Date: 16th November,2009

Presentation contains

Introduction of FMCG Products Brief history and forecast of FMCG markets and products Introduction of Shampoos products Hair Care Category of India Brief history of Shampoo market in India Marketing mix techniques use in project Market Research techniques use in project Shampoo market in Ahmedabad SWOR analysis of Shampoo Launching new Brand Work evidence

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

Characteristics of FMCG -

CNDMany 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.  

FMCG – Evolution1950’s-80’s – Low Investment in the sector

Low purchasing powerGovt’s emphasis on small scale sectorHLL and other company’s urbane focus

Post liberalizationEntry of MNCsFocus shifted to getting to rural consumer firstOthers, like Nestle, remained with the urban populationLatest fad to hit the market is the ‘sachet’ bug.

Mushrooming of regional brandsNirma enters and changes the focus to ‘Value for Money’ in the 70’s Post liberalization, Jyothi Laboratories, ‘Ghari’ Detergent and ‘Anchor’ toothpaste giving the nation-wide brands a run for their money.

Forecast 2010

Rural and semi-urbano128 million population thrice the urbanoMarket size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR)oIncrease penetration from the current less than 1%oProblems in the rural sector

Low per capita disposable incomesLarge number of daily wage earnersAcute dependence on vagaries of monsoonSeasonal consumptionPoor infrastructure – roads and power supply

UrbanoMarket 16.5k to 35k Crores (Growth of 100% at 20%CAGR)oIntense competition – severe pressure on margins – Focus on newer products, such as fruit juices

Source: Assocham Report ‘Future Prospects of FMCG’

Hair Care Category in India

5 main products ShampoosStyling products Herbal Remedies Hair Dyes / colors Hair Oil

Shampoos

Did you know, that the word Shampoo is derived from the Hindi word “Champi”.

Remember Johnny Walker’s famous song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil Maalish.

The British loved the massage so much, they started calling Champi as Shampoo

Types of Shampoos

Top Shampoo Brands in India

Top companies of shampoo in India

Marketing Mix techniques we

use in our Project

Market research techniques

use in our project

Sample Size: 40 People of Ahmedabad different areas, - 10 Women unmarried - 10 women married - 10 men unmarried - 10 men married

Economy groups include: A1, A2, B1, B2, C1, C2, D1, D2, E1, E2

Malls survey: 4 malls cover

Retail Outlets survey: 10 retail outlets

Parlors Survey: 4 Famous Parlors (Lekme, Jawed Habbib, Oriflamme, Belleza

Survey type: Fill up questioners -Door to door, interviewing, outlets research , outside etc

Shampoo market consumption

pattern in Ahmedabad

Economy class vise consumption

Monthly Budget allocation behind shampoo and

conditioner for nuclear family [4 member] ( hair

products)

Purchase from

Malls 20%

Agencies a5%

Sham

poo

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 in many places in verity

WEAKNESSES: 1.Lower scope of investing in technology and achieving economies of scale, especially in small sectors.

2.Low exports levels.

1.Education in rural Market.

1.Pilferage

1. So many products

2. Availability of Product in every sectors not possible

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:

1.Removal of import restrictions resulting in replacing of domestic brands

1.Slowdown in rural demand

2.New entrants.

3.spurious goods and illegal foreign imports.

4.Low infrastructure.

Basic information regarding the

product

Thank you