What is the FMCG?

INDIAN FMCG INDUSTRY

at a glance…..
• The Indian FMCG sector is the fourth largest
in the economy and has a market size of
US$13.1 billion

• FMCG in India has a strong and competitive

MNC presence across the entire value chain

• It has been predicted that the FMCG market

will reach to US$ 33.4 billion in 2015 from US
$ billion 11.6 in 2003
FMCG – MAJOR DOMESTIC &
FORIEGN PLAYERS
SWOT ANALYSIS
Hindustan Lever Ltd.

IS NOW
Hindustan Unilever Ltd.
 INTRODUCTION
• India's largest Fast Moving Consumer Goods company with 100
factories across India.

•In 1931, first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company,
followed by Lever Brothers India Limited (1933) and United
Traders Limited (1935).

•HUL formed in November 1956;

•The Anglo-Dutch company Unilever owns a majority stake in

Hindustan Unilever Limited.

•One of the country's largest exporters and recognised as a

Golden Super Star Trading House

•The mission – “add vitality to life.”

U
 COMPETITIVE SITUATION OF HUL WITH ITS
COMPETITORS
80%
70%
60%
50%
40%
30%
HUL
20% COMPETITOR
10%
0%
PRODUCT SEGMENTATION OF HUL
Revenue Percentage:
 STRENGTHS

• Strong brand portfolio, price quantity & variety

• Innovative Aspects

• Presence of Established distribution networks in both

urban and rural areas

• Solid Base of the company

• Corporate Social Responsibility(CSR)

 WEAKNESS

• "Me-too" products which illegally mimic the labels and

brands of the established brands

• Strong Competitors & availability of substitute

products

• Low exports levels

• High price of some products

• High Advertising Costs

 OPPORTUNITIES

• Large domestic market – over a billion

populations

• Untapped rural market

• Changing Lifestyles & Rising income levels,

i.e. increasing per capita income of
consumers

• Export potential and tax & duty benefits for

setting exports units
 THREATS

• Tax and regulatory structure

• Mimic of brands

• Removal of import restrictions resulting in

replacing of domestic brands

• Temporary Slowdown in Economy can have

an impact on FMCG Industry
 SUNSILK….
• It is a hair care brand, primarily aimed at women (in
the age group of 16-40)

• Launched in 1954 in United Kingdom and currently

it is marketed in more than 69 countries in Asia,
Latin America, the Middle East and North Africa

• Launched in India in 1964

• Sunsilk had a range re-launch in 2006 followed by

launch of new variants in 2007 when conditioners,
Livon and hair masks were introduced
transforming Sunsilk into a complete
hair care brand
 PRODUCT & BRANDING STRATEGY
Promotional strategy

• Innovative campaigns such as ‘Hairapy’ and ‘Life Can’t Wait’

were launched to attract women to the brand

• Media platforms used (Print & Electronic media)

• Internet campaign, Demo campaigning & Free sample

distribution

• Hoardings, Sponsorships, Actresses as spokespersons

• Enhancement of product mix according to changing consumer

preferences

• CO-CREATION COLLABORATION - Sunsilk has come up with a

new promotional campaign GOOD HAIRDAYS in six major
cities in collaboration with famous hair stylists of the country.
 PRICING…
• The research department determines the price usually by
using focus groups

• The price of Re 1 and 2 for Sunsilk shampoo sachets

shows how the price also reflects a concern to make the
purchase more convenient and affordable

• Sunsilk is also available in Rs 45 and Rs 169 price bottles

to cater to the demands keeping in mind the wants of
customers

• The primary importance of this value-based pricing is that

the product demand will be much higher if its price is in
line with the customer’s perception of its value..
Communication Strategy
INNOVATIVE AND UNIQUE STRATEGY

• Hindustan Unilever launched the Gang of Girls website in June ’06

“India’s first online girl community concept”

• Gang of Girls site pushed online and via TV and print & Direct contact with
target audience.

• Gang of Girls events at 60 college festivals, malls and multiplexes across India.

• 25,00,000 registrations to Gang of Girls site

• Plans to make GOG GLOBAL

• Approaching rural areas – SUNSILK SAHELIAN

PRODUCT AND BRANDING STRATEGY
• Axe deo was launched in India during 1999

• Axe is the naughtiest brand in the Indian market The brand

is targeted at male aged 16-25 it targets all 'Young at heart"
naughty guys

• The brand has its brand values of Cool, Fashionable and

Stylish

• Axe at that time was the leading men's deo brand in Europe
and was popular in India in the Grey market ( available in
duty paid shops)

• HLL may have launched this brand inspired by the volume of

Axe sold in the Grey market

• Axe in 2002 was having a market share of over 35% and

soon HLL phased out Denim brand to concentrate on this
Star
 PRICING STRATEGY
• The brand launch was very quiet and theoretically the
brand was having the strategy of Slow Skimming i.e
High Price Low Promotion

• HLL had the brands Denim and Rexona and was ruling
the market

• Axe was priced at a premium above the Denim brand

which was positioned as a male deo brand

• Axe initially was launched in the fragrance Java,

Alaska and Atlantic

• At that time, the deo market was a nascent one with

an estimated market size of Rs 72 crore
COMMUNICATION STRATEGIES
• For those who propound Glocalisation , AXE is an exception

• The biggest strength of this brand is the underlying message or

the DNA which is that the brand users are High on Confidence
and always for the Axe users, Girls Makes The First Move

• The brand has started its Internet based marketing initiative in

India with Axe Land which involved a virtual trip to the Axe world

• The print ads of Axe won several accolades in various ad

events

• Besides Print, the brand also uses outdoors to its

maximum impact

• Axe is a classic example of 360 degree branding effort

 CONTINUED
• One of the reports term the marketing strategy of Axe as "
Adventurous Marketing" That is true because its risky as
the brand deals with Girls & Seduction

• The brand assumes that Men wants( Likes) to be Seduced

That feeling ( of being seduced) gives a big boost of self
confidence to a man Although many brands take this
proposition, Axe just made it perfect

• Lot of ads where girls are seen drooling over Hunks in

Motorcycle or in Ready mades, or even in Inner wears, but
in most of the Axe ads, there are no Hunks, only very
ordinary or even skinny kind of people getting assaulted
by beautiful girls

• That makes the brand more approachable Had Axe used a

Hunk, the promotions couldn't have been so effective
 CHANNEL MANAGEMENT
• In India supermarket and hypermarkets have only 2%
market, organized retail has 13.9% market large part
of it is in metro cities

• So in metros distribution channel is malls and big

organized stores

• But in tier 2 & 3 cities distribution is done through

local kirana shops mostly
 PEPSODENT
• Pepsodent is a 17 year old brand that offers various oral
care solutions to specific need based solutions

• Pepsodent was launched in 1993 in India and since then

the brand has raised the benchmark on Oral Care solutions
in India

• Pepsodent has a range of toothpastes and toothbrushes

that could take care of specific oral care needs. Pepsodent
toothpaste fights germs to protect teeth against cavities
and gives strong teeth, fresh breath and healthy gums

• Pepsodent as an oral care expert offers solution to specific

problems like bleeding gums and sensitive teeth.
 Key facts
• Endorsed by FDI ( the largest dental association
globally

• Among the most trusted brands in India (Brand Equity,

Economic Times, India)

• Also sold as Mentadent, Zhonghua, PS and Signal in

other countries
 BRANDING STRATERGIES

• Pepsodent offer of free dental check-ups

• Pepsodent included the germ indicator

• Pepsodent then came with dental insurance

• Pepsodent connects directly with kids and their

parents
 PRICING STRATEGIES

• A 40-gm Pepsodent toothpaste pack priced at Rs

10  targeted at the rural market launch in October
2002

• Low Price Points: HLL sells the maximum number

of its products in sachet packs in rural areas. For
e.g.:- Pepsodent toothpaste is available for Rs.4 

• Highlights Value AND not price

COMMUNICATION STRATEGIES
• Pepsodent G Helps healthy teeth require healthy and
strong foundation- healthy gums

• Pepsodent 2 in 1 is a unique combination of paste and

gel in one toothpaste. Long lasting protection: Its
advanced germy-check formula fights germs even
hours after brushing to give superior protection.

• Pepsodent Complete 10 fights problems of your mouth

which no other toothpaste does
 CONTD…
• Pepsodent Whitening helps healthy white teeth
for your family

• Pepsodent Regular helps in long lasting germ

protection for your family

• Pepsodent Center Fresh is diluting its core

positioning of germ protection by adding one more
feature. i.e. Freshness
 CHANNEL MANAGEMENT
• 2000+ Suppliers and associates & 4000 Redistribution stockists Covering
1 million retail outlets

• Distribution systems focus to enable easy access to their brands, touch

consumers with a three- way convergence – of product availability, brand
communication, and higher levels of brand experience

• An IT-powered system, with the name RS Net has been implemented to

supply stocks to redistribution stockists

• For this, stockists have been connected through an Internet - based

network, called RS Net, for online interaction

• The objective is to make the product product available at the right place
and right time in the most cost effective manner

• Rs Net is part of Project Leap, HUL's end- to-end supply

 Major Competitors
Cavin Kare s Natural Fairever :
The unique combinati on of saffron and milk has made it the beauty secret of millions of beautiful
Indian women.Fairever s market share is 15 in India as a whole and 17 only in Southern India.

Godrej s FairGlow :
Fairglow Fairness Cream has an excellent floral perfume and attractive packaging. FairGlow s market
share in fairness cream is about 5%

Emami s Naturally Fair:

Emami is the biggest competitor of Fair & Lovely. Emami s market share in Fairness Cream is 6%.

Emami's Fair and Handsome :

Fair and Handsome cream has become a brand worth 100 crore,since its launch in 2005. The
total market size of the male fairness category in India is about 150 crore today, of which F
air and Handsome,the market leader, captures almost 70 per cent mark et share in its category
and is also doing extremely well in West Asia.
 Positioning Strategy
Positioning is fight for consumer mind. Fair and lovely is very well positioned in the mi nds of the
consumers. Fair & lovely is the first product that comes to mind of Indian consumers i n case of
fairness creams.
In the initial stages it positioned itself as fairness cream for the young women who wants to
attract a better looking husband. The value proposition lucidly communicated to the consumer
base read, "Get noticed by the man of your life.“

Later i t positioned itself as a brand offering emotional benefits for achievers who actively seek
solutions and do not look at marriage as the ultimate source of personal achievement. Fair &
Lovely thus became a brand which communicated a message that Fairness leading to Beauty
leading to Good husband to Fairness leading to Self-confidence leading to Good career.

Targeting:
The target segment for the brand is middle class Indian women who want fairer skin. The
message is conveyed in ads where women using the brand become fairer and get ahead in
life by attracting men and jobs. Of late, the range of the products under the brand is e
tended to target the consumers seeking specific benefits apart from fairness by introducing Ayurvedic
Fairness cream, Anti-Marks cream and Multi vitamin cream.
 Branding Strategy
The Brand
Equating fairness with beauty has turned out to be a wonderful concept for the fairness creams industry with
Hindustan Unilever s Fair & Lovely capturing nearly 53% of the market share. The company, enjoying a
brand value of 1100 crore, has taken special care in its promotions and advertisements, which showcase
darker skinned women turning fairer on using the cream.

Evolution of the Brand

Hindustan Unilever's star product in the fairness creams segment had evolved into one of the most
successful brands over three decades in as many distinct phases. Phase 1 saw the launch of the product
in 1978 on the basic premise that "younger women wanted to have fairer skin in order to attract a
better looking husband." HUL marketed this brand as a beauty cream capable of providing fairness
within 8 week s. The value proposition lucidly communicated to the consumer base read, "Get noticed by the
man of your life.”

During Phase 2 of Fair & Lovely's evolution, the brand talked to a younger college going woman who is
self confident and more modern in her outlook and considers home remedies for facial care to be old
fashioned.
In Phase 3, it further metamorphosed into a brand, offering emotional benefits to achievers who actively seek
solutions and do not look at marriage as the ultimate source of personal achievement. Fair & Lovely
thus became a brand which communicated the ideology that Fairness leads to : Beauty - to Good
husband to Self-confidence which shapes a good career.
 PRICING Strategy
Affordability is determined by two factors
• Income of the consumer
• Price of the product & services
Factors influencing the price
• Internal Factors Cost, Pricing Objective
• Eternal Factors Customer, Suppliers, Competitors

“Pricing Objectives
• Survival
• Market share

Pricing methods
• Mark-up pricing
• Product line pricing
• Promotional pricing
• Fair and lovely has always focused on lower and middle
class socio-economies and priced taking the budget
constraints of those people into consideration. However,
newly introduced version Anti Marks has been priced a
bit higher which works towards reducing marks on
consumers face.
 Communication Strategy
During Launch Phase
Building efficacy and safety as it was the first brand that was offering real, tangible fairness.
After the Launch Phase
It was an era of romantic movies so Fair & Lovely concent rated on women and getting for them
their dream man, which was considered an achievement then. In addition, Fair & Lovely
concentrated on married women looking to keep spark alive in the relationship.

Destiny Phase
This phase is about achieving ones dreams and desires. The key communications that epitomises
this phase are Airhostess ad, commentary ad and the Ayurveda ad.
T.V. Promotion : Fair & Lovely always casts common
faces so that people are able to relate with them and heir
achievements seem realistic. The ads, just launched, speak
of this very attribute clear fairness .
The product has a new tagline gorepan se kahi jyaada
saaf gorapan.
This is in stark contrast to taglines earlier, which at different
times have been jindagi roshan kare and badle aap,
badle jindagi all of them playing up how fairness could
change ones destiny.
Campaigns :
USP :
•Power of beauty.
•Fairness in 4 weeks.
•Maximum fairness with the power of 8.%
•For Flawless Fair Skin.
• Change your story Fair & Lovely Men Active
Projects :
•Fair & Lovely Career Guidance
•Fair & Lovely Shikhar
•Fair & Lovely Project Swayam
•Fair & Lovely Project Suvarna
•Fair & Lovely Foundation (Going On)

Sales Promotion :
Fair & Lovely was the first one to introduce Fairness Meter for
consumers to judge their fairness.
Other tactics like 20% extra!! More value for same cost have
worked wonderfully well.

Sponsorship.
Fair & Lovely Scholarship programme 2007 on Reliance Mobile
or R World (Aug 14- Sep 17,45,000 Responses)
 Distribution framework
HUL has one of the largest distribution networks in India. The
following are the
facts regarding the same :
1) About 2900 stockists
2) Total coverage: 6.3 Million outlets
3) Direct coverage: 1 Million outlets

Objectives and intentions

Broad basing their sales and marketing activities across the country.
In terms of town coverage, dealer network and new approaches to
communication strategy.

Plan and implement sales and marketing activities to achieve their

targets.
Fine tune all marketing inputs in terms of media and other budgets
to meet territory specific needs.
Identify performance targets with specific responsibility centres and
 BREEZE

• Hindustan unilever limited offers breeze. Breeze scent

magic is the soap that fulfills the aspirations of women
of rural india.

• Breeze—its market share has dropped from 6% in 2007

to just over 3% now, according to Indian Infoline—is
being positioned as a discount beauty soap to take on
GCPL’s Godrej No 1 and other local brands such as
Dyna and Venus in north India.
PRODUCT & BRANDING STRATEGY

• HUL has also now changed its focus to regional brands

• The maker of Lifebuoy and Dove, HUL has re-launched

its regional soap brands Rexona, Breeze and Hamam

• The Rexona and Hamam re-launch focused on south

India

• Rexona will focus on Andhra Pradesh and Karnataka,

where it has traditionally had a large consumer base,
while Hamam will focus on Tamil Nadu, where it is still
the market leader in soaps.
 PRICING STRATEGY

• Breeze has offered them `beauty at an affordable price,

making them look and feel beautiful

• Breeze comes in 4 exotic fragrances - Rose, Sandal,

Lime and Rajnigandha. All this at a very affordable
price for the masses
 COMMUNICATION STRATEGY

• Newspaper : Eenadu(A.P), Dina Thanthi ( Tamil Nadu),

Punjab Kesari (North), Loksatta (Maharashtra)

• Television: Sun TV (Tamilnadu), Asianet (Kerla),

Eenadu( AP), Aplha Punjabi (North)

• Radio: Radio reach is highest in Kerla (62%) followed

by Tamil Nadu (35%) and Karnataka (32%). Example :
Colgate, Jyoti Labs, Zandu Balm are some of the
company using radio communication programme

• Cinema :1. Films on products like Vicks, Lifeboy,

Colgate and Shampoos are shown in rural cinemas
halls
 AYUSH AYURVEDIC
CENTRE
• Affluent lifestyle

• Risk of lifestyle diseases like high blood pressure,

diabetes, obesity, heart diseases etc .

• Through Ayush, this new generation of Indians can

rediscover everyday health and vitality through
customized Ayurvedic solutions.

• LEVER Ayush Therapy is an exclusive range of health

care and personal care products born of the eternal
truth of Ayurveda and the proof of performance
through modern science
 HUL PULLS OUT AYUSH
• Consumer heavyweight Hindustan Lever (HLL) has pulled
out its ayurvedic brand - Lever Ayush - from the
traditional retail channel following a recent brand review.

• The existing inventory of the brand has been largely

exhausted through `buy one, get one free' promotions
during the recent months.

• The company had targeted annual sales of Rs 200 crore

in 2-3 years since its launch in '00. However, according
to market estimates, HLL's turnover is not more than Rs
30 crore.
 MARKETING STRATEGIES OF
HUL FOR URBAN INDIA
• Focuses on short supply chain for distribution

• To meet the every needs of people

everywhere

• Also uses Direct selling channel(HUN),

franchisee to reach everyone e.g. Aviance,
Ayush

• Build segments & market for the future where

Unilever has strong expertise
 MARKETING STRATEGIES
OF HUL FOR RURAL INDIA
• For long term benefits, HUL started Project Streamline
in 1997

• Appointed 6000 Sub-stockists that directly covers

about 50,000 villages & 250 million customers

• Integrate Economic, Environment & Social objectives

with Business agenda

• Project Shakti, partnership with Self help groups of

Rural women & covers 5000 villages in 52 districts in
different states