...WHITE PAPER Process benchmarking to improve effectiveness, efficiency and structure in Fast Moving Consumer Goods (FMCG) firms June 2012 WHITE PAPER Contents Executive summary Introduction Problem definition Existing solutions Process benchmarking as a solution Business benefits Summary Contact us 2 3 5 7 8 14 14 15 Contact us on +61 2 8005 0753 or visit www.assentcg.com C:\Users\Hayley\Documents\OS Clients\Assent\White papers\12.06.26 WP Benchmarking processes.docx 1 © Copyright Assent Consulting Group 2012 WHITE PAPER Executive summary Benefits The benefit of benchmarking a firm’s processes is that one company can look at other companies with different strengths and learn then improve from them. FMCG is a truly global business and excellence varies by category and channel expertise. This is an industry in which there are several opportunities to learn and adopt best practice processes. Best practice has been derived from studies of 80 FMCG firms conducted from 2006 to 2012 in lead world markets. These studies observed, evaluated, measured and documented 12 major areas of work and described these as processes. Therefore FMCG has a standard against which one company’s ways of working (processes), and structures can be compared and evaluated against another’s. Why benchmark? The purpose of benchmarking is to help companies achieve maximum effectiveness and efficiency by comparing its processes to best in class in the FMCG industry. However strong...
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...A BRIEF STUDY ON MARKET SRUCTURE AND DEMAND ANALYSIS OF HINDUSTAN UNILEVER TABLE OF CONTENT Sl.no | Content | Page no. | 1.2.3.4.5.6. | Executive summaryIntroductionObjectives and MethodologyFindingsProduct LineSWOT AnalysisCompetitors AnalysisPerformance AnalysisFuture OpportunitiesFuture Projects of HULConclusionBibliography | 34-56789-1213-1515-18192021 | EXECUTIVE SUMMARY Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. Both Unilever and HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. In India, the company offers many households brands like, Dove,Lifebuoy, Lipton,Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were also rewarded when four of HUL brands found place in the ‘Top 10 brands’ list for the year 2008 published in The Economic Times. Unilever was a result of the merger between the Dutch margarine company, Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was the undisputed market leader but now faces tough competition from Proctor & Gamble and Colgate-Palmolive. HUL is also known for its strong distribution network in India. In order to further strengthen its distribution in the rural areas and to empower the local women, HUL launched a project Shakti in 2000 in a district in Andhra Pradesh. The idea behind...
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...Being apart from someone you love is hard, but not impossible. Perry Patetic in his excerpt, “Fast-Moving Society”, argues that a fast moving society is causing relationships to drift apart and lose communication with one another. The author supports his argument by providing examples of obstacles faced due to different methods of transportation. The author’s purpose is to persuade his audience to believe that transportation has made it easier for some to move away from loved one’s and eventually drift apart. The author establishes a heartfelt tone for all of today’s society. However, a fast moving society with different modes of transportation should not affect whether or not a relationship stays in tact. Some might agree with Patetic, that transportation has made it easier to part ways and made more difficult to see friends, families, and...
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...Vertical marketing This relatively recent development integrates the channel with the original supplier - producer, wholesalers and retailers working in one unified system. This may arise becauseone member of the chain owns the other elements (often called `corporate systemsintegration'); a supplier owning its own retail outlets, this being 'forward' integration. It is perhaps more likely that a retailer will own its own suppliers, this being 'backward'integration. (For example, MFI, the furniture retailer, owns Hygena which makes its kitchenand bedroom units.) The integration can also be by franchise (such as that offered byMcDonald's hamburgers and Benetton clothes) or simple co-operation (in the way thatMarks & Spencer co-operates with its suppliers).Alternative approaches are 'contractual systems', often led by a wholesale or retail co-operative, and `administered marketing systems' where one (dominant) member of thedistribution chain uses its position to co-ordinate the other members' activities. This hastraditionally been the form led by manufacturers.The intention of vertical marketing is to give all those involved (and particularly thesupplier at one end, and the retailer at the other) 'control' over the distribution chain. Thisremoves one set of variables from the marketing equations.Other research indicates that vertical integration is a strategy which is best pursued at themature stage of the market (or product). At earlier stages it can actually reduce profits. It...
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...EIC ANALYSIS - ITC Submitted By Nisha ECONOMY India GDP growth rate 2012 was 5%, 2013 is 5.8% and it is expected to grow at 6.5% in 2013 Inflation :WPI-7.6% and CPI-10% Gross fiscal deficit 5.1 Revenue Deficit-3.5 Third largest economy in terms of Purchasing Power Parity Sector wise Contribution to GDP I) Agriculture 17% II) Industry 18% III) Services 65% FMCG INDUSTRY Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Category: Household Goods, Personal Care, Drivers of Growth In FDI in India Govt pro industry Policies Increase in Per Capita Rise of RuralIncome of Consumers rural and urban consumers FDI Support Food and Beverages and Healthcare. Items in this category include all consumables that customers buy at regular interval The FMCG’s promising market includes Cumulative FDI inflows middle class and the rural segments of the (USDmillion) as in 2012 1500 Indian population. Rapid growth with well-established 1000 500 distribution networks and intense 0 competition between the organized and unorganized segments High money circulated in the Economy due to FMCG Major Players: HUL, P&G, ITC ,Dabur , Colgate Palmolive etc FMCG INDUSTRY (TRENDS) FMCG sector in India is the fourth largest sector in the economy FMCG Revenue in USD billion 40 30 India has become a key targeted country, with average growth in the FMCG industry of 35...
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...Assemblage of factors affecting Success of Fast Moving Consumer Goods Parmindar Singh1 1 Research Scholar, Department of Commerce, Chaudhary Devi Lal University, Sirsa. Abstract This paper has mainly focused to the study about the factors which affects on the success of Fast Moving Consumer Goods. Factor analysis is employed on data of 24 items that have main effect on the individual consumer. The major objective of this study is to determine the factors which affects the success of FMCG. The response of the 100 respondents has been selected for the purpose of the study. The findings indicate that factor 4 (v4) is at the top by which consumers make their opinion for use of buying in products with mean value (3.12) which is more effective in the comparison of the low mean value (1.31) of the factor 2 (v6) that is less effective in making the opinion for use of buying the products . Overall the analysis provides an understanding the consumer differ significantly by age, education and income level as consumer wise on intrinsic motivation. The results are important for the group of the consumers in making their purchase decision, companies selling their products and the various parties involve advertiser, investors etc. 1. Introduction Fast moving consumer goods is also known as consumer packaged goods. The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and it is at present the fourth largest sector with a total market...
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...market focus, HLL touches the lives of people all over India. In the 70-odd years that HLL has been in India, it has adopted several different strategies to leverage its strengths and gain the success it currently enjoys. Backed by a very able management team and the support of its parent company, it has achieved enormous success that few other companies its size and age have managed in India. However, the recent years have seen many challengers to HLL’s previously undisputed status. The market is saturated and sales have stagnated. HLL has responded to this challenge by studying its shortcomings, identifying failing strategies, and adopting new and innovative methods to re-gain market share. Some of the strategies it has adopted are moving to the low margin mass market, pruning it’s brand portfolio, and strengthening it’s distribution network. One of the key strategies is shift in target segment to the relatively unexplored rural markets. While most MNCs wrote off this segment as difficult to reach and unprofitable, HLL learned from success stories such as that of Nirma and Cavin Care and used it scale up on core competencies to enter and succeed in the market. HLL’s growth has been both organic and inorganic. Acquisitions like that of TOMCO (Tata Oil Mills Company) and mergers like Lakme Lever limited were well thought out with clear targets in mind. Strategies such as these have been responsible for the extensive distribution network that HLL has today. It has strong...
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...Case Henkel Ibérica (A) The case tells about the big conglomerate Henkel KgaA and its challenges in highly competed business area, the fast moving consumer goods (FMCG). Henkel Spain, the Spanish subsidiary of the German company Henkel KgaA, has noticed that the skyrocketing level of sales promotions and the complexity of the laundry detergent portfolio have seriously taxed their sales, production, and distibution systems. Stock keeping units (SKU) have almost tripled in five years because of new product launches, brand variations, and special product packaging. Now Esteban Garriga, customer service director at Henkel Iberica, is questioning whether Collaborative Planning, Forecasting, and Replenishment (CPFR) would help manage retail promotions and limit their impact on the stock-outs and obsolete inventory. Many in the organization also believe that the company should abandon or cut back promotions and adopt an everyday low pricing strategy. Henkel uses special promotions, instead of straight price promotions, such as more product for the same price, specially bundled products, and coupons or free items attached to the package. These promotions are retailer-specific, therefore there is a need for a wide variations of different kind of packagings. The product offerings have become more complex and Henkel and retailers find it more difficult to develop an accurate sales forecast and demand planning systems, which lead to higher levels of obsolete and out-of stock items...
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...Physical goods like soap Airlines services Tourism packages (experience) Properties like shopping mall A product can be anything Organisatin ( cancer foundation) Nations ( thailand) Places like Hyderabad, Gujarat. A PRODUCT CAN BE ANYTHING : In general, the product is defined as a "thing produced by labor or effort” .or the "result of an act or a process" and stems from the verb produce, from the Latin prōdūce(re) '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things produced". In ECONOMICS and COMMERCE, products belong to a broader category of GOODS. The economic meaning of product was first used by political economist Adam Smith. * In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. * In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. * In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project. * In insurance, the policies are considered products offered for sale by the insurancecompany that created...
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...ISSN: 2319-8753 International Journal of Innovative Research in Science, Engineering and Technology (An ISO 3297: 2007 Certified Organization) Vol. 3, Issue 1, January 2014 FAST MOVING CONSUMER GOODS RETAIL MARKET, GROWTH PROSPECT, MARKET OVERVIEW AND FOOD INFLATION IN INDIAN MARKET – AN OVERVIEW RALLABANDI SRINIVASU Professor & Director –Operations, St. Mary’s Group of Institutions, Hyderabad, India. Abstract:The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP. Fast moving consumer goods (FMCGs) constitute a large part of consumers’ budget in all countries. This study is aimed at to shed light on competitive conditions prevailing in the FMCGs retail trade sector. This study also focused on the analysis of competitive within the sector, and draws lessons for competition policy. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments. India’s FMCG sector creates employment for more than three million people in downstream activities. It is currently growing at double-digit rate and is expected to maintain a high growth rate. Indian buyers were a bit conservative partly due to lesser disposable income and partly due to fewer competitive and more variety of products. Food inflation could restrict consumers’ demand and pricing flexibility for FMCG while lowering consumers’ purchasing...
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...FAST MOVING CONSUMER GOODS (FMCG) Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD 30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural and semi-urban India by 2010. Indian consumer goods market is expected to reach $400 billion by 2010.Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed...
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...2015 Fast Moving Consumer Goods: IN AFRICA NAME: DENATA BALYAGATI STUDENT NO: 213570712 INTRODUCTION This paper aims at firstly creating an overview of what constitutes as a fast moving consumer goods industry, from which we conduct an analysis for such goods within the African continent in attribution to Unilever; one of the leading fast moving consumer goods companies. Fast moving consumer goods (FMCG) also known as consumer packaged goods (CPG) form one of the biggest industries in the world, there are many facts for this; 1.) Strong companies are behind this industry, they gain dominance through the big brands they establish i.e. products that are recognised and preferred by consumers 2.) The FMCG industry is characterised by fast changes and evolution, this is evident in the pace at which products move in the shelves of retail shops and innovative changes in products themselves 3.) The resilience of the FMCG industry during the recession whilst other company’s weathered is because consumers still need their products for their daily activities 4.) The FMCG industry is focused with offering what consumers want and need these are demands that can never be fully fulfilled because of changing preferences. This guarantees business. (Reckitt Benckiser Group plc, 2015) The rise in the presence of FMCG companies in Africa can be attributed to the fact that nine of the 20 fast growing economies are from the African continent; Mozambique, Zambia, Nigeria to mention but a...
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...A Project On Consumer Behaviour Submitted To University of Mumbai In the partial fulfillment of the B.M.S. Degree By Vivek .R. Jaiswal Roll No. 29 Uder the guidance of Prof. Furquan Shaikh Studying at Rizvi Education Society’s Rizvi College of Art, Science & Commerce Rizvi Educational Complex, Bandra (West), Mumbai Academic Year 2012-2013 Declaration I Mr.Vivek .R. Jaiswal a student of the TYBMS class, Roll No.29 of the academic year 2011-2013 studying at Rizvi College of Art, Science & Commerce, herby declare that the work done on the project entitled CONSUMER BEHAVIOUR is true and original to the best of my knowledge and my any reference used in the project is duly acknowledged. Date: Signature of Student (Name of student Vivek .R. Jaiswal) Cerificate This is to certify that Mr.Vivek.R.Jaiswal a student of TYBMS class, Roll No. 29 of the academic year 2012-2013 studying at Rizvi College of Art, Science & Commerce, has successful completed the project entitled Consumer Behaviour. Prof. Furqan Shaikh Prof. Furqan Shaikh (Project Guide) (Prof. Furqan Shaikh) External Examiner Dr.M.Z. Farooqui (Principal) . Introduction As the twentieth century has come to a close and we have move into the third millennium...
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...Market share of the companies in the FMCG sector Current Status: The Fast Moving Consumer Goods (FMCG) companies have shown one more quarter of good growth in December quarter. The growth was supported by the rise in spend, price hike and festive season. However the overall slowdown in the economy has began to affect the FMCG sector with companies posting deceleration in volume growth. Discretionary spending has been hit severely due to the ongoing slowdown. Volume has been impacted due to rising inflation, standard packaging norms, hike in prices and closures in some Modern trade stores. In the upcoming budget, the FMCG sector would be hoping for announcements that would boost demand Source: IBEF.org News Date: 9 July 2014 FMCG Stock rise on railway budget report: It provide major boost to ready to eat and food industry which was slow due to economic slowdown Source: Business Line The industry has witnessed healthy foreign direct investment (FDI) inflow, as the sector accounted for 3 per cent of the country’s total FDI inflow in the period April 2000 to October 2013. Organised retail share is expected to double to 14–18 per cent of the overall retail market by 2015. The Government of India has approved 51 per cent FDI in multi-brand retail, which will boost the nascent organised retail market in the country. It has also allowed 100 per cent FDI in the cash and carry segment and in single-brand retail. The government has also amended the Sugarcane Control Order...
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...OVERVIEW OF AN FMCG SECTOR Fast moving consumer goods (FMCG) companies are among the most visible across the world. Who has not heard of Nestle or Unilever or of Dabur or Parle? The FMCG companies may go global, with operations around the world or may operate only in India. They have one common feature and that is ownership of powerful brands. Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. FMCG products contrast with durable goods or major appliances such as kitchen appliances, which are generally replaced less than once a year. In Britain, "white goods" in FMCG refers to large household electronic items such as refrigerators. Smaller items such as TV sets and stereo systems are sometimes termed "brown goods". Some of the best known examples of Fast Moving Consumer Goods companies include Colgate-Palmolive, General Mills, H. J. Heinz...
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