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    FMCG Channels

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    sonal jain
    This document discusses fast moving consumer goods (FMCG) channels in India. It defines FMCG as low margin, high volume, non-durable consumer packaged goods like cold drinks, soap, and processed food. The Indian FMCG market is expected to reach $12.5 billion by 2015 and $20.6 billion by 2020, with urban markets accounting for 65% of total revenues. The document then describes three common distribution channels that FMCGs use to reach customers: direct from manufacturer, manufacturer to retailer to customer, and manufacturer to wholesaler to retailer to customer. It provides examples like Bata, Patanjali, and Nike for the first channel and Samsung, LG, and Sony for the second channel.

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    FMCG Channels

    Uploaded by

    sonal jain
    47 views14 pages
    This document discusses fast moving consumer goods (FMCG) channels in India. It defines FMCG as low margin, high volume, non-durable consumer packaged goods like cold drinks, soap, and processed food. The Indian FMCG market is expected to reach $12.5 billion by 2015 and $20.6 billion by 2020, with urban markets accounting for 65% of total revenues. The document then describes three common distribution channels that FMCGs use to reach customers: direct from manufacturer, manufacturer to retailer to customer, and manufacturer to wholesaler to retailer to customer. It provides examples like Bata, Patanjali, and Nike for the first channel and Samsung, LG, and Sony for the second channel.

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    This document discusses fast moving consumer goods (FMCG) channels in India. It defines FMCG as low margin, high volume, non-durable consumer packaged goods like cold drinks, soap, and processed food. The Indian FMCG market is expected to reach $12.5 billion by 2015 and $20.6 billion by 2020, with urban markets accounting for 65% of total revenues. The document then describes three common distribution channels that FMCGs use to reach customers: direct from manufacturer, manufacturer to retailer to customer, and manufacturer to wholesaler to retailer to customer. It provides examples like Bata, Patanjali, and Nike for the first channel and Samsung, LG, and Sony for the second channel.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    47 views14 pages

    FMCG Channels

    Uploaded by

    sonal jain
    This document discusses fast moving consumer goods (FMCG) channels in India. It defines FMCG as low margin, high volume, non-durable consumer packaged goods like cold drinks, soap, and processed food. The Indian FMCG market is expected to reach $12.5 billion by 2015 and $20.6 billion by 2020, with urban markets accounting for 65% of total revenues. The document then describes three common distribution channels that FMCGs use to reach customers: direct from manufacturer, manufacturer to retailer to customer, and manufacturer to wholesaler to retailer to customer. It provides examples like Bata, Patanjali, and Nike for the first channel and Samsung, LG, and Sony for the second channel.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    FMCG CHANNELS

    Submitted to:- Submitted by:-


    Dr. Deepti Dabas Hazarika Anisha Jain
    Aman
    Kiran
    Prashant
    Rohit
    Shalini
    WHAT IS FMCG?
     Fast Moving Consumer Goods.
     Also Known as CPG- Consumer Packaged Goods.

     Low Margin and High Volume.

     Examples – Cold Drinks, Soap, Processed Food


    etc.
     Major Companies – Nestle, ITC, HUL etc.
    DEFINITION OF FMCG

     Fast-moving consumer goods, commonly


    abbreviated FMCG, are non-durable goods that sell
    quickly. It is considered a unique business model that
    requires competitive advantages in areas such as
    manufacturing , branding, advertising and logistics.
    FMCG MARKET IN INDIA
     Market is expected to reach US$12.5 Billion
    in 2015 and US$20.6 Billion by 2020.
     Urban Markets account for 65% of Total
    Revenues.
     In terms of Products:-

    Food Products – 43% of overall market


    Personal Care – 22% of overall market
    Fabric Care – 12% of overall market
    DISTRIBUTION CHANNEL
     Path or Pipeline through which Goods and Services
    flow.
     It can be short or long.

     In long channels, price increases till the product


    reaches the consumers.
    TYPES OF DISTRIBUTION
    CHANNELS
    1. Manufacturer to Customer
    2. Manufacturer to Retailer to Customer
    3. Manufacturer to Wholesaler to Retailer to
    Customer
    MANUFACTURER TO
    CUSTOMER

     Direct Selling
     No Middleman is involved

     Simplest and Shortest Channel

     Fast and Economical

     Adopted by both Small Producers and Big


    Firms.
     Examples – Bata, Patanjali
    EXAMPLE

    Producer of Bata

    CUSTOMER
    Producer of Patanjali

    Producer of NIKE
    MANUFACTURER TO
    RETAILER TO CUSTOMER
     One Stage Distribution Channel
     One Middleman i.e., Retailer

     Producer sells to big retailers like departmental stores


    and chain stores who in turn sell to customer
     Retailers purchase in large quantities from the
    producer and perform certain marketing activities in
    order to sell the product to the ultimate consumers.
     This channel of distribution is very popular these days
    because of emergence of departmental stores, super
    markets and other big retail stores.
     Example – Samsung, LG, Sony, Whirlpool etc.,
    EXAMPLE
    MANUFACTURER TO
    WHOLESALER TO RETAILER
    TO CONSUMER
     Traditional Channel of Distribution.
     Two Middleman i.e. Wholesaler and Retailer

     Suitable for products with Widely Scattered


    Market.
     Suitable for Small Producers with Narrow Product
    Line.
     Service and Promotional Support given by
    Wholesaler.
     Example – Drugs, Cosmetics, Groceries etc.
    EXAMPLE
    EXAMPLES
     Personal Care: The personal care category has the largest number of brands, i.e.,
    21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL
    brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care
    category. Cigarettes account for 17% of the top 100 FMCG sales, and just below
    the personal care category. ITC alone accounts for 60% volume market share and
    70% by value of all filter cigarettes in India.

     Paint: Asian Paints is India’s largest paint company, with a turnover of Rs.22.6
    billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian
    Paints among the 200 Best Small Companies in the World.

     Foods: The foods category in FMCG is gaining popularity with a swing of launches
    by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating
    Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food
    category has also seen innovations like softies in ice creams, chapattis by HLL,
    ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This
    category seems to have faster development than the stagnating personal care
    category.
    THANK YOU

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