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Goods which are generally used up over a short period of time i.e. a few days, a couple of months or a year.

Also called Consumer Packaged goods ( CPG) The Indian FMCG sector is the fourth largest in the economy. It has a market size of US $13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain.

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. 15 40 10 11 8
Savings Clothings Personal Care

16
Others Entertainment Grocery

Strengths
1. Low operational costs 2. Established distribution networks in both urban and rural areas. 3. Presence of well-known brands in FMCG sector.

Weaknesses
1. Lower scope of investing in technology and achieving economies of scale. 2. Low exports levels 3. Counterfeit Products.

SWOT
Analysis
(FMCG Sector)

Opportunities
1. Untapped rural market 2. Rising income levels 3. Large domestic market-. 4. Export potential 5. High consumer goods spending

Threats
1. Removal of import restrictions 2. Slowdown in rural demand 3.Tax and regulatory structure

1.HINDUSTAN

UNILEVER

LTD 2.INDIAN TOBACCO COMPANY 3.NESTLE INDIA 4.GUJARAT COOPERATIVE MILK MARKETING FEDERATION(GCMMF) 5.DABUR INDIA

PROCTOR AND GAMBLE

HINDUSTAN UNILEVER LTD

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brot, Hinersdustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. Indias largest FMCG Company Headquartered in Mumbai Over 700 million consumers More than 15,000 employees, including 1,300 managers. Net sales for 2010 is 19,401 crores.

Segment

Sub-Segment

Fabric Wash Dish Wash Surface Cleaning

Brand Surf Rin Sunlight Wheel Vim Domex Lifebuoy Lux Dove Pears Breeze Liril Hamam Clinic plus Dove Sunsilk Ayush Ponds Fair & Lovely Lakme Care Vaseline Aviance

Comment Patented Technology, Premium Segment Largest Selling detergent bar Unilevers oldest, first brand WB, Kerala Largest Selling Indian detergent First & largest selling dish washer bar

Household Care

Personal Wash

Worlds largest selling Soap Global brand Global Brand: Premium, Skin friendly Premium Segment Basic Segment Focuses on young female population South Indian Regional Brand TN Indias largest selling shampoo (D,ND) Global Brand: Premium, Hair friendly Largest beauty shampoo brand Herbal - Doing well in South India Global brand, First mover (1947) Patented Formulation, Asian brand Bought from Tatas, Salon Business Global brand, Monopoly in Indian Petro-Je Customized Personal care Solutions

Hair care

Personal Products

Skincare

Segment

Sub-Segment Toothpaste
Market Share:

Brand Close-up Pepsodent

Comment Indias first Gel, Youth brand Second largest selling toothpaste

Toothbrush Deodorants Axe, Rexona Colour Cosmetics Personal Products Feminine Care Lakme Clear leader in deodorant segment Natural Colorants Late entrant - Smaller Player Jam Squeeze, Ketchup Soups & Ready to Cook Salt, Flour

Kortex Kissan Knorr Processed Foods Annapurna 3 Roses Mindsharp, Taj, Brooke Bond, Lipton Beverages Ice Cream & Bakery Products Brain Food Bru Gelato, Quality Walls Amaze Lakme Beauty Salons Ayush Therapy Centres

Food & Beverages

Demographic advantage of India Moving from products to Services in Premium segments Moving from products to Services in Premium segments

Beauty and Wellness

PERCENTAGE OF NET SALES OF VARIOUS SEGMENTS IN HUL


SOAPS ,DETERGENTS AND HOUSEHOLD CARE 2.20% 1.4% 5.60% 12% 45% 5% FOODS PERSONAL PRODUCTS

BEVERAGES

30% ICE CREAMS

EXPORTS

OTHERS

& Gamble Co. is a fortune 500 American multinational corporation . Founded in 1837. Headquartered in Cincinnati, Ohio US. Employees strength of 127,000. Net sales in 2010 was $78.9 billion .
Procter

PERCENTAGE

NET ALES P&G

ARI

S SEGMENTS IN
BEAUTY

18% 24% GROOMING

HEALTH CARE

SNACKS AND PET CARE 10% FABRIC AND HOME CARE 30%

BABY AND FAMILY CARE 14% 4%

GLOBAL BUSINESS UNIT


BEAUTY AND GROOMING

REPORTABLE SEGMENT Beauty

CATEGORIES Cosmetics, Female Antiperspirant and Deodorant, Female Personal Cleansing, Female Shave Care, Hair Care, Hair Color, Hair Styling, Pharmacy Channel, Prestige Products, Salon Professional, Skin Care Beauty Electronics, Home Small Appliances, Male Blades and Razors, Male Personal Care

BRANDS Head & Shoulders, Olay, Pan tene, Wella

Grooming

Old Spice, Fusion, Gillette, Mach3

GLOBAL BUSINESS UNIT HEALTH AND WELL-BEING

REPORTABLE SEGMENT Health Care

CATEGORIES Feminine Care, Gastrointestinal, Toothbrush, Toothpaste Pet Care, Snacks

BRANDS

Crest, Oral-B ,Whisper,Vicks

Snacks and Pet Care HOUSEHOLD CARE Fabric Care and Home Care

Iams, Pringles

Additives, Air Care, Mr clean,Ariel, Batteries, Dish Duracell, Gain, Tide Care, Fabric Enhancers, Laundry, Surface Care Baby Wipes, Diapers, Paper Towels, Tissues, Toilet Paper Pampers

Baby Care and Family Care

Washing dirty linen in public

The i c ercial, la che e r ar , e l are i a Ti e at rals, ith a clai f eli eri c etter hite ess at a aff r a le rice. The a stirre a e ate c arati e a ertisi . The alc tta i h rt restrai e i sta ile er t ( ) fr telecasti the c tr ersial eter e t a ith e iate effect. i

According

to The Nielsen Company, in January 2010, the value share of Tide (8.8 per cent)was almost double that of Rin (4.8 per cent). To combat the fall in shares, this January HUL did drop prices of Rin Powder (1 kg) from Rs 70 to Rs 50.
If

you cant beat them, at least defame them seemed to be the mantra followed by HUL.

Feb

25, 2010 - just few day before the famous ad, HUL filed a suit in Madras Court against P & G about their ad, which said Tide Naturals promises great cleaning while keeping your hands soft, because it has the goodness and freshness like that of lemon and sandalwood. P & G failed to prove the same, when challenged by HUL. Result: March 1, 2010 Madras High court gave P & G 72 hours to modify its advertisement saying this does not contain lemon and chandan.

----------BY HUL

PROJECT SHAKTI - The latest initiative by HUL reflects the low discretionary spending rates of its rural shoppers. With Project Shakti which HUL launched in 2000, it aims to work with female entrepreneurs. The scheme is based on a network of self-help groups and empowers female entrepreneurs to distribute HUL products like soap and shampoo. They are backed by in-depth training and loans.

------------By P&G

PROJECT SHIKSHA - P&G has aimed at education for its CSR initiative. With its effort called Shiksha, they are leveraging upon a tie-up with partners like Child Rights . Under this banner, a percentage of profits generated by brands like Tide, Ariel and Vicks are to be donated to secure better schooling for children.

While both programs have their merits, it is obvious that the HUL campaign has a strong sales angle and the P&G campaign has a strong marketing angle.

In India, P&G claims to be the second largest fast moving consumer goods ( FMCG) company, excluding foods, with a turnover of over $1 billion the largest of course being HUL.

"Of the 11 categories we play in, we are leaders in six healthcare, blades & razors, feminine care, baby care, antiaging skin care and air care. We have consistently achieved more than 20% growth year on year and our business has grown 10 times over last eight years" says Shantanu Khosla, who heads P&G's India office. (Source : ET )

In the segments that matter, like detergents and hair care which account for Rs 18,000 crore or a little over half of the home & personal care segment (HPC) HUL is at the top . Traditionally P&G , globally as well as in India, derived its bread and butter from premium brands like Ariel and Whisper Ultra. But if Asia has to contribute more, they should target consumers across all spheres.

Baby care industry has undergone huge transformation from being an entirely unorganised industry to being a part of the organised retail scenario. During the recent years it has emerged as an upcoming opportunity for aspiring entrepreneurs. India has a lot of potential for this untapped segment of the market. A report published by RNCOS has declared India as the most preferred market for the companies involved in baby care product manufacturing and marketing. RNCOS report released on 20th April 2010 Aggressive marketing strategies and consumer acceptance of branded premium baby care products (especially in baby food and skin care segments) will enable the industry to register a CAGR of more than 11% during 2010-2013

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Competition from cheaper substitutes Cultural aspects Regulations on Infant Food Promotion which can play a key role in hindering the growth of this potential market in the country.

Infant Milk Substitutes Act regulates baby food industry in India.

It starte si ess i I ia i i a ith er, and intr duced ther r ducts J hns ns a li e t thbrushes, J hns ns aby rea and rickly eat der.

Type: ublic company Industry: harmaceutical, ealth care and osmetics ounded: ounder(s): obert ood Johnson, James ood Johnson dward ead Johnson Headquarters: ew runswick J,

Dabur India Limited is the fourth largest FMCG Company in India Revenues of US$910 Million (Rs 4110 Crore) Market Capitalisation of US$4 Billion (Rs 20,000 Crore). Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods. Major baby products: Dabur Lal Tail, Dabur Janma Ghuti and Dabur Gripe Water. Type: Public company Industry: Food and Health care Founded: 1884 Founder(s):Dr. SK Burman Headquarters: Gaziabad Up India

Nestle

claims to be No .1 in baby foods in India. Cerelac has been a popular baby food for years.

Baby Care Market in India

Dabur Ltd. and Emami Ltd. are expected to utilize their extensive rural distribution networks to drive the sales of their baby care products. Emami Ltd. and Marico Ltd. are expected to enter this sector to create a niche for themselves.

Future trends identified include introduction of organic baby food, introduction of premium range of baby care products and expansion of market in rural areas.

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