How swot analysis helps newbies top in Fmcg Business

September 20, 2022 Team DigitalGumma

SWOT (Strength, Weakness, Opportunities and Threats) Analysis of Fast Moving Consumer Goods (FMCG) Industries in India

Fast Moving Consumer Goods (FMCG) is the fourth biggest sector in the Indian economy. There are three primary segments in the sector food and refreshments, which represents 19 percent of the sector; medical services, which represents 31 percent of the offer; and family unit and individual consideration, which represents the staying 50% offer.

FMCG market is relied upon to grow 5-6 percent in 2020. FMCG’s metropolitan segment developed by 8 percent, though, its rustic segment grew 5 percent in the quarter finishing September 2019, upheld by moderate swelling, increment in private consumption and country pay. Indian online basic food item market is assessed to surpass deals of about Rs 22,500 crore (US$ 3.19 billion) in 2020, a noteworthy hop of 76 percent over the earlier year.

FMCG organizations are hoping to put resources into energy productive plants to profit the general public and lower cost in the long haul. Dabur had plans to contribute Rs 250-300 crore (US$ 38.79-46.55 million) in FY19 for limit extension and potential acquisitions in the homegrown market.

The sector saw sound FDI inflow of US$ 16.28 billion during April 2000-March 2020. Investment goals identified with FMCG sector emerging from paper mash, sugar, fermentation, food handling, vegetable oils and vanaspati, cleansers, beautifiers, and toiletries businesses worth Rs 19,846 crore (US$ 2.84 billion) was implemented until December 2019. Developing mindfulness, simpler access, and changing way of life are the key development drivers for the consumer market.

The attention on farming, MSMEs, training, medical care, framework and expense discount under Union Budget 2019-20 was required to legitimately affect the FMCG sector. Activities attempted to expand the extra cash in the possession of average person, particularly from country regions, will be gainful for the sector.

Hence, it is motivational to have a study on the SWOT analysis of FMCG Industries.

SWOT analysis of FMCG Industry

Low operational costs.

Presence of established distribution networks in both urban and rural areas.

Presence of well-known brands in FMCG sector.

Deep roots in local culture & great understanding of consumer needs.

Fast moving consumer goods (FMCG) is the fourth-largest sector in the Indian economy. There are three main segments in the sector — food and beverages, which accounts for 19% of the sector; healthcare, which accounts for 31% of the share; and household and personal care, which accounts for the remaining 50% share.

Challenges faced by the FMCG industry

Marketing. While the objectives of marketing have not changed, the strategies for achieving them are continually changing to meet consumer demand.

Environment and Sustainability.

Fragmented Supply Chains.

Ageing.

Multi-Channel Engagement.

In a SWOT Analysis, strengths are written in the top left quadrant. They highlight the internal strengths that you or your organization might be able to take advantage of to meet your goals. Examples of strengths for a SWOT analysis might include motivation, a clear vision, or having strong prior knowledge.

Distributor SWOT Analysis – Mind Map

Distributor SWOT Analysis
- Strengths
  - Customer Database
  - Products
    - Quality
    - Reliability
  - Management
    - Committed
    - Confident
  - Product Dominance
    - Life
    - Durability
  - Experience
  - Sales Control and Direction
  - Ongoing R&D
  - Delivery
    - Direct
      - Global
      - Local
    - Speed
    - Response
- Weakness
  - Gaps
    - Market
    - Distribution
    - Clients
  - Limited Finances
  - Training
    - Delivery Staff
    - Customer Service
  - Limited Supply Chain
  - Sales
    - Limited Experience
    - Limited Resources
  - Weak Customer Database
  - No Direct Marketing
  - Management
    - Communication
    - Control

Opportunities
- Poor Product Competition
- New Products
- High Profit Margin
- Product
  - Niche
  - General
- Global Expansion
- Agile Market Response
Threats
- Vulnerability
  - Competitors
  - Market Trends
- Political Movement
  - Policies
- Seasonal Demand
- Environmental Effects
- Negative Publicity
- Core Business
  - Distraction
  - Distribution Risk

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a method for identifying and analyzing internal strengths and weaknesses and external opportunities and threats that shape current and future operations and help develop strategic goals. SWOT analyses are not limited to companies.

Threat of new entrants

With investment approvals of up to 100 per cent foreign equity in single brand retail and 51 per cent in multi-brand retail, the market is expected to be crowded. Also, companies will be forced to spend aggressively on advertisement, which will only hurt the business in the long run.

Top FMCG Industry Trends

Sustainability. Consumers are becoming more conscious of climate change and its impact on the environment.

Customer Experience.

Digitalization.

FMCG e-Commerce.

Big Data & Analytics.

Artificial Intelligence.

Direct Distribution.

Internet of Things.

Examples of Weaknesses.

Self-criticism.

Shyness.

Lack of knowledge of particular software.

Public speaking.

Taking criticism.

Lack of experience.

Inability to delegate.

Lack of confidence.

Examples of threats in a SWOT analysis

Social perception. With the rise of social media, consumers are increasingly aware of the business practices of the companies they support.

Natural disasters.

Technological changes.

Legislation.

Competition.

Globalization.

Data security.

Rising costs.

There are many types of opportunities you can post, depending on what you need or are looking to do, such as:

Get help on projects.

Propose working groups.

Get testers for new ideas or products.

Create a team to work on an idea you have.

Share your expertise or best practices in a particular field.

Strategic challenges for FMCG and Retail

The Marketing Challenge. The goals of marketing remain unchanged, but not the way in which these are reached.

Promote and look after new channels.

Multichannel Sales Equality.

Global.

Organizational Model.

Innovation.

Efficient management of Prices and Promotions.

Generate Value.

Here are some of the weaknesses in FMCG Industry Big Data Information blast is in progress as the capacity to gain, store, and cycle information keeps on improving exponentially.

The FMCG world previously hadweek after week consumer deals, brand following, consumer boards, customer information frominviting and all on repaid retailers and another

couple of hundred measurements relying upon whichinformation/examination association you converse with. 95% of the information being produced and offered to energetic marketers and investigators is futile.

The more brilliant associations will purchase just the significant information (oversee data costs), conclude the right linkages to consumer conduct and use it viably to create items, oversee exchange andconvey adequately to consumers.

Opportunities of FMCG Industry.

The Indian and Multinational FMCG playersare utilizing India as a key sourcing center point

for savvy item development and assembling to oblige the worldwide markets. With the ascent in

the discretionary cash flow consumers lately havemoved their buying from basic to premium items.

Because of this, the organizations have begunimproving its excellent portfolio. As indicated by

a study directed, the FMCG sector will arrive at new statures of USD 103.7 billion by 2020. This

worth unmistakably expresses that, there is a tonof extension in the FMCG sector for notable just as

developing organizations and brands.

In the following ten years, the income of the FMCG (Fast Moving Consumer Goods) marketis set to develop at a higher rate. Patterns are an incredible way, which grandstand the current happenings and furthermore give a standpoint about the future occasions.

They additionally have a more drawn out timeframe of realistic usability and are driven by social, social and political elements.

The Customized Approach.

As of late, the consumers have become brand conscious as they favor a great way of life and

premium reach items. Consumers quickly need to recognize what’s coming up for them and principally center on the advantages and points of interest of each item.

This has made the FMCG organizations to underline on enhancing its current item portfolio

and growing new ones. Also, customization and personalization is the route forward for FMCG

organizations. With an altered help approach, the FMCG organizations add a customized touch to a consumer’s item.

This includes a reward point the organization’s name and makes the current consumers to search forward for future joint efforts. It also draws in new consumers to encounter the customization

cycle. This customization system accompanies an expense, yet in addition has immense benefits as it offers the FMCG organizations a knowledge into their consumer’s conduct and behaviour

Threats of FMCG Industry

The FMCG market in India is required to develop at a CAGR of 20.6 percent and is relied upon to arrive at US$ 103.7 billion by 2020.The development in deals of major FMCG organizations like Dabur, HUL, Marico, is pushing the recovery in India.

Believe it or not, there are only four ways to increase your revenue:

Increase the number of customers.
Increase the average transaction size.
Increase the frequency of transactions per customer.
Raise your prices.

Consumer-Shift-in-sku-buying-in-fmcg-goods.

Online Marketing Leads the Way

The millennial and Gen Z consumers are filling in numbers as are their interesting arrangements of requests. An ongoing study expresses that they aremore intrigued to realize the encounters to share it on different online media stages.

Living in an advancedworld, web based marketing is certainly an approachto connect with the crowd. As everybody today is impacted by web-based media, it certainly gives a diagram to comprehend or know any particular about items.

So as to grow, the FMCG organizations ought to accentuate on experience sharing to draw in consumer consideration.

Health and Wellness

There is developing mindfulness among the consumers with respect to their prosperity. The worldwide and neighborhood FMCG organizations are putting significantly in the wellbeing and wellbeing sector, as larger part of individuals today are into wellness and mean to live and encounter a solid way of life. The saying Health is Wealth,genuinely characterizes the strength of a person, as it is the most essential perspective to lead a more extended and illness free life.

Wellbeing and health is a pattern, which is forming the consumer inclinations. The main

worldwide and Indian food and drink organizations are grasping this pattern and zeroing in on making new rising items in the medical services area. ‘100% Organic’, which on occasion are deceiving and vague. With the goal for organizations to have an effect, they have to bring to

the table solid and natural choices on a platter which are most appropriate for the consumer’s comfort.

Bargaining Power of Buyers

While rising salaries and developing youth populace have been key development drivers of

the sector, brand consciousness has also supported demand. With low exchanging cost prompting

clients to move to different items, there may be more interest for new items.

Also, the accessibility of same or comparative other options, sponsored by solid impact of marketing procedures will support the sector. India’s consumer spending is relied upon to increment to US$ 3.6 trillion by 202

Bargaining Power of Suppliers

Large FMCG organizations are frequently in a situation to direct costs through nearby sourcing

from a fragmented gathering or key item providers. Providers can apply tension on organizations and even purchasers by raising costs, bringing down quality or decreasing item accessibility.

Such choices generally influence the purchaser. Competitive Rivalry Numerous players are venturing into new geologies and classes and present day retail share is relied upon to be esteemed $180 billion out of 2020.

The FMCG business has been an exceptionally fragmented industry as more organizations enter the market. On the off chance that Wipro is enhancing and growing its item range in caffeinated beverages, cleansers and texture conditioners, Patanjali will burn through US$743.72 million in different food stops the nation over.

Additionally, dispatch of private name brands by huge retailers, which are seriously

evaluated with offers and limits, will restrict rivalry for frail brands

Threat of New Entrants.

Any new rivalry in the market presents danger to the current parts in the business. With investment

endorsements of up to 100 percent unfamiliar value in single brand retail and 51 percent in multi-brand retail, the market is required to be packed. Also, organizations will be

compelled to spend forcefully on advertisement, which will just damage the business.

Threat of Substitutes.

With high presence of various brands in the market, it’s anything but a test for consumers to

change starting with one item then onto the next. Key choices like value point and quality assume

key parts in drawing in consumers.

With restricted item separation under numerous brands, it’s fairly simple for a consumer to change to another brand.

The danger of substitutes is educated by exchanging costs, both prompt and long haul, just as a purchaser’stendency to change.

Summing Up in perspective.

India is the most alluring FMCG market on the planet. FMCG market developed in India throughout

the years yet it is profoundly fragmented. There are on 12-15 million outlets in the nation making it a US$ 327 billion market. In recent years FMCG market saw a development of 21.4% from 2010 to 2014, which is higher than Indian GDP development.

Developing youth segment and working women populace, rising livelihoods and rising buying power, higher brand consciousness, changing consumer inclination, developing urbanization, Increase in number of upper working class and rising web entrance are the greatest drivers in the development of FMCG industry of India.

Prior to the progression and globalization in 1991, western clothing, foods

and so on were not accessible in the Indian market and the brand mindfulness and review among the neighborhood populace, however after 1991 the mindfulness has consistently expanded.

Is SWOT analysis required on a Company Salesman?

If you want to succeed then be honest and critical on your weaknesses.

Be clear and realistic with your weaknesses like what is holding your business back, is it your workforce whose skills are not at par with your competitors.

Is your competitor financially stronger than you or has a better quality product than yours.

Gather all information and assess the weaknesses closely because it is best to know your weakness now and work on it.

Compare yourself to the best player in the market and see in what aspects you are lacking behind.

SWOT stands for strengths, weaknesses, opportunities, and threats. From a sales and marketing perspective, a SWOT analysis helps you assess where your business stands in the market. You can gain insights on how it compares with your competitors and how to leverage your unique selling points to get more market shares

Every successful sales person should have four major strengths: Ambition, commitment, responsibility, and outlook. With those four major strengths, usually come five major weaknesses. Over coming these weaknesses results in a very successful sales person.

Need for approval. Need for approval becomes a weakness when a salesperson cares more about being liked than they care about closing business. Taking criticism or bad attitudes personally is never a good thing, but it’s especially dangerous in sales, where reps regularly deal with rejection.

Strengths and Weakness of a Salesperson

Strengths common to salespeople regardless of personality type include drive, determination and persuasiveness. Weaknesses that should be overcome to thrive in a sales career include social awkwardness, shyness and fear of rejection.

The golden rule salesperson focuses on one thing: doing right by the client. This focus on the client’s needs supersedes the salesperson’s desire for income or ego gratification.

The FMCG sector is a beast with market size contacting about Rs. 1.7 lakh crore in India.

Also, fundamental patterns have not changed separated from some genuine creative items coming in theimage. In any case, more modest kirana stores assume the greatest part in the business. 98% of the market is as yet overwhelmed by the little stores inspite of the Big (Bazaars/Baskets) on advancing with hotshots.

Be that as it may, while the deals and appropriationpatterns are same, consumer patterns are evolving. In US consumers utilize in excess of 80 brands in their family, yet in India it is just on 15 brands. This number will go up to 30 brands in every family by 2021. So I’ll not be violated in saying that in a nation having a populace of in excess of a billion consumers, you could be one of the 15 outstanding brands.

The FMCG sector is loaded with circumstances and difficulties. Uniqueness in administrations and executions are the essential reins which can drive organizations through complexities of the market and turn out unparalleled client experience. Also, consumers today are getting more mindful than any time in recent memory and are glancing ahead in a more extensive point of view.

Building up a steady social stage and continuing in the more extended run can enable the ventures to travel past the conventional skylines of FMCG market. This effect of the FMCG organizations is considerably fulfilling in India andfurthermore with the consumer conduct advancingat a fast pace, the organizations will unquestionably stay aware of the marketing patterns in future.