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Fast Moving Consumer Goods Products that are sold quickly at relatively low cost Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities.
Scope Is the fourth-largest sector in the Indian economy.000 crore for 2007. Toilet soap has the highest penetration at 91. growing at 10-12%. It is estimated to be Rs 1.5 % Increasing disposable income and improved standard of living in most tier II and tire III cities are spearheading the FMCG growth across the nation. The changing profile and mind set of the consumers has shifted the thought to ³Value for Money´ from ³Money for Value´.13. .
Key challenges complicated tax structure GST implementation fragmented and weak agricultural supply chain bureaucratic regulatory processes .
tooth pastes and Biscuits. On the contrary. Colgate Palmolive and Britannia Industries are strong in single product category i.e.Companies Over the years companies like HUL. Companies have been successful in reviving their presence in the semi-urban and rural markets . Their key categories have strengthened their presence and out performed peers in the FMCG sector. ITC and Dabur have improved performance with innovation and strong distribution channels.
Characteristics of FMCGs From the consumers' perspective: Frequent purchase Low involvement (little or no effort to choose the item) Low price From the marketers' angle: High volumes Low contribution margins Extensive distribution networks Highstock turnover .
Characteristics Cater to necessities.luxuries Price & income elasticity of demand varies across pdts & consumers .
Segmentation Geographic Demographic Social & Economic Behavioral .
Celebrity endorsements the highest recall among consumers immediate positive impact on sales new brand launches and re-introductions pure pressure from the top management to deliver on the brand and see immediate results 30% of the consumers would consider the purchase of a brand based on a popular face. . µcelebrity¶ power could be the only way forward in a highly competitive category like Mobiles. Karbon & MicroMax (IPL). A higher percentage would associate themselves to a brand New brands like Max.
HUL foxes P&G through successful Ambush Marketing¶. .
PRODUCTS OF HINDUSTAN UNILEVER:- .
CONSUMER DURABLE MARKETING .
Eg: Cars. it yields services or utility over time rather than being completely used up when used once. PCs .Durable goods Durable good or a hard good is a good which does not quickly wear out. ore specifically.
Players Domestic players like Godrej. Kelvinator and Voltas. . «controlled nearly 90% of the market. They were first superseded by players like BPL and Videocon in the early 1990s. With liberalisation came a spate of foreign players from Samsung to LG Electronics to Sony to Aiwa. which invested in brandbuilding and in enhancing distribution and service channels. Allwyn.
Demand is seasonal and cyclical Competition among players is on the basis of difference in prices and well-acknowledged brands. capital. and ability to hire purchases. .Overview Demand for consumer durables has increased significantly Characterized by the emergence of MNCs Major target is the growing middle class of India Bargaining power of suppliers in consumer durables sector is limited due to threat of imports and intense competition. Some of the entry barriers in consumer durables sector are distribution network.
especially global companies Rivalry and competition Potential markets remaining yet untapped Threat from substitute products/services Customer power with respect to availability of choice .Challenges and Outlook Growth Drivers Rise in disposable income Availability of newer variants of a product Product pricing Availability of financing schemes Rise in the share of organized retail Innovative advertising and brand promotion Festive season sales Major Hurdles Threat from new entrants.
they are now coming up with innovative marketing schemes like combination of products Prices of consumer durables have already reached a threshold limit and there is no scope to pull it down further. So there has been a shift in trend from normal discounts to solution marketing. more prevalent in high-end products. that helps to woo customers. . LCDs and home theatres under its combo offer as the company feels that it would be more successful at the category level instead of extending it across the product range. gift vouchers and other schemes over the last one year as it could not help companies sustain margins.Consumer durables industry bring a shift in marketing strategy There has been a 40-50% decline in offers like discounts. Instead.
Foreign players such as Hyundai. Passenger cars come in great variety.. Mahindra & Mahindra. etc are the leading Indian manufacturers. Tata Motors. Ford. Maruti Udyog Limited. Government is also mulling to boost the small car sector. Toyot . Honda. Small car market in India is increasing by leaps and bounds. available in all rangeseconomical and luxurious.Small Car Market in India : Overview India is the fourth-largest car market in Asia. Fiat. Substantial share of around 70% of the annual car production in India .
8% Growth rate is predicted to double by 2015 Current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes Industry is consistently focusing on the automobile exports. Liberalized policies of the government .17% per annum Domestic sales growth at 12.Growth enjoying a growth rate of 14.
Congested roads and small lanes. Compact and can be maintained pretty well Reliable in terms of life and also resale value .Small cars Fuel efficient when compared to mid-size or luxury cars.
a propensity to change them frequently and unpredictably .Samsung in India Emerging Markets (EMs) with large consumer bases and untapped demand constitute the major growth opportunities for the MNCs Marketing is difficult in such EMs because of : little or no market data non-existent or poorly developed distribution systems lack of regulatory discipline and where regulations exist.
Pricing. distribution and Positioning . Ltd (RCSPL). With Samsung buying the total stake of RCSPL. it became a wholly-owned subsidiary of its South Korean parent company.Entry of Samsung Samsung entered India in December 1995 as a 51:49 joint venture with Reasonable Computer Solutions Pvt. Promotion. owned by Venugopal Dhoot of the Videocon group. Uses a combination of several aspects: Product innovation.
to gain more mindshare. 2) Enhancing their product portfolio and 3) Creating the best service infrastructure." .Their objectives 1) Strengthening their channel relationships.
its loyal customer base cannot be created or sustained. mobile phones and home appliances in India. a company must provide features that are meaningful to customers. But to be a true differentiator. audio and video products. information technology products. which included CTVs. It introduced products such as the µBio¶ range in CTVs. . high-powered Woofer series of colour televisions in 21-inch and 29-inch conventional and 21-inch flat TV segments Without differentiation.Positioning The company from the very beginning launched its whole range of high technology products.
Samsung has therefore set up Samsung India Software Centre (SISC) and Samsung India Software operations unit (SISO) for software development at Noida and Bangalore respectively. video & audio Mobile Phones Information technology products Samsung by launching innovative products and using proprietory technology has gained market share. .Range of products Home appliances TV.
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