SWOT & PEST OF FMCG SECTOR COMPANIES

PRESENTED BY:AMAN PACHISYA M.B.A -M.I.T -FINAL YEAR

OBJECTIVE UNDER STUDY

To study the product differenitation of fmcg company. To study the marketing strategy of each company. To study the Swot & Pest analysis of fmcg sector company.

INTRODUCTION
One of the fastest growing sector. Deals with fmcg products or first moving consumer goods. Principle constituents are household care, personal care , food & beverages. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capital consumption and intense competition between the organized and unorganized segments. Indias fmcg sector is 4th largest Sector in the economy and contribute to around 3 million employment opportunities. The dream of every creative man, any investor, advertising agency, or B-school graduate to work in or for FMCG company.

SECTOR OUTLOOK IN INDIA

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.

FMCG sector will witness more than 60 % growth in rural and semi-urban India by 2010. Indian consumer goods market is expected to reach $400 billion by 2010. FMCG market in India is growing at a fast pace despite of the economic downtrend. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD 30 billion in 2012. FMCG Charaterized by Market Potentiatily.

Swot of Fmcg sector

Pest of Fmcg sector

1. 2.

GST Regime Transportation and infrastructure development in rural areas helps in distribution network. Restrictions in import policies. Help for agricultural sector

1. GDP rate increase along 2. Increase in disposable income at 10 % annually for next 8 yrs. 3. Indian FMCG Recorded 16% Sales Growth in Last Fiscal. 4. The FMCG sector is a 4th largest sector of Indian

3. 4.

1. Rural employment 2,Volume-driven growth in rural market.

1.Technology has been simplified and available in the industry.

3.Major young population can increase revenue .

4.The Indian culture, social & life styles are changing drastically

2. Foreign players helps in high technological development.

Advantages To The Sector

I.Governmental Policy.
II. Central & State Initiatives. III. Foreign Direct Investment (FDI). IV. Market Opportunities Vast Rural Market.

Sectoral Opportunities:-

I. Dairy Based Products.

II.Packaged Food. III. Oral Care. IV. Beverages.

Global Players

Company Prospects:---

Founded :1933 Mission: Unilever's mission is to add Vitality to life. Headquarters: Mumbai, India Type: Public company

HUL is the largest Packed Mass Consumption Goods company in India. It is the leader in home and personal care products and food products. HUL is the leader with market share of ~53 per cent; Hindustan Unilever Limited is the biggest producer of Personal wash and detergents

Founded: 24 August 1910 MISSION : Working for you.Working for India. Headquarters: Kolkata, India Total Revenue: 26,259.60 crores (2010) FMCG Revenue: 20,924.71 crores (2010) . More facts: ITC ranks among India's 10 Most Valuable (company)Brands. ITC is one of India's foremost private sector companies. ITC believes in Touching your life. Everyday ITC now offering more margins, exiting offers and long credit period to retailers and Wholesalers

Founded 1884 Founder(s) Dr. S K Burman. Headquarters: Sahibabad, Ghaziabad. Distrbution network:4000 Distributors in India. Retail Reach-2,500,000. 5 Umbrella Brands. 350+ products. 4000 employees. 15 Manufacturing Plants, Dabur is Indialargest Ayurvedic medicine manufacturer Largest Herbal & Natural Portfolio

Cadbury India Established in India: 1948 Cadbury. Mission Cadbury in every pocket Manufacturing facilities at: 1) Thane, 2) Induri (Pune), 3) Malanpu(Gwalior),4)Bangalore 5) Baddi (Himachal Pradesh) Operates in India in 4 categories viz. 1)Chocolate confectionary 2)Milk food drinks 3)Candy 4)Gum

Procter & Gamble Co.

P&G: is a Fortune 500, American multinational corporation headquartered in Cincinnati, Ohio, that manufactures a wide

range of consumer goods

PVP (PURPOSE,VALUES,PRINCIPLES)
I. PURPOSE Branded products & services of superior quality & value to improve the lives of consumers

II. VALUES
TRUST LEADERSHIP PASSION FOR WINNING III. PRINCIPLES SEEK TO BE THE BEST FOCUSSED IN WORK RESPECT FOR INDIVIDUALS

1.LARGE MARKET SHARE HINDUSTAN UNILEVER I T C 2.STRONG BRAND STERNGTH 1L.ARGE MARKET SHARE 1.STRONG BRAND 3.LEADER IN RURAL MARKETS MANAGEMENT 2.STRONG BRAND 4.LARGEST EXPORTER 2.DIVERSIFICATION
SWOT ANALYSIS 3.LEADER IN RURAL MARKETS 4.LARGEST EXPORTER 1.NOT FOCUSSED ON HIGHER CLASS PEOPLE 2.MIMICS OF BRANDS 3.ENTRY OF ITC 4.TAX & REGULATORY STUCTURE OPPURTUNIT 1.INCREASING Y CONSUMPTION PATTERN 2.CAN SWITCH TO DIFFERENT SEGMENTS 1.TAPPING RURAL MARKET 2.MERGER 3.E-CHOUPAL 3.SUSTIANIBILITY AND CSR PROGRAMMES

CADBURY 1.STORNG BRAND IMAGE 2.POSITIVE PERCEPTION 3.WORLD LEADER IN CHOCLATES

DABUR 1.STRATERGIC PARTNERS 2.WORLDWIDE COVERAGE 3.100 YEARS OF EXPERIENCE 1. NO RETAIL OUTLETS NO DOORSTEP DELIEVERY

PROCTEL & GAMBLE 1.VAST EXPERIENCE IN ORAL & PERSONAL HYGIENE. 2.STRONG BRANDING 3.P&G INVEST IN R&D 1.BEAUTY & HEALTH CARE PRODUCTS FOR WOMEN. 2. P & G DOES NOT DIVEST ITS WEAK OR POOR BRANDS. 1. HEALTH&BEAUTY PRODUCTS FoR MEN. 2.USING ONLINE SOCIAL NETWORKS &INTERNET MARKETING TECHNIQUES

WEAKNESS

1.ITC IS STILL MORE DEPENDEND ON TOBACCO REVENUES.

1.LOW PENETRATION IN RURAL MARKETS

2.PEOPLE AVOID CHOCLATE 2. 2.HEAVY TAXATION POLICIES BECAUSE OF EGG INGEDIENT 3.HIGH PRICED BRAND 1.CAN TAP BECAUSE OF HUGE POPULATION 2.CHANGING TASTE AND PREFRENCES

1.OVERSEAS DEALERSHIP 2.HUGE EXPORTS

3.POTENTIAL FOR MAKING

4.STRONG BRAND IMAGE

4.FRANCHISEE

THREAT

THREATS FROM HIGH CLASS 1.HEAVY TAXES IN COMPETITOR CIGRATTES P&G ITC 2.MORE COMPETITORS DABUR MARICO

1.NO BRAND LOYALTY

1.KERELA-HUB OF AYURVEDA

1.COMPANY IS CONSTANTLY TRYING TO PURSUE GROWTHOVERSEAS. 2.CUT THROAT COMPETITION

PEST ANALYSIS POLITICAL

HINDUSTAN UNILEVER

ITC

CADBURY

DABUR

PROCTEL& GAMBLE

1.CHALLENGING 1.100% FDI ALLOWED . 1.INCREASED TAXES 1.TAXATION ENVIRONMENT ON CHOCLATES POLICY WITH RESPECT TO 2.BAN ON COMMUNICATION 2.ENVIRONMENTAL GOVT REGULATION OF TOBACCO ADS 2.GOVT CONCERN PROTECTION LAWS TAXATION FOR OBESITY 3.HEART PROBLEMS

1.HIGH BARRIERS TO ENTRY ARE ERECTED BECAUSE NEW ENTRANTS.

1.TOP THREE ECONOMIC PRODUCERS

2.TOP TEN EXPORTS 3.2.3 MILLION DEPENDEND ON LIVELIHOOD 1.GROWING CONCERNS FOR TOBBACO . 2.CONSUMPTION RESTRICTIONS ON PROMOTION

1.PROFIT MARGIN IS HIGH

2.OTHER FORMS OF CHEAP TOBACCO INTAKE

1.NEED LOW 1.INFLATION INTEREST RATES FOR BORROWING 2. DISPOSABLE INCOME

1 .RESISTED CUTTING PRICES BECAUSE OF FACTORS SUCH AS HIGH COMMODITY COSTS AND A FEAR OF HURTING ITS BRANDS' IMAGE OF SUPERIORITY.
1.RESPOND TO CONSUMERS DESIRES IN TERMS OF QUALITY AND INNOVATION

SOCIAL

1.BECOMING STATUS SYMBOL. 2. CHANGING ATTITUDES TOWARDS TOBACCO . 3.CHANGE IN LIFE STYLE 1.CHEAP LABOUR SUPPLY. 2.ADAPTING OTHER CONCEPTS LIKE QC,TQM ETC.

1. NEWS TRENDS IN 1.DEMOGRAPHICS SNACKING 2. HEALTH CONCIOUS 2..LIFESTYLE PEOPLE CHANGES 3.LEVELS OF EDUCATION 1.NEW MACHINERY FOR PRODUSTION NEW TECHNOLOGY 1.NEW DISCOVERIES AND INNOVATIONS 2.SPEED OF TECHNOLOGY INTERNET

TECHNO-LOGICAL

1.INVENTORY CONTROL 2. HIGH-TECH LOGISTICS TECHNOLOGY

1. DEVELOP AND INVEST IN NEW TECHNOLOGIES., 2.P&G IS MAKE THE DIFFERENCE, IT SPENDS $5 MILLION PER DAY FOR R&D.

Recommendation
Cadbury Cadbury focuses on choclates no dietary Options for heath concious people. Cadbury should continue to promote itself as substitute to mithai. Cadbury should introduce new flavors like strawberry,orange,vanilla etc . Dabur Increasing customer awareness & education regarding the Ayurvedic Dabur products. More advertisements should be there focussing on the products, their mode of usage & benefits. Packaging relative to the pricing should be improved and trial packs should be promoted . Dabur isn't the category leader in any of the consumer product categories where it has a presence: it is No. 4 in shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps.

Proctel & Gamble IT should continue to manufacture products that are less harm to environment issues. Hindustan Unilever It can switch to new brands in segments like confectionary ,medicines etc. diversification. HUL Has dominated Indian markets in various segments over the years through its product quality and wide distribution network but it has to find out new ways and strategies to tackle competition as various other competitors like Colgate, marico, ITC etc.

ITC Must not be dependend on tobacco segment as it causes health problems.

CONCLUSION
Despite inflationary pressures sale of FMCG products is not adversely affected due to price hikes because demand for these products can never shrink and there is also a scope for FMCG companies to gain through product diversification and introducing new variants of the existing products. FMCG Companies mostly produce labor intensive products and not capital intensive. The FMCG environment in India and overseas is competition intensive and companies need to focus on branding, product development, distribution and innovation to ensure their survival. More and more people these days have started involving themselves in this field as; it creates tremendous job opportunities for them. It is a steady, diverse and a highly profitable industry where a person can do a lot of work. The jobs in this field range from sales and supply chain, investment, promotion, H.R development, and general management. It also allows you to trade directly with the various traders online.