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FMCG industry, alternatively called as CPG (Consumer packagaed goods) industry primarily deals

with the production, distribution and marketing of consumer packaged goods. The Fast Moving
Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at
a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing,
purchasing, etc. The industry also engaged in operations, supply chain, production and general
management.

FMCG industry economy


FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG manufacturers is
also growing and as a result of this, investment in FMCG industry is also increasing, specifically in
India, where FMCG industry is regarded as the fourth largest sector with total market size of
US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is
regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product
(GDP).

Common FMCG products


Some common FMCG product categories include food and dairy products, glassware, paper
products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing
and stationery, household products, photography, drinks etc. and some of the examples of FMCG
products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes,
watches, soaps etc.

Market potentiality of FMCG industry


Some of the merits of FMCG industry, which made this industry as a potential one are low
operational cost, strong distribution networks, presence of renowned FMCG companies. Population
growth is another factor which is responsible behind the success of this industry.

Leading FMCG companies


Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter
& Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.

Job opportunities in FMCG industry


FMCG industry creates a wide range of job opportunities. This industry is a stable, diverse,
challenging and high profile industry providing a wide range of job categories like sales, supply
chain, finance, marketing, operations, purchasing, human resources, product development, general
management.
Our Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and
beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and
enrichment to our employees, our business partners and the communities in which we operate. And in
everything we do, we strive for honesty, fairness and integrity.

Our Vision

"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate -
environment, social, economic - creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit
society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose


At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on
society - delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward - drive shareholder value. By addressing
social and environmental issues, we also deliver on our purpose agenda, which consists of human,
environmental, and talent sustainability

PepsiCo is one of the world's leading producers of snack foods and beverages
including Pepsi soda. Its principal businesses include: Frito-Lay snacks, Pepsi-
Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods.
PepsiCo brands are available in nearly 200 countries and territories.

Major Frito-Lay products include Lay's potato chips, Doritos tortilla chips, Tostitos
tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato
chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix,
Lay's Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks.
Frito-Lay also sells a variety of branded dips, Quaker Fruit & Oatmeal bars,
Quaker Quakes corn and rice snacks, Grandma's cookies, nuts and crackers.

Pepsi beverage brands include Mountain Dew, Diet Pepsi, Gatorade, Tropicana
Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel,
SoBe, Slice, Dole, Tropicana Twister and Tropicana Season's Best.

For fiscal 2007, PepsiCo had record revenues of $39 billion.

The Pest Analysis identifies the political, economical, social a technological influences on an
organization.

Political influences: - The production distribution and use of many of PepsiCo product are
subject to various federal laws, such as the Food, Drug and Cosmetic Act, the Occupational
Safety and Health Act ad the Americans with Disabilities. - The businesses are also subject to
state, local and foreign laws. - The international businesses are subject to the Government
stability in the countries where PepsiCo is trying get into (underdeveloped markets). - The
federal, state, local and foreign environmental laws and regulations. - The businesses are also
subject to de taxation policy in each country they are operating. - They also have to comply with
federal, state, local and foreign environmental laws and regulations.

Economic influences: - The companies are subject to the harvest of the raw material that they
use in their snack foods, soft drink and juice, like corn, oranges, grapefruit, vegetables,
potatoes, etc. - Because of they rely on trucks to move and distribute many of their products,
fuel is also an important subject, so they are subject to the fuel p

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Sociocultural influences: - PepsiCo and moreover Pepsi is subject to the lifestyle changes,
because of it bases her advertising campaigns in a concrete kind of people with an special
lifestyle, it is for that PepsiCo has to pay a special attention on the lifestyle changes. -
Particularly in the United States Pepsi drinkers are very defined, there is a kind of people who
drinks Pepsi another kind who drinks Coca-Cola, it is for that they have to pay attention to the
social mobility for not losing a possible market. - Taking into account that PepsiCo is trying to
introduce itself in underdeveloped markets, they have to be careful with the possible problems
with the governments of this countries, and with the problems could rise from PepsiCo act with
the people of this countries.

rize fluctuation, and to possible fuel crisis. - Operating in International Markets involves
exposure to volatile movements in foreign exchange rates. The economic impact of foreign
exchange rates movements on them is complex because such changes are often linked to
variability in real growth, inflation, interest rates, governmental actions and other factors. -
PepsiCo is also subject to other economical factors like money supply, energy availability and
cost, business cycles, etc.

Technological influences: - PepsiCo is subject to new techniques of manufacturing, for their


three business sectors, snack food, juices and soft drinks. - It has to pay attention to the new
distribution techniques. - And they have to fix their attention in the competence developed, to
know about the new products. Porter’s Diamond: The Porter’s Diamond Analysis tries to explain
the Competitive Advantage of Nations. There are four attributes of a nation comprise Porter’s
Diamond of national advantage, they are: Factor Conditions: The basic factor conditions are
natural resources, climate, location, the more advanced factor conditions are skilled labour,
infrastructure and technology. There are some of these factors that can be obtained by any
company (like unskilled labour and raw materials) and, hence, do not generate sustained
competitive advantage. Even though, we have to take into account that specialized factors
involve a heavy and sustained investment, we have to know that if we are able to achieve them,
we could generate a competitive advantage.

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