Ayush Singh

BBM 5
th
Sem.
117509
New Product Launching Strategies
of FMCGs Companies

Fast-moving consumer goods (FMCG) or consumer
packaged goods (CPG) are products that are sold
quickly and at relatively low cost.
Examples include non-durable goods such as soft
drinks, toiletries, and grocery items.
Though the absolute profit made on FMCG products
is relatively small, they generally sell in large
quantities, so the cumulative profit on such products
can be substantial.
FMCG
The success of an FMCG depends greatly on its
marketing strategy.
Typically a marketer pursues a wide combination of
strategies.
For instance when prices are competitive the
company would use an extensive distribution
network, design suitable advertising and sales
promotion schemes for time to time.
Introduction
ITC Ltd
HUL
Nestle (INDIA)
Godrej Consumer Products Ltd
Dabur India Ltd
GlaxoSmithKline Consumer
Healthcare
Colgate Palmolive
Marico Ltd
Emami
Procter & Gamble (India)

Top 10 FMCGs Companies In INDIA:
Market
Capitalization

256,769 crores
127,144 crores
49,768 crores
28,107 crores
27,261 crores
23,435 crores
18,329 crores
13,137 crores
10,788 crores
9,555 crores

Market Value: $233.5 B
Market Value: $208.5 B
Market Value: $173.1 B
Market Value: $153.5 B
Market Value: $150.6 B
Market Value: $122.3 B
Market Value: $118.9 B
Market Value: $102 B
Market Value: $51.2 B
Market Value: $29.9 B
Top 10 FMCGs Companies In World:
Nestle
Procter & Gamble
Coca-Cola
Anheuser-Busch InBev
Philips Morris International
Unilever
PepsiCo
British American Tobacco
Reckitt Benckiser Group
General Mills
Marketing of two or more similar
and competing products by the same firm.
A company often nurtures a number of brands in the
same category. There are various motives for doing this.
The main rationale behind this strategy is to capture as
much of the market share as possible by trying to cover
as many segments as possible, as it is not possible for
one brand to cater to the entire market.
This also enables the company to lock up more
distributer shelf space.
Example : Hindustan Lever . It has Dove in the ultra
premium segment, Lifebuoy for the economy segment
and brands like Rexona, Liril, Lux, Le Sancy for the
intervening segment.


1.Multibrand Strategy
Refers to the introduction of different combinations
of products at different prices, to cover as many
market segments as possible.
It is basically offering the same product in different
sizes and price combinations to tap diverse market
opportunities.
The idea behind this concept is to flank the core
product by offering different variations of size and
price so that the consumer finds some brand to
choose from.
Example: Vicks the cough and cold relieving
medicine is now available in small containers and
also as inhalers, cough drops and cough syrups.

2.Product Flanking
Companies make brand extensions in the hope that the
extensions will be able to ride on the equity of successful
brands, and that the new brand will stand in its own right in
the course of time.
A well respected brand name gives the new product instant
recognition and easier acceptance.
It enables the company to enter new product categories more
easily.
Example: Amul. With the success of its first product, Amul
milk powder, the company came out with Amul ghee, Amul
butter, Amul cheese, Cheese spread, and finally added Amul
chocolates to its portfolio.
3.Brand Extensions
Some companies add related new product lines to give
the consumer all the products he/she would like to buy
under one umbrella.
Example: Britannia has adopted a similar strategy. It has
introduced different kinds of biscuits and backed foods in
the past few years. By adding a number of flavours in
each product line the company grew in the industry.
4.Building Product Lines
A company can add new products through the
acquisition of other companies or by devoting ones
own efforts on new product development.
With the help of new products a company can enter a
growing market for the first time, and supplement its
existing product lines.
Example: Dove by HLL is an example of creating an
entirely new premium segment. For the first time in
India, a soap with One-fourth moisturiser was offered
to the consumer.
It has been positioned for the super premium segment
as a skin care product not as a soap.
5.New Product Development
In the FMCG market, the life of a product is short.
Marketers continually try to introduce new brands to
offer something new and meet the changing
requirements of customer.
It is prudent for a marketer to innovate from time to
time both by technological expertise as well as from
the consumers or dealers feedback.
Such innovations are tried out around the core
products of a company.
6.Innovations in Core Products
Many companies adopt a long term outlook towards
growth in an FMCG market. In the process, short term
gains which might adversely affect the long term
prospects of the company are sacrificed.
Example: Kelloggs in Mexico.
The concept of cornflakes for breakfast promoted by
Kelloggs is entirely American in nature and in Mexico
which is culturally so different from America, could not
accept.
Kelloggs with its long term outlook took 28 years before
finally breaking even. Today is the market leader in the
breakfast cereals market, enjoying an unparalleled
monopoly.
7.Long term outlook
Economic conditions change, competitors launch new assaults,
and the products encounters new types of buyers and new
requirements are situations in which a FMCG company try to
extend the PLC.
In the mature stage of the PLC, some companies abandon their
weaker products. They prefer to concentrate their resources on
their more profitable products and quickly develop new products.
Example: Existing models in products like automobiles,
motorcycles, watches and cameras in India have experienced a
good demand whenever new options were offered.


8.Extending the PLC
A company usually expands the market for its brand in two
ways, either to increase the number of customers or by
encouraging more consumption per intake.
The usage rate of the consumers can be increased in 3
ways :
1) It may try to educate or persuade customers to use the
product more frequently.
2) The Company can try to induce users to consume more of
the product on each occasion.
3) The company can try to discover new product uses and
convince customers to use the product in more varied ways.



9.Expanding markets by usage
A very simple way of increasing FMCG companys market
share is by developing a strong distribution network,
preferably in terms of more locations.
An extensive distribution system can be developed over
time, or the company many acquire another company
which has an extensive distribution network.
Example: Brooke Bond, Asian Paints, Hindustan Lever,
Union Carbide have developed a good distribution
network.
10.Wide distribution network
Companies spend considerable effort to find out the
what, where, how and when of their consumers.
Well known companies frequently undertake
marketing research to find out more about their
consumers and how to satisfy their needs and wants
in a better manner.
It helps them to monitor the pulse of their buyers.
Example: We may cite here the famous Marketing
Research about instant coffee.
11.Monitoring the pulse of the consumers
Advertising is required to build awareness about an FMCG
or brand which is available in the market but not many
people might know about it.
Informative advertising figures heavily in the pioneering
stage of a product category, where the objective is to build
primary demand.
Persuasive advertising becomes important in the
competitive stage where the objective is to build a
selective demand for a particular brand.
Reminder advertising is quite common with mature
products.
Example: Expensive four colour Coca-Cola ads
in magazines tries to remind people to
purchase it.
12.Advertising and Media coverage
Sales promotions offer a direct incentive to buy more
in the short term.
They are designed to stimulate quicker and/or
greater purchase of particular products by
consumers or the trade.
Example : Pepsi has been doing a large amount of
promotions since the time it entered India. Pepsi
cassettes and T-shirts have been offered to young
people all over the country.
13.Sales promotion