FMCG - Sector Overview

8/10/2019 FMCG - Sector Overview

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http://www.nestle.in/default.aspxhttp://www.heinz.co.in/about-brand/glucond.aspx


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This brandscampaign on Facebook promisedtheir product for free if the participant deleted

10 friends from his list. It lasted for 10 days

but its viral buzz

lasted for some time. The word related to their

act was elected as the word of the year 2009

by Oxford Dictionary. Name the brand and

mention the word.

Do You Know?


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Initially this person used to assist the state

of Georgia (USA) in prosecuting salesmenof fake chemicals, later on he went on to

establish one of the most famous and visible

global brands whose secret formula is

known to very few. Name him and the

brand.


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Who owns the brands A+ and a+?

One of them is accused of infringing

the other.

Which company had launched a brand

called Pingo which did not take off?


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This chocolate brand was named after a

young boy who frequented the candy shop

and had fun with the girls who were working

there. The owner on hearing his name, named

the brand after him. Name this brand now

owned by Nestle.


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Founder of this brand held a variety of jobs

including: farm hand, street car conductor,

an army private in Cuba, rail yard fireman,

blacksmithshelper, insurance salesmen,

tyre salesman and service station operator.His brand is the main sponsor of a

cricketing event called the Big Bash.

Name him and the brand.


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This brandsad made it synonymous with the

image of a girl in a waterfall, the girlsplashing and bathing with abandon under the

gushing waters. Name this brand which is

notable for being a palindrome.Name 2 more FMCG brands which have the

same quality.


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Fast

MovingCareer

Growth

FMCG


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Planning a Career

A person who knows HOW to do something

will always have a job

And a person who knows WHYto do something

will always be his boss!


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Agenda

FMCG- DefinitionFacts about FMCG Industry- Growth, Changing

Dynamics, Vital statistics, Contribution

Key Segments

Key Challenges and Opportunities- CSFs

Why FMCG?

Players Across Verticals

Career Prospects in FMCGRoles, Skills

Role ModelsWhos who?

Key Organisations

AGENDA


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DEFINITION


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Products that have quick shelf

turnover, at relatively low cost

and dont require a lot of thought,

time and financial investment to

purchase. FMCG Industry mainly

deals with production, distribution

& marketing of packaged goods to

all consumers.
http://www.google.co.in/imgres?imgurl=http://mall.coimbatore.com/bnh/dove/breakhome.jpg&imgrefurl=http://mall.coimbatore.com/bnh/dove/index.html&usg=__x_SvHrYqrCQCMjU05lOFvV0WBkU=&h=146&w=125&sz=8&hl=en&start=8&zoom=1&tbnid=gEC5zmkUUgsDkM:&tbnh=95&tbnw=81&ei=05eSTf_2CoicvgOxjZW9CA&prev=/images?q=dove+shampoo&hl=en&gbv=2&tbs=isch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://fustilarian.files.wordpress.com/2010/08/axe_body_spray-1.jpg&imgrefurl=http://fustilarian.wordpress.com/&usg=__bO8uFEnbppgn0WsbMSDdDkT4uno=&h=492&w=918&sz=100&hl=en&start=4&zoom=1&tbnid=tcPLduaBjVcUYM:&tbnh=79&tbnw=147&ei=jJeSTd6RKoquvgOyo7i9CA&prev=/images?q=axe&hl=en&gbv=2&tbs=isch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://herograph.com/colgate.jpg&imgrefurl=http://herograph.com/&usg=__rWCamwZf_DaJiuTHyNHDu7wtL-w=&h=620&w=800&sz=85&hl=en&start=1&zoom=1&tbnid=lbtBOE2OImS6aM:&tbnh=111&tbnw=143&ei=cJeSTfacHoyCvgPG2_28CA&prev=/images?q=colgate&hl=en&gbv=2&tbs=isch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.thehindubusinessline.in/catalyst/2003/05/01/images/2003050100170404.jpg&imgrefurl=http://www.thehindubusinessline.com/catalyst/2003/05/01/stories/2003050100170403.htm&usg=__b4gn6tKqp3yxOp1EAURw9t0bnI8=&h=449&w=351&sz=28&hl=en&start=6&zoom=1&tbnid=2sMhwra_U7kfBM:&tbnh=127&tbnw=99&ei=WZeSTdjxJ4-wuAONnIS-CA&prev=/images?q=surf+excel&hl=en&gbv=2&tbs=isch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://www.topnews.in/files/Nirma_0.jpg&imgrefurl=http://www.topnews.in/nirma-net-profit-dips-57-2263722&usg=__8hUjUVO2g-rG_NqikYAJ1Fm2kyk=&h=230&w=240&sz=17&hl=en&start=3&zoom=1&tbnid=QbPdIPTjTkUnNM:&tbnh=105&tbnw=110&ei=NJeSTYaQDYnYuAPilZC9CA&prev=/images?q=nirma&hl=en&gbv=2&tbs=isch:1&itbs=1http://www.google.co.in/imgres?imgurl=http://popsop.ru/wp-content/uploads/lux_soft_skin_soap.jpg&imgrefurl=http://popsop.ru/23047&usg=__OoPUyHrfH6s0lxAGn2g4yWoXjLM=&h=769&w=1000&sz=71&hl=en&start=7&zoom=1&tbnid=5ASjbeKXL9eLKM:&tbnh=115&tbnw=149&ei=7paSTezyEIn6vwPA_aC9CA&prev=/images?q=lux&hl=en&gbv=2&tbs=isch:1&itbs=1


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Facts About FMCG Industry


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Most visible sector in the economy

Market size : Rs 2 trillion

CAGR: 11 % pa for the last decade

Strong MNC presence

Well established distribution network.


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Characterized by intense competition between

three sets of players

* Global players

* Large Indian players

* Regional players


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Recent Performance


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Vital Statistics

Over 143 lakh retail outlets operate in thecountry

With about 80 lakh kirana stores

selling FMCG products, it supports thelivelihood of 13,000 cr people

Another 25,000 cr people are

employed as wholesalers, distributors,

stockists, etc


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Key Segments


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Foods & Beverages

Household Care

Personal Care

Health Care


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Fo

ods&B

everages

Health beverages, soft drinks

Staples/cereals

Bakery Products (biscuits, bread,cake)

Snack food

Chocolate

Ice CreamTea

Coffee

Processed fruits, vegetables

Dairy products

Bottled water

Branded flour


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House

holdCa

reFabric Wash (Laundry soaps and synthetic detergents)

Household cleanersDish/utensils

Floor cleaners

Toilet cleaners

Air fresheners

Insecticides and mosquito repellents

Furniture polish


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P

ersonalCare

Oral careHair care

Skin care

Personal wash

Cosmetics,Perfumes/ Deodorants

Paper

Feminine hygiene

products


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Key Challenges & Opportunities


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InnovationProduct & Marketing

efforts

Critical Success Factors

Brand BuildingConsumer Understanding

Brand Identity

Brand Differentiation

Tangible & Intangible benefits

Market ReachSuppliers

Distributors

Retailers

Operational Efficiency & EffectivenessCost competitiveness


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Why FMCG?


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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 pond for other sectors

Remuneration reasonably good


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Market

dynamics &

financial

returns

Profit

Turnover

Price

Volume

Value market size

Market growth

Volume market size

Value share

Volume share

Buying

behaviour

Penetration

Loyalty

Share of

purchase

Average

pack size

Purchase

frequency

6P's(brand

levers)

Place

Distribution

Visibility

Number oflines

Share ofstaff

PropositionConsumerattitude

Brandhealth

360 commsBrandinvestment

ROICompetitor

activity

Promotion

ROI

Depth ofdiscount

Number ofpromotions

Compliance

Competitoractivity

Pack

On shelfimpact

Variantdifftiation

Perceivedquality

Competitor

impact

Price

Priceelasticity

Competitor pricing

Valuepricing

Product

Performancevs. claims

Performancevs.competition

Business thinking


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FUTURE TRENDS


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CONSUMERS

ENVIRONMENT

FMCG

MARKETS


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1. Consumers

Accelerating premiumisation

Shift towards evolved products

Gold mine at BOP


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2. Markets

Rapid globalisation

Many Indias

Growing modern trade

3. Environment

Eco-consciousness

Game-changing technologies

Enabling policies


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Players across Verticals

l i l


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Clothing and Textiles

Jewelry and Watches Footwear
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Home Dcor and Furnishings Electronics

Books and Music

http://images.google.co.in/imgres?imgurl=http://www.foreverfriendsappeal.co.uk/Aboutus/HALLMARK%20LOGO.jpg&imgrefurl=http://www.foreverfriendsappeal.co.uk/TheFFBrand.htm&h=56&w=124&sz=9&hl=en&start=4&tbnid=PJTUPKEM4-mpTM:&tbnh=41&tbnw=90&prev=/images?q=hallmark+logo&gbv=2&svnum=10&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.integratedretail.com/images/planetm_logo.jpg&imgrefurl=http://www.integratedretail.com/client_list.htm&h=104&w=104&sz=5&hl=en&start=2&um=1&tbnid=1jdKR4MvQP9coM:&tbnh=84&tbnw=84&prev=/images?q=planet+m+logo&svnum=10&um=1&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.rpggroup.com/images/sectors/retail/l-musicworld.gif&imgrefurl=http://www.rpggroup.com/bussectors/musicworld/profile.asp&h=97&w=141&sz=3&hl=en&start=7&tbnid=28Z0ck7hn119CM:&tbnh=65&tbnw=94&prev=/images?q=music+world+logo&gbv=2&svnum=10&hl=enhttp://images.google.com/imgres?imgurl=http://www.speedageexpress.com/wwwspeedage/cust_track/images/raymond_logo.jpg&imgrefurl=http://www.speedageexpress.com/custprofile/customerprofile.asp&h=40&w=114&sz=3&hl=en&start=3&um=1&tbnid=CPgOBKwWXd30NM:&tbnh=31&tbnw=87&prev=/images?q=RAYMONDS+LOGO&svnum=10&um=1&hl=en&rlz=1T4GFRD_enIN243IN243&sa=Nhttp://www.dura-meubles.com/logo_gautier.gifhttp://images.google.com/imgres?imgurl=http://www.portwayonline.co.uk/WHIRLPOOL%20LOGO.jpg&imgrefurl=http://www.portwayonline.co.uk/default.asp?brand=y&h=828&w=1827&sz=491&hl=en&start=1&um=1&tbnid=YGM2f6X8r1tfuM:&tbnh=68&tbnw=150&prev=/images?q=WHIRLPOOL++LOGO&svnum=10&um=1&hl=en&rlz=1T4GFRD_enIN243IN243http://images.google.com/imgres?imgurl=http://www.voucherexpress.co.uk/images_updatable_text/moredetails-34/MP_logo_NEXT.gif&imgrefurl=http://www.voucherexpress.co.uk/asp/moredetails_TEMPLATE.asp?name=moredetails&id=34&h=83&w=180&sz=3&hl=en&start=4&um=1&tbnid=hf6w9opbQIH80M:&tbnh=47&tbnw=101&prev=/images?q=NEXT++LOGO&svnum=10&um=1&hl=en&rlz=1T4GFRD_enIN243IN243http://images.google.co.in/imgres?imgurl=http://www.oss-in-atm.info/20051207/images/logos/Philips-logo.gif&imgrefurl=http://www.oss-in-atm.info/20051207/12-engelfriet.php&h=250&w=225&sz=3&hl=en&start=4&tbnid=6L0JQgqgovNKrM:&tbnh=111&tbnw=100&prev=/images?q=PHILIPS+LOGO&gbv=2&svnum=10&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://jschool.troy.edu/~jrn3350/storyboard-overview_files/image016.jpg&imgrefurl=http://jschool.troy.edu/~jrn3350/storyboard-overview.htm&h=112&w=156&sz=3&hl=en&start=14&um=1&tbnid=s3AErcQDKOpYNM:&tbnh=70&tbnw=97&prev=/images?q=VIDEOCON+LOGO&svnum=10&um=1&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.truthatonida.com/beta/images/comman_img/logo.gif&imgrefurl=http://www.truthatonida.com/beta/punarjanm/punar_landing.html&h=45&w=54&sz=1&hl=en&start=4&um=1&tbnid=6v3IFZ5nGpmlFM:&tbnh=45&tbnw=54&prev=/images?q=ONIDA+LOGO&svnum=10&um=1&hl=en&sa=Nhttp://images.google.co.in/imgres?imgurl=http://www.pc-outlet.hu/images/lg_logo.jpg&imgrefurl=http://www.pc-outlet.hu/&h=685&w=1499&sz=63&hl=en&start=5&tbnid=xjTIFCcLMz4ZFM:&tbnh=69&tbnw=150&prev=/images?q=LG+LOGO&gbv=2&svnum=10&hl=enhttp://images.google.com/imgres?imgurl=http://www.cosmicbschool.in/images/bpl-logo.gif&imgrefurl=http://www.cosmicbschool.in/placements.asp&h=71&w=68&sz=3&hl=en&start=5&um=1&tbnid=Rtt-tpDW6iJBmM:&tbnh=69&tbnw=66&prev=/images?q=BPL+LOGO&svnum=10&um=1&hl=en&rlz=1T4GFRD_enIN243IN243http://images.google.co.in/imgres?imgurl=http://www.cromaretail.com/images/common/i-logo.gif&imgrefurl=http://www.cromaretail.com/careers.html&h=81&w=195&sz=4&hl=en&start=2&um=1&tbnid=LzSAWymddZXwZM:&tbnh=43&tbnw=104&prev=/images?q=CROMA+LOGO&svnum=10&um=1&hl=en&sa=Nhttp://images.google.co.in/imgres?imgurl=http://www.atsc.org/sponsor_logos/Samsung-Logo-1.gif&imgrefurl=http://www.atsc.org/news_information/newsletter.html&h=935&w=2062&sz=38&hl=en&start=3&tbnid=34oXYBdfp2B71M:&tbnh=68&tbnw=150&prev=/images?q=SAMSUNG+LOGO&gbv=2&svnum=10&hl=en


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Career Prospects in FMCG


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Roles in FMCG


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Understand consumers

Set marketing programme optimally designedto build brand equity & drive sales

Create great consumer relevantinnovations

Manage segmentedportfolio

Create integrated communications

Set channel / outlet strategy

Bring brands to life& drive sales

Create clear and motivating brand vision

Measure and evaluate performance

Consumer Insight

Positioning

Category Mgmt

Brand Planning

Communications

Innovation

Channel

Bring to life

Measure

Roles in FMCG


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What do you need?

Competencies Curiosity

Empathy

Business mind Creative mind

Skills Analytical skills

Cross functional

thinking Process driven

Innovation


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Typical Organogram

PresidentSales & Marketing

GM - Marketing GM - Sales

Marketing Manager

Brand Manager ManagerBTL

Brand Executive - 1

National Sales Manager

Regional Manager - West

Area Sales Manager - 2

Sales Officer

CRM Managerr

Brand Executive - 2Area Sales Manager - 1

Market ResearchMedia

Alternate Career Paths


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1. Manager - BTLOrganizing Brand events and taking care ofvarious 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.



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2. Manager - Market Researchconstantly monitoring marketand 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.

Al C P h


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3. Client Servicing in Ad agenciesgives opportunity to learnabout different categories at same time.

1. Can be highly stressfulbut 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.


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Role Models

Vi i B li MD B i i


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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

1994joined Coca-Cola as worldwide Marketing Director for

the worldwide strategy for Coke, moved to Latin America 2005Britannia as CEO and in 2008 MD till date, shall exit in

March, 2014


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The Power Trio

Nitin Paranjape, Global Head, Unilever PlcsHome Care Business, D. Shivkumar,

MD & CEO, Pepsi Co (till June end) ,Mukul Deoras, Chairperson & Non-Executive

Director, Colgate-Palmolive Ltd


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Indra Nooyi,

Chairman & CEO, Pepsi Co

Rakesh Kapoor,

Chief Executive, Reckitt

Benckiser plc

USLP I i i i


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USLP Initiative

FMCG - Sector Overview

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