industry session - fmcg [compatibility mode]

8/8/2019 Industry Session - FMCG [Compatibility Mode]

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Industry SessionsFMCG

October 2010 ZIGEDU Learning Solutions


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What is FMCG?

Fast Moving Consumer Goods (FMCG) goods

are popularly named as consumer packaged

goods. Items in this category include all

consumables (other than groceries/pulses)

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peop e uy a regu ar n erva s. e moscommon in the list are toilet soaps, detergents,

shampoos, toothpaste, shaving products, shoe

polish, packaged foodstuff, household

accessories and extends to certain electronicgoods. These items are meant for daily of

frequent consumption and have a high return.


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The Industry

Indias FMCG sector is the fourth largest sector in the economy

Creates employment for more than three million people in downstream activities.

Its principal constituents are Household Care, Personal Care and Food &

Beverages.

The total FMCG market is in excess of Rs. 85 000 Crores. It is currentl rowin

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at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well established distribution network, low

penetration levels, low operating cost, lower per capita consumption and intense

competition between the organized and unorganized segments.


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SWOT Analysis

Strengths1. Low operational costs2. Presence of established distribution networks inboth urban and rural areas3. Presence of well-known brands in FMCG sector

Weaknesses

1. Lower scope of investing in technology & achievingeconomies of scale, especially in small sectors2. Low exports levels3. "Me-too" products, which illegally mimic the labelsof the established brands. These products narrow thescope of FMCG products in rural & semi-urban market

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Opportunities

1. Untapped rural market2. Rising income levels, i.e. increase in purchasingpower of consumers3. Large domestic market- a population of over onebillion.4. Export potential5. High consumer goods spending

Threats1. Removal of import restrictions resulting in replacingof domestic brands2. Slowdown in rural demandTax and regulatory structure

SWOT


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Key Drivers (Contd.)

Export - Leveraging the Cost Advantage - Cheap labor and quality product & services have helped India to

represent as a cost ad-vantage over other Countries. Even the Government has offered zero import duty on

capital goods and raw material for 100% export oriented units. Multi National Companies out-source its

product requirements from its Indian company to have a cost advantage. India is the largest producer of

livestock, milk, sugarcane, coconut, spices and cashew apart from being the second largest producer of rice,

wheat, fruits & vegetables. It adds a cost advantage as well as easily available raw materials.

Sectoral Opportunities Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below:

Dair Based Products - India is the lar est milk roducer in the world et onl around 15 er cent of the

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milk is processed. The organized liquid milk business is in its infancy and also has large long-term growthpotential. Even investment opportunities exist in value-added products like desserts, puddings etc.

Packaged Food - Only about 10-12 per cent of output is processed and consumed in packaged form, thus

highlighting the huge potential for expansion of this industry.

Oral Care - The oral care industry, especially toothpastes, remains under penetrated in India with

penetration rates around 50 per cent. With rise in per capita incomes and awareness of oral hygiene, the

growth potential is huge. Lower price and smaller packs are also likely to drive potential up trading. Beverages - Indian tea market is dominated by unorganized players. More than 50% of the market share

is capture by unorganized players highlighting high potential for organized players.


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Top Players

Domestic

ITC (Indian Tobacco Company)

GCMMF (AMUL)

Dabur India

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International

Hindustan Unilever Ltd.

Nestl India

GCMMF (AMUL)


Godrej Consumer Products Ltd. Britannia Industries

Marico Industries

Nirma Limited

Colgate Palmolive (India) Ltd. Cadbury India

Britannia Industries

Procter & Gamble Hygiene and

Health Care

HJ Heinz Ltd.

PepsiCo

Coca Cola


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What does it take?

Good Team Player

Able to work under pressure and time line

Strong communication skills

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rong organ za on s s Good numerical skills

Hard working

Creative


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Hierarchy in Sales

Area Sales Manager - Reporting to the Sales Manager, the role of Area Sales

Manager is primarily responsible for delivering profitable sales in line with agreed

targets. Main activities include liaising with distributors, handling team of salesofficers, reporting, designing and implementing promotional activities

Sales Manager Reports to the Category Head. Responsible for sales and

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mar e ng ac v es n a par cu ar geograp ca area

Category Head Responsible for sales of a particular category of products, e.g.

Personal Care, Cosmetics, etc.

Regional Head Most companies in India have four regional heads, one for eachof North, South, East and West. The Regional Heads are responsible for sales figure

for their particular region.

National Head The senior-most position in the Sales and Marketing Department.

This job cam also be handled by a CMO.


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Marketing Roles

Assistant Brand Manager Reports to the Brand Manager. Responsible for 1 To

creating media plan for advertise products at relevant media, keep vigil on brand

promotional activities, whether activities are being performed accordingly or not,conduct survey with competitor's service or product and collecting feedback and

analysis, Get information about consumer's demand and interest, Collect information

about area of consumers, display brand at target place

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Corporate Communication and PR - In charge of all the communication that goesout to the press and public from the corporate.

Brand Manager Oversees the work of an Asst. Brand Manager and selects and

approves the media plan, in charge of product promotions and their impact, liaising

with creative agency for creating advertisements, etc.


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Other Opportunities

Most Indian FMCG companies recruit from MBA colleges for a myriad of roles in

departments other than Sales and Marketing:

Human Resource

Finance and Accounts

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Treasury

Strategy

Operations

Supply Chain and Distribution


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Whats in it for you1. Job security - It is a stable industry. Unlike some other industries, such as automobiles and IT, FMCG industry does not suffer frommass layoffs, every time the economy starts to dip. One may drop the idea of buying a car but not the idea of having dinner. Thislends FMCG a level of job security unknown in other industries.

2. A high profile industry - India has 1.1 billion people and all are consumers. Therefore everyone is affected by FMCG sector.

3. Quick experience - Due to the huge volume of business in the FMCG sector, one is exposed to a lot of experience in a very shortspan and get more experienced in less time working in FMCG than any other sector, no matter whether in sales, marketing,operations, accounting, etc. In the end, one will land up learning more and gaining a firm grasp of basic business skills.

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4. A wide range of experience -One can have a wide range of choices if one desires a career path in FMCG sector. Wideavailability of options for working in a large MNC or a small local company ensures that people in FMCG sector have a range of

job roles available to them. The "fast moving" part of FMCGs requires people who are flexible. Transfer from sales to marketing orto operations is very common. In fact all three roles can be played at once in smaller firms. One will get to learn a lot, even if oneenters this sector for a short duration.

5. An industry that thrives on innovation - FMCG sector gives the opportunity to do creative work. There is a constantrequirement of innovation in production, advertising, packaging and branding.

6. Nationwide opportunities, both urban and rural - FMCG sector offers opportunities through its connection to the primary sectorin rural and urban areas. The sector is particularly attractive for those interested in working in different parts of the country, as ithas a nationwide base, unlike many other sectors confined to particular locations.

7. Offshore opportunities - The International offices of most FMCG multinationals regularly recruit staff from our country, eitherfor short projects or for longer stints.


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Gokul Bajaj

Email: [email protected]

Mobile No: 0 9911 48 48 11

Registered Office

94 Ga an Vihar Main

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Vikas Marg,Delhi -110051

Corporate Office

301, 3rd Floor, DDA Building,

Laxmi Nagar District Center,

Near Nirman Vihar Metro Station,Delhi-110092

Thank You!

industry session - fmcg [compatibility mode]

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