different stages of Product
Life Cycle
Maturity stage: -
• Product features may be enhanced to differentiate
the product from others.
• Pricing may be lower because of competition.
• Distribution becomes more intensive.
• Promotion emphasizes product differentiation.
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23. Different stages of Product
Life Cycle
Decline stage: -
• Maintain the product possibly by adding some
new features or finding some new uses.
• Harvest the product- reduce the costs and
continue to offer it.
• Discontinuing the product and liquidating
inventory or selling it to other firms who is willing
to continue the product.
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24. Current scenario of Lux
Lux is currently in the decline stage of its life
cycle The reasons for decline of Lux are
• Unilever products are in over 100 countries
and as a result they are exposed to adverse
currency fluctuations.
• Huge competition from other soap brands
• Due to the economic downturn in 2008-09
people started looking for cheaper brands
and sales of Lux declined.
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25. Product Life Cycle for Maggi
Noodles
Introduction: -
• Launched in 1982 by Nestle India
• Created new category in packaged food
market called instant noodles market
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26. Current scenario of Maggi
Maggi is currently in the maturity stage of PLC and it is
facing tough competition from other brands. Following
measures need to be taken to prevent it from going down
to decline stage of PLC
• Change product image
• Change product use
• Change product positioning
• Change product variants
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27. _ New Products
NESTLE ITC
HUL
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28. _ Product Mix
PRODUCT MIX FOR DABUR
SKIN CARE BABY CARE Hair care Oral care Health Care
Dabur
Gulabari Dabur Vatika Dabur
Ayurvedic Dabur Red
SkinCare Shampoo Chyawanprash
Babycare
PRODUCT
LINE
LENGTH Herbal &
Medicated Vatika Hair Oil Babool Dabur Honey
Soaps
Dabur Amla Hair
Promise Dabur Glucose
Oil
Dabur Anmo Meswak Real Fruit Juice
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29. _ Promotion Mix
Personal Sales Direct
Advertising Public Relation
Selling Promotion marketing
ITC Classmate - "Because - Supporting CRY Sunfeast –
you are one of a kind" Discounts (NGO) Billboards
HUL Surf Excel - "Daag Pure it - Door Lux - Gold Lakme fashion Kissan Squeezo
Achey Hain" to Door selling coins week – Billboards
Dabur Fem - Free
Real Active - "Purani - Dabur gulabari Vatika business Real active –
Jeans" with Fem centre Billboards
Nestle Nestle Pure Maggi- Kitkat –
Polo - "A mint with Life drinking "Discount on Meri Maggi Billboards
the hole" water lage packets" Campaign
Pantene -
P&G P&G -"Proud sponsor - Everyday Low Sponsor of Billboards
of mom" pricing Olympics
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30. Distribution Channel
HUL
CARRYING AND FORWARDING AGENTS
REDISTRIBUTION STOCKIST
WHOLESALER
RURAL RETAILER URBAN RETAILER
CUSTOMER
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31. Marketing Plan For Ariel
Introduction: -
Ariel was launched in 1991 by P&G India
The Enzyme technology
Smart Eyes technology
Compact detergent technology
Wide range of fragrances
Variants of Ariel:-
Ariel Front-o-mat
Ariel Fresh Clean
Ariel Oxyblu
Ariel Ultramatic
Ariel Spring Clean
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32. Segmentation of detergent
market in India
Detergent powder
Market
Premium
Mid-Priced Mass Market
Ariel Ultramatic, Spring
Surf Excel Blue, Tide, Ghadi, Wheel, Sunlight,
Clean, Surf Automatic,
Stain Champion Nirma
Quick wash
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33. SWOT Analysis of Ariel
Strength
Opportunity
1> P&G brand name
1> A big untapped rural
2> 1st detergent to market
introduce different fragrances
2> Rs. 5700 crore detergent
3> The use of enzyme market
technology
Weakness
Threat
1> poor promotional 1> Huge competition from
strategy
other brands
2> Low Advertisement recall
2> Spurious/counterfeit
value
products in rural area
3> Improper pricing strategy
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34. Suggestions about new
product launch
Ariel Quick wash: For removing stains
immediately
Ariel Silk: For silk and delicate clothes
Ariel Bar: For competing with Surf Excel bar, Rin
bar etc.
Ariel Smart: For woolen clothes and blazers
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35. Recommendations for market
penetration
Offering lucky draw coupons with a sure prize to be won
inside the pack to attract customers
Creating a strong distribution chain to reach the interior
parts of India
Offering higher incentives to distributors
Roping in Yuvraj Singh and his mother for endorsement
Penetrate to the mass market by introducing low price
variant.
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36. References
• http://www.wikipedia.com/
• http://www.mbaskool.com/
• http://www.hul.co.in/
• http://www.scribd.com/
• http://www.pg.com/en_IN/
• http://www.nestle.in/
• http://www.itcportal.com/
• http://www.dabur.com/default.aspx
• http://www.slideshare.net
• http://articles.economictimes.indiatimes.com
• http://www.itcgreenpapers.com/With_forestry__ITC_has_linked_CSR_to_biz___
Financial_Express_182.aspx?NEWS
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37. THANK
9/29/2012
YOU
Indian Institute of Management Raipur 37