By Team Members:Members:1. 2. 3. 4. 5.

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A Sindhuja (12PGP001) Arnab Roy (12PGP008) Bir Bahadur Singh (12PGP014) Komal Billu Kujur (12PGP021) Sathiyasundaram T (12PGP038)
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Indian Institute of Management Raipur

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FMCG

__ABOUT THE SECTOR

Quick Turnover and relatively low cost

(soaps , toothbrush, chocolate etc) Fourth Largest US$ 13.1 billion Burgeoning population + middle class + rural class = huge market MNCs , Unorganized, Organized , Distribution Competition Inelastic demand for addictives (constant revenue ITC )
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PLAYERS

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Indian Institute of Management Raipur

AND MANY MORE. 3

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Others, 2% Tobacco, 15%

MARKET SCENARIO
Market Cap (in Rs.'000Crore)
160 140 120 100

Food & Beverages , 53%

Personal Care, 20%

80 60 40 20

Househol d Care, 10%

Market Cap (in Rs.'000Crore)

Constituents Segmentation
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Market Cap Distribution

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Indian Institute of Management Raipur

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MAJOR PLAYERS
Founded Head Quarter Chairman CEO Revenue Employees Parent company 1932 Mumbai Harish Manwani Nitin Pranjape 22,116 crores(2011-2012) 16,500(2011) Unilever Plc (52%)

Founded Head quarter Chairman CEO Revenue Employees

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1837 Cincinnati,USA Robert A. McDonald Robert A. McDonald $82.55 billion (2011-2012) 129,000(2011)
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Founded Head quarter Chairman CEO Revenue Employees

MAJOR PLAYERS
1867 Vevey, Switzerland Peter Brabeck-Letmathe Paul Bulcke CHF 83.64 billion 328,000

Founded Head Quarter Chairman CEO Revenue Employees

1910 Kolkata Yogesh Chander Deveshwar Yogesh Chander Deveshwar US$ 7 billion(2010) 29,000

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Indian Institute of Management Raipur

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MAJOR PLAYERS

Founded Head Quarter Chairman CEO Revenue Employees

1884 Ghaziabad Anand Burman Sunil Duggal US$ 1 billion 3000

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COMPETITIVE PATTERN

Generic Pizza Burger Homemade food

Form Cakes Chips Chocolates

Industry Britannia Parle ITC

Brand Bourbon Milk Biscuits Marie Krack-Jack

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Indian Institute of Management Raipur

BISCUITS

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STRENGTH:1. Low Operation Cost. 2. Established Distribution Network. 3. Presence of global players.

SWOT ANALYSIS
OPPORTUNITY:1. Vast untapped Rural Market. 2. Rising Income Level. 3. Export Potential

WEAKNESS:1. Low intervention from technology. 2. No entry barrier so everyday a new product comes into the market.
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THREAT:1. Tax & Regulatory Structure. 2. Illegal mimic of the label.

Indian Institute of Management Raipur

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ANALYSIS HUL ITC *Strong & experienced management *Strong Brand presence *Diversified products *Excellent R&D facility *HR Pool *Dependent on its tobacco revenue *Hotel industry has not producing large market share Strengths *Variety of product *Distribution Network *Brand image *Quality management *Innovation and R&D Weakness *No big impact on rural area *Competition from its own brand (lux,Liril) *No focus on upper class population

SWOT ANALYSIS
Nestle *Strong Brand. *Ability to customise Product. *R&D ability. *Strong operation with diversified revenues base *Product recall Hampering Brand and equity Dabur *Worlds largest Ayurvedic medicine provider distribution network *Powerful brand ambassadors *Extensive supply P&G *Strong brand image *Innovation &R&D *Diversified product portfolio *Strong distribution network *Global operation *No big impact in rural area *Dependence on wall-mart stores for majority of its revenue *Over dependence on mature market like USA and western countries *Quality control problem.

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*Uneven Profitability across different Product lines. *No direct company outlets. *Various products under the same product line *Peoples preference of allopathic over Ayurveda. *Low R&D work. *Lack of Marketing Strategy. *Online presence is low. Indian Institute of Management Raipur

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ANALYSIS Opportunity HUL *Huge market *Increasing per capita income Social initiative *Rural market still untapped *Westernisation of life style

SWOT ANALYSIS (Contd)

ITC *Tap rural market & increase penetration in urban area *Merger and acquisition to strengthen the brand Nestle Transactional to a Nutrition & well Being company *Booming out focus of home eating market *Focus on developing and emerging economies Dabur *Huge Market. *Increasing per capita Income. *Growing demand of health supplements. *Rural Market still untapped. *Various other campaigns in the support of Ayurveda. Decrease in Taxation *Emergence of Other Players. *Youths attraction to western life style. *Growth in Tobacco sector where Dabur is not present at all. *Increasing Cost of Raw Materials. P&G *Acquisition &resultant value generation *Growing Indian FMCG market *Expansion in developing markets

Threats

*Emergence of other players *Tax and Regulatory structure *Scepticism about MNCs *Increasing cost of Raw materials

*Strict govt rule & policies regarding cigarettes *Increasing competition among FMCG companies *FDI in retail market

*Compliance issue resulting in penalty payments *Allegation of unethical business activities *Macro economic factors

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Indian Institute of Management Raipur

*Emergence of other players *Regulatory environment *Global economic condition *Increase in the cost of raw materials *Over dependency on technology infrastructure 11

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STATUS HUL Axe Vaseline petroleum jelly Lux. Sunsilk. Fair & lovely. Ponds Kissan ketchup. Surf excel. Annapurna atta. ITC Cigarettes CASH COW

BCG ANALYSIS
Nestle Ceralac Dabur Chayawanprash Hajmola Amla Vatika Real fruit juice. Active fruit juice. Dabur red tooth paste P&G Ariel Vicks Tide Gillett Pantene Head and shoulders Pamper Whisper

STAR

Paperboards / packaging. Agri business.

Nescafe Maggi noodles

QUESTION MARK

Rin Pepsodent Domex

Automotive Furniture Financial Tobacco Food

Milo Kitkat/Munch Maggi soup Neltle butter Nesvita Nestle Maggi Nestle butter

Odomos Sanifresh Oxylife facial

Olay

DOG
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Wheel. Sunlight.

Nestea ITC infotech. Milky bar Nestle crunch Indian Institute of Management Raipur

Dabur gulabari Burst fruit juice Dabur meswak.

Wella
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Perfect stores
Improved availability & visibility 16000 perfect stores in 130 towns

SUCCESES

Enhancing livelihoods
Project Shakti

Colgate Bright smiles, Bright futures

Oral Health Educational Program

ITC e-choupal
Metamarket setup

Classmate notebooks
Re.1 donation
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Moti soap
Power brand strategy of HUL Decrease in premium soap market

FAILURES

Ponds toothpaste
Wrong selection of territory

Binacas acquisition
No stress on promotion

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Indian Institute of Management Raipur

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Name HUL P&G NESTLE DABUR ITC
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E-Commerce
Status
The time for e-commerce has not come in India especially for FMCG market

urveda.com

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Societal marketing
HULs Asha Daan

Marketing Techniques

Ambush marketing
Doves promotion just before the launch of Pantene

Viral marketing
Bingos Contest2win

Green marketing
ITC Farm forestry

Buzz marketing
Maggi guess the taste campaign.

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Planning Time

Consumer Behavior
Very Short

Buying Decision
Almost Instant

Influencing Media
TV Commercial mostly

Brand Loyalty
Not much
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Attributes

STP(Major Brands)
USP
Lifebuoy(HUL) Healthy hoga Hindustan Lifebuoy provides 100% better protection from germs as compared to ordinary soaps Personal Care Soap, Hand Sanitizer, Hand Wash Navy Cut (ITC) Made for each other Priced at the deep discount level Real (Dabur) My Real Fruit Power Fruit flavored health drink Tide (P&G) White hai to Tide hai Provides good whitening and fragrance at low price People who have fixed budget for household things like detergents and look for economical options Women ages 18 to 54 years old, middle classes Maggi (Nestle) Taste bhi health bhi Can be cooked and prepared in 2 minutes

Tagline

Segment

Medium priced cigarettes

For all people seeking a healthy fruit based drink for regular occasions, parties

People looking for a healthy snack when hungry

Target Group

All households, to provide a 100% antibacterial soap for complete protection

Adult as well as the youth smokers. It extended beyond the SEC A

All age groups Lower, middle and upper class people

Young people and children from upper and middle class

Positioning

category to the SEC B as well Lifebuoy's goal is to Combines smooth A fruit juice made provide affordable and flavour with 'cool', from real fruits accessible hygiene and unique packaging at a health solutions price that is more affordable for today Indian Institute of Management Raipur

Product which has all the qualities required from a detergent-quality, fragrance and low price

Tasty and healthy snack which can be prepared in 2 minutes

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Product Life Cycle for LUX soap

Product Life Cycle (PLC) of any product generally has four stages namely Introduction, growth, maturity and decline as shown in the figure below.

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Indian Institute of Management Raipur

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Different stages of Product Life Cycle

Introduction stage: Product branding and quality level is established. Pricing may be low to penetrate the market Distribution is selective until consumers show acceptance of the product Promotion is aimed at early adopters and potential customers about the product

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Indian Institute of Management Raipur

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Different stages of Product Life Cycle

Growth stage: Product quality is maintained Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channel is added as demand increases. Promotion is aimed at a broader audience

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Different stages of Product Life Cycle

Maturity stage: Product features may be enhanced to differentiate the product from others. Pricing may be lower because of competition. Distribution becomes more intensive. Promotion emphasizes product differentiation.

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Different stages of Product Life Cycle

Decline stage: Maintain the product possibly by adding some new features or finding some new uses. Harvest the product- reduce the costs and continue to offer it. Discontinuing the product and liquidating inventory or selling it to other firms who is willing to continue the product.

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Indian Institute of Management Raipur

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Current scenario of Lux

Lux is currently in the decline stage of its life cycle The reasons for decline of Lux are Unilever products are in over 100 countries and as a result they are exposed to adverse currency fluctuations. Huge competition from other soap brands Due to the economic downturn in 2008-09 people started looking for cheaper brands and sales of Lux declined.
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Product Life Cycle for Maggi Noodles

Introduction: Launched in 1982 by Nestle India Created new category in packaged food market called instant noodles market

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Indian Institute of Management Raipur

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Current scenario of Maggi

Maggi is currently in the maturity stage of PLC and it is facing tough competition from other brands. Following measures need to be taken to prevent it from going down to decline stage of PLC Change product image Change product use Change product positioning Change product variants

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Indian Institute of Management Raipur

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NESTLE

New Products
ITC

HUL

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SKIN CARE BABY CARE Dabur Ayurvedic Babycare Hair care

Product Mix
PRODUCT MIX FOR DABUR Oral care Health Care

Gulabari SkinCare PRODUCT LINE LENGTH Herbal & Medicated Soaps

Dabur Vatika Shampoo

Dabur Red

Dabur Chyawanprash

Vatika Hair Oil

Babool

Dabur Honey

Dabur Amla Hair Oil Dabur Anmo

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Promise Meswak

Dabur Glucose Real Fruit Juice

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Advertising Personal Selling Discounts Pure it - Door to Door selling Lux - Gold coins

Promotion Mix
Sales Public Relation Promotion Supporting CRY (NGO) Direct marketing Sunfeast Billboards

ITC

Classmate - "Because you are one of a kind" Surf Excel - "Daag Achey Hain"

HUL

Lakme fashion Kissan Squeezo week Billboards

Dabur Real Active - "Purani Jeans" Nestle Polo - "A mint with the hole" P&G P&G -"Proud sponsor of mom" -

Fem - Free Dabur gulabari Vatika business with Fem centre Maggi"Discount on lage packets" Everyday Low pricing

Real active Billboards Kitkat Billboards Pantene Billboards

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Nestle Pure Life drinking water -

Meri Maggi Campaign Sponsor of Olympics

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Indian Institute of Management Raipur

Distribution Channel
HUL
CARRYING AND FORWARDING AGENTS

REDISTRIBUTION STOCKIST

WHOLESALER

RURAL RETAILER

URBAN RETAILER
CUSTOMER

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Indian Institute of Management Raipur

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Marketing Plan For Ariel

Introduction: Ariel was launched in 1991 by P&G India The Enzyme technology Smart Eyes technology Compact detergent technology Wide range of fragrances Variants of Ariel:Ariel Front-o-mat Ariel Fresh Clean Ariel Oxyblu Ariel Ultramatic Ariel Spring Clean
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Segmentation of detergent market in India

Detergent powder Market

Premium Ariel Ultramatic, Spring Clean, Surf Automatic, Quick wash

Mid-Priced Surf Excel Blue, Tide, Stain Champion

Mass Market Ghadi, Wheel, Sunlight, Nirma

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SWOT Analysis of Ariel

Strength
1> P&G brand name 2> 1st detergent to introduce different fragrances 3> The use of enzyme technology

Opportunity
1> A big untapped rural market 2> Rs. 5700 crore detergent market

Weakness 1> poor promotional

strategy 2> Low Advertisement recall value 3> Improper pricing strategy
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Threat
1> Huge competition from other brands 2> Spurious/counterfeit products in rural area
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Indian Institute of Management Raipur

Suggestions about new product launch

Ariel Quick wash: For removing stains immediately Ariel Silk: For silk and delicate clothes Ariel Bar: For competing with Surf Excel bar, Rin bar etc. Ariel Smart: For woolen clothes and blazers
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Recommendations for market penetration

Offering lucky draw coupons with a sure prize to be won inside the pack to attract customers Creating a strong distribution chain to reach the interior parts of India Offering higher incentives to distributors Roping in Yuvraj Singh and his mother for endorsement Penetrate to the mass market by introducing low price variant. 9/29/2012 Indian Institute of Management Raipur

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References
http://www.wikipedia.com/ http://www.mbaskool.com/ http://www.hul.co.in/ http://www.scribd.com/ http://www.pg.com/en_IN/ http://www.nestle.in/ http://www.itcportal.com/ http://www.dabur.com/default.aspx http://www.slideshare.net http://articles.economictimes.indiatimes.com http://www.itcgreenpapers.com/With_forestry__ITC_has_linked_CSR_to_biz___ Financial_Express_182.aspx?NEWS

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THANK YOU
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