fmcg project
TRANSCRIPT
m a r k e t i n g c o n c e p t a n d o r i e n t a t i o n
It is a fundamental idea of marketing that organisations survive and prosper through meeting the
needs and wants of customers. This important perspective is commonly known as
the marketing concept.
The marketing concept is about matching a company's capabilities with customer wants. This
matching process takes place in what is called the marketing environment.
Businesses do not undertake marketing activities alone. They face threats from competitors, and
changes in the political, economic, social and technological environment. All these factors have
to be taken into account as a business tries to match its capabilities with the needs and wants of
its target customers.
An organisation that adopts the marketing concept accepts the needs of potential customers as
the basis for its operations. Success is dependent on satisfying customer needs.
What are customer needs and wants?
A need is a basic requirement that an individual wishes to satisfy.
People have basic needs for food, shelter, affection, esteem and self-development. Many of these
needs are created from human biology and the nature of social relationships. Customer needs are,
therefore, very broad.
Whilst customer needs are broad, customer wants are usually quite narrow.
A want is a desire for a specific product or service to satisfy the underlying need.
Consider this example:
Consumers need to eat when they are hungry.
What they want to eat and in what kind of environment will vary enormously. For some, eating
at McDonalds satisfies the need to meet hunger. For others a microwaved ready-meal meets the
need. Some consumers are never satisfied unless their food comes served with a bottle of fine
Chardonnay.
Consumer wants are shaped by social and cultural forces, the media and marketing activities of
businesses.
This leads onto another important concept - that of customer demand:
Consumer demand is a want for a specific product supported by an ability and willingness to
payfor it.
For example, many consumers around the globe want a Mercedes. But relatively few are able
and willing to buy one.
Businesses therefore have not only to make products that consumers want, but they also have to
make them affordable to a sufficient number to create profitable demand.
Businesses do not create customer needs or the social status in which customer needs are
influenced. It is not McDonalds that makes people hungry. However, businesses do try to
influence demand by designing products and services that are
• Attractive
• Work well
• Are affordable
• Are available
Businesses also try to communicate the relevant features of their products through advertising
and other marketing promotion.
Which leads us finally to an important summary point.
A marketing orientated business is one that which has adopted the marketing concept
Fast-moving consumer goods
Soft drinks are FMCGs
Fast-moving consumer goods (FMCG) – or consumer packaged goods (CPG) – are products
that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft
drinks, toiletries, and grocery items.[1][2] Though the absolute profit made on FMCG products is
relatively small, they generally sell in large quantities, so the cumulative profit on such products
can be substantial.
Scope
The term FMCG refers to those retail goods that are generally replaced or fully used up over a
short period of days, weeks, or months, and within one year. This contrasts with durable
goods or major appliances such as kitchen appliances, which are generally replaced over a period
of several years.
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.
The following are the main characteristics of FMCGs:[1]
From the consumers' perspective:
Frequent purchase
Low involvement (little or no effort to choose the item – products with strong brand
loyalty are exceptions to this rule)
Low price
From the marketers' angle:
High volumes
Low contribution margins
Extensive distribution networks
High stock turnover
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Product Mix:
It is the set of all product lines and items that a particular company offers to buyers. The width of a product mix refers to how many different product lines a company carries. The Godrej have different product mix in India consists of appliances, Soaps & Personal care etc.
The depth od a product mix refers to how many variants of each product are offered in the line,eg the cinthol soaps are coming in diferent formulations and in different colours and hence has aproduct mix depth of nine or ten. This kind of assortment is popularly referred asa stock keeping units (SKUs).
The consistency of a product mix refers to how closely related the various product line are in end use. Hence, Godrej product lines are consistent in the sense that are all food products.The width, depth and consistency of product mix enables a company to define its product portfolio, appeal to different consumer
needs/segments and encourage one-stop buying. A broad width or dep mix goes tosatisfy the needs of several consumer groups and maximise shelf-space and sustain dealer support.
A consistent mix is generally easier to manage that diversified mix. It allow the marketer to concentrate on its core competence, build or create a strong image among consumers and trade channels. However, excessive consistency may leave the marketer to a narrow rang of business.
Product Line:-
It is a group of products that is closely related because thay perform a similar function, targeted at the same customer groups, and marketed through the same channels.
1. Line streching: Decisions pertaining to line stretching are taken whenever the marketer feels he can increase his profits by either adding or dropping items from the line. It can be upwards, downwards or both ways.
Downward stretch takes place when the company finds that its offerings are at the high price end of the market and then stretch their line downwards.For example Cinthol plan soap began at premium end and then the downmarket cinthol limebar was introduce to tap the lower segment.
Conversely, upward stretch occurs when a company enters the upper end through a line extension. The reasons for this may be a higher growth rate, better margins or simply a wish
masses to a premium quality like sinthol lime for the higher strata of society. Throughout this stretch the brand has used hygienie as its core benefit, so that there was no dissonance in the mind of consumers.
2.Line filling:- A product line can also be lengthened by adding more items within the present product range. There are reveral reasons for line filling.
· Reaching for incremental profits.
· Trying to satisfy dealers who complain about lost sales because of missing items on the line.
· Trying to utilise excess capacity.
· Trying to offer a full line of the product.
· Trying to plug holes in the positioning map.
The launch of Cinthol, in different variants is an example of line filling. Today Cinthol is a lime shop with yellow packaging and a cologne cariation with blue wrapping apart from the initial Cinthol fresh. There is also a Cinthol International, packed in a red pack with a picture of mountains depicting freshness.
The company needs to diferentiate each item must possess a difference which sets it apart from the others. We have later on discussed various significant dimensions relating to product positioning and differentiation.
3.Line modernization:- Even when the product line length is adequent, the line might to be modernized. The issue is whether to overhaul the line completely or one at a time. A piecemeal approach allows the company to see how customers and dealers react to the new style. Piecemeal modernization is less of a drain
on the company’s cash flow. A mojor disadvantage of picemeal modernization is that it allows competitors to see changes and start re-designing their own line.
In the repidly changing market, product modernization is carried out continuously. Because competitors are constantly upgrading their options,each company must redesign their own offering. A Godrej woud like to upgrade customers to higher-valued, higher-priced items. A major issue is the timing of the product
line improvements so that thay do ot happen too early and damage the sales of their current product line, or come out too late so that the competition can establish a strong foothold.
4.Line featuring:- In the case of durible products, marketers at times select one or a few items to “feature”. The idea is to attract consumers into the showrooms and then try to get them exposed to other models. At times, the marketer will feature a high end item to lend prestige to the product line. These products act
as “flagships” to enhance the whole line.
Sometimes a company find one end of its line selling well and the other poorly. The company may try to boost the demand for the slow-moving items, especially if they are produced in a factory that is lying idle due to the lack of demand.
GROWTH STRATEGIES FOR FMCG
The fundamental characteristics of fast moving consumer goods and their markets. We shall now consider the various growth strategies follwed ny Godrej FMCG company.
Typically, the success of an Godrej FMCG depends greatly on its marketing strategy. Typically, a marketer pursues a wide combination of strategies. For instance, when prices are competitive the company would use an extensive distribution network, design suitable advertising and sales promotion schemes from
time to time. However, what is it that can make am Godrej FMCG brand sell more than its competitor? What makes some outstanding brands? How does a marketer convert a customer from buying a generic soap to buying a particular brand, say Godrej No1. Or what makes Godrej sheving cream a symbol of good
sheaving cream for over a century? Let us now discuss various methods employed by the Godrej in an FMCG market.
1.Multibrand Strategy:- A company often nurtures a number of brands in the same category. There are various motives for doing this. This main retionale behind this strategy is to capture as much of the market share as possible by trying to cover as many segements as possible, as it is not possible for one brand to
cater to the entire market. This also enables the company to lock up more distributor shelf space.
Take, the strategy adopted by Godrej company. They have introduced many brands in the soaps and other products so that no segement is left untouched. It has Godrej No1 Rose, in the ultra-premium segment, Godrej No.1 for the economy segement and brands like Cinthol lome, cinthol fresh for the intervening
segments. In the hair care market also.It has thus covered itself agenst any form of attack and captured market shares in every possible segment.
Another reasos to adopt multiple brand strategy is to protect its major brand by setting up flanked brands. Sometimes the company inherits different brand names in the process of acquiring other companies and each brand name has a loyal following.
2.Product flanking:- Product flanking refers to the introduction of different combitions of products at different prices, to cover as many market segements as possible. It is basicaly offering the same product in different sizes and price combinations to tap diverse market opportunities. The introduction of Ezee in small
sachet has, for example, made them affordable to the lower segment of consumers who previously could not afford to spend anywhere between Rs.30 and Rs.40 for astandard bottel of a Ezee. Another the sachet wereinitially launched to guard the main brand surprisingly they have now become a big success among
new and small quantity users.
The idea behind this concept is to flank the core product by offering different variations of size and price so that the conaumer finds some brand to choose from.
3.Brand extensions:- Marketers like to have aloyal consumer base so that those particular brands enjoy high brand equity in the market. In such cases, companies make brand extensions will be able to ride on the successful brands, and that the new brrand will stand in its own right in the course of time. At times, the
idea does not work and the result is the strong preference for the original brand itself gets diluted in the bargain. However, if this strategy works, it has been of tremendous value leading to the formation of a number of umbrella in a variety of products. Brand extension strategy offers a number of advantages. A well
respected brand name gives the new product instant recognition and easier acceptance. It enables the company to enter new product categories.Today this brand has a number of extensions like GodrejNo.1sandle,Godrej No.1 rose,FairGlow.All these brands have been positioned at different segements.
4.Building product lines:- Some companies add related new productlines to give the consumer all the products he/she would like to buy under one umbrella.The Godrej added products in the cosmetics range so as to offer their customers a one stop shop for all the necessary goods like appliance, moisturising creams
to face scrubs and delicately shaded eye colours. Godrej has adopted a strategy. It has introduced different kinds of shoaps,appliance,food care in last 10 years.By adding a number of flovers in each product line the company grew in the industry. Building related product lines is today the market leader in the
appliance, and food products industry.
5.New product development:- Given the intrnse competition in most products today, Godrej has to face some problem in developing new products because of competeshion in the market and the brand is also not getting proper recognisation also.There existing products are vuliable to change consumer needs and
tastes, new technology, shortened product life cycles and increased domestic copmetition.By devoting one’s efforts on new product development. With the help of new products a company can enter a growing market for the first time, and supplement its existing product line.New product could also mean offering
improved performance like small Refregirator to big to doar sets or greater perceived value and replacing existing products or relaunching old products which are tangeted at new market segments.
6. Innovations in core products:- In the Godrej FMCG products, the life of a product is short. Godrej therefore, continually try to introduce new brands to offer some thing new and meet the changing requirements of the customer. A consumer is also open to try out new options and, on the other hand, brand loyal
segment is presuaded to upgraded their choice.Hence it is prudent for a marketer to innovate from time to time both by technological expertise as well as from the consumer’s or dealers feedback. Such innovations are tried out around the core product of a company.
7.Long term outlook:- Many companies adopt a long term outlook towards growth in an FMCG market. In the process, short term gains which might adversely affect the long prospects of the company are sacrificed.
8.Extending the PLC:- During a product’s life of Godrej company for its FMCG may have to reformulate its marketing strategy because economic conditions are not good this time all round the world, competitors launch new assaults, and the product encounters new types of buyers and new requirements.
Consequently, an Godrej FMCG try to extend the PLC and plan successive strategies appropriate in each stage in the new environment. In the maturity stage of the PLC, some companies abandon their weaker products. They prefer to concentrate their resources on their more profitability products and quickly
develop new products. The main loophole in this is due to ignoring the high potential that many old products still have. For example, existing models in products like refegrater and microwave oven etc. In India have experienced a good demendwhenever new options were offered. Here older models become more
attractive in the popular price segement or first time buyres.
9. Expanding markets by usage :- A company usually expands the market for its brand in two ways. That is, either to increase the number of customers or by encouraging more consumption per intake. Note that Sales volume = number of brand users * usage rate per user.
The usage rate of the consumers can be increased in a number of ways. For instance, it may try to educate or persuade customers to use the product more frequently. Godrej did this with soap Godrej No1. The concept of soaps in India was limited to hygienic only and takes bath. By aggressively
promoting fragrances more as a medium of attraction than as a way to bath, Godrej has increased the usage of Fair Glow to cover consumption of Godrej soaps.
Secondly, Godrej Company tries to induce users to consume more of the product on each occasion. Say, a haircolour marketer might convince the users that the haircolour is more effective with one rinses rather than two or more.
Thirdly, Godrej Company tries to discover new product uses and convince customers to use the product in more varied ways. Rim Locks
inferior quality of locks which were sold to customers. Good Knight also positioned itself as an anti-mosquito purpose. By extending their consumer base to the individual consumers and by convincing them of the product benefits Godrej have greatly increased their market shares.
introduced as a remedy for falling hair. It was later on extended to cover prevention of falling hair also. Finally, it was repositioned as cosmetic and not just hair oil. Different ways of styling hair were shown in its advertisements. The usage has increased from that of pure hair oil, to that of a part of a lady's total
styling kit
10.Wide distribution network:- A very simple way of increasing an FMCG market share is by developing a strong distribution network, preferably in terms of more locations. Once the reach of the product has been extended, it is likely to gain in market share because of its deep penetration. An extensive
distribution system can be developed over time, or the Godrej may acquire another company which has an extensive distribution network. As stated earlier, Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good distribution network. This stands as the prime reason behind their market
leadership in respective businesses. But because of some problem Godrej have failed to maintain the strong distribution network.
11.Monitoring the pulse of the consumers:-Companies spend considerable effort to find out the what, where, how and when of their consumers. They figure out all sorts of things about them that the latter arc not even aware of.
consumers and how to satisfy their needs and wants in a better manner. It helps them to monitor the pulse of their buyers so that they are able to identify and/or anticipate the needs of the consumers and be able to satisfy them in a better manner than the competitors.
12. Advertising and media coverage:- Advertising is required to build awareness about an FMCG or brand which is available in the market but not many people might know about it. Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand.
Persuasive advertising becomes important in the competitive stage, where the company's objective is to build a selective demand for a particular brand. Most advertising falls into this category. For example, Pantene shampoo attempts to persuade consumers that it delivers more benefits than any other brand of
shampoo. Marketers try to establish the superiority of its brand through specific comparisons with one or more brands in the product class.
its products will induce the viewer at the time of actual demand.
13.Sales promotion:-Sales promotions offer a direct incentive to buy more in the short term. They are designed to stimulate quicker and/or greater purchase of particular products by consumers or the trade. However, a few points have to be kept in mind. They yield faster and more measurable responses in sales than
advertising docs. They mainly attract the deal prone consumers who switch brands as deals become available. Loyal buyers normally do not change their brand as a result of competitive promotion
MANAGING LINE EXTENSIONS-A CLOSER LOOKThere arc several factors which can explain why Godrej Company has pursued line extensions as their marketing strategies.
1. Customer segmentation:- Managers perceive line extensions as a low-cost, low-riffc way to meet the needs of various customer segmentsand by using more sophisticated and lower-cost market research and direct marketing techniques, they can identify and target finer segments more effectively than ever
before. In addition, the quality of audience-profile information for television, radio and print media has improved; managers can now translate complex segmentation schemes into effective advertising plans.
2.Consumer desires:- Consumers are switching brands and trying products they have never used before. Line extensions try to satisfy the desire for "something different" by providing a wide variety of products under a single umbrella.
keeping them loyal to the brand franchise. Godrej launched its refrigerator in different sizes and AC in different tons, Soaps in different verity.
and labeling across all items in a brand line, they can achieve an attention-getting billboard effect on the store shelf or the display stand and thus leverage the brand's equity.
3.Pricing breadth:- Marketers often extend the line on superior quality platform and set higher prices for the new offerings than their core items. In markets subject to slow volume growth, marketers can increase unit profitability by attracting current customers move up to the "premium" products. In this way a
marketer also lends "prestige" to its product-line. Similarly, some line extensions are priced lower than the lead product. For example, American Express offers its Optima card for a lower annual fee than its standard card. Extensions give marketers the opportunity to offer a broader range of price-points in order to
capture a wider audience, and—thereby serve as "volume builders."
4.Excess capacity.On some occasions companies added new product lines to make use of their excess capacity or to improve efficiency and the quality of existing products. In fact, excess capacity encourages the introduction of line extensions that require only minor adaptations to current products.
5.Short-term gain:-Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the
career risk of introducing new products in this crowded market.
6.Short-term gain:- Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the career risk
of introducing new products in this crowded market.
7.Energizing a brand:- A line extension can be an effective way to make a brand more relevant, interesting, and visible. In doing so, it can create a basis for differentiation, build the audience for the advertising of an old brand (though the brand may be healthy), and stimulate sales. This would give new as well as old
customers sufficient reason to buy the brand.
8.Exploitation of variety fulfillment :- A brand may be stretched across multiple product categories to take advantage of a common and important consumer benefit existing in both, the products and the consumer perceptions. This is the common benefit of exploitation strategy which ensures that sales in the other
categories do not affect the parent brand. Line extensions can also increase a brand's consumer share of requirements within a given product category.
9. Expanding a brand's core promise to new users:- A brand may have a strong image that promotes loyalty and exclusiveness. A line extension can extend that promise. In fact, line extensions can perform the role of continually improving the core brand. Intelligent line extensions may be used as means to attract
users who buy multiple brands.
10. Managing true innovation:-. Line extension is an effective way to foster and manage true innovation, thereby enhancing the value proposition, expanding the usage contexts, and blocking competitive entry.
11. Blocking or inhibiting competitors:- Although niche markets may represent marginal businesses, they may strategically represent important footholds for competitors. Line extensions have the potential of inhibiting or neutralizing moves by competitor. Failure
for market leaders, as can be seen from what happened to the present situation of Godrej FMCG industries.
12.Testing ground for national launch:- Product line extensions can also be effective ways to test-market product improvements and at the same time enter emerging segments. Thus, logic seems to be on the rise for any new launch
Consumer products
Appliances :-
1. Refrigerators.
2. Washing Machines.
3. Air-Conditioners.
4. Microwaves.
5. DVD Players.
L Locks
1. Pin Cylinder Locks.
2. Lever Mortise Locks.
3. Rim Locks.
4. Furniture Locks.
5. Ultra Locks.
6. Padlocks.
7. Cylindrical Locks.
Furniture :-
1. Office Furniture:-
i) Interiors.
ii) Techno series.
iii) Storage:-Common storage, Personal/ Aisle, Conventional storage, System storage, Display storage.
iv) Seating:-General purpose chairs, High performance, Lounge furniture, Multi task, Office/Multipurpose chairs, Public seating, Task intensive seating, Training Room.
v) Desking.
vi) OPOS.
2. Special Solutions:-
i) Marin Solutions.
ii) Lab Solutions.
3. Home Furniture:-
i) Living room.
ii) Dining room.
iii) Kid’s room.
iv) Study room.
v) Modular kitchen.
vi) Bedroom.
Security Equipment :-
1. Physical Security Products:-
b) Record Protecting Equipment:-Centiguard-fire safes, Dataline-data safes, Fire Resisting Record cabinet, Record Room Doors, Fire resisting filing cabinet.
c) Burglary Resisting Safes:- Popular Safes, D-tel depository cabinet, Defender Plus safes.
d) Vault Equipments:-Steel Fabrication Strong rooms, High Security Door, Defender Plus strong room doors, Currency bin cabinet, Vault Accessories.
2. Currency Handling Systems:-
a) Crusader currency counting machine
b) Swift CCM
c) Currency sorting machine
d) 3rd Eye fake note detectors
3. Electronic Security System.
4. Home Safes.
5. Premises Security Solution.
6. Marine Products.
7. Fire Doors.
8. Godrej Entranza Doors.
Office Automation :-
1) MFP.
2) Fax Machines.
3) Production Printing Equipment.
Conferencing Solutions:-
1) Display Solutions.
2) Audio/Video Conferencing.
3) Integrated Solutions.
4) Electronic Copy Boards.
Typewriters:-
1) Manual Typewriters.
Vending Machines:-
1) Godrej2CVM
2) Godrej Mini Café 4000.
Soaps & Personal care:-
1) Soaps:- Cinthol, Fair Glow, Evita, Shikakai, Vigil, Godrej NO.1.
2) Toiletries:-Cinthol, Shaving Cream, Power, save lotion, Body spray.
3) Hair Care:-Godrej Nupur, Hair colours.
4) Household Care:-Godrej dish wash, Glossy.
5) Fabric care:-Ezee.
Foods:-
1) Sofit Soymilk.
2) Edible oils and vanaspati.
3) Fruit drinks and nectar.
4) Bakery fats.
Air Care:-
The Ambi Pur Range
Household Insecticides :-
1) Good Knight.
2) Hit.
3) Jet.
Housing:-
1) Commercial.
2) Retail.
3) Residential.
Pest Management Services:-
1) Rodex.
2) Termin-8.
3) Intelligel.
4) Wood Borer Management.
5) Bed Bugs Management.
Industrial products
Storage solutions:-
1) Warehouse solution.
2) Document and record management solution.
3) Shop floor solution.
4) Consultancy services.
5) Digital picking solutions.
Automated Warehousing:-
1) Automated Storage and Retrieval System (AS\RS).
2) Stacker Cranes.
3) Miniload System
4) AGV Stackers.
5) Automated Guided Vehicles.
6) Rail Guided Vehicles.
7) Baggage\ Cargo Handling.
8) Warehouse Management Systems.
Material Handling Equipment:-
1) Counter Balance Trucks.
2) Warehousing Products.
3) Access Equipment.
4) Tyre Handlers.
5) All Terrain Trucks.
6) Tennant Cleaning Equipment.
7) HUBTEX Side loaders.
8) Attachment & Accessories.
Process Equipment:-
1) Heavy Walled Reactors.
2) High Pressure Vessels.
3) Distillation/Fractionationg Columns.
4) Rector/Tower Internals & Trays.
5) Custom Built Equipment.
6) High Pressure Shell & Tube Heat Exchanges.
CONCLUSION:-
In this project, we have defined generic, tangible and augmented facilities attached to Godrej product. Different types of consumer products, we looked at the special characteristics
adopted by FMCG in their quest for growth in this highly competitive and evidently low involvement purchase decision. Finally, we took a closer look at product line decision and various dimensions considered in the line extension.
Product Mix and Line Decisions:
Product Mix:
It is the set of all product lines and items that a particular company offers to buyers. The width of a product mix refers to how many different product lines a company carries. The Godrej have different product mix in India consists of appliances, Soaps & Personal care etc.
The depth od a product mix refers to how many variants of each product are offered in the line,eg the cinthol soaps are coming in diferent formulations and in different colours and hence has aproduct mix depth of nine or ten. This kind of assortment is popularly referred asa stock keeping units (SKUs).
The consistency of a product mix refers to how closely related the various product line are in end use. Hence, Godrej product lines are consistent in the sense that are all food products.The width, depth and consistency of product mix enables a company to define its product portfolio, appeal to different consumer
needs/segments and encourage one-stop buying. A broad width or dep mix goes tosatisfy the needs of several consumer groups and maximise shelf-space and sustain dealer support.
A consistent mix is generally easier to manage that diversified mix. It allow the marketer to concentrate on its core competence, build or create a strong image among consumers and trade channels. However, excessive consistency may leave the marketer to a narrow rang of business.
Product Line:-
It is a group of products that is closely related because thay perform a similar function, targeted at the same customer groups, and marketed through the same channels.
1. Line streching: Decisions pertaining to line stretching are taken whenever the marketer feels he can increase his profits by either adding or dropping items from the line. It can be upwards, downwards or both ways.
Downward stretch takes place when the company finds that its offerings are at the high price end of the market and then stretch their line downwards.For example Cinthol plan soap began at premium end and then the downmarket cinthol limebar was introduce to tap the lower segment.
Conversely, upward stretch occurs when a company enters the upper end through a line extension. The reasons for this may be a higher growth rate, better margins or simply a wish
masses to a premium quality like sinthol lime for the higher strata of society. Throughout this stretch the brand has used hygienie as its core benefit, so that there was no dissonance in the mind of consumers.
2.Line filling:- A product line can also be lengthened by adding more items within the present product range. There are reveral reasons for line filling.
· Reaching for incremental profits.
· Trying to satisfy dealers who complain about lost sales because of missing items on the line.
· Trying to utilise excess capacity.
· Trying to offer a full line of the product.
· Trying to plug holes in the positioning map.
The launch of Cinthol, in different variants is an example of line filling. Today Cinthol is a lime shop with yellow packaging and a cologne cariation with blue wrapping apart from the initial Cinthol fresh. There is also a Cinthol International, packed in a red pack with a picture of mountains depicting freshness.
The company needs to diferentiate each item must possess a difference which sets it apart from the others. We have later on discussed various significant dimensions relating to product positioning and differentiation.
3.Line modernization:- Even when the product line length is adequent, the line might to be modernized. The issue is whether to overhaul the line completely or one at a time. A piecemeal approach allows the company to see how customers and dealers react to the new style. Piecemeal modernization is less of a drain
on the company’s cash flow. A mojor disadvantage of picemeal modernization is that it allows competitors to see changes and start re-designing their own line.
In the repidly changing market, product modernization is carried out continuously. Because competitors are constantly upgrading their options,each company must redesign their own offering. A Godrej woud like to upgrade customers to higher-valued, higher-priced items. A major issue is the timing of the product
line improvements so that thay do ot happen too early and damage the sales of their current product line, or come out too late so that the competition can establish a strong foothold.
4.Line featuring:- In the case of durible products, marketers at times select one or a few items to “feature”. The idea is to attract consumers into the showrooms and then try to get them exposed to other models. At times, the marketer will feature a high end item to lend prestige to the product line. These products act
as “flagships” to enhance the whole line.
Sometimes a company find one end of its line selling well and the other poorly. The company may try to boost the demand for the slow-moving items, especially if they are produced in a factory that is lying idle due to the lack of demand.
GROWTH STRATEGIES FOR FMCG
The fundamental characteristics of fast moving consumer goods and their markets. We shall now consider the various growth strategies follwed ny Godrej FMCG company.
Typically, the success of an Godrej FMCG depends greatly on its marketing strategy. Typically, a marketer pursues a wide combination of strategies. For instance, when prices are competitive the company would use an extensive distribution network, design suitable advertising and sales promotion schemes from
time to time. However, what is it that can make am Godrej FMCG brand sell more than its competitor? What makes some outstanding brands? How does a marketer convert a customer from buying a generic soap to buying a particular brand, say Godrej No1. Or what makes Godrej sheving cream a symbol of good
sheaving cream for over a century? Let us now discuss various methods employed by the Godrej in an FMCG market.
1.Multibrand Strategy:- A company often nurtures a number of brands in the same category. There are various motives for doing this. This main retionale behind this strategy is to capture as much of the market share as possible by trying to cover as many segements as possible, as it is not possible for one brand to
cater to the entire market. This also enables the company to lock up more distributor shelf space.
Take, the strategy adopted by Godrej company. They have introduced many brands in the soaps and other products so that no segement is left untouched. It has Godrej No1 Rose, in the ultra-premium segment, Godrej No.1 for the economy segement and brands like Cinthol lome, cinthol fresh for the intervening
segments. In the hair care market also.It has thus covered itself agenst any form of attack and captured market shares in every possible segment.
Another reasos to adopt multiple brand strategy is to protect its major brand by setting up flanked brands. Sometimes the company inherits different brand names in the process of acquiring other companies and each brand name has a loyal following.
2.Product flanking:- Product flanking refers to the introduction of different combitions of products at different prices, to cover as many market segements as possible. It is basicaly offering the same product in different sizes and price combinations to tap diverse market opportunities. The introduction of Ezee in small
sachet has, for example, made them affordable to the lower segment of consumers who previously could not afford to spend anywhere between Rs.30 and Rs.40 for astandard bottel of a Ezee. Another the sachet wereinitially launched to guard the main brand surprisingly they have now become a big success among
new and small quantity users.
The idea behind this concept is to flank the core product by offering different variations of size and price so that the conaumer finds some brand to choose from.
3.Brand extensions:- Marketers like to have aloyal consumer base so that those particular brands enjoy high brand equity in the market. In such cases, companies make brand extensions will be able to ride on the successful brands, and that the new brrand will stand in its own right in the course of time. At times, the
idea does not work and the result is the strong preference for the original brand itself gets diluted in the bargain. However, if this strategy works, it has been of tremendous value leading to the formation of a number of umbrella in a variety of products. Brand extension strategy offers a number of advantages. A well
respected brand name gives the new product instant recognition and easier acceptance. It enables the company to enter new product categories.Today this brand has a number of extensions like GodrejNo.1sandle,Godrej No.1 rose,FairGlow.All these brands have been positioned at different segements.
4.Building product lines:- Some companies add related new productlines to give the consumer all the products he/she would like to buy under one umbrella.The Godrej added products in the cosmetics range so as to offer their customers a one stop shop for all the necessary goods like appliance, moisturising creams
to face scrubs and delicately shaded eye colours. Godrej has adopted a strategy. It has introduced different kinds of shoaps,appliance,food care in last 10 years.By adding a number of flovers in each product line the company grew in the industry. Building related product lines is today the market leader in the
appliance, and food products industry.
5.New product development:- Given the intrnse competition in most products today, Godrej has to face some problem in developing new products because of competeshion in the market and the brand is also not getting proper recognisation also.There existing products are vuliable to change consumer needs and
tastes, new technology, shortened product life cycles and increased domestic copmetition.By devoting one’s efforts on new product development. With the help of new products a company can enter a growing market for the first time, and supplement its existing product line.New product could also mean offering
improved performance like small Refregirator to big to doar sets or greater perceived value and replacing existing products or relaunching old products which are tangeted at new market segments.
6. Innovations in core products:- In the Godrej FMCG products, the life of a product is short. Godrej therefore, continually try to introduce new brands to offer some thing new and meet the changing requirements of the customer. A consumer is also open to try out new options and, on the other hand, brand loyal
segment is presuaded to upgraded their choice.Hence it is prudent for a marketer to innovate from time to time both by technological expertise as well as from the consumer’s or dealers feedback. Such innovations are tried out around the core product of a company.
7.Long term outlook:- Many companies adopt a long term outlook towards growth in an FMCG market. In the process, short term gains which might adversely affect the long prospects of the company are sacrificed.
8.Extending the PLC:- During a product’s life of Godrej company for its FMCG may have to reformulate its marketing strategy because economic conditions are not good this time all round the world, competitors launch new assaults, and the product encounters new types of buyers and new requirements.
Consequently, an Godrej FMCG try to extend the PLC and plan successive strategies appropriate in each stage in the new environment. In the maturity stage of the PLC, some companies abandon their weaker products. They prefer to concentrate their resources on their more profitability products and quickly
develop new products. The main loophole in this is due to ignoring the high potential that many old products still have. For example, existing models in products like refegrater and microwave oven etc. In India have experienced a good demendwhenever new options were offered. Here older models become more
attractive in the popular price segement or first time buyres.
9. Expanding markets by usage :- A company usually expands the market for its brand in two ways. That is, either to increase the number of customers or by encouraging more consumption per intake. Note that Sales volume = number of brand users * usage rate per user.
The usage rate of the consumers can be increased in a number of ways. For instance, it may try to educate or persuade customers to use the product more frequently. Godrej did this with soap Godrej No1. The concept of soaps in India was limited to hygienic only and takes bath. By aggressively
promoting fragrances more as a medium of attraction than as a way to bath, Godrej has increased the usage of Fair Glow to cover consumption of Godrej soaps.
Secondly, Godrej Company tries to induce users to consume more of the product on each occasion. Say, a haircolour marketer might convince the users that the haircolour is more effective with one rinses rather than two or more.
Thirdly, Godrej Company tries to discover new product uses and convince customers to use the product in more varied ways. Rim Locks
inferior quality of locks which were sold to customers. Good Knight also positioned itself as an anti-mosquito purpose. By extending their consumer base to the individual consumers and by convincing them of the product benefits Godrej have greatly increased their market shares.
introduced as a remedy for falling hair. It was later on extended to cover prevention of falling hair also. Finally, it was repositioned as cosmetic and not just hair oil. Different ways of styling hair were shown in its advertisements. The usage has increased from that of pure hair oil, to that of a part of a lady's total
styling kit
10.Wide distribution network:- A very simple way of increasing an FMCG market share is by developing a strong distribution network, preferably in terms of more locations. Once the reach of the product has been extended, it is likely to gain in market share because of its deep penetration. An extensive
distribution system can be developed over time, or the Godrej may acquire another company which has an extensive distribution network. As stated earlier, Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good distribution network. This stands as the prime reason behind their market
leadership in respective businesses. But because of some problem Godrej have failed to maintain the strong distribution network.
11.Monitoring the pulse of the consumers:-Companies spend considerable effort to find out the what, where, how and when of their consumers. They figure out all sorts of things about them that the latter arc not even aware of.
consumers and how to satisfy their needs and wants in a better manner. It helps them to monitor the pulse of their buyers so that they are able to identify and/or anticipate the needs of the consumers and be able to satisfy them in a better manner than the competitors.
12. Advertising and media coverage:- Advertising is required to build awareness about an FMCG or brand which is available in the market but not many people might know about it. Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand.
Persuasive advertising becomes important in the competitive stage, where the company's objective is to build a selective demand for a particular brand. Most advertising falls into this category. For example, Pantene shampoo attempts to persuade consumers that it delivers more benefits than any other brand of
shampoo. Marketers try to establish the superiority of its brand through specific comparisons with one or more brands in the product class.
its products will induce the viewer at the time of actual demand.
13.Sales promotion:-Sales promotions offer a direct incentive to buy more in the short term. They are designed to stimulate quicker and/or greater purchase of particular products by consumers or the trade. However, a few points have to be kept in mind. They yield faster and more measurable responses in sales than
advertising docs. They mainly attract the deal prone consumers who switch brands as deals become available. Loyal buyers normally do not change their brand as a result of competitive promotion
MANAGING LINE EXTENSIONS-A CLOSER LOOKThere arc several factors which can explain why Godrej Company has pursued line extensions as their marketing strategies.
1. Customer segmentation:- Managers perceive line extensions as a low-cost, low-riffc way to meet the needs of various customer segmentsand by using more sophisticated and lower-cost market research and direct marketing techniques, they can identify and target finer segments more effectively than ever
before. In addition, the quality of audience-profile information for television, radio and print media has improved; managers can now translate complex segmentation schemes into effective advertising plans.
2.Consumer desires:- Consumers are switching brands and trying products they have never used before. Line extensions try to satisfy the desire for "something different" by providing a wide variety of products under a single umbrella.
keeping them loyal to the brand franchise. Godrej launched its refrigerator in different sizes and AC in different tons, Soaps in different verity.
and labeling across all items in a brand line, they can achieve an attention-getting billboard effect on the store shelf or the display stand and thus leverage the brand's equity.
3.Pricing breadth:- Marketers often extend the line on superior quality platform and set higher prices for the new offerings than their core items. In markets subject to slow volume growth, marketers can increase unit profitability by attracting current customers move up to the "premium" products. In this way a
marketer also lends "prestige" to its product-line. Similarly, some line extensions are priced lower than the lead product. For example, American Express offers its Optima card for a lower annual fee than its standard card. Extensions give marketers the opportunity to offer a broader range of price-points in order to
capture a wider audience, and—thereby serve as "volume builders."
4.Excess capacity.On some occasions companies added new product lines to make use of their excess capacity or to improve efficiency and the quality of existing products. In fact, excess capacity encourages the introduction of line extensions that require only minor adaptations to current products.
5.Short-term gain:-Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the
career risk of introducing new products in this crowded market.
6.Short-term gain:- Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the career risk
of introducing new products in this crowded market.
7.Energizing a brand:- A line extension can be an effective way to make a brand more relevant, interesting, and visible. In doing so, it can create a basis for differentiation, build the audience for the advertising of an old brand (though the brand may be healthy), and stimulate sales. This would give new as well as old
customers sufficient reason to buy the brand.
8.Exploitation of variety fulfillment :- A brand may be stretched across multiple product categories to take advantage of a common and important consumer benefit existing in both, the products and the consumer perceptions. This is the common benefit of exploitation strategy which ensures that sales in the other
categories do not affect the parent brand. Line extensions can also increase a brand's consumer share of requirements within a given product category.
9. Expanding a brand's core promise to new users:- A brand may have a strong image that promotes loyalty and exclusiveness. A line extension can extend that promise. In fact, line extensions can perform the role of continually improving the core brand. Intelligent line extensions may be used as means to attract
users who buy multiple brands.
10. Managing true innovation:-. Line extension is an effective way to foster and manage true innovation, thereby enhancing the value proposition, expanding the usage contexts, and blocking competitive entry.
11. Blocking or inhibiting competitors:- Although niche markets may represent marginal businesses, they may strategically represent important footholds for competitors. Line extensions have the potential of inhibiting or neutralizing moves by competitor. Failure
for market leaders, as can be seen from what happened to the present situation of Godrej FMCG industries.
12.Testing ground for national launch:- Product line extensions can also be effective ways to test-market product improvements and at the same time enter emerging segments. Thus, logic seems to be on the rise for any new launch
Consumer products
Appliances :-
1. Refrigerators.
2. Washing Machines.
3. Air-Conditioners.
4. Microwaves.
5. DVD Players.
L Locks
1. Pin Cylinder Locks.
2. Lever Mortise Locks.
3. Rim Locks.
4. Furniture Locks.
5. Ultra Locks.
6. Padlocks.
7. Cylindrical Locks.
Furniture :-
1. Office Furniture:-
i) Interiors.
ii) Techno series.
iii) Storage:-Common storage, Personal/ Aisle, Conventional storage, System storage, Display storage.
iv) Seating:-General purpose chairs, High performance, Lounge furniture, Multi task, Office/Multipurpose chairs, Public seating, Task intensive seating, Training Room.
v) Desking.
vi) OPOS.
2. Special Solutions:-
i) Marin Solutions.
ii) Lab Solutions.
3. Home Furniture:-
i) Living room.
ii) Dining room.
iii) Kid’s room.
iv) Study room.
v) Modular kitchen.
vi) Bedroom.
Security Equipment :-
1. Physical Security Products:-
b) Record Protecting Equipment:-Centiguard-fire safes, Dataline-data safes, Fire Resisting Record cabinet, Record Room Doors, Fire resisting filing cabinet.
c) Burglary Resisting Safes:- Popular Safes, D-tel depository cabinet, Defender Plus safes.
d) Vault Equipments:-Steel Fabrication Strong rooms, High Security Door, Defender Plus strong room doors, Currency bin cabinet, Vault Accessories.
2. Currency Handling Systems:-
a) Crusader currency counting machine
b) Swift CCM
c) Currency sorting machine
d) 3rd Eye fake note detectors
3. Electronic Security System.
4. Home Safes.
“Customers want high quality at low prices and they want it now.” – Bill Gates
In the world of business, product and price are part of the 4Ps of marketing. The strategic pricing of your product is such an important
make your business so it should not be handled with kid gloves.Wal-Mart have gained and retained leadership position in its industry
“Anybody can cut prices, but it takes brain to produce a better article.” – Phillip D. Armour
Your adopted product pricing strategy can give your business an unfair advantage just like Wal-Mart’s and that’s why most businesses try to compete at the price level.
product pricing strategy? You will find your answers below.
“There is one rule for the industrialist and that is: make the best quality goods possible at the lowest price possible, paying the highest wage possible.
When it comes to the pricing of your product, there are certain factors you must take into consideration. In this article, I will be revealing to you
time, below are the 7 critical factors that can influence the pricing of your product.
“The best thing to invest in your business is your time. To schedule, plan and use time effectively, know your turf and know your objectives. Assess the obstacles and opportunities, then devise your strategies.
7 Factors That Will Influence Your Product Pricing Strategy
1. The level Of Competition
Most entrepreneurs fancy the concept of selling their products with a very high margin. This idea can only be realistic when you have a monopolistic hold on the market
“In business, the competition will bite you if you keep running. If you stand still, they will swallow you.” – Victor Kiam
When trying to adopt a product pricing strategy or determine the right price for your product, the issue of competition is a factor that must be trashed out effectively.
“Defeat your opponent by strategy and flexibility.” – Sun Tzu
The point I am trying to stress here is this; if your competitor sells the same product you are selling but at a lower price , it may affect your business negatively.
pricing strategy without first putting your competition into consideration. Pricing your product without giving a heck to your competitor’s product pricing strategy
“The ultimate goal of the Dangote Group is to dominate every niche in which it operates. In order to achieve this goal; we acquired over 3000 new trucks, developed a strong distribution network and increased production capacity. Our strategy is to sell our products faster than our competitors and at
uniform price.” – Aliko Dangote; the richest black man in the world
2. Perceived value of your product
This is another factor you must take into consideration before setting a price for your product. Your first step is to ask this question “
The reason perceived value is a critical factor to consider in a product pricing strategy is because customers often associate low price with low quality
quality. So before fixing a price for your product, make sure you strike a balance between the price of your product and its perceived value
3. Product development cost
This is definitely a factor you cannot turn a blind eye to. With respect to normal business and market economics, you should never price your product below its actual cost price
produced.
But in this case, I am not talking about production cost. I am talking about product development cost; a cost incurred from research and experimentation
If you are a business owner, you should know that newly introduced products usually command a high price. This high introductory price is based on two reasons:
a. The first reason for the high product price is due to lack of competition. Since the product is the first of its kind in the market place, there will be less or no competition thereby giving room for the company to fix price. The second reason is this;
investmentschanneled into the research and development of the product.
However, I have seen some company successfully use the product pricing strategy of losing on the front endby pricing below cost price only to recoup you losses and pick up some profits from the back end. So whatever product pricing strategy you choose; just make sure it positively adds to your bottom line.
4. Economic trend
This is another unavoidable factor that can influence the pricing of your product. I don’t even need to stress much on this. As an entrepreneur, you should know that
definitely influence your adopted product pricing strategy either positively or negatively.
5. Level of market demand
This is the fifth factor that can greatly affect your product pricing strategy. Just like economic factor, I feel this point is self explanatory. In business economics,
Some companies even go as far as creating artificial scarcity in order to gain a stronger hold on the industrial price level.
6. Demographics
The demographics of the targeted customers will indisputably influence the pricing of your product. Demographic factors to consider before taking a stand on your product price include:
The age bracket of the customers you are targeting
Your business location and customer’s location
Educational status of your targeted market
To cut it short, demographics is all about who your targeted customer is. Let me share an illustration with you.
Assuming your product is a portable bag specifically designed for students. If the region you are targeting has a population of maybe 100,000 out of which 90% are students
students; you know what to expect.
7. Class of targeted customers
The class of customers you are targeting will greatly influence the pricing of your product. In the society, there are three classes of people. The rich, the middle class and the poor or more preferably “low income earners,” who are always the majority in terms of population.
A product targeted at the rich will surely command a higher price than those targeted at the middle class. If products targeted at the rich commands a low price, it will be tagged valueless by the rich
So when devising your product pricing strategy; consider the societal class of your targeted customers first. It’s very important. For instance,
Example of an entrepreneur that adhered to the “class of targeted customer” factor while devising a product pricing strategy and became extremely successful was
Ford, cars were exclusively for the rich. Another entrepreneur that won at the product price level was Sam Walton, founder of Wal-Mart
As a final note, I think it’s worthwhile you know that price is a double edge sword that can either make or break your business.
team, professionals or external advisors. Who knows, your product price; if unique, can give you a competitive edge. In conclusion, I leave you with this quote:
“You don’t have to be the biggest to beat the biggest.” – Henry Ross Perot
5. Premises Security Solution. Indian FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC
presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert
them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is
at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG.
Between them, they account for 35 of the top 100 brands.
S.
NO.
Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco
Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene
and Health Care
10. Marico Industries
Source: Naukrihub.com
The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds.
category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India.
The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by
HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on.
Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices.
In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's Head and Shoulders and
Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk.
Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-
continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World
Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in
consumer products and services in the Global Beauty and Wellness space.
Outlook
There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products.
Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.
Chillibreeze's disclaimer: The views and opinions expressed in this article are those of the author(s) and do not reflect the views of Chillibreeze as a company. Chillibreeze has a strict anti-plagiarism policy. Please contact us to report any copyright issues related to this article.
Out of 5 “chilies”, our
6. Marine Products.
7. Fire Doors.
8. Godrej Entranza Doors.
Office Automation :-
1) MFP.
2) Fax Machines.
3) Production Printing Equipment.
Conferencing Solutions:-
1) Display Solutions.
2) Audio/Video Conferencing.
3) Integrated Solutions.
4) Electronic Copy Boards.
Typewriters:-
1) Manual Typewriters.
Vending Machines:-
1) Godrej2CVM
2) Godrej Mini Café 4000.
Soaps & Personal care:-
1) Soaps:- Cinthol, Fair Glow, Evita, Shikakai, Vigil, Godrej NO.1.
2) Toiletries:-Cinthol, Shaving Cream, Power, save lotion, Body spray.
3) Hair Care:-Godrej Nupur, Hair colours.
4) Household Care:-Godrej dish wash, Glossy.
5) Fabric care:-Ezee.
Foods:-
1) Sofit Soymilk.
2) Edible oils and vanaspati.
3) Fruit drinks and nectar.
4) Bakery fats.
Air Care:-
The Ambi Pur Range
Household Insecticides :-
1) Good Knight.
2) Hit.
3) Jet.
Housing:-
1) Commercial.
2) Retail.
3) Residential.
Pest Management Services:-
1) Rodex.
2) Termin-8.
3) Intelligel.
4) Wood Borer Management.
5) Bed Bugs Management.
Industrial products
Storage solutions:-
1) Warehouse solution.
2) Document and record management solution.
3) Shop floor solution.
4) Consultancy services.
5) Digital picking solutions.
Automated Warehousing:-
1) Automated Storage and Retrieval System (AS\RS).
2) Stacker Cranes.
3) Miniload System
4) AGV Stackers.
5) Automated Guided Vehicles.
6) Rail Guided Vehicles.
7) Baggage\ Cargo Handling.
8) Warehouse Management Systems.
Material Handling Equipment:-
1) Counter Balance Trucks.
2) Warehousing Products.
3) Access Equipment.
4) Tyre Handlers.
5) All Terrain Trucks.
6) Tennant Cleaning Equipment.
7) HUBTEX Side loaders.
8) Attachment & Accessories.
Process Equipment:-
1) Heavy Walled Reactors.
2) High Pressure Vessels.
3) Distillation/Fractionationg Columns.
4) Rector/Tower Internals & Trays.
5) Custom Built Equipment.
6) High Pressure Shell & Tube Heat Exchanges.
CONCLUSION:-
In this project, we have defined generic, tangible and augmented facilities attached to Godrej product. Different types of consumer products, we looked at the special characteristics
adopted by FMCG in their quest for growth in this highly competitive and evidently low involvement purchase decision. Finally, we took a closer look at product line decision and various dimensions considered in the line extension.
Comments
amrita mattar
Nice efforts! Keep it up!
chaussure de basket
The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion.
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Scope Of The Sector
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in
the economy. A well-established distribution network, intense competition between the
organized and unorganized segments characterize the sector. FMCG Sector is expected to
grow by over 60% by
2010. That will translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100
crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates
and confectionery categories are estimated to be the fastest growing segments, says an HSBC
report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a
fine recovery since then.
For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter.
An estimated double-digit growth over the next few years shows that the good times are likely
to continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost
rural incomes, hence providing better growth prospects to the FMCG companies. Better
infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
demand in the market. Because of the low per capita consumption for almost all the products in
the country, FMCG companies have immense possibilities for growth. And if the companies
are able to change the mindset of the consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007, boosting
purchasing power in the countryside. However, the demand in urban areas would be the key
growth driver over the long term. Also, increase in the urban population, along with increase in
income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India
accounts for more than 40% consumption in major FMCG categories such as personal care,
fabric care, and hot beverages. In urban areas, home and personal care category, including skin
care, household care and feminine hygiene, will keep growing at relatively attractive rates.
Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term
growth categories in both rural and urban areas.
Indian Competitiveness and Comparison with the World Markets
The following factors make India a competitive player in FMCG sector:
Availability of raw materials
Because of the diverse agro-climatic conditions in India, there is a large raw material base
suitable for food processing industries. India is the largest producer of livestock, milk,
sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and
fruits &vegetables. India also produces caustic soda and soda ash, which are required for the
production of soaps and detergents. The availability of these raw materials gives India the
location advantage.
Labor cost comparison
Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in
the world, after China & Indonesia. Low labor costs give the advantage of low cost of
production. Many MNC's have established their plants in India to outsource for domestic and
export markets.
Presence across value chain
Indian companies have their presence across the value chain of FMCG sector, right from the
supply of raw materials to packaged goods in the food-processing sector. This brings India a
more cost competitive advantage. For example, Amul supplies milk as well as dairy products
like cheese, butter, etc.
