SWOT Analysis of FMCG Industry

SWOT analysis of FMCG Industry Strengths:

1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector 4. eep roots in local culture ! "reat understandin" of consu#er needs Weaknesses:

1. Lower scope of in$estin" in technolo"% and achie$in" econo#ies of scale& especiall% in s#all sectors 2. Low e'ports le$els 3. Counterfeit Products. (hese products narrow the scope of FMCG products in rural and se#i-urban #arket. Opportunities:

1. )ntapped rural #arket 2. *isin" inco#e le$els& i.e. increase in purchasin" power of consu#ers 3. Lar"e do#estic #arket- a population of o$er one billion. 4. +'port potential ,. i"h consu#er "oods spendin" Threats:

1. *e#o$al of i#port restrictions resultin" in replacin" of do#estic brands 2. lowdown in rural de#and 3. (a' (a' and re"ulator% structure.

SWOT analysis of ITC

Strengths:

1. /(C has a stron" and e'perienced #ana"e#ent 2. tron" brand presence& e'cellent products ad$ertisin" 3. i$ersified product and ser$ices portfolio which includes FMCG& otel chains& paper ! packa"in" and a"ri-business 4. 0$er , +-Choupal C* acti$ities and sustainabilit% initiati$es enhance /(Cs brand i#a"e reachin" o$er 4 #illion far#ers ,. /(C li#ited e#plo%ees o$er 2,& people . +'cellent research and de$elop#ent facilities

Weaknesses:

1./(C is still dependant on its tobacco re$enues and people ha$e cheaper substitutes and other brands 2.otel industr% has not been able to create a hu"e #arket share

Opportunities:

1. (ap rural #arkets and increase penetration in urban areas 2.Mer"ers and acuisitions to stren"then the brand 3./ncreasin" purchasin" power of people thereb% increasin" de#and 4. More publicit% of hotel chains to increase #arket share Threats:

1. trict "o$t. re"ulations and policies re"ardin" ci"arettes 2./ntense and increasin" co#petition a#on"st other FMCG co#panies and hotel chains 3.F/ in retail thereb% allowin" international brands