FAST MOVING Consumer

GOODS
(FMCG)
INDUSTRY
 FMCG Industry
Overview

Popularly known as Consumer packaged goods.

Items meant for daily of frequent consumption and
have a high return.
Quick turnover and relatively low cost.
e.g. toilet soaps, detergents, shampoos,toothpaste,shaving
products, shoe polish, packaged foodstuff, and household
accessories are most common.
Characteristics
 From the consumers' perspective:
1. Frequent purchase
2. Low involvement
3. Low price
 From the marketers' angle:
1. High volumes
2. Low margins
3.Extensive distribution networks
4.High stock turnover
Product Life Cycle
Product life Cycle
Product lines and Products
Product line Product

Household Care Laundry soaps

Synthetic detergents

Dish & utensil cleaners

Floor cleaners
Toilet cleaners
Air Fresheners
Insecticide
Mosquito repellents
Metal & Furnish Polish
Product line & Product
Product Line Products
Food staples/Cereals

Bakery Products
Snack food
Chocolate
Ice cream
Processed food
Vegetables
Branded flour
Branded rice
Branded sugar
Product Line Product
Beverages Health Beverages
Soft drinks
Tea
Coffee
Dairy Products
Bottled Waters
Juices
Personal Care Oral care
hair care
skin care
personal wash
cosmetics & toiletries
deodorants;
perfumes
feminine hygiene
Market Size
Industry Category & Market Size(Rs in crores)
product
Household Care
Personal Wash 8,300
Detergents
Personal Care
Skin Care 3,400
Hair Care 3,800
Shampoos 2,700
Oral Care 3,500
Food & Beverages
Food segment 4,600
 Market Share

Household Care
60
HUL
50

40 HUL

30

20

10

0
Personal Wash Detergent
 Personal Care
60
HUL
Colgate-Palmolive
50

40
Marico

30

20

10

0
Skin Care Hair Care Oral Care
Food & Beverages
70
Parle Bisleri
60
Coca-Cola
HUL Nestle
50

40

30

20

10

0
Tea Coffee Mineral Water Soft Drinks
 FMCG Sector Annual Growth(India)

Annual Growth
100,000 90993.82
90,000 82721.65
80,000 75201.5
68365 Annual
Rs(crore) 70,000 62150 Growth
60,000 56500
50,000 Linear
40,000 (Annual
30,000 Growth)
20,000
10,000
0
2005 2006 2007 2008 2009 2010
Years
 Top 10 Players (India)
S.No. Company Annual Revenue
(Rs.in Lakhs)
1 GCMMF(Amul India) 8,00,500
2 ITC 5,05,379
3 HUL 4,31,575
4 Nestle India 1,47,978
5 Asian Paints 1,29,609
6 Britannia Industries Ltd. 91,283
7 Dabur 69,538
8 Colgate-Palmolive (India) Ltd. 51,660
9 Marico Industries Ltd. 45,840

10 P&L HLL 20,497

 Top 10 Players (World)
S.No Company Annual
Revenue
($m)
1 Proctor & Gamble 78900$
2 Colgate-Palmolive 15380$
3 Avon 12,500$
4 Reckitt Benkisers 10398.32£
5 Amway 8400
6 Beiersdorf 3170€
7 Unilever 39823€
8 Nirma 1061.19
9 Johnson & Johnson 15,800
10 Schwarzkopf & Henkel 3512£
Top 3 Players(World)
 Top 3 Players(World)

Unilever
Overview
 Country of Origin: UK/Netherlands
 World`s largest Soap manufacturer
 products are sold in over 170 countries around the world
 involves two parent companies; Unilever NV and Unilever
PLC.
 Employ 163,000 people in around 100 countries
worldwide
 264 manufacturing sites worldwide
 Product Offerings

Food Brands

Personal Care Brands

Home Care Brands

 Major Products(World)

Food Brands

Personal Care
 Lipton

Characteristics
Growing Tea To Ensure Quality
Perfecting the Art of Tea Blending To Taste
Challenging Teas To Satisfy The Pickiest
Taste Buds in the World
Advanced Tea Growing Research
Growing
Owns tea estates in India, Kenya and
Tanzania
Research programs at estates to improve
growing and harvesting practices
Blending
 No two teas are ever the same, even if they're
from the same estate
 Quality of tea varies enormously according to
country of origin, weather conditions, altitudes and
the structure and quality of the soil.
Tasting
 Team of fully trained Tea Tasters skilled in the
art and science of tea
Advanced Tea Growing Research
The LIPTON Tea Research Program is dedicated to the study of tea growing so
we can maintain the quality of our products
and make sure they are consistently delicious
 Top 3 Player(World)

Procter & Gamble

Overview

Procter & Gamble was founded in 1837 by

William Procter, a British citizen who emigrated
to the United States, and James Gamble, a U.S.-
based Irish soap maker and industrialist. The
company first sold candles.
Operations - Business Segments
Beauty & Grooming
Beauty segment
Grooming segment
Household Care
Baby Care and Family Care segment
Fabric Care and Home Care segment
Health and Well-Being
Health Care segment
Snacks and Pet Care segment
 Product offering

Gillette
Shaving Creams
Razors
Deodorant
Aftershave
Colgate-Palmolive
Overview
Rated as the #1 brand by the A&M – MODE Annual Survey
for India’s Top Brands for eight out of nine years during the

period 1992 to 2001

Ranked as India’s Most Trusted Brand across all categories

for four consecutive years 2003 to 2006 by Brand Equity’s
“Most Trusted Brand” Survey
Colgate was rated the leading FMCG Brand, 2nd position in
overall survey
 Product Offering
Duraphat
intended for the treatment and prevention of dental caries
Colgate Total
ingredient triclosan, which reduces the number of bacteria that
cause gingivitis, cavities and halitosis
Colgate Cavity Protection
Although most Colgate toothpaste brands use sodium fluoride,
the Colgate Cavity Protection variety instead contains Sodium
monofluorophosphate as the active ingredient.
 Colgate Simply White
A whitening toothpaste that is "Clinically-proven to whiten in
14 days
•
 Top 3 Players(India)

GCMMF(Amul)
Hindustan Unilever Ltd.
ITC
 Hindustan Unilever Ltd.
Company Overview
Earlierknown as Hindustan Lever Limited
Formed in 1933 as Lever Brothers India Limited.
headquartered in Mumbai,
HUL is the market leader in Indian products such as tea,
soaps, detergentsetc.
Company’s statement of corporate purpose is “meet
the everyday needs of people, everywhere.”
 Product line - Product
Product Line Products

Food Brands 3 Roses

Annapurna

Brooke bond

Bru

Kissan

Knorr

Kwality Wall`s

Lipton

Red label
Contd…
Product line Products

Personal Care Brands Axe

Breeze

Hamam

Lakme

Lifebuoy

Lux

Pepsodent

Sunsilk

Pears

Vaseline
Contd…
Product line Products

Aviance
Lever Ayush therapy
Axe
Clinic Plus
Clear
Close-up
Dove
Fair & Lovely
Liril
Pond`s
Rexona
Contd….
Product Line Products
Homecare brands Active Wheel
Rin
Comfort
Domex
Sunlight
Cif
Surf Excel
Vim
Brooke Bond Tea
Overview

 Owned by Unilever, formerly an independent

manufacturer in the United Kingdom.
 Founded by Arthur Brooke who was born at
Lancashire, England in 1845.
 Company’s name changed to Brooke Bond India

Pvt.Ltd in 1956.
PRODUCTS

3 Roses

Taj mahal

Red Label
3 Roses
Ithas two functionally differentiated variants - 3 Roses
Natural Care and 3 Roses Mind Sharp.
Available in 3 Packs: 3 Roses Regular, 3 Roses Natural

Care, 3 Roses Mind Sharp
3 Roses is a 30 year old regional brand and is the

market leader in Tamil Nadu
largest FMCG brands in Tamil Nadu across categories.

It has a strong presence in both in home and out of

home segments
Taj Mahal Tea
Taj Mahal was launched in 1966 by Brooke
Bond.
Taj Mahal is the most premium brand of tea
in the Indian market.
It was the first brand to launch tea bags and
is the only tea brand in India to be sold in
vacuum sealed packs
• Available in 3 Packs: Taj Mahal, Taj Mahal Tea
Bags, Taj Mahal Flavoured Tea Bags
Red Label tea
A 105 year old brand and has tremendous equity and heritage
in the Indian market.

It is the second largest tea brand in the country.

Ithas both leaf and dust variants, as well as a health and

immunity variant - Red Label Natural Care.

It is now proven that regular consumption of 3 cups of Red

Label Natural Care
every day can enhance one's immunity and help one fall ill less
often.

Red Label holds the Guinness Record for the worlds largest tea
party.
Available in 2 packs: Red Label, Red Label Natural Care.
 Order Winning
Industry Product Price(`) Customizati
250gm on
Brooke Red Label 72 Get 10% Free
Bond(HUL)

Tata Tata Tea 65

Premium

(Duncan Double 62
Industries) Diamond
WORLDWIDE TEA PRODUCTION
 Resources

Materials Transformation Output

Transformed Process

Withered leaves Rolling BLACK TEA

Withered leaves Firing GREEN TEA

Withered leaves Semi-Oxidation Oolong Tea

 Plucking
 Tea leaves and flushes, which includes a terminal bud
and 2 young leaves, are plucked from Camellia
sinensis bushes typically twice a year during early spring
and early summer or late spring.
 Picking is done by hand when a higher quality tea is
needed.
 Hand-picking is done by pulling the flush with a snap of
the wrist and does not involve twisting or pinching the
flush, since doing the latter reduces the quality of the
leaves.
 Tea flushes and leaves can also be picked by machine.
 Withering

 It is the first processing step in the factory and is a

process in which freshly plucked leaf is conditioned
physically, as well as, chemically for subsequent
processing stages.
Physical Withering
• To reduce the moisture content of the fresh leaf which
ranges between 74 - 83%
 To make the leaf `flaccid' or `rubbery' which is essential
for the subsequent step of processing .
Chemical Withering
Chemical wither starts immediately after plucking. It is
independent of the rate of loss of moisture and is a
function of time and temperature. This process
normally takes about 12 - 16 hrs.
The following chemical changes occur during withering:
Release of carbon dioxide and water due to break down
of larger molecules.
Changes in enzyme activity.
Partial break down of proteins to amino acids which act
as precursors for aroma.
Increase in caffeine content - this contributes towards
briskness.
 Percentage of Wither (% wither)
 Weight to which 100 kg of leaf is reduced at the
end of the withering process.70% withering
signifies that 100 kg of fresh green leaf has been
reduced to 70 kg after withering and 30 kg of
water has been removed.
 This method of expressing wither is irrespective
of the initial moisture content of the leaf. Thus,
depending on initial moisture content, the same
70% withered leaf, would lead to various
moisture contents.
 Physical wither can be achieved in 3-4 hours
 Rolling
The process of rolling applies pressure and twist
between leaves as well as between leaf and surface of
the equipment used for rolling.
The degree of pressure depends upon the quantity of
leaf charged as well as the position of the pressure cap.
Resulting friction causes heat, which in excess will
hasten the chemical reactions to result in the
formation of undesirable constituents detrimental to
the quality
The Rolling table is simple equipment that emulates
the hand rolling method in a commercial level
operation
 Oxidation
This is the chemical process where oxygen is
absorbed. This process began once the leaf
membranes were broken during the rolling
process.
Oxidation causes the leaves to turn bright copper
in color. This process is the main deciding factor
whether we have green, Oolong or Black tea.
This step takes about 2-4 hours.
 Firing
In this stage the leaves are dried evenly and
thoroughly without burning the leaves. Firing
the leaves stops the oxidation process.
 To halt the oxidizing process and dry the tea
completely, the leaves are then put through a
drying machine.
They pass by conveyor belt through a charcoal
fired heater at a temperature of 220-250 degrees
Fahrenheit for about 20-40 minutes
 Grading
After the tea is thoroughly dried it is ready to be
sorted by leaf grade.
This is done with a machine that shakes the
dried leaves over varying gauges of mesh to sift
out the tea according to size.
Tea ranges in size from that of a speck of dust to
a leaf approximately 4 cm long and 1cm wide.
The fractions are to be brought to the desired
sizes and forms with adequate uniformity and
cleanliness conforming to trade requirement.
Tasting and Blending
 Small samples of tea are first obtained, tasted for quality, flavour as
well as being assessed for colour.
 Professional tasters select teas to produce the desired blend. Each
sample blend is brewed, and undergoes a methodical tasting
procedure.
 Freshly drawn water is boiled in a copper kettle and poured over five
grammes of tea in a special white, lidded ceramic cup.
 Tasters examine both dry and wet leaves, judging the brew’s colour
and clarity. Then using special spoons, tasters suck the tea sharply
against their palates and expel it into spittoons. So well seasoned are
tasters’ palates that they can detect the slightest variation on the
standard they seek.
Packaging

Packed into foil lined paper sacks, which

provide a moisture barrier, keeping the tea dry.
Tea chests, however, are used for larger leaf teas
as they provide an extra degree of protection
against the leaves being damaged in transit.
 Fresh leaves

Withering

Rolling

Oxidation

Drying

MANUFACTURING PROCESS
OF
BLACK TEA
MANUFACTURING PROCESS
OF
GREEN TEA

Fresh leaves

Streaming

Primary drying

Rolling

Final Drying

Drying
Critical Success factors
 Innovation projects and process development work has been arrived out
in tea, coffee.
 Improved quality, new offerings and innovative value added products
have increased consumer response and satisfaction.
 The Company has taken significant steps to strengthen research and
development activities in order to increase value and satisfaction to the
consumer
 A Food Research Laboratory, one of the largest of its kind in the private
sector is functional in Bangalore and is undertaking a black tea science
research programme as well as innovation projects in instant tea.
 The Foods R & D laboratory has facilitated a better understanding of
consumer tastes and launch of new products in the market place.
 Improved quality, new offerings and innovative value added products
have increased consumer response and satisfaction.
 Success
 Company continued its focus on building strong
branded beverages business by positioning 3
Roses,Taaza, 3 Roses variants in the Market.
 Lipton, the globally successful brand led our foray into
the youth and natural drink segment.
 Lipton Ice tea was launched in Chennai and Bangalore
with world class visibility and wide distribution. The
Lipton brand achieved a significant growth.
 Instant Coffee continued its record of excellence growth
with Bru gaining sales ahead of the Market
Failures
Brooke Bond is facing fierce competition Tata
tea and Duncan .
Complex supply chain configuration, very large
numbers of SKU`s with dispersed
manufacturing locations.
THANK YOU