CHANGING TRENDS IN FMCG INDUSTRY IN INDIA
ANKIT PURBEY , ANMOL RATNA , ANSHUL CHANPURIYA
DR. MANISHA SINGH (ASSOCIATE PROFESSOR)
SCHOOL OF BUSINESS
BACHELOR OF BUSINESS ADMINISTRATION
EXECUTIVE SUMMARY
This paper analyses and evaluates the existing and future profitability and financial performance of the FMCG industry, with a focus on India. HUL, ITC, Dabur, Godrej, and P&G are the five largest FMCG companies in India. We learn about their sales, product segmentation, profitability, flexibility, brand loyalty, and customer awareness. The report details all of the acquisitions and mergers that the corporation has made. The PEST analysis of the FMCG industry discusses the fundamental political, social, economic, and technological aspects of the industry. The PEST study aids the industry in overcoming potential obstacles. The method of data collection is done in terms of the net sail, Research and Development, Ad expenditure, Fund flow, and PBITM (profit before interest depreciation and tax margin). We have also analyzed the data with the help of hypothesis testing. As there are more than two companies, we have taken ANOVA test to compare the profitability of the respective FMCG Companies in India. We also compared India's FMCG analysis to those of other BRICS countries (Brazil, Russia, India, China, and South Africa). We also looked at the industry's overall future prospects and opportunities.
The report emphasizes the fact that entering the FMCG industry is relatively simple, but staying in the market is a significant challenge. In order to achieve sustainability, they must create a brand value in the minds of consumers. Furthermore, data analysis reveals that different FMCG companies have varying levels of profitability and brand value. Their net sales, operating profit, and PBIT also vary depending on the company and year. Among these five FMCG players, ITC is the market leader.
As we all know, a business begins and ends with its customers. Companies should concentrate on the requirements and desires of their customers and strive to give value-added services and goods. They should endeavour to set themselves out from the competition. In the FMCG industry, the only way to differentiate items is to build brand value among consumers.
The following are some of the recommendations discussed:
In order to increase the profitability of their business and to satisfy their customers as much as possible, they need take a varied approach to different products. They should now concentrate their efforts in the countryside. The key argument is that they will profit by targeting rural communities. Cities have been covered by FMCG companies.
Moreover, as the profitability of different FMCG industries varies, they need to focus on promotional activities in order to increase their sale. Other option is trying to increase their amount of sales in other countries that is by increasing export.