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    Market Overview

    The Indian FMCG sector, with a market size of US$ 25 billion (2007 08 retailsales), constitutes 2.15 per cent of Indias GDP.

    The industry is poised to grow between 10 to 12 per cent annually.

    A well-established distribution network spread across six million retail outlets(including two million in 5,160 towns and four million in 627,000 villages) lowpenetration levels, low operating costs and intense competition between theorganized and unorganized segments are key characteristics of this sector.

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    Market Analysis

    Organized retail changing industry dynamics

    The Indian retail market size is estimated at US$ 350.2 billion and is projectedto grow at 13 per cent per annum to reach US$ 590 billion by 2011 12.

    The current share of organized retail is estimated to be 4 to 5 per cent and isexpected to increase by 14 to18 per cent by 2015.

    Organized retail has created new channels for FMCG players through diverse

    retail formats such as departmental stores, hypermarkets, supermarkets andspecialty stores.

    With organized retailing emerging in a major way across the country, therevenues of FMCG companies are expected to surge.

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    Rural market the new growth frontier

    Rural India accounts for close to one-third of the total consumption pie.Robust consumption in the rural economy is one of the key drivers of Indias sustained growth.

    FMCG companies are devising exclusive rural marketing strategies to tap therural consumer base.

    A large number of FMCG companies derive a significant proportion of theiroverall sales from outside the top few 100 towns/cities, which reflects the

    growing economic importance of India's rural consumer base .

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    FMCG Vs INDUSTRIAL MARKETING

    FMCG INDUSTRIAL MARKETING

    PRODUCT DRIVEN RELATIONSHIP DRIVEN

    MAXIMIZE VALUE OF TRANSACTION MAXIMIZE VALUE OF RELATION

    LARGE TARGET MARKET SMALL FOCUSED MARKET

    SINGLE STEP BUYING PROCESSSHORTER SALES CYCLE

    MULTIPLE BUYING PROCESS LARGERSALES CYCLE

    EMOTIONAL BUYING DECISION BASEDON STATUS, DESIRE OR PRICE

    RATIONAL BUYING DECISION BASED ONBUSINESS VALUE

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    Market Segmentation

    Food products is the largest consumption category in India, accounting fornearly 21 per cent of the countrys GDP.

    Some of the leading players in this segment include Britannia Industries Ltd,

    Dabur India Ltd, GlaxoSmithKline Consumer Healthcare India Ltd and GujaratCooperative Milk Marketing Federation (GCMMF).

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    Export Potential

    India is recognized a cost-effective quality manufacturing base in the worldmarket.

    As Indian companies are going global, they are focussing more on overseas

    markets such as the US, the UK, the UAE, Sri Lanka, Bangladesh, Thailand,Afghanistan, South Africa and Mauritius either through exports or theestablishment of their own foreign subsidiaries.

    MNCs in India have also started supporting their global supply chainrequirements by serving as cost-effective sourcing bases.

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    MARKET SEGMENTATION

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    Market Strategy Direct on-screen marketing (e.g harpic)

    Power brand strategy (e.g lifebuoy soap)

    Power brand extension (e.g lifebuoy talcum powder)

    Exit from non power brand

    Using INDIA as a brand

    Small size packet strategy

    Pricing strategy

    Small value, size increase

    Small value, size decrease

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    Latest scenario in FMCG market

    Increasing per year with the growth rate of 9%.

    Price of raw material is decreasing

    Cost of machinery required for consumer goods are less than durable goods.

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    Economic contributionEmployment Direct employment is estimated at approximately 6% of turnover, i.e. US$ 1.5

    billion4 (Rs. 7,000 crores) approximately 12-13 million retail stores in India, out of which 9 million are FMCG

    kirana stores. Thus the sector is responsible for the livelihood of almost 13 millionpeople

    Fiscal contribution Cascading Multiple Taxes by the FMCG sector(Import duty, service tax, CST, income

    tax). 30% revenue of the sector goes into both direct and indirect taxes. estimatedsize of $25 billion (Rs. 120,000 crores), that would constitute a contribution to theexchequer of approximately US$ 6.5 billion (Rs. 31,000 crores).

    Social contribution create employment for people with lower educational qualifications. FMCG firms

    have also undertaken some specific projects to integrate with upcountry and ruralareas for both inputs and for distribution as well as to fulfil CSR.

    Some examples: ITC echoupal and Choupal Sagar:- sells both agricultural inputs and daily needs

    products. . ITCs rural e-network enables farmer connectivity and provides an easyway for farmers to get better profitability and control through access to timely

    information.

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    HULs Shakti Amma network:- HUL pioneered a rural entrepreneurship modelamongst women who became HUL distributors.

    Dabur India regularly conducts rural and adult education programs and providestraining in rural areas to facilitate employability.

    Contribution to Other Sectors

    1.Agriculture - Its intake of agricultural output as raw material is estimated toconstitute roughly 9% of total turnover for the sector. That would put its totalvalue to agriculture at US$ 2.2 billion7 (Rs. 10,500crores).

    2. Third Party Logistics - The third-party logistics market for the FMCG sector in Indiahas been growing at a CAGR of 12% since 2002, and is estimated to be worth US$63 million8 (Rs. 300 crores). It is anticipated to double by 2011, and be worth overUS$ 146 million (Rs. 700 crores) by 2012, a growth of 211% from 2002.

    3. Ancillary Industries:-a. Manufacturing Almost 9-10% of total sectors production is outsourced to

    contract manufacturing units taking the total size to $ 1.7 2 billion (Rs. 8,000 Rs. 9,500 crores), approximately.

    b. Distribution i. ITC services 1.1 million outlets at an average frequency of three days down to

    villages with population of 2,000, and has 1,000 wholesale dealers.ii. Marico reaches 1.6 mln outlets, through almost 900 direct distributors, 100+ super

    distributors, catering to almost 2,500 small stockists and 4,600 van markets.

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    4. Packaging Industry - The packaging industry for the FMCG sector alone is worthUS$ 2.9 billion10 (Rs. 14,000 crores), and is expected to grow faster due to thegrowth of private label FMCG products.

    5. Media Industry - The media industry has a lot to gain from the FMCG sector.Around 40% of media industry earnings from advertising (US$ 5 billion) areestimated to come from the FMCG sector, a contribution of US$ 2 billion (Rs.9,500 crores).

    6. Tourism Industry - Penetration of familiar brands across the length and breadthof the country provides comfort and reassurance of quality to both Domestic

    and International tourists.

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    STRUCTURAL ANALYSIS OF FMCG INDUSTRY The products often cater to 3 very distinct aspects - necessity, comfort & luxury.

    They meet the demands of the entire cross section of population. Price andincome elasticity of demand varies across products and consumers.

    Individual items are of small value (small SKU's) although all FMCG products puttogether account for a significant part of the consumer's budget.

    The consumer spends little time on the purchase decision. He seldom ever looksat the technical specifications. Brand loyalties or recommendations of reliableretailer/ dealer drive purchase decisions.

    Limited inventory of these products (many of which are perishable) are kept by

    consumer and prefers to purchase them frequently, as and when required.

    Brand switching is often induced by heavy advertisement ,recommendation of theretailer or word of mouth.

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    Political &legal:

    Political stability.

    Tax exemption in sales and excise duty for small scale industries.

    Transportation and infrastructure development in rural areas helps in

    distribution network.

    Restrictions in import policies.

    Help for agricultural sector

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    Economical:

    The GDP rate of Indian economy is increasing every year. It is expected in future itwould be more better in comparison with other countries.

    Inflation rate is increasing across the world and India is also no exception. Thegovernment and Reserve Bank of India both are trying to control the inflation ratewith the help of different measures.

    Increase in disposable income has taken place due to higher GDP rate. The percapital income is increasing so the customers are having more income to spent forvarious reasons.

    Indian FMCG sector recorded 16% sales growth in last fiscal year and it is expected

    it would further improve in the forthcoming years.

    The FMCG sector is a 4th largest sector of Indian economy with market size of morethan 60,000 crore. The Indian Territory is very large and number of customers isalso very high.

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    Social:

    Demographical analysis.

    The Indian culture, social & life styles are changing drastically.

    The total population is nearly 115 crores and population includes rich, poor,

    middle class, male, female, located in rural, urban and sub urban areas.

    Increase level of education etc.

    Increase awareness among rural market .

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    Technology:

    Technology has been simplified and available in the industry. Wheretechnology is not available then it is brought from foreign countries to meetFMCG sector requirements.

    Foreign players help in high technological development. With research anddevelopment facilities the new technologies are developed alone or with thehelp of foreign players.

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    SWOT ANALYSIS OF FMCG SECTOR

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    Strengths-

    Low operational costs.

    Presence of established distribution networks in both urban and rural areas.

    Presence of well-known brands in FMCG sector.

    Favourable governmental Policy :Indian Government has passed the policies aimed at attaining internationalcompetitiveness through lifting of the quantitative restrictions, reducing exciseduties, 100 per cent export oriented units can be set up by government approvaland use of foreign brand names etc.

    Foreign Direct Investment (FDI

    ):Automatic investment approval up to 100 per cent foreign equity or 100 per centfor NRI and Overseas Corporate Bodies investment is allowed for most of the foodprocessing sector except malted food, alcoholic beverages and those reserved forsmall scale industries (SSI).

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    Opportunities-

    Untapped rural market, changing life style.

    Rising income levels, i.e. increase in purchasing power of consumers.

    Large domestic market with more population of median age 25.

    High consumer goods spending.

    India is the largest milk producer in the world, yet only around 15 per cent of themilk is processed. The organized liquid milk business is in its infancy and also haslarge long-term growth potential. Even investment opportunities exist in value-added products like desserts, puddings etc.

    Only about 10-12 per cent of output is processed and consumed in packaged form,thus highlighting the huge potential.

    India is under penetrated in many FMCG categories as shown in below diagram.With rise in per capita incomes and awareness, the growth potential is huge.

    Lower price and smaller packs are also likely to drive potential up trading for majorFMCG products

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    Weakness-

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

    Low exports levels

    "Me-too products, which illegally mimic the labels of the established brands.

    These products narrow the scope of FMCG products in rural and semi-urbanmarket.

    Threats-

    Removal of import restrictions resulting in replacing of domestic brands

    Tax and regulatory structure

    Rural demand is cyclical in nature and also depends upon monsoon .

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    PROBLEM OF COUNTERFEITING AND PIRACY IN INDIA According to a study conducted by a leading research agency AC Nielson, FMCGindustry which ends up loses approximately 15% of its revenue around Rs 2,500crore and Rs 900 crore for the government annually due to counterfeits and pass-

    off products. The fake products are affecting the sales of leading brands by almost20-30 per cent. study also suggest 10 per cent reduction in the piracy rate has the potential tocreate 50,000 additional jobs in India, According to FICCI, there are several laws inIndia to deal with the issue but the problem arises when these laws are notimplemented properly. India continues to remain on the priority watch list of the US TradeRepresentative, meaning that India is perceived as not providing adequateintellectual property rights protection or enforcement of laws protecting IPR. The FICCI has recently taken up a joint publicity campaign with the Ministry of Consumer Affairs under the Jago Grahak Jago and Bhagidari with the Delhi Govt.

    To popularise the issue among the students 5th Hum Kishore Festival with thetheme Fight Smuggling and Counterfeiting was organised in more than 100schools of Delhi and the National Capital Region. FICCI CASCADE is also organising an Industry-Government seminar on June 8,which is being observed as the Anti -Counterfeiting Day.

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    About FICCI-NIAPC The FICCI-National Initiative Against Piracy and Counterfeiting (FICCI-NIAPC) wassetup in the year 2003 to create awareness about piracy and counterfeiting and totake initiatives to fight with them.

    They also try to enforcement system in association with professional bodies, traininginstitutions and concerned departments of the Government.

    Advocacy Functions The National Initiative has four specific advocacy functions :Policy and legislative issues, Judicial issues, Enforcement issues, Awareness Campaign.

    FICCI NIAPC has done mass awareness campaigns against Piracy and Counterfeitingby showing Anti Piracy Films Converted in Celluloid Format, in Multiplexes Involve theJudiciary in a participative fashion and make them aware of the seriousness of the

    issue. FICCI-NIAPC has organized . FICCI in its drive against Piracy and Counterfeiting celebrated Intellectual Property Week starting April 20, 2007 culminating into the World IP day on April 26, 2007. ANational Seminar- Combating Counterfeiting and Piracy April 26, 2007 at New Delhiwas organized to mark the day. FICCI- NIAPC will soon be organising capacity building

    programmes for the Police in partnership with the USPTO.

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    Per-capita

    demand

    Marketaccess

    Difficult

    Easy

    Low High

    Cell 2, Emergingmarket

    Cell 1, Urban and

    semi-urban market

    Cell 3, Bottom of thepyramid (BOP)

    market

    Cell 4, Oasis market

    consumer markets in India

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    Urban / semi-urban

    customer

    Urbancustomer

    semi-urban/rural

    customer

    ruralcustomer

    Retail stockistKirana store

    Semi urban retailer

    Ruralwholesaler

    Carrying and forwardingagents in a certain state

    Manufacturingfacilities

    Redistributionstockist

    Modern retailer

    E-commerce

    Rural retailer

    Distributionchannel of FMCGproduct

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    1.Understandcustomer

    2.Analyzemarket

    3.Analyzecompetition

    4.Researchdistribution

    5.Definemarketing

    mix

    6.Financialanalysis

    7.Review andrevise

    Marketingstrategyprocess

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    Marketing activity

    Traditionally sales Promotions have been used by marketer to increase sales in

    the short term.

    Fast salesboost

    Encouragetrial

    Encouragerepeat

    purchase

    Simulatepurchase of larger stocks

    Gaindistribution

    and shelf space

    OBJECTIVES OF SALES PROMOTION

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    Major Mergers and Acquisitions

    i. Vijay Mallya's United Breweries Group (through Group entities Mc Dowell &

    Co,Phipson Distillery, United Spirits and United Breweries Holdings) acquired acontrolling stake in the Jumbo Group's Shaw Wallace & Company for a totaldeal value of Rs 16.2 billion ($371.6 million).

    ii. The P&G-Gillette merger - With the acquisition of Gillette's operations, P&Gbecomes the second largest consumer goods company in the world.

    iii. Rin & Surf excel bar- HUL made a unique marketing step in 2006. Rin Supremebecame Surf Excel Bar. This was done to counter the launch of Tide Bar. RinSupremes USP was whiteness platform and Surf Excels USP was stain removal.The merger took advantage of both.

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    mergers and acquisitionsTarget name(segment) Acquirer name (segment) Merger/Acquisition

    CC Health Care ProductsPvt Ltd (Cosmetics andtoiletries)

    Colgate-Palmolive India Ltd (Cosmetics and toiletries)

    Acquisition

    Vietnam Spice Unit (Foodand beverages)

    Bafna Enterprises (Food andbeverages)

    Acquisition

    HobiKozmetik, Turkey(personal care products)

    DaburIndia (Personal care) Acquisition

    Argencos, Argentina (Haircare products)

    Godrej Consumer Product Ltd(Home and personal care)

    Acquisition

    Tura, Nigeria (Soap and

    cleaning products )

    GCPL (Home and personal

    care)

    Acquisition

    Tern Distilleries Pvt Ltd(beverages wine/spirits)

    United Spirits Ltd(beverages) Acquisition

    Vale Do Ivai SA Acucar EAlcool(sugar and ethanol)

    Shree Renuka Sugars Ltd (food) Acquisition

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    Greenol LaboratoriesPvtLtd (tea)

    Asian Tea & Exports Ltd(food tea)

    Acquisition

    Garden Namkeens PvtLtd(food misc.) Cavinkare Pvt Ltd(food) Acquisition

    Godrej Hygiene CarePvtLtd (home care)

    Godrej ConsumerProducts Ltd(home care)

    Merger

    Britannia New ZealandFoods PvtLtd (jointventure partner FonterraCooperative GroupLtd)(food)

    Britannia Industries Ltd(food)

    Acquisition

    Lotte India CorpLtd(food)

    Lotte Confectionery CoLtd, South Korea (food)

    Acquisition

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    Impact of Modern Retail on FMCG Sector

    Modern retail can have many benefits for different product categories

    Including greater penetration wider product range the ability to display the range Direct interaction with the consumer and with the product

    Investments in Modern RetailInvestment plans of Top 10 leading players. US$ 30 billion (Rs 144,000 crores) from 2008 2013. their combined turnover should top US$ 100 billion (Rs. 480,000 crores) by 2013-

    14. current players involve a large play within FMCG items, as these are critical items

    for any household

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    Increasing FMCG share in Modern Retail

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    FDI in retail: Impact on Indian FMCG players

    a) Advantage Global FMCG majors.

    b) FMCG sector to witness a lot of M&A Activity.c) Regional players to tweak biz model turn suppliers.d) General trade here to stay.e) Power to shift from manufacturer to retailer.

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    TOP TEN FMCG COMPANIES

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    1.Hindustan Unilever Ltd.

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    It is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority

    stake in HUL. HUL was formed in 1933. Its products include foods, beverages, cleaning agents and personal care

    products. Revenue22,116 crore (US$4.03 billion)(2011-2012) Net income2,691 crore (US$489.76 million)(2011-2012) Employees-16,500 (2011) Hindustan Unilever's distribution covers over 2 million retail outlets across India

    directly and its products are available in over 6.4 million outlets in the country.

    As per Nielsen market research data, two out of three Indians use HULproducts. In 2012, HUL was recognised as one of the world's most innovative companies

    by Forbes. With a ranking of number 6, it was the highest ranked FMCGcompany.

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    2I2.ITC (Indian Tobacco Company)

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    It was formed in 1970 by Henry Overton Wills and Yogesh Chander Deveshwar,(Chairman). Headquarters in Kolkata, West Bengal, India. In FMCG, ITC has a strong presence in :

    Cigarettes: W.D. & H.O. Wills , Gold Flake Kings , Gold Flake Premium , Navy Cut , Insignia , India Kings , Classic (Verve, Menthol, Menthol Rush, Regular,CitricTwist, Mild & Ultra Mild) , 555 ,Benson & Hedges , Silk Cut , Scissors , Capstan , Berkeley , Bristol , Lucky Strike , Players and Flake .Foods: (Kitchens of India ; Aashirvaad , Minto, Sunfeast, Candyman, Bingo,Yippee, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery,Noodles and Snack Foods).

    Apparel: (Wills Lifestyle and John Players brands)Personal care: (Fiama di Wills ; Vivel ; Essenza di Wills ; Superia ; Vivel di Wills brands of products in perfumes, haircare and skincare)Stationery: (Classmate and PaperKraft brands)Safety Matches and Agarbattis : [Ship ; Mangaldeep ; Aim brands]

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    3.Nestl India

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    It is a multinational nutritional and health-related consumer goods companyheadquartered in Vevey, Switzerland. It is the largest food company in theworld measured by revenues.

    Nestl was listed No. 1 in the Fortune Global 500 as the world's mostprofitable corporation.

    Nestl's products include baby food, bottled water, breakfast cereals, coffee,confectionery, dairy products, ice cream, pet foods and snacks.

    Nestl's indias first production facility was set up in 1961 at moga (punjab)

    The Nestl india head office is located at Gurgaon along with other branchoffices in Delhi,Mumbai,Chennai and kolkata.

    It has 2,50,000 employees,500 factories and 8000 range of products across theglobe.

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    4.GCMMF (AMUL)

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    Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat,India.

    Gujarat Co-operative Milk Marketing Federation Ltd Formed in 1946,

    It has also ventured into markets overseas.

    Amul's product range includes milk powders, milk, butter, ghee, cheese, MastiDahi, Yoghurt, Buttermilk, chocolate, ice cream and others.

    Revenue US$2.15 billion (2010 11

    GCMMF (AMUL) has the largest distribution network for any FMCG company.It has nearly 50 sales offices spread all over the country, more than 5 000wholesale dealers and more than 700 000 retailers.

    It has Largest milk handling capacity in Asia.

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    5.Dabur India

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    Dabur India Limited is the fourth largest FMCG Company in India withinterests in Health Care, Personal Care and Food Products.

    It is public company listed in NSC and BSC.

    it has 17 ultra-modern manufacturing units spread around the globe and its

    products marketed in over 60 countries.

    Products-Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real.

    It is most famous for Dabur Chyawanprash and Hajmola .

    Founded in 1884 and the Founder is Dr. S K Burman,in kolkata (west bangal)and The company headquarters are in Ghaziabad,Uttar Pradesh, India.

    Net income(INR) 1475 Crore (2008-09).Total assets(INR) 1559 crore (2008-09).Employees3000 (Approx.)

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    6.Asian Paints (India)

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    It is an Indian chemicals company headquartered in Mumbai, India. Asian Paints is India's largest paint company and Asia's third largest paint

    company, with a turnover of Rs 96.32 billion. It is one of the largest paint companies in the world and operates in 17

    countries It is Founded in 1942.

    Today Asian Paints becomes the 10th largest decorative paint company in theworld.

    1967 Asian Paints emerges as India's leading paint company ahead of anyinternational competition

    Headquarters Mumbai, India.

    Revenue7,964 crore (US$1.45 billion)(2012) Profit 958.39 crore (US$174.43 million)(2012)

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    7.Cadbury India

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    Cadbury India began its operations in India in 1948 by importing chocolates. Its Headquarters in Mumbai, India. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur

    (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in NeDelhi, Mumbai, Kolkata and Chennai.

    Products Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, Oreo andBournvita.

    It is the market leader in the chocolate confectionery business with amarket share of over 70%.

    The Brand Trust Report, India Study, 2011 published by Trust Research

    Advisory ranked Cadbury in the top 100 most trusted brands list. Cadbury has worked with the Kerala Agricultural University to undertake

    cocoa research. Current employees are 2000.

    8 i i d i

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    8.Britannia Industries

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    It is an Indian food-products corporation based in Kolkata,India . It is famous for its Britannia and Tiger brands of biscuit, which are popularthroughout India.

    Britannia has an estimated 38% market share in biscuit segment. Products -Bakery products, including biscuits, bread, cakes and rusk, and dairy

    products, including milk, butter, cheese, ghee and dahi. The company was established in 1892, with an investment of Rs. 295. The brand names of biscuits include VitaMarieGold , Tiger , Nutrichoice

    Junior ,Good day , 50 50 , Treat , Pure Magic , Milk Bikis , Good Morning , Bourbon , Thin Arrowroot , Nice , Little Hearts and many more.

    Revenue 4,670 crore (US$849.94 million)(2011) .Profit 134 crore (US$24.39million)(2011)

    9 Procter & Gamble Hygiene and

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    9.Procter & Gamble Hygiene andHealth Care

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    P&G is one of the largest and amongst the fastest growing consumer goodscompanies in India. Established in 1964,

    P&G India now serves over 650 million consumers across India.

    Its presence pans across the Beauty & Grooming segment, the Household Caresegment as well as the Health & Well Being segment,

    These include Vicks, Ariel, Tide, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head & Shoulders, Wella and Duracell.

    P&G operates under three entities in India - two listed entities Procter &Gamble Hygiene and Health Care Limited and Gillette India Limited, as well asone 100% subsidiary of the parent company in the U.S. called Procter &Gamble Home Products .

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    10.MARICO INDUSTRIES

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    Marico is a Indian consumer goods company providing consumer products andservices in the areas of Health and Beauty based in Mumbai.

    Founded in 1987 and Headquarters is at Bandra, Mumbai, India.

    The organisation holds a number of brands including Parachute, Saffola,Hair&Care, Nihar, Mediker, Revive, Manjal, Kaya Skin Clinic, Aromatic,Fiancee, HairCode, Eclipse, Xmen, Hercules, Caivil, Code 78 and Black Chic.

    Revenue 4,008.3 crore(2012)

    Parachute is the flagship brand of Marico which consists of edible grade coconutoil.

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    Some Well-knownCampaign Of FMCG

    Sector

    P j Sh k i b HUL

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    Project Shakti by HUL

    The company generates around half its business fromIndias towns and cities and half from rural areas, where

    its products are sold in some 100,000 villages withpopulations of 2,000 or more.

    To gain more share in rural market HUL starts aambitious project named as Project Shakti .

    in which company starts direct-to-consumer salesdistributors through womens self-help groups that hadbeen springing up around the country. These groups,about one million of which now exist across India.

    The company provides training in selling, commercialknowledge and bookkeeping, teaching them to becomefully-fledged microentrepreneurs.

    Shakti women entrepreneurs covering 50,000 villages in12 states, selling to 70 million consumers. Thisrepresents a 30% increase in rural population reached

    Ch l i i iti ti f ITC Li it d

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    e-Choupal is an initiative of ITC Limited ITC established a service which link directly ruralfarmers to manufacture via the Internet.

    e-Choupal was conceived to tackle the challenges posedby the unique features of Indian agriculture, characterizedby fragmented farms, weak infrastructure and theinvolvement of numerous intermediaries.

    Traditionally, commodities were sell through mandis.where the middleman used to make most of the profit.

    These middlemen used to unfair means to judge thequality of the product to set the price. farmers didn't getthe right value for their product.

    So ITC has empowered the lives of people living in 10states where 40000 villages have 6500 e choupals andaround 4 million farmers have been empowered.

    E-choupal also provides products of ITC at cheaper rate

    . It benefited both parties.

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    Swasthya Chetna Abhiyan by dabur

    The company has initiated 'Swasthya ChetnaAbhiyan , A activity that will cover 540 villages andreach almost 20 lakh people in Uttar Pradesh andBihar.

    Dabur recently signed actor Ravi Kishan as itsbrand ambassador for below-the-line promotions inUttar Pradesh and Bihar -- has launched a consumerengagement programme with him.

    The activity has five elements: free health check-up, engagement activities, movie screenings, spotsales and a meet and greet opportunity with brandambassador, Ravi Kishan.

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    Van Campaign by Marico

    Create awareness for Parachute Coconut Oil Pouchin towns with less than 20000 population in Tamil

    Nadu.

    This campaign Convert loose oil buyers intoParachute pouch customers, by highlighting theadvantages of the Parachute brand Convince them topay a small premium for the brand.

    The Van Campaign aimed exclusively for women andfor the first time conducted by women in maledominated society.

    according to Marico, substantial increase in salesreported from the campaign areas A study by Maricoshowed a 25% conversion from loose coconut oilusage to Parachute Pouch Pack, Post Van CampaignThe success of the campaign motivated Marico torepeat the campaign the following year even in townswith 1 lakh + population, with excellent results

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    Per-capita demand

    Market access

    Difficult

    Easy

    Low High

    Cell 2, Emergingmarket

    Cell 1, Urban and

    semi-urban market

    Cell 3, Bottom of thepyramid (BOP) market

    Cell 4, Oasis market

    consumer markets in India'5x Complete Campaign by HARPIC

    India's no. 1 toilet cleaning brand from Reckitt Benckiser

    has launched the all new Harpic plus and starts door todoor promotion, Used Hussain Kuwajerwala as brandambassador.

    Brooke Bond Lipton India Ltd (BBLIL) Brooke BondLipton India Ltd (BBLIL) markets its rural brandsthrough magic shows and skits.

    Brooke Bond Lipton campaign

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