Marketing

MARKETING AT BEST Beat the Street Prerana 2010 Introduction FMCG landscape in India is set for a major revamp. While the major conglomerates be expected to post a healthy growth of all over 15%, the bigger giants like HUL and Marico are set to start as key laggards in terms of revenue growth, ascribable to price cuts affected in their core categories. After the marriage ceremony Budget, some companies have been forced to pass on the itch duty hikes to the end customers; however, for most companies the focus continues to be on mint growth. Better reach, rugged support from higher Ad spends and support from cracker-barrel markets (higher MSPs, NREGS and rising food prices to drive rural incomes) will be the key drivers aiding a modest volume growth for our FMCG universe.

Revenue growth in % YOY for Q42010E 60 50 40 30 20 10 0 CGPL Dabur ITC near GSKCHL Asian Paints Colgate Marico HUL % Change © Team $treet and Prerana 2010 Page 1 Beat the Street Prerana 2010 Budget Blues The marriage Budget 2010-11 continued its focus on Rural developing withthe Government pressing in the lead its efforts to amplification the disposable income in the hands of the people, by effecting a reduction in substantiative taxes and by expanding public expenditure on programs like the NREGS and Bharat Nirman, and on Rural Infrastructure. FMCG companies in India are posting a perk up revenue growth, largely led by consolidation or new product launches or gains from stocking up of inventory ahead of price hikes. Better reach (investments in distribution infrastructure), strong support from higher Ad spends are the key drivers. but there have been some major laggards. Postponement of the GST to 2011-12 and increase in the MAT rate to 18% (15%), along with a roll-back in excise duty cut (hiked 2%) change magnitude the trouble of the industry. Moreover, the hike in customs duty on diesel and petrol, coupled with a 5% increase in the import duty on crude, had a negative advert the transportation and packaging... If you want to get a full essay, entrap it on our website: Orderessay

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