GROUP 1 [PGDM(M)]

FMCG : At A Glance

FMCG CAN BROADLY BE CATEGORIZED INTO THREE SEGMENTS WHICH ARE:

Household items as soaps, detergents, household accessories, etc.,

Personal care items as shampoos, toothpaste, shaving products, etc. and finally

Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.

FMCG Sector in India

The fourth largest sector

Market size @ $13.1 billion (2012)

Expected growth@$ 33 billion by 2015 and @ $ 100 billion by the year

2025.

Top FMCG companies in India

Hindustan

Unilever LTD

ITC (Indian Tobacco compan

y)

Nestle

indiaAMULDabur India

Cadbury

India

Britania

Industries

Procter And Gamb

le

Marico

Industries

RURAL MARKET & COMPANY OVERVIEW

When HUL has entered into the rural market?

• The year was 1970.• NIRMA introduced no frill products for

rural people• Huge success

• HUL Realized the power of rural

market .

• The year was 1972• First time that HUL was in

the loss because of hike of petroleum prices

• taking government Assistant the chairperson

(T. Thomas) met all the ministers and officials

concerned• Didn't get any help

• Then he met Jagjivan Ram (a Senior cabinet minister)

TWO EVENTS THAT INSPIRED HUL TO GO

RURAL.

T. THOMAS, Chairman (1973-1980)

“That is when Jagjivan Ram, one of the senior cabinet ministers to whom I had gone to present our case gave me an idea. He told me, “Thomas, we in the government are more concerned about the common man. Why don't you produce

soap for the common man – JANTA SOAP at a reasonable price? In that case

you can probably persuade government to decontrol the rest of the soaps.” I took up his idea seriously and organized the production and launch of such a soap which we branded as Saral.”

By T. Thomas

Most probably1970- 1972 was the year when HUL was entered into the rural market by producing a JANTA SOAP for the common people.

An Unmatched Brand Portfolio

Aspiring

Wealthy customers///High income people

Ambitions customer///Middle income people

Struggling customer///Low income people

Product strategy

Every product for every

customers

Strategy for the rural market in terms of acceptability & affordability

Small packaging @ Small price

•Small sachet for the Rural masses•No frill products

Availability Strategy

Warehouses @ near by Rural areas

• reduce distribution cost • Making the price affordable for rural customers• Reaching maximum customer

Project Shakti : An Innovative distribution system

• Targeting every remote customer• Empowering Women• By 2011 the Shakti network have reached 600 million consumers.

Awareness

Campaigns :breath of HUL’s

Major competitors of HUL

Procter and

Gamble

Godrej Consumers

Dabur India Ltd.

ITC

Competition From regional players

Anchor Health & Beauty Care took on HUL's Pepsodent and Close-up by launching 100 per cent vegetarian Anchor Toothpaste.

In detergents, smaller regional players like Ghadi, Sasa and Power have dented the volumes and market share of HUL's Rs 2000 crore (Rs 20 billion) detergent brand Wheel.

In soaps, Wipro Consumer Care and Lighting's Santoor has now become the largest soap brand in South India and Godrej Consumer Products Godrej No 1 is the market leader in the lucrative Northern market.

Chennai-based CavinKare, the second largest manufacturer and marketer of shampoo in India with brands like Chik, Nyle, Meera and Karthika, came out with single serve packs to make inroads into a market dominated by multinationals.

Strategies to fight Competition

The first is winning state by state.

HUL is using 'right pricing' as a primary tool to increase its competitiveness.

Greater focus on Return on Marketing Investment.

Increasing the quality and speed of innovations and launches.

Researchevents@HUL

Living Standards Measure (LSM (1-18)• HUL do extensive research using the company's internal tracker called

Living Standards Measure (LSM (1-18)) to determine the success of the product.

Dedicated Eight weeks• Every employee of HUL spent eight weeks in rural area to understand

the RURAL MARKET.

Recommendation and Suggestions

They should focus on making their supply chain more effective in rural areas.They are facing a stiff competition from regional players in terms of pricing so they should focus on cost cutting plans like using their own Logistics everywhere.For making quick order of small retailer in rural areas, they should provide their workforce a hand held mobile like BlackBerry (coke had done it earlier).They should open a Multi Brand HUL’s outlet at District centers to create awareness and patronizing the customers.

Review of the Presentation…

HUL

Thank You!!!!!!!!!