New Paradigm of Distribution

for FMCG Companies

Presented By:- Group 5
 Overview of FMCG Sector.
• Fast Moving Consumer Goods(FMCG) goods are
popularly named as consumer packaged goods.
• The most common in the list are toilet soaps,
detergents, shampoos, tooth paste, shaving
products, shoe polish, packaged food stuffs,
household accessories and extend to certain
electronic goods.
• These items are meant for daily of frequent
consumption and have high return
Top 10 Companies in FMCG Sector
1. Hindustan Unilever Ltd(HUL)
2. Indian Tobacco Company(ITC)
3. Nestle India
4. GCMMF(Amul)
5. Dabur India
6. Asian paints(India)
7. Cadbury India
8. Britannia Industries
9. Procter and Gamble(P& G)
10.Marico Industries
 Summary
• FMCG Companies discussed in this case:-
 HLL
 P&G
 Nestle
 Dabur
• Except HLL other FMCG companies going in for a
revamp of their strategies.
• Emphasis on shoring up bottom lines rather than
concentrating on top line growth
• HLL model has a million retail points, 7500 distributers
and huge varieties of products.
• HLL focuses on virtually every income & geographical
segment in the country
• P&G is moving towards demand based
model which enables to reduce the quantum
of waste.
• Nestle emphasis is on products in which it
was traditionally strong & weeding out low
profitability products.
• Dabur is focusing on reducing the number of
distributers and appointing “super stockist”.
Q.1. What are the strengths and weaknesses of HLL’?

• STRENGTHS:-
• Presence of established distribution network in
Urban as well as Rural areas.
• 1 million retail points & 7,500 distributers.
• Presence of well known brands.
• Focuses on every possible price point.
• WEAKNESSES:-
• Low export level
• “Me- too” Products
• Establishing new products at different price points
takes both time & money.
 Q.2. Compare HLL’s distribution model
with that of other FMCG companies.
HLL’s Distribution Model:-
• Setting up rural and small town marketing distribution
network.
• Establishing new products at difference price points.
P&G Distribution Model:-
• Streamlining its distribution network in an exercise code
named “Operation Golden Eye”
• Getting out of rural market.
• Focusing on class A & B towns.
• Moving to a demand based model which enables to
reduce the quantum of waste.
• Reducing the no. of price points at which it offers its
products.
Nestle’s Distribution Model:-

Dabur’s Distribution Model:-

• Following the basic HLL’s track i.e. every possible
price point.
• Reducing the no. of distributors where population of
the town is less than 20,000.
• Appointing super-stockist.
• Instead of expanding distribution to increased
demand for a product, demand should drive
distribution.
Thank You…