with rising per capita income, which is projected to expand at a CAGR of 7.4 per cent
over the period 2013-19, the FMCG sector is anticipated to witness some major
growth
7. Establish trends in sales over recent years (Financial/ Ratio Analysis)
Trends in FMCG revenues over the years in India
9. What types of marketing strategies are prevalent within the industry? ( Porters 5
Forces)
Availability: The slowdown in distribution expansion has held up growth. The
distribution expansion in 2013 has slowed down to 1.1% from a healthy 2.3% in
2010.
Awareness: While the extent of the impact is smaller, yet, the effect of lower
television gross rating points (GRP) has affected sales.
Macro factors: Declining FMCG growth seems to be reflective of the Indian economy
as a whole. The key macroeconomic indicators have weakened; GDP slowed from
7.9% in 2009 to 5.7% as of Nov. 12, 2013. The Index of Industrial Production (IIP)
has also plunged from 5.8% in 2009 to 1.7% in November 2013. This has affected the
economy and the consumers purchasing power.
Sachet (Low volume packs): New product launches through sachets have fuelled
growth over the years. The growth in the number of low-volume packs hit 31.1%
from 2009 to 2010. The rate then dropped to 10.5% from 2012 to 2013. This drop in
sachet innovations has impacted FMCG growth.
10. Global Economic fluctuation and its impact on your Industry
No major effect, because FMCG is a recession proof industry and a gamut of Indian
manufacturing firms operate. Hence insulated.