Planning a Career

A person who knows HOW to do something

…will always have a job

And a person who knows WHY to do something

…will always be the boss!
A Career in FMCG
 FMCG
Fast
Moving
Career
Growth
 AGENDA
Agenda
 FMCG- Definition
 Facts about FMCG Industry- Indian FMVG, Growth,
Vital statistics, Contribution
 Key Segments
 Key Challenges & Opportunities- Growth Drivers,
Porters Five Forces Analysis, Critical Success Factors
 Why FMCG?
 Notable Trends in FMCG
 Career Prospects in FMCG – Roles, Skills
 Role Models – Who’s who?
 Key Organisations
 Key Concepts
 Way Forward
DEFINITION
Products that are sold at relatively low

price, don’t require much thought,

financial investment and time to

purchase

FMCG have a short shelf life because

of high consumer demand and quick

depletion of the product

Facts About FMCG Industry
 Indian FMCG

• One of the largest sectors in the economy

• Has grown @ 12% in 2016
• Is expected to achieve revenues of USD 49 bn in 2017
• Urban India accounts for 60% of the market share
• Rural India is catching up, 50 % of their spends are for FMCG
 Indian FMCG

• Characterised by intense competition between three sets of

players
Global
Large Indian
Regional
 Major Players
Listed Indian MNC Unlisted Indian MNC
HUL Ltd. Nestle India Ltd. Gujarat Co- PepsiCo India Ltd.
operative Milk
Marketing
Federation Ltd.
Emami Ltd. Procter & Gamble Patanjali Ayurved Hindustan Coca cola
India Ltd. Beverages Pvt Ltd.
Dabur Ltd. Colgate Palmolive Parle Products Pvt Mondelez India Food
Ltd. Ltd. Pvt Ltd.
Marico Ltd. GSK Consumer Parle Agro Pvt Ltd. Amway India
Healthcare
ITC Ltd. Nirma Ltd. L’Oreal India Pvt Ltd.
Godrej Consumers
Products Ltd.
Britannia Industries
 Industry Growth
• By 2020, FMCG market in India is expected to grow at a CAGR
of 20.6 % and is expected to reach USD 103.7 billion (6.5 lakh
crore) during 2016-2017
• Retail market in India is estimated to reach USD1 trillion by 2020
from USD600 billion in 2015, with modern trade expected to
grow at 20 per cent per annum, which is likely to boost revenues
of FMCG companies
• People are gracefully embracing Ayurveda products, which has
resulted in growth of FMCG major, Patanjali Ayurveda, with a m-
cap of USD 15 billion
 Vital Statistics

Number of FMCG retailers in the country?

Number of modern trade retailers?
Number of FMCG companies operating in India?
Number of SKUs in the market?
Number of new FMCG product launches each year?
 Contribution by FMCG Sector

• 35 per cent of media industry earnings from advertising come

from the FMCG sector, a contribution of Rs 9,600 crore

• The FMCG sector is also one of the major contributors to the

exchequer with Rs 31,000 crore paid through direct and indirect
taxes
Key Segments
Household Care
– Fabric Wash (Laundry soaps and synthetic detergents)
– Household cleaners
• Dish/utensils
• Floor cleaners
• Toilet cleaners
• Air fresheners
• Insecticides and mosquito repellents
• Furniture polish
 Household Care
Rank
HOME CARE FABRIC CARE
2016
1 Good Knight Surf Excel
2 All Out Ariel
3 Harpic Tide
4 Fevicol Rin
5 Vim Wheel
6 Fevikwik Nirma
7 Mortein Ujala
8 HIT Patanjali
9 Lizol Godrej Ezee
10 Domex Ghari

Source: Most Trusted Brands, 2016, Brand Equity

 •Oral care
•Hair care
Personal Care

•Skin care
•Personal wash
•Cosmetics,
•Perfumes/ Deodorants
•Paper
•Feminine hygiene
products
 Personal Care
Rank
SKIN CARE ORAL CARE
2016
1 Lifebuoy Colgate
2 Fair & Lovely Closeup
3 Dettol Dabur ( Toothpaste)
4 Lux Pepsodent
5 Dove Patanjali Dant Kanti
6 Head & Shoulders Oral -B
7 Pond's Vicco Vajradanti
8 Clinic Plus Babool
9 Pears Sensodyne
10 Vaseline Anchor

Source: Most Trusted Brands, 2016, Brand Equity

 •Health beverages, soft drinks
Foods & Beverages
•Staples/cereals
•Bakery Products (biscuits, bread,
cake)
•Snack food
•Chocolate
•Ice Cream
•Tea
•Coffee
•Processed fruits, vegetables
•Dairy products
•Bottled water
•Branded flour
 Food & Beverages
Rank FOOD
HOT BEVERAGES COLD BERVERAGES
2016 PRODUCTS
1 Horlicks Maaza Tata Salt
2 Bournvita Pepsi Britannia
3 Tata Tea Frooti Maggi
4 Complan Coca-Cola Amul
5 Taj Mahal Tea Thums Up Kurkure
6 BRU Coffee Sprite Parle
7 Nescafe Limca Haldirams
8 Red Label Rasna Sunfeast
9 Brook Bond Taaza Mirinda Aashirvaad
10 Boost 7UP Everest Masala
Source: Most Trusted Brands, 2016, Brand Equity
 OTC
2016 Brands 2015
1 Glucon -D 1

2 Moov 2

3 Vicks 3

4 Hajmola 9

5 Idoex 6

6 Zandu 5

7 Eno 4

8 Boroline 15

9 Nycil 8

10 Patanjali NE

Source: Most Trusted Brands, 2016, Brand Equity

 Household and Personal Care is the leading segment, accounting
for 50 per cent of the overall market. Health care (31 per cent) and
Food & Beverages (19 per cent) comes next in terms of market
share
 Opportunities in product categories

 Penetration of products such as hair oil and talcum powder is high in

the country
 Some major products including ayurvedic oil, deodorants and men’s
fairness creams recorded comparatively lower penetration
Key Challenges & Opportunities
Growth Drivers
Porters Five Forces Analysis
 Brand Building
Consumer Understanding
Brand Identity
Brand Differentiation
Tangible & Intangible benefits

Market Reach
Innovation Critical Success Factors Suppliers
Product & Marketing Distributors
Retailers

Operational Efficiency &

Effectiveness
Cost competitiveness
Why FMCG?
• Strong consumer orientation
• Stable industry
• Evolved systems and processes
– MNC presence
• Depth of opportunity & experience
– Scale
– Width - Multi disciplinary / business thinking
– Innovate with speed & flexibility
• Learning opportunities
– Urban / rural / regional / global
• Talent pool for other sectors
• Remuneration reasonably good
 Business thinking
Market
dynamics & Profit
financial
Turnover Value market size Value share
returns
Price Market growth

Volume Volume market size Volume share

Buying
behaviour
Loyalty
Penetration Share of Average Purchase
purchase pack size frequency

6P's Place Proposition Promotion Pack Price Product

(brand
•Consumer •On shelf
levers) attitude •ROI •Price
•Distribution impact
•Brand •Depth of elasticity
•Visibility health discount •Variant • Performance
diff’tiation vs. claims
•Number of •360º comms •Number of •Competit
promotions • Performance
lines •Brand •Perceived or pricing vs.
investment •Compliance quality
•Share of •ROI •Value competition
staff •Competitor •Competitor
•Competitor activity pricing
activity impact
Notable Trends in FMCG
• Consolidation
• Product innovation
• Premiumisation
• Product customisation
• Brand consciousness
• Rising importance of smaller-sized packs
• Increase hiring from tier II/III cities
• Reducing carbon footprints and eco-friendly
products
• Increasing private label penetration
Career Prospects in FMCG
 Roles in FMCG
Consumer Insight Understand consumers

Create clear and motivating brand vision

Positioning

Category Mgmt Manage segmented

portfolio

Set marketing programme optimally designed

Brand Planning to build brand equity & drive sales

Create integrated communications

Communications

Innovation Create great consumer relevant

innovations

Channel Set channel / outlet strategy

Bring to life Bring brands to life

& drive sales

Measure Measure and evaluate performance

 What do you need?

Competencies Skills

• Curiosity • Analytical skills

• Empathy • Consumer understanding
• Structured • Cross functional thinking
• Business mind • Process driven
• Leadership • Leading cross functional
• Creativity teams
• Innovation
 Typical Organogram

President – Sales & Marketing

GM - Marketing GM - Sales

Media Marketing Manager Market Research National Sales Manager

Brand Manager Manager – BTL CRM Managerr Regional Manager - West

Area Sales Manager - 1 Area Sales Manager - 2

Brand Executive - 1 Brand Executive - 2

Sales Officer
 Typical Entry Point

•Mostly taken as Management Trainees.

•Put through a 1 year induction with a minimum of 6 months in
sales as Sales Officer and another 3-6 months as Area Sales
Manager (ABM)
•Then a lateral movement into Marketing as a Brand Executive
or Brand Manager.

Understand Business Dynamics like sales cycle, distribution, order processing,

customer buying behavior and negotiation tactics with distributors and retailers
for product stocking
 Key Responsibilities of Brand Manager

• Limited strategic role…Mostly a tactical / execution driven

role.
• Co-ordinating with various agencies like Ad agency, direct
marketing agency, Media planning agency, printers etc.
• Supporting the sales staff for various promotional inputs like
display material, brand reminders etc
• Execution of campaigns.
• Competition tracking.
• Data analysis
 Alternate Career Paths

1. Manager - BTL – Organizing Brand events and taking care of

various BTL activities
– Field-job, not very glamorous.
– High pressure as deadlines can be excruciating.
– May involve extensive travel and odd working hours.
– Good Organization and Inter-personal skills a must.
– Readiness to “roll-up-sleeves” and get hands dirty.
– Closest to end user / infleuncer and hence tremendous
learning.
 Alternate Career Paths

2. Manager - Market Research – constantly monitoring market

and consumer trends through primary and secondary
research and tracking M.S, growth etc.
– Mostly an office job with fixed working hours.
– Needs an eye for detail and a love for numbers
– Good Analytical skills a must.
– Career growth may be slow.
 Alternate Career Paths

3. Client Servicing in Ad agencies – gives opportunity to learn

about different categories at same time
1. Can be highly stressful…but work environment is great
2. Need to work as per the whims and fancies of the
creative team (always play second fiddle to them)
3. Good chance for a lateral movement into the client-side
4. Good organization, Inter-personal and creative skills a
must
Role Models
 Vinita Bali, MD Britannia

• MBA from JBIMS, Mumbai

• Voltas Ltd.- A Tata Group company,

where she launched Rasna soft-
drink concentrate
• 1980 - Cadbury India, Roles across
India, UK, Nigeria and South Africa
• 1994 – joined Coca-Cola as worldwide Marketing Director for
the worldwide strategy for Coke, moved to Latin America
• 2005 – 2014- Britannia as CEO & MD
 The Power Trio
Nitin Paranjape, President, Home Care Business, Unilever, D. Shivakumar, Chairman
& CEO, PepsiCo India, Mukul Deoras, CMO, Colgate-Palmolive Ltd
 Indra Nooyi,
Chairman & CEO, PepsiCo

Rakesh Kapoor,
CEO, Reckitt Benckiser plc
 Varun Berry,
MD, Britannia Industries Ltd

Sameer Suneja
Global CEO, PVM
Key FMCG Organisations
Market share in a few FMCG categories
Success Stories

Emami, Dabur, ITC

Key Concepts
 Key controllable factors
Availability- 33% of FMCG Sales are impacted by ensuring
presence in a large number of stores, availability in key category
stores. E.g.: in rural India, packaged wheat flour, refined oil,
sanitary napkins have achieved more than 20% volume growth by
leveraging expansion in distribution

Aspiration- New product launches, including variants, extensions

and pack formats are important. E.g.: The category of diapers has
doubled its reach to 22 lakh stores since 2011

Affordability- Offerings at key price points and low unit

consumption options are important. Sachet/low unit packs impact
18% of FMCG sales. E.g.: Small packs have helped Haldiram to
add 1 lakh outlets last year, contributing to 60% of the company’s
value growth
 Channel Evolution
• 6.2 million retailers (out of 9.6 Million) are typical mom-and-pop
“Kirana” stores that stock a mix of branded and unbranded
products- are increasing @ 9.5% p.a.

• 1.1 million Paan+ stores feed on-the-go consumption particularly

for impulse buys, are increasing @ 10% p.a.

• Chemists, cosmetics and food stores are niche channels. Chemists

have started stalking 39 FMCG categories on an average

• Organised or Modern Trade (MT) only contributes about 7% to

FMCGs. MT plays a role as experimentation ground for new
launches, greater choices, better deals, enhanced shopping
experience.
Way Forward