28 March 2014


Starting from one cup of coffee in the morning right up to that relaxing malt beverage at night, we rely heavily on FMCG. Everything from toothpaste to processed foods and health drinks to body care products comes from FMCG. It refers to consumers non-durable goods, Sold quickly at relatively low cost, Generally sold at large quantities, This sector touches every aspects of human life from looks to hygiene to palate.
FMCG sector profile
It is the 4th largest sector in the Indian economy. Total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products.
Top Buyers from India
India is one of the world’s largest producers of a number of FMCG products but its exports are a very small proportion of the overall production. Total exports of food processing industry were $6.9billion in 2008-09 and marine products accounted for 40 per cent of the total exports. Though the Indian companies are going global, they are focusing more on the overseas markets like Bangladesh, Pakistan, Nepal, and Middle East because of the similar lifestyle and consumption habits between these countries and India. Hindustan Lever Limited (HLL), Godrej Consumer, Marico, Dabur and Vicco Laboratories are amongst the top exporting companies.
Increase in Sales Efficiency & Effectiveness of FMCG.
As a marketing executive, under pressure to improve results, justify budget make a good strategy and deal with an ever-increasing array of competitors. Strategic approach uses proven process management methods to help create sustainable, manageable and continuously improvable results of FMCG product.
Important strategic factors
*      Design or improve the sales process for better results
*      Move the Sales Management into the 21st century
*      Create more effective sales compensation plans
*      Develop a channel strategy
*      Add an effective inside sales approach to the existing sales toolkit (or improve the best / select tools)
*      Make sales people better presenters
*      Train sales people
*      Take Sales Operations function to the next level

FMCF Market Now
In this age of accelerating commoditization, companies are increasingly gambling on the success of innovative /new products, yet companies continue to release new products the same way they always have. As far as the economic scenario is concerned India is surely on a roll. The last twenty years have really proved extremely beneficial for India. The country now stands only after Brazil as far as GDP ranking is concerned. India has replaced Russia and grabbed the second position in the global forefront mostly due to the strategic planning and huge amount of expenditures on education in India. India is expected to cross the 8 percent mark and move to 9 percent GDP growth rate. India is the second largest populated country in the world sheltering over one billion people. Although India has not had a striking 10 percent year over year economic growth as its neighbor
China it has still managed to grow at a nominal rate. India's GDP growth has been slow but careful. According to trade pundits India will take the third position as far as GDP growth in concerned by 2020 replacing Germany, the UK, and Japan. Only United States and China will be ahead of it.


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