Characteristics of FMCG

 Products with quick turnover and relatively low cost

 Absolute Profit is relatively small

 High Demand

 Low Involvement on Consumer’s part

 Easily substitutable or replaceable

 Profits driven by Sales Volume

 Success Of FMCG

Good
High Sales High
Marketing
Profit
Strategy
 Driving Factors for success of a
FMCG

• Political, Economical, Social and Technical

• SWOT
 SWOT Analysis

Strengths Weakness

Low operational costs Lower scope of investing in technology

Established distribution networks in and achieving
both urban and economies of scale.
rural areas. Low exports levels
Presence of well-known brands in Counterfeit Products
FMCG sector

Opportunities SWOT Threats

Untapped rural market Removal of import restrictions
Rising income levels Slowdown in rural demand
Large domestic market-.
Tax and regulatory structure
Export potential
High consumer goods spending
TOP FMCG Companies in India
 Need for a Unique Marketing
Strategies

• Complex Market

• Emergence of more players

• Regulations

• Need to maintain or capture market share

• Need to differentiate from other competitors

 Various Differentiation Strategies

• Differentiation based on ingredients

• Differentiation by packaging

• Differentiation by non price competition

• Differentiation based on promotion

• Differentiation based on Opportunities in the External

Environment