FMCG Case Study

Abstract

The Fast Moving Consumer Good (FMCG) industry primarily deals with the production, distribution, and marketing of consumer-packaged goods. As the definition suggests, FMCG goods are also popularly called CPG (Consumer-packaged goods). The Fast Moving Consumer Goods (FMCG) are those products that are consumed by the consumers at regular intervals. In the FMCG industry, the products have turnover quickly at a relatively low cost.¹This industry operates as a high volume business and less margin. This segment can be classified into premium segments and popular segments. The premium segment consists of the consumers from higher income strata and is not sensitive to the price but is more quality and brand conscious. On the other hand, popular segments target the consumers from medium to low income strata who are not brand conscious and are very sensitive to the price. The products sold to the popular segments are lower in prices as compared to the premium segments. The industry is comprised of consumers and non-durable products and is broadly classified under three categories displayed in Figure 7-1.