Fmcg Companies Current Startegies
Title
New strategies for FMCG companies
Author Source References
sreekanth reddy, MBA II Mktg Forthright 1. Marketing Management, Phillip Kotler 2. site.securities.com 3. FT.com 4. The Economist 5. www.wikipedia.org
Document Type Secondary Analysis Subject Date Abstract The FMCG sector is undergoing a slow but definite change towards higher productivity gains in spite of decreasing retail prices. In this scenario it is important for the companies to innovate, use economies of scale and find new markets and segments which are profitable. The article explores the various strategies implemented by major FMCG companies to keep the top line and the bottom line brimming with cash. Marketing April 1, 2006
Symbiosis Institute of Business Management, Pune
Exposition:
The industry has already extracted much of the benefit to be had from improving productivity and concentrating on core brands. Meanwhile, its dynamics are changing. What comes next?
At first glance, the leading consumer goods companies' strategy for handling the fierce competition of the past ten years looks robust enough to carry them through the next ten. Indeed, with the industry still caught between price-sensitive consumers, poor infrastructure and powerful retailers, some of the challenges facing it remain the same.
In the 1990s the industry's executives developed strikingly similar strategies to address these issues: focusing rigorously on the strongest brands and pursuing productivity gains. The results confounded those who forecast the demise of brands and the industry's rapid
consolidation. Remember the day in 2004 when P&G and HLL slashed the price of their core detergent brands by almost 40 percent? A business weekly wrote, "Many brands will perish or never be so profitable again." But such pessimists were wrong. Anyone who invested every year since 2004 in the top 10 consumer goods companies (minus HLL which has under gone a massive restructuring) received a 12 percent
New strategies for FMCG companies
Author Source References
sreekanth reddy, MBA II Mktg Forthright 1. Marketing Management, Phillip Kotler 2. site.securities.com 3. FT.com 4. The Economist 5. www.wikipedia.org
Document Type Secondary Analysis Subject Date Abstract The FMCG sector is undergoing a slow but definite change towards higher productivity gains in spite of decreasing retail prices. In this scenario it is important for the companies to innovate, use economies of scale and find new markets and segments which are profitable. The article explores the various strategies implemented by major FMCG companies to keep the top line and the bottom line brimming with cash. Marketing April 1, 2006
Symbiosis Institute of Business Management, Pune
Exposition:
The industry has already extracted much of the benefit to be had from improving productivity and concentrating on core brands. Meanwhile, its dynamics are changing. What comes next?
At first glance, the leading consumer goods companies' strategy for handling the fierce competition of the past ten years looks robust enough to carry them through the next ten. Indeed, with the industry still caught between price-sensitive consumers, poor infrastructure and powerful retailers, some of the challenges facing it remain the same.
In the 1990s the industry's executives developed strikingly similar strategies to address these issues: focusing rigorously on the strongest brands and pursuing productivity gains. The results confounded those who forecast the demise of brands and the industry's rapid
consolidation. Remember the day in 2004 when P&G and HLL slashed the price of their core detergent brands by almost 40 percent? A business weekly wrote, "Many brands will perish or never be so profitable again." But such pessimists were wrong. Anyone who invested every year since 2004 in the top 10 consumer goods companies (minus HLL which has under gone a massive restructuring) received a 12 percent