Description
The PPT explains about Supply chain management in FMCG Industry.
Population
Seasonality
Disposable Income
Consumption habits & pattern
?
Total size of non-alcoholic packaged drink market is approx. Rs 7000 crore Juice is pegged at 660 mmcs (million unit cases) in terms of volume (juices, nectars, fruit drinks all included)
?
?
Out of these, fresh juices are estimated at 570 mmcs
and packaged juice at 90 mmcs Non carbonated soft drink market is approx Rs 2500
?
crore
?
NCSD includes Fruit drinks, Nectars, and juices. Fruit drinks: below 20% fruit pulp
?
?
?
Nectars: 20-85% fruit pulp
Juices: above 85% fruit pulp
Real Tropicana Fruit Juice Saint Onjus Frooti
Non Carbonated Soft Drink
Fruit Drink
Slice Maaza Mango Sip
Fruit Nector
Appy Classic
Fanta Apple
? ? ? ? ?
Leading food and beverage company First ever company to introduce mango drink Turnover is over Rs 1000 crore 1000+ employees Focuses on innovation and refreshment with
purity in products
Juices
Packaged drinking water
Noncarbonated beverages
Confectionary
Carbonated Beverages
Parle Agro
Bottling Plants
NCSD
• Frooti • LMN
CSD
• Appy Fizz • Grappo Fizz
Confec tionary
• Hippo • Mintrox
Mineral Water
• Bailley
•
Juices
Saint
• Appy Classic
• Butter Cap
?
FMCG has one of the longest supply chain
?
There are as many as 5 intermediaries involved in
entire supply chain before reaching to the customer
?
Generally different channels for different products
of the same company High volume game Comparatively less margins for intermediaries
? ?
Manufacturer
Carry & Forward Agent
Distributer
Retailer
Consumer
Primary Intermediary flow
Secondary intermediary flow
Tertiary Intermediary flow
CFA:
? ? ?
Generally one CFA in a particular territory. CFA does not own the goods. Low margin but very high volume
Distributer:
? ?
?
?
Distributers are appointed area wise They own the goods They get goods from CFA Moderate margin
Retailer:
?
Tertiary level intermediary in the distribution
system Plays with low volume
?
?
? ?
Comparatively high margin
Direct communication with final consumer For very big retailer, dedicated distributer allocated
?
Manufacturer: Not disclosed
?
? ? ?
CFA: Approx. 2%
Distributer: Approx. 5%
Retailer: 10-15%
Above mentioned margins slightly vary depending on demand, schemes by company or promotional offer
?
Reputation in the market
?
Type of other products for distribution with
him
? ? ?
Warehouse requirement fulfillment
Vehicles available Infrastructure offered
Different distribution system for Traditional Trade, Modern Trade, HOREKA(i.e. Hotels, Restaurants, Caterers)
During launch of a new product, same distribution system is used with extra sales force and vehicles for better reach
For matured or declining products, sales promotion is increased, new segments are opened up.
Better reach Timely delivery De-centralization Easy collection of money Tax benefits
?
Managing different intermediaries with their demands Preventing retailers buying from other distributers allocated to them
?
?
? ?
Maintaining standardization among intermediaries
Retaining intermediaries for longer time Maintaining different margins for different intermediaries in the same system
? ? ?
Incentives Various offers, schemes Periodically meetings
?
? ?
Gifts at occasions
Promotion through that particular member
Promotional pricing
Thank You
doc_592937582.pptx
The PPT explains about Supply chain management in FMCG Industry.
Population
Seasonality
Disposable Income
Consumption habits & pattern
?
Total size of non-alcoholic packaged drink market is approx. Rs 7000 crore Juice is pegged at 660 mmcs (million unit cases) in terms of volume (juices, nectars, fruit drinks all included)
?
?
Out of these, fresh juices are estimated at 570 mmcs
and packaged juice at 90 mmcs Non carbonated soft drink market is approx Rs 2500
?
crore
?
NCSD includes Fruit drinks, Nectars, and juices. Fruit drinks: below 20% fruit pulp
?
?
?
Nectars: 20-85% fruit pulp
Juices: above 85% fruit pulp
Real Tropicana Fruit Juice Saint Onjus Frooti
Non Carbonated Soft Drink
Fruit Drink
Slice Maaza Mango Sip
Fruit Nector
Appy Classic
Fanta Apple
? ? ? ? ?
Leading food and beverage company First ever company to introduce mango drink Turnover is over Rs 1000 crore 1000+ employees Focuses on innovation and refreshment with
purity in products
Juices
Packaged drinking water
Noncarbonated beverages
Confectionary
Carbonated Beverages
Parle Agro
Bottling Plants
NCSD
• Frooti • LMN
CSD
• Appy Fizz • Grappo Fizz
Confec tionary
• Hippo • Mintrox
Mineral Water
• Bailley
•
Juices
Saint
• Appy Classic
• Butter Cap
?
FMCG has one of the longest supply chain
?
There are as many as 5 intermediaries involved in
entire supply chain before reaching to the customer
?
Generally different channels for different products
of the same company High volume game Comparatively less margins for intermediaries
? ?
Manufacturer
Carry & Forward Agent
Distributer
Retailer
Consumer
Primary Intermediary flow
Secondary intermediary flow
Tertiary Intermediary flow
CFA:
? ? ?
Generally one CFA in a particular territory. CFA does not own the goods. Low margin but very high volume
Distributer:
? ?
?
?
Distributers are appointed area wise They own the goods They get goods from CFA Moderate margin
Retailer:
?
Tertiary level intermediary in the distribution
system Plays with low volume
?
?
? ?
Comparatively high margin
Direct communication with final consumer For very big retailer, dedicated distributer allocated
?
Manufacturer: Not disclosed
?
? ? ?
CFA: Approx. 2%
Distributer: Approx. 5%
Retailer: 10-15%
Above mentioned margins slightly vary depending on demand, schemes by company or promotional offer
?
Reputation in the market
?
Type of other products for distribution with
him
? ? ?
Warehouse requirement fulfillment
Vehicles available Infrastructure offered
Different distribution system for Traditional Trade, Modern Trade, HOREKA(i.e. Hotels, Restaurants, Caterers)
During launch of a new product, same distribution system is used with extra sales force and vehicles for better reach
For matured or declining products, sales promotion is increased, new segments are opened up.
Better reach Timely delivery De-centralization Easy collection of money Tax benefits
?
Managing different intermediaries with their demands Preventing retailers buying from other distributers allocated to them
?
?
? ?
Maintaining standardization among intermediaries
Retaining intermediaries for longer time Maintaining different margins for different intermediaries in the same system
? ? ?
Incentives Various offers, schemes Periodically meetings
?
? ?
Gifts at occasions
Promotion through that particular member
Promotional pricing
Thank You
doc_592937582.pptx