Fmcg Assignement 1

7/28/2019 Fmcg Assignement 1

1/15

FMCG Sector

Assignment

Submitted by

Rishab Mehta

Enrollment A1802011421


2/15

Table of Content

S no. Title Page

1 the overview of FMCG sector 3

2 Global leader from FMCG sector- HUL

Part A

Part B

Part C

Part D

Part E

5

7

10

13

15

15


3/15

The overview of FMCG sector stating the sector outlook in India and in

the global world.

Answer 1

Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than

groceries/pulses) that one needs to buy at regular intervals. These are items which are

used daily, and so have a quick rate of consumption, and a high return. FMCG can

broadly be categorized into three segments which are:

1. Household items as soaps, detergents, household accessories, etc,

2. Personal care items as shampoos, toothpaste, shaving products, etc and finally

3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.

Global leaders in the FMCG segment are Nestl, ITC, Hindustan Unilever Limited,

Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General

Mills, Pepsi, Gillette etc.

Overview of FMCG sector stating the sector outlook in India and in the global

world.

The burgeoning middle class Indian population, as well as the rural sector, presents a

huge potential for this sector. The FMCG sector in India is at present, the fourth largest

sector with a total market size in excess of USD 13 billion as of 2012. This sector is

expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100

billion by the year 2025.

This sector is characterized by strong MNC presence and a well established distribution

network. In India the easy availability of raw materials as well as cheap labour makes it

an ideal destination for this sector. There is also intense competition between the

organized and unorganized segments and the fight to keep operational costs low.


4/15

According to a study by the McKinsey Global Institute (MGI), 'Bird of Gold': The Rise

of India's Consumer Market, Indian incomes are likely to grow three-fold over the next

two decades and India will become the world's fifth largest consumer market by 2025,

moving up from its 2007 position as the world's 12th largest consumer market.

India ranks second in the Nielsen Global Consumer Confidence survey released on

January 7, 2010an indication that recovery from the economic downturn is faster in

India with consumers more willing to spend. The survey showed that in addition to the

emerging markets of Indonesia and India, eight of the top ten most confident markets in

The fourth quarter of 2009 came from the Asia Pacific region.


5/15

Answer 2

Global leader from FMCG sector- HUL

Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, isINDIAs largest consumer products company and was formed in 1933 as Lever Brothers

India Limited. It is currently headquartered in Mumbai, India and its 41,000 employees

are headed by Harish Manwani, the non-executive chairman of the board. HUL is the

market leader in Indian products such as tea, soaps, detergents, as its products have

become daily household name in India. The Anglo-Dutch company Unilever owns a

majority stake in Hindustan Unilever Limited.

The company was renamed in late June 2007 as "Hindustan Unilever Limited".

Some of its brands include Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril,

Rexona, Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru

Coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel

laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and

creams, Vaseline lotions, Fair & Lovely creams, Lakme beauty products, Clinic Plus,

Clinic All Clear, Sunsilk and Dove shampoos, Vim dish wash, Ala bleach and Domex

disinfectant,Rexona,Modern Bread and Axe deospray.HUL has produced many business

leaders for corporate India. It is referred to as a CEO Factory' in the Indian press for the

same reasons. Its leadership building potential was recognized when it was ranked 4th in

the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead

of HUL in the ability to produce leaders with such regularity

Today, HUL is one of Indias largest exporters of branded Fast Moving Consumer

Goods. It has been recognized by the Government of India as a Golden Super Star

Trading House.

Over time HUL has developed into a viable & competitive sourcing base for Unilever

worldwide in Home and Personal Care & Foods & Beverages category of products. HUL

is also a global marketing arm for select licensed Unilever brands and also works on

building categories with core country advantage such as branded basmati rice.


6/15

HUL Exports offers high level of service with flexibility and responsiveness thorough out

the supply chain. It has a dedicated organization structure to support this endeavor and

this has helped in growth of these businesses in particular. Intrinsic cost competitiveness

in the end to end Supply chain with appropriate technology and competitive capital

investment operations while delivering best in class quality enables HUL to position itself

as a key sourcing hub for Unilever and also become a preferred partner for Global

customers in categories we operate.

HULs key focus in the exports business is on two broad categories. It is a sourcing base

for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for

supplies to other Unilever companies. It also focuses on becoming a preferred supplier to

both non-Unilever and Unilever clients in three categories in which India, as a country,

has competitive advantage Branded Rice, Marine Products and Castor and its

Derivatives. HUL enjoys international recognition within Unilever and outside for its

quality, reliability and speed of customer service.

HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East,

Africa, Australia, and North America etc.

HULs products touches two out of three Indian everyday

Reach 80% Households

Direct Coverage of 1mln outlets

2000 Suppliers and Associates

71 Manufacturing locations

15000 Employees

1100 managers


7/15

Part A

Complete product mix of HUL

personal

wash laundry

skin

care hair care oral care deodorants

colour

cosmetictea Coffee foods ice crea

Lux

surf

excel

fair &

lovely

sunsilk

naturals pepsodent axe lakmebrook

bond Bru kissan kwality

lifebouy rin ponds clinic plus close up rexonalipton

knorr

anapurn

liril wheel

hamam

breeze

dove

Pears

rexona

Home and personal care foods


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PRODUCT LINE

A) HOME AND PERSONAL CARE:

1) Personal wash

Lux Breeze

Lifebuoy Dove

Liril Pears

Hamam Rexona

2) Laundry 3) Skin Care

Surf Excel Fair and lovely

Rin Ponds

Wheel Aviance

4) Hair care 5) Oral care

Sunsilk naturals Pepsodent

Clinic Close up

6) Deodorants 7) Colour Cosmetics

Axe Lakme

Rexona

8) Ayurvedic Personal and health care: Ayush


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9) FOODS

a) Tea b) Coffee c) Foods d) Ice cream

Brooke Bond Brooke Bond ,Bru Kissan Kwality walls

Lipton Knor

Annapurna

10) WATER PURIFIER

Pureit


10/15

Part B

Various ways to improve productivity Of HUL

Improving productivity is at the top of nearly every manufacturer's list but making it happen canbe a challenge. There are some great methods that are proven to significantly improve

productivity. One of the best is to measure, analyze and set goals for improvement. Only then

can you work toward a logical plan for improving productivity. Then do it again and again until

the process is where it needs to be. Here are a few great methods for improving your

productivity:

Increase Productivity with Real-Time Goals

Monitor Small Stops and Reduced Speed Operation

Tackling the Six Big Losses

Reduce Changeover Time through Training and Awareness

STRATEGIES TO IMPROVE PRODUCTIVITY

Increase Productivity with Real-Time Goals

PROBLEM

Plant floor employees are informed of production goals when it is too late to act.

STRATEGY

Deliver real-time production goal information to the plant floor. Display a shift or job basedgoal. Additionally the target can be displayed in real-time as a count based on the product takt

time. Actual count can also be shown as well as a calculated production efficiency and much

more.


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SOLUTION

People respond to information that tells them where they are and where they should be in relation

to production goals. Show the goal count, an actual count, a percent efficiency, pieces to goal,

the estimated time to goal, a piece or time variance from goal, OEE Performance and more in

any combination. Both the 87 Series 4" to 12" and XL Series Production Monitor displays are

great choices for delivering real-time production goals to the plant floor.

Monitor Small Stops and Reduced Speed Operation

PROBLEM

Major downtime events appear to be under control however the process continues to miss target

production.

STRATEGY

Get a handle on small stops and reduced speed operation (OEE Performance).

SOLUTION

Downtime is normally easy to identify because the equipment or process is simply not running,

small stops and reduced speed operation, however is much more difficult to detect. What's worse

is that these events, if logged, are often incorrectly logged making it difficult to identify and

correct the problem. OEE Performance is a great tool for monitoring manufacturing

performance.

XL Series Production Monitor displays are capable of showing the number of small stops,

reduced speed cycles, the time for each and OEE Performance. The results are often eye-opening

when people find the slow leak in their production efficiency.


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Tackling the Six Big Losses

PROBLEM

We are under constant pressure to make more with less.

STRATEGY

Tackle the Six Big Losses!

SOLUTION

The Six Big Losses represent the most common causes of efficiency loss in manufacturing.

Knowing what they are and how to attack them is the key to swift and lasting improvement on

your plant floor.

XL Series Production Monitor displays expose real-time losses such as Down Time Loss

(equipment failure, setup/changeover, etc.), Speed Loss (small stops, rough running, etc.) and

Quality Loss (scrap, rework, etc) to enable teams to identify and correct problems when they

occur.

Reduce Changeover Time Through Training and Awareness

PROBLEM

Changeover time is hurting production efficiency.

STRATEGY

Reduce changeover time significantly through training and awareness. Display the changeover

time for all to see. Additionally, by showing the remaining pieces to goal or estimated time to job

completion, operators can determine when to initiate internal set-up procedures. Internal set-up

or those items which can be handled while running, is one of the greatest tools for minimizing

changeover time.


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SOLUTION

Show time to completion by displaying either a pieces to goal count or an estimated time of

completion based on the current run speed. Also display the changeover in-process time for all to

see. Set goals to reduce the time required and use color-coded data to show the allowed

changeover time in green and time overage in red.

The 87 Series 4" to 12" and XL Series Production Monitor displays are great choices for

reducing changeover time.

Part c

Marketing activities employed by the top players of this segment are as follow

ITC Promotional activities

A particular budget is allocated for the promotion of the products, the local promotion scheme is

decided by the Area Sales Manager, it give its suggestion to the District office and that is

forwarded to the Head Quarter in Kolkata.

P&G targets "high levels of marketing activity"

The company is focusing on innovation and heightening its advertising expenditure, as it seeks to

drive growth at a time when many consumers are displaying low levels of confidence.


14/15

Marketing strategies for HUL are as follow

HUL FOR URBAN INDIA

Adopted Total Productive Maintenance(TPM) to meet zero error, zero loss.

Focuses on short supply chain for distribution.

To meet the every needs of people everywhere.

Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance,

Ayush.

Build segments & market for the future where Unilever has strong expertise

FOR RURAL INDIA

HUL should start some projects for rural India like it once did in 1997.

Should Appoint some Sub-stockiest that directly covers about 50,000 villages & 250

million customers.

Providing education on health and hygiene

Women empowerment

Water management

Rehabilitation of special or underprivileged children

Care for the destitute and HIV-positive

Rural development.

Plays active role in natural calamities


15/15

Part D

Increasing rate of inflation is leading to higher cost of raw materials but at the same time

Rise in disposable incomes is resulting in premium brands having faster growth and deeper

penetration

Because of this inflation the purchasing or spending power of consumer is also increasing

as now they are able to purchase premium brands

Good amount of inflation brings growth to the economy

Lets take an example

Now because of FDI in retail we are going to see that wallmart is going to invest in India,

and because of this investment our economy will get lots of employment opportunities.

Thus because of these investments the inflation will also go up which will result in high

cost of raw material but these opportunities will also rise the power spending of consumer

because now they are employed also and have an ability to spend.

Part E

Major players of the sector will absorb the effect of packaging norms by the following

manner

Will give only large packs and will stop the use of small packages

companies may increase grammage

Documents

Fmcg Assignement 1