Presentation 1 Marketing

8/8/2019 Presentation 1 Marketing

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PRESENTED BY

BHAWANA JOSHI

BHAKATA RAM RANA

BRIJESH YADAV


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The Indian FMCG sector is the fourth largest in theeconomy and has a market size of US$13.1 billion.

Well-established distribution networks, as well as intensecompetition between the organized and unorganizedsegments are the characteristics of this sector.

FMCG in India has a strong and competitive MNC

presence across the entire value chain.

It has been predicted that the FMCG market will reach toUS$ 33.4 billion in 2015 from US $ billion 11.6 in 2003.


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Conty The middle class and the rural segments of the Indian

population are the most promising market for FMCG,

and give brand makers the opportunity to convertthem to branded products.

y Most of the product categories like jams, toothpaste,skin care, shampoos, etc, in India, have low per capita

consumption as well as low penetration level, but thepotential for growth is huge.


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TOP 10 COMPANIES OF FMCGS. NO. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3 Nestl India

4 GCMMF (AMUL)

5 Dabur India

6 Asian Paints (India)7 Cadbury India

8 Britannia Industries

9 Procter & Gamble Hygiene and HealthCare

10 Marico Industries


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COMPANY PROFILEHeadquarters

Milan Area, Italy

Industry Consumer Goods

Type Privately Held

Company Size 9,000 employees

Founded 1994

Website http://www.perfettivanmel...


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INTRODUCTIONy India's largest confectionery company and the third

Largest in the world.

y

Privately held. Key brands in India include Alpenliebe,Center Fresh, Mentos, Happydent, Chlormint,Marbels, Big Babol, Cofitos, Center Fruit, MentosGum, etc.

y Manufacturing locations in Manesar, Chennai and in

Rudrapury Specialties

y Confectionery - Candies, Gums and Chewies


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Cont.y Perfetti Van Melle India (PVM India) Pvt. Ltd. is a

US$170 million multinational with three factories, 38

depots and four branch offices in India.y The company is known for its innovation in products,

advertisement and trade. Since its inception in India,PVM India has been selling products for Rs.0.50/ Re.

1.0 only (despite inflationary trends and price rises ofother products in the market). Its critical unit pricepoint of US $ 0.01 has remained the same for morethan a decade.


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OURVISIONy We will enhance our world leadership in confectionery

by creating value for people through delightful and

imaginative high-quality products.


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OURMISSIONy We at Perfetti Van Melle: develop, manufacture and

market high-quality and innovative products for our

consumers through efficient use of our resources and in partnership with our customers; create a fulfillingworkplace for our employees built on trust, mutualrespect and appreciation of their diversity; value therole we play in our communities, as a socially andenvironmentally committed organization; generateeconomic value through superior growth and

profitability.


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FACTSy PVM India is one of the top confectionary product

manufacturers, with brands like Alpenlibe, Big Babool

& Center fresh.y Its has sales turnover of Rs.400 crore.

y It has good distribution network.

y The Indian subsidiary has two manufacturing units,

one in Haryana & other in Tamil Nadu.y It has decided to invest Rs.150 crore in Indian

operation.


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Cont.y Perfetti entered the Indian market in 1994.

y The unorganized players rule the market with market

share of 80%.y They provide products at low prices.

y Organized player were Parrys, Nutrine & Cadbury.

y Initially it find difficulty to enter into Indian market.


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Cont.y Its parent company acquired Van Melle, a Spanish

confectionery major.

yIt brought a distribution network of 3 lakh outlets.

y Instead of expanding the distribution network it focuson penetrating into specific area.

y Small retailers ordered Rs.150 to Rs.300 worth of

products per week.


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Cont.y Second problem was that some of its product were

competing for the same space.

yCompany decided to have unique distribution strategy.

y This unique distribution strategy add discontentamong the distributors who were assigned the p2group.


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Cont.y The company did not inc margins for distributors &

retailers to compensate for change in distribution

policy.y It paid a 5% margin to the distribution compared to

the average industry fig of 10%.

y Retailers were paid 15% when the industry standard

was around 30%.


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Cont.y It spend Rs.17 crore, on advertisement.

y It tries to compensated the distributors & retailers with

a promise to create a continuous demand for itsproducts in lieu of low margins.

y By revamping the distribution network Centerfreshoccupy 35% market share in the Rs.30crore chewing

gum market.yAlpenlibe was the market leader in candy category.

yAlpenlibe with a Rs.160 crore sales is commanded amarket share of 80% of overall sales of Rs.200.


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COMPETITORS


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MARSy Mars knows chocolate sales are nothing to snicker at.

y The company makes such worldwide favorites as

M&M's, Snickers, and the Mars bar.y Sales: $30,000.0M

One year growth: 20.0%

y Type: Public

Employees: 283,000Employee growth: 2.5%

On the web: http://www.mars.com


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CADBURYyWith a 10% market share, Cadbury is the world's

second-largest candy maker (after Mars).y Its candy brands include Dairy Milk, Flake, Trebor

and Bassett, and Green & Black's.

y Sales: $7,837.0MOne year growth: (50.5%)Net income: $530.0MIncome growth: (34.1%)

y Type: PrivateEmployees: 70,000

Employee growth: 45.8%


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yWith instant coffee, baby formula, and bottled waterin the mix, Nestl crunches more than just chocolate.

y The world's #1 food company in terms of sales, Nestl

is also the world leader in coffee (Nescafe).y Its most well-known global food brands include

Buitoni, Maggie, Milkmaid, Carnation, and Kit Kat.

y Sales: $104,060.9M

One year growth: 9.0%Net income: $18,037.5MIncome growth: 78.5%

On the web: http://www.nestle.com


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ANS: 1:The distribution strategy of Perfetti is as follow :

y It has divided its 11 brands into two groups P1 & P2. P1group consist of Alpenlibe, Chlormint, Big Babool &

center fresh. The P2 group consisted of Center Shock,Chlormint gum, Mentos, Marbles, Fruit- tella,HappyDent.

y The company distributed these groups to different

distributors based upon the place & the type ofmarket.

y There was a problem that P1 distributors had morefast moving brands as compare to P2 distributors.

Then they focus on promoting of its product.


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ANS: 2:y Perfetti entered into the Indian market.

y During the entrance in the Indian market, Perfetti did

not merge or acquired any company.y It adapt the simple way that how much the goods wills

be demand that much will be supplied.

y The great change occur when it acquired the van melle

y The acquisition brought a distribution network of 3lakh.


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Cont.y To solve this problem and to keep flow of product in

the market, the company had divided their product

into groups.y P 1 group consists of Alpenliebe original, Chlormint,

Big Babol. P2 group consisted of Centershock,Chlormint gum, Mentos, Marbles, Fruit-tella and

Happy Dent.y The company had assigned the two groups to different

distributors means one distributors can not had twogroups together.

y

P1 got double sale than p2.


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Cont.y Distribution costs were same for the both product.

y The Company did not increase margins for

distributors.y The company paid 5 percent margin to the distributors

compared to the average industry figure of 10 percent.

y Retailers were paid 15 percent when the industry

standard was around 30 percent.y These are the basic reason for product allotment and

adapting such strategies.


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Documents

Presentation 1 Marketing