PRESENTA

TION
ON
MARKETI
NG STRA
TEGY OF
INDUSTR FMCG
Y
 Nature of the industry

0 FMCG:

0 Products which have a quick turnover and

relatively low cost .

0 Principle constituents
0 Household Care,
0 Personal Care and Food &
0 Beverages.
Cont.…..

0 Fourth largest sector in the economy

0 Market size of Rs. 85000 crores

0 Growing at the rate of 11.2%

India’s FMCG Market Size (In USD Billion)

Sources: Naukri Hub, IBEF, Chennai Online

 Growth drivers
0 Rapid urbanization
0 Increased literacy
0 Rising per capita income
0 Focus on Rural penetration
0 Boosting purchasing power
0 Improved infrastructure
Top Ten Players in FMCG Sector

0 Hindustan Unilever ltd..

0 ITC
0 Nestle India
0 Amul
0 Dabur India
0 Cadbury India
0 Britania Industries
0 Procter & Gamble Hygiene and Health Care
0 Marico Industries
• Low operational costs •Lower scope of investing in
• Presence of established distribution technology and achieving
networks in both urban and rural areas economies of scale, especially in
• Presence of well-known brands in FMCG small sectors
sector •Low exports levels
•"Me-too” products, which
illegally mimic the labels of
the established brands..

Strength Weakness

Opportunity Threat

• Untapped rural market • Removal of import

• Rising income levels, i.e. increase in restrictions resulting in
replacing of domestic brands
purchasing power of consumers
• Slowdown in rural demand
• Large domestic market- a population of over
• Tax and regulatory structure
one billion.
• Export potential
• High consumer goods spending
 Future Prospect

0 Large Market
0 Spending Pattern
0 Changing Profile and Mind Set of Consumer
0 Vast rural market
0 Low labor cost
0 Continuous growth in net FDI Inflow
HINDUSTAN UNILEVER
 INTRODUCTION
0 Hindustan Vanaspati Manufacturing Company+ Lever Brothers India
Limited (1933) + United Traders Limited (1935) = Hindustan lever Ltd.
(1956)

0 Later in 2007 it was named as HUL.

0 India's largest Fast Moving Consumer Goods Company, touching the

lives of two out of three Indians.

0 Over 20 distinct categories in Home & Personal Care Products and

Foods & Beverages.

0 Historically grew through acquisitions.

 PRODUCT
Bathing Laundry Skin Hair Oral Deodor Beverag
soaps items care care care ants es and
food

Lux Surf Excel Fair & Sunsilk Close up Axe Tea-

Lovely, Lipton
Lifebuoy Rin Pond’s Clinic Pepsoden Rexona Coffee-
t Bru
Liril Wheel Vaseline Kissan

Hamam Annapurn
a
Breeze Knorr

Dove Ice Cream

Pears and
Rexona
 PRICE
0 Strategy used, “matching the value that customer pays
to buy the product.”

0 Right price level for each segment.

 PLACE
0 At Hindustan Unilever Ltd(HUL), they believe that
selling FMCG is it like selling soft drinks.

HUL’s Distribution network consists of;

2,000- suppliers and associates
4,000- Distributors
6.3million- million retail outlets
 PROMOTION

0 HUL spend 14% of sales as a part of promotion.

0 Promotion through TV Ads, Outdoor ads, Radio, Print
ads.
0 Also in cinemas and at bank’s ATM.
0 Through catchy sentences;
0 Ex:- hasso to khul k hasso - close up
cream bathing bar- dove soap and
daag ache hai - surf excel
 Corporate Social
Responsibility program
0 Lifebouy Swasthya Chetana- Health and Hygiene

0 Shakti- Empowerment of women through

micro-enterprise opportunity

0 Asha Daan- Happy Home actively supported by

Unilever
 POSITIONING

0 In today’s world they positioned themselves as a

‘More for Less’.
Ex:- Positioning of individual product
Lifebuoy- provides hygiene and health
Fair & Lovely- fairness cream
 COMPETITIVE STRATEGY

0 Now also focusing on booming Retail chains

 FUTURE COMPETITIVE
STRATEGY

0 Launching of new high end Dove soap for men’s also.

0 Spreading of wings globally through joint ventures
and acquisition.
0 Increase the spending on advertisements.
DABUR
 PRODUCT LINE

Foods Baby Care Health Digestives Natural Cures

Supplements

Real Dabur Lal Dabur Hajmola Yumstick Shilajit Gold

Real Activ Tail Chyawanprash Hajmola Mast Nature Care
Hommade Dabur Baby Dabur Glucose D Masala Sat Isabgol
Lemoneez Olive Oil Anardana Shilajit
Capsico Dabur Janma Hajmola Ring Ring
Ghunti Hajmola Candy Itch Care
Hajmola Candy Backaid
Fun2 Shankha Pushpi
Pudin Hara Dabur Balm
(Liquid and Sarbyna Strong
Pearls)
Pudin Hara G
Dabur Hingoli
 Cont….

Hair Care Oil Hair Care Oral Care Skin Care Ayurvedic
Shampoo Specialities

Amla Hair Oil Anmol Silky Dabur Red Gel Gulabari Ayurveda
Amla Lite Hair Black Shampoo Dabur Red Vatika Fairness Ayurveda Vikas
Oil Vatika Henna Toothpaste Face Pack
Vatika Hair Oil Conditioning Babool
Anmol Sarson Shampoo Toothpaste
Amla Vatika Dabur Lal Dant
AntiDandruff Manjan
Shampoo Dabur Binaca
Anmol Natural Toothbrush
Shine Shampoo
 MARKETING MIX

Product Price Place Promotion

Functionality List price Channel Advertising

Appearance Discounts members Personal selling
Quality Allowances Channel Public relations
Packaging Financing motivation Message
Brand Leasing options Market coverage Media
Warranty Locations Budget
Service/Support Logistics
Service levels
Quantitative Analysis
 Economy & Markets
0 GDP 6.7%

0 Service sector 7.9%

0 Industrial sector 11.6%

0 FMCG continues to be attractive.

0 New entrants increased competitive intensity.

0 Inflation had a dampening impact on the demand.

 Dabur’s strategy
0 Comprehensive planning, forecasting and hedging strategy for
procurement of raw and packing materials.

0 Promotional expenditure, which increased from 12.1% to 14.4%

of sales.

0 Acquisition of Fem Care Pharma Ltd. added about 3.5% to the

topline.

0 Dabur continues to move forward on the double digit growth

track with sustained volume growth across all product lines.
 New Launches
0 Launched Dabur Uveda range of Ayurvedic skin care
products.

0 Réal Burrst range of fruit-based beverages.

0 Vatika Enriched Almond hair oil.

0 Dabur Amla Flower Magic hair oil.

 Developments across SBU’s
Consumer Care Division (CCD)

--low-priced SKUs
-- Penetration in rural India

 Health care
-- cross the Rs 1,000-Crore turnover mark this fiscal.
-- Dabur Chyawanprash repositioned on the immunity plank.
-- Massive Immune India campaign included experts and doctors.
-- Brand ambassador was MS DHONI
-- 2 kg value pack at Rs. 360.
-- Dabur honey relaunched with a new logo.
Oral Care
--launch of Babool Mint Fresh Gel.
-- Launch of Meswak in South India.

Food & Beverages

--Launch of Real Burrst (nectar segment)

 Consumer Health Division

-- Development of new OTC products (Pudin Hara Lemon Fizz )
-- A new campaign was developed for Hingoli, marking the brand’s re-
entry into television screens after a gap of seven years.
 HUL’S strategy
Home & personnel care
--Sales growth @ 6.6%
--Volume growth was double digit.
--Innovations by brand investments.

 Soaps & detergents

--Prices reduced by 100 bps
--Wheel relaunched
--Vim Bar price reduced due to less input costs
--Lifebuoy relaunched (germ killing)
--Lux on maturity was relaunched
--Sunsilk ( co-created by experts)
Cont.….
 Foods (double digit growth)
--Kissan jam squeeze tubes & plastic ketchup bottles.
--Knorr relaunched with 100% real vegetables and no MSG.
--Launch of new soupy noodles
--Massive launch of Brook Bond Sehatmand

 Water
--Pureit was relaunched at price point of Rs. 1000
--One crore safety challenge.
BCG And Michel Porters
 BCG MATRIX FOR HUL

PERSONAL
PRODUCT
CATEGORY
(16.2%)

PUREIT

SOAP&
DETERGENT FOOD BRANDS
(1.5%)
BCG MATRIX OF DABUR (DIVISION WISE)

INTERNATIONAL
CONSUMER CARE BUSINESS
DIVISION DIVISION (38.8%)
(17.2%)
CONSUMER
HEALTH
DIVISION
(15.1%)
 BCG MATRIX OF DABUR

CHYAWANPRASH,AMLA,
VATIKA,HAJMOLA,REAL, NEW U
FEM,HONEY,GLUCOSE.

DAZZL,ODOPIC,
GULABARI, LEMONEEZ,BURRST
DABUR UVEDA,
ODONIL,BABOOL,
MESWAK
DABUR LAL
TOOTH POWDER &
PASTE
 Five Competitive Forces
Threat of
New
Entrants
Bargaining Power
of Suppliers
Rivalry Among
Existing
Competitors

Threat of
Substitutes Bargaining Power
of Customers
 Porter’s Five Forces
Model of Competition
Threat of
Threat of New
New
Entrants
Entrants

Bargaining Rivalry Among Bargaining

Power of Competing Firms in Power of
Suppliers Industry Buyers

Threat of
Substitute
Products
 The purpose of porters
Five-Forces Analysis
0 The five forces are environmental forces that impact on
a company’s ability to compete in a given market.
0 The purpose of five-forces analysis is to diagnose the
principal competitive pressures in a market and assess
how strong and important each one is.
 Bargaining Power of Suppliers
Suppliers are likely to be powerful if:

Supplier industry is dominated by

a few firms
Suppliers’ products have few
substitutes
Buyer is not an important customer
Suppliers exert to supplier
power in the
industry by: Suppliers’ product is an important
input to buyers’ product
Suppliers’ products are differentiated
Suppliers’ products have high
switching costs
Supplier poses credible threat of
forward integration
 Threat of New Entrants
Economies of Scale
Product Differentiation
Barriers
Capital Requirements
to Entry
Switching Costs
Access to Distribution Channels
 Bargaining Power of Buyers
Buyer groups are likely to be powerful if:

Buyers are concentrated or purchases

are large relative to seller’s sales
Purchase accounts for a significant
fraction of supplier’s sales
Buyers compete
Products are undifferentiated with the
Buyers face few switching costs supplying

Buyers’ industry earns low profits

Buyer presents a credible threat of
backward integration
Product is important in terms of quality
Buyer has full information
 Threat of Substitute Products
Keys to evaluate substitute products:

Products with improving

price/performance tradeoffs
Substitute relative to present industry
Product products

Example:
Electronic security systems in
place of security guards
Fax machines in place of
overnight mail delivery