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FMCG Sector
Group Members
• Vivek
• Varun
• Saurabh
• Ayushi
• Ashima
• Neha
FMCG Sector
• FMCG are products that have a quick shelf turnover, at relatively
low cost and don't require a lot of thought, time and financial
investment to purchase
• Market Analysis
– Size ( Past , Present and Future)
– Growth ( Expected Trends )
– Profitability
– Risks / Threats
– Distribution Channels
Market Analysis
SIZE Growth
Risk Profit
FMCG Sector Size
• The Indian FMCG sector is an important contributor to the
country's GDP.
• Over the last one decade the market is growing at the rate
of 18.7 %.
• Pushing (Up)
– FMCG sector depends upon bulk sales only. High the
volume of the sales , higher is the profit.
Profitability of the sector
• Balancing (Up/Down)
– Small packaging typically known as ‘Sachet’ - Is a two
edged sword. Helps in trapping the bottom segment of
the Customer Pyramid .
– But it decreases the profit margin per unit sale.
– In the long run increases the volume of sales.
– Thus must be used very wisely.
Threats / Risks
• Due to cut throat competition there is severe pressure on
margin for the manufacturers of FMCG products.
SIZE Growth
Distribution
Channels
Risk Profit
Distribution channel
• Existing distribution channels
– Can be described by how direct they are to the
customer in other words how many channels it take the
goods to reach customer.