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.