ASSIGNMENT OF STRATEGIC ANALYSIS OF MARKETING EFFORTS

WITH REFERENCE TO FMCG INDUSTRY

MARKETING MANAGEMENT II
BATCH 2019-2021
SECTION B
TEAM 1
Submitted To:
Dr. Sudhir Rana

Submitted from:
HimanshuBaisla 19PGDM070
MayankSethi 19PGDM080
Priya Garg 19PGDM098
Ria Gupta 19PGDM102
Sourav Barman 19PGDM110
Vinayak Sharma 19PGDM120
FORTUNE INSTITUTE OF INTERNATIONAL BUSINESS, NEW DELHI
 TABLE OF CONTENTS
TOPIC PAGE NO.
1. Introduction of FMCG Industry 1-2
2-8
2. Product Offerings of all the companies in FMCG
Industry

3. Pricing Strategies in FMCG Industry 8-12

12-17
4. Promotional Strategies in FMCG Industry

5. Strategy behind choosing the place in the Industry 17-18

6. Customer Response on the FMCG Industry 19

7. Contribution of Marketing Practices in FMCG 20-21
Industry
8. Conclusion 22
Introduction of FMCG Industry
The Fast Moving Consumer Goods abbreviated as The FMCGindustry deals
mainly in producing, distributing and marketing of packaged goods. These
products are the ones that are consumed at regular intervals. Some of the examples
are food, health and personal care, medicines, paper and stationery items,
household goods etc. The industry has vast operations and offers innumerable job
opportunities in sales, inventory management, finance, marketing, HR, product
development etc.

The FMCG industry is India is the fourth largest sector in the countryhaving a total
market size of over USD 15 billion as in 2007as stated by ASSOCHAM. It is
classified as popular and premium segments. The premium segment targets mostly
the higher and upper middle-income consumers.The popular segment mainly caters
to the consumers who belong to semi-urban and rural areas who who are not much
brand conscious. The market growth over the past 5 years has been
significantbecause of growing disposable income of consumers which has a direct
linkage to an increase in the demand for FMCG goods/services. Indeed,it is widely
recognized that the youth population in the rural and semi-urban regions is
contributing in driving the demand growth because of their continuously increasing
disposable income, lifestyle, food habits etc. On the other side the wide availability
of raw materials, agricultural products, low wagedlabour and increase in retails
have indeed helped the competitiveness among players.

The FMCG sector plays a crucial role in the Indian economy. It has got a strong
and wide involvement of MNC and is known for its well-established distribution
channels, intensified competition among the organized &unorganized segments
and for its low cost of operations. FMCG companies have comparative advantages
over availability of raw materials, cheap yet efficient labour etc. FMCG companies
most get involved in brand positioning to establish and put forward their products
in the market. In the recent times, there has been a lot of inflationary pressure and
hikes in prices. But, the FMCG companies still continues to enhance their
momentum of growth by creating product diversification and getting new variants
introduced to the existing products. This sector hasexperienced significant FDI
inflows of USD 14.7 billion during the period of April 2000 to March 2019. Some

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recent developments of the FMCG sector in India are thatPatanjali will be spend
USD 743.7 million in numerous food parks in the states of Madhya Pradesh,
Andhra Pradesh, Uttar Pradesh, Assam and Maharashtra. Also, Dabur has planned
to make a significant investment of USD 38.79 to USD 46.55 million in the
financial year 2019 to expand their capacity and also has plans of acquisitions in
the domestic market.
[ CITATION Ind18 \l 16393 ]

Total No. of Companies in FMCG Industry:

There are huge number of companies in FMCG Industry but we have selected all
the listed companies with a sales turnover of more than ₹2500Cr.
Companies Sales Turnover
Nestle ₹91,187 Cr.
Procter and Gamble ₹64,553 Cr.
PepsiCo ₹63525 Cr.
ITC ₹52035 Cr.
HUL ₹38224 Cr.
Coca-Cola ₹35410 Cr.
Phillip Morris ₹28748 Cr.
Reckitt Benckiser ₹14816 Cr.
Dabur ₹6273 Cr.
Parle Agro ₹2800 Cr.

[ CITATION For18 \l 16393 ]

Product Offerings of all the Companies in FMCG Industry Globally:

1. Nestle:

Baby Foods Cerelac, Gerber, NaturNes

Bottled Water Nestle Pure Life, Perrier, Poland Spring
Cereals Chherios, Lion, Nesquik Cereal
Chocolate and Aero, Cailler, Kitkat, Milkybar, Quality Street,
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 Confectionery Toll House

Coffee Nescafe, Nespresso

Culinary, Chilled Maggi, Herta, Buitoni
and Frozen Food
Dairy Carnation, Coffee-Mate
Drinks Milo, Nestea
Healthcare Boost, Nutren junior, Peptamen
Nutrition
Ice-Cream Haagen-Dazs, Extreme
Petcare Alpo, Cat Chow, Fancy Feast,, Felix and
Friskies

Major Product Portfolio of Nestle:

 Food products: Maggi
 Chocolates and Confectionery products: Kitkat and MilkyBar
 Coffee: Nescafe and Nespresso
[ CITATION Nes15 \l 16393 ]

2. Procter and Gamble:

Beauty Segment Head & Shoulders, Olay, Pantene, Wella

Grooming Gillette, Old Spice
Segment
Healthcare and Oral-B, Crest
Well Being
Segment
Female Hygiene Whisper and Pampers
Medication Vicks and Clearsil
Products
Snacks and Pet Pringles, IAMS
Care
Fabric Care and Ariel, Tide, Dawn, Camay, Mr. Clean,
Home Care Duracell, Ambi Pure

Major Product portfolio of P&G:

 Beauty Segment: Head & Shoulders and Pantene

3
  Grooming Segment: Gillette
 HealthCare Segment: Oral-B
 Female Hygiene: Whisper and Pampers
 Medication Products: Vicks
 Fabric Care and Home Care: Ariel and Tide.
[CITATION PGI16 \l 16393 ]

3. PepsiCo:

Beverages Pepsi, Mountain Dew, Gatorade, Tropicana, 7

Up, Mirinda, Naked Juice, Izze

Snacks Lays, Uncle Chips, Ruffles, Doritos, Cheetos,

Tostitos, Fritos, Sun Chips, Cracker Jack,
Quaker Foods

Bottled Water Aquafina, H2Oh (flavoured water)

Major Product Portfolio of PepsiCo:

 Beverages: Pepsi, Mountain Dew, Tropicana.
 Snacks: Lays and Quaker Foods.
 Bottled Water: Aquafina
[ CITATION Pep14 \l 16393 ]

4. ITC:

Foods Aashirvaad, Sunfeast, Bingo, Kitchens of India,

Yippee.
Personal Care Essenza Di Wills, Dermafique, Fiama, Vivel,
Engage, Superia, Nimyle, Savlon, Shower to
Shower, Charmis

Education Classmate, Paperkraft and Colour Crew

Matches and AIM, Mangaldeep, Homelites
4
 Agarbati
Lifestyle WLS
Juices & B Natural
Beverages
Chocolate and Fabelle, Mint-O, Candyman, Gum On,
Confectionery
Fabric Care and Ariel, Tide, Dawn, Camay, Mr. Clean,
Home Care Duracell, Ambi Pure
Coffee Sunbean
Blended Spices & ITC Master Chef
Frozen Prawns
Cigarettes Wills, Gold Flake, Insignia, India Kings,
Classic, Capstan, Bristol, Players, Flake,
Scissors and Berkeley

Major Product Portfolio of ITC:

 Cigarettes: Gold Flake, Wills and Classic.
 PersonalCare: Essenza Di Wills, Fiama, Vivel and Engage.
 Foods: Aashirvaad, Sunfeast and Bingo.
 Education: Classmate
 Juices & Beverages: B Natural
 Confectionery: Candyman
[ CITATION ITC09 \l 16393 ]

5. HUL:

Food & Cornetto, Knorr, Lipton, Magnum, Bru,

Refreshment Annapurna, 3 Roses, Red Label, Taaza, Taj
Mahal, Kissan, Kwality Wall’s and Brooke
Bond.
Beauty and Axe, Dove, LifeBuoy, Love Beauty and Planet,
Personal Care Lux, Pepsodent, Pond’s, Sunsilk, Sure,
TreSemme, Vaseline, Aviance, International
Breeze, Citra, Clear, Close Up, Fair & Lovely,
Lakme, Pears, TIGI, Toni & Guy, Brylcream,
Clinic Plus, Elle 18, Hamam, Indulekha, Lever

5
 Ayush, Liril, Pure Derm, Rexona

Home Care Cif, Comfort, Wheel, Domex, Rin, Surf Excel,

Vim, Love & Care, Sunlight

Major Product Portfolio of HUL:

 Food and Refreshment: Knorr, Bru, Brooke Bond, Kissan, Kwality
Wall’s.
 Beauty and Personal Care: Lux, Lifebuoy, Fair & Lovely, Pond’s,
Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent and Axe.
 Home Care: Surf Excel, Rin and Vim
[ CITATION Hin19 \l 16393 ]

6. Coca-Cola:

Carbonated soft Barq’s, Blue Sky, Coca-Cola Zero, Caffeine-

Drinks Free Coca-Cola, and Diet Coke, Fanta, Sprite,
Thumps Up and Limca.

Coffee and Tea Illy and Fuze, Dunkin’ Donuts Coffee

Drinks
Juice Drinks Minute Maid and Maaza, Powerade (Sports
Drink)

Bottled Water Kinley, Dasani and Smart Water

Major Product Portfolio of Coca-Cola:

 Carbonated Soft Drinks: Coca-Cola, Diet Coke, Fanta, Sprite and
Thumps Up.
 Coffee and Tea Drinks: Dunkin’ Donuts Coffee
 Juice Drinks: Minute Maid and Powerade.
 Bottled Water: Kinley.
[ CITATION Cok17 \l 16393 ]

7. Phillip Morris:

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 Cigarettes Marlboro, Virginia Slims, Benson & Hedges,
Merit, Parliament, Alpine, Basic, Cambridge,
Bucks, Dave’s, Chesterfield, Collector’s
Choice, Commander, Lark, L&M and Players

Major Product Portfolio of Phillip Morris:

 Cigarettes: Marlboro, Benson & Hedges, Merit, Parliament, L&M
and Cambridge.
[ CITATION Phi18 \l 16393 ]

8. Reckitt Benckiser:

Surface Care Deetol, Harpic, Lysol, Cilit and Bang

Fabric Care Vanish, Calgon, Spary’n Wash and Woolite
Health and Deetol, Veet, Clearasil, Strepsils, Gaviscon,
Personal Care Lemsip, Nurofen
Home Care Airwick and Mortein

Major Product Portfolio of Phillip Morris:

 Surface Care: Deetol, Harpic and Lysol
 Fabric Care: Vanish
 Health and Personal Care: Deetol, Veet and Strepsils.
 Home Care: Mortein
[ CITATION Bus19 \l 16393 ]

9. Dabur:

Health Care Health Supplements: Chyawanprash, Honey,

Glucose-D.
Digestives: Hajmola, Pudin Hara, Sat Isabgol.
Cough and Cold: Honitus.

Hair Care: Hair Oil: Amla, Vatika, Almond

Hair Shampoo: Vatika and Almond

Skin Care Fem, Gulabri, Oxy Life

7
 Oral Care Red, Babool
Home Care Odonil, Odomos, Sani Fresh
Juices and Food Real, Activ, Yoodley

Major Product Portfolio of Dabur:

 Health Care: Honey and Glucose-D, Hajmola and Honitus.
 Hair Care: Amla and Almond.
 Home Care: Odonil and Odomos.
 Juices: Real
[ CITATION Dab17 \l 16393 ]

10.Parle Agro:

Beverages Frooti, Appy, Saint Juice, LMN, Grappo Fizz

Bottled Water Bailley
Confectionery Mintrox Mints, Buttercup Sweets, KacchaAam
(Food)
Snacks Hippo

Major Product Portfolio of Parle Agro:

 Beverages: Frooti and Appy
 Bottled Water: Bailley
 Confectionery: KacchaAam
[ CITATION Par18 \l 16393 ]

PRICING STRATEGIES
Pricing is a very powerful tool in marketing, and companies use pricing in different
ways to achieve marketing goals. Mid- and long-term pricing strategies are used to
achieve marketing goals. Pricing strategy has a major impact on marketing
strategy.

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It is not necessary that a company follows a single strategy; it could be two or three
depending on the market conditions and product/service offerings. Some of the
most important strategies are mentioned below:

 DYNAMIC PRICING: Dynamic pricing (also known as peak pricing,

demand pricing, or time-based pricing) is a pricing strategy in which
companies set flexible prices for products or services based on current
market demand. Companies can change prices based on algorithms that
consider competitor prices, supply and demand, and other market external
factors. In this Pricing, a company charges different prices from different
customers at different time.

 COMPETITIVE PRICING: Competitive pricing involves setting the price to

the same level as the competition. This approach is based on the idea that
competitors have already made sufficient efforts in pricing. In any market,
many companies sell identical or very similar products. By setting the same
price as the competitor, the newly established company can avoid trial and
error costs in the price setting process. However, each company is different
and its cost is different.
 PREMIUM PRICING:Premium pricing (also known as image pricing or
reputation pricing) is an approach that artificially maintains the price of a
product or service artificially at a higher price to encourage the buyer to be
satisfied with the price alone. Premium refers to the part of a company's
brand, product or service that has tangible or fictitious residual value in the
medium to high price range. This approach is designed to take advantage of

9
 trends in which buyers tend to consider expensive goods to have a special
reputation or to represent particular qualities and characteristics.

 BUNDLE PRICING: Price bundling combines multiple products or services

into one comprehensive package, enabling an all-inclusive price reduction.
Although it sells goods at a discounted price, it can promote the purchase of
multiple items, so it can increase profits.

 NICKLE AND DIME PRICING: Nickle and Dime Pricing strategy is an

approach where the price has been divided into various elements. It means to
show the price in various parts.

 FREE MOTION PRICING: Under this strategy the company in order to

create market for its product and make the customers like it, distributes some
of its products for free.

[ CITATION Pan18 \l 16393 ]

[CITATION The17 \l 16393 ]

PRICING DYNAMIC COMPETITIVE PREMIUM NICKEL FREE BUNDLE

PRICING PRICING PRICING AND MOTION PRICING
10
STRATEGIES DIME PRICING
PRICING
HUL

ITC

PEPSICO

P&G

NESTLE

COCA COLA

PHILIP
MORRIS
DABUR

RECKITT
BENCKISER
PARLE AGRO

Score of Pricing Strategies by all 10 companies:

Dynamic Pricing: None of the company is doing Dynamic Pricing out of 10
companies.
Competitive Pricing: 9 companies are doing Competitive Pricing out of 10
companies.
Premium Pricing: 4 companies are doing Premium Pricing out of 10 companies.
Nickle and Dime Pricing: None of the company is doing Nickle and Dime
Pricing out of 10 companies.
Free Motion Pricing: 1 company is doing free Motion Pricing out of 10
companies.
Bundle Pricing: 5 companies are doing Bundle Pricing out of 10 companies.

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 Therefore on the basis of above pricing matrix, we can summarize that the
most preferred pricing strategy in FMCG Industry is Competitive Pricing
which is very much justified because of availability of many close substitutes
of the products available in the market.

PROMOTIONAL STRATEGY IN THE INDUSTRY:

Promotion HU IT PEPSIC P& NESTL COC PHILIP Reckit Dabu Parl

al L C O G E A MORRI Benckis r e
strategies COL S er Agr
A o
Public
Relations
or PR

E-
commerce

12
Free

Product

and

sample

Giveaways

Customer

Incentive

Referral

Program

Direct
Marketing
word-of-
mouth

Organizin

g contests

for

promotion

Personal
Selling

Online
Advertisin
g

Social

Causes

and

Charity

13
Score of Promotional Strategies by all 10 companies:
Public Relations or PR: 9 companies are doing Public Relations out of 10
companies.
E-Commerce: 7 companies are doing E-commerce out of 10 companies.
Free Product & Sample Giveaways: 2 companies are doing Free-product and
Sample Giveaways out of 10 companies.
Customer Incentive Referral Program: 5 companies are doing Customer
Incentive Referral Program out of 10 companies.
Direct Marketing: 5 companies are doing Direct Marketing out of 10 companies.
Word of Mouth: 10 companies are doing Word-of-Mouth promotional strategy
out of 10 companies.
Organizing Contests for Promotion: 4 companies are organizing contests for
promotion out of 10 companies.
Personal Selling: None of the company is organizing contests for promotion out
of 10 companies.
Online Advertising: 8 companies are doing online advertisements for promotion
out of 10 companies.
Social Causes and Charity: 10 companies are doing social causes and charity for
promotion out of 10 companies.

MOST PREFERRED PROMOTIONAL STRATEGY IN THE INDUSTRY

Word of Mouth and Social Causes & Charity is the most preferred promotional
strategy in FMCG Industry because all the 10 companies are doing these strategies
in the industry. Hence, we can say that these 2 promotional tools are mostly
preferred in the industry.

ONLINE AND TRADITONAL MARKETING

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Companies use advertisement to create a brand image for their company and to
reach both new and existing customers. Online advertisement is the most
recognized promotional technic that marketers use to increase their business,
advertisement allows you to promote your business to a large number of people
through various platforms that are texts, search ads, social media marketing,
remarketing etc and on the other hand traditional marketing are : television, radio,
newspapers, magazines, billboards etc
PERSONAL SELLING
Personal selling means reaching out to customers one on one, either in person, on
the phone or through emails. It is one of the most expensive form of promotion
technic that a marketer uses to increase sales, it mainly focusses on building
relationships. Businesses use this technic to cultivate long term relationships and to
establish relationships.
DIRECT MARKETING
This form of promotion involves highly targeting your audience with tailored
messaging that is geared specifically for their needs. Unlike advertising, which is
about reaching a large number of people, direct marketing focuses on reaching a
select, small group. Direct marketing can be done through email, postal mail or
social media messages.
SALES PROMOTION
A best way to improve the business line of the company in the short term can be
done by sales promotion. This type of marketing promotion involves coupons,
loyalty programs, discounts and other incentives designed to attract customers to
purchase products immediately. Sales Promotion is the best way to inform new
customers about the products and service and it also remind existing customers to
purchase.
E-COMMERCE
To generate sales, company use their website for online ordering, information,
incentives, and interactive components such as games, and other elements of the
website.

PUBLIC RELATION

15
PUBLIC RELATION is a way to connect with your target people by sharing
favorable information about your business. It focusses on building favorable
image of business. Public relation can be done through doing something good for
neighborhood and the community, for example be involved in community
activities or holding open house, or you can engage local media and hold press
conferences.

FREE PRODUCTS AND FREE SAMPLES

To increase or boost sale of product instantly this promotional strategy is used by
both small as well as powerful companies. This strategy is mostly used by FMCG
companies, as they provide a sample of their products for free of cost and make
people try with new products.
[ CITATION The19 \l 16393 ]

CUSTOMER INCENTIVE REFERRAL PROGRAM

To encourage current customers to refer company’s product or services to their
families and friends’ marketers use this promotional strategies. In this, company
offers them gifts or discounts on their next purchase in exchange for their referral.
For example: companies use “Customer incentive Referrals programs” to increase
their customer-base using their existing customers. This strategy is far less
expensive than traditional style of advertisement.
CAUSES AND CHARITY
Everyone wants to connect with company which are giving back to society along
with their core services. Therefore, many small and powerful companies use this
strategy to strengthen their customer base. To do this, company’s need to tie-up
with some charity organization or an NGO and then advertise about the initiative
on the social media handles, website, and in stores so that people become aware of
it and will buy your products to do their bit for the society.

THROWING CONTESTS FOR PROMOTION

This type of promotional strategy is quite frequently used by companies to make a

place for their newly launched product in the market. In addition to this, companies
also offer a certain discount if a customer enters the code provided by a specific
16
 YouTuber or Blogger. Or you can also organize contests in a traditional way such
as organizing a contest in the store and asking customers to participate to stand a
chance to win.

[ CITATION Pro16 \l 16393 ]

STRATEGY BEHIND CHOOSING A PLACE IN FMCG

INDUSTRY

Place is the element of marketing mix and is the process or methods used
to make the product or service available to the customers. It includes the
movement of products from manufacturers to customers through various
channels like retailers, wholesalers, digital, physical, etc. Availability of
right product to the right customers safely is very aspect of any company
in order to growth and development. Here, we are going to discuss what strategies
are being used by different companies of FMCG industries.

PLACIN P& PEPSIC IT HU NEST COCA PHILLI RECKET DABU PARLEAG

G G O C L LE - P BENCKIS R RO
STRATE COLA MORRI ER
GY S

DIGITAL

PHYSICAL

17
INFORMA
L
CHANNEL
PARTNER
HYBRID

Score of Placing Strategies by all 10 companies:

Digital: 8 companies are choosing online/digital mode as placing strategy out of 10

companies.
Physical: 10 companies are choosing physical mode out of 10 companies.
Informal: None of the company has opt Informal Mode out of 10 companies.
Channel Partner: 10 companies are choosing Channel Partner mode out of 10
companies.
Hybrid: 9 companies are choosing Hybrid mode out of 10 companies.
Most of the companies in the FMCG Industry offer their products physically
in the market through channel partners because these products are the daily
needs of the customers and there are many whose requirement will
immediately occur in the life of human beings. So, this is the strategy of
choosing the place as physical in nature in FMCG Industry.

In FMCG Industry, mostly all the companies are now opting for digital mode
also because the number of online users are increasing for purchasing the
FMCG goods.

CUSTOMER RESPONSES ON FMCG INDUSTRY:

18
 CUSTOMER RESPONSES
250
No. of Online Users (in million)

200
200

150 Year
2017
100 90 2020 (Expected)

50

0
0
No. of Onine Users
Year

The customers are now moving from physical platform to digital mode in FMCG
Industry because of easy availability of FMCG Goods at the doorstep.

FY18

19%

Food and Beverages

HealthCare
Household and Personal Care
50%

31%

Household and Personal Care segment has 50% share in the market whereas Food
and Beverages has 19% and HealthCare Products has 31%. Household and
Personal Care segment is the daily needs of the people, that is the reason household
segment has maximum share in the market.
Contribution of marketing practices to the FMCG Industry

19
A very effective marketing strategy adopted by FMCG companies is Perfected
brand building for the mass market and focused on product innovation. This
strategy helped companies to achieve significant growth and gross margins that are
25 % higher than that of the non-branded players.
Digital Marketing’s contribution to generate sales in FMCG companies has also
been immense. Indeed, Digital marketing is expected to contribute about 11
percent to the total FMCG sales by 2030, according to a market research conducted
by the firm Nielsen. Digital marketinghas contributed about 0.4 % to FMCG sales
in 2016 and in 2018 it was around 1.3 % of the branded packaged categories of
FMCG sales.
Digital Media has been creating new opportunities for marketers specifically in the
FMCG sector. Traditionally, advertisement campaigns for the FMCG products
would mostly depend on determining the correct marketing mix of the 4 P’s
(Product, Price, Place and Promotion) that would have the best influence on the
target audience’s purchasing decisions and behavior. In the correct time however,
consumers are adopting a different pattern for making buying-decisions.According
to a survey conducted by Google and Bain Company two-thirds of the total sales in
beauty & hygiene products will be generated through online marketing with a
revenue of USD 11 billion generated through online marketing.
Cavin’s is an excellent example of a company which has generated high growth in
sales by getting involved in Digital marketing. Cavin’s has been able to accomplish
its brand building putting in creative and entertaining posts over social media like
Instagram, Twitter and Facebook.
Cavin’s Milkshake has an active Facebook page, with funny and creative posts that
can attract people and people do show response by commenting and sharing the
posts. They also have a wide community on Facebook who actively engagesand
helps to enhance the goodwill for the brand by writing positive reviews on their
pages.

20
Cavin’s usedmind striking visuals on their Instagram posts to generate high level
and intensity of follower engagement. Their Instagram posts mostly involved the
clever idea of tying up their products with popular memes, events and artwork.

CONCLUSION:
The growth of FMCG Industry is very high because all the major companies of the
world are also have their business in India which is making the consumers
interested to buy new recognized brands in Indian Market. All the companies are
following different product, price, place and promotion strategy in the industry to

21
hold the maximum market share. Major player of the industry are performing good
which was same expected.

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