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Britannia Summer Training Project

Britannia Summer Training Project

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Published by abhinav pandey

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Published by: abhinav pandey on Oct 08, 2010
Copyright:Attribution Non-commercial


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An IntroductiontoFMCG Industry
Industry Profile
Fast Moving Consumer GoodsFMCG Industry :
FMCG are products that have a quick shelf turnover, at relatively low costand don't require a lot of thought, time and financial investment topurchase
‘Fast Moving’ is in opposition to consumer durables such as kitchenappliances that are generally replaced less than once a year.
 Three of the largest and best known examples of Fast MovingConsumer Goods companies are Nestlé, Unilever and Procter &Gamble.
 The Indian FMCG sector is an important contributor to the country'sGDP. It is the fourth largest sector in the economy and is responsiblefor 5% of the total factory employment in India .
 This has been due to liberalization, urbanization, increase in thedisposable incomes and altered lifestyle.
. The lower-middle income group accounts for over 60% of thesector's sales. Rural markets account for 56% of the total domesticFMCG demand.
FMCG – Evolution :
1950’s-80’s – Low Investment in the sector
Low purchasing power
Govt’s emphasis on small scale sector
HLL and other company’s urbane focus
Post liberalization
Entry of MNCs
Focus shifted to getting to rural consumer first
Others, like Nestle, remained with the urban population
Latest fad to hit the market is the ‘sachet’ bug.
Mushrooming of regional brands
Nirma enters and changes the focus to ‘Value for Money’ in the70’s
Post liberalization, Jyothi Laboratories, ‘Ghari’ Detergent and‘Anchor’ toothpaste giving the nation-wide brands a run for theirmoney.
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumerpackaged goods. Items in this category include all consumables (other thangroceries/pulses) people buy at regular intervals. The most common in the listare toilet soaps, detergents, shampoos, toothpaste, shaving products, shoepolish, packaged foodstuff, household accessories and extends to certainelectronic goods. These items are meant for daily of frequent consumption andhaveahighreturn. .A major portion of the monthly budget of each household is reserved for FMCGproducts. The volume of money circulated in the economy against FMCGproducts is very high.

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