An Industrial Immersion Project on

“The Study on FMCG Sector”

Submitted By:
“Niraj Gawas”
PGDM BATCH
(2021-2023)

In partial fulfillment of the requirements for

POST GRADUATE DIPLOMA IN MANAGEMENT

Project Guide
Dr.Sandeep Sawant

1
 Declaration
I, NIRAJ UMESH GAWAS of Kohinoor Business School, Kurla west,
Mumbai of PGDM (2019-2021), hereby declare that, I have
completed by Project, titled as “A study on FMCG SECTOR”in the
Academic year 2021-2023

I hereby declare that the Industrial Immersion Project report carried

out on “A study on FMCG SECTOR ” is my work submitted partial
fulfilment of the requirements for Post Graduate Diploma in
Management, from Kohinoor Business School, Kurla Mumbai
during May-2022

Date:
Place: Mumbai

2
Acknowledgement
I would like to express my sincere appreciation to those who
inspired me tocomplete this project successfully. Initial, I would
like to state my sincere thankfulness to Dr Sandeep Sawant,
PGDM head of Kohinoor Business School, Kurla for addressing
me this opportunity.

I am especially grateful to my college professors guide Dr Sandeep

Sawant forproviding me with endless support and advice in my
endeavour.

I am also thankful to all the faculty members who imparted their

knowledgeableinsights in the class which assisted to make my basics
strong with clear conceptual knowledge.

Lastly but not least I would like to appreciate everyone who

helped me tocompile my project during the entire period.

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 Table of Content

Sr No Index Page No

01 Introduction to FMCG Sector

02 Market size

03
FMCG Industry Growth Forecast

04 Major trends expected of the FMCG

05 Top 10 FMCG Companies in India for 2022

06 Contribution Of Products in FMCG Sector

07 Rural Areas in FMCG sectors

08 Market Share of Top FMCG Sector

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09 Introduction Of FMCG Companies

10 Growing Demand in FMCG Sector

11 Trends In FMCG Sector

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12 Trends Promising Startups

13 Future of FMCG Sector in india

FMCG CEOs see inflation eating into volumes

14

15 Government Initiative

16 HUL vs ITC: Stock and Business comparison

17 Bigest Challenges IN FMCG

Convience
18

Top 7 FMCG Digital Marketing Strategies in India

19

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20 SWOT Analysis

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8
Executive Summary
The Industry Immersion Project is based on the Ecommerce Industry.
I have completed my Industry Immersion Project in Kohinoor Business School,
Kurla west from September 2019-July 2020.
As being interested in Ecommerce Industry I have tried to cover all the aspects
of it.
I have covered Ecommerce Model Type, its Forms, Present Scenario, Market
size, Investment/ Development, Advantages, SWOT, Poters 5 Force Theory and
so on.
I have mentioned the Top 5 Companies, Website and Application in India.
I have done detailed study on top 2 Companies i.e. Amazon and Flipkart.

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 Introduction
Fast-moving consumer goods (FMCG) sector is India's fourth-largest sector with
household and personal care accounting for 50% of FMCG sales in India. Growing
awareness, easier access and changing lifestyles have been the key growth drivers for
the sector. The urban segment (accounts for a revenue share of around 55%) is the
largest contributor to the overall revenue generated by the FMCG sector in India.
However, in the last few years, the FMCG market has grown at a faster pace in rural
India compared to urban India. Semi-urban and rural segments are growing at a rapid
pace and FMCG products account for 50% of the total rural spending .

Fast-moving consumer goods are products that sell quickly at relatively low cost. These
goods are also called consumer packaged goods.

FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and
confections) or because they are perishable (e.g., meat, dairy products, and baked
goods). These goods are purchased frequently, are consumed rapidly, are priced low,
and are sold in large quantities. They also have a high turnover when they're on the
shelf at the store.

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Market Size
The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220
billion by 2025, from US$ 110 billion in 2020. The Indian FMCG industry grew by 16% in
CY21 a 9-year high, despite nationwide lockdowns, supported by consumption-led
growth and value expansion from higher product prices, particularly for staples. The
rural market registered an increase of 14.6% in the same quarter and metro markets
recorded positive growth after two quarters. Final consumption expenditure increased
at a CAGR of 5.2% during 2015-20. According to Fitch Solutions, real household
spending is projected to increase 9.1% YoY in 2021, after contracting >9.3% in 2020 due
to economic impact of the pandemic. The FMCG sector's revenue growth will double
from 5-6% in FY21 to 10-12% in FY22, according to CRISIL Ratings. Price increases across
product categories will offset the impact of rising raw material prices, along with
volume growth and resurgence in demand for discretionary items, are driving growth.
The FMCG sector grew by 36.9% in the April-June quarter of 2021 despite lockdowns in
various parts of the country.

Number of households shopping on modern-trade channel grew 29.15% YoY in the

September quarter and shopping volume on the channel went up by 19.2% YoY.

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purchased for a fee.

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 FMCG Industry Growth Forecast
E-commerce for FMCG will reach US$ 400 billion by 2022, which will represent
between 10-12 percent of the global market for such products, as per Nielsen
estimates. The Indian processed food market is projected to expand to US$ 470
billion by 2025, up from US$ 263 billion in 2019-20. By 2022, global FMCG e-
commerce sales are set to become a US$ 400 billion opportunity.
As per the latest report, the Indian FMCG sector is estimated to be the fourth
largest sector in the country. The household and personal care products account
for about 50 percent of the total FMCG sales. The food and beverages sector is
one of the largest in the FMCG industry in India and contributes to approximately
30 percent of the household spending in India.
Packaged food market thrived in India even during the pandemic as people
became increasingly aware of consuming healthy and immunity-boosting food
products. Other factors that have driven the growth of this segment are rising
income levels, preference for healthy and organic products, and increasing
urbanization. Leaders in FMCG and the retail space will be distinguished by their
agility to adopt new technology, creativity, and smart technology investment. This
sentiment will also be fueled by strong customer understanding that is a timeless
aspect retailer should always take care of.
As retailers position their business model, strategy, marketing, stores, and
operations to flourish in a post-pandemic world, 2022 will be a year of investment
and new partnerships.

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 Major trends expected of the FMCG industry for 2022:
E-commerce Boom and its Contribution to Revive Retail Sector Amid Testing
Times - E-commerce had a groundbreaking impact on the FMCG industry across
the world after the pandemic outbreak as it encouraged online shopping more
than ever. As Coronavirus changed consumer habits, FMCG firms saw a surge in
the contribution of e-commerce to their overall sales. The trend will further
continue next year as it ensured that the retail sector thrives despite all doom
and gloom.
Technology Disruption - Disruptive technologies like big data analytics,
blockchain, and artificial intelligence (AI), among others, were deployed by FMCG
companies to gain a competitive edge and offer a better experience to their
customers. In addition to this, to meet the growing customer expectations,
Internet of Things (IoT) sensors and devices and 3D printing technology is
enabling FMCG companies to focus on direct distribution.
Understanding of the New Consumer in Post-Pandemic World - Successful
brands always keep customer sentiment and their overall satisfacti on in mind.
The consumer character in 2022 will consist of a huge population of millennials
who would be focusing on self-development and balanced life. This expectation
can be met by focusing on customer experience and creating quality products that
would give them health benefits as well as peace of mind.

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 Top 10 FMCG Companies in India for 2022
India is probably the biggest market in the world for FMCG business. And more than
100 crore population of the country depends on the FMCG companies to satisfy the
daily requirements. According to the brand value and revenue earnings, we have
compiled here the top 10 FMCG companies in India. FMCG companies generally
operate the business through a wide distribution network. And the range of fast-
moving consumer products also helps to fetch the revenue fast.

1. Hindustan Unilever Limited (HUL)

2. Colgate-Palmolive
3. ITC Limited
4. Nestle.
5. Parle Agro.
6. Britannia Industries Limited. ...
7. Marico Limited.
8. Procter & Gamble.
9. Godrej Group
10. Amul

Increasing Investment

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 Contribution by different categories in FMCG sector:

 Household &Personal Care 30%

 Tobacco 15%
 Food & Beverages 53%
 Others 2%

1. Household &Personal Care 30% :

Oral care: Toothpaste, toothbrush, mouth gel

Hair care: – L’Oreal

Skin care: Face wash and Creams

 Cosmetics : Lakme , Sugar Cosmetics , Maybelline New York, L'Oréal Paris.

Deodorants, perfumes: feminine hygiene

Paper products: Paper cups, paper plates, Craft papers

Fabric wash: such as Ariel, Tide Bar, Tide Detergent, Rin etc.

Household cleaners: Phenyl, surface cleaner

 Food & Beverages 53%

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Health beverages: Horlicks, Complain, Bournvita

Staples/cereals: - Cereals and popcorn etc.

Bakery products: Bread, Candy, Sweets, Cakes

Snacks: Boondi, jalebi, halva, masala puri

Chocolates, ice cream, tea/coffee/soft drinks, processed fruits and vegetables, dairy
products .

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 OTHERS Sales
2%

HOUSEHOLD &
PERSONAL CARE
30%
FOOD & BEVARGES
53%

TOBACCO
15%

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Current news related to FMCG sector in Rural area By Economic Times on MAY
07,2022.:- Packaged consumer goods companies expect rural demand that started
slowing from last September to bounce back by next quarter, on the back of good
monsoon forecasts, higher capital investments and additional spending in government
programmes like the rural employment scheme.

“We believe the slowdown in rural markets is temporary and should get corrected by
the end of the June quarter, or at most the second quarter,” said Mohit Malhotra, chief
executive of Dabur for which rural markets contribute 47% of sales. “We expect easing
of liquidity pressures, and a combination of factors such as a good harvest, better-than-
normal monsoon forecast and additional outlays announced by the government, to
contribute to rural revival,” Malhotra said. The company, which makes the Vatika
shampoo and Real juice, will continue to invest ahead of the curve in expanding its rural
coverage, he added.

Growth slowed in India’s villages, which contribute around 35% to overall FMCG sector
sales, as steep inflation of food, other daily essentials and fuel, and declining wages
forced consumers to buy cheaper products or stop buying these products. In cities,
meanwhile, most companies said modern trade recovered from the low base of last
year, helping the urban market post similar growth numbers sequentially in the last
quarter.

Sanjiv Mehta, managing director at the country’s largest consumer goods maker,
Hindustan Unilever, said there were a few factors that could contribute to rural
recovery. "First is a good harvest. We are seeing that the rabi harvest should be good
on all counts. Second, the indicators are that the rainfall should be decent. The third is
with the agri prices moving up, there would be benefit to the farmers," Mehta said at
the company’s earnings call last week. "The government spending of Rs 75 lakh crore
on capital expenditure, if that is front-ended, which I believe it should be, then we
should start seeing a recovery happen,” he added.

According to research firm Kantar, rural demand is still growing compared to that of
urban, which fell 3.4% during the March quarter. However, rural growth has tapered off
to 1.7% last quarter, compared with 2.7% a year earlier.

Edible oils maker Adani Wilmar managing director Angshu Mallick told ET he expected
rural demand to revive by the second quarter. “Apart from a good monsoon prediction,
there are all indications that commodity inflation will decline. Another reason is, that
many villagers who had lost their jobs during the last two years, have returned to cities
and been re-employed - they are resuming sending back money to their households in
villages, which will improve their purchasing power.” The company is , that many
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villagers who had lost their jobs during the last two years, have returned to cities and
been re-employed - they are resuming sending back money to their households in
villages, which will improve their purchasing power.” The company is on track with its
go-to-market strategy focused on capturing rural growth, Mallick said.

For most companies, urban areas account for nearly two-thirds of sales. But rural, on a
lower base, has been outpacing urban growth. As a result, companies are increasing
their distribution expansion in villages, which they say will hold them in good stead in
rural recovery.

Saugata Gupta, managing director at Marico, told analysts on Thursday that the
company would continue to drive rural distribution. “We are still under-indexed in a
couple of states. Given the fact that wholesale as a channel will continue depleting, I
think direct rural distribution will become a source of competitive advantage and an
entry barrier for competitive action,” Gupta said.

This reflects in numbers too — leading fast-moving consumer goods companies have
added nearly 40 direct distributors every day since the Covid-19 pandemic started two
years ago to ensure they reach consumers in every nook and corner of the country
without depending solely on wholesalers. The sector’s direct distributor count has
crossed the 100,000-mark, largely driven by rural expansion, according to Bizom, a sales
automation firm that transacts with 7.5 million retail stores. Rural areas have about
74,933 distributors, up 42% from 52,796 in 2020.

In a post-earnings management commentary, biscuits and dairy products maker

Britannia said though the rural market had seen a slowdown on an overall basis, the
focus continued on increasing direct distribution and enhancing the rural footprint.

In expectation of revival in rural demand, Tata Consumer chief executive Sunil D'Souza
said the company was setting up a distributors' network dedicated to rural markets,
which currently contribute about 20% to its FMCG sector sales .

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 Market share of Top FMCG companies in India

There is a long list of FMCG companies in India. Listed below are the top
FMCG companies in India.

Company’s Name Market Share (%)

ITC 14%

Hindustan Unilever (HUL) 12%

Marico 5%

Parle Agro 8%

Nestlé 3%

Britannia 3%

Dabur 2%

Godrej Group 2%

Procter & Gamble Co. 10.74 %

Colgate-Palmolive 7.06 %

Johnson and Johnson 7.12%

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 Sales
Johnson & Johnson
10% 0%

Colgate-Palmolive ITC
9% 19%

Protecator & Hindustan

Gamble Co. Unilever (HUL)
14% 16%

Godrej Group Parle

3% Dabur Agro
11% Marico
3%
Britania Nestle 7%
4% 4%

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1. ITC Limited

ITC Limited was founded in 1910 and is a diversified conglomerate with interests in Fast
Moving Consumer Goods such as Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education & Stationery Products, Incense Sticks and Safety Matches; and
Hotels, Paperboards and Packaging, Agri-Business, and Information Technology. ITC is
one of India’s leading FMCG brands. It is the example of another fastest growing FMCG
Companies in India.

51,321 crore rupees in revenue

Market Capitalization: 320,094 Cr.

Market Share: 14%

The Imperial Tobacco Company of India Limited was founded on August 24, 1910. It is
the second largest of India’s top five fast-moving consumer goods firms.

2. Hindustan Unilever Limited

Hindustan Unilever Limited is an FMCG manufacturing Company in India and India’s

most significant consumer packaged goods (FMCG) firm, with more than 70-75 years of
presence. It is the largest among the top five fast-moving consumer goods firms in
India. It is one of the fastest-growing FMCG companies in India.

Every 9/10 households own at least one HUL brand. The company’s three divisions –
Are home Care, Beauty & Personal Care, and Foods and Refreshment.

Revenue Generated: 40,511 crore rupees

Employment: 5,645 employees

Market Share: 12%

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 3. Procter & Gamble Co.

Procter & Gamble is one of the most well-known and successful FMCG companies in
India. P&G operates in India through three subsidiaries: Procter & Gamble Hygiene and
Health Care Limited, Gillette India Limited, and a wholly-owned subsidiary named
Procter & Gamble Home Products in the United States. Procter & Gamble India is one of
the best FMCG companies in the country, serving 650 million people.

The firm operates five production units and approximately nine contract manufacturing
locations. According to the 2017-2018 Annual Report, the company has a revenue of
INR 58590 and a workforce of 125000.

Famous products are olay, oral B, Gillette and etc

Situated in the United States of America

83 Billion Dollars in Revenue

125,000+ employees

Market Share: 10.74%

4. Parle Agro

Parle Agro beverages, one of India’s top FMCG companies, has reached a milestone
status in the business and is on its path to becoming India’s first global food and
beverage powerhouse.

Best products of Parle Frooti, Bailey, Fizz, etc.

Headquarters: Mumbai, Maharashtra

1 billion dollars in revenue (Approx)

2500+ employees

Market Share: 8%

5. Colgate Palmolive

Colgate evolved from a bit of toothpaste and candle manufacturing operation in the
nineteenth century. New York is a world leader in personal healthcare goods.

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Products related to Colgate: Colgate Toothpaste, Colgate Plax Active Salt Mouthwash,
Halo Shampoo, Palmolive Naturals, and Protex Soap are all popular products. Colgate-
fundamental. Palmolive’s principles of care, worldwide collaboration, and continuous
development have established them as a household name not just in the Indian Fast
Moving Consumer Goods market but around the world. According to the 2017-2018
Annual Report, the company employs around 38000 people and generates revenue of
INR 12045 crores.

Situated in the United States of America

Revenue: 18.08 Billion Dollars

37,000+ employees

Market Share: 7.06%

6. The Johnson & Johnson Company

Johnson and Johnson Company, an FMCG Manufacturing company in India.

An American Brand Company and the world’s most valuable corporation FMCG MNC
companies in India.

Johnson & Johnson’s most well-known consumer products in India include the Clean &
Clear face wash, Johnson infant shampoo, Stayfree, and Neutrogena skincare brands.

7. Marico Limited

Marico has its headquarters in more than 20 countries, mainly in Asia. Marico offers
several products in men’s grooming, fabric care, edible oils, skincare, haircare, and
health foods.

Marico’s home or office includes Parachute, Parachute Advanced, Saffola, Hair & Care,
Nihar, Nihar Naturals, Livon, Set Wet, and Mediker. In contrast, the company’s
worldwide portfolio includes Parachute, HairCode, Fiancée, Civil, Hercules, Black Chic,
Isoplus, Code 10, Ingwe, X-Men, and Thuan Phat. Marico products are consumed by
one in every three Indians, making it one of the most successful fast-moving consumer
goods companies globally.

Headquarters: Bandra, Maharashtra

61 Billion Dollars in Revenue

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1000+ employees

Market Share: 5%

8. Nestle India Private Limited

List of FMCG companies in india. Nestlé tops the list as the largest food and beverage
corporation in the world. The firm owns over 2000 brands, ranging from global
landmarks to regional favorites, and operates in 191 countries. Following a more than
century-long relationship with the nation, NESTLÉ India now has a presence throughout
the country through eight production sites and four branch offices. It is India’s third-
largest FMCG company.

12117 Cr. in revenue

Market Capitalization: 139,532 Cr.

Market Share: 3%

9. Britannia Industrial Limited

Britannia Industries Limited is one of India’s oldest FMCG firms, acquired by the Wadia
Group. Britannia and Tiger biscuit brands and dairy goods are the company’s most
popular brands in India.

Britannia’s product line includes biscuits, bread, cakes, rusk, and dairy goods such as
cheese, beverages, milk, and yogurt.

11,211 crores in revenue

Employees: 75,893 Cr.

Market Share: 3%

Godrej enjoys a strong market position in India, Indonesia, Sub-Saharan Africa, and
Latin America. Its products, particularly home items, personal care, and hair care
products, are in great demand.

10. Godrej Enterprises Ltd

Godrej is a company with interests in consumer products, real estate, appliances, and
agriculture.

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Good Night, Ezee, soap, and toiletries are a few of their most well-known products.
With a heritage spanning 120 years, the Godrej Group has firmly established itself as
one of the top FMCG companies in India.

Situated in Mumbai, Maharashtra (Corporate Office)

4 Billion Dollars in annual revenue

250000+ employees

Market share: 2%

11. Amul

Best FMCG stocks, Amul with a strong brand value and history holds the number one
position in Dairy Products.. Amul began in 1946 as a response to the exploitation faced
by peasants due to intermediary participation. To fight the cartels’ disruptive presence,
peasants in Gujarat founded the Kaira District Co-operative Milk Producers Union Ltd,
led by Vallabhai Patel, Morarji Desai, and Tribhuvandas Patel.

This cooperative was founded based on two local dairy cooperative organizations and is
today known as Amul Dairy. Amul is considered the best dairy and consumer products
industry, and it is precise because of this trust that it is one of the top FMCGs.

12. Dabur

Dabur is a prominent manufacturer of Ayurvedic goods in India and a pharma company

focused on natural consumer products. Dabur is also a market leader in Ayurveda and
health & personal care goods.

13. Varun Beverages Private Limited

Outside the United States, PepsiCo is the world’s second-biggest franchisee of

carbonated soft drinks (“CSDs”) and non-carbonated beverages marketed under
PepsiCo-owned trademarks and a significant participant in the beverage sector. It is
ranked eighth on the top ten fast-moving consumer goods businesses in India for 2020.

The best products are Pepsi, Seven Up, sting and etc are all PepsiCo CSD brands owned
by Varun Beverages

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 AAUSUUFDVANTAGE INDIA
ADVANTAGE INDIA
ADVANTAGE INDIA
AADVANTAGE INDIA
DVANTAGE INDIA
GROWING
DEMAND

*The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by
2025, from US$ 110 billion in 2020.

*Indian packaged food market is expected to double to US$ 70 billion by 2025.

*Rising digital connectivity in cities and rural areas is driving the demand for FMCG (through e-
commerce portals).

ATTRACTIVE
OPPORTUNITIES

*Increase in disposable income in rural India and low penetration levels in rural market offers room
for growth.

*E-commerce segment is forecast to contribute 11% to the overall FMCG sales by 2030.

POLICY
SUPPORT

*Investment approval of up to 100% foreign equity in single brand retail and 51 % in multi-brand
retail.

*The union government’s production-linked incentive (PLI) scheme gives companies a major
opportunity to boost exports with an outlay of US$ 1.42 billion.

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 HIGHER
INVESTMENTS

*Investment in this sector attract investors as FMCG products have demand throughout the year.

*The sector witnessed healthy FDI inflow of US$ 18.59 billion from April 2000 to June 2021.

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NOW A DAYS TRENDS IN FMCG:
Consolidation: Indian FMCG companies are consolidating their existing business
portfolios which is leading to divestments, mergers and acquisitions
Product innovation: Several companies have started innovating or customising their
existing product portfolios for new consumer segments
Parle quality:
The quality has also gone down as it is much harder now .Earlier when dipped in hot
water /milk, it soaked faster as it was soft. Now when u dips it, it comes out unsoaked.
No, taste not changed it has decrease the size of biscuit. Price has remained same but
quantity has changed ... If company increase the price consumer will try to buy another
product of same benefits. For example lays, Price 5 but it has reduce the quantity.
Good day orange and cashew
Premiumisation: Despite the slowdown and cash crunch due to demonetisation,
consumers are still willing to buy premium goods at higher prices in the space of
convenience, health, and wellness.
Product customisation:
Consumers have started demanding customised products specifically tailored to their
individual tastes and needs
• The trend toward mass-customisation of products is expected to intensify further.
• To get more value for dairy products and to improve margins, dairy firms are looking
at selling protein supplements added milk.
Brand consciousness
• Consumers are becoming more brand conscious and prefer lifestyle and premium
range products given their increasing disposable income.
• Companies are required to continuously focus on innovation and customer
engagement to strengthen their brand appeal in market
Expanding horizons
• A number of companies are exploring the business potential of overseas markets &
several regional markets. In 2016, Acrysil acquired the additional 13 per cent equity in
UK-based "Home style Products Ltd.
Backward integration
• Backward integration is becoming the preferred strategy for increasing profit margins,
securing capacity & sources of supply.
Focus on rural market
• Companies are now focusing on the rural market segment which is growing at a rapid
pace and contributes about 50 per cent to the total FMCG market. Companies like
Dabur are trying to increase its penetration in rural areas to generate more revenues
from rural India
Expanding distribution networks
• Companies are now focused on improving their distribution networks to expand their
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reach in rural India. ITC one of the leading FMCG Company in India is trying to reduce its
lead time by making its distribution channel more efficient and aiming to reach the
retail outlets directly from manufacturing facility
Third-party manufacturing
• This approach has helped FMCG companies focus on front-end marketing •
Reservation of several items for SSI as well as additional tax incentives have made 3rd
party manufacturing a popular route for many big players
Rising importance of smaller-sized packs
• Companies are increasingly introducing smaller stock keeping units at reduced prices.
This helps them to sustain margins, maintain volumes from price-conscious customers
and expand their consumer base for example sachets.
Increased hiring from tier II/III cities
• Small towns are emerging as significant hiring zones. FMCG companies are hiring field
staff from areas such as Kalpa (HP), Mangaliya (MP), Kota (Rajasthan) & Shirdi
(Maharashtra) to sell diverse products
Focus on enhancing presence in Africa
• FMCG companies entering Africa as it helps to be close to consumption markets
within Africa. In 2015, Godrej had acquired South Africa based company Frika Hair
• Such foreign investments are encouraged by local governments, as they offer
incentives to enter the markets
• FMCG players in India are increasingly focusing on reducing their carbon footprint by
creating eco-friendly products. They generate the required energy from renewable
sources and earn CER credits for the same. In India, organic skincare market is
estimated to be around USD81.8 million and growing at a rate of 20-25 per cent growth
per year
Increasing private label penetration
• With the rise of retail players, private label has become popular in the FMCG space.
Private Label goods are considered substitutes of premium branded goods.
STRATEGIES ADOPTED by FMCG COMPANIES:
Promotions & offers: FMCG companies are trying to influence consumers with
intelligent deals • Firms like ITC offers combo deals to the consumers. For example, in
the case of soaps & cosmetics; 4 soap cases are offered at the price of 3, selling the
range of deodorants for men & women at a discounted price
Research online Purchase offline
• The internet enables consumers to make their own research on the kind of products
or commodities they want to purchase. 1 in 3 FMCG shoppers goes online 1st & then to
the stores • Almost half of the automobile consumers follow Research Online Purchase
Offline (ROPO) method
Production innovation
Indian consumers have become choosy & are less likely to stay loyal to a brand •
Colgate-Palmolive has launched a toothpaste for the inflammatory gum problem of
31
pyorrhoea • ITC is coming up with new multigrain Bingo • Dabur has launched its sugar
free variant for Chyawanprash in India
Customisation
Product Flanking: Introduction of different combinations of products at different prices,
to cover as many market segments as possible • Different types of same product for
different users’ population. For example: Calcium Sandoz & Calcium Sandoz Women &
Horlicks for older women, Junior Horlicks

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In the post-COVID ‘new normal’, the fast-moving consumer goods (FMCG)
industry is undergoing a significant transformation in response to changes
in customer behavior and demand for more convenience. To cater to the ever-
increasing demand of the Indian consumer, retailers are adopting an omnichannel
strategy and accelerating the adoption of digitization along with emerging new -
age technologies in their operations.
Hit hard by the pandemic, the FMCG industry’s future will depend on adopting a
multi-channel approach. Phygital retail or omnichannel distribution seems
promising when online and offline channels are competing.
However, the good news is that the businesses have now largely stab ilized and
become immune to COVID-19 like disruptions, so FMCG players are expecting
exponential growth that will be contributed by several factors including e -
commerce, technology, and understanding a conscious consumer in post-
pandemic ‘new normal’.
Here are some major trends expected of the FMCG industry for 2022:
E-commerce Boom and its Contribution to Revive Retail Sector Amid Testing
Times - E-commerce had a groundbreaking impact on the FMCG industry across
the world after the pandemic outbreak as it encouraged online shopping more
than ever. As Coronavirus changed consumer habits, FMCG firms saw a surge in
the contribution of e-commerce to their overall sales. The trend will further
continue next year as it ensured that the retail sector thrives desp ite all doom
and gloom.
Technology Disruption - Disruptive technologies like big data analytics,
blockchain, and artificial intelligence (AI), among others, were deployed by FMCG
companies to gain a competitive edge and offer a better experience to their
customers. In addition to this, to meet the growing customer expectations,
Internet of Things (IoT) sensors and devices and 3D printing technology is
enabling FMCG companies to focus on direct distribution.
Understanding of the New Consumer in Post-Pandemic World - Successful
brands always keep customer sentiment and their overall satisfaction in mind.
The consumer character in 2022 will consist of a huge population of millennials
who would be focusing on self-development and balanced life. This expectation
can be met by focusing on customer experience and creating quality products that
would give them health benefits as well as peace of mind.
FMCG Industry Growth Forecast - E-commerce for FMCG will reach US$ 400
billion by 2022, which will represent between 10-12 percent of the global market
for such products, as per Nielsen estimates. The Indian processed food market is
projected to expand to US$ 470 billion by 2025, up from US$ 263 billion in 2019 -
33
20. By 2022, global FMCG e-commerce sales are set to become a US$ 400 billion
opportunity.
As per the latest report, the Indian FMCG sector is estimated to be the fourth
largest sector in the country. The household and personal care products account
for about 50 percent of the total FMCG sales. The food and beve rages sector is
one of the largest in the FMCG industry in India and contributes to approximately
30 percent of the household spending in India.
Packaged food market thrived in India even during the pandemic as people
became increasingly aware of consuming healthy and immunity-boosting food
products. Other factors that have driven the growth of this segment are rising
income levels, preference for healthy and organic products, and increasing
urbanization. Leaders in FMCG and the retail space will be distinguished by their
agility to adopt new technology, creativity, and smart technology investment. This
sentiment will also be fueled by strong customer understanding that is a timeless
aspect retailer should always take care of.
As retailers position their business model, strategy, marketing, stores, and
operations to flourish in a post-pandemic world, 2022 will be a year of investment
and new partnerships .

34
 Some of the recent developments in the FMCG sector are as follows:

 In February 2022, Dabur India, formed an exclusive partnership with energy provider
Indian Oil, which will give Dabur's products direct access to around 140 million Indane
LPG consumer households across India.

 Beco, a startup in India, is revolutionising the FMCG market with low-cost,

environmentally-friendly consumer goods.

 In February 2022, Dabur India achieved its goal to collect, process, and recycle
approximately 22,000MT of post-consumer plastic three months early.

 In February 2022, Marico Ltd announced its aims to achieve net-zero emissions by 2040
in its global operations.

 In November 2021, Tata Consumer Products (TCPL) signed definitive agreements to

acquire 100% equity shares of Tata SmartFoodz Limited (TSFL) from Tata Industries
Limited for a cash consideration of Rs. 395 crore (US$ 53.13 million). This move was in
line with TCPL's strategic intent to expand into the value-added categories.

 In November 2021, Unilever Plc agreed to sell its global tea business to CVC Capital
Partners for EUR 4.5 billion (US$ 5.1 billion. The business being sold—Ekaterra—hosts a
portfolio of 34 tea brands, including Lipton, PG Tips, Pukka Herbs and TAZO.

 In November 2021, McDonald's India partnered with an FMCG company ITC to add a
differentiated fruit beverage, B Natural, to its Happy Meal, which will be available
across all McDonald's restaurants in South and West India, primarily catering to
children aged 3–12 years.

 In October 2021, Procter & Gamble announced an investment of Rs. 500 crore (US$
66.8 million) in rural India.

 In September 2021, PepsiCo commissioned its Rs. 814 crore (US$ 109.56 million) Kosi
Kalan foods facility in Mathura, Uttar Pradesh; it is the company's largest greenfield
manufacturing investment in India.

 In September 2021, Vahdam India, an Indian tea brand, raised Rs. 174 crore (US$ 24
million) as part of its Series D round led by IIFL AMC's Private Equity Fund.

 In September 2021, RP-Sanjiv Goenka Group entered the personal-care segment by

launching skin and haircare products, aiming at a revenue of Rs. 400-500 crore (US$
53.84-67.30 million) in the next 4-5 years

35
 In September 2021, Adani Wilmar announced the opening of physical stores under the
name 'Fortune Mart' that will exclusively sell Fortune and other Adani Wilmar brand
products.

 In August 2021, Apnaklub, a Bengaluru-based B2B wholesale marketplace for consumer

goods, raised US$ 3.5 million in a seed round from Sequoia Capital India's Surge,
increasing the total funds to US$ 5 million.

 In August 2021, Soothe Healthcare, an Indian personal hygiene products brand, raised
Rs. 130 crore (US$ 17.54 million) in a Series-C round of funding from A91 Partner
Partners.

 In August, Adani Wilmar, a 50/50 joint venture between Adani Group and Singapore-
based Wilmar, filed for initial public offering (IPO) to raise up to Rs. 4,500 crore (US$
607.13 million) for expansion.

 In the fourth quarter of FY21, e-commerce sales of Marico Ltd., Hindustan Unilever Ltd.,
Dabur India, ITC and Godrej Consumer Products Ltd. were 8%, 6%, 5%, 5%, and 4%,
respectively, of the total FMCG sales.

 In July 2021, Emami Ltd. increased its stake (by 15% to 46%) in Helios Lifestyle, which
sells male-grooming products under The Man Company brand in line with its ambition
to tap emerging online opportunities.

 In July 2021, Tata Consumer Products Ltd. introduced 'Eight O'Clock', America's Original
Gourmet Coffee, under D2C, besides Tata Coffee 1868 and Sonnets, as a part of its
strategy to enhance its D2C approach for select coffee brands and their specific
websites. The company plans to add more brands in the D2C space as these three
coffee brands stabilise.

 In July 2021, HUL launched in-store vending machine model, Smart Fill machine, for its
home care products with the aim to reuse and recycle plastic. Smart Fill machine will
allow consumers to reuse plastic bottles by refilling products from its brands like Surf
Excel, Comfort and Vim.

 As of June 2021, e-commerce share has already touched 7-8% for some of the largest
FMCG companies in the country, according to Accenture India.

 In June 2021, Dabur India announced its Rs. 550 crore (US$ 75.6 million) investment to
set up a new plant in Madhya Pradesh for manufacturing of food products, ayurvedic
medicines and health supplements.

 In May 2021, Tata Digital Ltd., a 100% subsidiary of Tata Sons, acquired a 64.3% stake in
supermarket grocery supplies, the business-to-business arm of BigBasket in tandem

36
 with Tata Group's strategy to build a digital consumer ecosystem. According to the
Economic Times, the deal is worth U$ 1.8-2 billion.

 In May 2021, Nepal-based CG Corp Global, known for its popular noodles brand Wai
Wai, announced its plan to invest Rs. 200 crore (27.42 million) to set up two new
manufacturing plants in West Bengal and Uttar Pradesh.

37
38
 Innovation Map outlines the Top 10 FMCG Industry Trends & 20 Promising Startups

For this in-depth research on the Top FMCG Industry Trends & Startups, we analyzed a
sample of 3 011 global startups and scaleups. The result of this research is data-driven
innovation intelligence that improves strategic decision-making by giving you an
overview of emerging technologies & startups in the FMCG industry. These insights are
derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights
Discovery Platform, covering 2 093 000+ startups & scaleups globally. The platform
quickly delivers an exhaustive overview of emerging technologies within a specific field
as well as identifies relevant startups & scaleups early on.

In the Innovation Map below, you get an overview of the Top 10 FMCG Industry Trends
& Innovations that impact companies worldwide. Moreover, the FMCG Innovation Map
reveals 20 hand-picked startups, all working on emerging technologies that advance
their field. To explore custom insights, simply get in touch with us.

Tree Map reveals the Impact of the Top 10 FMCG Industry Trends

Based on the FMCG Innovation Map, the Tree Map below illustrates the impact of the
Top 10 FMCG Industry Trends. Startups and scaleups work on technological solutions to
meet the growing FMCG consumer demand for convenience, sustainability, and
engaging experiences. The permeation of smartphones globally also pushes the
39
digitization and growth of eCommerce, driving companies towards implementing
technologies such as AI, Big Data, IoT, Blockchain, and 3D Printing. FMCG brands adapt
product development, manufacturing, and packaging to meet consumer demand for
sustainable processes and improved convenience. Online shops open new avenues for
data management and analytics that further increase revenues for FMCG companies.
For example, a growing number of brands directly distribute and sell to their customers
via online channels, thus reducing logistics costs.

Global Startup Heat Map covers 3 011 FMCG Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 3 011
exemplary startups & scaleups that we analyzed for this research. Created through
the StartUs Insights Discovery Platform, the Heat Map reveals that the United States is
home to most of these companies while we also observe increased activity in the UK,
France as well as India.

Below, you get to meet 20 out of these 3 011 promising startups & scaleups as well as
the solutions they develop. These 20 startups were hand-picked based on criteria such
as founding year, location, funding raised, and more. Depending on your specific needs,
your top picks might look entirely different.

Top 10 FMCG Industry Trends

1. Sustainability

Consumers are becoming more conscious of climate change and its impact on the
environment. Thus, they pay more attention to companies’ social activities and seek
those that offer more responsible product choices. As sustainability comes to the
forefront, FMCG companies not only address how they present and package their
products but also what materials they use in their products. To meet consumer
demand, more and more FMCG companies offer compostable, recyclable, and reusable
packaging. Additionally, cruelty-free, vegan ingredients are on the rise not only in food
but also in non-food items such as cosmetics and cleaning products.

40
Flexi-Hex produces Plastic-Free Packaging

UK-based startup Flexi-Hex produces environmentally-sustainable packaging that

allows FMCG companies to reduce the amount of packaging waste. The startup offers
adaptable, plastic-free solutions with its patented honeycomb design made from
recycled paper. The startup aims to remove plastic from the packaging industry and
raise awareness of the threat that plastics pose to the oceans.

Vegshelf develops a Digital Platform for Healthy Products

German startup Vegshelf develops a digital Business-to-Business (B2B) platform

connecting healthy, vegan FMCG brands with online stores, supermarkets, and food
services. The platform enables round-the-clock exposure and direct access to buyers.
Vegshelf shortens the sales cycle, in turn, enabling FMCG brands to build and maintain
relationships with new and existing customers.

2. Customer Experience

With the demand for convenience increasing in the FMCG sector, companies strive to
significantly improve customer experiences. Startups employ Augmented Reality (AR)
and Virtual Reality (VR) to make products more engaging and interactive. 3D videos
and gamification attract and entertain customers while providing them with more
information about the product. Further, investing in improving customer experiences
builds trust and increases brand loyalty. To this end, more and more FMCG companies
are providing higher convenience with digital technologies.

Chekkit offers a Consumer Intelligence Solution

Nigerian startup Chekkit offers a consumer intelligence solution to improve customer

engagement. The solution brings FMCG companies closer to those buying their
products through personalized messaging and communication. Chekkit also enables
FMCG companies to push product surveys and messages to consumers based on their
purchase behaviors. Further, the solution runs automated reward campaigns and drives
repeat purchases using loyalty programs.

DRNKAR develops AR Solutions for FMCG

Singaporean startup DRNKAR’s solutions are AR Social Media, an AR Mobile App & AR
Platform. AR Social Media entices shoppers through ads and social media activity and
redirects them to make a purchase on the website. The AR Mobile App offers 2D and 3D
animation to display extended product details while the AR Platform enables FMCG
companies to control and manage their content and product information, as well as get
insights into consumer behavior. Overall, the startup’s solutions enable FMCG
41
companies to create memorable customer experiences and improve consumer
engagement.

3. Digitalization

Digitization is increasingly becoming a priority for FMCG brands as customers interact

with brands across multiple online and offline channels. Companies get access to
valuable data from these sources, including various social media platforms, web, and
mobile applications. Besides, it also allows FMCG brands to better engage with their
customers and convert one-time buyers into repeat customers.

Gladminds builds a Customer Connect Platform

Indian startup Gladminds offers a cloud-based platform that acts as a two-way

communication channel between brands and customers. Gladminds’ Connected
Platform allows companies to leverage their brand experience and create value for the
customer. For example, the startup enables optimizing and personalizing services,
marketing, and communication, among other functions. This connects brands with
consumers and ensures prolonged product support and engagement.

Repeat develops a Smart Replenishment Platform

US-based startup Repeat provides a Smart Replenishment platform to turn one-time

buyers into repeat customers. The startup powers frictionless reordering experiences
that are easy from the customer-end and increase revenue for companies. The solution
analyzes order data to determine baseline replenishment intervals and automates
replenishment workflows to increase operational efficiency.

4. FMCG e-Commerce

The share of sales coming from e-commerce is increasing exponentially. The outbreak
of the COVID-19 pandemic has further shifted consumers’ shopping habits towards
online channels. Brands are now building their online presence to boost their
engagement with consumers. Social media also plays a significant role in the world of e-
commerce as more items are sold via social platforms such as Instagram. To this end,
FMCG startups actively incorporate diverse media, leveraging mobile and headless
commerce, to market their products.

Crystallize offers a Headless e-Commerce Solution

Norwegian startup Crystallize provides an Application Programming Interface (API)-

driven e-commerce platform for subscription-based businesses models. The startup’s
software delivers APIs for product information and content management to digitize the
42
sales process. Headless content management is powered by a semantically structured
content engine. This enables brands to build and deliver content in different languages,
market and sell their products online, and offer product subscriptions.

Squarelovin offers Social Commerce Solutions

German startup Squarelovin offers solutions for Instagram analytics, social commerce,
and visual marketing. The startup enables brands to boost their e-commerce and visual
content strategy with user-generated content to build marketing campaigns, grow
engagement, and increase conversion rates. For example, brand-related content from
Instagram can be placed on all channels, including websites, other social media
channels, newsletters, and offline media.

5. Big Data & Analytics

FMCG companies actively leverage big data to innovate and compete in the industry. As
data is becoming more and more accessible with consumers shopping online, brands
explore new ways to increase relationships with their customers and gain insights from
their behavior. Data analytics explores customer preferences and behavior to provide
FMCG companies with a deeper understanding of their purchase habits. Big data
solutions allow brands to optimize communication with their customers and offer more
personalized experiences.

Zhimatech develops a Consumer-based Data Platform

Chinese startup Zhimatech builds a consumer-based data operation platform taking

into account offline behavior data within shopping centers. Through its Re-ID
technique, the startup accurately analyzes traffic flow within shopping malls. Combined
with online data, Zhimatech creates customer composition insights. The startup also
monitors on-site traffic distribution and helps determine the value of individual shops.
Further, this data is used to guide marketing activities from planning to promotion.

Massive provides a Consumer Reviews Analytics Solution

Italian startup Massive develops a consumer reviews analytics solution. The company
leverages AI to monitor e-commerce websites to read and understand consumer
feedback. The data collected provides FMCG companies with insights that support
consumer-centric business strategies.

6. Artificial Intelligence

AI-powered solutions, such as Machine Learning (ML) and Natural Language Processing
(NLP) are gaining popularity and creating opportunities for the FMCG industry. For
43
instance, voice-based systems support consumers round-the-clock to find products, in
addition to recommendation engines that provide personalized product suggestions. By
implementing AI-based solutions, FMCG companies provide an enhanced customer
experience, thereby increasing customer satisfaction and retention.

Letmetalk offers Conversational AI Solutions

Canadian startup Letmetalk provides AI-powered chatbots to drive up sales and

customer satisfaction. The automated system allows for smooth and personalized
marketing, as well as conversations with more than one client at a time. The startup
enables FMCG companies to make contact and build relationships with potential
customers and improve conversion rates.

Hosted Bots builds Chatbots and Virtual Assistants

Australian startup Hosted Bots develops chatbots and personal virtual assistants for
multiple platforms to increase customer engagement. The startup offers a modular
system in which companies create building blocks from small bots, group them
together to make a complex chatbot, and customize it according to their needs. The
chatbots can be used in multiple channels depending on the type of interaction
companies have with their customers.

7. Direct Distribution

More and more FMCG companies are leveraging direct distribution to increase
customer loyalty and ensure growth. For example, manufacturers directly interact with
their end customers through their own online and offline distribution channels. This
increases their profit margin and offers consumers a direct channel to reach their
favorite brands. This FMCG industry trend is closely associated with e-commerce
growth as well as the penetration of smartphones and the internet.

Ivy creates a Sales and Direct Distribution Platform

Singaporean startup Ivy builds an AI- and ML-powered platform to automate sales and
distribution in the FMCG industry. The solution enables companies to enhance their
customer experience, increase shelf revenue, and improve the productivity of their field
force. Ivy offers a Software-as-a-Service (SaaS) enterprise customer relationship
management (CRM) solution where users can manage stock, complete in-store selling,
and process orders. The solutions support multiple types of sales channels
simultaneously.

44
Merlin Tech Labs works on Cloud-based Mobile Solutions

Indian startup Merlin Tech Labs creates a cloud-based SaaS application to support
Direct-to-Customer (D2C) distribution. The app enables field sales teams to sell and
deliver more goods to people using optimized routes. Further, the app manages sales
and transactions, generates reports, and notifies customers when the order is placed,
delivered, and the payment is processed.

8. Internet of Things

As IoT evolves, its applications gain popularity in the FMCG sector. IoT devices are
automated and affordable, enabling FMCG companies to employ them in brick and
mortar stores, warehouses, and manufacturing facilities. One example of IoT device
implementation is to provide targeted messaging to consumers while they are
shopping. Another one is inventory management, both in stores and in warehouses, for
which IoT is widely used. In combination with related emerging technologies, including
ambient intelligence and smart objects, IoT creates new consumer interaction channels
and revenue streams for FMCG brands.

Ripen Apps creates iBeacon Solutions

Moving one step ahead of the traditional mobile app development approach, Australian
startup Ripen Apps creates innovative applications utilizing iBeacon technology.
iBeacons enable add-ons to send customers contextual, hyper-local, meaningful
messages and personalized ads on their smartphones as they evaluate a product.

Connected Fresh offers Plug-and-Play Sensors for Temperature Monitoring

US-based startup Connected Fresh offers plug-and-play sensors that offer FMCG
companies instant and continuous access to live data on storage and warehouse
temperatures. This includes sensor readings, historical data, and real-time notifications
to key stakeholders based on temperature fluctuation. Automatically and continuously
monitored products provide both companies and their customers peace of mind
knowing that the product is held at specific conditions and any deviations are reported
to team members with enough time to act.

9. Blockchain

The competition within the FMCG industry is increasing and brands invest in blockchain
to gain a competitive edge. Smart contracts and blockchain traceability allows FMCG
companies to understand their supply chain bottlenecks and make necessary
interventions. It also increases transparency for consumers by allowing them to track
the source of their purchases. Additionally, blockchain platforms offer cryptocurrencies
45
and loyalty programs that allow consumers to collect, exchange, and redeem points,
increasing customer engagement.

WABI offers a Digital Loyalty Token

Singaporean startup WABI develops an open platform that supports loyalty programs
and enables a direct two-way communication channel between brands and consumers.
Consumers use WABI to authenticate blockchain-protected products and share
feedback. FMCG companies, on the other hand, deploy targeted surveys and opinion
polls to generate consumer insights and drive effective decision-making. Additionally,
brands can run A/B tests with a live audience and test pricing, messaging, and color to
optimize their offerings to a specific target audience.

Greenface provides Self-Serve Blockchain Solutions

US-based startup Greenfence develops an open blockchain platform. The platform

connects the entire value chain of the FMCG industry and enables remote auditing and
certification. The startup allows brands to communicate directly with shoppers, thereby
increasing trust and interaction while removing the risk of fraud. This enables
marketers to control their budgets and allows consumers to participate and interact
with a greater level of anonymity.

10. 3D Printing

Additive manufacturing and its applications create disruptive solutions for the FMCG
industry. The vast amount of waste generated by use-and-throw consumer products,
from personal care to food packaging, prompts FMCG industry stakeholders to find
sustainable alternatives. 3D printing allows FMCG brands and manufacturers to design
and develop products that use eco-friendly materials and reduce plastic use. To this
end, FMCG companies leverage 3D printing for prototyping, designing, tooling, and
scaling production in a sustainable manner. Further, food companies are able to offer
extra nutritional value in their products by utilizing 3D food printing

Essentium offers a 3D Printing Platform

US-based startup essentium offers a 3D printing platform specifically for industrial

production. The platform allows companies the flexibility to create multiple product
iterations without impacting quality, strength, or performance. FMCG companies use
the platform for rapid prototyping, fine-tune designs, and printing high-precision end-
use parts and components.

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Mything connects Companies with Local 3D Printing Providers

Austrian startup mything is an online marketplace that connects companies with local
additive and digital manufacturers for on-demand 3D printing. The startup allows FMCG
brands to optimize production and lower costs by lowering delivery distances, stock
lead times, and material waste.

Discover all FMCG Technologies & Startups

The FMCG Industry Trends & Startups outlined in this report only scratch the surface of
trends that we identified during our in-depth research. Among others, sustainable
product development, manufacturing, and packaging, with the help of AI, Blockchain,
and advanced analytics, as well as opportunities to increase customer engagement,
experiences, and satisfaction will transform the sector as we know it today. Identifying
new opportunities and emerging technologies to implement into your business early on
goes a long way in gaining a competitive advantage. Get in touch to easily and
exhaustively scout relevant technologies & startups that matter to you.

Click to download our free Retail report

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47
 Future of FMCG Sector in India

With a growth rate of 14.7 percent, the FMCG sector has been projected to grow
to a market size of almost US$ 220 billion by 2025. With household goods and
personal care products amounting to up to 50 percent of FMCG sales in the
country, the FMCG sector has proven to be India's fourth-largest income-
generating sector. The evolution in the lifestyle of Indians across the semi -urban
and rural segments has primarily contributed to the surge in revenue generated
by the FMCG sector in the country. While the urban segment of India contributes
to almost 55 percent of FMCG sales, there has been a faster and broader growth
for the FMCG sector in rural India. As a result, almost 50 percent of the money
spent in rural India has been spent on an FMCG product.
With a growth rate of 14.7 percent, the FMCG sector has been projected to grow
to a market size of almost US$ 220 billion by 2025. Furthermore, with the sudden
change in the corporate working world, where work from home has become a
reality for many, the FMCG sector is also experiencing a change.
Retail has Gone Digital
The sudden surge in a digital marketplace across all social media platfo rms, along
with the sudden increase in online shopping of almost 10.7 percent of retail sales
executed digitally compared with the 4.7 percent in 2019.
The Government managed e-marketplace portal alone completed 6.87 million
orders worth US$ 15.67 billion from 2.0 million registered retailers and service
providers.
Smaller Brands are Evolving to Reach a Wider Audience
No longer is the FMCG sector a space occupied only by the big companies and
brands that have always been around. The past year made the masse s realize the
importance and potential of running their own business. The past year saw a
sudden increase in homegrown brands that promise to deliver chemical -free, all-
natural FMCG products. The COVID educated, environmentally aware consumer
base shifted their loyalty from big brand names to smaller newer brands and
products.
The ease of selling their products digitally or via social media made the private
labels brands capture a substantial market size in a relatively short time.
Selling Through Communities
Like other sectors, the FMCG sector is evolving through recommendations and
word-of-mouth sales. Research and market studies showed that almost 57
percent of shoppers buy a particular brand based on the recommendation by

48
someone they know and trust. Building a community through brand ambassadors
and targeting to get sales through that channel has helped private and prominent
brands in the FMCG sector make sales in the past year.
Direct and Doorstep Delivery
The profit margin in direct selling to the end consumer has tempted even the big
brands to set up a direct sales channel on multiple digital marketplaces and even
set up stand-alone websites and stores. To add to the online marketplace, most
brands have started delivering their products directly to the consumers'
doorstep. Brands with dedicated websites for consumer sales have reported an
88 percent rise in year-on-year consumer demand in the past year.
Environmentally and Socially-Friendly Brands
Climate change and a brand's contribution to the environ ment have always been
under scrutiny, but with the pandemic, most of the country's population evolved
their buying habits and decisions based on how much a brand spends to give
back to the community and how environmentally friendly the brand can be. As a
result, established brands like Dabur and Amul highlighted their community -
based improvements and received an FDI of almost billions in the past year.
Surge in Investments
With the new government regulation regarding investments in FMCG companies
and accepting foreign-directed investments, the sector has seen a sudden influx
of funds. As a result, the FMCG sector saw a robust FDI inflow of US$ 18.19
billion in the past year alone. The governments' incentives and the FDI funds
have helped the FMCG sector strengthen employment, establish a more robust
supply chain, and capture high visibility for FMCG brands across established retail
markets, reinforcing consumer spending and stimulating more product launches
across the FMCG sector.
With the increase in income and social media platforms highlighting the lifestyle
of others, there has been an increase in demand and buying capacity of branded
FMCG products in the rural sector.
Growing recognition, more accessible access, and improving lifestyle are the
fundamental growth operators for the consumer market. The focus on
agriculture, MSMEs, education, healthcare, infrastructure, and tax rebate under
Union Budget 2019 20 has impacted the FMCG sector directly. In addition,
initiatives undertaken to increase disposable income in the hands of ordinary
people, especially from rural areas, will benefit the sector.
Online marketplaces have performed a vital role for companies trying to enter
the FMCG segment. The Internet has participated in a big way, promoting a more
49
economical and more available mode to increase a company's market range. The
number of internet users in India is likely to reach 1 billion by 2025. It is expected
that 40 percent of all FMCG expenditure in India will be executed online by 2025.
The online FMCG market is projected to reach US$ 65 billion in 2022 from US$ 20
billion in 2017.

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FMCG CEOs see inflation eating into volumes

Demand for fast-moving consumer goods is expected to take a hit for the next two
quarters at least, chief executives of listed FMCG companies have told analysts, as rising
inflation leads to stress on margins and downtrading by consumers.

Strategic funding for new initiatives and launches could also face delays in the April-
September period, they have said.

“This is a unique situation where you have food inflation, general inflation (petrol and
diesel) and input-cost inflation,” Saugata Gupta, the managing director of Marico,
which owns the Saffola edible oils brand, told ICICI Securities analysts during a recent
interaction.

“The first quarter of FY23 (April-June) is expected to be painful for everyone… the pain
in terms of volume growth and margins may be for a while,” Gupta told the ICICI
Securities research team. “There are possibilities of pushback on strategic funding for
new initiatives.”

Besides raw material inflation, the ongoing Russia-Ukraine conflict has also disrupted
supply chains and oil shipments.

Industry executives said passing on inflation will lead to further downtrading —

consumers buying either cheaper products, smaller packs, or delaying consumption.

“There will be a softening of volume growth due to inflation,” said Sunil D’ Souza,
managing director of Tata Consumer Products.

“Inflation is a reality, and everyone should budget for the next 6-12 months
accordingly.”

Over the last quarter, prices of commodities such as crude oil, crude-linked derivatives,
packaging material, spices, palm oil and skimmed milk powder

have surged by between 23% and 42%, while freight costs have shot up by three to four
times.

The overall volume growth across large core categories such as toothpastes and hair oil
have declined, while that of shampoo has been flattish, said Mohit Malhotra, chief
executive of Dabur India.

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“This situation is likely to remain the same for some time due to inflation. In terms of
rural, we had better performance last quarter (December) but rural is declining for us
as well this quarter,” Malhotra said during an interaction with analysts

The rural markets, which were already under pressure in the December 2021 quarter,
have been impacted further, data showed.

According to retail intelligence platform Bizom, four out of six categories that were
tracked witnessed downtrading in rural markets in March.

“Rural India saw a spurt of growth last year with reverse migration. But in the short
term, rural consumers are facing income and liquidity challenges which would impact
consumption,” said Ram Raghavan, the managing director of Colgate-Palmolive, on an
analysts’ call led by ICICI Securities research head Manoj Menon. Raghavan will be
relocating to a global role at the oral care company later this month.

For the quarter ended December 2021, rural market consumption declined 4.8%,
according to market measurement firm Nielsen. Market volatility and inflationary
trends will continue to impact consumption in the March quarter, the US-based
company said.

“Yes, there is a slowdown in rural markets. If the Ukraine crisis would not have
happened, rural would have recovered but with food inflation it will continue to be
stressed,” Gupta of Marico said.

Listed FMCG firms are scheduled to announce their March-quarter earnings over the
next three weeks. Leading FMCG companies including HUL, Nestle, ITC, Dabur, Marico
and Britannia have resorted to price increases of between 5% and 20% since October
last year.

“We cannot transfer the full inflation to the consumer; the difference between CPI and
WPI has to be absorbed by companies,” Dabur’s Malhotra said.

Consumer Price Index and Wholesale Price Index are measures to calculate the price
changes of goods.

He said growth is currently coming from pricing, even as volumes are flattish. While
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some inflation is good, such high inflation has a negative impact, he added. “Going
forward, inflation will depend on the Ukraine crisis; we are taking cover, but they are
not enough,” he said.

Brokerages have forecast that the March and June quarters could see flat revenues and
a high-single-digit volume decline.

“Rise in key input costs is a concern, especially for staples, paint and quick service
restaurant firms; we expect product price hikes, despite which margins are at risk,”
Jefferies wrote in a report.

Indigo Paints managing director Hemant Jalan said that volume growth would be muted
for the entire industry. “Much of it is due to over-stocking by the dealers due to price
increases in December, so they have a higher inventory base,” Jalan said.

Raghavan of Colgate-Palmolive said with the third Covid-19 wave receding, consumers
intend to spend more, but how much of this leads to consumption will depend upon
the impact of inflation on income levels

Delays in the replacement cycles of toothbrushes, for example, could play out, he
added.

“Consumption in certain categories can be postponed or delayed. We are competing

with a lot of things like data plans, as consumers have limited budgets,” he said.

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 Government initiative

Some of the major initiatives taken by the Government to promote the FMCG sector in
India are as follows:

 In November 2021, Flipkart signed an MoU with the Ministry of Rural Development of
the Government of India (MoRD) for their ambitious Deendayal Antyodaya Yojana –
National Rural Livelihood Mission (DAY-NRLM) programme to empower local
businesses and self-help groups (SHGs) by bringing them into the e-commerce fold.

 Companies are counting on recent budget announcements like direct transfer of Rs.
2.37 lakh crore (US$ 30.93 billion) in minimum support payment (MSP) to wheat and
paddy farmers and the integration of 150,000 post offices into the core banking system
to expand their reach in rural India.

 On November 11, 2020, Union Cabinet approved the production-linked incentive (PLI)
scheme in 10 key sectors (including electronics and white goods) to boost India's
manufacturing capabilities, exports and promote the 'Atmanirbhar Bharat' initiative.

o Developments in the packaged food sector will contribute to increased prices for
farmer and reduce the high levels of waste. In order to provide support through the PLI
scheme, unique product lines—with high-growth potential and capabilities to generate
medium- to large-scale jobs—have been established.

 The Government of India has approved 100% FDI in the cash and carry segment and in
single-brand retail along with 51% FDI in multi-brand retail.

 The Government has drafted a new Consumer Protection Bill with special emphasis on
setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and
timely delivery of justice to consumers.

 The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the
FMCG products such as soap, toothpaste and hair oil now come under the 18% tax
bracket against the previous rate of 23-24%. Also, GST on food products and hygiene
products has been reduced to 0-5% and 12-18% respectively.

 GST is expected to transform logistics in the FMCG sector into a modern and efficient
model as all major corporations are remodelling their operations into larger logistics
and warehousing.

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 HUL vs ITC: Stock and Business comparison
BY THE COMMON INVESTORS ON MAY 19, 2021
Hindustan Unilever Limited (HUL) and ITC are two of the biggest FMCG companies in
India. The stock performance of the two companies, though, have been in different
directions.

While HUL has created immense wealth for its investors, ITC has given negative returns
to those who have stayed invested in the last 5-6 years.

Let’s dig deeper and learn more about the two companies.

HUL Company Info:

 The company was founded in 1933.

 It’s a subsidiary of the British-Dutch company Unilever.
 In 1956, Hindustan Vanaspathi, Lever Brothers and United Traders merged to
become Hindustan Lever Limited.
 In 2007, the company was renamed as ‘Hindustan Unilever Limited’.
 HUL is a well-diversified company producing foods, beverages, personal care
products, cleaning agents, several other consumer goods and water purifiers.
 In a research, it was found that 9 out of 10 households in India use HUL products.
 HUL generates revenues in excess of ₹ 40,000 crore, making it one of the largest
FMCG companies in India.
 In May 2020, HUL is the 4th most valuable listed company after Reliance, TCS and
HDFC Bank.

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 .

ITC Company Info:

 The company was established in 1910 as ‘Imperial Tobacco Company of India

Limited’.
 It was renamed to ‘India Tobacco Company Limited’ in 1970.
 It was renamed again in 1974 to its current name ‘ITC Limited’.
 ITC completed 100 years of business in 2010, making it one of the oldest
companies in India.
 The company is mainly into Tobacco, other FMCG, Hotels, Paper, Packaging and
Agri Commodities business.
 The main brands of ITC include Gold Flake, Aashirvaad, Bingo and Sunfeast.
 ITC is the market leader in cigarette business with more than 85% market share.
 ITC generates revenues in excess of ₹ 52,000 crore, making it one of the largest
FMCG companies in India.

In May 2020, ITC is the 10th most valuation listed company in India

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HUL vs ITC: Key Financial Figures

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 HUL vs ITC: The Differences

 As of May 2020, HUL is 5 times more expensive than ITC.

 However, the Net Profit over the last 12 months of ITC is 2.2 times more than
HUL. Yet, the market has valued HUL 2.3 times more than ITC.
 While sales growth of the two companies is similar over a period of 5 years, the
Net Profit of HUL has compounded at the rate of 11.5% – significantly higher than
the 7.88% of ITC.
 HUL and ITC are the top FMCG companies in India. However, the tobacco
business of ITC is its cash-cow, contributing more than 80% to its earnings before
taxes.
 ITC doesn’t get the valuation it deserves because of poor capital allocation. It’s
FMCG business has shown excellent growth over the last few years, but the ROCE
(return on capital employed) is poor.
 ITC’s Hotel business too is capital-intensive – requiring more capital than its
Tobacco and FMCG business, but generating significantly lesser earnings before
tax.
 The issue for ITC lies in two areas mainly – its Hotel business and the unallocated
capital, which it plans to distribute as dividend.

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 Biggest Challenges in FMCG

Here are some of the most interesting Trends and challenges in FMCG Industry -

1. Big Data

Data explosion is underway as the ability to acquire, store, and process data continues
to improve exponentially. The FMCG world already had weekly consumer sales, brand
tracking, consumer panels, shopper data from friendly and well-compensated retailers
and another few hundred metrics depending on which data/analytics organization you
talk to. 95% of the data being generated and sold to eager marketers and analysts is
useless. The smarter organizations will buy only the relevant data (manage information
costs), deduce the correct linkages to consumer behavior and use it effectively to
develop products, manage trade and communicate effectively to consumers.

2. Social Media

Information now moves at a rapid speed. A tweet, FB post or a YouTube video can go
viral in hours. No longer can an organization sell a product that was unsaleable in a
developed market due to health concerns in another less developed market as
regulations had not caught up. Regulations will take the time to catch up but consumer
information is just a Google search away. Information dissemination will be rapid and
with no place to hide. Smarter brands will employ innovative methods to use this
effectively to reach globally while limiting brand communication costs.

3. Online Grocery Shopping

This is growing rapidly in most developed markets albeit off a small base. While most
major brick and mortar retailers now offer online shopping and delivery, the birth of
smaller online retailers with tight product lines and deeper prices will begin to emerge.
And when some of this tight range online retailers grow big, brands which grew on the
strength of adding a new flavor or fragrance every quarter will struggle as category and
range management for a 500 SKU business will be easier, but brutal for brand owners.

4. Environment & Sustainability

Organizations that can demonstrate sustainability across their total ecosystem will
benefit from stronger consumer bonding scores. However the ability to charge a
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premium to cover increased costs will remain limited as consumers will increasingly see
sustainability as a given rather than a perk to be afforded by few. The Tesla of the
FMCG world is still to be created - using new innovations and technologies.

5. Ageing

How different would a supermarket product range look if everyone shopping there was
50+? Filled with fresh foods, fish (salmon), wholegrain and few premium sweet
offerings along with a large aisle of health supplements. This demographic has more
money and will place a higher value on food quality. The challenge will be for brands to
appear relevant to this aging demographic while being ‘cool’ enough to attract the
younger consumers.

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 FMCG trend 1: Consumers are looking for convenience
As consumers and their families live busier lifestyles, they are demanding more
convenience, especially when it comes to getting meals. There has been a proliferation
of services specializing in restaurant delivery, like Uber Eats, Grubhub, and Deliveroo,
and others, such as Blue Apron in the USA and Les Commis in France, that distribute
meal kits with recipes and ingredients to consumers’ front doors’. Supermarkets are
also upping their game by offering a large selection of ready-to-go meal options, from
pre-cut fruit-vegetable-nut packs to three-course dinners. FMCG makers are responding
to the desire for convenience in different ways. For example, some are improving on
the frozen “TV dinners” and microwavable dishes of yesteryear by launching a wider
variety of easy-to-prepare meals that are fresher and better-tasting than their
predecessors. At the same time, there is a growing selection of new food and drink
products that are conveniently packaged, all-in-one meal replacements such as Vega
bars and Soylent drink powder.
FMCG trend 2: Health is an important consumer preference
Seemingly healthier low-sodium, reduced fat, and sugar-free products have been
available for decades. However, other options that used to be found only in specialty
health food stores have made their way into “normal” supermarkets as consumers
want food and beverages that they believe will so less harm or actively improve their
health, day-to-day performance, and general well-being. Products such as plant-based
protein milk alternatives (like soy or almond drinks), lab-grown “cultured meat,” and
alcohol-free “mocktails” are gaining wider acceptance and availability. Allergen-free
products are also becoming more popular amongst those who don’t have allergies. For
example, whereas in the past products such as gluten-free baked goods and beers
appealed almost exclusively to those suffering from celiac disease, consumers who
don’t suffer from a gluten allergy are gradually adopting these due to the perceived
health benefits of a gluten-free diet.
FMCG trend 3: Consumers are environmentally aware
Consumers are becoming more conscious of the negative impact of FMCG production
and its byproducts. Products labeled as “organic” and “local” have broadening appeal
as does the adoption of more plant-based foods. Consumers who still choose meat,
dairy, poultry, fish, etc. can also choose products that are “antibiotic-free,” “grass-fed,”
“free range,” etc. And it’s not just the product itself, but how the product is packaged
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that will impact consumer choices as more and more consumers opt for plastic-free
solutions. Messaging around sustainable improvements will help consumers make
choices that are ethical ones that positively impact animal welfare, sustainability, and
the environment as well as their individual health.
FMCG trend 4: Consumers want an experience
FMCG makers have become aware that consumers – especially Millennials and those
from Generation Z – are interested in experiences more than actual products.
Therefore, industry players are looking to create experiences around their products and
encourage sharing among consumers by investing in digital capabilities to enable more
personalized communication via social media and community management.

Furthermore, FMCG makers are launching more products that grab the attention of
consumers, such as Coca-Cola cans with names on them, or snacks with more extreme
flavors, such as hot and spicy Doritos Blaze. These products encourage consumers to
share their experiences online and generate conversations with their peers to create
better return on investments in marketing, not to mention a treasure trove of data to
further accelerate and inform marketing efforts.
FMCG trend 5: Leveraging technology
Technology is a trend that has been around for a while, and will stick around for a while
whilst constantly transforming and evolving. Nowadays, it’s more important than ever
for consumers to be at the cutting edge of this technology as it evolves. From VR, AI,
and AR, there are many avenues FMCG brands can take to stay ahead of the game.

Smartphones are now an extension to reality, and so brands need to find new ways
to reach customers, enhance their experience, encourage engagement and offer up
exciting products and ideas that align with their values. The use of data can help a
brand to understand how their customers interact with them at present, and how
they can utilise consumer insights to work in their favour.

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 Top 7 FMCG Digital Marketing Strategies in India
With the advent of social media, expanding data networks and spread in the usage of
smartphones and the boom of eCommerce stores, the traditional marketing method for
FMCGs are under attack. Long gone are the days where a FMCG would have only one
advertisement they used for a product everywhere, with digital marketing, each
promotional push can be customised to meet the consumers’ needs.
Let us now discuss the top 7 trends in digital marketing strategies of FMCGs in India.
1. Customer-Centric Content Marketing:
Traditionally, FMCGs marketed their products by only talking about its attributes. TVs,
newspapers and radios all had the same message about what the product was and
does. Such marketing was not very effective because it was not attractive and did not
appeal to people individually. With the arrival of digital marketing, the strategies of
FMCGs in India have changed drastically.
Through digital marketing, the customers get the content which revolves around them.
They can engage and talk about the brand, show other people what they use and help
the brand reach recognition for their efforts. FMCGs have capitalised on this trend
heavily. With user-centric content marketing, a customer receives more personalised
branding and more relevant advertisement is shown to them.
2. Creating presence with social media
According to a survey, an average adult spends about 2 hours and 40 minutes on their
social media applications daily in 2020. This is a massive amount of time where
customers of a brand are highly engaged and can be easily reached. For an
organisation, it is now a must to have their presence in all the platforms relevant to
them.
Every social media platform is different and effective for different kinds of audience.
While Facebook appeals well to age groups, Instagram is highly effective for marketing
to the youth. LinkedIn is effective for increasing awareness about the work of an
organisation, especially with professionals from the age of 25 – 45. YouTube is a great
platform to put on the visual and long-form content, where Pinterest is great for
running informative campaigns and pictorial content.
An organisation needs to identify the best social media platforms for their purpose and
maximize their efforts on them.
3. User-generated content
Traditional methods only allowed for one way communication, that is, the company
promoting its products to the users. Now with social media, the ability to communicate
between companies and users has changed things. Smart organisations let their users
do their promotions for them through applying UGC or User Generated Content
strategy.
In UGC, a user is asked to promote the product or service through putting a story or
post, tagging them and sharing hashtags. Such content acts as a great piece of digital
word of mouth and is considered to be one of the most authentic and trusted sources
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of digital marketing. It engages the user to talk about the brand at the same time
increasing the brand’s perceived authenticity by the people who see their friends’ posts
and stories.
4. Increasing appeal through Influencer Marketing:
People like to believe other people they look up to, and that precisely what influencer
marketing is based on. An influencer is someone with some form of skills they are
famous for. They command a public presence and are trusted for their word. Through
influencer marketing, a company asks them to produce content using the brand’s
product or service, and drive conversation amongst their fans regarding that. An
influencer can add a lot of legitimacy to a brand and its product, this is especially true
for FMCG brands.
5. Automated Email Marketing
As people get used to more and more email marketing, they get bored and unaffected
by them. The newest innovation in marketing is automated email marketing. While
earlier mass mailers for sending general messages and offers were used, now we use
action and preference generated email journeys to give specialised experience for all.
This email marketing format is also known as Drip Marketing.
For example: When a customer first signs up, one email will be sent regarding that.
Now if the customer after signing up goes and puts an item in their online cart, but
does not check out, another email will be sent to remind you to complete your
purchase and so on.
Automated emails are a great way to influence a customer. By making specialised
action triggered emails, you can communicate to your customer more appropriately
and be better able to guide them to make a purchase. Such emails also assist you in
retargeting consumers who have already purchased from you.
6. Hosting in-house eCommerce Store
This might sound absurd, but many FMCGs do not have their eCommerce stores on
their website. They rely on digital marketing to increase their offline sales but do not
use the easy way of directly selling to the customer online. Now is a great time for the
FMCGs to start direct selling through their websites as increasing numbers of
consumers are beginning to shop online. FMCGs should also have their portals on
websites like Amazon and Facebook to capture their customers digitally, everywhere.
7. Online Reputation Management
When customers shop online, one of the key decision making factors before making a
purchase is online reviews. All the eCommerce stores have a review section where
anyone who has bought the product can put a review. These reviews help in increasing
the authenticity of the product at the same time develop trust with the customer that
the product quality and usage is satisfying.
Customers who write reviews are also some of the most engaged users of a brand,
hence it is very important to talk to them. This process of engaging the users is called

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ORM. An FMCG can capitalise on every positive review and smooth overall negative
reviews with a proper ORM strategy.
Now that we have looked at the latest trends in Digital marketing strategies for FMCGs
in India, let us now discuss three separate case studies to understand where and how
these trends can be used in an FMCGs’ digital marketing strategy. We will look at the
research and then solutions proposed for each brand and learn how to implement a
business strategy using deep insights.
FMCG Digital Marketing Strategy Case Studies
Now that we have learned the various forms of digital marketing strategies that can be
employed by the FMCGs to better attract customers, let us now look at some research
and FMCG case study examples on how we can apply these tactics and strategies we
learned to real-life situations.
All these strategies that we are presenting are solutions created by our brilliant
students. They have taken up top brands in India and done in-depth research about the
brands and come up with innovative solutions, using these latest trends and strategies
to make holistic digital marketing strategies.
For this article we have picked our favourite FMCG presentations by our students,
showcasing different strategies in three separate spheres of digital marketing. You can
even download free FMCG case studies.

1. Real Fruit Juice- ORM and Paid Marketing:

Real Fruit Juice is one of India’s most trusted and oldest FMCG brands and a household
name. Launched in 1997, the fruit juice is one of the most recognised brands in India.
Serving millions, the juice is now sold to customers through the medium of eCommerce
and websites. To keep pace with the changing world, they require digital marketing to
maintain the market share. We now look at the deep insights collected by our students
regarding Real Fruit juice and proposed solutions to improve their website through
search engine optimization. Our student has created an entire sample digital marketing
plan for Real Fruit Juice.

a. Research and Competitor Analysis

To better assess the brand at hand, we will first look at the current state of digital
marketing is done by them. We will look at the competitors of Real Fruit Juice and the
digital marketing presence of these FCMGs.
SWOT Analysis
SWOT Analysis or Strength Weakness Opportunity and Threats analysis is a method of
charting out what a company does best and what are the factors it should be worried
about. It helps in giving a good overview of the state of the company.
Real Fruit has an excellent offline and word of mouth presence, but their approach to
digital marketing has been poor and their after-sales online relations management very
stale.

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Website Analysis
A website is the online address of a company, everyone visits the main website of any
company before they make an online purchase. Most companies host eCommerce
portals on their websites as well, making it a crucial part of any marketing strategy to
focus on the website building and search engine optimization.

Dabur’s website (Real Fruit Juice’s parent company) is decently well built and targets a
wide variety of keywords and has good domain authority. This shows they can capture
a big amount of users through just organic posts.
Now looking at the negative aspects of the website, nearly half of the people return
from the website very quickly (bounce rate) and loading time is a whopping 8. 12
seconds. This shows that the website is not user friendly.

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Social Media Presence
Many companies create social media profiles but due to lack of concentrated effort and
strategy, the profiles tend to underperform. Real suffers such a situation especially on
Instagram, YouTube and Pinterest.

Competitor Analysis
Real Fruit Juice faces its main competition from Tropicana and Paper Boat. Both these
fruit juice companies have comparable quality and offer unique propositions to the
consumer. When comparing the social media presence, Real fairs badly against its
competitors.

b. Solution Strategy Proposed

As identified earlier, real juice suffers from weak ORM and online presence. The
student team has identified these pain points and created the following solutions.
These strategies are only a part of the sample multi-channel marketing plan they have
created for these FMCG products.
Online Reputation Management
The most engaged and interested customers leave comments on websites such as
Amazon And Grofers on products they bought earlier. According to surveys, 78% of
consumers trust reviews as much as personal recommendations. This makes ORM very
crucial, especially for physical products.

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Paid Posts
All platforms collect customer data and their interests. A company can make more targeted
and differentiated ads for each customer of different interests and appeal to them personally.
Paid posts are a great way to acquire new and high-quality customer leads for your brand.
Here are the ad seats and customer targeting parameters for each ad:

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3. Veeba – Influencer Marketing and Blog Strategy
Veeba is sauces and spreads FMCG in India. Founded in 2013 by Viraj Bahl, the brand is
known for its low-fat content sauces of all types and flavours. The company offers more
than 65 various sauces and brings exotic flavours to India. You can check out the entire
sample digital marketing plan for FMCG cosmetic products.

Influencer Marketing
Food is a visual experience as well as an oral experience. To sway customer sentiment
positively in Veeba’s favour, the student team proposes a budget of ₹5,80,000. They
will employ the following food/ lifestyle influencers on Instagram.

Blog Strategy
Blogs are a great way to spread information to the customer about the product and its
possible uses. People who love cooking, love learning about it even more! To capitalise
on the people who google search recipes and uses of sauces, the students have
prepared a list of blogs that can be written to garner the food enthusiast traffic.

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 Conclusion
Digital marketing has introduced a paradigm shift in the marketing of FMCGs in India.
Gone are the days where one common messaging was sent to the people, instead,
marketing has gotten personalised and customer-oriented. Marketing process now
involves a great deal of interaction with customers, and hence they need to be kept
happy and interested constantly.
Fast Moving Goods or FMCG Industry is a highly competitive one and has multiple
brands competing with each other. Due to the high competition, neck to neck pricing,
and multiple variants for each product, FMCGs direly to gain the attention of their
customers.
Customer loyalty is very important in the FMCG industry. All the marketing trends,
User-Generated Content, Online Reputation Management, Automated Email
Marketing, eCommerce, Influencer Marketing, Social Media, User-centric content- all
these trends of digital marketing aim to distinguish a company to its customers and to
gain their loyalty.

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