Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.

New product launching strategies of fmcg companies

84.819 visualizaciones

Publicado el

This presentation all about strategies follows by the companies, in launching new products.

Publicado en: Educación, Empresariales

New product launching strategies of fmcg companies

  1. 1. New Product Launching Strategies of FMCG’s Companies Ayush Singh BBM – 5th Sem. 117509
  2. 2. FMCG  Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost.  Examples include non-durable goods such as soft drinks, toiletries, and grocery items.  Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial.
  3. 3. Introduction  The success of an FMCG depends greatly on its marketing strategy.  Typically a marketer pursues a wide combination of strategies.  For instance when prices are competitive the company would use an extensive distribution network, design suitable advertising and sales promotion schemes for time to time.
  4. 4. Top 10 FMCG’s Companies In INDIA: Market Capitalization  ITC Ltd  HUL  Nestle (INDIA)  256,769 crores  127,144 crores  Godrej Consumer Products Ltd  49,768 crores  Dabur India Ltd  28,107 crores  GlaxoSmithKline Consumer Healthcare  27,261 crores  Colgate Palmolive  18,329 crores  Marico Ltd  13,137 crores  Emami  Procter & Gamble (India)  23,435 crores  10,788 crores  9,555 crores
  5. 5. Top 10 FMCG’s Companies In World:  Nestle  Market Value: $233.5 B  Procter & Gamble  Market Value: $208.5 B  Coca-Cola  Market Value: $173.1 B  Anheuser-Busch InBev  Market Value: $153.5 B  Philips Morris International  Market Value: $150.6 B  Unilever  Market Value: $122.3 B  PepsiCo  Market Value: $118.9 B  British American Tobacco  Market Value: $102 B  Reckitt Benckiser Group  Market Value: $51.2 B  General Mills  Market Value: $29.9 B
  6. 6. 1.Multibrand Strategy  Marketing of  two  or  more  and competing products by the same firm. similar   A  company  often  nurtures  a  number  of  brands  in  the  same category. There are various motives for doing this.  The  main  rationale  behind  this  strategy  is  to  capture  as  much of the market share as possible by trying to cover  as  many  segments  as  possible,  as  it  is  not  possible  for  one brand to cater to the entire market.  This  also  enables  the  company  to  lock  up  more  distributer shelf space.  Example  :  Hindustan  Lever  .  It  has  Dove  in  the  ultra  premium  segment,  Lifebuoy for  the  economy  segment  and  brands  like  Rexona, Liril, Lux, Le Sancy for  the  intervening segment.
  7. 7. 2.Product Flanking  Refers to the introduction of different combinations of  products at different prices, to cover as many market  segments as possible.  It  is  basically  offering  the  same  product  in  different  sizes  and  price  combinations  to  tap  diverse  market  opportunities.  The  idea  behind  this  concept  is  to  flank  the  core  product  by  offering  different  variations  of  size  and  price  so  that  the  consumer  finds  some  brand  to  choose from.  Example:  Vicks  the  cough  and  cold  relieving  medicine  is  now  available  in  small  containers  and  also as inhalers, cough drops and cough syrups.
  8. 8. 3.Brand Extensions  Companies  make  brand  extensions  in  the  hope  that  the  extensions  will  be  able  to  ride  on  the  equity  of  successful  brands, and that the new brand  will stand in its own right in  the course of time.  A  well  respected  brand  name  gives  the  new  product  instant  recognition and easier acceptance.  It enables the company to enter new product categories more  easily.  Example:  Amul. With  the  success  of  its  first  product,  Amul milk powder,  the  company  came  out  with  Amul ghee, Amul butter, Amul cheese, Cheese spread, and finally added Amul chocolates to its portfolio.
  9. 9. 4.Building Product Lines  Some  companies  add  related  new  product  lines  to  give  the  consumer  all  the  products  he/she  would  like  to  buy  under one umbrella.  Example: Britannia has adopted a similar strategy. It has  introduced different kinds of biscuits and backed foods in  the  past  few  years.  By  adding  a  number  of  flavours  in  each product line the company grew in the industry.
  10. 10. 5.New Product Development  A  company  can  add  new  products  through  the  acquisition  of  other  companies  or  by  devoting  one’s  own efforts on new product development.   With the help of new products a company can enter a  growing  market  for  the  first  time,  and  supplement  its  existing product lines.  Example:  Dove  by  HLL  is  an  example  of  creating  an  entirely  new  premium  segment.  For  the  first  time  in  India,  a  soap  with  One-fourth  moisturiser  was  offered  to the consumer.  It has been positioned for the super premium segment  as a skin care product not as a soap.
  11. 11. 6.Innovations in Core Products  In the FMCG market, the life of a product is short.  Marketers continually try to introduce new brands to offer something new and meet the changing requirements of customer.  It is prudent for a marketer to innovate from time to time both by technological expertise as well as from the consumer’s or dealer’s feedback.  Such innovations are tried out around the core products of a company.
  12. 12. 7.Long term outlook  Many companies adopt a long term outlook towards growth in an FMCG market. In the process, short term gains which might adversely affect the long term prospects of the company are sacrificed.  Example: Kellogg’s in Mexico.  The concept of cornflakes for breakfast promoted by Kellogg’s is entirely American in nature and in Mexico which is culturally so different from America, could not accept.  Kellogg’s with its long term outlook took 28 years before finally breaking even. Today is the market leader in the breakfast cereals market, enjoying an unparalleled monopoly.
  13. 13. 8.Extending the PLC  Economic conditions change, competitors launch new assaults, and the products encounters new types of buyers and new requirements are situations in which a FMCG company try to extend the PLC.  In the mature stage of the PLC, some companies abandon their weaker products. They prefer to concentrate their resources on their more profitable products and quickly develop new products.  Example: Existing models in products like automobiles, motorcycles, watches and cameras in India have experienced a good demand whenever new options were offered.
  14. 14. 9.Expanding markets by usage  A company usually expands the market for its brand in two ways, either to increase the number of customers or by encouraging more consumption per intake.  The usage rate of the consumers can be increased in 3 ways : 1) It may try to educate or persuade customers to use the product more frequently. 2) The Company can try to induce users to consume more of the product on each occasion. 3) The company can try to discover new product uses and convince customers to use the product in more varied ways.
  15. 15. 10.Wide distribution network  A very simple way of increasing FMCG company’s market share is by developing a strong distribution network, preferably in terms of more locations.  An extensive distribution system can be developed over time, or the company many acquire another company which has an extensive distribution network.  Example: Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good distribution network.
  16. 16. 11.Monitoring the pulse of the consumers  Companies spend considerable effort to find out the what, where, how and when of their consumers.  Well known companies frequently undertake marketing research to find out more about their consumers and how to satisfy their needs and wants in a better manner.  It helps them to monitor the pulse of their buyers.  Example: We may cite here the famous Marketing Research about instant coffee.
  17. 17. 12.Advertising and Media coverage  Advertising is required to build awareness about an FMCG or brand which is available in the market but not many people might know about it.  Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand.  Persuasive advertising becomes important in the competitive stage where the objective is to build a selective demand for a particular brand.  Reminder advertising is quite common with mature products.  Example: Expensive four colour Coca-Cola ads in magazines tries to remind people to purchase it.
  18. 18. 13.Sales promotion  Sales promotions offer a direct incentive to buy more in the short term.  They are designed to stimulate quicker and/or greater purchase of particular products by consumers or the trade.  Example : Pepsi has been doing a large amount of promotions since the time it entered India. Pepsi cassettes and T-shirts have been offered to young people all over the country.