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INDIAN SKIN CARE & ANTI AGEING CATEGORY: LAUNCH of P&G’s OLAY 2007-08-31 17:14:00 Market Size Indian skincare market ~ Rs 2,100 crore Skincare moisturiser market ~ Rs 1,600 crorePremium Skincare Market ~ 450 croreSkincare market has been steadily growing at 16 per cent as of last yearAnti-Ageing Market ~ 60 croreTrends Anti-ageing solutions are nascent but gaining groundFastest growing segment in the skincare market (approximately 3 per cent of the overall skin category, it has doubled in the last three years)Development of the skincare category in IndiaGrowing consumer awarenessBrands & Companies HUL – Pond’s Age Miracle Range P&G – Olay Total Effects: Fighting the ‘7 signs of ageing’ (lines and wrinkles, sagging, uneven skin tone, age spots, pores, dullness and dryness). Olay is a $2-billion brand. L’Oreal Garnier: In India from last decade Target Consumer: Indian Women - looking for one product that will help her stay young and beautifulP&G’s Strategy: Launching Olay in this Anti-Ageing category is a strategy to tap into the premium segment befo
Want to work with FMCG Marketers? 2007-08-25 16:12:00 FMCG Marketers
is starting a new venture. We want a team of passionate FMCG marketers who can explore different FMCG categories by covering the following points:Market Potential/ Size Market Trends Existing SegmentsDetails of companies, brands and SKUs and the respective segments they are in Marketing Activities Marketing and Branding strategy Media Strategy Distribution Strategy Legal and Regulatory Environment Future of this category And any other relevant issues We have a ready list of all the categories and want interested people to pick one each in which they are working/ interested. You can choose from the following: Agarbathi, Air Freshner, Atta, Bath Gels, Biscuits, Branded Noodles, Breakfast Meal, Chocolate, Chyawanprash, Coffee, Soft Drink, Confectionary, COsmetics, Creams (all possible ones), Dates, Deo, Detergents, Diapers, Dish Wash (Powder, Bar and Liquid), Edible Oil, Energy Drink, Eye Drops, Skin Care, Hair Care (Cleaneser, Colorant, Conditioner, Cream, Gel, Oil, Remova
Corporate Identity Makeover 2007-07-25 05:46:00 New Avtar of HLL - Hindustan Unilever Limited Hindustan Lever Ltd has formally introduced a new corporate logo and changed its name to Hindustan Unilever Ltd.Whats the purpose?leverage the global scale of the company and at the same time keep its Indian identity intact with its new nameMaintaining a fine balance between its Indian identity and global heritageIndia is an exception to have its name as a suffix unlike the rest of its subsidiaries where it prefixes its name with the name of the country. According to HLL, retaining the name "Hindustan" as the first word in its name reflects the company's continued commitment to local economy, consumers, partners and employees.What does the symbol signify?company's mission of `adding vitality to life'comprises 25 different icons representing the organisation, its brands and the idea of vitalityEach of the icons, which make up the U, represent broadly product categories the group is in - for example, a tiny spoon in the logo is a symbol of Read more:Makeover
Acquisitions of companies and brands – FMCG Sector 2007-07-23 07:24:00 “Growth is Life” is not just a punch line of Reliance, but it’s what every business/ sector/ company strives for. And FMCG sector/ companies are no exception to this.The sector saw a slump between ’02 and ’04 but has made a quick recovery. We have seen a transformation in the percentage growth of FMCG sector from single to double digit growth. This definitely shows us signs of good times. Let me give you some statistics.According to latest HSBC Report (ET – March 10, 2006), FMCG is projected to grow by over 60 per cent till 2010Total size of the FMCG sector will rise from around Rs 56,500 crore in ’05 to Rs 92,100 crore in ’10.What is running this sector in the past few years? There exist only two growth paths– Organic (Innovation) or Inorganic.We have seen FMCG behemoths like Proctor & Gamble to be proponent of organic growth. Recently (April 27, 2006), global CEO of Proctor & Gamble AG Lafley said “Organic growth is more valuable because it comes from your cor Read more:Acquisitions
Sachet Revolution is Back 2007-07-16 23:53:00 In continuation to - “C K Ranganathan, CEO of CavinKare: Rags-to-riches!!”Today economic times - “Small is big again: FMCGs bring back sachet culture”Let me first enumerate few latest sachet examples:1. Amul after becoming 1b$ organization to come up with1.1. 25 gms “munna” butter packs in retail market1.2. Small milk packs in select markets including Pune2. Kellogg’s recently launched small packs of corn flakes to attract non-consumers3. Piramyd Retail too is promoting small packs in its private labels in select Tru Mart stores4. Telecom pre paid connections5. Tata Sky different packagesThis is not a new concept in India, as it was started in early eighties by Caninkare in form of their Chic shampoo and after that has shifted its gears to almost all possible categories like detergents, soaps, toothpaste, sauces, maggi chotu packs, Atta, mineral water, toiletries and the list goes on.Let us know look into the reasons for this revolution:1. Affordably priced product2. Les
FMCG WIZARDS CONTEST: Future of FMCG in India (5 years from now) 2007-03-29 09:41:00 Welcome to India
's first FMCG Wisdom WebsiteI am rolling out a contest on FMCG sector in form of a Reaserch Paper. As many people in FMCG marketers community are interested in doing projects in FMCG sector, i am starting this Contest - FMCG WIZARDS.CONTEXTThere are different FMCG categories existing in India. At a macro level there are mainly four categories – Home & Personal Care, Foods & Beverages, Cigarettes and Alcohol and at a micro we sub categories under HPC and F&B. Some of them are quite established in India. Just to name a few, the established ones are Soaps, Shampoos, Biscuits, Confectionary, Cigarettes, Salt, Snack Foods(Chips & Namkeens) are more than 1000 Cr. categories. Other FMCG categories are in nascent stage like Ready to Eat, Breakfast Meals, which are well within 100 Cr.There are some categories like Chips & Namkeens, which today has a huge market of 2000 Cr. and was miniscule 6 years back. One thing is very important to understand here is that the s Read more:Future
Budgets Implications on FMCG Sector 2007-03-27 01:32:00 The Budget gives more focus on the agricultural/farm sector that will boost the rural income thus providing better growth prospects to the FMCG companies. With 12.2% of the world population living in the villages of India, the Indian rural FMCG market is something no one can overlook. Better infrastructure facilities will improve their supply chain. Also, with rising income and growing consumerism, FMCG sectors are likely to benefit. Growth potential for all the FMCG companies is huge as the per capita consumption of almost all products in the country is amongst the lowest in the world. Further, if these companies can change consumer's mindset and offer new generation products, they would be able to generate higher growth in the future.Points to rememberFarm sector has been given the top priority. Agriculture investments to go up to 2% of GDPDuty on edible oil has been reducedExcise duty exempted for all food mixes and biscuitsCustom duty on Sunflower oil (crude and refined) reduced b Read more:Budgets
, Implications
Innovations in FMCG sphere: India 2007-03-11 06:51:00 There are two types of innovations - Evolutionary and RevolutionaryA) Evolutionary: Its just an addition to some innovation/ launch etc done in past. Just take the example of Colgate Maxfresh. Its just an addition of a new attribute to the existing portfolio.B) Revolutionary: It is something out of box - alltogether new where nobody has entered so far. Lets take an example of Lays Kukure where they did some innovation with Snack Foods category in FMCG. Other example is Salt Toothpaste - its exactly not revolutionary, but its really a different value propositions which consumers never thought of. This was possible after lot of R&D done in area of dentalNow think of weird innovations - some liquid which when applied on hands will remove all the germs and make your hand absolutely clean without even using water. It has an awesome utility - its is revolutionary. But here the important point is whether this is launched in right time to the right markets for set of consumers.But definately t Read more:India
, Innovations
Lavazza eys on Barista 2007-03-11 03:48:00 One more acquisition!! This time its that of the leading coffee chain in India by Italian coffee chain, Lavazza
.This all started with the visit of an official/ owner of Lavazza who visited a Barista outlet few weeks back and made his mind to take Barista in their international portfolio.Italy's largest coffee company Lavazza is taking over Barista (Owner: NRI C Sivasankaran) and Fresh and Honest Café Ltd. (FHCL). The transaction would be completed over the next 4 weeks. With their plush looks, ambience and range of coffees, the two chains enjoy a mainly young clientele that Lavazza would inherit.Lavazza’s entrance would preclude the US coffee major Starbucks that has been in talks with various companies for their foray into India. Lavazza owns the exclusive coffee chain Lavazza BLUE, and has a range of served as well as off the shelf products including Bevanda Bianca and Ciocolatto.Barista has over 150 Espresso Bars and Barista ‘Crème’ outlets in over 29 locations in India. Be
Trade Schemes for different FMCG Categories 2007-02-27 00:32:00 Different FMCG categories should have different
trade schemes. Lets take few categories.1. Atta: Quantity Purchase Scheme will work here. This will have different slabs and will have higher encentive for higher slabs. Eg. On buy of 10 tonnes of Atta for a period of 2 months, 5 % additional discount will be given and a washing machine will be given2. Salt: Its more of a wholesale driven category, where price is a crucial dimension. Just by cutting 30 paisa on a Kg of Salt, respective companies can increase their sales3. biscuits: Here trade schemes are in form of some discount if they clear the bill on time. Its called CD - Cash Discount - normally companies give 1% CD. but its very important to understand that its more of a consumer pull category and trade push dosent work here4. Soft Drinnks: QPS works here as well.More discussion on this topic on FMCG Marketers. Read more:Categories
, Schemes
, Trade
Super Value Stores - Modern Retail Format 2006-11-12 03:59:00 This is the most effective and widely used form of merchandising practices adopted by HLL to enhance their visibility in the form of window paid displays.5 visibility aids for SVSØ Glow sign boardsØ Boards should be cleaned and maintained on each visitØ Boards should be litØ HLL planogram must be thereØ Board backing sheetCriteriaØ The uppermost display window must not be 8 ft above the ground level of the outlet.Ø Ideally all the display windows should be between 4-8 ft from the floorØ Criteria for an outlet to qualify for SVS is must have 8 window displaysØ Out of 8 windows 6 windows signify product portfolio and 2 windows denote news cornerØ News corner windows are hired and changed every 21-30 of the month and give information about new product inventions and offeringsØ News corner windows should be ideally 1-2 ft above the counter top of the outlet.Ø 3 % CD is given to SVS on fulfillment of all the criteria de Read more:Modern
, Retail
, Super
, Value
FMCG Wholesale Industry 2006-10-31 10:49:00 One of member of FMCG Marketers, Gaurav asked me put some insights on Wholesale
industry in India, its operation, key factors etc. Let me give you some pointers which may help you guys.For any product category which is high selling will have wholesalers. Take the case of biggest FMCG product category - cigarettes or the next family of product categories - Personal products, all have a combination of wholesale and Retail Sale. The only difference between the two is the offtake levels, financial capacity and sometimes infrastructure to deliver to retailers.Normally the rates for wholesale is cheaper than retail, as it is in bulk. This sometimes lead to price cutting in market. Both retail and wholesale have a role to play. Its always good to have high retail thruput (Total Retail Sales/ Total Sales) to have higher control of organization over the retailers. This will help the organization to launch new brands in future, increase visibility at the outlets, which is just because of relatio
Sunfeast foray into Biscuits 2006-10-08 08:50:00 Major players in biscuits who dominated the industry long back were Parle and Britannia. With that there were smaller brands in various regions. Instead of all this ITC took a bold step to hit on these biscuit mammoths making 82% of industry (in 2004)Now the important question at hand is the reason why ITC entered into this product category. Let me enumerate some reason:Food segment is Rs. 550,000 crores (112 b$)6% is FMCG (Branded and packaged) – Rs. 33000 crores In developing markets, the above percentage is as high as 95%. So looking into future, India’s will have more organized and branded food product categories. It will lead to dual effect: Increase in base of biscuit segment and Increase in % of branded food categories ITC has a great scope to be a branded player Branded Biscuits
industry come out to be around Rs. 4000 crores Increasing at the rate of 12 to 14% yoy Synergies with ITC core competencies (value addition to wheat with Aashirwad Atta brand)Biscuits as a segment p Read more:Sunfeast
Distribution Model in HLL 2006-09-27 09:51:00 As mentioned in one of my post - i mentioned about distrubution model of ITC. Now its time to tell you guys the model for the second biggest FMCG in India, HLL.Starting with Factory, then to C&F and finally to the Distributors. In HLL they are called RS - Redistribution. For rural markets, the distributors are called Streamline RS.Lets start with RS. They supply stock to Wholesalers, Retailers and IDC (Indirect Coverage). IDC is something like a RBD (Rural Brand Distributor) in ITC. Now in case of Rural Distributor (Streamline RS), they supply stock to Star Sellers (in different towns). The Star Sellers covers markets between 2 and 50 K. They are like SCPs (Stock Carrying Point) in ITC.Apart from that, they also have Shakti in place (Women Empowerment and Selling).
FMCG Product Categories 2006-09-25 09:20:00 There are mainly 4 product categories in FMCG:Home and Personal Care (Home Care and Personal Care)Foods and Beverages Cigarettes Alcohol These categories can be divided in sub categories. Lets take one by one:1a. Household Care: It can be divided into the following categoriesFabric wash - Laundry soaps and Synthetic detergentsHousehold cleaners - Dish/utensil cleaners, floor cleaners, Toilet cleaners, Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish1b. Personal Care: It can be divided into the following categoriesOral Care - Toothpaste Skin Care - Creams, Lotions, Gellies Hair Care - Hair Oil, Shampoos Personal Wash - Soaps Cosmetic & Toiletries Talcums Deodorants Perfumes Paper Products - (tissues, diapers, sanitary)Shoe care2a. FoodsConfectionary Staples/ Cereals Bakery products - Biscuits, bread, cakesSnack foodChocolatesIce creamProcessed fruitsVegetables Meat Dairy productsBranded flour, rice, sugar2b. Beverages TeaCoffeeJuicesBottled wat Read more:Categories
Fascination for FMCG - Part 1 2006-09-22 07:36:00 A mother's feed is paramount for a newborn. But gradually, mother has to rely on nutritious food for the better health of her baby. Now, she is ready for a branded diet - a Ceralac. This is one of the first few experiences with FMCG which may have had happened to us.At very stage of life, one is in constant touch with one or other FMCG brands. The first instance with FMCG in daily routine is a visit to bathroom to brush ones teeth. One is ready for a Colgate wash with an Oral-B brush. Other looking for freshness buy a Close Up. Now is time for my face, to remove a day long beard. Ready to wet the face, zip off the shaving kit to have access to Park Avenue shaving Cream & Gillette blades, to have a smooth shave.Mother as her kid to use dettol soap to fight against the unwanted germs. The kid ask for a Horlicks in south India and Bournvita in North, before he sets off for a hectic day. Here the bells rings and everyone of them are set for Maggi Noodles Recess break or a Sunfeast bis
Tracking Freshness ... a Concern 2006-07-11 03:29:00 Have you even checked the expiry date of the product you consume everyday. Most of you dont do ... I must bet. But is it the responsibility of consumers?Now think of a scenario - "Total removal of expired stocks from retailers by all the companies". Then the consumers will never bother to check the expiry dates. Now the next question arise is that whether the companies track the outdated stocks. I have personally seen many expired products in the markets, which the retailer keep selling. This is unethical at the part of both retailers and more on the organization.There should ideally be a supervisor to track the outlets in different markets for the freshness. Now lets look at how this problem arise. The main reason is the inefficient estimate of the stock at the wholesalers and the retailer level. So in a utopian state of perfect estimates, there wont be any damage. But that will always happen. So the companies role should be to come up right estimates if not perfect, which will increa Read more:Concern
, Tracking
Merchandising ... Mantra to increase visibility 2006-07-08 02:24:00 Just remember the last time you visited a Mall, nearby Grocery outlet and local Convenience shops (Panwaris). Some products catches the eye of consumers - as they are in the vicinity of eye contact and others in the nook which are never observed.Lets take different situations where merchandizing will increase the visibilty and then the Brand Salience.Brands near billing counter: People who go to Big Bazaar must have noticed that Lays/ Bytes Packets are kept near the billing counter before they have finalized the other brands. Now, its not only display but the schemes on the Brands - 1 Lays Rs. 20 packet with buy of 3 Packs of Lays. It comes out to be Rs. 15 packet. Most of the consumers will put 4 of Lays in their basket. Brands in one product categories: Lets take the example of Biscuits in Big Bazaar again. There is different height for different brands on the rack. Kids prefer Sunfeast Cream biscuits - which make ITC to place their cream variant a little lower (around 3 to 4 feet) a Read more:Mantra
ROLE of IT in FMCG Organization 2006-07-06 05:04:00 Just think of a situation: "Delivery of right stock to wholesaler/ distributor once/ twice a week"Lets not go into National level delivery and try our hands with State first. Lets take Uttar Pradesh with number of Wholesalers/ Distributors (WDs)We all know that India market in general is heterogenous and also the states. Even a city like Lucknow will have diverse people with different disposable incomes, lifestyles etc. Lets divide into Lucknow city into different small markets. Some market will smoke Wills Classic and others are extremely loyal to CAPSTON.So its not toy handling to first of all estimate the demand for different regions. Lets assume even if you the right estimates for all markets for the next month (which actually is idealistic), how will you decide how much to deliver to different WDs every next few days. Lets go to some basics:1. WD has a constraint of stock capacity which make him impossible to stock for the whole month, also it may lead to expiry of the products.2. Read more:Organization
Role of Distribution in launching new Brands 2006-07-04 08:35:00 As mentioned in the last few posts, distribution is the key in FMCG sector. So lets start with some stats.ITC cover 2 million outlets directly and 4 m indirectly HLL cover 3 to 3.5 million outlets indirectly India has 6 million outlets Does this presence of ITC and HLL will help them to launch new Brands
? Lets look at some points: Brand ITC/ HLLEstablished relationship of with the outletsOutlets dependent on the companies for other brands in Demand in MarketAttractive Trade Promotions Retail Outlets also need a variety, be it biscuits or soap, to satisfy different needs of the consumersA combo of Branding Expertise and Distribution Capabilities is required. Lets take few examples:STAR Cigarette: With ITC's deep penetration and right relationship with the outlet owners, they were able to launch a new brand in Bingo category. Just think of the numerous rules & regulations in tobacco industry which make any cigarette company almost impossible to lauch a new name. But nothing is impos
Product/ Brand reaching the end consumer 2006-07-04 00:10:00 Just think of Rs. 1800 crore confectionary market in India.Now think of any grocery and convenience outlet in your vicinity. Do you see one of Mint-O, candyman etc. You guys must be thinking how they reach the end outlet. I must tell you - ITS NOT EASY. Covering millions of outlets everyday/ weekly is a monumental task.Let me give you some insights. There are different levels in the supply chain which make the stock reach the end consumer. They are:1) Factory: Production is done in few factories in India.2) Warehouse service provider: Using all the fundas of Supply Chain Management - mainly operation optimization - or route optimization. So there are number of WSPs at strategic locations. I am not going deep into it.3) Wholesalers/ Distributers: Now every section/ circle will have different distributors. This guy must have the financial capacity to buy the stock from the company without any credit and must have the manpower to sell the stock in a particular market.4) Secondary Wholesal Read more:Brand
Role of People skills in FMCG sector 2006-07-03 08:25:00 Just think of a fresh graduate, 23 years old, entering into FMCG company like ITC, HLL, Nestle etc. What type of responsibilities can you expect? Most of us think that in sales in FMCG, its going to the outlets under the sun, sweat out etc. Thats not wrong !!Its just for a induction period mainly, because any manager should be sensitized with the working of different people in the hierarchy as mentioned in my last post - "Hierarchy in FMCG organization". Its approximate half a year. But once you learn the hard realities, you have to manage the above mentioned people.Lets take a role of a manager at the entry level. He has around 4 circle heads, with each of them having 4 section heads. That means around 20 people. Apart from that you a huge sales force of around 500 people and 100 supervisor (Figures are mentioned just to give you an idea).Dont you require people skills? Read more:sector
Indian Dish Wash Category 2007-09-06 05:57:00 Market Snapshot Rs 400 to 450 crores branded dishwash category As per latest reports, dish care category is estimated to be around Rs. 1200, while the branded dishwash market is roughly 40%The percapita consumption of this category (value terms) in India is hardly Rs 4 while in UK it is Rs 150. There is long way to go for this categoryDishwash bar category is huge: it's more than Rs 300-crore market churning out more than 1.2 lakh tonnes a year and growing at a CAGR of 20 per cent in the last five years. The dishwash powders market, however, is shrinking — it has fallen by 50 per cent from 3 lakh tonnes five years ago (2003 data)As per CII - The total size of the dish wash market, estimated at Rs 4.4 bn has recorded a negative growth of 3 per cent in 2003-04. Over 60 per cent of the market is dominated by bars, while dish wash powders accounts for 32 per cent. The penetration levels are, however, still very low.Product Categories Powder – outdated category. The players in this cat Read more:Category
Indian Ice Cream Market 2007-09-05 08:52:00 Industry Snapshot Market
Size - 800 CroresIce Cream
market is growing at 10 to 12% Ice creams traditionally are a low volume business Players Amul - Market Leader with share of 36%HLL - Kwality Walls - 2nd biggest player Mother Diary Arun - Chennai Based Hatsun Agro Product Metro Daily - Kolkata basedAavin - Tamil Nadu based Recent Happenings 1. HLL's Moo (Nutritional Ice Cream) - targeted at Kids 2. As Mother Dairy has competency cold chain distribution as they have Safal brand ( frozen peas, corn, juices and mixed vegetables) under their portfolio, they have expanded from Delhi to Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this and other brand extensions in the pipeline, Mother Diary expects their turnover by 20% this year over their present size of Rs. 2800 Rs. Cr. 3. Aavin, the cooperative sector milk and dairy products marketer in Tamil Nadu, has launched a low sugar variant of ice creams in the market. According to an official press release, the i
Shoe Polish market in India 2007-12-20 23:29:00 Shoe
polish Cherry Blossom was launched in the UK in 1906 by Chiswick Soap Company, a part of Reckitt & Coleman (now Reckitt Benckiser).Its one of the few brands which have survived with a leadership for 100 years. Kiwi has a history that dates back from 1906 when William Ramsay developed an unusually fine boot polish. He put the Brand name as Kiwi since his wife is a native of Newzealand. The brand grew so big that in 1967, the products were used worldwide under the banner Kiwi nternational. In 1984, it became the part of Sara Lee Corporation. Kiwi was an active player in the shoe care market from 1994 onwards. The brand was owned by Sara Lee corporation. In India
, Sara Leestarted as a joint venture with TTK corporation. In 2002, it became an independent venture. Now SaraLee has tied up with Godrej to market its products.Facts & Figures 1. Penetration of Shoe Polish
is more than 30% in rural India2. Cherry Blosson was 75 crore in 2006, 60-70% market share in Rs 110-120 crore
Chocolate Market in India 2007-12-26 09:42:00 Facts & Figures 1. Chocolate
market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum2. Cadbury is the market leader with 72% market share3. The per capita consumption of chocolate in India
is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom4. Over 70 per cent of the consumption takes place in the urban markets5. Margins in the chocolate industry range between 10 and 20 per cent, depending on the price point at which the product is placed6. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according to one estimate. Another estimate puts the figure at 25000 tonnes7. The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually8. As per Euro Read more:Market
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