All Document Reader 1718268749554
All Document Reader 1718268749554
All Document Reader 1718268749554
INDEX
Bibliography
EXECUTIVE SUMMARY
I LOKESH M currently pursuing my graduation in Bachelor of Commerce with Accountancy and Finance at
SHANTIDHAMA DEGREE COLLEGE ,B Com is an undergraduate programme under NEP scheme.
Through this course connect the class room learning to real world environment, an individual can learn
practical, professional and the technical skills associated with many of the procedures of financial analysis
and accounting standards.
Bangalore University B.com programme we are having a subject internship in which we have to work hands
on training under a NCR ENTERPRISES COMPANY for a period of 6-8 week
As a part of academic, I did my internship at NCR ENTERPRISES COMPANY for 30 days (90 hours). In
this period I have learnt to access Company data and various skills related to enhance the growth of the
company sales and the different types of marketing strategies of FMCG products to enhance sales and
Distribute food products to various Retailers.
This project is about my internship & detail information about the task which had been undertaken by me
during this internship period.
CHAPTER 1: INTRODUCTION
BCOM internship program is a practical requirement and challenges of real life that conducted by the
student of intern. Internship is a most important part of BCOM program. Internship program time duration is
90 Hours. During the period I have closely worked with the employees of NCR ENTERPRISES Company.
This all about internship report shows the outcomes of the study during the internship period. I was focused
the topic “Marketing of FAST MOVING CONSUMER GOODS (FMCG PRODUCTS) “.
Bangalore University has made a requirement to the prepared internship report in BCOM program. Provide
job exposure is primary goal of the internship program and opportunity to the real life gathering practical
knowledge. Students are place in production, organization, financial organization, any types of enterprise
and develop the project report.
The internship program finishes a period of 90 hours organizational attachment. After completing the report
on marketing of FMCG PRODUCTS internship. As a requirement a program need to submit the report.
Distribution includes all activities undertaken by the producer, alone or in cooperation, since the end of the
final finished products or services until they are in possession of consumers. The distribution consists of the
following major components: Distribution channels or marketing channels, which together form a
distribution network; Logistics or physical distribution. In order to effective achieve, distribution of goods
requires an amount of activities and operational processes related to transit of goods from producer to
consumer, the best conditions, using existing distribution channels and logistics system. One of the essential
functions of a distribution is performing acts of sale, through which, with the actual movement of goods,
their change of ownership takes place, that the successive transfer of ownership from producer to consumer.
This is an itinerary in the economic cycle of goods, called the distribution channel
The FMCG sectors is the one of the profitable wholesale sector that makes a transaction with the retail
stores nearby places .
largest sector that contributes to India’s GDP. It has grown from U.S. Dollars (USD) 31.6 billion in 2011 to
USD 49billion in 2016 (IBEF, 2017). Its principal constituents are household care, personal care and food
and beverages. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the
consumer market. The market is expected to maintain high growth rate as the middle class, semi urban and
rural populations are rapidly adopting branded FMCG products. Distribution is very critical to the success of
FMCG companies in India. The variables in distribution management are so dynamic that companies have
to constantly experiment and devise better market classifications and route planning methods. Even after the
latest researches undertaken in studying the distribution models of FMCGs in India, there have been
frequent changes, innovations in the marketplace when it comes to practice. On seeing limited acceptability
of organized trade in smaller geographies, FMCG companies are going rural with innovative approaches.
Successful initiatives like HUL’s
It indicate that rural India is at the focus of FMCG companies. Their attempts at tweaking distribution
methods are influenced largely by an urge to drive volumes from rural markets and values from their urban
counterparts. However, in this spree to go rural, FMCG companies tend to overlook the erstwhile satellite
towns which are in the growth phase. Peripheral areas of smaller cities are often left neglected and
underserved as geographical markets. This results in a gap in fulfilling the FMCG demand of the consumers
residing in these areas. These are the consumers who thanks to the increased television reach, better
electricity coverage and an access to fast and easy internet services over hand-held devices have an updated
exposure to the latest and best among FMCG products.
Cities in India have been classified in multiple ways to understand the market potential they offer. Certain
classifications are applicable to the FMCG industry as well. There serve Bank of India (RBI) has classified
Indian cities and formed four population-group centres. It is used the population data from the Census of
2001
. tend to leave out peripheral markets for spurious imitation products. It must be understood that shelf space
is limited. Thus in each outlet of peripheral areas, genuine products have to compete for shelf space with
fake products. As a result, not only is there considerable loss of possible revenues, but also a high possibility
of tarnishing the carefully built brand reputation due to the presence of imitation products. This study
endeavours to highlight the necessity for FMCG firms to reach and serve peripheral areas of towns that are
classified as cities in the high growth phase. A case of a leading multinational FMCG firm’s efforts in this
direction is detailed.
In an analysis of 45 rapidly growing profitable firms, Macarena’s, Kumaraswamy, Day, and Baveja (2002),
outlined five strategies for rapid firm growth—product proliferation, mass market development, increasing
value to select customers, distribution innovation and acquisition and consolidation. For mass market
development, broadening of distribution by using multiple channels of distribution was recommended, and
for distribution innovations firms were encouraged to challenge conventional wisdom of existing channels,
identify unfilled needs of buyers within the existing distribution framework, identify target customers for
new distribution systems, and expand geographies of distribution system. Stern and El-Ansari (1992) define
distribution channels as a set of interdependent organizations involved in the process of making a product or
service available. They together form what FMCG companies’ term as their distribution configuration.
And they work together as channel partners in the process of making the goods reach from ‘farm to
fork’. Morris and Serge (1985) recommend that channel members frequently alter their environment.
Although 2012 witnessed a slowdown, 2013 saw higher disposable income in the hands of rural
dwellers because of schemes like Direct Benefits Transfer (DBTL)(Jha, 2013). Their purchasing power is
further expected to increase on reaping the success of the Smart Cities Mission. Increasing demand pull in
the smaller towns has-been noticed to be greater than that seen in metros. Further, the growth of the sales
per point of distribution has been higher in smaller towns – 16%, than compared to metros – 11% (Nielsen
India, 2012). As a result, the small towns which were earlier only considered as inconsequential dots on
maps are now getting global marketing giants and media planners (Ananda and Krishna, 2008).FMCGs are
an integral part of human life. Patel (2016) stresses that these products touch every aspects of human life.
FMCG products are frequently consumed
Food Trucks:
Greater control can be exercised by the FMCG companies dealing in food and beverages by using a
company operated food-truck. In most cases, the companies outsource promotional food trucks to third
parties or hand over the project to their product activation teams. Such food trucks help to sell food cooked
with company’s products as ingredients. Just like a stall, it also helps in demonstration. The advantage
which food truck carries over a stall is that it can be used to venture intonew markets when one markets’
shelf off-take improves.FMCG firms consistently brainstorming, learning from their experiences and
experimenting with ways of reaching their target customers that is retail outlets. Forth retail outlets these
companies aim to reach, shortage of cash to purchase stocks from distributor is not a major challenge.
Retailers find it difficult to keep the stocks they purchase from distributors such that there is no breakage, rat
cut and spoilage. They generally do not face a cash crunch but space crunch. They manage this crunch by
constantly striving to achieve quick shelf off-take. This shelf off-take is a direct function of merchandising
and packaging (a sub set of that product’s marketing mix).IPLC curve was used to classify towns throughout
their life-cycle. On the X-axis, time through which villages grow into towns by coming into the fold of
peripheries of major towns is depicted. Sales overtime from these towns represented through orders f r o m
others.
For achieving a dual objective of visual merchandizing and dealing with space crunch at the retail outlets,
FMCG companies place their Point of Sale Equipment (POSE) at the stores. For instance, Beverages
refrigerators, Potato Chips racks, Counter-top Chocolate boxes, confectionary visa coolers and open deck
chillers are commonly seen occupying space in stores. R a t h e r t h a n p l a c i n g t h e s e P O S E s t o w
o r s e n t h e s p a c e c r u n c h , F M C G s l i k e chocolates should be packed in such a way that it can be
hung along the edge of the billing counter at the outlet rather than placing it at the shelf. In this way, it not
only matches the eye level of the child which enters the store but also saves space and promotes impulse
buying while checking out. For FMCGs requiring a cool chain throughout their supply chain like dairy
products and chocolates, hand pulled carts could be considered to be given to the distributors. When placed
in areas of high family footfalls like residential societies and tourists pots, it will remove the myth that only
ice-creams can be sold through hand pulled carts. This can also accrue benefits of large scale sampling. To
provide a quick service to the retail outlets in the smart cities which embody high demand as a result of high
disposable incomes, it is recommended that all the distributors in these cities follow a ‘1-2-3 beat pattern’.
This means, that the salesmen should persuade the outlet to order twice a week if already ordering once and
thrice week if already ordering twice. Under the ‘1-2-3 beat pattern’, all salesmen serving their set of
assigned outlets in the territory mapped to them by the distributor should be teamed, trained and
incentivized based on the frequency of their outlet servicing. This will help in collective query handling and
in driving higher volumes. The best warehouse is where the products remain as fresh when dispatched as
they were at arrival. Distributors should be motivated and rewarded for efficient
warehousingpractices.FMCG Companies have certain schemes and visibility agreements for the retailers
wherein they incentivize the retailers to provide prominent space for its products and in return receive a
discount on the next order he places with the company. These programs should be reviewed periodically to
ascertain which outlets are performing better in sales as a result of being enrolled in such programs and thus
should be promoted to a more rewarding program or removed from the existing program as the case maybe.
Distributors of FMCG companies are primarily concerned on their Return on In v e s t m e n t ( R O I) . A s
a r e s u l t , s u g g e s t i o n s f r o m t h e c o m p a n y f o r a l t e r i n g t h e distribution model, say the
fleet of distribution vehicles, requires convincing the distributor of the profit from that change in approach
for them to readily
Research Objectives
1. To know about the Fast Moving Consumer Goods (FMCG) industry in India.
2. To analyse the dimensional attributes of Indian FMCG Industry in the name of SWOT Analysis
SWOT Analysis of Indian FMCG Industry Strength of FMCG Industry The Indian FMCG sector is the
fourth biggest sector in the economy with an expected size of ‘ 1,300 billion. The sector has indicated a
normal yearly development of about 11% per annum throughout the most recent decade. Not at all like the
created markets, which are conspicuously overwhelmed by hardly any enormous players, India’s FMCG
market is exceptionally fragmented and a considerable aspect of the market contains chaotic players selling
worldwide brands. locations in India, out of which 9 million are FMCG Karana stores. India FMCG sectors’
huge attributes can be recorded as solid worldwide presence, entrenched circulation organization, extreme
rivalry between the composed and chaotic players and low operational expense. Products which have a
quick turnover and generally minimal effort are known as Fast Moving Consumer Goods (FMCG).
FMCG things are those which for the most part get supplanted inside a year. Instances of FMCG generally
incorporate a wide scope of over and again bought consumer items, for example, toiletries, cleanser,
beautifying agents, oral consideration items, shaving items and cleansers, just as other non-durables, for
example, china, bulbs, batteries, paper items, and plastic goods, and so on Infiltration level and per capita
consumption in numerous item classes is low contrasted with world normal guidelines speaking to the
unexploited market potential. Mushrooming Indian populace, especially the working class and the rustic
segments, presents the enormous undiscovered occasion to FMCG players. FMCG not being capital-
escalated, rising information costs, expansion and expanded commoditization of items are compelling
FMCG organizations to receive new systems, to have a suitable business suggestion. Let us enrol not many
of the techniques which organizations have embraced and the result of the equivalent. Cost Cutting
Strategies While organizations depended on value climb, numerous organizations are investigating
approaches to reduce down expense. Organizations are occupied in reinforcing their conveyance and co-
ordinations, by acquiring more effectiveness and advancement in the flexibly chain. Organizations are
intently checking their stock levels and stacking designs. For instance, cleanser organizations have moved to
less expensive choices of crude materials to source their items at a serious cost. A few organizations have
chopped down their spending on advertisement. Increase in Price Because of increment in crude material
costs, numerous organizations had to build their costs and give the expense to the consumers.
cost of its cleanser bar Surf Excel (120 g) prior known as Rin Supreme from Mrs 13 to 15. They have
additionally expanded a portion of their latrine cleanser brands. Tea Companies, for example, Tata Tea and
Duncan’s Tea have additionally climbed costs for select brands in their pens. A few organizations have had
the option to keep up the costs. Parle Agro has not changed the cost of Frooti despite upward tension on
costs. It might be anything but difficult to expand the costs of premium items however if there should be an
occurrence of mainstream items, the favored decision is between decreasing load of units and keeping up a
similar value focuses or acquainting another value point with suit consumer pockets.
Introduction of Lower SKUsTo forestall down exchanging, the organizations have presented packs with
lower Stock Keeping Units (SKUs) so that per unit buy doesn’t squeeze the consumer’s wallet. With that
organizations are honing their emphasis on the current more modest packs and increment their accessibility.
Henkel Introduced another 400 gm pack of Henko washing powder at Rs 40 and pulled back the 500 gm
pack that used to sell for Rs 46. As cited by Henkel, “A group of four requires just 400-425 gm of washing
powder in a month. We pulled back the 500 gm packs as they were causing consumers to spend more and
consume more”. The organization once again introduced Pril fluid for Rs 50 (425 gm bottle), down from Rs
55 (500 gm). P&G has scaled down the pack size of its leader cleanser brand Tide from 1 kilo to 850 gm
while keeping up the value point at Rs 62. It has also marked down the size of its 500 gm to 480 gm at a
similar cost. In the ongoing situation, 25 gm and 50 gm packs are selling in higher numbers. As a result,
organizations are enlisting faster off take in the average sized packs.Restructuring to Leverage
SynergiesWith the ‘intensity of one’ methodology, PepsiCo is adjusting its refreshments and snacks
organizations under a typical initiative. This will assist them with amplifying collaborations of the two
organizations across key capacities, for example, procurement, agribusiness and creation, which prompt
creation efficiencies. This will assist them with limiting the value climb. Antagonistically, on the opposite
side Dabur among the main four FMCG organizations in India with 10 brands with deals worth over USD20
million each having wide circulation network covering 2.8 million retailers thenation over having 17 top
notch producing plants obliging requirements of differing markets is as yet remained as a fruitful Indian.
Big Data Information blast is in progress as the capacity to gain, store, and cycle information keeps on
improving exponentially. The FMCG world previously had week after week consumer deals, brand
following, consumer boards, customer information from inviting and all on repaid retailers and another
couple of hundred measurements relying upon which information/examination association you converse
with. 95% of the information being produced and offered to energetic marketers and investigators is futile.
The more brilliant associations will purchase just the significant information (oversee data costs), conclude
the right linkages to consumer conduct and use it viably to create items, oversee exchange and convey
adequately to consumers.
Environment & Sustainability Associations that can exhibit supportability over their complete biological
system will profit by more grounded consumer holding scores. Anyway the capacity to charge a premium to
take care of expanded costs will stay restricted as consumers will progressively consider manageability to be
a given as opposed to an advantage to be managed by not many. The Tesla of the FMCG world is still to be
made – utilizing new advancements and innovations.Online Grocery Shopping This is filling quickly in
most created markets yet off a little base. While most significant physical retailers currently offer internet
shopping and conveyance, the introduction of more modest online retailers with tight product offerings and
more profound costs will start to develop. Also, when a portion of this tight reach online retailers develop
huge, brands which became stronger of including another flavor or scent each quarter will battle as class and
reach management for a 500 SKU business will be simpler, however merciless for brand proprietors.Social
Media Data now moves at a fast speed. A tweet, FB post or a YouTube video can become a web sensation in
hours. Presently don’t can an association sell an item that was unsaleable in a created market because of
wellbeing worries in another less created market as guidelines had not gotten up to speed. Guidelines will
set aside the effort to make up for lost time however consumer data is only a Google search away. Data
scattering will be fast and with no spot to cover up. More brilliant brands will utilize inventive techniques to
utilize this successfully to reach worldwide while restricting brand correspondence costs.
The Indian and Multinational FMCG players are utilizing India as a key sourcing center point for savvy item
development and assembling to oblige the worldwide markets. With the ascent in the discretionary cash
flow consumers lately have moved their buying from basic to premium items. Because of this, the
organizations have begun improving its excellent portfolio. As indicated by a study directed, the FMCG
sector will arrive at new statures of USD 103.7 billion by 2020. This worth unmistakably expresses that,
there is a ton of extension in the FMCG sector for notable just as developing organizations and brands.
In the following ten years, the income of the FMCG (Fast Moving Consumer Goods) market is set to
develop at a higher rate. Patterns are an incredible way, which grandstand the current happenings and
furthermore give a standpoint about the future occasions. They additionally have a more drawn out
timeframe of realistic usability and are driven by social, social and political elements. This portrays the
marketing procedures for theFMCG organizations to find out about it every way under the sun group to
contemplate, comprehend and extemporize the techniques for gainful results.Eating the Local Goodness It is
constantly said that eat what develops near you. Each nation has diverse climatic conditions and the food
that fills in one’s nation is most appropriate for them. Individuals are regularly scared sideeffects that look
extravagant and are flown down from some nation on the planet. Yet, what they don’t understand is it can
effectsly affect their wellbeing. In this way, it is in every case better to adhere to your foundations and eat
the nearby produce. The FMCG organizations have additionally understood this and are progressively
engaging consumers by dispatching items with territorial flavors, fixings, plans and then some. The
enormous brands just as SMEs are associating with consumers by utilizing territorial flavors and fixings that
meet the local and home nation pride.
There is developing mindfulness among the consumers with respect to their prosperity. The worldwide and
neighbourhood FMCG organizations are putting significantly in the wellbeing and wellbeing sector, as
larger part of individuals today are into wellness and mean to live and encounter a solid way of life. The
saying Health is Wealth, genuinely characterizes the strength of a person, as it is the most essential
perspective to lead a more extended and illness free life. Wellbeing and health is a pattern, which is forming
the consumer inclinations. The main worldwide and Indian food and drink organizations are grasping this
pattern and zeroing in on making new rising items in the medical services area. The market is constantly
overwhelmed with items which guarantee the best of wellbeing and an eye finding name perusing ‘100%
Organic’, which on occasion are deceiving and vague. With the goal for organizations to have an effect, they
have to bring to the table solid and natural choices on a platter which are most appropriate for the
consumer’s comfort. Online Marketing Leads the Way The millennial and Gen Z consumers are filling in
numbers as are their interesting arrangements of requests. An ongoing study expresses that they are more
intrigued to realize the encounters to share it on different online media stages. Living in an advanced world,
web based marketing is certainly an approach to connect with the crowd. As everybody today is impacted by
web-based media, it certainly gives a diagram to comprehend or know any particular about items. So as to
grow, the FMCG organizations ought to accentuate on experience sharing to draw in consumer
consideration. The Customized Approach as of late, the consumers have become brand conscious as they
favor a great way of life and premium reach items. Consumers quickly need to recognize what’s coming up
for them and principally centre on the advantages and points of interest of each item. This, thusly has made
the FMCG organizations to underline on enhancing its current item portfolio and growing new ones. Also,
customization and personalization is the route forward for FMCG organizations. With an altered help
approach, the FMCG organizations add a customized touch to a consumer’s item. This includes a reward
point the organization’s name and makes the current consumers to search forward for future joint efforts. It
also draws in new consumers to encounter the customization cycle. This customization system accompanies
anexpense, yet in addition has immense benefits as it offers the FMCG organizations a knowledge into their
consumer’s conduct.
The FMCG market in India is required to develop at a CAGR of 20.6 percent and is relied upon to arrive at
US$ 103.7 billion by 2020.The development in deals of major FMCG organizations like Dabur, HUL,
Marico, is flagging the recovery of consumer request in India. As the market keeps on developing at a quick
movement, Indian Retailer investigates Porter’s five power dangers that may influence the FMCG
business.Bargaining Power of Buyers While rising salaries and developing youth populace have been key,
brand consciousness has also supported demand. With low exchanging cost prompting clients to move to
different items, there may be more interest for new items. Also, the accessibility of same or comparative
other options, sponsored by solid impact of marketing procedures will support the sector. India’s consumer
spending is relied upon to increment to US$ 3.6 trillion by 2020.
Large FMCG organizations are frequently in a situation to direct costs through nearby sourcing from a
fragmented gathering or key item providers. Providers can apply tension on organizations and even
purchasers braising costs, bringing down quality or decreasing item accessibility. Such choices generally
influence the purchasers. Competitive Rivalry numerous players are venturing into new geologies and
classes and present day retail share is relied upon to be esteemed $180 billion out of 2020. The FMCG
business has been an exceptionally fragmented industry as more organizations enter the market. On the off
chance that Wipro is enhancing and growing its item range in caffeinated beverages, cleansers and texture
conditioners, PatAnjali will burn through US$743.72 million in different food stops the nation over.
Additionally, dispatch of private name brands by huge retailers, which are seriously evaluated with offers
and limits, will restrict rivalry for frail brands.
Any new rivalry in the market presents danger to the current parts in the business. With investment
endorsements of up to 100 percent unfamiliar value in single brand retail and 51 percent in multi-brand
retail, the market is required to be packed. Also, organizations will be compelled to spend forcefully on
advertisement, which will just damage the business over the long haul.Threat of Substitutes With high
presence of various brands in the market, it’s anything but a test for consumers to change starting with one
item then onto the next. Key choices like value point and quality assume key parts in drawing in consumers.
With restricted item separation under numerous brands, it’s fairly simple for a consumer to change to
another brand. The danger of substitutes is educated by exchanging costs, both prompt and long haul, just as
a purchaser’s tendency to change.Summing
Up and Conclusion
India is the most alluring FMCG market on the planet. FMCG market developed in India throughout the
years yet it is profoundly fragmented. There are on 12-15 million outlets in the nation making it a US$ 327
billion market. In recent years FMCG market saw a development of 21.4% from 2010 to 2014, which is
higher than Indian GDP development. Developing youth segment and working women populace, rising
livelihoods and rising buying power, higher brand consciousness, changing consumer inclination,
developing urbanization, Increase in number of upper working class and rising web entrance are the greatest
drivers in the development of FMCG industry of India. Also, quick land framework development, simple
admittance to credit, expanded productivity due to development in gracefully chain and developing
enthusiasm of financial specialists are additionally assisting FMCG sector with filling in India.
FMCG Industry in India not at all like other developing economy is still exceptionally customary in nature
and is to a great extent constrained by Cooperatives and Independent FMCG organizations. Road markets
assume a significant part in the FMCG business of India as the majority of the populace does their shopping
here. Prior to the progression and globalization in 1991, western clothing, foods and so on were not
accessible in the Indian market and the brand mindfulness and review among the neighborhood populace
was insignificant however after 1991 the mindfulness has consistently expanded. This has permitted
worldwide brands to prosper. Aside from typical physical stores web based business is the following huge
sector in India and is ready for a blast. India has all the fundamental conditions like moderate per capita
GDP, rising web associations, huge number of designing.
RESEARCH AIM
The aim of this research is to identify the total marketing activity and analysis the search potential place
for FMCG (NCR) ENTERPRISES.It aims to find out appropriate marketing activity procedure or policies
and also analysis the potential place , which are beneficial for the consumers and also organizationas like as
marketing of FMCG products.
Research objective:
Broad Objective
The broad objective of this study was to examine the pattern and practices followed in marketing of FMCG
products ,Specific objective:
The FMCG industry is a vital component of the global economy, contributing significantly to a country's
Gross Domestic Product (GDP) and job creation. As a primary driver of consumer spending, FMCG plays
an essential role in various aspects of the economy, such as the retail and distribution sectors, generating
demand for a range of products and services. Here are some of how the FMCG industry contributes to the
economy:
The FMCG sector is a primary source of employment, providing millions of jobs across the supply chain,
including manufacturing, distribution, retail, and marketing. As a labor-intensive sector. This industry
contributes to economic growth by creating direct and indirect employment opportunities, helping to reduce
unemployment rates and boost overall productivity.
FMCG products' play a crucial role in the growth of the retail and distribution sectors, generating a steady
demand for various products. The high volume and quick turnover encourage retailers and distributors to
invest in infrastructure, technology, and workforce development, further supporting economic growth.
The FMCG sector generates significant government tax revenues through sales, value-added, and corporate
taxes. These revenues are essential for funding public services, infrastructure projects, and social programs,
contributing to economic development and stability.
The FMCG industry has strong linkages with various ancillary sectors such as packaging, advertising,
logistics, and transportation. The growth and success of these industries are often dependent on the
performance of the FMCG sector, creating a multiplier effect on the economy.
The competitive nature of the FMCG industry pushes companies to innovate continuously and adopt new
technologies to maintain their market share. This drive for innovation and efficiency leads to the
development and adoption of advanced technologies and processes, which can have a positive spill over
effect on other sectors of the economy.
• Food and beverages: This segment includes packaged foods, snacks, dairy products, carbonated and
non-carbonated beverages, and alcoholic drinks.
• Personal care and toiletries: This segment comprises cosmetics, soaps, shampoos, skincare items,
and oral care products.
• Household and cleaning items: This segment covers cleaning supplies, laundry detergents,
insecticides, and other essential household items.
Distribution Channels
Efficient distribution channels are critical to the success of FMCG companies. The most common
distribution channels include:
These companies heavily invest in marketing and advertising to boost brand awareness and drive sales. Key
marketing strategies include:
• Product packaging and design
• In-store promotions and displays
• Digital and social media marketing
• Influencer partnerships and endorsements Sponsorships and event marketing
Consumer Packaged Goods (CPG), also known as Fast-Moving Consumer Goods (FMCG full
form), are highly demanded, readily available, and reasonably priced items
Introduction to FMCG meaning FMCG products are referred to as "Fast-Moving" because customers
frequently use them, which makes them quickly disappear from the store or supermarket shelves.
Fast-Moving Consumer Goods (FMCG) are in high demand because they typically have a low price and
high usability. They use toothpaste, prepared meals, soap, cookies, notepads, and chocolate.
Typically, these items are piled high on the shelves of supermarkets like D-Mart. However, low prices, high
demand, and limited durability are some FMCG characteristics that help them move swiftly off the racks.
FMCG products are typically divided into various types depending on the sector they are sold in. These
consist of the following:
• Personal Care
1. Food & Beverages :Due to their short shelf lives and high turnover rates, food and beverage
products typically fall under the FMCG category. Listed below are various examples of
food and beverage products that are usually categorized as FMCGs-
●Personal Care
Shampoo and Toothpaste are examples of personal care items that fall under the FMCG category because
consumers frequently use them, often purchase them at low prices, and they are not long-lasting. Examples
of these are lotions, Hair Dye, Lipsticks, Cosmetics, Deodorants, Bath Soap, and other dental care items.
HealthCare Goods
Healthcare products are included in the FMCG category because they are frequently in high demand, poorly
made, and widely dispersed. These consist of items like Syringes, Bandages, Plasters, etc.
Household goods also fall under this category since they are frequently standardized, low-durability
products widely distributed and sold at typically low unit prices. They include Dusters, Toilet Paper, Bleach,
Cleaning Supplies, and Kitchen Towels.
One of the main drivers of the Indian economy is the Fast-Moving Consumer Goods Sector. The household
and personal care segment, which makes up half of the FMCG sector's market share, is the largest in the
economy and ranks fourth overall.
FMCG's primary growth drivers are income growth, lifestyle changes, increased awareness, and easier
access.
Additionally, the trend toward sustainable products impacts how consumers shop. Although the urban sector
made up most of the contribution, semi-urban and rural segments had experienced significant growth over
the previous ten years.Market Share of the FMCG Sector
• From US$ 110 billion in 2020, the FMCG market in India is projected to grow at a CAGR of
14.9% to US$ 220 billion by the next couple of years.
• The packaged food market in India is anticipated to grow twofold to US$ 70 billion in the next few
years.
• Urban and Rural Areas are becoming more connected to the internet, increasing the requirement for
FMCG India, primarily through e-commerce sites.
• There is potential for growth due to rising disposable income in rural India and low levels of market
penetration.
• It is anticipated that the e-commerce sector will account for 11% of all FMCG sales.
• Up to 100% of foreign equity in single-brand retail and 51% in multi-brand retail investments have
been approved.
• With an investment of US$ 1.42 billion, the union government's production-linked incentive (PLI)
scheme offers businesses a significant chance to increase exports.
The FMCG industry in India is the largest combination of diverse product categories, such as home care,
health care, personal care & cosmetics, food & beverages, and others. The segment of personal care is
expected to experience significant growth due to the rise in disposable income of consumers, which will
allow them to spend a substantial amount on luxury personal care products.
Changes in lifestyle drive the development of the FMCG market in India significantly. In addition, the
growth of the global population, the rise in consumer awareness of FMCG products, the frequent
introduction of new products, and the effective advertising of FMCG brands all contribute to the expansion
of the global FMCG market.
The rise in popularity of online purchasing, the development of new brands and products, and the expansion
of FMCG networks in rural areas of developing nations are expected to create new opportunities for market
participants in the future.
and packaged commodities, the market grew by double digits and reached 10.6%.Multiple industries,
including tobacco, food and beverage, domestic, and personal care, provide support for the FMCG sector in
India.The Importance of Technology: The FMCG industry places a strong emphasis on velocity, and
technology can provide the consumer companies in India with access to this agility. As a result, the FMCG
industry is preparing to leverage technology to improve operational efficiency, identify new opportunities,
and manage complex supply chain requirements. The FMCG industry relies extensively on market research
in order to identify consumer behaviour and field sales experts. Utilizing business intelligence, the cloud,
and sophisticated field service management software, enterprises can enhance the efficacy of their sales
operations. Additional Directions: The rural market in India is expected to increase by over $220 billion
over the next few years. This is because rural India’s consumption has increased, as increasing incomes have
raised the aspirations of the average person. Moreover, the increasing proportion of young people in India’s
population is a significant factor that will increase demand for FMCG products. The FMCG industry
remains a vital and dynamic part of the global consumer market. By remaining accustomed to shifting
consumer trends, addressing industry challenges, and capitalizing on emergent growth and innovation
opportunities, consumer companies in India can position themselves for success in a dynamic and
competitive environment. By prioritizing consumer needs, sustainability, and technological advances, the
FMCG industry can continue to thrive and have a significant impact on the lives of consumers around the
globe. Follow Team Lease for more such insights.
In a recent report, the Indian FMCG sector is currently estimated to be the 4 th largest sector in the country,
with household and personal care products accounting for about 50% of the total FMCG sales. In fact,
several industry reports state that the FMCG sector will thrive at a CAGR of 27.86%, and the overall
segment is estimated to reach a higher price proposition, with the premium segment marking a growth of
6.3% as compared to that the 1.1 % of the mass market.
As of FY 2020, the FMCG sector in India has witnessed significant growth in both rural and urban
consumption. The urban segment accounted for about 55% of the total revenue generated by the FMCG
sector, whereas with a steady increase in demand for quality goods and services, India’s rural segment has
contributed about 45% of the total annual revenue of the sector.
Indian FMCG sector has, therefore, emerged as a fertile hotspot for foreign investments, which promises to
offer sustainable growth and derive a steady profit. In addition to growing consumer
In order to promote the current trends in FMCG industry in India in the country, Indian Government has
undertaken some major initiatives that open up avenues for foreign organizations and facilitates lucrative
investment options. Such companies should, however, take the help of to enjoy solid growth in the Indian
FMCG sector.
• Indian Government has approved 100% foreign direct investments in the cash and carry and single
brand retail segment and about 51% in the multi-brand retail segment. In fact, India has witnessed a
steady and healthy FDI flow of 16.8 billion USD as of March 2020.
• Indian Government has also implemented the Goods and Service Tax (GST) which proved
immensely beneficial for the FMCG sector as many personal care products, like soap, toothpaste etc.
and come under the tax bracket of 18% against the previous rate of 23%. Furthermore, GST on food
products and hygiene products is also substantially reduced to 0-5% and 12-18%, respectively.
• Also, the Production Linked Incentive scheme (PLI) proposed by Union Cabinet in November 2020
Foreign firms looking for business expansion in India in the FMCG sector, therefore, need to adequately
capture the rural consumer needs with a thorough market analysis and research. One must also be aware of
all the current trends in the FMCG industry in India
• FMCG trend in 2021 India #3: Growth in Food & Beverage and Health & Wellness Categories
The food and beverage segment is one of the largest contributors to the FMCG sector in India and
accounts for almost 30% of the total household spending in the country. A rise in average income
level, increase in the disposable income of middle-income groups, increasing urbanization, and
change in consumer preferences for hygienic products have driven the growth of this sector. While
the per-capita food consumption has been emerging in the rural sector, the urban market has
witnessed increased demands for instant meals category; Ready to Cook (RTC), Ready to Eat (RTE)
are shaping current consumer preferences as well. Further, the changed consumer behavior towards
hygiene and health post the COVID crisis has also increased the demands for sanitizers, hand wash,
disinfectants, wipes, and home cleaning products, thereby setting a new trend in the FMCG sector.
Tecnova’s India-specific consumer and retail consulting approach helps to understand the recent market
trends of the FMCG sector and formulate a strategic market entry plan that can achieve long term success.
Starting from customized market study, retail roll-out support, consumer insights, dealer and distributor
research to assisting companies in forming joint ventures, Tecnova helps leverage the opportunities in the
growing market to achieve target business ends seamlessly.
FMCG sector is one of the most rapidly developing domains in India, providing optimistic opportunities for
foreign business expansion in India. Supported by the boost from governmental policies and increased
demand in the rural sector and professional business consulting companies in India, new firms can certainly
enjoy promising and sustained growth. However, it is imperative for all market players to realize the
constantly changing consumer behavior in the face of current trends in the FMCG industry in India and
revisit the mark Competitive Landscape
Indian FMCG space is majorly dominated by unorganised players. However, under the organised market
there are various players dominating in different segments of the Industry. HUL is a major player in the
organised market manufacturing various products related to food & beverages and household & personal
care witnessed a revenue of INR 459.9 billion in 2020-21. Followed by Patanjali, an Indian company that
positioned themselves as a manufacturer of natural & ayurvedic products made a revenue of INR 300 billion
in 2020-21. The revenue of Nestle India, one of the largest manufacturers of food products stood at INR
132.9 billion in 2020-21. Some other notable players include; Britannia Industries, ITC, Godrej
• Indian Government has allowed 100% FDI in single-brand retail and 51% in multi-brand retail.
• To boost India’s manufacturing capabilities, government identified FMCG sector under PLI
(Production Linked Incentive) scheme.
• The Government of India has introduced a new consumer protection bill to ensure accessible, simple,
quick and timely delivery of justice to customers.
• Goods and Service Tax (GST) introduced by the government has reduced the tax rates for some oral
& personal hygiene products from 23%-24% to 18%.
Rural Consumption
India’s 65% of the population lives in the rural areas. Over the years, FMCG consumption in these areas
have increased due to the increasing income levels and demand for branded products. According to
estimates, rural households contribute around 36%-37% of the total FMCG sales in the country.
Branded Products
The rising wages and changes in lifestyle of consumers has accelerated the trend towards premiumization in
the country. Consumers are well-informed about the products and willing to pay more to buy branded items
that suit their lifestyle and social status.
Young Population
India has an astonishing youth population when compared to other developing countries. The majority of the
workforce in India comprises this young population and this group of people will be a major growth driver
especially for the packaged foods category as they barely get time to cook.
E-commerce has completely revolutionized the way consumers buy goods. FMCG companies utilise
Ecommerce platforms as a way to test their new product innovation and new concept to reach a larger
audience. Since e-commerce provides the convenience of ordering products using a mobile device or a
computer consumers’ preference towards online shopping is on the rise.
Regional Players
Regional players play a major role in the FMCG space in India. These companies cater to a specific region
of the country. Since they have a well connected supply chain these companies compete directly with other
MNCs and well known players.
Supply Chain
FMCG goods usually have a low unit cost with larger volume and thus the industry in India has numerous
retailers between the company and the end consumer. A small disruption in the supply chain can cause huge
delays of products reaching the consumers.
Lack of Infrastructure
Lack of transport and storage facilities has been one of the major challenges for the FMCG industry in India.
Food items especially have a shorter shelf life and thus need to be preserved in the cold storage facility and
require a quick delivery system to avoid wastages.
The Covid 19 pandemic in 2019 has caused massive damage to the world economy. Businesses across India
suspended their operation due to the country wide lockdown to control the virus spread. Though grocery
retailers, who account for 60% of the total store-based retail saw an overwhelming demand during the initial
period of lockdown, they struggled to refill the stocks due to supply chain disruptions. The pandemic created
a surge in demand for personal hygiene products such as hand sanitizers, soaps, handwash, wipes, masks,
toilet cleaners, disinfectants and the demand is expected to increase in the future. Companies offering food
staples and convenience foods also saw a huge increase in sales during the pandemic. Contrastingly FMCG
companies operating in non-essential categories such as footwear, cosmetics, apparels have seen a drastic
decrease in sales and consumer durables category has seen a sales drop of 30% in 2020 when compared to
the previous year.
The FMCG Industry in India saw tremendous growth in the recent decade with the rising disposable income
and economic growth. However, the coronavirus has caused a liquidity crunch for most of the consumer
goods companies in India. A paradigm shift in consumer’s buying behaviour can also be noticed during the
pandemic which is likely to continue post-pandemic. Most people choose to buy things online in order to
avoid in-store visits. With the second wave of the virus hindering economic growth of India, FMCG
companies are using automation and analytics to hasten the manufacturing process and move stocks from
warehouse to customers’ point of purchase. Industry leaders are expecting rural India to be the future
revenue driver backed up by support from the government, reverse migration and low unemployment rate.
Though, FMCG industry saw signs of recovery during the 3rd quarter of 2020, the ongoing second wave of
the virus may slow down the recovery and we estimate that the industry may fully bounce back by the end
of 2021.
From the advent of e-commerce platforms to the rise of digital marketing, the industry has seamlessly
integrated innovation into its fabric. As per NielsenIQ, the positive momentum of the FM CG industry
reached newer heights, with volume growth surging to an impressive 8.6% at an All-India level in the third
quarter of 2023. This upward trajectory was further complemented by a substantial +9% value growth,
driven by the sustained impetus in volume. During the same time, the food sector exhibited remarkable
growth, recording a +8.7% increase compared to the same period in 2022. These statistics highlight the
industry’s resilience and its ability to navigate challenges, affirming its position as a cornerstone of India’s
economic prowess.
The Indian consumer landscape has undergone a significant transformation, fuelled by relentless
consumercentric innovations. This transformation is one of the main factors of India’s phenomenal growth
in the FMCG industry. Factors such as escalating disposable income, urbanisation, focus on convenience
and a burgeoning commitment to healthy living have triggered an upsurge in demand for a diverse array of
FMCG products, with a pronounced inclination towards organic alternatives. Today, FMCG companies are
continuously reinventing themselves in response to this seismic shift in consumer behaviour. Their focus has
shifted towards gaining a profound understanding of consumer preferences, needs and lifestyles. This
nuanced understanding not only aligns with global trends but also strikes a resonant chord with consumers
who increasingly prioritise responsible choices in the products they choose to bring into their lives. The
escalating emphasis on convenience and consumer Health has ignited a surge of innovation within the
FMCG industry, specifically in the consumer food sector. The FMCG companies have remained finely
attuned to changing preferences and have rolled out a diverse array of innovative products. As consumer
demands continue to evolve, the industry is undergoing significant transformations, encompassing the rising
popularity of organic and natural alternatives and the introduction of convenient options like Ready-to-Cook
meal options. These innovations not only broaden the range of products offered but also enable FMCG
companies to reach a more diversified customer base. According to a report by Technavio, a global market
research firm, the ready-to-cook market in India is estimated to grow at a CAGR of 7.12% between 2022
and 2027. The growth of the market depends on several factors, including a growing preference for
convenience food products in the working population, new product launches and an evolving retail
landscape.
The strengthening of e-commerce and the significant rise of Quick-Commerce in India has propelled the
FMCG industry to new heights. Both platforms have become essential components of the FMCG
ecosystem. Marketing strategies increasingly include quick-commerce and e-commerce-specific approaches
such as product listing optimisation and digital advertising that target online customers. E-commerce
platforms’ seamless ease and vast product offers have been a big driver of FMCG growth. According to the
IBEF, the ease of internet buying, along with appealing discounts and incentives, has aided the FMCG
industry’s expansion.
Notably, e-commerce now accounts for 17% of the total FMCG consumption among evolved consumers
who are affluent and make an average spending of about Rs. 5,620 (U.S.$ 68). The market has grown
exponentially over the past five years due to the surge in internet and smartphone users and an increase in
disposable income.
On the other hand, the Quick Commerce sector in India is anticipated to yield a revenue of US$3,349.00
million in the year 2024. Projections indicate that the market is poised to display a CAGR of 27.42% for the
period 2024-2028, ultimately resulting in an estimated market volume of U.S. $ 8,828.00 million by 2028.
By 2028, it is anticipated that the number of users in the Quick Commerce market in India will reach 56.4
million users.
CHAPTER =02
• FMCG (Fast-Moving Consumer Goods) products typically have several objectives, including
• Market Penetration: Increasing market share by attracting new customers or increasing consumption
among existing ones.
• Brand Loyalty: Building and maintaining customer loyalty through consistent quality, branding, and
customer satisfaction.
• Product Innovation: Constantly introducing new products or improving existing ones to meet
changing consumer preferences and stay ahead of competitors.
• Distribution Efficiency: Ensuring products are available in a wide range of retail outlets,
conveniently accessible to consumers.
• Cost Efficiency: Maximizing operational efficiency to keep production costs low and maintain
competitive pricing.
• Promotion and Marketing: Creating effective advertising and promotional campaigns to raise
awareness and stimulate demand for products.
Methodology
Methodology is the process, technique, or method of observation, survey and analysis. In order to collect the
topic oriented essential information and data following potential sources need to use. In order to achieve the
data requirement and collect the above necessaryinformation following sources has been used:
Primary sources:
Competitor Interview
Secondary Sources
Internet.
This report has covered marketing of FAST MOVING CONSUMERGOODS. It also includes a brief profile
of the company. The general objective of this report is to acquire practical experience and view the perfect
application of theoretical knowledge in the real life. I was cordially privileged by the manager of NCR
ENTERPRISES to do my internship at his company. The duration of my internship is 90 HOURS. I started
Every study or project was not out of limitations. I have faced some limitation of preparing this report. But it
was a great opportunity as an intern for me to know the marketing activity Of FMCG PRODUCTS.Some
limitations are as follow.
Shortage of time one of the major limitation. I had only three months to complete this research which is
not sufficient to complete the whole task.
Sometimes the relative person did not feeling comfortable to share their policy.
Various sources of information limitation the report doesn't contain many confidential
Some essential data could not be gathering because of confidential matters of the organization.
Ethical Considerations
Most important part is ethical consideration for the research it can be specified. Dissertations may be even
doomed to failure if ethical part is missing. I can assure that I am using correct information in my report. I
assure that I will not leak any data which will fall danger to my company. I also committed that whatever
data I have collected for report from organization. I will use it only for the purpose of my report. I will try
my best to maintain the privacy of my company
CHAPTER: 03
DISCUSSION
ANALYSIS
FMCG marketing strategies aim to maximize product visibility, brand awareness, and sales and involve a
combination of offline and online channels and tactics, including brand websites, marketplaces, social
media, influencer marketing, pricing and promotions, paid advertising, loyalty programs, channel programs,
in-store promotions, signage, display, and print and trade shows and events.
Due to the fast-moving nature of FMCG product sales, marketing strategies must focus on understanding
consumer purchasing habits, constantly changing preferences, and evolving trends. Having a data-driven
marketing strategy that captures shopper data through in-store purchases and online shopping means
marketers can understand consumer shopping habits and preferences on a deeper level, allowing them to
create more contextual, personalized experiences.
Brand awareness is key to FMCG marketing. If consumers don’t know your products exist, then they won’t
purchase them. What sets your brand apart from the competition? Why should consumers choose your
products?
Define your brand’s identity, including values, mission, personality, and unique selling propositions, and
speak to these in your marketing communications. Branding also involves packaging, as well as the look
and feel of your brand - all important aspects that attract a consumer's attention.
Positioning is another key aspect of defining a brand. As it is cheapest product, The highest quality ,A
commitment to sustainability and social responsibility are other ways to set a brand apart.
The Fast-Moving Consumer Goods industry (FMCG) is how Europe, the Middle East, and Asia often refer
to what the US calls the consumer-packaged goods industry (CPG). The Fast-Moving Consumer Goods
industry refers to products consumed or replaced regularly with examples including perishables such as food
and beverages, cleaning supplies, over-the-counter medicines, makeup, personal care products, and pet
foods.
• The European food & drink industry was approximately US$264 billion in 2022 with projected
growth rate of ~12%, putting it at US$296B in 2023
• The home cleaning market is estimated to reach US$45.72 billion in 2023 The pet food industry
Inflation is driving significant changes in consumer shopping. Forty percent of the consumers will shop
around, another 20% will buy in bulk for better prices, and 54% will search for or wait for promotions
before purchasing a product. Price sensitivity is real, and brands must find ways to encourage sales when
they can't decrease prices overall.
All consumers love a deal, but for FMCG consumers, you can sweeten the 8deal by offering rewards for
purchasing. Cashback or Rebate Promotions, Money-back Guarantees, Coupons, multi-item discounts,
BOGO, as well as contests and sweepstakes, play an essential role in overcoming this trend. For example, if
a consumer purchases two products from a brand, they can upload their receipt to receive a special gift or be
entered to win a prize.
Two things to point out here. The gifts and prizes must be something consumers would want, and the
process to receive them should be as simple and seamless as possible. The more effort required by the
consumer, the less willing they are to participate, resulting in not purchasing the product. The benefit for the
FMCG brand is that they can get valuable consumer insights through receipt data.
Sweepstakes are similar to contests and promotions, but they are a game of chance, as opposed to a game of
skill or an immediate reward. FMCG brands can encourage consumers to buy their products by giving them
a chance to win prizes. Prizes that are limited editions, exclusive events, or rewards improve the chances of
a consumer entering.
Learn more about sales promotion strategies for price-sensitive consumers here.
Fast-moving consumer goods are traditionally sold in supermarkets and convenience stores, which means
you need to have a solid in-store marketing and merchandising strategy. Where your product is placed on
the shelf, signage, and displays are tactics to consider and negotiate with stores.
You can also tie online contests and promotions to in-store displays and coupons, bridging online and offline
marketing.
Shopper Marketing
Shopper marketing is a critical component of an FMCG marketing strategy focused on improving the
shopping experience at the point of purchase - in-store or online.
In-store, it can include tactics such as demos and tastings (think of those pop-up stations at your local
Costco) combined with coupons to purchase. It can include BOGO (buy one, get one) offers and multi-buy
discounts
(buy one at €4.99, but 2 or more at €3.99 each). It can also include the environment's ambiance (90% of
global consumers are likelier to revisit stores that leverage music, visuals, and scent).
Online shopper marketing tactics include offers at the point of adding an item to a shopping cart. For
example, they could offer a coupon or recommend 'subscribe and save' for a discounted price. You can also
use the BOGO and multi-buy offers online and recommended products that go along with the product the
consumer is adding to their cart. Other tactics involve social media, including sponsored ads or influencer
posts of products with links to purchase.
Shopper marketers spend a lot of time studying shoppers' behavior when they are in shopping mode. In-store
that means watching how shoppers move through isles and what gets their attention. It also means analysing
receipts to see what products shoppers buy while in-store, , or what products they purchase together. Online,
it can include website traffic patterns, abandoned shopping carts, email offers, and more.
The purpose of shopper marketing is to find ways to raise the awareness of a product as the consumer shops,
offering incentives along the way to move them towards actually buying the product. In addition, shopper
marketers build retailer relationships and provide support to retailers who in turn provide incremental shelf
and display space/ visibility.
Loyalty Programs
Loyalty is challenging for FMCG brands because, traditionally, it's been about brand recognition and
product quality. Although these things are still important, what drives consumer loyalty now is more about
the experience and tailored, personalized messaging. Recent studies show that 64% of consumers prefer to
buy from brands that see them as individuals, and 33% would pay for this level of personalization.
Loyalty programs are a great way to engage with consumers and retain their loyalty. These programs can
capture a great of consumer shopping data and preferences, enabling a brand to tailor product offers,
content, and digital shopping experiences. In return, brands give consumers access to exclusive events and
offers and the ability to earn points for even more rewards.
You can still encourage consumer loyalty when you don't have a loyalty program. Take the time to
understand what consumers value most and create campaigns and programs that speak to those values.
Consumers who are invested in sustainability want to hear about your sustainability commitment and
practices. Many consumers are also committed to social good, so enabling them to donate to charities and
having the brand match or double those donations demonstrates the brand's values as well.
Another way to build loyalty is to partner with others. Delivery services and retail media network
partnerships provide a wealth of consumer data that enables brands to understand their target consumers
better and build products and marketing campaigns that are more personalized and targeted.
It's important to continuously track trends in the industry, including consumer buying patterns and
sentiment.
Here are some trends to keep an eye on.
Private labels in Europe have moved beyond representing mere alternatives to national brands and they have
adopted sophisticated strategies to position them as serious competitors within the FMCG market.
According to Statists, private labels have a 36% share of the market in Europe, with over 50% share in
Switzerland and over 40% in the UK, Spain, and the Netherlands. In the confectionery industry, 2023 saw
Belgian supermarket chain Colruyt challenge Mondale, the company behind Oreo and Milk chocolates, over
its price increases.
German supermarkets Rewe and Edeka did the same with Mars, the maker of Snickers and Twix.
Reaching customers through traditional marketing channels can be challenging, especially if the brand
primarily deals with physical retail stores. Promoting products through retail media networks gives a brand a
broader audience base and access to consumer shopping data to help them improve their marketing and
products. In addition, the Retail Media Networks, other media networks that FMCG brands can tap into are
being developed, including the Payments Media Network - a solution that allows brands to reach banks’
audiences with targeted, SKU-level offers and promotions on everyday spend items
Consumers shop for FMCG products online, via apps, in-store across multiple touchpoints. Brands that can
provide a seamless shopping experience across all channels and touchpoints, including in-store, mobile,
online, and social are finding success. Omnichannel marketing enables consumers to shop and purchase
products across multiple channels, including the website, retail media network, social media, mobile app,
and in-store. Consumers that shop using multiple channels have become the norm, so brands need to build
marketing strategies that ensure they are getting consistent information and offers across channels, along
with the ability to purchase the product easily, at whatever point in the journey they want.
The demand for sustainable products is growing across the world. This is especially true in Europe and the
Middle East. Compostable, reusable, and recyclable packaging demonstrates a commitment to sustainable
practices, along with the use of vegan ingredients or cruelty-free sourcing of ingredients for food and non-
food products (e.g. cosmetics and personal care). For CPG food industry, 60% of Europeans have expressed
a commitment to healthier eating. But it’s important to not market your products and practices as sustainable
if they aren’t. The key is to be truthful, open and transparent about how your products are made, and how
your brand is working to reduce its carbon impact or implement more sustainable practices.
Artificial intelligence (AI) is starting to play a bigger role in FMCG. Voice search, chatbots, virtual
assistants, and recommendation engines are helping consumers find and order the right products quickly and
easily. Ensuring your products can be found online easily, through online retailers, your own ecommerce
site, or through social media, is essential.
Influencer marketin
g is extremely popula
r, what about leveraging your customers to promote your brand?
butthey promote a brand because they love it, and 82% of Gen Zers pu
Customer influencers aren't paid;
trust in brandsuse real in their marketing. Finding ways
encourage
to and promote this kind of
that-generated customers
use content is important to help raise brand awareness and encourage
r sales.
FMCG Marketing Examples
There are a variety of marketing strategies FMCG marketers can use, including those involving ecomm
social media, pricing, and promotions. Let’s look at some examples (in this case we'll share examples
promotions, loyalty and Augmented Realitthat help us understand what’s
y angles) . working
But AI isn’t just to help consumers find products. It’s also for brands to better understand consumers.
Predictive analytics can surface insights that help marketers improve marketing strategies and create
personalized, targeted experiences at the right time and in the right place.
The 7’s Of
P Marketing
The classic marketing mix, as established by Professor of Marketing at Harvard University, Prof. J
in 1948 and expanded upon by Jerome McCarthy, incorporates Product, Price, Placement, and Pr
a theory of marketing that has been important to the industry for more than 70 years. Since then
has
been expanded into the 7 P'sting.
of Which are: Product, Price, Promotion, Place, People, Packaging,
marke
Process.
Product
Price
Promotion
Place
People
Physical evidence
Processe
s
SHANTIDHAMA COLLEGE BANGALORE-560091 39
“A STUDY ON MARKETING STRATEGIES OF FMCG PRODUCTS”.
Of course, like any guide, there’s a history behind it. A speech by marketing specialist Neil Borden in the
1950s was the first time the term “marketing mix” was used. Later, marketing professor E. Jerome
McCarthy refined Borden’s ideas, creating the 4 Ps of marketing (price, product, place, and promotion). He
theorized that by using price, product, place, and promotion together, a business could identify its core
customer and how to reach them best. He wrote about this in his 1960 book, Basic Marketing: A Managerial
Approach.
Later, in 1981, as the art of marketing grew even more and customer service became even more important,
Bernard H. Booms and Mary J. Bitner added three more Ps: people, physical evidence, and processes. Thus,
the 7 Ps of marketing were born.
Today, companies use the 7 Ps of marketing to define and evaluate their marketing plan to reach their goals.
To effectively use the 7 Ps, you should determine how each P affects the others to create a comprehensive
approach.
• Email Marketing
• Social Media Marketing
• Small Biz Marketing
• Seasonal Marketing
• Webinars
Marketing your products or services used to be simpler in many ways — you sold by word of mouth, from
door to door, or through a catalog. But because of that, reach was limited. Today, while there are m ore
businesses to compete with and more noise for consumers to sort through, there are also many more ways to
reach customers and secure a sale.
Even back in the early 1950s, marketing specialists knew that growth would lead to a need for more refined
strategies and a guide of some sort to help businesses ensure they were able to go beyond just their idea and
begin making iactual sales. Luckily for those responsible for marketing today, that knowledge became
something that is now widely used for planning, evaluating, and revising the activities of businesses around
the world.
Many companies use seven principles, called the 7 Ps of marketing, and a mix of different marketing tactics
to help promote their products, services, and businesses — and you can too.
The 7 Ps along with a marketing mix help strategically place you in front of your customers and allow for a
more targeted approach. Your marketing strategy is your signature, unique to you and recognizable by your
customers, and much like every person has similar traits but looks different, how you use the 7 Ps will look
different from other companies.
Below, you’ll learn why you should approach your business with a marketing mix mindset and how you can
use the 7 Ps to guide you as you market your business.
Marketing mix
Marketing mix refers to everything a business does to reach the goal of connecting their product or service
to the people who need it, from first exposure to completion of the sale and beyond. It is the mix of
strategies you draw on to support your sales cycle, and it will vary from company to company.
A good marketing mix will constantly evolve, changing as the needs of the consumer change. A good
marketing mix can:
The 7 Ps of
part of your
marketing mix
tool kit.
forethought to
sort of guide
Product
• Price
• Promotion
• Place
• People
• Physical evidence
• Processes
Of course, like any guide, there’s a history behind it. A speech by marketing specialist Neil Borden in the
1950s was the first time the term “marketing mix” was used. Later, marketing professor E. Jerome
McCarthy refined Borden’s ideas, creating the 4 Ps of marketing (price, product, place, and promotion). He
theorized that by using price, product, place, and promotion together, a business could identify its core
customer and how to reach them best. He wrote about this in his 1960 book, Basic Marketing: A Managerial
Approach.
Later, in 1981, as the art of marketing grew even more and customer service became even more important,
Bernard H. Booms and Mary J. Bitner added three more Ps: people, physical evidence, and processes. Thus,
the 7 Ps of marketing were born.
Today, companies use the 7 Ps of marketing to define and evaluate their marketing plan to reach their goals.
To effectively use the 7 Ps, you should determine how each P affects the others to create a comprehensive
approach.
Product
Your product (or service) is the core of your business. It’s what the customer ultimately cares about the most,
so you should prioritize making it consumer-ready and as good as it can be. Your product is more than just
the actual item, though. It’s the design, quality, features, options, packaging, and more. It’s what ignites your
customer’s five senses and creates a desire to purchase in the first place.
A good product or service could almost sell itself. When you create a quality product, some consumers will
see that value up front, while others will learn it for themselves after trying it.
Ultimately, you know your customer’s needs and should use that knowledge to help guide how you
showcase your product’s value. Content marketing can help you do this: when you create informative
content that helps build trust in you and your brand, consumers are more likely to buy from you.
To evaluate your product, you should think like an outsider. Ask yourself if it’s the right offering for the
market today; is it what your customers need right now? You could also evaluate if it is comparable to a
competitor, and if not, how you could make it better.
Price
How you determine your pricing depends on several factors, such as how it is priced in the market, how
crowded the market is, if you have a unique selling position or special features you could draw attention to,
if you’ll offer discounts or promotions, and future plans for coordinating products or services that could
affect the price.
Once you set your price, you’ll need to reevaluate it periodically to see if it’s still appropriate for the current
market. Prices can go up or down accordingly. You may need to change your pricing, terms of your sale,
include free items, or bundle things together to give new life to a product.
Promotion
Promotion is how your product will get noticed. It includes everything you do to tell your customer about
your business, from TV to radio to print, content marketing, discounts and sales, social media, email
marketing, ads, search engine optimization (SEO), public relations, and more. Ideally, these promotion
methods will easily flow together or build upon each other to help your target audience notice you.
For example, a customer sees an ad > they use their phone to read reviews and get pricing > they che ck out
your website for any sales and to learn more > they make a purchase > that triggers your email marketing
automation to send them a thank you and coupon for next time.
To utilize this marketing strategy best, you should make sure to identify all areas where you can impact the
customer. Personalize your marketing at this time, using segmentation and automation tools, and test
different approaches to see what customers respond to best.
Place
You’ll also need to know where you are going to sell your product or service. It is more than just your
physical location. Your initial research should have helped with this, but it can always be modified, such as
changing or adding a social platform to your marketing.
Ways (places) that businesses sell include trade shows, retail shops, websites, telemarketing, catalogs, direct
selling, and more. Things that factor into this decision include whether your product or service needs to be
seen in person or tested out, or whether an ecommerce site would work better. You might also consider how
much customer interaction you want to have.
People
Anyone involved in your product or service or who comes into contact with your customer falls into the
“people” category. This includes your employees, business partners, operations personnel, and anyone else
your customer can associate with your company.
Businesses often forget this important aspect of marketing, but these people are the face of your company
and reflect your product or service. You want to ensure they are well trained, understand the brand, and
believe in your goals. When you hire someone, you also want to ensure they are professional and can get the
job done right.
Jim Collins, author of Good to Great, explained it as the need to first “get the right people on the bus” and
then
“get them in the right seats.”
Physical evidence
With every purchase comes some proof. This is your physical evidence. It’s the completed haircut, a digital
clipart PDF, the newest shade of lipstick, or the information learned durin Email g a webinar.
It’s also the thank you notes, receipts, confirmation emails, and other touches that go along with a sale that
have your company’s information on them. These things make an impression as well, and all components
should work together to benefit your brand’s look and feel.
With this P, you’ll want to make sure that all aspects of your product or service from beginning to end offer a
consistent, enjoyable experience that keeps you in the customer’s mind.
Processes
The “process” aspect involves how your business runs. It’s how the service is delivered or how the product
is packaged, and is part of what the customer pays for. Look at your logistics, shipment and delivery, supply
chain, staff, checkout process, wait times, etc. The signature blue boxes from Tiffany’s or the separate
Twitter account that Nike holds specifically for support (@NikeSupport) are a few examples.
The more seamless your processes are (which often relies on the “people” aspect of the 7 Ps), the happier
your customer will be because no time will have been wasted while serving them. And keep an eye on
complaints.
If customers complain, it’s time to look into that process and revaluate it.
Email marketing
Utilize email to engage and persuade customers effectively. It provides FMCG brands with a
marketing means
to personalize communication, address specific ... Automated email marketing . An automated email
marketing strategy is an effective way to start a consistent digital relationship with consumers. Creating an
Effective Email and SMS Marketing Strategy. It is a known fact that a vast majority of your consumer base
is
millennials. And 73% of millennials ...
Influencer marketing
Through influencer , FMCG brands can increase their awareness and reach. Influencer is
marketing marketing
also beneficial for FMCG brands to quickly build ... company asks them to produce content using the
brand's product or service, and drive conversation amongst their company products.
Increase your social media frequency: You need more than one post daily for customers to remember your
brand. Aim to put a minimum of ten messages daily into the digital world. Adjust your messages to fit each
social media platform and its user base.
Uniform your message across all digital marketing platforms: Ten wide-ranging messages will be less
impactful than creating a singular focus. Tie your messages together to reach a deeper layer of your
consumer’s mind.
• Social media marketing: Social media platforms, such as Facebook, Instagram, and TikTok, allow
FMCG brands to connect with customers and showcase their products in a more personal and
interactive way. Brands can use social media to share product information, run promotions, and
interact with customers through comments and direct messages.
• Content marketing: FMCG brands can use content marketing to provide valuable and informative
content to their target audience. Content marketing includes blog posts, videos, infographics, and
other content that educates and engages consumers. You can use tools such as Venngage to can help
you create & leverage amazing visuals.
By providing valuable content and creating engaging pages, FMCG brands can build trust and credibility
with their audience, drive sales, and increase their rankings in search engines. Additionally, taking the help
of tools like a free video editor can enhance the quality of video content, making it more appealing and
effective in capturing consumer interest.
Whether you’re a new company, you’re launching a new product, or you’ve decided to target a new
audience, increasing awareness of your brand or products is a good goal to guide your marketing plan.
Example: increase social media impressions among a new target audience by 30% by the end of the quarter.
This marketing objective is related to the competition analysis discussed at the bottom of this blog. By
taking a look at other existing brands in your industry, you can define your specific position in the market,
as well as project where you would like to be after your campaign.
Launching a new product presents a unique set of challenges to any marketing department. Informing the
public about a brand new product and generating excitement is no small feat. Between developing the
communication strategy, pricing, and positioning, this goal can have several different objectives. Some
possible ones could be defining your target audience
4. Introduce the Company to New Local or International Markets
Similar to launching a new product, a positioning and communication strategy is key when introducing the
brand to a new market. It’s also crucial to be knowledgeable about cultural and consumption differences.
You'll want to provide people with images that show off your new product, along with information on where
to find it, how to use it, what benefits it offers, etc. You may even want to create brief videos that explain all
this as this format ais increasingly popular and can be shared on social media.
5. Improve ROI
Return on investment, or ROI, is one of the most important marketing metrics there is since it measures
whether or not your investment is paying off.
It’s useless to aim to get a massive number of impressions if you don’t get people to convert. Therefore, a
good marketing plan objective would be to take into account the different stages of the conversion funnel
and ensure that as many users as possible become customers.
Attracting new customers to your brand is an important way of ensuring the relevancy and longevity of your
company. Attracting new customers should involve different processes than retaining your current ones. You
can use various methods to do this. For instance, you can attract new customers by asking for referrals and
reviews, partnering or collaborating with other businesses (just be sure to find brands that complement
rather than compete with yours) or participate in events, both online and offline.
Increasing customer loyalty is another common marketing objective. It's important to remain invested in
your audience. In fact, some may argue it's more beneficial since it is always cheaper to keep a current
customer than to gain a new one. You can do this by creating loyalty programs, improving your customer
service, or creating an email marketing campaign to engage (or reengage) users.
9. Increase Sales
Finally, we’ve reached the most common and obvious marketing objective: increasing sales. There are many
different methods of doing this, but two popular actions are increasing conversion rates or increasing the
average amount per transaction (for example, cross selling).
CONCLUSION
In conclusion, FMCG products play a vital role in the consumer goods industry due to their fast turnover,
frequent purchase, and broad appeal. Their objectives revolve around market penetration, brand loyalty,
innovation, distribution efficiency, cost efficiency, promotion, customer satisfaction, and profit
maximization. FMCG companies constantly adapt to changing consumer demands, market trends, and
competitive landscapes to maintain relevance and drive growth in this dynamic sector.
Certainly! In addition to their significant role in the consumer goods industry, FMCG products often serve as
essential household items, contributing to daily living and convenience for consumers. Their widespread
availability, affordability, and diverse product range make them indispensable in both urban and rural
markets. Moreover, FMCG companies often invest heavily in research and development to create products
that cater to evolving consumer preferences, health trends, and sustainability concerns. Overall, FMCG
products are integral to modern life, shaping consumption patterns and driving economic growth globally.
1. Developing Marketing Strategies: This involves creating plans to promote FMCG products effectively.
It includes identifying target demographics, setting marketing objectives, and deciding on the best mix
of marketing channels and tactics to achieve those objectives.
2. Market Research: Conducting thorough research to understand consumer behavior, preferences, and
trends. This includes analyzing competitors, consumer surveys, focus groups, and studying market data
to identify opportunities and threats.
3. Promotional Campaigns: Designing and executing advertising and promotional activities to increase
product awareness and sales. This may involve creating ad campaigns for various media channels such
as TV, radio, print, and online platforms, as well as organizing events, contests, and giveaways.
4. Social Media and Digital Marketing: Leveraging social media platforms, websites, email marketing,
and other digital channels to engage with consumers, build brand loyalty, and drive sales. This includes
creating content, managing social media accounts, and analyzing metrics to optimize marketing efforts.
5. Sales Data Analysis: Examining sales data to identify patterns, trends, and insights that can inform
marketing decisions. This involves analyzing factors such as sales performance by region, customer
demographics, product performance, and promotional effectiveness.
6. Collaboration with Sales Teams: Working closely with sales teams to align marketing efforts with sales
objectives. This may include coordinating promotional activities, providing sales support materials, and
gathering feedback from sales teams to refine marketing strategies.
7. Optimizing Distribution Channels: Ensuring that FMCG products are available in the right places at
the right times. This involves working with distributors, retailers, and logistics teams to optimize
distribution networks, manage inventory levels, and ensure timely delivery to meet consumer demand.
8. Building Relationships: Cultivating strong relationships with retailers, distributors, and other
stakeholders in the supply chain. This involves regular communication, providing support and
assistance, and collaborating on joint marketing initiatives to drive mutual growth.
WORK EXPERIENCE
The learning experience of a student in marketing FMCG products can be both diverse and enriching. Here's
a breakdown:
2. Market Research Skills: Students learn how to conduct market research to gather insights into
consumer preferences, purchasing behavior, and market trends. They gain hands-on experience in
designing surveys, conducting interviews, and analyzing data to inform marketing strategies.
3. Marketing Strategy Development: Students develop skills in crafting marketing strategies tailored
to FMCG products. They learn to set clear objectives, identify target markets, and select appropriate
marketing channels and tactics to achieve desired outcomes.
5. Digital Marketing: With the increasing importance of digital channels, students learn about digital
marketing strategies specific to FMCG products. This includes social media marketing, content
creation, search engine optimization (SEO), email marketing, and e-commerce.
6. Analytical Skills: Students develop analytical skills to evaluate the effectiveness of marketing
campaigns and strategies. They learn to interpret sales data, track key performance indicators (KPIs),
and use metrics to measure ROI and optimize marketing efforts.
7. Teamwork and Collaboration: Marketing students often engage in group projects and collaborative
activities to simulate real-world marketing scenarios. They learn to work effectively in teams,
communicate ideas, and leverage each other's strengths to achieve common goals.
8. Industry Exposure: Many marketing programs offer opportunities for students to gain practical
experience through internships, co-op placements, or industry projects with FMCG companies. This
hands-on experience allows students to apply classroom knowledge in real-world settings and gain
valuable insights into the industry.
Overall, the learning experience in marketing FMCG products equips students with a blend of theoretical
knowledge, practical skills, and industry exposure essential for success in the dynamic and fast-paced world
of FMCG marketing.
1. Digital Transformation: Emphasizing the importance of leveraging digital tools and platforms for
marketing FMCG products. This includes using social media, e-commerce, and digital advertising to
reach a broader audience.
4. Omni-Channel Marketing: Ensuring a seamless customer experience across various channels, both
online and offline, to provide a cohesive brand experience and drive sales.
5. Influencer Marketing: Collaborating with influencers to promote FMCG products, leveraging their
reach and credibility to build brand trust and increase product visibility.
6. Data-Driven Decision Making: Utilizing big data and analytics to understand consumer
preferences, optimize marketing campaigns, and improve product offerings.
7. Experiential Marketing: Creating memorable experiences around the brand or product to engage
consumers emotionally and drive brand loyalty.
8. Agile Marketing: Implementing flexible and responsive marketing strategies that can quickly adapt
to market changes and consumer trends.
10. Cause-Related Marketing: Aligning the brand with social causes or charitable initiatives to build a
positive brand image and connect with consumers on a values-based level.
Solution:
Relevant information can be yielded to develop products, smooth trade practices, and facilitate productive
consumer communication. FMCG companies must remain adaptable and gladly embrace technological
upgrades to leverage their operations and improve their sales processes. Important concerns include:
Solution:
Several software solutions available in the market can support FMCG management enhance selling
scenarios in multiple ways, such as:
Solution:
A proper plan of retail execution needs to be implemented in the store that includes order replenishment,
trade promotions, shelf merchandising, store audits, and more. It is essential to drive sales to new heights
with proper retail execution.
4.Ageing
The FMCG sector depends on age-old brand loyalty. It is essential to determine the target audience to which
they cater. FMCG business is a traditional business consisting of a large number of consumers from senior
citizens to millennials. FMCG products have a specific set of customers and the products developed should
satisfy and stay relevant with a variety of age groups to enhance their brand. It is really a tough nut for the
FMCG industry.
Solution:
It is essential to define the middle ground with constantly evolving strategies, using recent technology,
automation in FMCG sales and services, and digitalizing with the best software for easy accessibility will
help to strike the balance in the market.
5.Social Media
With the advent of social media, information moves at a rapid speed. It is tough to grow in this market
without innovations. Communication is fast, customer gets information in just a google search. No place to
hide the products.
Solution:
It is essential to upgrade your products for the current need. CRM with social media integration enable you
to have 360 degree view of customers for the products. It is easy for smart brands with innovative methods
to reach globally with digitalization.
This weekly report provides an overview of the work done in the procurement and designing
processes at NCR ENTERPRISES over the past week. The report outlines the key activities,
progress made, challenges faced, and plans for the upcoming week.
4/4/2024 THURSDAY
Orientation and
5/4/2024 FRIDAY
Initial Tasks
6/4/2024 SATURDAY
Week Holiday
2/4/2024 TUESDAY
3/4/2024 WEDNESSDAY
4/4/2024 THURSDAY
Sales Process
5/4/2024 FRIDAY
Key Outlet
6/4/2024 SATURDAY Management
3rd
1/4/2024 MONDAY
Week Stock
3/4/2024 WEDNESSDAY
4/4/2024 THURSDAY
Product
5/4/2024 FRIDAY Marketing
6/4/2024 SATURDAY
BIBLOGRAPHY
BOOKS:
Links:
HubSpot Articles:
1. "9 Steps to Create a Sales Process for Your Business (With Examples)" -
2. "The Importance of Administration in an Organization"