FMCG

Consumer Non-Durables

FMCG business is a hard core

activity to be done on daily basis
 CONTRIBUTORS
NAME Roll.No.

• KAUSHIK BHASKAR 8105

• KHYATI DEDHIA 8115
• PREETI IYER 8125
• JOY KHISTY 8135
• SHRADDHA PIMPLE 8145
• SUNIL SINGH 8155
sr. INDEX
1 Objective

2 what is FMCG

3 What is FMCG Consumer non durables.

4 Characteristics of FMCG Consumer non durables.

5 Challenges of FMCG Consumer non durables.

6 Opportunities for FMCG Consumer non durables.

Understanding the sector through product analysis

•Shampoo industry

8 Sectorial analysis.
 OBJECTIVE
• Basically to understand the concept of
FMCG- consumer non durables.
• To Analyze & Study the characteristics,
challenge & opportunities of Industry.
 What is FMCG
• FMCG means Fast moving consumers goods
available in market as per the daily demand
of the consumers.
• It includes:
• Eatable items &
• Non eatable items
 What is FMCG
Consumer non-durables
• It is a classification of frequently
purchased consumer goods; non-
durables are those items which are
consumed by the consumer in one use or
a few uses; expendables.
 Set of Consumer Non-Durables
• Cleaning Products
• Office Supplies
• Packaging & Containers
• Paper & Paper Products
• Personal Products
• Rubber & Plastics
• Textile - Apparel Clothing
• Textile - Apparel Footwear & Accessories
 Characteristics of FMCG -CND
• Many of these products are perishable

• These products cater to necessities, comforts as well as

luxuries

• They meet the demands of the entire cross section of

population

• Price and income elasticity of demand varies across products

and consumers .

• Brand loyalties or recommendations of reliable retailer /

dealer drive purchase decision.

• Run by increasingly sophisticated and highly organized

groups.
 CHALLENGES for FMCG
-CND
Today's changing environment is the result of a wide
range of challenges they ‘re as follows:

• Price consciousness on Buyers/Customers part

• Efficient, low cost manufacturing

• Inefficient distribution network.

• Category growth , leadership in retail

• Maintaining leadership in category

Cntd….

• Increases in the price of raw materials and

other costs.
• Shortening product life cycles
• Loyalty.
• Changing buyer behavior and need
• Cold storage.
• technology
Challenges for Rural Markets.
• The rural and semi urban population is growing but
the problem faced by the FMCG manufacturers is the
logistics.

• Some of the other problems associated with rural

markets are acute dependence on the vagaries of the
monsoon, seasonal consumption linked to harvests,
festivals and special occasions, poor roads and power
problem.
• Value communication.
• Storage
• More preference is given to local venders.
 OPPORTUNITIES
• With 200 million people expected to shift
to processed and packaged food by 2010.

• India needs around US$ 28 billion of

investment in the food-processing industry
consumers to branded products.
• Huge Untapped market-Rural.

• Increasing Purchasing Power of the

consumers.
Hair Care Category in India

SHAMPOO INDUSTRY
 Hair Care Category in
India 
5 main products
• Styling products
• Herbal Remedies
• Hair Dyes / colors
• Hair Oil
• Shampoo
 
 
 Types of Shampoos
 Shampoo market is segmented on
benefit platforms
The top Shampoo brands in India
 Hair Care Facts 
• The frequency of shampoo usage is very low. 
• Most consumers use shampoo only once or twice in a
week. 
• In many cases, these products are used on special
occasions such as weddings, parties etc
• Some customers use shampoo only to address a specific
problem such as dandruff or when they need to
condition their hair
• Some consumers use natural conditioning agents such
as henna
• About 50% of consumers use ordinary toilet soaps to
wash their hair
Cntd…..
• Brand loyalties in shampoo are not very strong. 
Consumers frequently look for a change,
particularly in fragrance.

• An Indian needs more shampoo for a proper wash

( average 6 ml ) compared to 4 ml needed in
Western countries as most Indian women have
long hair

• In the North, local brands such as Ayur have

strong equities and these products being low
priced dilute sachet’s USP of low price .

• About 50 % of consumers use toilet soaps as well

as shampoo for cleaning their hair
 Challenges for Shampoo
Ind.
Major 4 “A”s
– Availability

– Affordability

– Acceptability

– Awareness
4-P’s SHAMPOO INDUSTRY
Shampoo market Size in India
Shampoo Sales In India 

URBAN
AREA

RURAL
AREA
Shampoo Usage 
Shampoo Penetration in
India 
 SECTORIAL REVIEW

FMCG –CONSUMER NON

DURABLES
INDUSTRY SEGMENTS

Spirits and
Tobacco
 Major domestic players

• Nirma • HLL
• Nestle • Dabur
• ITC • Godrej
• Britannia • Coca-Cola
• Pepsi • Marico indutries
• Cavin care • Perfetti india ltd
• Dhara foods • Haldiram
• Pepsico foods • Parakh foods
• MTR FOODS
• Paras industries ltd.
• Himalayas
 Major international players
• FRITO LAYS

• UNILEVER

• NESTLE

• GSK

• JOHNSON AND JOHNSON

• OZONE AYURVEDICS

• PROCTER AND GAMBLE

• RECKITT BENCKISER

• COLGATE PALMOLIVE
 QUICK FACTS
• Fast moving consumer goods – Consumer Durables has gained
importance with retailing gaining prominence.

• The Indian FMCG sector is the fourth largest sector in the

economy with a total market size in excess of US$ 13.1 billion

• FMCG is characterized by strong presence of MNC and well

established distribution network.

• The intense competition between the organized and unorganized

segments operating at low operational cost.

• Availability of key raw materials, cheaper labour costs and

presence of highly effective supply chain system gives
competitive advantage.
S

T
 STRENGTHS:
1. Low operational costs
2. Presence of established
distribution networks in both urban
and rural areas
3. Presence of well-known brands
in FMCG-& there by in CND
sector.
4. Increase in the income level of
the consumer.
5. Availability of raw material in
India & Cheap Labour
7. Less presence of MNC’S
WEAKNESSES:
4.Lower scope of investing in
technology and achieving economies of
scale, especially in small sectors.
6.Low exports levels.
8. "Me-too" products, which illegally
mimic the labels of the established
brands. These products narrow the
scope of FMCG products in rural and
semi-urban market.
10.Unaiviaibliy of infrastructure.
12.Education in rural India.
13.Pilferage
14.Unavaiblity of storage
15.India VS Bharat.
 OPPORTUNITIES
1. Untapped rural market
2. Rising income levels, i.e.
increase in purchasing power of
consumers & increase in the
demand.
3. Large domestic market- a
population of over one billion.
4. Export potential
5. High consumer goods spending
THREATS:
3.Removal of import restrictions
resulting in replacing of domestic
brands
4.Slowdown in rural demand
6.Tax and regulatory structure.
8.New entrants.
10.spurious goods and illegal
foreign imports.
12.Low infrastructure.
 Trends in the growth of
consumer Goods
MONTH Consumer Durable (%) Consumer Non-Durables (%)

2205-06 2006-07 2007-08 2205-06 2006-07 2007-08

April 18.7 7.4 2.4 11.9 9.4 18.7

May 17.7 17.5 -0.7 18.6 8.2 12.1

June 12.8 19.9 -3.6 27.5 1.8 6.3

July 3.8 16.1 -2.7 4.7 17.1 10.5

August 13.0 19.0 -6.2 8.0 13.6 2.4

Septe. 15.2 11.8 -7.3 10.5 12.2 2.6

5.4% 23.3 %
 IIP: Sectoral and Use- based
Classification of Industries
INDUSTRY GROUP WEIGHT IN GROWT RATE WEIGHTED
THE IIP CONTRIBUTION

2006- 2007- 2006- 2007-

07 08 07 08
Consumer Durables 5.4% 9.2% -1.0% 6.7% -1.0%
(a)

Consumer non 23.3% 10.4% 8.5% 21.8% 24.0%

Durables (b)

Consumer Goods 28.7% 10.1% 6.1% 28.5% 22.9%

(a+b)
 Economic Contribution
• The FMCG sector in India is expected to grow at a compounded
annual growth rate (CAGR) of 9% to a size of Rs 1,43,000 corer by
2010 from Rs 93,000 corer at present.

• With a growth of 52.5%, the BSE FMCG Index has, during the
last one year, outperformed the Sensex, which could manage a
growth of 41% only.

• A well-established distribution network, intense competition between

the organized and unorganized segments, low operating cost, strong
branding characterizes the sector.