Porter's Five Forces Model on FMCG Industry

1. Presented
By
Rameez Ahmed
Rajib Chowdhury
Bijoy Singha
Bikram Singha Roy
Biswarup Mondal

2. Fast Moving Consumers Goods also
known as Consumer Packaged Goods
(CPG)
Less
Shelf
LifeSold
quickly
Extensiv
e
distributi
on
networks
High volume business - Sold in large
quantities
Sold at relatively low cost

3. Major SegMentS In FMCg SeCtor
Fabric Wash &
Household
Cleaner
FMCG
Industry
Person
al Care
Oral Care, Hair
Care, Skin Care,
Cosmetics etc.
Food &
Beverag
es
Health Beverages,
Staples, Bakery,
Tea, Coffee, Soft
Drinks etc.

6. Porter's
Five
Forces
Model
Potential
Entrants
Suppliers
Buyer
s
Substitut
es

8. Rivalry
Among
Existing
Players
Rivalry
Among
Existing
Rivalry among players are very high in FMCG
Price competition
Players
Advertisement & Promotional Stuff
Distribution
New product
Storage
Exit Barriers are low
Warranty & Guarantee

11. POTENTIA
L
ENTRANTS
Potential
Entrants

12. POTENTIA
L
ENTRANTS
Barriers
Government Rules
&R
egulations
FDI
Licensing
Rules
Food Security Bill
Government
Service And Tax

13. Strong Distribution
Network Required
High Capital
Requirement
Already Existing Strong
Brand Names
Raw Material Availability
Low Labor Cost

15. Buyers
Buyers

16. Bargaining power is
low
Concentrati
on

18. SUPPLIER
S
Suppliers

19. Bargaining power is
low
Switching
cost
Relative supply
Importance of
input

24. substitute
s
Substitutes

25. substitute
s
Substitutes
Utility
Switchin
g Cost

26. Utility
Threat-More

27. Switchin
g Cost
Threat-Less

28. ConClusion