1. Prepared by :
Muhammad Saeed Shahbhaiwala

2. Introduction
The Facts about the FMCG Industry
FMCG Chart
Distribution channels of FMCG
The Four stages of a typical FMCG
Major FMCG players across the globe
Top 10 brands in the FMCG sector
Indian FMCG industry at a glance
Graphical presentation of Indian FMCG
Indian FMCG giants in 2013
Top 10 towns with highest FMCG spending
SWOT Analysis

3.  FMCG, otherwise known as CPG (consumer packaged goods sector), is one of the
biggest industries in the world.
 Fast-Moving Consumer Goods refers to consumer non-durable goods required
for daily or frequent use.
 Fast Moving Consumer Goods are products that are sold quickly & at low cost
like soft drinks, tooth paste, soaps, shampoos, detergents, shaving products,
chocolates, Over-the-counter drugs, toys, processed foods, household accessories
and many other consumables.
 FMCG companies have a huge market to target. But, often companies face
different challenges in different countries to capture true market value.
 The success of an FMCG depends greatly on its marketing strategy.
 FMCG have a short shelf life, either as a result of high consumer demand or
because the product deteriorates rapidly.
 FMCG is probably the most classic case of low margin and high volume
business.
 FMCG companies have intense distribution network. Companies spend a large
portion of their budget on maintaining distribution networks.

4. FMCG companies are behind the biggest brands in the world. FMCG is all about
names, the products which everyone recognises from trips to the supermarket or from
ads on television etc. The brands that make up this sector are the high profile ones, the
ones everybody knows and loves. Think Coca-Cola, Dettol and Dove.
The FMCG industry changes fast and is constantly evolving. From the pace at
which goods leave the shelves to the rate of product innovation and career progression,
things move quickly. And it doesn't end there. The brands themselves are changing just
as quickly.
FMCG firms thrive on employee and customer retention. Employee investment is a
big part of the ethos of the FMCG world. Perhaps it's because we understand the
importance of loyalty. Customer loyalty can make or break a brand. FMCG companies
encourage the loyalty of their employees.
FMCG companies can beat the recession. FMCG industry has proved itself very
resilient to recession. Why? Consumers will always need to buy the products created by
FMCG companies. They may not buy big items like refrigerators etc. in recession, but
floors still need to be cleaned, clothes need to be laundered and pains still need to be
soothed.
The FMCG industry thinks bigger and better. This is an industry that offers things on
a whole new scale. FMCG firms are always thinking of the next great discovery or
innovation – always developing and ever-changing to meet consumer's needs.

5. FMCG
Household Care
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)
Personal Care
Oral care;
hair care;
skin care;
personal wash
(soaps);
cosmetics and
toiletries;
deodorants;
perfumes;
paper products;
shoe care.
Food & 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.

7. I. Introduction into the market: When the product enters the market for
the first time. The demand for the product needs to be increased; this is
usually done, by giving the customer some samples so that they can try
before they purchase the product. This stage helps the company to identify
potential issues the product might have, from the consumer’s point of view.
II. Growth Stage: After the product is introduced into the marker the sales
increase, people start to buy the product when required, the public is aware
of the products features and benefits at this stage.
III. Maturation stage: Production costs usually reduce at this point as the
product would have sold several times during the growth stage. Price of the
product usually drops down and the sales peek at this time. During this stage
competitors introduce their own products, which have, are off similar
characteristics.
IV. Decline Stage: Sales would have dropped down significantly, price of the
product increases and consumers tend to buy other products. Getting profits
becomes very hard at this stage. The product is then stopped when it
reaches this stage

8. Name Based Market Value
(Billion $)
Nestle Switzerland 233.50
Procter & Gamble America 208.50
Coca-Cola America 173.10
Anheuser-Busch InBev Belgium 153.50
Philips Morris International America 150.60
Unilever Anglo-Dutch 122.30
PepsiCo America 118.90
British American Tobacco America 102.00
Reckitt Benckiser British 51.20
General Mills America 29.90

9. Brand Brand Value
($ m)
Products
Gillette 24,898.00 Safety razors and other personal care products
Kellogg’s 12,068.00
Cereals and convenience foods, including cookies, cereal bars
and frozen waffles
Pampers 11,296.00 Baby care products
L’Oreal 8,821.00 Hair care & color, skin care, sun protection, make-up, perfumes
Heinz 7,722.00 Food products
Colgate 7,643.00
Health care and personal products such as toothpastes,
toothbrushes, soaps and detergents
DANONE 7,498.00 Dairy products and water brands
Nestle 6,916.00
Baby food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods and snacks
Avon 5,151.00 Beauty, household and personal care products
Johnson &
Johnson
4,378.00
Band-Aid, Tylenol medications, Johnson's baby products,
Neutrogena skin and beauty products, Clean & Clear facial
wash and Acuvue contact lenses

10. The fast moving consumer goods (FMCG) segment is the fourth largest sector in
the Indian economy. The FMCG sector in India has market size in excess of US$
13.1 billion as of the year 2012.
The market size of FMCG in India is expected to grow from US$ 30 billion in 2011 to
US$ 74 billion in 2018.
The FMCG sector in India generated revenues worth US$ 34.8 billion in 2011, a
growth of 15.2 per cent as compared to the previous year. Over 2006-11, the sector's
revenues posted a compound annual growth rate (CAGR) of 17.3 per cent.
A total of 7.8 million retail outlets sell FMCG in India.
India is becoming one of the most attractive markets for foreign FMCG players due to
easy availability of imported raw materials and cheaper labour costs.
The growth of FMCG is due to liberalization, urbanization, increase in the
disposable incomes and altered lifestyle.
The industry has witnessed healthy foreign direct investment (FDI) inflow, as the
sector accounted for 3 per cent of the country’s total FDI inflow in the period April
2000 to October 2013. Organised retail share is expected to double to 14–18 per
cent of the overall retail market by 2015.

11. 7.3 7.3
6.3
5.2
4.7
4.2
3.8
3.5
3.2
FY 12 FY 11 FY 10 FY 09 FY 08 FY 07 FY 06 FY 05 FY 04
Market Size in Billion $
Market Breakup
Food products
Personal Care
Fabric Care
Hair Care
Households
OTC products
Baby Care
Others
Market Segment
Rural
Urban
470 490 500
540
585
710
860
1020
1160
1300
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Historical growth of FMCG

12. 256,769
127,144
49,768
28,107 27,261 23,435 18,329 13,137 10,788 9,555
0
50,000
100,000
150,000
200,000
250,000
300,000

13. Top 10 Towns with highest
spending on FMCG products
I. Chandigarh
II. Greater Mumbai
III. Chennai
IV. Ahmedabad
V. Vadodara
VI. Pune
VII. Coimbatore
VIII. Ludhiana
IX. Faridabad
X. Hyderabad
(Updated on 2nd June 2014)

14. Strengths
Strong brand recognition
Variety of choices
Excellent R & D facilities
Unmatched distribution network
Low operational cost
Strategic places (outlet)
Full of rich experience
Good & accessible transport network
Threats
Intense competition amongst FMCG
companies
Fluctuations in foreign currency
Government policies
Increasing cost of raw materials
Change in technology
Impact of financial slow down
Weakness
Low customer loyalty
Limited presence in some countries
High attrition rate
Declining export level
High advertising cost which may
affect the margins
Mimic brands
Poor customer service
Opportunities
Large domestic markets
Large untapped market available,
especially the rural areas
Changing lifestyles & rising income
Increase awareness through social
media
Value added services
Huge competitive market for the clients

15. 1. http://en.wikipedia.org/wiki/Fast-moving_consumer_goods
2. http://www.ibef.org
3. http://www.slideshare.net
4. http://10bestinworld.blogspot.in
5. http://www.docstoc.com
6. http://www.scribd.com
7. http://www.aaramshoppro.com
8. http://www.freeusandworldmaps.com
9. http://www.mapsofindia.com
10. http://www.about-fmcg.com
11. http://www.strategyand.pwc.com

16. Business Analyst
Product & Brand Management
Product Development
Marketing
Retailing
Core Sale
Packaging
Advertising
ManufacturingSupply
Logistic
Operations
Distribution
Production
Brands
Product
Consumers
Digital Media
Super Markets
Hyper Markets
Outlets
Technology
Innovation
Environment
Demand
FMCG
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FMCG FMCG
FMCG
FMCG
FMCG FMCG
FMCG
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Private Label
Consumer Behaviour
FMCG
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