FMCG (Fast Moving Consumer Goods)

An overview
 Also called as CPG – consumer packaged goods.
 FMCG is the 4th largest sector in Indian economy.
 Have low margin but high in volume.
 Examples – cold drinks, soaps, biscuits, noodles, etc.
 Major companies are Nestle, Parle Agro, Britannia, ITC, Hindustan Unilever,
etc.

Market share of major players

Market
Company Share Market Share
HUL 36%
ITC 30%
Nestle 10%
Britannia 6% HUL
Dabur 4.30% ITC
ParleAgro 18% Nestle
Britannia
Dabur
Parle Agro

Three Main segments in the sector:

 Food and Beverages – 19%

 Healthcare 31%
 Household and personal care 50%
 Parlé Agro

Parle Agro Private Limited (also known as Parle Agro) is an Indian company that
owns Frooti, Appy, LMN, Hippo and Bailey brands.

Type : Private limited

Traded as : Unlisted

Industry : Food and Beverage

Founded : 1984

Headquarters : Vile Parle (East), Mumbai, India

Area served : Worldwide

Key people : Prakash Jayantilal Chauhan (Chairman & MD)

Schauna Chauhan (CEO)

Alisha Chauhan (Director)

Nadia Chauhan (Director)

Products : Frooti, Appy, Bailley, Frio Cola, Frio Orange, Frio Lemon,

Dhishoom

Revenue : Increase ₹2,800 crore (US$ 431 million)(2017)

History
Parle Agro is the offshoot of Parle Products which was founded in 1929 in at the time of
British India. It was owned by the Chauhan of Vile Parle, Mumbai. Later it was split into
three seprate companies and owned by different faction of the Chauhan family.

 Parle Products led by Vijay, Sharad, and Raj Chauhan (Parle-G, Melody, Mango Bite,
Poppins, Kismi toffee bar, Monaco and Crack Jack)
 Parle Agro led by Prakash Chauhan and his daughters (Frooti and Appy)
 Parle Bisleri led by Vijay Chauhan.
 Parle Agro commenced operations in 1984. It started with beverages, and later diversified
into bottled water (1993), plastic packaging (1996) and confectionery (2007). Frooti, the first
product rolled out of Parle Agro in 1985, became the largest selling mango drink in India.

SWOT Analysis

Strength
 Parle Brand
 Diversified product range,
 Extensive distribution network
 Low and mid price range
Weakness
 Dependence on retail and grocery
 Stores for displaying diversified Parle
 Depend on Parle-G brand (flagship)

Opportunities
 Estimated annual growth of 20%
 Low per capita consumption
 Diet biscuits
 Increasing demand for sugar free
Threats
 Hike in cost of production
 Increasing distribution cost
 Low consumption of consumers in
economy
 Entry of various new competitors like
Hindustan Uniliver, ITC, etc.

Marketing Mix
Product:

· India’s first fruit drink, available in a tetra pack

· Made from premium mangoes - India’s king fruit.
· Also available in PET bottles - Durable good/ Consumer good.
· Contains vitamin A
· Various categories of FMCG produced Frooti, Appy, LMN, Hippo and Bailey brands
· Tasty and healthy
Available in different quantities.

Price:
· Ranges from 5 to 60 rupees of various products.
· Sizes available based on price and requirements.

Place:

· Highest distributed brand in fruit drink – 85% market share and easily available.
· 10 lakh retail outlets through more than 1500 distributors and retailers – directly or
indirectly
· Best managed supply chain and Highest retail availability – 2002

Promotion:

· Parle Agro is revamping its marketing plan in order to suit the current market scenario.
· New retailing and marketing initiatives taken each year.
· Digen Verma campaign which involve a mysterious character in order to gain attention.
· Parle Agro introduced new characters called Froo and Ti on every bottle.
· Campaigns that target the youth - Say it Sid, Sharukh Khan, Why Grow Up etc.