MARKETING OF FMCG AND

CONSUMER DURABLE GOODS

USING STRATEGIES OF BLUE AND
RED OCEAN
 Presented By:-
GROUP 9:- Group 3:-
Vandana Malpani Vandana Ghanshani
Priyanka Dhoot Manoj Varma
Narender Saini
Nadeem Usmani
Rahul Gupta
Jitendtra Mishra Kinjal Rathod
Santosh Sarvankar Sachin Sharma
 The Strategic Planning
Strategic Planning is a comprehensive statement and it is
broadly classified into 4 phases:

PHASE 1 PHASE 2 PHASE 3 PHASE 4

Strategy Strategy Strategy Strategy
Formulation Development Implementation Evaluation

Develop mission & Conduct SWOT, Establish short-term Review strategies,

vision statements establish long-term objectives, develop measure
and define objectives, & action plans, allocate performance and
organizational identify strategies resources and take corrective
values motivate employees action
 ORGANIZATIONAL
SUSTAINING CHANGE
INNOVATION

Trust Teams
Strategic
Thinking

Leadership

SOCIETAL DISRUPTIVE
CHANGE INNOVATION
 Sustaining Innovations
 Represent the majority of technological and
business model innovations within most industries.

 Examples of strategies include Intel’s continued

development of faster microprocessors.
 Sony’s pursuit of next generation Walkmans.

 These innovations always help established players

sell more products and earn more profits.

 Example:- Notebook Computers, Wireless

Telephone, Printed Greeting Cards.
Disruptive Innovations
 Disrupt and redefine products and services that
are not as good as those currently available.

 These types of innovations are typically simpler,

more convenient, and often times less expensive
as compared to current offerings.

 Examples- Downloadable Greeting Card’s,

Mobile Telephony, Digital Printing.
Blue Ocean Strategy  Blue Ocean Strategy is a business strategy book written by W. Chan Kim
and Renée Mauborgne.

 Create uncontested market space/untainted by competition.

 Make the competition irrelevant.

 Create and capture new demand rather than fought over.

 Breake the value/cost trade off.

 Align the whole system of a company’s activities in pursuit of

differientiation and low cost.

 The corner-stone of Blue Ocean Strategy is 'Value Innovation’.

 Examples: Tata Nano, Kaya Skin Clinic, Red BullBlue Ocean

•Effort to bake a bigger pie.
 Blue Ocean Strategy
1 LENSES Think total customer
4

Investigate market
boundaries. Look at solution.
alternative/related Think about what is
industries, e.g. circus and happening before, during
theatre. and after the product is
used.
2 5

Look at ‘strategic groups’ Blue Ocean Make a buyers

within an industry segmentation: emotional or
(=companies pursuing a functional.
similar strategy). If emotional then add
functionality. If functional
then add emotion.
Dish TV ,insurance
3
ads,johnson johnson,Surf
Revise customers.
Buyer, user, influencer etc.
 Blue Ocean Strategy Execution Key
Principles
Build execution into Consider risks in everything
strategy. (Should be you do.
realistic ,should be A drink to compete with
impelementable) areated drink may or may
EG : Red BULL not work
Blue Ocean Failure example : Blue
Pepsi.

Highlight and manage organizational Visual communication.

hurdles e.g. change of culture.
Instead of considering an areated
drink an energy drink being accepted
whereas indians consider eneergy in
healthy eating habits so changing the
culture
May consider as an alcholic drink till it
reaches to mind of the end consumers
An effective blue oceans strategy
has three complementary
qualities:
Focus

Divergence

Compelling tagline
Value Innovation
 Should Monitor your  TotalSolutions to
competitors but don’t use customers problem
them as benchmarks.
Cost
 Competing should be
eliminated.
Value
 Don’t offer product and or Innovation
service features just
because the competition is Buyer Value
doing so.

 Think fresh: what should

be starting new today?
 Example of value innovation

Vicco Turmeric

Kailas Jeevan Ayurvedic Products

Vicks Vaporub
How to find new Value Curve
Four Actions Framework:

Eliminate
◦ Which of the factors that the industry takes for
granted should be eliminated?
Reduce
◦ Which factors should be reduced well below the
industry's standard?
Raise
◦ Which factors should be raised well above the
industry's standard?
Create
◦ Which factors should be created that the industry
has never offered?
Circus Industry
Traditional Circus:  Target Market :
Adults
 Target Market :  Not dependent to Star
Children performance & animal
 Dependent to : Star shows
performance,animal  Reduce fun & humor
shows  Reduce thrills &
 High fun & humor dangers
 High thrills & dangers  Unique Venue
 Theme & Theater
 CIRQUE another snapshots of
this tool in action and shows what
it reveals.
ELIMINATE RAISE
 Star performers  Unique Venue
 Animal shows
 Concession sales
 Multiple show arenas

REDUCE
CREATE
 Fun & Humor
 Theme
 Thrill & Danger
 Refined environment
 Multiple productions
 Artistic Music & Dance
Examples of blue ocean strategy
 Red Bull Energy drink changed the way people use to see
the Colas.(carbonated soft drinks).
 Nestlé's Instant Coffee.
 Dove soap(P&G) - made of 100% moisturisers.
 Himalaya Drugs: They created an entirely new market of
consumers who prefer medically proven herbal medicine.
Following t heir lead, all FMCG majors came out with their
own little herbal range.
 I-phone.
 Sony Walkman.
 Reva Electric car.
 Tablet pc with touch screen.
  Compete in existing market space
(war for marketshare).
Red Ocean Strategy
 Industry boundaries are defined and accepted.

 Market space gets crowded, prospects for profits and growth are
reduced.

 Products become a commodities and cutthroat competition turns

the red oceans bloody.

 Beat the competition. Red Ocean

 Exploit demand. •Fight for the biggest piece of the pie.

 Make the value/cost trade off.

 Align the whole system of a company’s activities with it’s strategic

choice of differientiation or low cost.

 Examples: Parle, Fritolay,Pepsi

Red Ocean Strategy
Assumes that an industry’s structural conditions
are given and that the firm are forced to compete
within them. Red Oceans will continue to dominate
company’s strategic agenda even as the business are
eager for creating blue oceans takes on new urgency.
Examples explaining Red Ocean
Strategy
 SkinCare in India: In service industry. Marico
started Kaya Skin Clinic which has turned a red
ocean.

 Star bucks coffee shops, Café Coffee Day, Barista

 Horlicks, Bournvita, Complan

 Telecom Vodafone, Airtel now is spice

 TVchannels (promotion could be different like

colors)
Red Ocean Strategy Blue Ocean Strategy
Companies from Red to Blue
 Nintendo has stated that the Wii ,7th generation video game console April
27th 2006. The system is unique in that will be cheaper than the PS3 and
Xbox 360, with the basic Xbox 360 at $299 USD and the basic PS3 at
$499 .The system is unique in that the console's controller, can detect its
position and orientation in three-dimensional space.

 Dell Computers Customize laptops.

 Nirma Cheap washing powder when surf existed by HLL.

 Women Kelloggs(weight reduction).

 Calcium Sandoz for Women(stronger bones and teeth).

 Women Horlicks(energy drink).

What is FMCG…
1. Fast moving consumer goods.
2. Goods that is consumed every day by the
average consumer.
3. Goods need to be replaced frequently,
compared to those that are usable for
extended periods of time.
The sector includes
1. Groceries,
2. Beauty products,
3. Home care companies.
4. Cleaning products.
Cont.....
4. Products sold quickly at relatively low cost.

5. Profits made on FMCG products is relatively

small, they generally sell in large quantities, so
the cumulative profit on such products can be
large.
Durable Goods
A durable good or a hard good is a good which
does not quickly wear out, or more specifically, it
yields services or utility over time rather than
being completely used up when used once.

 Perfectly durable goods never wear out. Eg :

Brick
 Durable goods are typically characterized by long
interpurchase times--the time between two
successive purchases.
It Includes:
1. Cars,
2. Appliances,
3. Business equipment,
4. Electronic equipment,
5. Home furnishings and fixtures,
6. Houseware and accessories,
7. Photographic equipment,
8. Recreational goods,
9. Sporting goods,
10.Toys and games.
What do companies do for a blue ocean strategy?
Eg: Tata Nano
 Critizimize that it can Raise  Purchase Cost
never be made Family Car (Taxi ko karo
 India never the right What factors
tata).

should be
skills ,physical and social raised well
infrastructure for their beyond the  Parking Space
worlds low cost car industry
standard?

Eliminate Create
What factors What factors
should be should be
eliminated that created that the
the industry has industry has
taken for never offered?
granted?
 Low Price Car never
introduced.
Reduce
 Repairs & Maintenance  Prestige at low
 Running Costs What factors should price(pride of the 1 car)
st
be reduced well
below the industry
standard?
Case Study Of Red ocean Strategy Eg:- Maruti
Suzuki (Consumer Durable)
 While the customers expect their cars to be reliable, fuel efficient, with low cost of
ownership, requiring affordable spare parts and service network, at the same time they
look for cars that are trendy, stylish and contemporary.

 Maruti and Suzuki’s strategy has been to widen the offerings for the Indian customers.

 A wide product range with superior features, is helping the company to tap entry-level
customers and yet meet the evolving lifestyle needs of the customers who are looking to
upgrade.

 “Complete Car Maker”.

Product
Portfolio
 Under Rs. 3 Lakhs : Entry level / small cars: Maruti 800, Alto, Omni
 Rs. 3-5 Lakhs : Utility cars: Maruti Zen, Wagon R, Versa
 Rs. 5-10 Lakhs : Midsized cars: Swift, Maruti Baleno, Esteem
 Rs. 10-20 Lakhs : Luxury / Sports (SUV) cars: Grand Vitara
 What do companies do for a blue ocean strategy?
E.g.: Nestle Instant Coffee(Cold and Hot Coffee)
• Never thought that • Same Quality at
consumers would accept Raise low price
it  What factors • Easy Packaging
More prone to traditional should be with zip lock
methods of making raised well
beyond the
coffee industry
standard?

Eliminate Create
What factors What factors
should be should be
eliminated that created that the
the industry has industry has
taken for never offered?
granted?
• Easy to Carry
(Sachets)
• Change the standards Reduce • Instant Coffee saves
of making coffee. time and less of
• Overheads costs What factors should
preparation with same
be reduced well
reduced with same taste below the industry taste .
and quality standard?
HALDIRAM’S
 Cont…
 Supermarkets , Provision stores , Bakeries, Sweet Shops ,

Ice cream parlors , etc.

 Public places like Bus & Railway stations.

 Direct -Marketing through E-Commerce.

at National websites.
indiatimes.com
at Regional Specific websites.
mumbaiflowergifts.com (for Mumbai)

Reasons for Easy Availability.

Different Promotion Tools Used

 Enhancing the visibility of Haldiram Brand

 Using touchy punch lines

 Attractive packing

 Benefits of technology used

 Being Innovative
THE ROAD AHEAD
 Competition in ‘Ready -to-Eat’ snack foods intensified.

 Faced competition from

Foreign players:
 Frito Lay India Ltd
 SM Foods

Domestic Players:
 Britania Industries Ltd
 Bikanerwala Foods
THANK YOU