Comparative Study on Snacky Biscuits

Topics: PepsiCo, Frito-Lay, Lay's Pages: 13 (3429 words) Published: March 25, 2012
Overview of the Fast Moving Consumer Goods Industry :-

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented.

Industry Classification
The FMCG industry is volume driven and is characterized by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts. Following are the segment-wise product details along with the major players

Household care

Laundry soaps, Synthetic detergent, household cleaners, mosquito repellents, metal polish, furniture polish etc.
HUL ,ITC ,Nirma , Godrej, Dabur , P&G , Reckitt & Colman
Personal care

Oral care , Skin care ,Hair care ,personal soap, toiletries , deodorants,perfumes,hygiene products , paper productsColgate Palmolive ,HUL ,ITC ,Dabur ,Himalaya, Marico,Fem care , Lakme ,P&G,Godrej Food and beveragesFOOD:- Cereals, Bakery product, chocolates ,flour etc BEVERAGES:- Soft drinks , tea ,coffee, bottled water , juice , liquor, health beveragesParleAgro,Britannia,ITC,Nestle, Cadbury, PepsiCo.

UB group , Dabur , United Spirits , Coca cola , PepsiCo

1.2.Overview of the Indian snaky biscuit industry :-

India Biscuits Industry is the largest among all the food industries and has a turn over of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stands at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.

The Indian snack market reached a value of $307.7 million in 2001. It is one of the largest snack markets in the Asia-Pacific region. Only Australia, China, Japan and South Korea have won greater revenue from the sale of snacks. India contributes three percent to the total Asia-Pacific snack market revenue. Indian snack food industry comprises of many Indian as well as MNCs. majority of MNC's entered their venture in Ready-To-Eat Snacks & Namkeens. The snack food market in India is valued at Rs. 1530 crore and is one of the largest markets in the world .

Mainly , in India the snack food market is dominated by BRITANNIA, ITC ,PARLE , and obviously the made-at-home snacks or savories sold by local vendors . India has witnessed a significant rise in the demand for ready-to-eat snacks. Today, Indian consumers want snack foods that are portable, hygienic and a ready substitute for hot snacks. Snacks like biscuits and potato wafers and Indian savories like laccha (fried potato sticks) were already available in the packaged format, but Frito Lay India (a subsidiary of PepsiCo) decided to find a niche in...
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