Impact of Globalization on FMCG Market

• KANAHIYA• YASH• MONIL• PRANAV• RUSHABH• ANUJ• MANISH

IntroductionFMCG (Fast Moving Consumer Goods) are

the goods that have low price, short shelf life, used for daily consumption and are sold in high volumes via extensive distribution network.

Its principle constituents are household care, personal care, food and beverages.

Major world players in this market are P&G, Nestle, Pepsi, etc.

Indian FMCG marketOne of the fastest growing markets in

early 1980’s and 1990’s.It generates $44.9 billion in revenue

and GDP share is 2.4%.FMCG is the 4th largest sector in Indian

economy.Provides employment to millions of

people .

Changes In Indian FMCG

Market

BenefitsIncreased competition resulted in improved

quality.More choices for people.Improved capital formation.Increased employment with better

remuneration.Stricter laws regarding expiry dates.Technological up gradation in production and

packaging.Big FMCG players benefited from global

exposure.

DrawbacksSmall companies could not survive

competition.Outflow of money due to increase in

imports.Foreign companies started using India

as a dumping ground for unsold stock.Exploitation of unskilled workers.

PEPSICO

IntroductionPepsiCo Inc. is an American multinational food,

snack and beverage corporation headquartered in Purchase, New York.

PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay Inc.

Indra Krishnamurthy Nooyi is the  Chairperson and Chief Executive Officer of PepsiCo.

PepsiCo is the largest food and beverage business in the world.

PepsiCo Products• Pepsi• Doritos • Quaker Oats• Lays• Cheetos• Tropicana• Kurkure• 7up• Gatorade• Aquafina • Lipton Ice Tea

Product: the company has introduced a range of products in the Indian market like soft drinks, energy drinks, cereal, snacks, etc

Price: Most of PepsiCo’s products are priced based on the market-oriented pricing strategy. The company’s objective in using this strategy is to ensure that its prices are competitive.

Place: PepsiCo uses a global network of retailers and online merchandiser for distributing its products to consumers.

Promotion: PepsiCo uses Advertising, Sales promotion, Direct marketing , Public relations to promote by hiring celebrity endorsers.

PepsiCo in Indian FMCG Market

4th largest FMCG market in India.Invested $900 million in the India. Provided employment to 80000 people directly or

indirectly. PepsiCo has contributed more than $15 millions

and affected lives of more than 3lakhs people through its philanthropic front PepsiCo Foundation.

PepsiCo has partnered with over 40000 farmers for crop purchase.

TATA GroupTata Group was founded in 1868 by Jamshedji

Tata and has been venturing in different sectors since.

It entered the FMCG market in early 1960s through beverages ( Tata Tea) and salt (Tata Salt).

Tata Global Beverages has an annual revenue of $2.24 billion.

Tata Salt commanding sales share of $3.74 billion in Indian market.

Tata produces over 10000 metric tones of coffee.

TATA FMCG PRODUCTS• Tata Tea• Eight O'Clock Coffee• Tetley• Tata Coffee• Himalayan Water• Tata salt • I-Shakti

Product: TATA provides products like salt, tea, coffee, mineral water .

Price: Tata always charges reasonable prices for its product thus survives in the competitive market and eventually captures good amount of market share for all it’s product ranges.

Place: Tata uses umbrella branding strategy. Tata carries out manufacturing, processing and selling of its tea and salt by itself thus ensuring quality and purity of the final product.

Promotion: Tata has promoted its various product under campaigns like Jaago Re (Tata tea), Desh ka Namak (Tata salt), etc.

TATA in FMCG Market Tata 2nd largest manufacturer and distributor of

tea and major producer of coffee.Tata expanded in many foreign countries by

acquiring Tetley. Tata has done various philanthropic activities

around the world. Tata controls 24.7% of national salt market and

24% of Indian Tea market. Tata Salt is sold through over 16.6 lakh retail

outlets reaching 135 million households across the country each month.