Fmcg Industry Analysis

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FMCG industry
The Fast Moving Consumers Goods industry is volume driven and is characterized by low margins. The products are branded by marketing, heavy advertising, shiny packaging and strong distribution networks. The FMCG sector can be categorized under the premium segment and popular segment. The premium segment includes mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious.
The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural parts who are not particularly brand sensible. Products sold in the popular segment have significantly lower prices than their premium products. What are Fast Moving Consumer Goods
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FMCG products are those that get replaced and exchanged within a year. Examples of FMCG products usually include a wide range of regularly purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG sector may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, healthy drinks, tissue paper, and chocolate…show more content…
India has different agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies .Investment requirement of around US$ 15 billion exists in the food processing sector. India is looking for investment in infrastructure, packaging and marketing. India has massive scientific and research talent pool. A largely unused domestic market of 1000 million consumers, 300 million upper and middle class consume processed food 200 million more consumers expected to move to processed food by 2010 Well-developed infrastructure and distribution network Rapid urbanization, increased literacy, changing life style, increased number of women in workers, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector 50 per cent of household expenditure by Indians is on food items Planned geographic location (proximity of India to markets in Europe and Far East, South East and West Asia) Under the food industry, Dairy product is very important part of food processing. Dairy processing is acting good role in

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