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FMCG

BRAND VISSION AND


STRATEGY
-POOJA BADERIA
-SUKRITI SAROJ
-SHASHANK KUMAR
-VIVEK LAL

FMCG SECTOR
Deals

with FMCG products or Fast Moving Consumer Goods

FMCG

products have a quick turnover and relatively low cost

Indias

FMCG sector is 4th largest Sector in the economy and


contribute to around 3million employment opportunities

FMCG
It

Market is in excess of Rs. 85,000 Crores

includes household care, personal care , food & beverages

FMCG

Industry is characterized by a well established distribution


network, low operating cost, lower per capital consumption and
intense competition between the organized and unorganized
segments

HINDUSTAN UNILEVER
LIMITED

HUL- Hindustan LeverLtd-Indians largest FMCG


sector companyAll

type of household products available.


It has Home &Personal Careproducts, and also
food andWater Purifieravailable with it.
HUL has largest number of brands in most
trusted brands list.
16 of HULs brands featured in AC-Nielson Brand
Equity list of 100 most trusted brands.
HUL sales turnover- 2013 25,810.21 to that of
Rs. 22,116.37 in 2012.

VISION:
Unilever is a unique company, with a proud
history and a bright future. We have ambitious
plans for sustainable growth and an intense
sense of social purpose.
MISSION:
Unilever's mission is to add Vitality to life We
meet everyday needs for nutrition, hygiene,
and personal care with brands that help
people feel good, look good and get more out
of life.

Nestle: Brand Architecture

Nestle is the worlds largest food group, with over


2,000 brands in a multitude of markets, each with
their own individual brand knowledge structure.
Nestles strongest affiliation is within the
confectionary, coffee and cereals market, with
brands such as Shreddies, Cookie Crisp, Kitkat,
Nescafe and Aero.
High Brand Recall: Nestle is cognitively associated
with the confectionary, cereals and coffee markets,
being an instantly recognisable brand.
KitKat, Aerobrands have a symbolic, nostalgic
brand knowledge to consumers

Brand Feelings

The majority of Nestls products are low involvement, low risk


products.

This makes their brand feelings mild, as they do not invoke a


huge reaction from their consumers. Nostalgia is a feeling
created by most confectionary and cereal products.

However, brands such as Nescaf aim to make consumers feel


energised and enlightened.

Within these low involvement markets, it is key to sell the


advantages of choosing their products over a competitors.
Nestls focus on competitive prices, recognisable brands and
innovative product launches spark a reaction from their
consumers.

Brand Values
Integrity

coupled with a strong work ethic


The desire to do quality work
Friendly, open and honest
communication
A spirit of co-operation and openness to
other ideas and opinions
A realistic approach to business
An openness to future trends and new
business opportunities
A passion for our products and brands

VISION:
Nestl's vision is "to be a leading, competitive,
nutrition, health and wellness company
delivering improved shareholder value by being
a preferred corporate citizen, preferred
employer, preferred supplier selling preferred
products.
MISSION:
Mission of 'Good Food, Good Life' is to provide
consumers with the best tasting, most
nutritious choices in a wide range of food and
beverage categories and eating occasions, from
morning to night

BRITANNIA:
Britannia was incorporated in 1918 as
Britannia Biscuits co LTD
inCalcutta.In1924,PeaFreanUKacquired
acontrollingstake,which later passed on
tothe Associated Biscuits International
(ABI)anUK based company. During the
50s and 60s, Britannia expanded
operations to Mumbai, Delhi and Chennai.
In 1989, J M Pillai, a Singapore based NRI
businessman along with the Group Danone
acquired Asian operations of Nabisco.

Vision:
TodominatethefoodandbeveragemarketinIn
diawitha distinctive range of TastyYet
Healthy Britannia brands
Mission
To dominate the food and beverage market in
India through a
profitablerangeofTastyYetHealthyproducts
bymakingevery Indian aBritannia consumer

POSITIONING
TIGER:Positioning is done for
modern mother
LITTLE HEARTS::Positioning is to
be a snacks
GOOD DAY:Positioning is as
everyday biscuits which bring
happiness in everyones lives
MARIE GOLD: Positioning as a tea
time biscuits with proteins

Tiger,launchedin1997,becamethelargestbra

ndinBritannia's portfolio in the very first year


of its launch and continues to be so till today.
EffectiveBrandstrategyadoptedbybritann
ia
tigerbiscuits :
Britanniahas been investing significantly in
higher and better quality of human resources
both at the front end and at the back end
Britannia divided its product portfolio into two
distinct categories: "health and wellness" and
"delightand lifestyle.

ITC COMPANY BACKGROUND


Earlierknown as Imperial Tobacco Company of India Ltd.
Headed by Yogesh Chander Deveshwar.
Mainly operates in the industry like Tobacco, Foods,
Hotels, Stationary and Greeting Cards with the major
products constitutes Cigarettes, packed foods, hotels,
and apparels.
ITC is one of India's foremost private sector companies
with a market capitalization of over US $ 30 bln and a
turnover of US $ 6 billion
ITC is rated among the World's Best Big Companies
ITC
ranks
among
India's
10
Most
Valuable
(company)Brands
While ITC is an outstanding market leader in cigarettes,
Hotels, Paperboards, Packaging and Agri-Export

ITC POSITIONING

TOUCHING
YOUR
EVERY DAY
LIFE

Branding strategy
The

branding strategy of ITC is well thought out


and employs a strategic approach. It does not rely
on acquiring weaker brands to grow inorganically
into new segments, but has created its own range
of personal care and apparel brands.

ITC

has entered different sectors with a


combination of individual brand names and brand
extensions. The branding in the various categories
sees a mix of family brand name and individual
brand name strategy. Some of these examples are
discussed below:

VISION:
Sustain ITC's position as one of India's most
valuable corporations through world class
performance, creating growing value for the
Indian economy and the Company's
stakeholders
MISSION:
To enhance the wealth generating capability
of the enterprise in a globalising
environment, delivering superior and
sustainable stakeholder value

Changes and
Evolution of
Products/Brands.

Evolution of Lifebuoy
Soap.
HUL

introduced Lifebuoy in 1895. with the promise that


that it kills germs and keeps the body healthy.

The

brand took personal hygiene to the next level by


introducing the toilet bar in 1933.

white version of the soap was introduced in 1962 and


contained a light perfume scent.

Lifebuoy

carbolic soap became so popular during 2nd half


of 20th century that any red colored bath soap was
perceived by rural consumers as Lifebuoy.

By

the end of the 20th century, Lifebuoy witnessed


a steady decline in market share.

The

marketing strategies of HUL enabled the brand


to rejuvenate its life cycle by repositioning the brand
with several new products.

Backed

by high advertising budgets, it injected new


products targeting higher segments of Indian
society The new product was launched with a shift in
positioning from a male brand to a family brand
by offering new fragrance, extra lather and a new
Active-B formulation that offered protection against
germs that cause infections in the stomach, eye and
in cuts and bruises.

HUL
Home & Personal
Care

Personal Wash

Lifebuoy
Hand
Soap
wash
Lifebuoy
Total
Protect
Lifebuoy
Lifebuoy
Pure
Lifebuoy
fresh
Lifebuoy
Protect
Lifebuoy
Plus
Lifebuoy

Mild Care
Nature
Active
Vita
Moisture
Clear skin

Body
wash

Hand
Sanitize
r
Lifebuoy
Total
Lifebuoy
Care

Mens
Range
Hydrating
Deodratin
g

Colgate
Colgate

has been ranked as Indias #1


Most Trusted Brand across all categories
for four consecutive years from 2003 to
2007
51% market share in the toothpaste
segment.
48% market share in the toothpowder
market.
30% share in the toothbrush market.
Presently it is facing competition from
no. 2 player HUL. E.g. Pepsodant

COLGATE

ORAL CARE

PROFESSION
AL
ORALCARE

HOME CARE

Product life cycle of Colgate

Sal
es

Introduct
ion

Gro
wth

Matur
ity

Decline

Time

Comparative analysis

ITC vs HUL

HUL-

Largest pure-play
FMCG company in the
country .
Widest portfolio of products
sold via a strong
distribution channel.
It owns and markets some
of the most popular brands
in the country across
various categories,
including soaps,
detergents, shampoos, tea
and face creams.

ITC

not pure play company-deal


mainly in cigarettes and it is its
primary business.
It is diversifying into non-tobacco.
FMCG segments like
foods,personal care, paper
products, hotels and agri-business
to reduce its exposure to
cigarettes.

HUL vs ITC- Targeting


Strategies

HULdividethecustomersintothreetypesofthecustomers

striving,aspiringandaffluentandmaketargetingstrategies
accordingly.Theyareasfollows:

Personal

Care: HUL targets different types of


customerswith different set of bathproducts.
For striving customers-Lifebuoy and Breeze,
For aspiring customers-Hammam and basicLux variants
For affluent- Pears, Dove andsuperiorrangeofLux.

Key strategy- Tostraddle the pyramid and move


consumers up to more
aspirationbrands.GrowsharebygrowingaheadoftheMar
ket

Detergent:In

caseofdetergents For striving customers-Wheel


For aspiringcustomers- Rin
Foraffluentcustomers-SurfExcel
Key Strategy: Work the pyramid Grow profitably ahead of
the market
regainprofitabilitythroughjudiciouspriceincreasesandcosteffec
tivenessprograms.
ToothPaste:
Forstrivingcustomers-smallerpacking
For

aspiringcustomers Pepsodent
Foraffluent-CloseUp,
Key Strategy: Growwithmarketwiththe our brandsCloseUp
onfreshness platformandPepsodentonfamily&healthplatform

Tea:

ForthestrivingcustomersithasTaazatea.

ForaspiringcustomersithasRedLabel.

For affluentcustomeritoffersTajMahalandLiptonYellowLabel

Key strategy: Presence across the pyramid drive uptrading of consumers


Convertloose
teadrinkerstopacketteaconsumers

ITC

Personal Care:

ITC also targets different types of customerswith different set of


bathproducts.

For striving customers- Vivel, Superia

For aspiring customers-Fiama and its variants

For affluent- Essenza di wills

Key strategy-To target more and more customers and bring it in category of
aspiring customers.

Detergent:In caseofdetergents-

For striving customers-Henko, Mr. White, Ghadi

For aspiringcustomers- Tide

Foraffluentcustomers-Wheel, Ariel

Key Strategy:Profitability and large share in the market

HUL v/s ITC- Market ShareUps and Downs


ITC

has overtaken Hindustan Unilever in branded food and


beverages sales giving a shot in the arm to YC Deveshwar's
ambition of making the cigarette maker India's largest FMCG firm.

ITC,

the maker of Sunfeast biscuits and Bingo chips, has posted


branded food sales of over 4,600 crore in 2012-13, a 24% growth
over the previous year, said a person with direct knowledge of the
development.

HUL

-ahead of competitors in the total non-cigarettes FMCG market.


Its total revenues of 25,810 crore during 2012-13 were more than
three times ITC's sales of 6,982 crore from its pure-play FMCG
portfolio consisting of packaged food, personal care, lifestyle retail,
safety matches and agarbatti.

HUL Vs ITC- MARKET CAPITAL

Threats / Risks
Due

to cut throat competition there is severe pressure on


margin for the manufacturers of FMCG products.

The

rural and semi urban population is growing but the


problem faced by the FMCG manufacturers is the logistics.

Some

problems associated with rural markets is acute


dependence on the vagaries of the monsoon, seasonal
consumption linked to harvests, festivals and special
occasions, poor roads and power problem.

Once

the product fails its not easy to revive it back.

When

the company launches a new product its


competitor will also launch the new product in the
same line, within the short span.

Hopping

from one product to another is too high ,


due to very large pool of products. Customer
Loyalty is big issue.

Tolerance

level in the customer satisfaction is


quite low , due to easy availability of other options.

So the biggest challenges most face are revenue related: Holding on to and
growing sales. Most categories are very competitive and sales need to be
defended from competitors and increasingly, retailers' own private brands.
Most FMCG companies have a three pronged approach to revenue growth:
1)

Organically Growing the Brands: Advertising, Promotions, Trade Spend


etc.

2)

Innovation/ New growth: New brand and products (new benefits,


category, line etc.) with supporting communications and promotions.

3)

New Markets: New retailers or new country. Currently, a HUGE


opportunity for most is gaining growth from fast emerging markets. As
result, efficiently utilizing sales and advertising (SGA is almost always
the biggest expenditure) investments to develop brands and drive
revenues is almost always the biggest challenge. It is no surprise that,
as a group, FMCG companies are always among (if not the) biggest
buyers of media and advertising in their markets.

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