FMCG Marketers: Destination for FMCG Marketing This blog will update you with different FMCG Category

Trends, latest happenings in FMCG sector, especially in India. If you are interested in writing for FMCG Marketers, do mail to Welcome to FMCG Marketers Portal Sunday, July 11, 2010 MarkOUT - Detailed Services (Marketing Outsourcing in India) A new organization has to go through different stages from Conceptualization of the product to the launch of the product. It doesn’t end there. The company will always like to expand their business by entering in new products, increasing the distribution footprint, increasing the sellout by effective marketing techniques/ activities. Some of you may be in the stage of launching new products. Some of you may have existing products, but have still not marketed. Some of you may have ideas, but need inputs on execution. We have got experienced people with us, who have seen all these stages, done it and are ready to work with you to offer our set of services. Stages in developing business 1. Differentiated Product Concept 2. Product Development a. Creating Product Differentiation b. Product Specifications: Product ingredients, Nutritional facts c. Patent: Scope for patenting a product concept 3. Manufacturing: Manufacturing process/ competence with respect to the product 4. Packaging Development a. Packaging specifications as per packaging and Commodities Act b. Packaging structures for your product c. Packaging graphics/ aesthetics for your brand 5. Branding Strategy a. Brand Name Identification b. Brand Concepts to create differentiation in the mind of the consumers 6. Business Planning (Will get revised at different stages) a. Detail Business Plan after considering all costs (fixed and variable) and other investments b. Finalize the markets to launch as per profitability (basis on potential business) 7. Channel/ Distribution Development a. Distributor Identification: We will identify the right distributors for your target markets. We have a team of people in different markets. b. Wholesaler/ Retailer Identification 8. Marketing Strategy a. Consumer Activities/ Promotions b. In-store merchandising for your brand 9. “Sharper the Saw”: Ongoing Marketing Interventions required after your brand is in the market. It may be expanding your distribution, availability drives, consumer excitement, increasing your product portfolio, to grow your business

Stage 1 (Product Development with differentiation): Detailed discussions with the architect on site planning. Manufacturing getting outsourced. Marketing objectives/ challenges MarkOUT Services More than BRICKs to make a HOTEL Building a Hotel not just need bricks. Marketing Strategy. Manufacturing. Company Details a. Labels: Branding Strategy. but doesn’t have full fledged & skilled marketing department. Stage 2 (Manufacturing): After the specifications are freezed. Business Planning. The critical attribute in the whole process is product differentiation. Packaging Development. . We will get back to you. Product Development posted by MarkOUT at 2:44 PM 21 comments Monday. we are starting with services free of cost. The need for the platform has arrived from the simple fact being. strive to identify the relevant marketing interventions at different stages (as mentioned above) for your growth. builder. finally leading to a prototype. The construction has to match with prototype. We draw this analogy to offer you the relevant services at different stages. or mere standing walls with roof. The differentiation may be in form of huge balcony facing the swimming pool. As this is a new venture. Ongoing marketing Interventions. Existing products/ services – with images b. 2010 MarkOUT . structural drawings.We at 1. We at “MarkOUT: Marketing Outsourcing in India”. many SMEs have got the right set of products and services. July 05. Human resources getting outsourced. which will attract customers. Channel Development. brings with us wisdom of experience to understand your business needs and provide you with the right marketing interventions at different stages."Marketing Outsourcing in India" So far we have heard of IT services getting outsourced. You can share with us your product/ service details along with the MARKETING NEEDS to markoutindia@gmail. But have we even heard of marketing getting outsourced. It is journey of meticulous planning by involving different experts like the architect. Targets consumers/ markets 2. This is a new platform where Small and Medium Enterprises can come and post there marketing challenges/ objectives for growth. the construction will start by the builder. don’t miss this opportunity and send the following details to markoutindia@gmail. Distribution Strategy. interior designer etc for different stages of the project.

2009 Feb '09 Stimulus . The positioning can be a destination for people. may not be uniform across players. Stage 4 (Marketing): Now the product is differentiated. The benefits. Marico. the brand is differentiated. MarkOUT. will strive to identify the relevant marketing interventions at different stages for your growth. After target is clear.FMCG Sector indifferent The Government has come up with a third and last stimulus on 24th Feb '09 – set of tax measures that seek to alleviate cost pressures for India and give a phillip to demand for goods and services. personal products. They may see limited savings from these concessions. Henkel and Colgate (excise amounting to 5-8 per cent of sales) may see more . Foods lovers looking for a comfortable stay. hair care products) currently at the 10 per cent Cenvat slab. it should be very clear who the target consumer is. So all the interiors. who are Punjabi by Heart. the next step is the right positioning. Aesthetics. February 25.Stage 3 (Brand Development – Name. Product Development posted by MarkOUT at 10:55 PM 1 comments Wednesday. hoardings etc.blogspot. GlaxoSmithkline Consumer. But before we do. Players such as Dabur. We at Labels: Brand Development. The most critical step is to customize the services as per changing consumer need and to create excitement for the consumer to give repeat business. with respect to the different stages mentioned above. Britannia and Emami presently suffer very low excise duty incidence having located their manufacturing facilities in tax-free zones. Is it for business travellers. room décor will be customized accordingly. utensils. Packaging): After the product is ready. Measures Announced 1> Extension of the 4 per cent Cenvat rate cut (announced in December 2008) beyond March 31 2009 2> 2 per cent across-the-board reduction in service tax 3> Further 2 per cent cut in excise duty for products that are at the 10 per cent slab 4> Reduction of excise duty levied on bulk cement With most large FMCG categories (soaps. it is high time to differentiate the Hotel in the mind of the consumers. detergents. Stage 5 (Continuous Marketing): Now you have started getting consumers to your Hotel. however. Continuous Marketing. It will entail set of marketing activities – direct marketing. Choosing the cost effective marketing techniques is the key to success. For Details visit: http://marketingoutsourcingindia. makers of FMCGs may reap selective benefits from the extension of lower Cenvat rates and a further 2 per cent cut in the Cenvat rate. It’s the right time to market it to people and get good money for the services. Players such as Hindustan Unilever. You can share with us your product/ service details.

Nescafé coffee. Two issues drive the outcome of how brands make it through the recession: their equity at the onset of the recession. Will it be any different this time? It is possible. One industry where the consequences of the recession are felt particularly hard is the fast-moving consumer goods (FMCG) industry. but this will depend on how brand managers respond to the current downturn. However. For example. This puts a pressure on the number of national brands the retailer still carries. and one in four shoppers now purchases these ranges. Tesco launched on September 17 2008. Today they control 20 per cent of the US FMCG market. In the past. we describe what they should do. especially in western Europe and the US. Flora margarine. Dekimpe The current recession is the most brutal economic downturn in a lifetime. 2009 Marketing strategies for fast-moving consumer goods: UK Perspective By Jan-Benedict E.M.” Sales of Tesco’s discount and value ranges are up 65 per cent on last year. its fourth line of private labels. February 10. They are on the shelves of more retailers. so-called private labels or store brands – brands owned by retail giants such as Wal-Mart. posted by MarkOUT at 5:59 PM 34 comments Tuesday. in recent decades. In this article. shoppers turn to (cheaper) store brands. In recessions. Faced with a pressing need to save money. 35 per cent in Germany. Our research. called “Discount Brands at Tesco. Its looks unlikely that many of the FMCG companies will increase the prices of their products. and investments in the brand during the recession. They discover that the quality is good and. spanning several decades of purchasing behaviour and multiple recessions in countries across the globe. this industry was dominated by such wellknown manufacturer brands as Ariel detergent. commanding little loyalty and esteem? In sum. and Pampers nappies. to cater to the increased price sensitivity of UK consumers in the wake of the economic downturn. Brands that take a proactive stance and treat the recession as an opportunity are likely to come out of the recession stronger than before.sizeable excise savings. and more than 40 per cent in the UK Much of the loss of market share of manufacturer brands is initiated in economic downturns. retailers across the world devote more shelf space to their own brands (especially since they also command a higher margin). Philadelphia cream cheese. Marketing budgets for stronger brands also tend to be higher. Steenkamp & Marnik G. many stick with the brand when the economy improves again. have more shelf space and have a larger and more committed customer base. Retailers are less likely to kill brands with a strong and loyal customer base. shows that the growth of private labels in recessions leaves permanent scars on manufacturer brands. . is your brand equity high or low? Strong brands enter the recession in a much more favourable position than weak brands. Carrefour and Aldi – have made huge inroads. Tesco. Brand equity How strong is your brand? Is it a brand with many loyal buyers that people know and trust and are willing to pay a price premium for? Or is it a weak brand. consequently.

in bad economic times. respectively. High-equity brands are known to suffer less. following a product-harm crisis. but undermines the long-term equity of brands. Both provide non-price reasons to purchase the manufacturer brand – image and improved functional performance. These outlays are discretionary. the brand can counter the price advantage of private labels by increasing its investments in advertising or new product activity. Unfortunately. The logical thing for brands to do is to counter this tendency by either lowering their own price. or by offering sufficient non-price reasons to consumers to buy their brand. but evidence shows that brand manufacturers prefer to operate without this crucial guidance during recessions. and to recover faster.High-equity brands are also better insulated against the switching to private labels behaviour that is ubiquitous in recessions. new product introductions and marketing research are largely discretionary costs. this behaviour weakens the equity of brands and negatively impacts on shareholder value. First. We studied the stock price performance of 26 global companies over a 25-year period and found that annual growth in shareholder value for companies that do not tie their advertising investments to the business cycle is 1. However. and offer an easy way to reduce costs. their brands are their most valuable assets. brands can counter the price advantage of private labels by ramping up their own price promotions (temporary price reductions). our research shows that advertising and innovation activity decreases in recessions. Our research. We believe that it is due to a toxic combination of short-term perspective that characterises the decision-making of many managers and the tremendous pressure on the bottom line in recessionary times. Optimal matching of your brand with consumer needs is even more necessary in difficult times. The same holds true when faced with an economic crisis. so offering more price promotions makes a lot of sense. price promotion activity for most brands actually decreases in recessionary times.3 per cent higher compared with companies that do let their advertising investments depend on the business cycle. Marketing research is also one of the first victims in a recession. it is more difficult to convince consumers to buy your higher-priced brand. Brand investments in recessions In recessions. they can easily be cut in the short term. Second. The easiest way out is to cut costs. reveals that most brands do exactly the opposite. if only because loyal customers incur higher switching costs when buying non-preferred items. Consumers are more price-sensitive in recessions. advertising. However. Cutting back in recessions on price promotions. Surprisingly. shoppers have a natural tendency to switch to private labels in order to save money. Why do companies manage brands in such a counterproductive way? After all. innovation activity and advertising saves money in the short term. spanning more than two decades of actual marketing behaviour. . and since price promotions.

and their management makes the wrong decisions. one may still increase one’s share of total market communications. rather than focus on cost-saving activities. hence. while other brands spend less. we get four scenarios. However. but their behaviour will lead to a significant weakening of their position vis-à-vis private labels and the brands in cell (2). it would take tremendous marketing investments to break through the competitive clutter. No reduction/increase in brand investments: Recession is opportunity 3> Brand Equity (Low). rather than as short-run costs that can easily be cut when the going gets tough. Indeed.This translates into billions of dollars of shareholder value that are destroyed annually by adopting this erroneous practice. In sum. by holding brand expenditures at pre-recessionary levels. given that most brands cut back in recessions (and. one should start to treat those marketing expenses as strategic investments. Managerial decision-making for these brands is overly cautious and focused on the short-term. not only in the recession period. No reduction/increase in brand investments: Double or nothing Brands in cell (1) run the distinct danger that their equity will be significantly eroded in the current recession. but also in subsequent years. brands in cell (4) are able to increase their share of total market communication in the category dramatically by maintaining or – even better – increasing their marketing . hence. retain them). 1> Brand Equity (High). Four scenarios By combining two dimensions of brand equity at the onset of the recession and brand investments in the recession. even when the economy’s outlook improves again. and many will not even survive the recession. Brands in cell (3) are in the worst possible situation: they start weak. Note that “going against the trend” can be in absolute terms (strong form) or in relative terms (weak form). They are prime candidates to be de-listed by retailers who are pushing their private labels in recessions – and many of them will. They start from a favourable position. companies often do the wrong thing by reducing marketing expenditure despite compelling evidence that it pays to not follow the general trend of cutting back during a recession. Put differently. Indeed. Reduction in brand investments: Survival game 4> Brand Equity (Low). the recession is an opportunity to pull ahead of their short-sighted competitors in cell (1). These brands should emphasise activities that keep their customers satisfied (and. For brands in cell (2). in normal times. Their proactive behaviour will strengthen their (relative) position. They start in an unfavourable position – their equity is low and. Their brand equity will decline. customers lost during the recession may never come back. The brands in cell (4) have the opportunity of a lifetime to fight back. Reduction in brand investments: High Loss Potential 2> Brand Equity (High). belong to cells (1) and (3).

the anticipated increase in sales and profits will not materialise and the brand may be discontinued. But it is a risky strategy – if it is poorly is C. mobiles. All evidence indicates that a proactive strategy is associated with increased brand success and shareholder is Research Professor of Marketing. slumps in the real economy offer great opportunities to courageous managers. The crisis of declining FMCG markets was also driven by new avenues of expenditure for growing consumer income such as consumer durables. Dekimpe (m. Catholic University Leuven. but with cut-down on FMCG products. and author (with N. But every year the disposable income was increasing. Belgium Labels: Marketing Strategy posted by MarkOUT at 8:47 PM 2 comments Tuesday.M. Impact on FMCG Sector Post liberalization. Kumar) of the book Private Label Strategy: How to Meet the Store Brand Challenge. the Netherlands and Professor of Marketing. Indian population was all set to experience the new basket of products. you ignore the advice given by the legendary ice hockey player Wayne Gretzky: “I skate to where the puck is going to be. FMCG sector got hit. If you wait till the good times come back. 2008 The recent financial crisis has impacted several industries across the globe. December 02. not to where it has been. In this article I will be addressing the impact on FMCG sector in India and the changing strategies which are being considered to counter the meltdown. attributed to agricultural crisis and industrial slowdown. Conclusion Just as slumps in the stock market offer great opportunities for courageous investors. . all categories were growing at healthy double digit rates. U. 2008 Impact of Slowdown and Inflation and Changing Strategies in FMCG Sector Published on India Infoline on 2nd Dec. because of the entry of a number of MNCs in India. This lead to low share of FMCG spends in the consumer’s wallet.S. entertainment.g. when they could spend on value added/ premium products along with the new basket of products. This was the boom stage. Chapel Hill. Knox Massey Distinguished Professor of Marketing and Marketing Area Chair. from $424 in 2002 to $599 in 2007. Marnik G. motorbikes etc.A. the FMCG sales went Steenkamp (jbs@unc.” Recessions are not for the faint-hearted but who said that fair weather makes great managers? Authors: Jan-Benedict E. But soon between 2000 and 2004. & Executive Director of AiMark. University of North Carolina. Tilburg University. There was an inflection in 2005.dekimpe@uvt.

we have seen willingness in consumers to move to evolved products/ brands. This is attributed to higher prices of farm produce. because of changing lifestyles. 2. Having said that let me discuss what possible impact can be there on FMCG sector. namely Olay and Pond's Age Miracle. Those will get impacted. In the current slowdown and high inflation. Rural FMCG Sales: The growth engine In last few months we have several FMCG categories like shampoos. These consumers are not impacted . P&G. than multiplexes. as they may find more value in popular brands In a nutshell. In the current scenario. Marginal Slowdown in products with low perceived value Can you think of consumers stop consuming Atta in North and Rice in South in the current scenario? Will consumers stop bathing and washing their clothes? The answer is No!! The simple reason being it’s a necessity. We all have seen big launches of two premium Anti-Ageing brands. rising disposable income etc. there may be some hit to the premium FMCG brands. rather they may cut down expenditure on expensive restaurants. Now the next question is whether consumer will buy expensive/ premium detergents or the basic ones. They may hold their decision of buying a new car for sometime. Here “Value for Money” is independent of the price. Some consumers who were ready to upgrade from popular to premium brands may hold. toothpaste. large mass FMCG segment. I think that if the perceived value from the offer is high. hair oils etc growing faster in rural than urban markets. People may prefer local cinema halls or in-house entertainment (Movies on Demand). the under-penetrated premium-end category could face the heat. may be insulated from the vagaries of the financial market. but may offer less value to the consumers. The incremental expenditure will not pinch. This was the key reason for FMCG companies like HUL. Marico focusing lot on value-added products and premium-end products to drive their growths. Therefore. because of mainly two reasons: 1. 2. high inflation will not have a major impact on the consumer. Consumers may prefer a local transport than Taxis. Consumer may reconsider buying expensive skin care products. From 2005.As the share of FMCG spend has come down over the last few years. my hypothesis is that the consumers may not reduce the expenditure on FMCG products. 1. farm loan waiver and rising rural income. Products which are not differentiated and have low perceived value will be impacted. which deliver value. This means that “Value for Money” products will not be impacted. There may be products that are inexpensive. high-end food items. consumers will not downtrade to cheaper brands. consumer will look for value and not the MRP.

FICCI’s prediction of growth of FMCG sector by 16% may marginally come down. Introduction of lower SKUs: To prevent down trading. But rising input prices. Heavy dependence on the agri-sector and FMCG not being very capitalintensive are among the factors that have insulated the sector from the downturn. a) Henkel: Introduced a new 400 gm pack of Henko washing powder at Rs 40 and withdrawn the 500 gm pack that used to sell for Rs 46. the preferred choice is between reducing grammage and maintaining the same price points or introducing another price point to suit consumer pockets. It may be easy to increase the prices of premium products but in case of popular products. Changing Strategies in FMCG Sector As mentioned in the first half of my article. Let me enlist few of the strategies which companies have adopted and the outcome of the same. Increase in price: Due to increase in raw material prices. the companies have introduced packs with lower SKUs so that per unit purchase does not pinch the consumer’s wallet. 21% and 22% respectively in 2007-08. let us see the split. to have a viable business proposition. many companies were forced to increase their prices and pass on the cost to the consumers. because of less than expected growth rates in the premium segments. As quoted by Henkel. Parle Agro has not changed the price of Frooti in spite of upward pressure on prices. They have . Therefore. Some companies have been able to maintain the prices. Even regional players like Royal Girnar and Soceity Tea have increased prices of their brands to compete with national players c) Britannia: Hiked the price of its popular brand ‘Britannia NutriChoice Digestive’ from Rs 14 to 15. inflation and increased commoditization of products are forcing FMCG companies to adopt new strategies. a) HUL: Hiked the price of its detergent bar Surf Excel (120 g) earlier known as Rin Supreme from Rs 13 to 15. The rural consumers are upgrading to higher end products. With that companies are sharpening their focus on the existing smaller packs and increase their availability. semi-urban and urban contributed 57%. Rural with the highest base is growing the fastest. “A family of four requires only 400-425 gm of washing powder in a month. which is driving the volume sales of FMCG companies.with the global slowdown. Rural. Now to understand the impact on FMCG sales. the overall impact on the FMCG sales will be marginal. 1. So even if there is marginal drop in premium and value-added products (as mentioned in the previous point). 2. We withdrew the 500 gm packs as they were making consumers spend more and consume more”. They have also increased some of their toilet soap brands b) Tea Companies: Tata Tea and Duncans Tea have also hiked prices for select brands in their stables. the overall sales would not be impacted much.

as mentioned above. c) Some companies have cut down their spends on advertisement 4) Mergers and Acquisitions: The turmoil in global markets seems to have a favorable impact on Indian FMCG majors’ acquisition. CavinKare Pvt Ltd said that the global melt down will have a favorable impact for Indian companies’ acquisition plans. While many big FMCG companies find this situation an ideal opportunity to go for acquisitions. As an outcome. companies are registering faster offtake in the mid-sized packs. To counter the decreasing profitability. by bringing in more efficiency and innovation in the supply chain. They used to sell more of traditional packs of 200 gm. there are others who are cautious to invest in M&A. 25 gm and 50 gm packs are selling in higher numbers. which will lead to production efficiencies. PepsiCo is aligning its beverages and snacks businesses under a common leadership. it’s an opportunity for them to acquire companies as they get good value for money. Same has happened to their milk powder. They recently brought out its popular Fa deodorant in 75 ml and Margo soap in 40 grams. 3. This will help them to maximize synergies of the two businesses across key functions such as procurement. In the recent scenario. Outcome: FMCG sales & profit unaffected despite mayhem In the June quarter. companies adopted multiple strategies. agriculture and production. chairman & managing director. However. 5) Restructuring to leverage synergies: With the ‘power of one’ strategy. credit crisis and the global . rising input prices and inflation impacted their profitability. down from Rs 55 (500 gm).reintroduced Pril liquid for Rs 50 (425 gm bottle). it clearly shows that the FMCG sector is not impacted. with the 500 gm packs selling the most. if we look at September quarter results. They have also also reduced the size of its 500 gm to 480 gm at the same price. c) Gujarat Cooperative Milk Marketing Federation: Amul introduced 25 gm packs of butter few months back. Cost Cutting Strategies: While companies resorted to price hike. This will help them to minimize the price hike. As an outcome. FMCG companies saw an impressive topline growth. b) Procter & Gamble: P&G has reduced the pack size of its flagship detergent brand ‘Tide’ from 1 kilo to 850 gm while maintaining the price point at Rs 62. 500 gm and 1 kg. which is now registering higher sales than the traditional 100 gm and 500 gm packs. According to him. Companies are closely monitoring their stock levels and loading patterns b) Soap companies have shifted to cheaper options of raw materials to source their products at a competitive price. The current financial crisis may offer more opportunities because of better valuation. a) Companies are busy in strengthening their distribution and logistics. despite rise in raw material cost. many companies are exploring ways to cut down cost. CK Ranganathan.

Formula 1. etc. says Nestle (Business Standard) FMCG: Strong volumes. margin pressure (Equitymaster) Despite slowdown. FMCG cos put M&As on fast lane (Financial Express) Inflation blues: FMCG prices set to rise (Financial Express) FMCG companies push product launches despite inflation (Financial Express) Inflation heat has not dampened FMCG offtake (Hindu Business Line) Companies bet big on small packs to beat inflation heat (Economic Times) Inflation: FMCG majors on a reinventing spree (Economic Times) FMCG cos buck downtrend. This clearly indicates that companies were able to offset the input cost hike by passing it on to the consumers as retail prices of goods in this segment increased on an average by 10-20% in the last few months. Australian Open Tennis Championship. 2008 Corporates using sports events to promote their products Whether it’s building brands. The use of major sports events is a well-explored avenue with mega sports events such as – English Premier League. November 28. or launching a new product. but moved to cheaper SKUs c) No change in buying behavior References Top-end FMCG products may witness slowdown (Times of India) FMCG cos remain unaffected despite turbulence (Financial Express) PepsiCo to go ahead with India plans (Economic Times) Slowdown in India won't impact growth. commanding high levels of sponsorship. corporate brands the world over are always trying to come up with ’new‘ and innovative ways to promote themselves. In fact. as compared to the same period last year. The robust net profit was boosted by a 21% increase in net sales of these 12 companies. may grow 17 pc (Ibef) FMCG firms in a fix over pricing strategy (Business Standard) FY10 should be good for FMCG: Godrej (Utvi) posted by MarkOUT at 4:23 PM 6 comments Friday. The combined net profit of 12 Bombay Stock Exchange (BSE) FMCG index companies has increased by 14% as compared to the same quarter last year. Vote Has the recent increase in prices of FMCG products impacted your FMCG buying behavior? a) Downgraded from Expensive Brands to Cheaper Ones b) Stuck to your old brand. despite the fact that raw material cost increased by 29% as compared to the same period last year.meltdown. driving sales. . The sector is showing strong volume growth across product categories. net profit of 350 BSE-500 companies increased 7% in the July-September 2008 quarter.

Tying in. this event saw various ‘big’ brands take the traditional sponsorship titles route – title sponsors. Indian corporate brands are fast on the heels of using sports events to leverage themselves. refreshments et al. which manages US$ 2 billion in capital commitments. Samir Kuckreja acquired the Nirula’s Group of Companies. [appropriately] with the spirit of the half marathon. Nirula’s felt it a natural fit to introduce its latest initiative – healthier fast food options for Indian youth (Link) To view Nirulas pictures of Delhi Half Marathon. To meet this unmet need. albeit on a more humble scale.Like their counterparts in the west. Navis Capital Partners and Managing Director. However other corporate brands opted instead to showcase themselves by creating costumes for the 7km Delhi Fun Run race. is the Delhi half marathon that happened on November 9th. Indian quick service restaurant chain Nirula’s used the half marathon as a pre-launch platform for the Nutribyte Burger®. Nirula’s operates restaurants under the brand name Nirula’s. A US based company now with an Indian presence. New Delhi in 1934. is a pioneer in the family style restaurant business in India having set up the first outlet in Connaught Circus. The launch of the IPL last year. Gaining prominence in its own right. Enter sports. is a case in point. With more sporting events gaining prominence in the Indian sporting calendar there are an increasing number of opportunities for brands to showcase themselves. About Nirula’s: Nirula’s. official aid care provider. another example. Punjab and Chandigarh. About Nutrition Vista Nutrition Vista was founded on the basic premise that for most working adults access to healthy eating and weight management is not only time consuming but also unreliable. Haryana. Vijay Mallya of Kingfisher owning his own Formula1 race team. Uttaranchal. The Group is present almost in 60 locations across Delhi and NCR. which saw numerous Indian brands and personalities bidding for players. ADA) respectively. a reputed name in the hospitality industry. Rajasthan. Samir Kuckreja is a respected hospitality and retail professional with varied experience in some of the bestknown companies in the world. A more recent example. While quite a few still embrace the standard marketing initiatives. In June 2006. Nutrition Vista offers a convergence of both online and off-line tools built around the services of their well-trained dietitians who are certified by the Indian and/or American Dietetic Associations (IDA. Uttar Pradesh. a first of the Nutribyte range of nutrilicious fast food – product child of Nirula’s partnership with US weight management firm Nutritionvista. please click here. healthy lifestyle through exercise and responsible nutrition. more corporates are exploring other platforms in the hope of extending visibility. Nutrition Vista brings the latest in health . casual dining outlets called Nirula’s Potpourri and two hotels. Navis is private equity fund based in Malaysia.

assessments and innovative tools that will help consumers get better guidance. Focus on Health Companies are widening their health food portfolio to cash in on the rich. 50.5) Probiotic Ice Creams 1. November 18.2) Organic spices/ pulses 1. they have launched a new SKU of 400gms for Rs. training and support on nutrition and related health issues. Consumer are not switching to cheaper substitutes. 46 to Rs.4) Processed foods particularly juices 1. Henkel instead of increasing the price of their Henkwl detergent from Rs.2008 In this post i have covered multiple trends happening in the Indian FMCG sector. Just to give you an example.7) Corn Flakes/ Oats 1. FMCG spend now comprises a smaller share of consumer’s wallet 3. 1. During the time of inflation.6) Butter Lite (Nutralite) 1. I can forsee that we are here to see further segments in different categories.1) Sugar free Chywanprash 1. ALmost a decade back people use to downtrade from expensive brands to value for money ones.9) Low Calorie Sweetners 2. Impact of Inflation: The expenditure of FMCG in the consumer's wallet is coming down year on year. Rather companies have come with lower quantity SKUs and make consumers switch from higher to lower SKUs and not from premium to popular brands (like Dove to Lux International). people shift to sachets of their brands. But now the trend is changing. Micro Segmentation/ Niches: Its interesting and funny to see that companies are not leaving any opportunity to micro segment the market. Sales numbers of FMCG companies are quite +91 9818225569posted by MarkOUT at 4:58 PM 2 comments Tuesday. 40. 2008 Indian FMCG Sector Trends .8) Lays (40% less saturated fats) – Snack Smart 1. health conscious Indian. This is leading to low sensitivity with price increases. In recent we have seen flurry of products in this segment. Have a look of some of them: 1. For further information please contact: Kanika Berry kberry@perfectrelations. urban. Here are some examples: Age a) Junior Horlicks b) Junior Chyawanprash c) Pepsodent Barbie for Kids/ Colgate Strawberry Sex .3) Multi grain pastas/ Biscuits 1.

4) Noodles (Chotu Maggi) 4. attributed to price increases (not much impact of inflation . Have a look of that list: 7.4) Anti-aging solution .1) Men’s grooming products 7. Muscle b) Power Cleaner (Rust): Easy Off Bang 4. Here is a small list of sachets: 4.2) Skin care & Cosmetics 7.explained in point 2) and low volume growth.6) Toilet Cleaner (Harpic) 5. Ready to Eat a) Con Flakes/ Oats b) Pastas c) Biscuits d) Noodles e) Pizzas f) Burgers Ready to Drink a) Energy Drinks b) Non-Cola Drinks (Juices) Ready to Cook a) Cut Vegetables b) Soups c) Paranthas/ Rotis d) Snacks 6. Low value SKUs . Soaps etc are expected to grow at a healthy rate of 10%. there are number of FMCG categories with low penetration and are expected to grow by 20% during 2008-2009. Mainstream Penetrated Growth Categories: The high penetrated categories like Hair Oils. I think Nano is an interesting example of an automobile sachet. 7. Under-penetrated Growth Categories: Barring few main mainstream categories as mentioned above. busy jobs etc marketers are coming up with Jet Age consumer products.a) Women’s Horlicks b) Male fairness cream Specialized Household Cleaners a) Kitchen Cleaner: Mr. Jet Age Consumer Products: Becasue of changing lifestyles.5) Ketchup (Pichko) 4.Sachetization: You name the category it has a sachet !! We all know that it all started in 1980's with shampoos.3) Hair Oils (Navratan – Thanda Thanda Cool Cool) 4.2) Butter (Munna Pack) 4.3) skin/fairness cream 7. Detergent Cakes.1) Shampoos 4. Washing Detergents.

Be it Laundary. The days of Tortoise Mosquito repellent coils are gone. Low Per Capita Consumption: Currently we are nowhere near to other developing countries in terms of per capita consumption. This is the age of aerosols with value added functionality.8) Deodorants There lies a huge potential in these categories. Colgate started the "twice a day" campaign few years back. Marketers have put in efforts to increase the consumption frequency or quantum of consumption per occasion.5) Shampoos 7. Shampoos or deodarants. Recently we have Good Night coming up with Double power pack. I have picked up some examples. Skin Care. Per Re1 increase in per capita consumption of a category will lead to growth of more than 100 crores (with a popular base of more than 1 Billion) 9) Evolved Product Forms: 20 years back consumers had limited choices to pick from.6) Toothpaste 7.7. were we have seen a change in the product forms.7) Hair Colour 7. Here is the list: Dish Wash: Powder to Bar to Liquid Shaving: Creams to Foams/ Gels Repellents: Coils to Aerosols/ Body Creams/ Gels Air Freshners: Sprays to Electric Toilet Cleaner: Acid to Harpic to In-Cistern . 8.