Group 5

Analysis of Sales Revenue for a product category

in India

FMCG Sector
Goods are known as the consumer packaged goods that people
buy at regular intervals
Examples are detergents, shampoos, toothpaste, household
accessories etc.
These goods have a high return
FMCG is the fourth largest sector in India
Market share is expected to reach approx. US $74 billion by 2018
Food products are the leading segment in the FMCG sector
accounting for 43% market share followed by personal care 22%
Growing awareness, easier access, changing lifestyles are key
growth drivers
(Ref: http:// http://info.shine.com/industry/fmcg/6.html)

Colgate Palmolive
Colgate Palmolive India is a 51% subsidiary of Colgate Palmolive
Company
It began its operations in India in 1937 and has well established as
a brand in oral and personal care
It has been ranked amongst the top three trusted brands and CPIL
is the countrys leading oral care player
Volume market share for CPIL in 2014 was 56.7% as against 55.9%
in 2013

Sales as a Function of Market

Expense
Year

Y (Sales Revenue)

X (Market Expense)

2008-09

1,17,211

27,172

2009-10

1,34,976

29,942

2010-11

1,54,493

34,931

2011-12

1,87,036

41,210

2012-13

2,21,614

49,007

2013-14

2,52,754

68,866

(Ref: CPIL Annual Reports)

Regression Analysis
300000
250000

f(x) = 3.28x + 40692.66

R = 0.93

200000
Sales Revenue (in Cr.)

150000
100000

Y
Linear (Y)
Predicted Y

50000
0
20000 40000 60000 80000
Market Expense (in Cr.)

R2 is 0.9343, which shows that there is positive high relationship between

sales revenue and marketing expenditure.

Marketing Strategies
CPIL has always invested in marketing to build their market
share
Offering products on consumers needs and communicating
their benefits through free sampling
Colgate Palmolive has high sales revenue due to the brand
recognition
First to innovate and enter into sensitive oral care market
and has the first mover advantage
CPIL has one of the highest advertisement & promotion
(A&P) spends compared to its peers at 12.4% (FY14)
Focusing on ads on regional TV and has an effective
penetration

Hindustan Unilever
Hindustan Unilever Limited is one of the
leading fast-moving consumer goods
companies in India
They build their brands and develop their
products through extensive consumer insight,
relentless innovation, and crystal-clear design
and marketing
Being the largest FMCG company , their little
efforts make a huge difference in the lives of
people

Sales as a Function of
Market Expense
Year

Y (Sales Revenue) in Cr.

X (Market Expense) in Cr.

2008-09*

4310

1292

2009-10

5055

1817

2010-11

5850

2098

2011-12

6846

2023

2012-13

7429

2424

2013-14

8093

2710

Note: 2008-09 all figures were for 15 months in the profit and loss statement, thus I have scaled them down to
12 months.
(Ref: HUL Annual Reports)

Regression Analysis
HUL Analysis
10000
8000
6000
Sales Revenue (Rs. Cr.)

f(x) = 2.79x + 508.74

R = 0.9

4000
2000
0
1200 1400 1600 1800 2000 2200 2400 2600 2800
Marketing Expenditure (Rs. Cr.)

Sales Revenue (Rs. Cr.)

Linear (Sales Revenue (Rs. Cr.))
Predicted Sales Revenue (Rs. Cr.)
Linear (Predicted Sales Revenue (Rs. Cr.))

R2 is 0.897, which shows that there is positive high relationship between

sales revenue and marketing expenditure.

Marketing Strategies
1. Driving Premiumisation

In order to tap the premiumisation opportunity, they launched a

host of innovations this year with distinct consumer propositions
and benefits. Premium beauty brands like Dove drove the agenda
in Hair Care.

The TRESemm proposition of Salon like hair, at home everyday

accelerated it.

Lakm reinvented its Skin Care portfolio with the Pro-stylist

range, offering the signature benefit of salon expertise.

Ponds launched its BB+ cream in India with a 360-degree

campaign that delivered some outstanding results within the first
three months of launch. Digital and new media was leveraged by
all our brands to drive salience and engagement.
(Ref http://www.hul.co.in/Images/HUL-Annual-Report-2014-15_tcm114-428112.pdf)

Marketing Strategies
2. Connecting with consumers

Pepsodent reached out to half a million consumers through the Call The Expert
campaign

It also launches a campaign where kids teach adults kyunki seekhne ki koi umar nahi
hoti.

The AXE Apollo campaign gave winners a once in-a-lifetime opportunity to visit the NASA
space centre.

Luxs tie-up with Chennai Express, through a missed call contest, gave consumers a
chance to go on a romantic train ride with Shah Rukh Khan. This contest received a
record 5.5 million calls in just three weeks.

Lifebuoy partnered with more than 100 restaurants and cafs at the festival, as part of
its ongoing campaign to raise awareness about good handwashing habits. For every food
order placed, the first roti carried the branded message Lifebuoy se haath dhoye
kya?. The words were heat stamped onto the baked roti, without the use of ink, to ensure
it was completely edible.

Clinic Plus has instituted various initiatives to strengthen mother and daughter
relationship, by empowering them. To add more force to their unwavering brand
commitment, Clinic Plus launched its secondary education scholarship programme for girls

Automobile Sector
One of the largest sectors in the India with annual
production of 23.37 million vehicles
Automobile Sector contributes as 22% of GDP
Expanding middle class, a young population and increasing
interest in rural markets are reasons for growth

Maruti Suzuki
India's largest automobile manufacturer
Started in 1981
48% market share as on today
Revenue: Rs. 48,606 Crore
Income: Rs. 2,783 Crore
Headquartered: New Delhi

Sales as a Function of
Market Expense
Year

Y (Sales Revenue)

X (Market Expense)

2008-09

1,17,211

27,172

2009-10

1,34,976

29,942

2010-11

1,54,493

34,931

2011-12

1,87,036

41,210

2012-13

2,21,614

49,007

2013-14

2,52,754

68,866

(Ref: CPIL Annual Reports)

Regression Analysis

R2 is 0.9682, which shows that there is positive high relationship between

sales revenue and marketing expenditure.

Marketing Strategies
Maruti Suzuki's marketing strategies are based on right mix of 4Ps:
1. Product strategy: focusing on the needs of all segments
2. Pricing strategy: products available on almost all price points
3. Place strategy: strong dealer and service network
4. Promotion strategy: print media, radio, TV, internet
So Maruti Suzuki has right marketing strategies which has lead to
strong brand and recognition in the industry.
(Ref: http://www.scribd.com/doc/52392026)

 World's 17th-largest motor vehicle manufacturing company, fourth-largest

truck manufacturer, and second-largest bus manufacturer by volume
Its products include passenger cars, trucks, vans, coaches, buses, construction
equipment and military vehicles
Purchased Jaguar Land Rover from Ford in 2008
Revenue: Rs.67,576 crores
Headquartered: Mumbai

Sales as a Function of Market

Expense
Year

y (Sales Revenue)

x (Marketing Expense)

2007-2008

35,266

1,562

2008-2009

70,397

3,690

2009-2010

91,810

4,539

2010-2011

1,22,128

5,639

2011-2012

1,65,654

7,597

2012-2013

1,88,793

8,767

2013-2014

2,32,834

10,690

(Ref: http://www.tatamotors.com/annual report)

Regression Analysis

Y = 22.163-4982.05
From regression analysis, value of R2is 0.9989 which shows that there is
positive higher relationship between sales revenue and marketing
expenditure.

Marketing Strategies
Tata Motors marketing strategies are based on right mix of 4Ps:
1. Product strategy: Catering to the customers by providing wide range of
products
2. Pricing strategy: Generally affordable acceptable to the public
3. Place strategy: Extensive Distribution Network in Indian as well as Global
Market
4. Promotion strategy: Post sales services and Advertisements

Aviation Sector
1. Indian Aviation sector worlds 9th largest and is all set to become 3rd
largest by 2020
2. Total passenger traffic 169 million in FY 2014
3. Domestic traffic has a CAGR of 11.6% from FY 06-14
4. Experiencing a new era of expansion driven by low cost carrier,
modern airports, FDI in domestic airlines, cutting edge information
technology interventions and introduction of PPP model
5. Aviation sector is expected to see investments worth US$ 12.1 billion
from 2012-2017
6. Major players- Air India,Indigo, Spice Jet, Jet Airways

 Incorporated as air taxi operator on 1st April 1992

Started commercial operation on 5 may 1992
Listed on BSE but 80% shares of owner Mr. Naresh Goyal
Second largest airline in India both in terms of market share after
Indigo

Sales as a Function of Market

Expense
Year

X (Market Expense) (Rs in Lakhs)

Y (Sales Revenue) (Rs in Lakhs)

2007

98,286

8,81,110

2008

1,09,817

11,47,698

2009

98,491

10,35,969

2010

1,26,172

12,73,676

2011

1,36,167

14,81,591

2012

1,35,856

16,85,259

2013

1,44,829

17,30,189

2014

2,04,094

19,57,343

Regression Analysis

R square is 0.8287 which shows that there is highly positive

correlation between marketing expenses and sales revenue

Marketing Strategies
Affiliate marketing program
Removing a row to gain passenger space
Partnership with UTV
Pricing and Fare strategies
Targeting SME
Promotion through Mumbai Indian IPL Team

1. Second largest airline in terms of domestic passenger share

2. Started service in May 2005 with head-office in Gurgaon, Haryana
3. Operates 270 flights daily with both domestic and international cities
using Boeing 737 next generation Bombardier Dash 8 Q400 aircraft

Sales as a Function of Market

Expense
X (Market
Expense) (Rs
in Lakhs)

Y (Sales
Revenue) (Rs in
Lakhs)

2
0
0
70
8

914.09

14,385.79

2
0
0
80
9

1,095.53

18,135.38

Yea
r

Regression Analysis

R2 is 0.7799, which shows that there is positive high relationship

between sales revenue and marketing expenditure.

Marketing Strategies
Price war Fare:
1. Cheaper than train Fares: Taking on railways
2. First to introduce Re. 1 base fare tickets: helped book 3 times more
tickets on that day compared to other days.
3. Tickets at 999, 1999; monsoon sale and celebrating 10 th anniversary
by giving 10% sale.
Promotion:
4. Print ads and TV commercials
5. Social media initiatives
6. Hoardings at railway platforms, shopping malls
7. Campaigns: Flying for everyone, get more when you fly spice jet,
spicy codes.

Consumer Durables Sector

Consumer Durables are divided into three parts

Consumer Durables Sector

Fuelled by rising incomes and growing affordability, the consumer
durables market is expected to expand at a compound annual growth
rate (CAGR) of 14.8 per cent to US$ 12.5 billion in FY 2015 from US$
7.3 billion in FY 2012
Urban markets account for the major share (65 per cent) of total
revenues in the Indian consumer durables sector
From US$ 2.1 billion in FY 2010, the rural market is expected to
grow at a CAGR of 25 per cent to touch US$ 6.4 billion in FY 2017

Whirlpool
It forayed into the market under a joint venture (JV) with TVS group and established
the first Whirlpool manufacturing facility in Pondicherry for washing machine category.
In 1995 Whirlpool acquired Kelvinator India Ltd and marked an entry into the
refrigerator market as well
The same year the company also saw acquisition of major shares in TVS JV and later in
1996, Kelvinator and TVS acquisitions were merged to create, Whirlpool of India Ltd
The company owns three state-of-the-art manufacturing facilities at

Faridabad, Pondicherry and Pune

Refrigerator rank 3rd market share- 17%
Washing machine rank 3rd market share- 15%
Microwave rank 4th market share- 9%
Ac rank 5th market share- 5%

Sales as a Function of Market Expense

In-Rs Crore
Refrigerator
Year

Y(Sales Revenue)

X(Market Expenses)

2014

258711

5092

2013

211027

3328

2012

209658

3501

2011

183861

3407

2010

190354

4597
Ref- (whirlpool annual reports)

Sales as a Function of Market

Expense
In-Rs Crore
Washing Machine
Year

Y(Sales Expenses)

X(Market Expenses)

2014

84561

1664

2013

71841

1133

2012

72368

1208

2011

70437

1305

2010

65916

1592
Ref- Annual Reports Whirlpool

Regression Analysis

Marketing Strategies
In the process of establishing such an emotional connects with the
customer, Whirlpools promotions have also generated memorable
campaigns.
Foremost among these is the Whirlpool, Whirlpool audio refrain, which
is the hallmark of all audio-visual communications for this brand
Whirlpool has also created many memorable taglines for specific
products, such as Ice, ice baby for refrigerators, and Mummy ka magic
chalega kya? for washing machines
Increasing brand visibility with mainstream media advertising, in-shop
merchandising, out-of-home visibility devices, and enhanced digital
presence online and through social networking platforms

Marketing Strategies
E-Commerce - As part of the aggressive digital strategy, company launched
W-Store (E-commerce site) for online purchase of your Company products
from anywhere at their convenience. The initial response to this new
initiative has been very encouraging. The Whirlpool website has also been
revamped and a mobile version of the site has been developed so that the
same environment and experience can be created for customers interacting
with the brand on their mobile phone
Enhancing the e-Commerce initiative by partnering with Flipkart to establish
a presence in the fast growing e-tail space
Launch of Project Akraman 2.0 ensured improved distribution network and
better product mix. It extended the depth and width of the distribution
across towns by ensuring availability of extensive range of products across
stores, thereby ensuring better margins to the trade