Fast-moving consumer goods
From Wikipedia, the free encyclopedia
Soft drinks are FMCGs
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that
are sold quickly and at relatively low cost. Examples include non-durable goods such as soft
drinks, toiletries, over-the-counter drugs, toys, processed foods and many otherconsumables. In
contrast, durable goods or major appliances such as kitchen appliances are generally replaced over
a period of several years. The term was coined by Neil H. Borden in 'The Concept of the Marketing
Mix' in 1965.1996Prentice-Hall, Inc.)
[1][2]
FMCG have a short shelf life, either as a result of high consumer demand or because the product
deteriorates rapidly. Some FMCGssuch as meat, fruits and vegetables, dairy products, and baked
goodsare highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft
drinks, and cleaning products have high turnover rates.
Though the profit margin made on FMCG products is relatively small (more so for retailers than the
producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such
products can be substantial. FMCG is probably the most classic case of low margin and high volume
business.
Supplier industries for FMCGs include:
1512 fish and Fish products
1513 fruit and vegetables
1514 vegetable and animal oils and fats
1520 dairy products
1531 grain mill products
1532 starches and starch products
1533 animal feeds
1541 bakery products
1542 sugar
1543 cocoa, chocolate and sugar confectionery
1544 macaroni, noodles, couscous
1549 other food products
1551 spirits, ethyl alcohol
1552 wines
1553 malt liquors and malt
1554 soft drinks, mineral waters
1600 tobacco products
2101 pulp, paper and paperboard
2102 corrugated paper, containers
2109 other articles of paper and paperboard
2424 soap and detergents, cleaning preparations, perfumes
2430 men & women inner garments, shaving gels, deodorants
WHAT IS THE FMCG INDUSTRY?
"Resilient, rewarding and really, really fast."
Nurofen. Coca-Cola. Dettol. Dove. Dairy Milk. Finish. These and many more well known brand names all have one
big thing in common: they're all part of the fast moving consumer goods or better known as FMCG industry.
Related links
Working environment
FMCG career paths
What is the FMCG industry? Also known as the Consumer Packaged Goods or CPG Industry, this multi-million dollar
sector is made up of a huge range of famous brand names the kind that we use every single day. These fast
moving consumer goods are the essential items we purchase when we go shopping and use in our everyday lives.
They're the household items you pick up when you're buying groceries or visit your local chemist or pharmacy.
FMCG goods are referred to as 'fast moving', quite simply, because they're the quickest items to leave the
supermarket shelves. They also tend to be the high volume, low cost items.
Cleaning and laundry products, over the counter medicines, personal care items and food stuffs make up a large
bulk of the goods in the FMCG arena, but it doesn't end there. Paper products, pharmaceuticals, consumer
electronics, plastic goods, printing and stationery, alcoholic drinks, tobacco and cigarettes can all be considered fast
moving consumer goods too.
The top FMCG companies are characterised by their ability to produce the items that are in highest demand by
consumers and, at the same time, develop loyalty and trust towards their brands.
Some of the leading FMCG companies in the world include:
Colgate-Palmolive
Famous brands: Colgate toothpaste; Palmolive soap and cleaning products; AJAX cleaning products.
Coca-Cola
Famous brands: Coca-Cola; Diet Coke; Fanta; Sprite
General Mills
Famous brands: Pillsbury; Green Giant; Yoplait dairy products
H. J. Heinz
Famous brands: Heinz Tomato Ketchup; Lea & Perrins; HP Sauce
Henkel
Famous brands: Pritt; Sellotape; Schwarzkopf hair products
Johnson & Johnson
Famous brands: Johnson's Baby; Neutrogena; Acuvue; Listerine oral care
Kimberly-Clark
Famous brands: Kleenex paper products; Kotex feminine care; Huggies baby products
Kraft
Famous brands: Kraft, Milka; Philadelphia; Toblerone
L'Oral
Famous brands: L'Oreal Paris, Garnier; Maybelline New York; Biotherm; Kiehl's
Nestl
Famous brands: Nestel Pure Life, Nescafe; Nesquik; Kit Kat; Purina
Procter & Gamble
Famous brands: Ariel, Gillette; Pampers; Olay; Duracell; Pantene
RB (Reckitt Benckiser)
Famous brands: Dettol/Lysol, Air Wick, Veet; Vanish; Finish; French's Mustard; Durex
Sara Lee
Famous brands: Douwe Egberts; Bimbo; Sara Lee; Maryland Clu; Senseo
SC Johnson
Famous brands: Pledge; Mr Muscle; Duck; Glade; Ziploc
Unilever
Famous brands: Dove bodycare; Axe; Flora dairy products; Domestos; Cif; PG Tips
Changing Scenario of the Rural Customers
The traditional scenario of the rural customer is that they are illiterate and depend on agriculture for the livelihood. But the
thinking of the people are changing about the villagers. The scenario is changing because of the two main factors increase
in the disposable income and the other is presence of the media has helped rural people to get knowledge about the various
products available in the market. They are having enough knowledge about the brand and are moving towards the brand
value. Rural markets are very important for the marketers . The people have quite good information about the various brands
the offers available in the market all the credit goes to the television.
The rural youth is one the major decision makers for any purchase at home so they influence the market very much. They
frequently travel from villages to city and have sufficient knowledge about the various range of products available in the
market.
FMCG
The Indian FMCG sector has a market size of $ 13.1 billion. Well-established distribution networks, as well as intense
competition between the organised and unorganised segments are the characteristics of this sector. 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
$33.4 billion in 2015 from $11.6 billion in 2003. The middle class and the rural segments of the Indian population are the
most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. The rural
market consists of 57 per cent share of the total FMCG market in India.
The number of households in rural India have increased from 135 million in year 2002 to 153 million in year 2009 with such
a huge potential market the major FMCG giants are keeping their full concentration on the rural markets. They are trying to
build the better distribution network and dealer channel so that they can explore the markets.
FMCG Advantages
Technology
Our reporting and management software, accessible from the Internet, collects from the territory and offers real time raports and data
necessary for the supervision and improvement of our customer's merchandising, promotion and sales activities.
To have the right information at the right time represents the key factor in the success or failure of a sales campaign. Our system provides
complete and detailed reports that help us measure progress relative to established objectives. In addition to these reports we also offer our
clients market information and data that are essential in creating the marketing mix and the right strategy and tactic for your product.
This is why we invested in IT and developing our own software solution, so that we can respond better to the needs of our clients:
much faster acces to field data, often real-time
ability to customize raports structure and format
direct acces to the whole reporting cycle, from the raw data until the final analysis
the posibility to create levels of access to the data
Flexibility & Carefree
We take on board and respond to additions or changes to ongoing projects. Our main aim is to act promptly.
Low cost, more value added
Rather than getting involved in: the selection & recruitment & of staff, hiring, training, offices rental, opt for our solution where all the
infrastructure is already in place.
In-depth local knowledge
Each FMCG manager has worked within their allocated regions for several years. The local connections and knowledge aquired, combined with
the sales, distribution, promotion & merchandising experience make our managerial team unbeatable and making the mantra "Think national,
act local" a reality.
Reaction speed:
Depending on the processed services we can offer various raports for our activities: daily, weekly or monthly, using our own software solution.
Guarantee
We guarantee the highest performance and quality using an internal evaluation system for both merchandisers and promoters. We can apply
changes to a running project without additional costs.
