unfurling product mix

8/3/2019 Unfurling Product Mix

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Unfolding the Product Mix


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2

Increasing throughputs per store

110 sq ft

2002

96 sq ft

2006

A

V

G

S

T

OR

E

S

I

Z

E


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3

Competitiveness has increased manifold

especially in Metros

Avg Brand/ SKU stocking per

store

Rural

Metros

All India

8074SKU

5752Brand

303208SKU

157121Brand

154

94

2002

187SKU

104Brand

2006


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4

While more competitors can be seen within

each product category, the Big Daddies

continue to dominate

3

35

2002

4Avg number Companies commanding

75% of the category sales

54Avg number of Companies Per

category

2006


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Using

in-storesp

acemoree

ffectively


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Eveng

ettingouto

fthestorefordisplay


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Does this mean

All product categories are behaving similarly OR

are there any differences? Increasing competition and

Dominance of few companies

If there are differences, then are there any

specific movements that can be observed in the

product mix of these categories?


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Investigate

Category Groups

Product mix : Key differences across groups

Pack sizes

Price points

Promotions

Media Spends

Movements in the future!


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The Dimensions

Y Axis- Competition

Number of players in the categorySparse to Congested

X Axis Strength of Dominance

Percentage of top players in the category(Top companies defined as the number of companies contributing to 75%

chare of category)

Low to High

Analysis done for the top 45 categories which account for 92% of FMCG sale


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CC

OO

NN

GG

EESS

TT

EE

DD

SS

PP

AA

RR

SSEE

L O WL O W H I G HH I G H

STRENGTH OF DOMINANCESTRENGTH OF DOMINANCE

CC

OO

MM

PP

EE

TT

IITT

II

OO

NN

Low entry barriers

High clutterFew companies

command share

Low entry barriers.

Lots of playersNo clear leader

High entry barriers and

companies carving out

shares within the sub-

segments

High entry barriers and

the top company (ies)

are the sole operators in

this category

Construct


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CC

OO

NN

GG

EESS

TT

EE

DD

SS

PP

AA

RR

SSEE



CC

OO

MM

PP

EE

TT

IITT

II

OO

NN

Skin Cream Namkin

Hair Oils Biscuits

Toilet Soaps Noodles

Toothpastes

Talcum Powder

Shampoo

Washing Powder

Packaged Tea

Refined Edible Oils

Packaged Atta

Vanaspati

Ghee

Non Refined Edible Oils

Hair Dyes Beverages

MRC Coffee

Battery Chew Gums

Razor blades Baby Foods

San Naps Chocolates

Category Groups


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CC

OO

NN

GG

EESS

TT

EE

DD

SS

PP

AA

RR

SSEE



CC

OO

MM

PP

EE

TT

IITT

II

OO

NN

Skin Cream Namkin

Hair Oils Biscuits


Toothpastes

Talcum Powder

Shampoo

Washing Powder

Packaged Tea

Refined Edible Oils

Packaged Atta

Vanaspati

Ghee


Hair Dyes Beverages

MRC Coffee

Battery Chew Gums


San Naps Chocolates

Non Food Snack

MonthlyBasket

Commodity to Branding

Specific occasion

Particular TG

Category Groups


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CC

OO

NN

GG

EESS

TT

EE

DD

SS

PP

AA

RR

SSEE



CC

OO

MM

PP

EE

TT

IITT

II

OO

NN

Skin Cream Namkin

Hair Oils Biscuits


Toothpastes

Talcum Powder

Shampoo

Washing Powder

Packaged Tea

Refined Edible Oils

Packaged Atta

Vanaspati

Ghee


Hair Dyes Beverages

MRC Coffee

Battery Chew Gums


San Naps Chocolates

Non Food SnackMonthly BasketCommodity to Branding

Specific occasion

Particular TG

ENTRENCHED

No. of Categories (18)

Avg number of players (116)Avg number of.Cos contributing

to 75% (4)

CONVERTERS



to 75% (11)

SPECIALISTS



to 75% (3)

LEADERS

52% (10% ; CAGR)23% (11%;CAGR)

17% (9%; CAGR)

Category Group Characteristics


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Investigate

Product mix : Key differences across groups

Pack sizes Price points

Distribution

Promotions

Intelligent moves for a better future!


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Specialists and Converters have their

volumes coming from Urban India,especially metros

2128 31

40

4346

39 29 23

0%

20%

40%

60%

80%

100%

Consolidators Converters Specialists

Metros Rest of Urban Rural

Rest of Urban is growing faster than other markets across clusters


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Minor pack shifts at overall FMCG level.

Growths driven by the lower packsizes

44 42

34 35

22 23

0%

20%

40%

60%

80%

100%

2002 2006

Large Medium Small

All FMCG

Growth DriverGoverned by

Medium

MediumSmall

LargeSpecialists

LargeConvertersLarge & MediumEntrenched

Salience of

small packs increasing faster in Rural markets

Metros show a move to medium packs


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Entrenched & Specialists using lower price-point

for Share maintenance and Driving trialsrespectively.

12

12 11

78

23

3

24

6

20 1

3 2

5

1

7

0

18

42

21

0

3 3

9

1210

16

2

16

12

16

-10

0

10

20

30

40

50

Less thanRe 1

Re 1 Rs 2 to 4 Rs 5 Rs 6 to 9 Rs 10 Rs 11 to19

Rs 20 Rs 21 to50

Rs 51 to100

Above Rs100

Entrenched Converters Specialists

Growth driverGoverned by

Premium

Popular and Premium

Popular

PremiumSpecialists

PopularConverters

PopularEntrenched


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Entrenched having disproportionate Media spends

as well as Promotions due to higher

competitiveness

62 11 27Share of

Media

Spends

Entrenched Converters Specialists

80 8 12Share of

Promotions


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Specialists group dependant on all types of

promotions to boost trials

Food

Non Food

Food

13

18

3

8

18

22

6

16

0

5

10

15

20

25

All FMCG Entrenched Converter Specialist

Value

VolumeKind


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To Summarise


CC

OO

MM

PP

EE

TT

IITT

II

OO

NN

Good spread across TCL

Plugging price points

Controlled by Popular pricing

Top Co.s lead by strong

distribution levels

High Promo (Vol/Val)

High Media Spends

Lesser rural focus

Focus shifting to Medium packs

Steering towards Premium

pricing

Distbn still in expansion phase

Lowest Promo (Vol)

Low Media spends

Lesser rural focus

Focus shifting to Medium packs

Governed by Premium price

Distbn still in expansion phase

Promo increasing (all types)

High media spends

CONVERTERS CONSOLIDATORS

SPECIALISTS


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A Presage to the Future Trends

Thank you

unfurling product mix

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