PERSENTATION ON FMCG GOODS

GROUP MEMBERS

• AVINASH CHIKNE 06• BHUPENDRA MORE 07• PRATHMESH KULKARNI 29• RAJESH SHINDE 34• SACHIN MANGLORE 39• UTKARSH GHAGARE 48

WHAT IS FMCG....???

• Fast Moving Consumer Goods (FMCG)• Also known as Consumer Packaged Goods

(CPG)

• Definition : “Frequently purchased essential or non-

essential goods” [soft drinks, toiletries, and grocery items]

Kellogg’s History

• 1894- W.K. Kellogg and his brother Dr. John Harvey Kellogg create the world's first toasted cereal flakes at the Battle Creek Sanatorium. And they name it “Granose”, where 'Gran' meant grain and 'Ose' is a scientific suffix that suggested pre-digestion.

• 1906- Finally, the continuous experiments of W.K. Kellogg's in flaking corn lead to the establishment of “ T h e B a tt l e C r e e k To a s t e d C o r n F l a k e C o m p a n y .” And this gets marketed as "Kellogg's Corn Flakes" that goes on to become the world's favourite breakfast.

• 1963- Kellogg begins its operations in Asia at Takasaki, Japan.

• 1986- New corporate headquarters open in Battle Creek, Michigan, USA.

• 1994- Kellogg state of the art cereal plant opens in ‘Taloja’ near Mumbai, India.

Why Kellogg's..???

1. Breakfast = good nutrition for every one2. Breakfast can help you fibre up3. Breakfast fuels kids for school4. Breakfast is figure- friendly5. Breakfast may benefit heart health

INGRIDENTS

How its important to customers..???

Protein Whole Grains0% Cholesterol Vitamins and MineralsCalories PreservativesPotassiumSodiumCarbohydrateDietary fibreSoluble fibreInsoluble fibreSugars

Kellogg’s special “K”......• “Special K” is launched in February 2008 to a tremendous response among women.

•Special K is a low fat breakfast option for women.

•A low-fat breakfast, as part of a healthy, everyday lifestyle with well balanced eating practices and moderate exercise, can help in managing weight.

Market Segmentation

• Geographic segmentations:- (their location, climate, region)

• Demographic/socioeconomic segmentation:- (gender, age, income, occupation, education, household size)

• Psychographic segmentation:- (similar attitudes, values, and lifestyles)

• Behavioural segmentation:- (occasions, degree of loyalty)

• product-related segmentation (relationship to a product)

Targeting • It means particular market segment at which a marketing campaign

is focused.

• In case of Indian market company focused on target customers which having

• Marketers have outlined four basic strategies to satisfy target markets:

I. undifferentiated marketing or mass marketing, II. differentiated marketing, III. concentrated marketing, and IV. micromarketing/ niche marketing.

Market Positioning• An effort to influence consumer perception of a brand or product

relative to the perception of competing brands or products.

• Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind.

• They create image of healthy and testy “Nasta” for all age group of people.

• In September 2006, Kellogg India launches some of its brands in smaller packs priced at Rs 10. These single serve packs gain wide acceptance among Indian consumers for their convenience.

SWOT ANALYSIS

• Strength• High Global Market Share• Strong Brand• Large Product Line

• Weakness• High price [475 gm= Rs. 130]• Unsuitable for Indian Lifestyle• Declining Sales [inspection in 1994]• Bad relation with Supermarkets

SWOT ANLYSIS cont...

• Opportunity• Globalisation• Increasing level of Disposable Income• Advent of Television Advertising

• Threats:• Private Label Brands• Local Competitors [Crunchy Oats ]

5 FORCES MODEL• Michel Porte’s theory of an industry being influenced by 5 forces,

which includes :-– Supplier power

– Barriers to entry

– Buyer power

– Threat of substitutes

– Degree of rivalry

5 FORCES MODEL cont...• Supplier power:- Kellogg’s possesses only power when buying from

suppliers.

• Buyer power:- buyer’s of Kellogg’s are mostly grocery stores and

• supermarkets. They hold power because they set the price.

• Barriers to entry:- PepsiCo and Kraft , general mills.

• Degree of rivalry:- with General Mills

• Substitutes:- fruits, doughnuts, toast etc.

SUMMARY OF PORTER’S 5 FORCES• Supplier power: Medium

• Buyer power:- high

• Substitutes:- high

• Barriers to entry:- medium-high

• Degree of rivalry:- very high

Thank you...