'Report on Fmcg Market Sructure and Market Share\r'

'PROJECT REPORT ON FMCG commercialise SRUCTURE AND MARKET voice What is FMCG? FMCG is an acronym for fast(a) Moving Consumer Goods, which refer to things that we buy from topical anaesthetic super tradeplaces on daily basis, the things that atomic pattern 18 non-durable, exchange quickly, at relatively low cost, hand over high turnover and be relatively cheaper. FMCG’s constitute a jumbo part of consumers’ budget in alone countries.\r\nThe more or less common in thelist be baby foods, dejection soaps, detergents, sh adenineoos, tooth noncurrente, cosmetics, shaving products, clothe polish, refined cooking oil, packaged foodstuff, loony drinks, chocolate bar, tissue constitution and other(a)(a) household accessories and ex 10ds to certain electronic goods and other non-durables such as glassw ar, bulbs, batteries, paper products and moldable goods, such as buckets etc. These items are meant for daily of frequent use and cook a high return.\r\nFM CG are products that begin a quick shelf turnover, at relatively low cost and dont beg a lot of thought, time and pecuniary investment to purchase. The margin of remuneration on every individual FMCG product is little nevertheless as they sell in large quantities so the cumulative profit on such products are high. and then profit in FMCG goods always translates to number of goods sold. The main segments of FMCG vault of heaven are : ) in-person care, Oral Care, Hair Care, Skin Care, person-to-person Wash (cosmetics and toiletries (soaps), deodorants, perfumes, male grooming, feminine hygiene, paper product); 2) Household care (fabric wash washout soaps, synthetic detergents, household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and piece of furniture polish); 3) Packaged food and health beverages (flour, tea, coffee, sugar, staples, cereals, dairy products, chocolates, soft d rinks, juices, bottled water, snack food, chocolates and cakes) 4) baccy.\r\nIndia ; the FMCG Market: The Indian FMCG field is an important contributor to the countrys GDP. The Indian FMCG sector with a market place size of US$14. 8 billion is the stern largest sector in the economy and is trusty for 5% of the resume factory exercise in India. The FMCG industry also creates engagement for 3 million people in downstream activities, much of which is disbursed in scummy towns and boorish India. This FMCG industry has witnessed strong annex in the past decade.\r\nThis has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Furthermore, the FMCG miraculous food increased due to the reduction in excise duties, packaging innovations etc. and impertinent the perception that the FMCG sector is a manufacturer of luxury items targeted for the elite but in reality, the sector meets the every day require of the masses. The lower -middle income group accounts for over 60% of the sectors gross revenue. At present, urban India accounts for 66% of total FMCG consumption, with unpolished India accounting for the remaining 34%.\r\nThe ripening incline of rural and semi-urban folks for FMCG products pass on be mainly responsible for the harvest-home in this sector, as manufacturers pass on adopt to deepen their concentration for higher gross revenue volumes. Many of the global FMCG majors hold up been present in the country for umteen decades. But in the conk ten eld, many of the smaller rung Indian FMCG companies piddle gained in scale. As a result, the unorganized and regional players sacrifice witnessed erosion in the market mete out. Availability of chance upon raw materials, cheaper labor costs and figurehead across the entire value ambit gives India a competitive advantage.\r\nThe FMCG market is site to double from USD 14. 7 billion in 2008-09 to USD 30 billion in 2012. FMCG sector will wit ness more than 60 per cent process in rural and semi-urban India. The bottom line is that Indian market is changing cursorily and is showing unexampled consumer caper opportunity. History of FMCG in India: In India, companies like ITC, HLL, Colgate, Cadbury and draw near remove been a dominant force in the FMCG sector well supported by relatively less competition and high unveiling barriers (import duty was high). These companies were, thitherfore, able to charge a premium for their products.\r\nIn this context, the margins were also on the higher side. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market percentage. In the process, margins have been compromised, more so in the last six years (FMCG sector witnessed decline in demand). The chase are the main characteristics of FMCGs: • From the customer’s perspective: 1. Frequent purchase 2. downhearted involvement (little or no driveway to choos e the item — products with strong stag loyalty are exceptions to this rule) . Low bell • From the companies perspective: 1. senior high volumes 2. Low region margins 3. Extensive distribution networks 4. High subscriber line turnover Major FMCG companies in India: Hindustan Unilever Ltd. , ITC (Indian Tobacco Company), Nestle India Ltd. , GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury India, Britannia Industries, Procter & guess Hygiene and Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi MARKET SHARE OF FMCG COMPANIES (BABY FOOD) IN INDIA FROM 2001 TO 2010 Bottom of Form\r\nIn the in a higher place pie chart we see the total gross sales during the financial years from 2001 to 2010 of divers(a) FMCG regimen Beverage companies in India . THE comparative degree DATA OF % MARKET SHARE OF snuggle INDIA LTD. WITH ALL OTHER COMPETITOR, DURING THE hold up 10 YEARS FROM 2001 TO 2010 ( in a higher place chart showing the FMCG Food Beverage †Baby Food companies theatrical role market share in the last 10 years from 2001to 2010) So we understructure see that in overall FMCG business Nestle India Ltd is distantly ahead of the stick of the companies as far as market share is concerned. MARKET SHARE IN THE YEAR 2010\r\nMeasurement of Market bodily structure: Herfindahlâ€Hirschman Index: Si is the market share of the ith firm Numbers-Equivalent of firms: interactive of HHI FOOD BEVERGE COMPANIES (BABY FOOD)| MARKET SHARE IN 2010 (Si)| | Cadbury India Ltd. | 0. 185753| 0. 034| Cepham Milk Specialities Ltd. | 0| 0| Continental Milkose (India) Ltd. | 0. 012213| 1. 491| Glaxosmithkline Consumer Healthcare Ltd. | 0. 188628| 0. 036| Heinz India Pvt. Ltd. | 0| 0| Jagatjit Industries Ltd. | 0. 084911| 7. 209| Kaira District Co-Op. Milk Producers northward Ltd. | 0. 028029| 7. 856| Nestle India Ltd. | 0. 75272| 0. 225| Raptakos, Brett & Co. Ltd. | 0. 025194| 6. 347| TOTAL =| 23. 198| Therefore, HHI = = 23. 198 Reciprocal of HHI = 1/23. 198 =0. 043 Priyanka please check the preceding calculation, I am not acquire the correct data. FMCG SALES GROWTH OF LAST 10 YEARS As per the sales figures received of the year 2001 to 2011, in the past 10 years from 2001 to 2010, after plotting the datas, we board that the graph for Nestle is steeply rising, where as for Cadbury and Glaxo, the graph rise is considerable, but for Jagatjit and Milkfood the graph rise is very minimal.\r\nThus Nestle being the market leader enjoys the rig of the market laeder and also the profit. FMCG SALES ledger GROWTH IN THE LAST 10 YEARS FROM 2001 TO 2010 (Graph showing the FMCG trend passim the last 10 years. ) FUTURE OPPORTUNITIES India is a fast developing country with a great population whose per capita income is growing rapidly and there is huge opportunity for the FMCG companies. The opportunities are as follows: * Increasing per capita income is driving FMCG growth in India * India’s consuming course of study i s growing rapidly Changing consumption pattern: Per capita income of Indian customer is change magnitude and FMCG products are relatively elastic in nature hence the judge sale should increase. PER CAPITA INCOME (Rs) (Above graph showing the trend of Per Capita Income of Indians and datas are collected from a research do by Govt. of India). ) As shown in the above graph the Per Capita Income of an Indian increases gradually throughout the years, and if this trend continues, then in afterlife Indian Population will have more purchase power and will purchase more FMCG products. % OF PAST tribe RISE AND FUTURE EXPECTATION Above graph shows the past population and expected future population rise, data are collected from the research made by Govt. of India). Here by the above graphs we drop see that there is huge orbit for FMCG products and since Nestle India Ltd. is the market leader in India hence it can gain the most out of it. SWOT ANALYSIS: faculty 1. Low operational costs 2 . naturalised distribution networks in both urban and rural areas. 3. Presence of well-known brands in FMCG sector. Weaknesses 1. Lower scope of investing in technology and achieving economies of scale. . Low exports levels 3. Counterfeit Products. Opportunities 1. untapped rural market 2. Rising income levels 3. macro domestic market-. 4. Export potential 5. High consumer goods pass. Threats 1. Removal of import restrictions. 2. Slowdown in rural demand. 3. Tax and regulatory structure. determination Customers in India are also spending more in FMCG as their measuring of living are growing. Though there was some downfall in sales and profit, in the beginning of this decade but after that considerable rise in both sales and profit, is seen.\r\nMany FMCG companies has started project, to at once reach the rural market. This may be considered as a revolutionary flavour since the urban market is reaching its intensity level and there is a huge scope exploring in the rural marke t. This will also be helpful not only increasing its market share but also fight competition. BIBLIOGRAPHY In order to make this project we have taken the help of the following websites & books: * www. wikipedia. com * www. oppapers. com * www. scribd. com Besides it, various books were also consulted to constitute the project report.\r\n'