Fmcg India Study

Topics: Coca-Cola, Soft drink, The Coca-Cola Company Pages: 12 (3509 words) Published: May 22, 2012
Submitted by
Ankit Suri (30) Biswarup Roy (50) Chandan Raghuram (52) Lalit Baid (53) Nithin Tejraj (90) Sandeep Anand (102) Sumit Ticku (86)

Guided by
Prof Anil Kulkarni

Table of Contents
1. 2. 3. 4. 5. Introduction: - Fast Moving Consumer Goods PEST Analysis for the FMCG Industry Policy Issues Porter’s 5 Forces Case Study:- Carbonated soft-drink category 5.1. 5.2. 5.3. 5.4. 6. Brief Overview of the Soft Drink Industry Commendable growth of soft drinks in India Carbonates majors maintain dominance of soft drinks Competitiveness of the Indian Soft Drink Market 3 4 4 5 6 6 6 6 6 7 7 9

Coca-Cola: - In depth analysis 6.1. 6.2. Coca Cola : - SWOT analysis COCA COLA SUPPLY CHAIN STRATEGY


1. Introduction: - Fast Moving Consumer Goods The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population. Key FMCG products include soft drinks, toiletries, and grocery items. Though the profit margin made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial. FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates. From the consumers' perspective: 1. Frequent purchase 2. Low involvement (little or no effort to choose the item products with strong brand loyalty are exceptions to this rule) 3. Low price From the marketers' angle: 1. 2. 3. 4. High volumes Low contribution margins Extensive distribution networks High stock turnover

According to a FICCI report, the sector is poised to grow at 10-12 percent for the next 10 years to reach Rs 2,06,000 crore by 2013 in India. FMCG contributes around 2.5 % of GDP. Same can be shown as:-

Product Characteristics Products belonging to the FMCG segment generally have the following characteristics: • • • • They are used at least once a month They are used directly by the end-consumer They are non-durable They are sold in packaged form 3

They are branded

Industry Segments The main segments of the FMCG sector are: • Personal Care: oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care. Major companies active in this segment include Hindustan Lever; Godrej Soaps, Colgate ColgatePalmolive, Marico, Dabur and Procter & Gamble. Household Care: fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish). Major companies active in this segment include Hindustan Lever, Nirma and Reckitt & Colman. Branded and Packaged Food and Beverages: health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Major companies active in this segment include Hindustan Lever, Nestle, Cadbury and Dabur Spirits and Tobacco Major Companies active in this segment include ITC, Godfrey Philips, UB and Shaw Wallace.

2. PEST Analysis for the FMCG Industry •GST Regime •Restrictions in import policies •Transportation & infrastructure development •Aid for agriculture sector Political Economical •Increase in disposable Increase income • Sales growth of 16% •GDP growth rate of GDP 7%



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