Competitive Method for FMCG

The market of fast moving consumer goods commonly known as FMCG is wide, diverse and full of competition. A product with high-turnover and low price falls under the category of FMCG. Such products have a small shelf life. It includes items like toiletries, soap, cosmetics, and non-durable items like glassware, bulb, paper products, and batteries. Items like medicines, packaged food & drinks, soft drinks etc also fall under the same category.

The Indian FMCG market is the fourth largest sector in the economy and it plays a crucial role in the Indian economy and creates employment.

The scenario of Indian market is mostly decided by the FMCG companies. There are top business giants taking lead and several hundred emerging companies trying hard to come forward and stand with leading FMCG producers.

The market of FMCG is very competitive and manufacturers are coming forward with the latest ideas and techniques to beat the competition and remain on the top.

A recent boon in the FMCG sector has made it highly competitive. The mushrooming number of companies has made market a ground for the FMCG companies to offer their best and grab a bigger section of the people. Innovative, marketing campaign, best price offer and attractive packaging clearly indicate how tough the market is.

The market of FMCG is very wide and the demand of FMCG products will increase in the coming future. Companies plan competitive strategies in order to attract and connect to the potential customers. The goal of designing a competitive strategy is to provide better service to the consumer at low price and stand ahead of the competitor.

Five main competitive strategies are:

  • Overall low cost leadership strategy
  • Best cost provider’s strategy
  • Broad differentiation strategy
  • Focused low cost strategy
  • Focused differentiation strategy

There is no single strategy that can define success. Different FMCG companies follow different strategies to attract the consumers.

HUL the leader of FMCG’s strategy is to provide customer friendly products at low prices without compromising on the cost. The portfolio of HIU includes premium brands like Pond’s Age Miracle and Dove hair care line.

The market of FMCG is spread all over the country. Earlier companies were concentrating on big cities and metro cities for selling the products and their marketing plans and advertising were designed suiting the taste of urban people. But now the latest trend shows that the FMCG market has a lot more potential in rural market and the Indian rural market has lots of surprises for the FMCG manufacturers.

Leading FMCG’s like HUI, ITC, and P&G have planned competitive strategy to tap the unexplored section of the marketing world. FMCG companies can earn a fortune with the right competitive strategies.

Sectoral Opportunities

Below mentioned sectors provide good opportunities to FMCG in India. With proper planning and R&D work companies can harvest great revenues.

Dairy Based Products

India is the largest milk producer in the world. The dairy business has long term growth potential. Only 15% milk is processed the organized liquid milk business is in its initial stage. FMCG’s can explore dairy sector for potential growth. The market of milk offer various varieties like desserts, puddings, etc. with proper planning and strategy companies can explore the dairy market on the next level.

Packaged Food

The concept of packaged food has just started gaining acceptance in India. With the changing trend of lifestyle and people’s acceptance to packaged foods to include it in their daily life the industry has huge potential for expansion in the coming years.

Oral Care

Oral care market especially toothpaste has lots of potential to grow. In rural areas and small town people are still following the old way of maintaining oral hygiene. Now the scene is changing. To explore the untamed market, plan a well-designed awareness program and take special care of packaging and pricing and explore the untouched group of potential customers. Brands like Colgate and Pepsodent have  launched small packaging at a low price to attract the customers.


Tea, one of the most cherished and popular drinks of India are run by unorganized players. There are only few topmost FMCG players involved in tea marketing and almost 50% tea market is captured by unorganized players. By organizing effort in tea sectors FMCG companies can earn higher revenues.

The growth of FMCG sector was tremendous in the last decade yet it has more to explore in coming decades. There are lots of sectors and areas which need to be explored and analyzed properly. With quality research and proper marketing FMCG companies can multiply their revenue and income.

The potential of growth for FMCG sector is immense. Target the right sector and plan a strategy to stand ahead and earn higher revenues.