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Shahreyar: RBS SECTION: HR A | GROUP 3 Abhimanyu Singh Tomar | H20003 Anwesha Chowdhury |
H20010 Sanishtha Bhatia | H20046 Smriti Grover | H20173 MARKETING CAPABILITIES IN FMCG
INDUSTRY 1 Contents
INTRODUCTION............................................................................................................... 2 MARKETING
CAPABILITIES AT HUL............................................................................. 2 MARKETING CAPABILITIES
AT NESTLE....................................................................... 4 MARKETING CAPABILITIES AT
ITC .............................................................................. 7 MARKETING CAPABILITIES AT
PATANJALI ................................................................ 8
CONCLUSION ................................................................................................................... 9 2 INTRODUCTION
Marketing competency is defined as an organization's ability to identify and meet customers' demands at the
right time, at the right place, and at a reasonable price. Marketing ability is critical for long-term business
success. As the customer is flooded with choices, strong marketing capabilities is essential for the financial
success and growth of a brand as we move to a customer-centric approach. These capabilities may be
manifested in various forms- the various P's, the brand reputation and even through R&D (for market research).
In this paper, we take a look at the market strategies of some of the leading FMCGs in India. FMCG, or fast-
moving consumer goods, is India's fourth-largest and fastest-growing economic sector. That being said, an
FMCG is only as good as its marketing strategy. MARKETING CAPABILITIES AT HUL Hindustan Unilever
Limited (HUL) is India's largest fast-moving consumer products corporation, with a history dating back over 85
years. Nine out of ten Indian families utilize their goods on any given day. HUL is recognized for its outstanding
brands, excellent social effect, and commitment to ethical business practises. The Company is a part of the
everyday lives of millions of consumers across India, with 50+ brands spanning a large number of categories
with leading brands in several of them. HUL employs about 21,000 people and generates revenue of INR 45,311
crores (financial year 2020-21). Forbes rated HUL as the most innovative Company in India and #8 globally.
Market Penetration For Indian industries, particularly FMCGs, rural areas have emerged as one of the most
attractive marketplaces. Many companies have recently ventured into rural regions, and this has shown to be
successful and useful. The Indian rural markets provide a plethora of chances for businesses to enter and
economically operate. Rural India's enormous population base allows businesses to generate a significant
amount of money. HUL derives close to 50% of it's revenues from rural Indian market owing to it's excellent
market penetration which is a result of savvy business strategies like the Shakti initiative. Product Range and
Innovation The Indian economy has undergone consistent development over the last decade, resulting in an
expanding middle class with changing consumer requirements and ambitions. HUL has responded by making
smart acquisitions, launching new products, and developing new 3 product forms. The wide range of products at
HUL helps them cater to a wide demographic of consumers as well. For example, Indulekha hair oil was
acquired by HUL to boost its presence in the Premium Naturals market, and the brand has grown sixfold in the
five years following its acquisition. HUL has also added well-known brands like Horlicks and Boost to its
growing nutrition portfolio Fast Adaptation to Consumer Needs Given the widespread network and marketing
capabilities HUL is able to identify changing consumer needs and adapt/ introduce products to fill the need gap.
For instance, The influence of Covid-19 resulted in increased consumer demand for health, hygiene, and
sanitation goods, as well as the introduction of new products such as fabric sanitizer and fruit and vegetable
wash. With more people doing their own housework, there has been an increase in demand for dishwashers,
prompting the launch of the Vim Matic dishwasher line to meet this demand. Distribution Network One of
Hindustan Lever Limited's primary assets is its distribution network, which allows them to reach their products
across the length and width of our enormous country. To address the ever-changing demands of consumers,
HUL has established a distribution network that ensures that all of its goods are available at all times, in all
locations. This entails, among other things, maintaining positive trade relations, giving creative incentives to
merchants, and conducting demand development operations. Digital and Technical Capabilities Data-driven,
analytics-led, AI- and machine-learning-powered technology that uses automation and grows intelligence over
time will be the core of this 'intelligent enterprise,' and will fuel HUL's growth in this decades according to the
CEO Sanjiv Mehta. It's the foundation of a digital strategy that will include conventional suppliers and
customers. HUL os working towards digitalizing the conventional trading network. 4 The digitalization of
distributor operations, AI-based order capture, and the next layer of intelligent operations, such as suggestions,
replenishment-based ordering, delivery route optimization, and dynamic beat optimizing, are at the heart of
HUL's digitalization programme. Shikhar is a HUL eB2B app that links sales teams to more than 500,000
Unilever-stocked retailers. It guaranteed that orders were received during the pandemic when the sales crew
couldn't access the stores due to lockdowns. It also aided in the optimization of delivery. It computed the best
potential paths to access stores that avoided confinement zones and other constraints by triangulating location
data. MARKETING CAPABILITIES AT NESTLE In terms of sales and profitability, Nestle is one of the
largest companies in the food processing business. It is a Fortune 500 corporation with a market valuation of
$250 billion that serves various client segments all over the world. The world's top health, nutrition, and
wellness organization is dedicated to meeting the needs and desires of its customers and their families all over
the world in order to help them live a better lifestyle. Nestle follows a marketing strategy based on segmentation
through the following – Geographic - When comparing geographies, Nestle sales differ. The corporation is
aware that consumption habits vary throughout seasons and regions, which causes the Company to provide and
distribute somewhat different items based on the geographical location of the selling point. As a result, we may
discuss geography as a market segmentation criterion. Nature: Nestle Singapore, for example, split its market
for Nescafe Ice based on regional conditions (warm hot and cold). Nescafe Ice: A coffee that may be consumed
with ice. During the summer, customers make their coffee with regular, chilled, or cold water and ice cubes to
keep their bodies cool. Demographic - Children and the elderly are the most significant client segments in terms
of age as a foundation for market segmentation. In fact, Nestle was initially aimed just at these two
demographics. It provides Milo with added nutritious value, such as vitamins and minerals, for the former.
Clinical nutrition should be considered for elderly persons. However, they now practically cover all age groups.
Nestlé split the market for its primary products depending on generation. Nestlé classified the market area
segment for the goods 5 Cerelac, Lectogen, Koko Krunch, and Nido into newborn infants and children of
various ages. Nido: It is a nutritious milk made especially for children aged 2 years and up. It contains 25
minerals and vitamin D, which aid in the growth of children. Cerelac: Nestle also offers cerelac for newborns. It
comprises a milk and rice mixture for babies under the age of one year. It satisfies the baby's nutritional needs in
meals. Nesquick and Koko Krunch: These are chocolate milks for newborns. Nesquick and Koko Krunch
provide the necessary growth for children. It's incredibly sweet and tasty, and it's also high in vitamins, protein,
and minerals. Lactogen - Nestle Singapore introduces full cream milk powder to the country. It provides the
necessary nourishment for the newborn. Lactogen one is for children under the age of six months, while
lectogen three is for kids under the age of one year. Behavioral - Nestle split their market in an effective manner
based on benefits. As a result, Cerelac is made available to consumers who wish to maximize their profits from
the product. Cerelac has a high level of nourishment for babies under the age of one year. Rice and milk, two
essential ingredients, are still present in cerelac. Cerelac, on the other hand, contains vitamins, minerals, and all
of the essential nutrients for newborns. Psychographic - Lifestyle and personality: Nestle provides KITKAT
those who really want to enjoy chocolate. Nescafe 3 in 1 is for exclusively those customers who are really busy
and do not have enough time. They can save their time by taking Nescafe 3 in 1.All the things sugar, milk, and
coffee remain mixed. Building Marketing Capability through Nestle's Secret Weapon – Digital Acceleration
Team (DAT) When the Company's Digital Acceleration Team (DAT) was formed, the brand's focus switched
significantly to digital. The DAT is in charge of screening proposed advertising technologies. It is focused on
two goals: DAT's first responsibility is to teach staff on the digital side of the Company. This encompasses
everything from social networking to search engine optimization. DAT's second task is to collaborate with
fascinating digital trendsetters to develop distinctive and innovative ad methods. This component of DAT assists
Nestle in being relevant and cutting-edge in its marketing strategy. Nestle devotes 12 people to 6 investigating
and testing new ad technologies in order to develop an innovative digital strategy that will assist increase
Nestle's digital presence. The crew works in front of screens that display current, real-time data trends, giving
them a view into what's going on in Nestle's digital world at any given time. Metrics like as trending posts,
chats, and sentiment level are measured by the displays. This information enables the team to choose when and
how to interact with their social and digital following. Nestle's DAT has built a worldwide brand that
encompasses thousands of lesser companies, so it's reasonable to argue that your firm may benefit from a
digital-focused staff as well. Nestle's Focus on Brand Building to Sustain Marketing Capabilities Nestle has a
six-point method to brand creation. Nestle's head of digital and social marketing Peter Blackshaw told CMO,
"The best and brightest come to our headquarters for eight months at a time for pure training and conducting
work on digital." "There are around 11 marketers working at any given moment, and they execute initiatives
through listening and interacting." Nestle's digital transition was aided by six factors, which are as follows: •
Innovating • Knowing its customers • Winning over shoppers • Forming creative and engaging brand
experiences • Granting excellent product experience • Using and inspiring through its brand vision Nestle has
worked hard to ensure that its old marketing tactics combine well with the modern, tech-savvy ones, in addition
to developing a systematic approach to digital brand creation. They've sought to include things like QR codes on
candy bars as a method to combine the new and old approaches. They use this combination and select when to
use conventional vs. digital media by watching their customers' behaviour. If they see that a certain product
appeals to a younger demographic, digital is unquestionably the way to go. However, they recognize that this
does not imply that they should forsake the more conventional approach to Nestle's marketing. By combining
these two worlds, the Company is better able to retain its older and most loyal clients while being relevant with
today's modern technologies and younger generations. This dynamic marketing technique is the most beneficial
for Nestle. It is DAT's responsibility to 7 ensure that all Nestle workers throughout the Company's many brands
support the Company's successful strategy. MARKETING CAPABILITIES AT ITC The Imperial Tobacco
Company of India was founded in 1910 and initially controlled tobacco products for a long period before
expanding into non-tobacco products in the 1970s. Since then, ITC has grown into a multi-business
conglomerate with operations in a variety of industries. 4P's at ITC: Product: ITC's marketing mix is diversified,
comprising businesses in FMCG, Agri-business, Hotels, Information Technology, Paperboards, and Packaging.
The product offerings have a great deal of length and depth to them. ITC products are available in over 90
countries across the globe. The brand even leverages its strong in-house R&D to develop customized offerings
for different geographies and invests heavily in diversification. Pricing: ITC has different price points as it has a
diversified product portfolio. The pricing of a product is determined by a number of factors, including the
pricing target, the market one is operating in, customer purchasing power, market conditions, and the product's
market position. Bingo, for example, had an aggressive price strategy to acquire market share when it first
entered the market. They kept their prices the same as the market leader but offered merchants more quantity
and margin, giving them a competitive advantage. For each product, ITC has a different marketing mix price
strategy. Their low-cost brands have low-cost prices. The expense of marketing and manufacturing is kept to a
minimum. Place & Distribution: ITC has an unrivalled distribution network. Its products are sold in over 4
million retail outlets across India. ITC is always looking for ways to shorten lead times and get items to retailers
as soon as feasible. E-choupals ensure that high-quality raw materials are delivered on time. ITC has a well-
integrated production and logistics infrastructure and a large and diverse distribution network. ITC has unique
agri-sourcing capabilities, including farm-to-market connections. Promotion: ITC creates its promotion plan
with its brand promise and target demographic in mind. As part of its marketing mix, it uses print, television,
and radio to promote its goods. ITC's various brands each have their own brand ambassadors. ITC has also
created some of the most famous campaigns. Ideas for India Challenge, the world's largest student contact 8
initiative, was created by Classmate. It gave a forum for Indian youth to discuss and confront the concerns and
challenges that our country faces, as well as contribute to the country's development. To achieve maximum
involvement, ITC also runs a number of digital campaigns. One example is the Fiama De Wills Men
advertising. Fiama DE Wills collaborated with Masaba Gupta, a skilled designer, for Wills Lifestyle Fashion
Week. ITC also engages in cross-promotional activities. YiPPee! collaborated with Paytm on a promotion that
offered recharge vouchers equal to the cost of YiPPee noodles. To support the initiative, the corporation ran a
commercial. CSR for branding: With "Nation First" as its key philosophy, ITC's campaigns are almost always
focused on the positive impact it creates in the lives of a billion Indians. The company extensive CSR efforts are
not only focused on improving lives but also in creating a sustainable and environment-friendly business, thus
earning it a brand reputation unlike any other. Digital marketing efforts: In recent times, ITC has been focused
on digital marketing initiatives. With a newly set-up D2C e-store, the Company has also appointed a dedicated
e-commerce team that focuses on generating consumer insights, leveraging data analytics and making the
Company's offerings available to a larger audience. It has also set up a marketing command centre that will
generate real-time campaigns in social media and undertake consumer research for new products.
MARKETING CAPABILITIES AT PATANJALI Patanjali's marketing capabilities are what contributed to the
meteoric rise of the organization from a small pharmacy to an Indian FMCG that closes turnovers in billion
dollars. Building the brand upon linking ancient wisdom with modern technology, the two major contributors to
the success of Patanjali in the FMCG and Natural Product world despite competing with industry giants are: 1.
TARGETED MARKETING STRATEGY: While brands like Baidyanath made quality products that attracted
consumers, it could never find expand with a successful strategy. Patanjali generated and captured demand
through targeted marketing that differentiated across geographies and leveraged cultural differences to make 10x
profit (9000 cr.). 2. FACE VALUE: Ramdev Baba was known for his yoga and ayurvedic knowledge for years
before the brand launch and this added to Patanjali's success. His presence in advertisement campaigns created
trust amongst the consumers and resulted in brand loyalty. 9 Baba Ramdev and Acharya BalKrishna realized
that they already had a captive market that is health-conscious, on the lookout for low-cost items, believes in the
swadeshi ideology. This captive market's duty was expanded to include not just purchasing, using, and
promoting positive word of mouth about PAL products but also becoming franchisees. The majority of the
franchisees established by PAL originated from this captive market in the beginning. Along with product
delivery, these franchisees advertised and promoted PAL products in their various regions, firmly creating the
Patanjali brand in the minds of the local population. Patanjali's involvement in Awareness Generation for
Consumer Focus: Rather than pitching its products as just another competitor in the crowded FMCG market,
Patanjali did a thorough analysis of the market and identified a gap. To carve out a niche in the market, Baba
Ramdev took extra steps to educate customers about how MNCs exploit farmers by underpaying them,
deceiving consumers with exorbitant pricing, and endangering consumers' health by selling products laced with
harmful chemicals and pesticides. He educated customers on how multinational corporations' profits are eroding
our nation's assets. As a result, Patanjali stepped in to fill the void, cleverly packaged with the flavours of
"patriotism, health, and natural." CONCLUSION We observe well-established organizations with a strong
global presence that boast multiple brands and market footprint, as well as a fast-growing "Swadeshi" brand that
inspired varieties undertaken by the global organizations. The primary game-changer in all cases started from
understanding and adapting to consumer needs. These involved steps as simple as personal reach and creating a
captive market through brand carriers to detailed psychographic tests for customization. We also observe the
importance of innovation and R&D to maintain a stronghold in the market and perform consistently. And it has
recently turned towards incorporating newer marketing methods channels and exerting influence that builds
demand more than the traditional strategic routes.

Shahreyar: Nestle's Focus on Brand Building to Sustain Marketing Capabilities Nestle has a six-point method to
brand creation. Nestle's head of digital and social marketing Peter Blackshaw told CMO, "The best and brightest
come to our headquarters for eight months at a time for pure training and conducting work on digital." "There
are around 11 marketers working at any given moment, and they execute initiatives through listening and
interacting." Nestle's digital transition was aided by six factors, which are as follows: • Innovating • Knowing its
customers • Winning over shoppers • Forming creative and engaging brand experiences • Granting excellent
product experience • Using and inspiring through its brand vision Nestle has worked hard to ensure that its old
marketing tactics combine well with the modern, tech-savvy ones, in addition to developing a systematic
approach to digital brand creation. They've sought to include things like QR codes on candy bars as a method to
combine the new and old approaches. They use this combination and select when to use conventional vs. digital
media by watching their customers' behaviour. If they see that a certain product appeals to a younger
demographic, digital is unquestionably the way to go. However, they recognize that this does not imply that they
should forsake the more conventional approach to Nestle's marketing. By combining these two worlds, the
Company is better able to retain its older and most loyal clients while being relevant with today's modern
technologies and younger generations. This dynamic marketing technique is the most beneficial for Nestle. It is
DAT's responsibility to 7 ensure that all Nestle workers throughout the Company's many brands support the
Company's successful strategy.

Chatsonic: Nestle

Shahreyar: Paraphrase this report, Nestle's Focus on Brand Building to Sustain Marketing Capabilities Nestle
has a six-point method to brand creation. Nestle's head of digital and social marketing Peter Blackshaw told
CMO, "The best and brightest come to our headquarters for eight months at a time for pure training and
conducting work on digital." "There are around 11 marketers working at any given moment, and they execute
initiatives through listening and interacting." Nestle's digital transition was aided by six factors, which are as
follows: • Innovating • Knowing its customers • Winning over shoppers • Forming creative and engaging brand
experiences • Granting excellent product experience • Using and inspiring through its brand vision Nestle has
worked hard to ensure that its old marketing tactics combine well with the modern, tech-savvy ones, in addition
to developing a systematic approach to digital brand creation. They've sought to include things like QR codes on
candy bars as a method to combine the new and old approaches. They use this combination and select when to
use conventional vs. digital media by watching their customers' behaviour. If they see that a certain product
appeals to a younger demographic, digital is unquestionably the way to go. However, they recognize that this
does not imply that they should forsake the more conventional approach to Nestle's marketing. By combining
these two worlds, the Company is better able to retain its older and most loyal clients while being relevant with
today's modern technologies and younger generations. This dynamic marketing technique is the most beneficial
for Nestle. It is DAT's responsibility to 7 ensure that all Nestle workers throughout the Company's many brands
support the Company's successful strategy.

Chatsonic: Nestle has taken a comprehensive approach to its brand building and marketing capabilities,
carefully blending both traditional and modern tactics. By innovating, knowing their customers, and creating
engaging brand experiences, Nestle is able to win over shoppers and provide a fantastic product experience. To
ensure the effectiveness of their approach, Nestle has created a system of digital brand creation that includes
elements like QR codes and other digital media. Additionally, the Company has made sure to retain its long-
time customers by carefully balancing traditional and modern tactics, as well as inspiring others through its
brand vision. The key to Nestle’s success lies in its ability to stay up-to-date with modern technologies and
trends while also appealing to its loyal customers, ultimately creating a dynamic marketing approach that is
beneficial for the Company.