Fast Moving Consumer Goods

What is FMCG.. !

FMCG is also known as CONSUMER PACKAGE (CPG) Products with quick turnover & relatively low cost Less thinking by consumers and fast moving Absolute profit made on FMCG Products is relatively small but they sell in large quantity & earn large profits.

Durable Products:
Soaps, Cosmetics, Teeth cleaning products, Shaving Products etc.

Non-Durable Products:
Glassware's, Batteries etc.

Some of the FMCG Companies are

Nestle, Unilever, Amway, Proctor & Gamble (P&G), Cadbury etc

Some of the FMCG brands are

Coca-cola, Pepsi, Kenly etc.

Why FMCG industry?

Innovative Full of rich experience Worldwide reach Frequently travelling opportunities

Some of the FMCG Category & Products are

House hold Care:
e.g. Laundry soaps, Mosquito repellents, Dish Cleaners etc.

Food & Beverages: e.g. soft drinks, bakery products, tea & coffee, Vegetables etc. Personal Care: e.g. oral care, hair care, skin care, cosmetics, deodorants, perfumes etc.

Why FMCG in INDIA.?

Changing Lifestyles Demand & Supply Gap Large Domestic Market Large Consumer Goods Spender Low Penetration & low per capital Consumption etc.
FMCG is the fourth largest sector in Indian economy with a total market size of Rs.60,000 crores.

FMCG sector generates 5% of total factory employment in the country.

Market Segmentation
Geographic Demographic Social & Economic Behavioral

Geographical : Zone Region Nearest Zone will be Targeted First Villages and Town Helps to analyze marketing strategy Density & Climate

Demographic :AGE Children or Adult Gender Male or Female

Socio - Economic :Income Group High, Medium or Low Social & Economic Education (illiterate, literate, literate)

Behavioral :*Occasions (Diwali, Deshehra, Eid) *Brand Loyalty (Rural area people are more brand loyal)

Marketing Strategy
Direct on-screen marketing (e.g. Harpic) Power brand strategy (Include those brand that have maximum pulling power and growth e.g. lifebuoy soap) Power brand extension (e.g. lifebuoy talcum powder) Exit from non power brand Using India as a brand

Target Marketing
Differs from product to product examples: Mc Donald's Youth Vim bar Housewives Pepsodent Kids Kellogg's Previously kids now adults too Sugar free Age group of 35 and more

Advertisement
Huge investment on advertisement Frequent broadcast Specially during peak hours During live matches During popular TV shows Target TV channels ( M TV, V TV) Through banners, posters, trial packs, events, hoardings, radio etc. Based on Market Research

Why Advertisement ?
As a reminder To inform about our product To show the success of brand To attract the customers To hamper the unsecured mind of consumer (e.g. saffola,dettol) To arise the need purposely To attach consumer emotionally with product To show facts and figures of products

Message Delivery
Surf excel for washing machine Vim bar gel Gillette razor Bingo chips Happy dent chewing gum Bourn vita, Horlicks Pepsodent, Colgate Pepsi, sprite, coca-cola

Packaging
Attractive packs Vibrant colors Pack will show the important feature of product Protective packaging( bru coffee) Size wise packing (Navratna oil and Colgate) According to segmentation of Market Packaging should be enhanced time by time Affordable packs ( coca cola 200 ml).

SWOT
Strengths:
1. 2. 3.

Opportunities:
1. 2. 3. 4. 5.

Low operational cost. Presence of established distribution in both urban and rural areas. Presence of well known brands in FMCG sector.

Untapped rural market. Raising income levels. Large domestic market. Export potential. High consumer goods spending.

Weaknesses:

1. Lower scope of investing in technology. 2. Low exports levels.

Threats:

1. Removal of import restrictions resulting in replacing of domestic brands. 2. Slow down in rural demand.