TARGETED STRATEGIC ANALYSIS OF AN

INDUSTRY
COMPONENT 3:
Market Research Report

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Sl no Contents Pg no

1 Executive summary 3

2 Research Objective 3

2.1 Research Methodology 3

3 Recent Development 4

4 Key Industry Players 9

5 Emerging regions 10

6 Data Analysis 12

7 Conclusion 22

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 Executive Summary

This study is conducted to have a better understanding of geographical sub markets

of FMCG Industry in India and also outlining the recent developments which
includes Merger and Acquisitions ,Collaboration, and new product launches and their
effects on market dynamics , Determine which key success factors, such as the ability
to attract new customers, ability to retain existing customers or a low cost production
structure. Analyzing the market size i.e. total addressable market of Key Industry
Players and analyzing market in emerging regions

2. Research Objective

To outline the recent developments in the FMCG Industry

To analyze the Key players in the Industry

To analyze the market in emerging regions

2.1 Research Methodology

 Research methodology consists of secondary research data i.e. data and statistics
obtained from secondary resources such as research papers, journals,
Euromonitor, Sage journals, etc.
 This research study is descriptive and exploratory research and data provided is
quantitative which mean research is generally followed by further exploratory
conclusive research

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3. Recent Developments in FMCG Industry 2020.

Sl.N Major Company MERGER AND ACQUISITION

O to acquire DEAL
1 HUL It acquired Wash brand from Acquisition of
Glenmark on 23 March 2020 as intellectual
Vwash is leading brand in female property rights
intimate hygiene segment, so it including
helps hul to go into this trademarks designs,
underpenetrated and quickly this deal is made
growing women beauty and because this
personal care intimate hygiene
business market is niche
market and
category
penetration is
giving huge profits,
so they want to
gain urban Indian
consumers who are
increasingly
purchasing hygiene
products
Patanjali It acquired bankrupt Ruchi soya Patanjali has won
2 Ayurveda ltd for Rs 4350 crore and this is first the bid to acquire
acquisition of Patanjali, and it is Ruchi soya and
acquired on 18 Dec 2019 acquisition will help
Patanjali acquire
edible oil plants as
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 also soybean oil
brands such as
Mahakosh and
Ruchi Gold
3 Modern Foods It acquired 75 % stake in This deal helps
Supreme Baker on 2 sep 2019 Modern Foods to
and supreme baker sells Citi fresh re-enter the
and topspin food bakery lucrative NCR
market

4 Haldiram Haldiram Bhujiawala has brought They acquired a

Bhujiawala The Coffee bean & Tea leaf india total of 89 outlets
franchise from private equity as part of his deal.
fund Ever stone Capital for 100
crores on 23 August 2019 and
this company is chain of 1000
outlets and they acquired these
outlet as it is under penetrated

5 Nirma firm Nirma firm Nuvoco’s cement The deal was to

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 Nuvoco’s cement acquired Emami for an enterprise expand total
value of Rs 5500 crore on 6 cement capacity in
February 2020 eastern, northern
and western india
to 23.5 million
tones
6 Wipro Consumer It acquired South Africa based To enter south
care personal care Canway corp which Africa market into
market brand such as Oh so 58 million
heavenly, Iwori and IQ on consumer bases
4 Dec 2019, this acquisition gives
way to penetrate south Africa
market

7 Wipro consumer It acquires personal care firm To enter in

care Splash corp of phillipines on 30th Phillipines market
April 2019 with 100 million
consumer bases
8 Big basket It acquired micro delivery Firm The deal expands
Daily Ninja on 24 March 2020 BB expansion in
subscription
delivery
9 Silver push It has acquired recipe sharing To deep penetrate
platform better butter on sep 18 into fmcg industry
2019
10 Reliance It has acquired British toy It is cash deal to
Hamleys for Rs 620 core on July become global toy
18 2019 player
New product launches in FMCG Industry

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  HUL launches laundry band after 30 years and this time it is launching vegan
based detergent liquid with the Future retail group so that it also can score on
environmentally and ecofriendly products
 HUL also launched premium LOVE&CARE detergent liquids for fabric
garments on Aug 26, 2019
 Mondelez india and hul india joint venture to launch premium frozen desserts
such as Oreo and gem burst on April 18,2019
 ITC launched 50 FMCG products in 2018-19, its highest ever in a single fiscal
 Nestle announced the newest Starbucks products hitting shelves in 2020,
including Cold Brew Concentrate, Fresh Brew Coffee, Starbucks Coffee with
Essential Vitamins, Starbucks Coffee with Golden Turmeric and Starbucks
Coffee with 2x the Caffeine
 Britannia’s plans to launch 50 products in diary, bakery and non-bakery areas
 Amul to launch new 40-60 dairy based products which include popular north
india sweet dish “peda”

Key success factors or successful strategies

 One of the key factor or strategy of FMCG is trying to attract consumers with
their unique Promotions and offers, ITC is offering less deals for consumers so
that they buy their products
 Joint ventures: Fonterra, New Zealand based firm joint venture with Future
Consumer JV launches value-added milk products
 Expansion: Dabur invests Rs 250-300 crore for capacity expansion
 Product launches: ITC to launch every year 40-50 products to target many
consumers and become top FMCG company
 Product Expansion: Nestle has expanded product segment of pet care by
introducing different range of products for premium product of dog food i.e.
Purina

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  Analytics: Hindustan Unilever implemented a transformational program
Connected 4 Growth
 Digital Marketing and Customization: Digital marketing and customization
opened many opportunities for companies to target consumers

KEY INDUSTRY PLAYERS

TOP 10 KEY PLAYERS

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ITC Marico

Nestle Glaxo Smith Kane

Hindustan Unilever ltd Colgate

Britannia Godrej

Dabur Emami

INDIA

Total Addressable market,

same for all key players

Total Available Market, depends on

company

Target Market -Rural and Urban

Demand

To determine demand hard variables such as target markets, age, income, education
and soft variables such as purchasing behavior, attitudes, lifestyles etc. demographics
and psychographics are used. These are explained or interpreted in data analysis
section

EMERGING REGIONS

GLOBALLY

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Asia Pacific has highest FMCG growth and In Asia Pacific Vietnam and Phillipines are
growing in lead and has potential for future success and remaining are seeing
slightly growth in FMCG, remaining countries in Asia Pacific are

 China
 Japan
 India
 Southeast Asia
o Indonesia

o Thailand

o Malaysia

• North America

o US

o Canada

• Europe

o Germany

o UK

o France

o Italy

o Spain

o Russia

o Benelux

o Rest of Europe

• Latin America
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o Brazil

o Mexico

o Argentina

o Colombia

o Rest of Latin America

• Middle East & Africa (MEA)

o Saudi Arabia

o South Africa

o Turkey

DATA ANALYSIS

FMCG INDUSTRY IN INDIA

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Total Available Market:

Data Interpretation:

The companies share in the market is

ITC -12 %

HUL -10%

Nestle -3%

Britannia -3%

Dabur -2%

Godrej -2%

Marico-1%

Glaxo Smith Kane -1%

Godrej -1%

Emami 1%

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So as per 2018 statistics ITC has largest available market in FMCG Sector and Emami
has least available market in FMCG

TOTAL ADDRESSABLE MARKET

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Data Interpretation:

The world market share i.e. total addressable market of FMCG Industry is $288 .0
million worldwide and in india it is $46.6million and It is failed to dominate in
emerging economies

Determining Demand
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Demographics

Data Interpretation:

From the above statistics, the major target of FMCG in India is Urban constituting
60% and remaining 40% is rural so the major target market is urban, and India has
9% organized FMCG companies and 91% Unorganized

Data Interpretation

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In 2018 Food and Beverages is highly in demand and by forecast in 2020 and least
demand is Home care and it is forecasted to have least demand by 2020

Data Interpretation:

By Globally Asia Pacific segment has high demand of fmcg and least is LAMEA

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Data Interpretation:
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From above it is evident food market has proportion of spend which means it has
high demand.

Data Interpretation:

Above data shows detergents, Baby foods, Sanitary napkins and Shampoo have high
demand as they used in daily life and so GST is levied on them as they are highly
demandable and impacted by companies

Data Interpretation

Above data shows households income segment where deprived has more proportion
in all the three years
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Data Interpretation

From above data it is evident that Indian FMCG has highest demand offline by
95.10% and least demand by online 4.90%

Data Interpretation:

From above data it is also evident that Food and grocery has high demand in retail
market by 68.00% and others have least 11% demand

Emerging Regions

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Data Interpretation:
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From above data it is evident that Phillipines and Vietnam, the FMCG demand is
slowly growing.

Conclusion:

The research study on geographical submarkets of FMCG Industry and market

research report on Recent developments, key success factors related to FMCG
industry, Key Industry Players and Emerging region have been achieved.

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