NON DURABLE INDUSTRY

PRESENTED BY-ABHAYGUPTAABHISHEK DINESHKHUSHBOOPRIYANKARAKESHSHILPAVIKRANTVIVEK

GUIDED BY-PROF. RAJESH KUMARH.O.D MARKETING

BUSINESS SCHOOL OF DELHI

BUSINESS SCHUOOL OF DELHI

WHAT IS FMCG

• Fast moving consumer goods (FMCG) – or Consumer Packaged Goods (CPG) – are products that are sold quickly and at relatively low cost.

• Absolute profit made on FMCG products is relatively small.

• Sell in large quantities, so the cumulative profit on such products can be large.

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Nondurable goods or soft goods

• They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than 3 years.

• Nondurable goods include fast-moving consumer goods such

as cosmetics and cleaning products, food, fuel, office supplies, packaging and containers, paper and paper products, personal products, plastics, textiles, clothing and footwear.

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CHALLENGES FOR FMCG CONSUMER NON DURABLE

• Price consciousness

• Efficient, low cost manufacturing

• Inefficient distribution network. • Maintaining leadership in category

• Increases in the price of raw materials and other costs.

• Shortening product life cycles

• Loyalty

• Changing buyer behavior and need • Technology

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SWOT ANALYSIS OF NON-DURABLE INDUSTRY

STRENGTHS: • Low operational costs • Presence of established distribution networks in both urban and rural areas. • Presence of well-known brands in FMCG.

• Increase in the income level of the consumer. • Availability of raw material in India & Cheap Labour

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WEAKNESSES:

• Lower scope of investing in technology and achieving economies of scale, especially in small sectors.

• Low exports levels. • Education in rural India.

• Unavailability of storage

• India VS Bharat. 2/16/2011

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OPPORTUNITIES

• Untapped rural market • Rising income levels

• Large domestic market- a population of over one billion.

• Export potential

• High consumer goods spending. • Food-processing industry .

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THREATS

• Removal of import restrictions resulting in replacing of domestic brands.

• Slowdown in rural demand

• Tax and regulatory structure.

• New entrants.

• spurious goods and illegal foreign imports.

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MARKETS AND COMPETITION

• Product differentiation and availability.

• Commodity pricing a key competition.

• Sales and distribution.

• New players.

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ECONOMIC CONTIBUTION

• Present growth rate is Rs. 93,000 cr.• Expected growth rate of 9% (Rs. 143,000 cr.)

by 2011• Last year in the BSE, FMCG Index was

outstanding (52.5% compare to 41% of BSE itself).

• A well-established distribution network.

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CONCLUSION

• Recession resistant but not recession proof.

• Change their buying behaviors.• Negative effect on the premium

brands nondurables. • The profit margins could be squeezed

if the economy doesn’t start bouncing back.

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BUSINESS SCHUOOL OF DELHI

THANK YOU

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