1. 1
FAST MOVING CONSUMER GOODS
PRESENTED BY
MRIDUL DOHUTIA
SUSHANTA CHAKRABORTY
SUDIPTO GHOSH
SUVENDU JANA
MOHD. SALMAN
UWSB12-14 20-Oct-12

2. FMCG
2
 Fourth largest sector in Indian market
 Market size $13 Billion
 Expected to grow upto $33 Billion in 2015
UWSB12-14 20-Oct-12

3. What is FMCG?
3
 Frequently purchased goods
 Replaced within a year
 Quick turnover
 Relatively low cost
 Also known as Consumer Packaged Products
UWSB12-14 20-Oct-12

4. Segments..
4
Household Care Personal Care Food & Beverages
• Fabric wash • Oral care, Hair • Health beverages
• Household care, Skin Care • Staple
cleaners • Cosmetics and foods/cereals
toiletries • Snacks/Bakery
• Perfumes products
• Feminine • Chocolates & Ice-
Hygiene creams
• Paper products • Tea, coffee and
dairy products
• Fruits and
vegetables
• Drinking water
UWSB12-14 20-Oct-12

5. Major Players..
5
 ITC Limited
 Hindustan Unilever
 Nestle India
 Dabur India
 Godrej Consumer Products Limited
UWSB12-14 20-Oct-12

6. Significant of FMCG
6
 Strong MNC presence.
 Intense competition between organized and
unorganized players.
 Easy availability of important raw materials.
 Cheaper labor cost.
 Large market
UWSB12-14 20-Oct-12

7. Evolution of Indian FMCG market
7
1950-1980 1980-1990 1990-2012
• Limited • Interest of
investment • Increase foreign
• Low product company in
purchasing availability India
power • Increase • Major factor in
• Government competition Indian
favoring of the • Increase media economy
small scale penetration • Expected
sector and improved growth rate
advertisement. 12%
UWSB12-14 20-Oct-12

8. SWOT
8
Strengths weaknesses
• Low operational costs • Low exports level and
• Presence of established high advertising cost
distribution networks in • Losing their market
both urban and rural share and quality control
areas
• Presence of well-known
brands in FMCG sector
UWSB12-14 20-Oct-12

9. SWOT
9
Opportunities Threats
• Large domestic • Imports
market • Tax and
• Export potential regulatory
• Increasing structures
income levels will • Slow down in
result in faster rural demand
revenue growth
UWSB12-14 20-Oct-12

10. Hindustan Unilever Ltd
10
 Established in 1933 as Lever Bros. India Ltd.
 In 1956- Hindustan Lever Ltd.
 Subsidiary of Unilever.
 Largest FMCG company in India.
 More than 35 brands.
UWSB12-14 20-Oct-12

11. SWOT of HUL
11
STRENGTHS
 Strong brand portfolio
 Price quantity & variety
 Innovative Aspects.
 Presence of Established distribution networks in
both urban and rural areas.
 Solid Base of the company.
 Corporate Social Responsibility(CSR)
UWSB12-14 20-Oct-12

12. SWOT of HUL
12
WEAKNESSES
 "Me-too" products which illegally mimic the labels
and brands of the established brands.
 Strong Competitors & availability of substitute
products.
 Low exports levels.
 High price of some products.
 High Advertising Costs.
UWSB12-14 20-Oct-12

13. SWOT of HUL
13
OPPORTUNITIES
 Large domestic market – over a billion populations.
 Untapped rural market.
 Changing Lifestyles & Rising income levels, i.e.
increasing per capita income of consumers.
 Export potential and tax & duty benefits for setting
exports units.
UWSB12-14 20-Oct-12

14. SWOT of HUL
14
THREATS
 Tax and regulatory structure.
 Mimic of brands.
 Removal of import restrictions resulting in replacing
of domestic brands.
 Temporary Slowdown in Economy can have an
impact on FMCG Industry
UWSB12-14 20-Oct-12

15. ITC
15
 ITC is one of India’s foremost private sector
companies with a market capitalization of over
US $30 billion and a turnover of US $6 billion.
 ITC is rated among world’s best big companies.
 ITC ranks among India’s 10 most valuable
brands.
 While ITC is an outstanding market leader in
cigarettes, Hotels. Paperboards, packaging and
Agri-export.
UWSB12-14 20-Oct-12