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By 2000, volumes & margins either shrank or stagnated During 2006, Consumers willingness to upgrade to better, value added products helped FMCG.
What is FMCG ?
Also known as Consumer Packaged Goods (CPG) Products with quick turnover &relatively low cost Less thinking by consumers Absolute profit made on FMCG products is relatively small but they sell in large quantity & earn large profits. Durable Products; E.g. Soaps, Cosmetics, teeth cleaning products, shaving products etc. Non-Durable Products; E.g. Glassware's, bulbs, batteries, plastic goods etc.
Household Care
e.g. laundry soaps, mosquito repellents, dish cleaners etc.
Personal Care
e.g. oral care, hair care, skin care, cosmetics, deodorants, perfumes etc.
Why INDIA?
1. Large Domestic Market:-
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3. 4. 5. 6.
Large Consumer Goods Spender:Low Penetration & Low per Capita consumption :Changing Lifestyles:Retailing New growth area Demand & Supply Gap
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Leveraging The Cost Advantage:e.g. P & G outsourced Vicks Vaporub to Australia, Japan etc. from Hyderabad
Domestic Players
1. 2. Britannia India Ltd. (BIL) Dabur India Ltd.
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4. 5.
Foreign Players
1. Cadbury India Ltd. (CIL)
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3. 4. 5. 6.
Cargill
Coca-Cola Colgate Palmolive India H.J. Heinz Co. Hindustan Lever Ltd. (HLL)
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FMCG
Product Driven Maximize value of transaction Large target market Single-step Buying process, shorter sales cycle Emotional buying decision based on status, desire or price
Market Segmentation
Geographic Demographic Social and Economic Behavioral
Geographical
Zone region- nearest zone will be targeted first Villages and town- helps to analyze marketing strategy Density Climate
Demographic
Age- children or adult Gender-male or female
Socio-Economic
Income group- high, medium or low Social and Economic- Education (illiterate, literate , highly literate), social class
Behavioral
Occasions ( Diwali, Deshehra, Eid) Brand loyalty (rural area people are more brand loyal)
Marketing Strategy
Direct on-screen marketing (e.g. Harpic) Power brand strategy (Include those brand that have maximum pulling power and growth e.g. lifebuoy soap) Power brand extension (e.g. lifebuoy talcum powder) Exit from non power brand Using India as a brand
1. 2. 3. 4.
Small size packet strategy Pricing strategy Mark up Go- deterring (e.g. bingo chips) Competitor based Product bundling Same value, size increase Same value, size decrease (e.g. society tea)
Target market
Differs from product to product examples: 1. Mc Donald's Youth 2. Vim bar - Housewives 3. Pepsodent Kids 4. Kellogg's Previously kids now adults too 5. Sugar free Age group of 35 and more
Advertisement
Huge investment on advertisement Frequent broadcast Specially during peak hours During live matches During popular TV shows Target TV channels ( M TV, V TV) Through banners, posters, trial packs, events, hoardings, radio etc. Based on Market Research
Why advertisement?
As a reminder To inform about our product To show the success of brand To attract the customers To hamper the unsecured mind of consumer (e.g. saffola,dettol) To arise the need purposely To attach consumer emotionally with product To show facts and figures of products
Message delivery
Surf excel for washing machine Vim bar gel Gillette razor Bingo chips Happy dent chewing gum Bourn vita, Horlicks Pepsodent, Colgate Pepsi, sprite, coca-cola
Packaging
Attractive packs Vibrant colors Pack will show the important feature of product Protective packaging( bru coffee) Size wise packing (Navratna oil and Colgate) According to segmentation of Market Packaging should be enhanced time by time Affordable packs ( coca cola 200 ml).