business plan for an fmcg

Everything About FMCG Business Plan

The fast-moving consumer goods, or FMCG, are everyday items that the average consumer uses regularly. Most of these products are very cheap to buy and include products like shampoo, soap, and coffee. FMCG products are much in demand, and the industry is estimated to be worth almost $5 trillion.

As the industry grows at a steady pace, it is predicted to reach $7 trillion in 2025. FMCG segments are believed to be among the most competitive segments in this market. In the FMCG sector, multiple big companies, such as PepsiCo, Hindustan Uniliver, and P&G, have been dominating for decades.

Products like these are fast-moving because they are a necessity in everyday life for most people and are typically consumed quickly. As a rule, FMCG products have very thin profit margins, but their sales volume is very high. Various business models are used to distribute FMCG products, including wholesalers, retailers, and distributors. We will provide you with a brief explanation of the FMCG business plan in this article and also discuss how it works.

Also Read: Implementing A Drug Store Business Plan In 2021

What Are Fast-Moving Consumer Goods or FMGC?

FMCG stands for “fast-moving consumer goods”; these are consumer goods with a high turnover and are shipped quickly. FMCG products include cooking oils, toothbrushes, beverages, milk, and almost any other product you can find in a typical Kirana Store or other dedicated stores.

FMCG products are categorized into three general categories. These categories are durables, non-durables, and services. Durable products can last for more than three years from the date of manufacture, meaning they can still be consumed afterward.

Non-durable products have a shelf life of a maximum of three years, and they generally expire after that. In addition, services such as repair work also fall under the consumer goods section which is the third category of FMCG.

Also Read: Business Plan For Mobile Store

Here are Few FMCG Business Ideas

The market offers a wide range of fast-moving consumer goods. FMCG is a huge market that consists of different types of goods. FMCG products can be categorized into 9 different types, and we will describe each one in detail below.

Processed Foods – These are foods that are cooked or canned for sale in markets. These foods include pasta, cheese, ready-made sandwiches, etc.
Office Supplies – These items also fall under the FMCG category. This category of FMCG includes items like pens, pencils, and staplers.
Beverages – FMCG products of this type include regular drinks, juices, and energy drinks that are mainly consumed during the summer months.
Medicines – The pharma products fall into the category of FMCG products. Some examples of such are paracetamol, saridon, Aspirin, etc.
Cleaning Products – These products include all the regular items used for cleaning, such as floor cleaners, window cleaners, glass cleaners, etc.
Cosmetics & Toiletries – All cosmetic products are included in this section, including make-up kits, concealer, and foundation. Other products included in the toiletries section are soaps, shampoo, and shower gel.
Baked Goods – This category of FMCG includes all products baked by local businesses or manufactured by large corporations. Breads, cakes, croissants, cookies, etc. are among these products. Unlike most other FMCG products, these products have a shorter shelf life.
Fresh, Frozen, and Dry Foods- These types of products include frozen corn and peas, frozen fruits, frozen vegetables, and frozen meats.
Baby Care Products – The baby care industry is on the rise, and there’s a strong need for essentials like diapers, wipes, and baby lotions. You can jump into this market by either making these items yourself or launching your own line of baby care products.
Pet Care products – The pet care industry is booming, and pet owners are ready to invest in top-notch products for their furry friends. If you’re thinking of joining in, consider making pet food, grooming items, and other things for pets. A smart move is to create natural and organic pet care products since many people want healthier options for their pets. You could also look into making products using local ingredients, as these are gaining popularity among pet owners. There’s a great opportunity for entrepreneurs in the growing world of pet care.

What are the different types of FMCG business plans ?

A large supply chain is involved in the FMCG business model before the goods reach the consumer. FMCG business opportunities exist in every part of the supply chain. However, there are primarily 4 types of FMCG business plans , which we will discuss in detail below:

1- Manufacturers: This is the first part of the FMCG wholesale business model. Manufacturers are the ones who produce the products in bulk from raw materials, then send them from their side for consumption.

2- Distributors : A distributor is one who is partnered with a specific manufacturer such as Nestle, P&G, or ITC. Distributors buy huge quantities of products directly from manufacturers and then distribute them further to wholesalers.

3- Wholesalers: Wholesalers purchase various products from distributors and then sell them in small quantities to retailers. The profit margin between distributors and wholesalers is typically between pennies, but this part of the supply chain has the highest volume of sales.

4-Retailers: The retailers buy products directly from wholesalers according to demand and sell the products directly to the consumers. The retailers are part of this supply chain following a B2C (business to consumer) model. All the other parties involved in the supply chain follow the B2B model (business to business).

Latest Trends in FMCG Industry:-

Healthy Choices: People want FMCG products that are good for their health, made with natural stuff, and don’t have harmful chemicals.
Online Shopping Boom: Since many people now buy things online, FMCG products that can be sold on the internet are really popular. Starting an FMCG business online can be a smart move for growth.
Store Brand Products: Products with the store’s own brand name, not big established brands, are getting popular. It’s a chance for new businesses to do well in the FMCG market.
Personalized Products: FMCG items that can be personalized, like custom scents or personalized nutrition plans, are getting more attention.
Eco-Friendly Packaging: Customers are asking for FMCG products that use packaging that’s good for the environment and creates less waste.

We conclude this article with the observation that the FMCG business, along with urbanization and transportation development in India, is growing. Every part of India is covered by the FMCG network, even the remotest areas.

In addition, the FMCG business sector is anticipated to reach a 7 trillion dollar market size by 2025, which is tremendous. The FMCG industry is relatively easy to break into and succeed in, as long as one prepares a good FMCG business plan .

The FMCG business sector, where margins range from 4% to 25%, is cited as having low margins by many. Nevertheless, we must acknowledge that this segment has the highest volume of sales which creates a great opportunity for doing business in this sector.

FAQs Related To FMCG Business Plan

Is the fmcg business profitable.

In terms of profit margins, the FMCG business has a very thin margin overall. Profit margins can range from 2% to 25%. Due to the numerous steps the products go through before reaching the store and the customer, the profit margin in this industry is very low.

Despite this, the volume of sales in the FMCG sector is large, which indirectly covers part of the less profit margin given. Additionally, we would like to point out that the competition for FMCG products is very high.

Which type of FMCG product has the highest profit margin?

In the FMCG industry, all products have very slim profit margins. Nevertheless, baby care products, cosmetics, bakery, and frozen foods have the highest profit margins, ranging from 10% to 25% at most.

Which FMCG business plan would be easier to adopt?

It completely depends on your capital. You can opt for distributorship of any FMCG company if you have huge investment plans. As an alternative, you can go into wholesaling with mediocre investment, or you can become a retailer if you do not wish to invest much and prefer to sell directly to consumers.

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The new model for consumer goods

The fast-moving-consumer-goods industry has a long history of generating reliable growth through mass brands. But the model that fueled industry success now faces great pressure as consumer behaviors shift and the channel landscape changes. To win in the coming decades, FMCGs need to reduce their reliance on mass brands and offline mass channels and embrace an agile operating model focused on brand relevance rather than synergies.

A winning model for creating value

For many decades, the FMCG industry has enjoyed undeniable success. By 2010, the industry had created 23 of the world’s top 100 brands and had grown total return to shareholders (TRS) almost 15 percent a year for 45 years—performance second only to the materials industry.

The FMCG value-creation model

This success owed much to a widely used five-part model for creating value. Pioneered just after World War II, the model has seen little change since then. FMCG companies did the following:

Perfected mass-market brand building and product innovation. This capability achieved reliable growth and gross margins that are typically 25 percent above nonbranded players.
Built relationships with grocers and other mass retailers that provide advantaged access to consumers. By partnering on innovation and in-store execution and tightly aligning their supply chains, FMCG companies secured broad distribution as their partners grew. Small competitors lacked such access.
Entered developing markets early and actively cultivated their categories as consumers became wealthier. This proved a tremendous source of growth—generating 75 percent of revenue growth in the sector over the past decade.
Designed their operating models for consistent execution and cost reduction. Most have increased centralization in order to continue pushing costs down. This synergy-based model has kept general and administrative expenses at 4 to 6 percent of revenue.
Used M&A to consolidate markets and create a basis for organic growth post acquisition. After updating their portfolios with new brands and categories, these companies applied their superior distribution and business practices to grow those brands and categories.

Signs of stagnating success

But this long-successful model of value creation has lost considerable steam. Performance, especially top-line growth, is slipping in most subsegments. The household-products area, for example, has dropped from the sixth most profit-generating industry at the start of the century to the tenth, measured by economic profit. Food products, long the most challenging FMCG subsegment, fell from 21st place to 32nd. As a consequence, FMCG companies’ growth in TRS lagged the S&P 500 by three percentage points from 2012 to 2017. As recently as 2001–08, their TRS growth beat the S&P by 6 percent a year.

The issue is organic growth. From 2012 to 2015, the FMCG industry grew organic revenue at 2.5 percent net of M&A, foreign-exchange effects, and inflation, a figure that is a bit lower than global GDP over the period. But companies with net revenue of more than $8 billion grew at only 1.5 percent (55 percent of GDP), while companies under $2 billion grew at twice the large company rate.

This difference suggests that large companies face a serious growth penalty, which they are not making up for through their minor expansion in earnings before interest and taxes (Exhibit 1).

This growth challenge really matters because of the particular importance of organic growth in the consumer-goods industry. FMCG companies that achieve above-market revenue growth and margin expansion generate 1.6 times as much TRS growth as players who only outperform on margin.

Ten disruptive trends that the industry cannot ignore

Why has this FMCG model of value creation stopped generating growth? Because ten technology-driven trends have disrupted the marketplace so much that the model is out of touch. Most of these trends are in their infancy but will have significant impact on the model within the next five years (Exhibit 2).

Disruption of mass-market product innovation and brand building

Four of the ten trends threaten the most important element of the current model—mass-market product innovation and brand building.

The millennial effect

Consumers under 35 differ fundamentally from older generations in ways that make mass brands and channels ill suited to them. They tend to prefer new brands, especially in food products. According to recent McKinsey research, millennials are almost four times more likely than baby boomers to avoid buying products from “the big food companies.”

And while millennials are obsessed with research, they resist brand-owned marketing and look instead to learn about brands from each other. They also tend to believe that newer brands are better or more innovative, and they prefer not to shop in mass channels. Further, they are much more open to sharing personal information, allowing born-digital challenger brands to target them with more tailored propositions and with greater marketing-spend efficiency.

Millennials are generally willing to pay for special things, including daily food. For everything else, they seek value. Millennials in the United States are 9 percent poorer than Gen Xers were at the same age, so they have much less to spend and choose carefully what to buy and where to buy it.

Digital intimacy (data, mobile, and the Internet of Things [IoT])

Digital is revolutionizing how consumers learn about and engage with brands and how companies learn about and engage with consumers. Yesterday’s marketing standards and mass channels are firmly on the path to obsolescence. Digital-device penetration, the IoT, and digital profiles are increasing the volume of data collected year after year, boosting companies’ capabilities but also consumer expectations. Most FMCGs have started to embrace digital but have far to go, especially in adopting truly data-driven marketing and sales practices.

Some FMCG categories, particularly homecare, will be revolutionized by the IoT . We will see the IoT convert some product needs, like laundry, into service needs. And in many categories, the IoT will reshape the consumer decision journey , especially by facilitating more automatic replenishment.

Explosion of small brands

Many small consumer-goods companies are capitalizing on millennial preferences and digital marketing to grow very fast. These brands can be hard to spot because they are often sold online or in channels not covered by the syndicated data that the industry has historically relied on heavily.

But venture capitalists have spotted these small companies. More than 4,000 of them have received $9.8 billion of venture funding over the past ten years—$7.2 billion of it in the past four years alone, a major uptick from previous years (Exhibit 3). This funding is fueling the growth of challenger brands in niches across categories.

Retailers have also taken notice of these small brands. According to The Nielsen Company, US retailers are giving small brands double their fair share of new listings. The reason is twofold: retailers want small brands to differentiate their proposition and to drive their margins, as these small brands tend to be premium and rarely promote. As a consequence, small brands are capturing two to three times their fair share of growth while the largest brands remain flat or in slight decline (Exhibit 4).

Five factors make a category ripe for disruption by small brands. High margins make the category worth pursuing. Strong emotional engagement means consumers notice and appreciate new brands and products. A value chain that is easy to outsource makes it much easier for born-digital players to get started and to scale. Low shipment costs as a percent of product value make the economics work. And low regulatory barriers mean that anyone can get involved. Most consumer-goods categories fit this profile.

The beauty category in particular is an especially good fit, so the advanced explosion of small brands in this category is no surprise . In color cosmetics, born-digital challenger brands already represent 10 percent of the market and are growing four times faster than the rest of the segment. The explosion of small brands in beauty enjoys the support of significant venture-capital investment—$1.6 billion from 2008 to 2017, with 80 percent of this investment since 2014.

At the same time, digital marketing is fueling this challenger-brand growth while lifting the rest of the category, as beauty lovers find new ways to indulge in their passion. An astounding 1.5 million beauty-related videos are posted on YouTube every month, almost all of them user generated.

Would you like to learn more about our Consumer Packaged Goods Practice ?

We believe that this bellwether category portends well for FMCG incumbents. After a few challenging years, the incumbent beauty players are responding effectively and are mobilizing to capitalize on the dynamism in their industry, particularly through greater digital engagement. They are innovating in digital marketing and running successful incubators. The year 2016 alone saw 52 acquisitions of beauty-related companies.

Better for you

For years, consumers said that they wanted to eat healthier foods and live healthier lifestyles, but their behavior did not change—until now. Consumers are eating differently, redefining what healthy means, and demanding more products that are natural, green, organic and/or free from sugar, gluten, pesticides, and other additives. Packaged-food players are racing to keep up, even as consumers are increasing pressure on the packaged-goods subsector by eating more fresh food.

Disruption of mass-retailer relationships

Three trends are fueling a fierce business-model battle in retail. The e-commerce giants are already the clear winners, while the discounter business model is also flourishing. Mass merchants are feeling the squeeze.

E-commerce giants

E-commerce giants Amazon, Alibaba Group, and JD.com grew gross merchandise value at an amazing rate of 34 percent a year from 2012 to 2017. As their offer attracts consumers across categories, they are having a profound impact on consumer decision journeys. This change requires FMCGs to rewrite their channel strategies and their channel-management approaches, including how they assort, price, promote, and merchandise their products, not just in these marketplaces but elsewhere. This disruption is in early days in markets other than China and will accelerate as the e-commerce giants increase their geographic reach and move in to brick-and-mortar locations. Amazon’s push on private labels is a further game changer. To see the future, we can look to how China FMCG retailing has been revolutionized by Alibaba Group and JD.com and the profound impact Amazon has had on its early categories like electronics, books, and toys.

Discounters

ALDI and LIDL have grown at 5.5 percent from 2012 to 2017, and they are looking to the US market for growth. Discounters typically grow to secure market share of 20 percent or more in each grocery market they enter. This presence proves the consumer appeal of the format, which enables discounters to price an offering of about 1,000 fast-moving SKUs 20 percent below mass grocers while still generating healthy returns.

Mass-merchant squeeze

The rise of the e-commerce giants and the discounters is squeezing grocers and other omnichannel mass merchants. Together, the seven largest mass players saw flat revenue from 2012 to 2017. This pressure is forcing mass merchants to become tougher trading partners. They are pursuing more aggressive procurement strategies, including participating in buying alliances, getting tighter on SKU proliferation, and decreasing inventory levels. They are also seeking out small brands and strengthening their private labels in their quest for differentiation and traffic.

Disruption of developing-market category creation: The rise of local competitors

Developing markets still have tremendous growth potential. They are likely to generate new consumer sales of $11 trillion by 2025, which is the equivalent of 170 Procter & Gambles.

But local competitors will fight for that business in ways the multinational FMCGs have not seen in the past. As new competitors offer locally relevant products and win local talent, FMCG companies will need to respond—which will challenge the fairly centralized decision-making models that most of them use.

Further, channels in developing markets are evolving differently than they did in the West, which will require FMCGs to update their go-to-market approaches. Discounter-like formats are doing well in many markets, and mobile will obviously continue to play a critical, leapfrogging role.

Disruption of the synergy-focused operating model: Pressure for profit

Driven by activist investors, the market has set higher expectations for spend transparency and redeployment of resources for growth . Large FMCGs are being compelled to implement models such as zero-based budgeting that focus relentlessly on cost reduction. These approaches, in turn, typically reduce spend on activities such as marketing that investors argue do not generate enough value to justify their expense. While this approach is effective at increasing short-term profit, its ability to generate longer-term winning TRS, which requires growth, is unproven.

Disruption of M&A: Increasing competition for deals

M&A will remain an important market-consolidation tool and an important foundation for organic revenue growth in the years following an acquisition. But some sectors like over-the-counter drugs will see greater competition for deals, especially as large assets grow scarce and private-equity firms provide more and more funding.

Of course, the importance of these ten disruptive trends will vary by category. But five of the trends—the millennial effect, digital intimacy, the explosion of small brands, the e-commerce giants, and the mass-merchant squeeze—will deliver strong shocks to all categories (Exhibit 5).

A new model for creating value in a reshaped marketplace

To survive and thrive in the coming decades, FMCG companies will need a new model for value creation, which will start with a new, three-part portfolio strategy. Today, FMCGs focus most of their energy on large, mass brands. Tomorrow, they will also need to leapfrog in developing markets and hothouse premium niches.

This three-part portfolio strategy will require a new operating model that abandons the historic synergy focus for a truly agile approach that focuses relentlessly on consumer relevance, helps companies build new commercial capabilities, and unlocks the true potential of employee talent . M&A will remain a critical accelerator of growth, not only for access to new growth and scale, but also new skills (Exhibit 6).

Broader, three-part portfolio strategy

Today, most FMCGs devote most of their energy to mass brands. Going forward, they will need excellence in mass-brand execution as well as the consumer insights, flexibility, and execution capabilities to leapfrog in developing markets and to hothouse premium niches.

Sustaining excellence in the developed-market base

Mass brands in developed markets represent the majority of sales for most FMCGs; as such, they are “too big to fail.” FMCGs must keep the base healthy. The good news is that the industry keeps advancing functional excellence, through better technology and, increasingly, use of advanced analytics. The highest-impact advances we see are revamping media spend, particularly through programmatic M&A and understanding of return on investment, fine-tuning revenue growth management with big data and tools like choice models, strengthening demand forecasting, and using robotics to improve shared services.

In addition to taking functional excellence to the next level, FMCGs will need to focus relentlessly on innovation to meet the demands of their core mass and upper-mass markets.

FMCGs will need to increase their pace of testing and innovating and adopt a “now, new, next” approach to ensure that they have a pipeline of sales-stimulating incremental innovation (now), efforts trained on breakthrough innovation (new), and true game changers (next).

Perspectives on retail and consumer goods, Number 6

Further, FMCGs will need to gather their historically decentralized sales function, adopting a channel-conflict-resistant approach to sales. They will need to treat e-commerce as part of their core business, overcome channel conflict, and maximize their success in omni and e-marketplaces. Players like Koninklijke Philips that have weathered the laborious process of harmonizing trade terms across markets are finding that they can grow profitably on e-marketplaces.

Finally, FMCGs will need to keep driving costs down. We are following three big ideas on cost.

First, zero-based budgeting achieves sustained cost reduction by establishing deep transparency on every cost driver, enabling comparability and fair benchmarking by separating price from quality, and establishing strict cost governance through cost-category owners who are responsible for managing cost categories across business-unit profits and losses.

Second, touchless supply-chain and sales-and-operations planning replace frequent sales-and-operations meetings with a technology-enabled planning process that operates with a high degree of automation and at greater speed than manual processes.

Third, advanced analytics and digital technologies improve manufacturing performance by pulling levers like better predictive maintenance, use of augmented reality to enable remote troubleshooting by experts, and use of advance analytics for real-time optimization of process parameters to increase throughput yield of good-quality product.

Many of these changes will require strengthening technology—making it a core competency, not a cost center.

Leapfrogging new category creation in developing markets

FMCG companies must bring their newest and best innovation, not lower-quality products, into developing markets early to capture a share of the $11 trillion potential growth. Success will require excellent digital execution, as many of these markets will grow up to be digital. Success will also require empowering local leadership to compete with the local players looking to seize the market’s growth potential. Local leaders will need decision rights on marketing as well as a route to market that is joined up across traditional, omni, and e-marketplace channels.

Hothousing premium niches

FMCG companies must identify and cultivate premium niches that have attractive economics and high growth potential to capitalize on the explosion of small brands. Success will require acquiring or building small businesses and helping them reach their full potential through a fit-for-purpose commercialization and distribution model. This means, for example, building a supply chain that produces small batches and can adapt as companies learn from consumers. The beauty industry’s incubators are a good model here.

The demands of this three-part portfolio strategy call for a new, agile operating model that allows a company to adapt and drive relevance rather than prioritizing synergy and consistent execution above other objectives.

Agile operating model

Originating in software engineering, the concept of an agile operating model has extended successfully into many other industries, most significantly banking. Agile promises to address many of the challenges facing the traditional FMCG synergy-focused model.

Building an agile operating model requires abandoning the traditional command-and-control structure, where direction cascades from leadership to middle management to the front line, in favor of viewing the organization as an organism. This organism consists of a network of teams, all advancing in a single direction, but each given the autonomy to meet their particular goals in the ways that they consider best. In this model, the role of leadership changes from order-giver to enabler (“servant leader”), helping the teams achieve their goals.

An agile operating model has two essential components—the dynamic front end and the stable backbone. Together, they bring the company closer to customers, increase productivity, and improve employee engagement.

The dynamic front end, the defining element of an agile organization, consists of small, cross-functional teams (“squads”) that work to meet specific business objectives. The teams manage their own efforts by meeting daily to prioritize work, allocate tasks, and review progress; using regular customer-feedback loops; and coordinating with other teams to accomplish their shared goals.

The stable backbone provides the capabilities that agile teams need to achieve their objectives. The backbone includes clear rights and accountabilities, expertise, efficient core processes, shared values and purpose, and the data and technology needed for a simple, efficient back office.

The agile organization moves fast. Decision and learning cycles are rapid. Work proceeds in short iterations rather than in the traditional, long stage-gate process. Teams use testing and learning to minimize risk and generate constant product enhancements. The agile organization employs next-generation technology to enable collaboration and rapid iteration while reducing cost.

We also expect the FMCG operating model of the future to be more unbundled, relying on external providers to handle various activities, while FMCGs perhaps provide their own services to others.

M&A as an accelerator

M&A will remain critical to FMCG companies as a way to pivot the portfolio toward growth and improve market structure. The strongest FMCGs will develop the skills of serial acquirers adept at acquiring both small and large assets and at using M&A to achieve visionary and strategic goals—redefining categories, building platforms and ecosystems, getting to scale quickly, and accessing technology and data through partnership. These FMCGs will complement their M&A capability with absorbing and scaling capabilities, such as incubators or accelerators for small players, and initiatives to help their teams and functions support and capitalize on the changing business.

Moving forward

To determine how best to respond to the changing marketplace, FMCG companies should take the following three steps:

Take stock of your health by category in light of current and future disruption, and decide how fast to act. This means asking questions about the external market: how significantly are our consumers changing? How well positioned are we to respond to these changes? What are the scale and trajectory of competitors that syndicated data do not track? Is our growth and rate of innovation higher than these competitors, particularly niche competitors? How advanced are competitors on making model changes that might represent competitive disadvantages for us? How healthy are our channel partners’ business models, and to what degree are we at risk? Do our future plans take advantage of growth tailwinds and attractive niches? Answering these questions creates the basis for developing scenarios on how rapidly change will happen and how the current business model might fare in each scenario.
Draft the old-model-to-new-model changes that will position the company for success over the next decade. This is the time to develop a three-part portfolio strategy and begin the multiyear transformation needed to become an agile organization, perhaps by launching and then scaling agile pilots. This is also the time to determine which capabilities to prioritize and build and the time to redesign the operating model, applying agile concepts and incorporating the IT capabilities that offer competitive advantage. Change management and talent assessment to determine where hiring or reskilling are needed will be critical.
Develop an action plan. The plan should include an ambitious timeline for making the needed changes and recruiting the talent required to execute the plan.

These efforts should proceed with controlled urgency . Over time, they will wean FMCG companies from reliance on the strategies and capabilities of the traditional model. Of course, as companies proceed down this path, they will need to make ever-greater use of the consumer insights, innovation expertise and speed, and activation capabilities that have led the industry to success and will do so again.

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Gregory Kelly is a senior partner in McKinsey’s Atlanta office , Udo Kopka is a senior partner in the Hamburg office , Jörn Küpper is a senior partner in the Cologne office , and Jessica Moulton is a partner in the London office .

The authors wish to thank Fabian Chessell, Jasmine Genge, Gizem Günday, Sara Hudson, Anastasia Lazarenko, Ed Little, Susan Noleen Foushee, Kandarp Shah, Sven Smit, Anna Tarasova, and Daniel Zipser for their contributions to this article.

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Guide To Start FMCG industry: Business Ideas and Roadmap

2023-02-21T10:42:27

By SolutionBuggy

FMCG products play a crucial role in our daily lives, making the FMCG industry a lucrative market for entrepreneurs. From personal care items to food and beverage products, FMCG products are designed to cater to the needs and wants of a wide consumer base.

In today’s fast-paced world, consumers are always on the lookout for products that can simplify their lives and make their day-to-day tasks easier. By starting the FMCG industry , entrepreneurs and MSME’s have the opportunity to cater to this growing demand and provide products that are of high quality, yet affordable.

With a large customer base and the constant need for these products, the FMCG business is a great option for entrepreneurs looking to make a mark in the business world. Read the complete blog to get guidance to start the FMCG industry including the business ideas and roadmap

Overview of FMCG Industry In India:

The FMCG industry in India is currently thriving and is considered one of the fastest-growing industries in the country. The increasing purchasing power of consumers, changing lifestyles, and a growing middle-class population have driven the demand for FMCG products. This has led to an increase in the number of players in the market, and many multinational corporations have entered the Indian market, driving competition and innovation.

In recent years, the Indian FMCG sector has seen significant growth, with the sector expected to reach USD 104 billion by 2025 . With a wide range of products and a huge market, the FMCG business is an ideal platform to showcase your entrepreneurial skills and achieve significant growth and success.

Current Market Trends in FMCG industry:

❖ Increasing consumer demand for healthy and natural products: With consumers becoming more health-conscious, there is a growing demand for FMCG products that are free from harmful chemicals and made with natural ingredients.

❖ Sustainability and environmentally -friendly packaging: Consumers are demanding that FMCG products are packaged in a way that reduces waste and is environmentally-friendly.

❖ Online sales and e-commerce : With the rise of online shopping, FMCG products that can be sold online are in high demand. Starting an FMCG manufacturing business can be a profitable venture, offering immense opportunities for growth and expansion in a constantly evolving market with the help of e-commerce

❖ Personalization and customization: FMCG products that can be tailored to individual consumer preferences, such as custom fragrances or personalised nutrition plans, are becoming increasingly popular.

❖ Private label products : Private label FMCG products which are sold under the store’s own brand name are becoming increasingly popular as consumers seek more affordable alternatives to established brands. So, the FMCG business presents a lucrative opportunity for entrepreneurs to enter and succeed in the market

Roadmap To Start FMCG industry:

❖ market research:.

Before starting any business, it is crucial to conduct thorough market research to understand the demand for FMCG products in your target market. This will help you to identify the products that are in high demand, the target audience, and the competition

❖ Choose a Product Niche:

Once you have an understanding of the market, choose a product niche that you want to focus on. You can either manufacture a single product or a range of products. Consider the competition and choose a product that has a gap in the market.

❖ Business Plan:

A well-structured business plan is the foundation of any successful business. This plan should outline your business goals, strategies, and financial projections. It should also include a detailed marketing plan and a SWOT analysis to help you identify the strengths, weaknesses, opportunities, and threats of your business

❖ Set up Manufacturing Facility:

Once you have secured funding and chosen a location, set up your manufacturing facility. This includes purchasing equipment, installing utilities, and setting up a production line. Make sure you comply with all relevant regulations and standards, such as food safety regulations for FMCG food products.

❖ Supply Chain:

A strong supply chain is critical to the success of your FMCG manufacturing business. Establish relationships with suppliers and distributors to ensure a constant supply of raw materials and to ensure that your products reach your target market

❖ Launch Your Products:

Once your manufacturing facility is up and running, launch your products. Create a strong brand image, develop a marketing strategy, and use social media and other marketing channels to reach your target audience.

Best Business Ideas in FMCG Industry:

1. personal care products:.

Personal care products like skincare, hair care, and oral care products are in high demand. These products have a low cost of production and a high margin of profit. You can start by creating your own brand or by manufacturing personal care products for other established brands. The raw materials required to produce these products are readily available. Entrepreneurs can start small and gradually scale up their operations as their business grows.

2. Food and Beverage Products:

Food and beverage products are always in demand. With the growing trend of health and wellness, there’s a growing market for organic and healthy food and beverage products. You can start a food processing industry by manufacturing snacks, energy bars, juices, and teas. Additionally, entrepreneurs can also explore the production of locally sourced food products, which are becoming increasingly popular.

3. Home Care Products:

Home care products like cleaning supplies, air fresheners, and laundry detergents are essential household items. There’s a high demand for eco-friendly and natural home care products, providing an opportunity for entrepreneurs to establish a business in this segment. The production process for these products is relatively simple, and the raw materials required are easily obtainable

4. Baby Care Products

The baby care industry is a growing market with a high demand for baby products like diapers, wipes, and baby lotions. You can start by manufacturing these products or by creating your own brand of baby care products.

5. Pet Care Products:

The pet care industry is also a growing market. Pet owners are willing to spend money on high-quality products for their pets. You can start by manufacturing pet food, pet grooming products, and other pet-related products. Entrepreneurs can focus on producing natural and organic pet care products, which are in high demand due to the growing concern for pet health and wellness. Additionally, you can also explore the production of locally sourced pet care products, which are becoming increasingly popular

Future of FMCG industry:

The future of the FMCG industry looks bright and full of potential for entrepreneurs. With the increasing demand for everyday household items, the industry is expected to grow significantly in the coming years. The trend of e-commerce and online shopping has made it easier for consumers to purchase FMCG products, providing ample opportunities for new manufacturers to enter the market. Additionally, the rise of health consciousness and environmentally friendly products is leading to a growing demand for organic and sustainable FMCG products.

Are You Interested To Start The FMCG Industry?

SolutionBuggy being recognised as India’s best consulting platform in the manufacturing industry, our primary goal is to help entrepreneurs navigate the complex landscape of starting and running a successful FMCG business. We understand that starting a FMCG industry can be a daunting task, hence we offer a comprehensive range of services to help entrepreneurs every step of the way.

Our team of experienced FMCG consultants can assist with a range of key areas, such as market research, product development, branding, distribution, and supply chain management. We can help entrepreneurs to identify gaps in the market and develop innovative products that meet the needs of their target audience

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Sample FMCG Distributor Business Plan

Do you need help starting a FMCG products distributor company? If YES, here is a sample FMCG Business Plan.

As the name suggests, fast moving consumer goods are those goods which are non-durable and will quickly sell. This is a great distributorship business opportunity to be considered .

By reading this article, you may be interested in becoming an FMCG distributor.

If yes, this FMCG distributor business plan sample will help you achieve your desire. Lots of entrepreneurs have been faced with the problem of writing their plans.

FMCG BUSINESS IDEAS AND OPPORTUNITIES

There are so many FMCG businesses one can go into that is very certain to make one a future millionaire. On the other side, these lucrative FMCG business opportunities can take up to five years before it produces such result.

There are some people who just go into a certain FMCG business ideas because they want to and love to trade but after some few months, they are looking for other FMCG distribution business and dealerships to venture into because it seems their business is slow and the income too.

It is very important to take a feasibility study of those FMCG business opportunities before one should go into them.

This is because, some FMCG wholesale trading business may seems profitable from the outside but after you have venture into it, you will see that those people selling those goods are actually either selling on credit or at a low profit margin so they can get rid of the stock or force a sale.

FMCG DISTRIBUTION BUSINESS PLAN SAMPLE

Starting a fmcg business is not just about buying goods at low price and selling at a higher price. All FMCG wholesale business does that to make profit. But if you really want to start a FMCG company business that is fast in terms of selling the goods at of your store and make a profit quickly, then you need to start thinking of starting a fast moving consumer goods business.

Fast moving consumer goods are daily consumable products. This goods are always ask of. If you really want to start a business that should keep you busy and selling, then you need to think of FMCG products that human can’t stay away for a week.

Opening a boutique is a good FMCG business model please don’t get me wrong. Read to the end before you conclude.

The reason I said a bad side is this. A boutique is a place or store where people go to buy clothes, shoes, belts, caps, perfumes and designer’s accessories. Now, how many people do go for shopping every week? Do you? When last did you go for shopping? Was it the same boutique?

Personally, I go for shopping once in a month. Also, let me ask you, do you buy vegetables, tomatoes, pepper, onions once in a month? Am sure you buy it every week. If not twice in a week because you must eat vegetable soup! But the clothes you bought last year you’re still wearing them till today.

Now, I am not saying you should not go and start a boutique business if you already have the mind to do so. The fact is, there is profit in the business but it’s slow and not predictable. Here is how; Some day you may just open your store, you won’t sell anything. The next day, you might sell a few items. The next day again, your FMCG business model will excel as if you use magic on it. The next day again, only one face cap will be bought and so on like that.

But for fast moving consumable goods, you’re guaranteed of sale on a daily basis. Prayer or no prayer. Someone must eat biscuit, buy mineral, buy oil, Kerosene, Bread, Pepper or even pure water. And that same person can spend up to N5000 in a month on your store. That’s from one person. And you know that in one day, up to 10 different people will come to buy FMCG product from your store.

So, in this post, I want to really discuss on how you can take a proper feasibility study of your environment and start a fast moving consumer goods business in Hyderabad, Bangalore India, Nigeria and other countries of the world.

Here are examples of fast moving consumer goods business ideas;

1. Rice 2. Kitchen Spices 3. Beverages 4. Vegetables 5. Oil 6. Drinks 7. Detergent 8. Beans 9. Stationery 10. Bread etc.

Here is a sample business plan for starting a FMCG retail company.

Take Feasibility Study

Irrespective of where you reside, there is always an array of perfect business opportunities in FMCG sector for every location. In a cool evening, take a walk around your street or better still two streets and look for a good location that will address the issue of selling fast moving goods to the resident in that street and passers by either on foot or car.

This will assist in developing a comprehensive FMCG business plan to use.

Now even if there are stores selling consumable items, I mean a long list of FMCG companies near you, don’t panic or think of competition. Your job now is to brand yourself in terms of attending to customers in a polite and quick manner. Personally, I wait unattended to when I go buy something or when the seller is always finding it difficult to give me my balance (change).

Have a very attractive store with light, maybe TV (if you choose to sell drinks). FMCG product business is not about competition, it’s about domination. Do not think competition, think domination. In your store, you can sell every items I listed above.

You may personally choose to focus on selling only drinks both alcohol and non-alcoholic with pepper soup and bush meat. You might also choose to sell food items only. There are also fast moving consumer goods. This is the best business for individual investors and agencies who don’t have time having long prayer point list.

Choose which fast consumer goods you prefer and go with it. I know of a lady who focus on selling soft drinks in crates. With this, she has bought a personal car and a truck for carrying the crate of drinks to her customers location.

You too can do it, you have just learnt how to start FCMG distribution business!

FMCG DISTRIBUTOR BUSINESS PLAN EXAMPLE

This is written to help out with that. We have stripped this sample plan of all complexities to enable you understand at a glance what each section looks like and to apply same strategy. What you need to put together a great plan is by understanding the business side of things. Your survey or feasibility study will enable you do that.

Executive Summary

Sundry Goods is a fast moving consumer goods distributorship business in Louisville, Kentucky. We are major distributors to a number of major brands producing a variety of fast moving consumer good.

Some of our products include toiletries, candy, dry goods such as coffee, tea and sugar. Others include beverages, water, baked goods, consumer electronics (memory cards and sticks), office supplies, clothing and cleaning products.

These goods are highly patronized and demanded by consumers. We offer a unique service by making these available to consumers, while creating an effective distribution channel for these companies. As major distributors, we have a great incentive in the form of competitive pricing which allows for profitability.

Our Products

We only distribute finished consumer goods and provide these at wholesale prices to retail businesses who mostly sell to end users. Some of our products include razors and blades, dry goods (tea, sugar, coffee, and beans), consumer electronics in the form of memory cards and sticks, beverages, bottled water, and candy.

Others include baked products, office supplies (pens paper, printing ink), clothing, cleaning products and toiletries.

These products are manufactured by top brands and made available to us at discounted rates.

Vision Statement

Our vision is to become a major fast consumer moving goods distributor in Kentucky within 2 years of our operations.

However, this is not our ultimate aim as we are determined to break into the top 20 major distributorships in America within a decade of our operations.

Mission Statement

We will only work with major and reputable brands in distributing quality products to our target market. To achieve this, we have considered quality and affordability as our major target areas. By so doing, we will be building a trusted distributorship brand that will be toast of major retail businesses that depend on our supply chain.

Financing for our FMCG distributorship business will be sourced from bank loans. These would be banks the proprietor Evelyn Hunt does business with. The sum of $700,000.00 is required.

The application for this loan is already in progress. This loan will attract an interest rate of 2% monthly. The loan is repayable in 15 years.

80% of this sum will be spent in renting warehouses within Louisville, payment for our first consignment of products, and purchase of delivery vans. The 20% remaining will be used as running costs for the period of 3 months.

SWOT Analysis

We have done a SWOT analysis of our business operations. This enables us measure our chances as well as health.

The findings have been eye-opening and will help us adapt to realities. These findings are shown below;

Our strength is found in our ability to easily enter into an agreement with some of the best brands. These agreements give us an excellent profit margin that makes our operations increasingly profitable. Having committed a decade of her life managing 2 of the most formidable consumer products manufacturing industries, this network gives us an immense advantage.

Penetrating the market is a herculean task. This is because there are several other FMCG distributorship businesses.

These have a strong hold on the market. However, this weakness will only be short-lived because we intend to leverage on our relationship with product suppliers. While doing that, we will also increase the intensity of our marketing campaigns to penetrate the market.

Opportunities

The opportunities are great for us. We have entered into talks with smaller retail businesses. These businesses sell to end consumers and would form our vast network of clients. We will also provide competitive pricing to enable them do business with us.

Threats abound in the business ecosystem. We have identified our threat and it is in the form an economic meltdown. This adversely affects all manufacturing due to high production costs, which in turn puts us out of business.

Sales Projection

Our profitability depends on attracting high sales. Our FMCG distributorship business has sought to find out the extent of future patronage for our products through a sales projection. This has shown a great potential for us as demand is likely to improve as shown below;

First Financial Year $380,000.00
Second Financial Year $700,000.00
Third Financial Year $1,500,000.00
Competitive Advantage

Our competitive advantage is hinged on the networks we have with some of the reputable FMCG manufacturing companies. We are going to take advantage of this relationship in fostering a meaningful partnership that enhances our business growth.

Sales and Marketing Strategy

Our sales strategy we have come up with is to enter into a productive relationship with smaller retail businesses. The more they are, the better. These are symbiotic relationships where we benefit from each other. Our FMCG will be supplied to these retailers at attractive rates who will then sell to end users.

This FMCG distributor business plan sample has attempted to summarize sections a good plan should have. It uses an imaginary distributorship business for the purpose of guiding the reader on what to he/she is expected to focus on.

This will only be possible when you have some background knowledge of how things work. A survey or feasibility study of the market will supply you with this information.

Brand Design

Brand Competitive Analysis
Brand Benchmarking
Brand Architecture
Brand Conceptualization
Brand Story
Brand Identity
Brand Expression

Packaging Design

Packaging Competitive Analysis
Packaging Benchmarking
Packaging Conceptualization
Packaging Visualization
Packaging Technical Roll-out

Retail Design

Retail Store Mystery Shopping & Audit
Retail Store Competitive Analysis
Retail Store Customer Experience Strategy
Retail Store Vision & Concept Creation
Retail Store Zoning & Layout Design
Retail Store Customer Journey Design
Retail Store Merchandising & Category Management
Retail Store Design Development
Retail Store Technical Design

Experience Design

Experience Competitive Analysis
Experience Vision & Concept Creation
Experience Zoning & Layout Design
Experience Customer Journey Mapping
Experience Design Development
Experience Technical Design

Project Management

Project Management Office (PMO)
Tender Package
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Startup Acceleration

Startup Acceleration Program
Advisory Board

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Strategic pillars for the future of the FMCG industry

January 10, 2022 | Consumer Goods

Consumer Goods

Nowadays, fast moving consumer goods (FMCG) firms are defining their progress via steady expansion and the use of new technology to meet customer needs, with many well-known brands continuously working on expanding their FMCG portfolios and capabilities. Modern technologies combined with creative business strategies are reshaping traditional value chains faster than expected.

Five fundamental pillars will assist with strategic planning in the FMCG sector over the upcoming years:

Digitalization

Personalization, sustainability, deglobalization, new business models.

The fast-moving consumer goods market is changing at a rapid pace. Today, more companies are working around the clock to compete through sustained digitization. Companies must expedite the digitization of their business to fulfill client expectations. They should, however, go beyond just automating a process that already exists. Data models should be adapted to enable better decision-making, performance tracking, and consumer insights. Which will create demand for new positions such as data scientists and user-experience designers.

Advanced analytics will become a core element in the digitization process of the sector as e-commerce becomes a mainstay in the FMCG industry. More businesses will embrace advanced analytics to access, interpret and utilize data.

Other aspects of the FMCG chain, including supply mechanisms, will need to embrace automation as a new normal. The industry will experience a surge in the automation of supply chain tasks. The approach will lead to more significant cost-cutting as more businesses seek efficiency and minimize existing skills gaps. You should anticipate more robotics taking an active role in shaping the industry's future.

Personalization is among the pillars that the FMCG industry must grapple within the next five years. Today, the demand for personalized products forms the pinnacle of change in the sector. Businesses must now utilize data to understand consumer needs and offer customized products that matches these needs. Three things inform these changing trends in personalization: technological changes, evolving strategic business models and changing social trends.

As the FMCG industry evolves, businesses must balance economic, environmental, and social pillars. Competitors in the business landscape have become more aware that they can achieve brand value and competitive advantage by seeking more sustainable business practices.

Businesses that are more concerned about the next generation are keen to reduce water, energy, and fuel consumption through sustainable practices. As corporations move towards a sustainability-oriented corporate strategy, the FMCG industry will likely witness greater efficiency and new ways of handling the production and distribution of goods.

No one anticipated that there would be observable diminishing interdependence between different global economic blocks at one point. But as the impacts of trade wars intensify, deglobalization will likely take root. What remains a wild guess is how the Fast-Moving Consumer Goods industry will align with this shift. Corporates may need to begin embracing the idea of geopolitical divisions and their impact on the flow of fast-moving goods.

In most countries, increased protectionism may further affect how goods and services move from one market to the consumer. Indeed, the fast moving consumer goods industry will need to embrace the reality that more silos will emerge going forward, which will affect the ability to operate as one market.

Here are 4 ways companies can adapt to Deglobalization

Making supply chains more resilient

This may be achievable by adding manufacturing and storage aptness within the FMCG industry. Such a move will increase the supply capacity within specific regions.

Raising capital locally

In a highly deglobalized society, raising capital locally is the solution. This will help ensure that the industry keeps moving even without external funding.

Developing local talent

The effects of deglobalization will be a slower importation of labor from other markets. Building local talent can help bridge the skill gap that will emerge.

Decentralizing decision-making

As the FMCG industry becomes more heterogenous, there will be a need to decentralize decision-making. Setting up multiple decision-making centers can help the industry adapt faster to the changing scope of doing business.

Deglobalization tendencies compelled the sector to rethink traditional mass-market strategies based on volume and cost savings. Critical concerns such as supply chain management, local sourcing techniques, and mitigating risk by applying different methods of integrations, will play a substantial part in defining the growth of FMCG in the next five to ten years.

As the shifts in the global fast-moving consumer goods become evident, businesses may need to develop a different strategy. You need a business model to help your business evolve in line with the changing consumer behaviors, ways of doing business, and global economic trends. There are several models to choose from. Typically, firms will use a broad model and refine it to fit their specific needs. Whatever pathway you select will be determined by the industry you choose, but more significantly, by what the market agree to pay and what resources are available at your disposal.

The industries are exposed to a drastic future with rampant innovations and discoveries. Hence, the five strategic pillars will support the FMCG industry in the next five years: Digitalization, Personalization, Sustainability, Deglobalization, and new business models. While working on your 2025 innovation roadmap, think about these five strategic pillars.

Consumer Goods Consulting

Ollen Group is one of the best retail consulting firms in the Middle East & Africa region (MEA) offering retail consulting services with turnkey solutions from strategy to execution. Our expert consultants will help your through your journey.

Read our latest insights , ideas, and perspectives that explore the trends shaping the future of business and society. Our consultancy services go hand-in-hand with these insights, confirming our position as industry leaders. Get in touch to find out more about our consulting services and industry expertise.

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A Beginner’s Guide To Running An FMCG Distribution Business

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Are you an entrepreneur with a dream of owning your own business? Do you love the idea of creating and selling products? Do you already have ideas which can make it to the market? If so, you may be interested in starting an FMCG products distribution business. But what is an FMCG business exactly?

Well, an FMCG distribution company is a fast-paced venture that provides consumers with everyday necessities. Imagine being at the forefront of supplying homes and businesses with items that make people’s lives more comfortable and convenient. From toothbrushes to snacks, and shampoo to cleaning products, you’ll be the link between manufacturers and customers, maintaining a consistent supply of essentials. It’s a fast-paced industry that needs creativity, strategic thinking, and a deep desire to provide value to all stakeholders. FMCG has wonderful business potential if done effectively. So what are you waiting for? Get ready to join the fast lane of the FMCG distribution industry.

Don’t know how to start? Read on to find out! Get ready to see your products fly off the shelves!

What Is An FMCG Distribution Business And Why Is It A Good Idea?

An FMCG distributor is a person who connects the producer and the retailer. The role of an individual is to promote the products of a specific FMCG company that has decided to sell its products in specified areas.

The business involves purchasing these goods from manufacturers or wholesalers, storing them in a warehouse, and then selling them to retailers, supermarkets, or directly to consumers. The emphasis is on delivering products to market quickly and guaranteeing a continuous supply to match consumer demand. Now you might be wondering why this is a good idea :

High demand: FMCG products are always in high demand because they are necessary commodities that people buy on a regular basis.
Wide product range: They offer a diverse assortment of items, allowing them to reach a bigger customer base.
Margins: FMCG products often have large margins, providing distributors with a favourable return on investment.
Efficient logistics: An efficient distribution system can help to reduce costs while increasing profits.
Continuous sales: The regular buying cycle of FMCG products guarantees the distributor has a consistent revenue stream.

An FMCG distribution business can be a profitable investment for entrepreneurs with a planned approach and an emphasis on efficiency and customer happiness. Now let’s dive right in and see how this can be done. Ready?

Baby Steps For Your Business

Before you become an FMCG distributor in India, here are a few requirements you’ll have to consider:

1. Conducting market research : You can start by determining your target clients’ geographic region, age, income, and lifestyle. Investigate consumer purchasing behaviours, such as the things people buy, where they buy them, and how frequently they buy them. Analyse FMCG sales data to find the most popular products and the market’s potential size. Examine your competitors’ strengths and shortcomings, pricing methods, and distribution networks. Keep up with industry developments, such as new goods, regulatory changes, and technological advancements.

Even though this sounds like a lot, it can be a fun task and you will have a greater grasp of your target market and the industry after completing extensive market research, allowing you to make informed decisions about product selection, pricing, and distribution tactics.

2. Pick product lines : You will have a list based on your study, with an emphasis on FMCG products that are in great demand and have a proven track record of success. Here are some of the top products:

Food and beverages: Snacks, beverages, packaged food, and cooking ingredients
Personal care: Shampoo, soap, toothpaste, razors, and other toiletries
Household goods: Cleaning supplies, paper products, and home appliances
Beauty products: Makeup, skincare, and hair care products
Health and wellness: Vitamins, supplements, and over-the-counter medication
Baby products: Diapers, wipes, and baby food
Pet supplies: Dog food, toys, and grooming products
Tobacco products: Cigarettes and other tobacco products
Confectionery: Candy, gum, and chocolates
Beverage/alcohol: Beer, wine, and spirits.

These products sure have a successful track record and are in high demand among consumers. However, market research is necessary to establish which products are most in need in your specific target market.

3. Develop a business plan : Give a quick explanation of your company’s goals, target market, and financial projections. Describe your sales and marketing strategies, including target demographics, advertising plans, and distribution routes. You may construct a road map for success and receive capital from investors or lenders by creating a comprehensive business plan. Create a business plan that outlines your FMCG distribution company’s entire vision. It allows you to stay on track and manage your business.

You can form your company as a private limited company, partnership, or sole proprietorship. Obtain the licences and permits required to run your business. Rent or purchase a warehouse space to store and manage your products. Arrange for transportation to transport products from suppliers to your warehouse and from your warehouse to customers.

4. Secure funding: Raise capital to purchase inventory and cover operational costs. It’s essential to carefully consider your options and choose the funding source that best fits your needs and goals. Be sure to have a strong business plan and financial projections to present to potential investors or lenders. Here are some options :

Personal savings : By utilising your own funds, you have complete control over the financial decisions of your business and can avoid the potential pitfalls of being in debt or seeking outside investors.
Business loans : Apply for a loan from a bank or alternative lender.
Crowdfunding : A crowdfunding platform is used to raise funds from a big number of people.
Angel investors : Seek financing from high-net-worth individuals interested in investing in start-ups as angel investors.
Venture capital : Seek investment from venture capital firms that specialise in funding high-growth businesses.
Government funding : Look into and apply for government grants for small enterprises.
Partnerships: Consider creating a collaboration with another company or individual who possesses complementary talents and resources.

It’s also crucial to comprehend the terms and conditions of each funding source and be prepared to repay the funds or give up a percentage of your company’s equity. Once the funds are secured, negotiate minimum order quantities, lead times, and payment arrangements with suppliers.

5. Identify sales channels: Launching an FMCG distribution firm is no easy feat, but one critical aspect to consider is identifying your sales channels. This can make or break your business, as the way you sell your products can directly impact your revenue, customer base, and overall success.

When it comes to FMCG products, there are two main sales channels: direct-to-consumer sales and retail partnerships . Direct-to-consumer sales involve reaching out to customers through various channels like online marketplaces, social media, and advertising to promote and sell your items. This method offers you more control over the sales process and allows for direct engagement with customers to get feedback on your products. It’s like having a personal shopper for every customer!

On the other hand, retail partnerships involve collaborating with established retail brands, supermarkets, and other comparable outlets to distribute your products. This option can give you a wider reach to customers, as customers are more likely to trust established retail brands. It’s like having your products showcased in a big fashion event!

When deciding which sales channel to choose, there are many factors to consider, such as your target market, product pricing, distribution expenses, and marketing budget. But what if you combined both sales channels? By using both direct-to-consumer sales and retail partnerships, you can reach a larger audience and enhance revenue possibilities. It’s like having the best of both worlds!

6. Hiring a team and implementing logistics and storage solutions: Recruiting competent sales and marketing employees is critical to the growth of your company. These experts can assist you in reaching and engaging your target market, promoting your products, and driving sales.

Implementing logistics and storage solutions can assist you in ensuring efficient and effective inventory management, minimising waste and losses, and meeting client demand on time. Consider investing in technology solutions, such as i nventory management software , to simplify and optimise your operations.

When it comes to running a successful distribution business, one critical factor to consider is the location. You might think that location doesn’t matter as long as you have a space to store your inventory, but the truth is that the location of your warehouse can have a significant impact on the success of your business. But location isn’t just about finding a space that meets your storage needs. It’s also about finding a location that is easily accessible to your suppliers and customers. If you’re too far away from your suppliers, you might experience delays in getting your inventory, which could lead to lost sales and dissatisfied customers.

7. Launch marketing campaigns and evaluate performance: To reach your target market and establish brand recognition, consider starting marketing campaigns using a number of channels such as advertising, events, social media, and email marketing. To ensure your company’s success, you must constantly evaluate sales, expenses, and customer feedback. This data can assist you in making adjustments and adjusting your plans as needed to meet your objectives.

Time To Let Your Business Shine!

By following the steps outlined in this blog and continuously evaluating your performance, you can position your business for growth and success in the highly competitive FMCG industry. If you need any help with understanding your own strengths and limitations better then Mentoria is here for you!

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A Step-By-Step Guide to Set up a Company in the FMCG Sector

The fast-moving consumer goods (FMCG) sector is the 4th largest sector of the Indian economy. Considering this, the Indian government also approved 100% foreign direct investment (FDI) in the FMCG market, bringing even more opportunities for future entrepreneurs.

Promising Future of the FMCG Market in India

The recent shift in people’s lifestyles is linked directly to the 16% increase in the growth of the FMCG industry. Despite the countrywide lockdowns of 2020 and highly-priced staples, the industry saw consumption-led growth through and through.

Higher incomes lead to better living standards, and the consumption of FMCG goods skyrocketed in rural areas. People have become aware of the multiple brands available in the market and are choosing products more consciously. A report on the FMCG sector states that household and personal care products make up 50% of the FMCG revenue in India, whereas foods and beverages have a 19% share of the market, and healthcare products account for 31% of the industry.

There has not been a better time to set up a company in the FMCG sector in India. The market is growing rapidly, and all other parameters hint at the industry’s bright future.

However, setting up a business in the FMCG sector presents its unique challenges. Let’s look at the things you need to have in place when you want to set up a company in the FMCG sector.

A 6-Step Guide to Set up a Company in the FMCG Sector

You can capitalise on the timely growth of the FMCG sector and set up a company by following a few simple steps.

1. Achieve Product-Market Fit

Thorough market research can help you identify your target customers and achieve product-market fit . Ask yourself who you want to sell to and where the ideal customer might go looking for your product. In the process, you may be able to uncover a neglected customer need.

Market research can help uncover customer pain points and decide your value proposition. The next step would be to create a minimum viable product (MVP) and test the market response by showing the product to a small group of potential customers. Remember to consider both urban and rural markets, unless your product is only for a certain niche / section of the society.

Consider the feedback and suggested changes and incorporate those after considering costs and other factors. Repeat this until you see more positive responses to your product and can take it to market.

2. Make a Viable Business Plan

You need to do proper research along the following aspects to create a solid business plan:

1. Supply against current and future demand

2. Market potential of exporting goods

3. Raw material requirements and availability (imported or home-sourced)

4. Decide the scale of your business–retail store, mini-supermarket, mass brand, or providing logistic support to others

5. Appropriate location for setting up production plants or outlets

6. Manpower requirement and availability

7. Required funding for the project

3. Identify Competitors

You will likely have existing competitors in the same niche. Although your business’s value proposition and unique selling point (USP) can attract customers, it is also crucial to be mindful of the competitors’ USPs. To stay ahead, you can keep a tab on their changing strategies and improvise your own whenever needed.

4. Register Your Business and Acquire Appropriate Licences

Register your business with the Ministry of Corporate Affairs (MCA) for incorporation. Afterward, apply for GST registration, complying with the standard guidelines issued by the MCA.

Now, depending on whether your business deals with a single category of products or multiple products simultaneously, you will need licences to operate legally. Remember, different products will need different licences.

For instance, businesses that deal with food products must apply for a licence issued by the Food Safety and Standards Authority of India (FSSAI).

You must furnish the following information, along with a duly-filled form , for authorities to issue the licence:

1. The location of the company

2. Detailed list of equipment and machinery

3. Company’s statutory documents, like the register of directors

5. Raise Funding

In case you have everything else — great idea, functioning team, effective business plan, and vigour & grit – except for the funds, you should reach out to venture capitalists (VCs) or angel investors from a reliable network . You can conduct several funding rounds if the seed rounds don’t yield the desired outcome.

6. Have a Good Marketing Strategy

A good marketing plan can put your business in front of the right customers and drive sales. For a B2C or retail outlet, consider promoting launch dates, offers, and other business details through local communities, social media, ad campaigns, etc.; if you are in a B2B space, try reaching out to potential clients.

7. Determine the Distribution Process

Even if the product is excellent, it is doomed to perform poorly if there is an issue with product distribution. Consumers prefer readily available brands. You should aim for a pan-India outreach when it comes to the distribution process.

It is important to register on eCommerce platforms to expand your business’s reach since more consumers are leaning towards online purchasing. Total FMCG revenue via e-commerce platforms is expected to increase by 11% by 2030. In addition, it is crucial to find prime spots for physical stores while ensuring they are easily accessible. For example, a grocery store performs well in a local market compared to an isolated corner of an enclosed society.

Anyone who wishes to start a business will need help along the way. A mentorship session with seasoned professionals can do wonders for you and your company. Consider putting yourself out there and networking with the right people. This can help increase your business outreach and help you find potential investors.

Being a part of a growing community of like-minded people has advantages like professional guidance, investment opportunities, and even psychological support that can help you set up a company.

With Scalix you can network with, meet, and learn from founders and experienced individuals who can contribute to your startup's growth. Reach out to us to know more.

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Business Model of FMCG Companies

Pratyusha Srivastava

The Fast-moving-consumer-goods (FMCG) is quite an established market. These industries have always proven themselves worthy of the consumers' purchasing and reliable choice. When looking a little back in time, FMCG was considered wrong for entering the business industries. However, with time, many young businessmen or entrepreneurs put their foot in the direct interaction with consumers regarding the product, and shockingly, it received great acknowledgments and achievements. This came out to be the FMCG business model.

This kind of business model interacts directly with the consumers by cutting out the retail and charging at wholesale rates. This also supports and helps the FMCG players with the opportunity to establish their position in the market. With the FMCG business model, different categories are discovered and some great innovative types of business models. FMCG industries work mainly on the e-commerce platform .

Looking at these facts, it's likely to say that the FMCG industries possess great kinds of business models and promote innovative contemplation. Through this article, we would explain to you how FMCG industries make money along with some distinct business models.

What is FMCG? FMCG Market Size FMCG Business Model FMCG Marketing Strategies Conclusion FAQ

What is FMCG?

FMCG means Fast-Moving consumer goods. The direct-to-consumer business encompasses highly demanding products, sells rapidly, and comes at a very reasonable price. These are also known as Consumer packaged goods (CPG). The products in these industries are very fast-moving as they are convenient to deliver and sell very quickly from the stores and supermarkets because of the daily usage in our life.

The FMCG industry includes some of the biggest brands worldwide. Such as Nestlé , PepsiCo , JBS, Procter & Gamble, Coca-Cola, Unilever, and many more. It's always advantageous to work in this industry as it brings out great career opportunities.

FMCG Market Size

FMCG industries reached up to US$ 52.75 billion in FY18 and by the time of 2020, it rose to US$ 103.7 billion. With the sector of food items, hygiene, rural areas and health; the FMCG industries have grown with a 7.1% increase in the last 2 months of 2020.

When the product demands increase in the rural sector, it brings out a great revenue rate for the FMCG industry. The rural area contributes around 36% pg total FMCG industry spendings. As the government also put huge effort into the hygiene and health of the rural regions, the FMCG industry gained up to 10.6% of growth recovery.

The government initiatives for the low unemployment rate, high agricultural produce, and reverse migration for the advancement of the rural areas. When such initiatives are taken, the FMCG industry gains a great amount of profit in hand.

FMCG Business Model

Let's take a brief look at some of the data-driven business models of FMCG Industries.

Premium Service Model

Premium Service Model offers great consumer services . It provides a premium fee that is linked for the customers to sign up. It possesses substantial benefits and encourages the customers to sign up .

Through the increase in business insights, the retailers gain the incremental revenue that targets the customers more consistently and brings functioning modifications to them. Premium Service Model promotes customers loyalty, enhances sales, and has the average basket size.

Differentiator Service Model

Differentiator Service Model offers some very heightened benefits to the customers and also offers the chance to purchase the same times again. Moreover, it gives rewards that boost up the purchasing tendency.

Differentiator Service Model guarantees good customer loyalty and increases the basket size by purchasing the same items again and again. The retailer, however, gets access to the minute customer's data such as the email, contact details, history, and many others.

Return on Advantage Model

Return on Advantage Model also referred to as the Competitive Advantage Model focuses on driving the business insights for the growth of new products by combining the internal transactional data with the third party data. This also targets the experiences between the online and offline platforms and for better customer segmentation.

This business model targets customer segmentation to enhance its capabilities. Through this, the purchasing patterns are identified and assembled to gain a better possibility of targeting the customers .

FMCG Marketing Strategies

FMCG Industries has built a significant position in the market with its advanced product awareness strategies and customer loyalty . Here are some of the marketing strategies of the FMCG Industry.

Multiple Branding

In FMCG marketing , Multiple Branding is one of the most fascinating techniques to hold up the potential customers and strong market position. In this technique, the company creates fair competition among the same brand product categories.

Product line Building

Product line Building offers a wide range of variety to the customers based on their choices by altering the names. A company manufactures the same product with different needs of customers and sells them accordingly. However, there isn't any specific competition between such products as the target audience for each is distinct.

Huge Distribution Network

A huge Distribution Network is one of the very essential marketing strategies based on significant locations. This helps the product to reach every corner to gather its potential customers .

New Products Development

The company often modifies its products and then removes the old inconsistent ones. This helps them to maintain the competition and standards in the market. In this strategy, the company kept on researching and developing new features in their existing products. After modifying the product according to the consumer's needs, they replace the older ones with these.

Flanking is one of the very interesting FMCG marketing strategies. It sells the same product in different volumes and packaging . This helps the consumer to stick by the brand and purchase the product according to their favorable need. This brings a good option and probability for consumers to purchase the product.

Brand Extension

Normally when a company has made its strong position in marketing , to keep it consistent the company manufactures more products with the same name but different features, to gain massive sales. Brand Extension strategy is very essential as it brings more value to the brand and reaches the target audience quickly.

The Fast-moving consumer goods (FMCG) industry possesses some very strong brand holding in the market. With its incredible strategies and plans, it brings out great reliable growth development. FMCG industries are one of the most advanced and popular industries. It calls out a different business model to gain the required upholding with its consumers. FMCG industries include some of the very prominent brands worldwide that prove their success in the marketing field.

What is the biggest FMCG company?

Switzerland's Nestlé is the world's largest fast-moving consumer goods company, followed by two US giants: Procter & Gamble and PepsiCo.

Which FMCG is the best?

Some of the top FMCG companies are Hindustan Unilever Limited (HUL), Colgate-Palmolive, ITC Limited, Nestlé, Parle Agro, Britannia Industries Limited, Marico Limited and Procter and Gamble.

How do FMCG companies work?

In the FMCG industry, manufacturers often sell the goods to wholesalers, who sell them to the retailers, who in turn sell them to the consumers. This is a two-level channel.

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Fast-Moving Consumer Goods

Fast-moving consumer goods (FMCG) companies face a landscape transformed by disruption. BCG’s FMCG consultants help clients keep up with the pace of change and define a path to advantage.

The FMCG sector has an unmatched history of value creation performance—thanks to powerful brands, functionally superior products, and scaled operations. But slowdowns in global customer demand , multiple shifts in the customer landscape, and a loss of traditional scale advantages (due to new, digitally enabled models and the rise of e-commerce ) have caused the sector to underperform since 2017.

The pandemic only accelerated the decline. Looking forward, incumbents will—for the first time—be hit by multiple disruptions simultaneously, including a radical reshaping of shopping and channels, further erosion of scale advantages, and a heightened focus on social impact and purpose . Meanwhile, emerging technologies such as artificial intelligence will continue to revolutionize FMCG business models. Our FMCG consulting experts help clients launch the transformations essential for meeting these challenges and thriving in the new reality.

How BCG Helps the FMCG Sector Meet Five Strategic Imperatives

Our FMCG consultants work shoulder to shoulder with clients to enable them to meet five strategic imperatives vital for sustaining success. For each imperative, we help clients activate high-impact levers for transformation.

We back deployment of transformational levers with proven approaches and methodologies. For example:

Become an Always-On Portfolio Manager Reshape your portfolio further and faster by proactively buying and selling assets to build advantaged positions and skew organic growth investment by emphasizing leading brand positions over short-term margin gains.

Reinvent the Demand Model Accentuate the superiority of your offering through proprietary technology, advance next-gen demand science to gain unique insights, engage with consumers on a personal level, such as by combining new technology and 360-degree customer profiles to target “segments of one,” and more.

Digital End-to-End Capabilities Deploy hyperflexible go-to-market and net revenue management to drive sustainable volume growth. Bring AI to scale across your supply chain by investing in digital platforms to better forecast demand and turbocharge efficiency.

Elevating the Operating Model Embrace agile structures and ways of working. Unlock new sources of scale, accelerate innovation, and maximize flexibility.

Inspire with Purpose Turn purpose into competitive advantage and bolster stakeholders’ trust by anchoring your purpose in the company’s history and sustainability ambitions.

Our Fast-Moving Consumer Goods Solutions

Growth AI by BCG

This holistic suite of AI offerings is designed to maximize the growth potential of consumer packaged goods companies. It supports data-driven decisions across and within standard commercial functions including pricing and promotion, marketing allocation, product and service innovation, and route-to-consumer sales to improve strategy, planning, and execution.

Smart Allocation by BCG

Turbocharged by BCG X's technology asset Alloc AI, Smart Allocation offers an integrated transformation experience. Leveraging BCG’s deep expertise and transformation capabilities, Smart Allocation optimizes marketing and commercial budget allocation across salesforce and direct-to-consumer touchpoints.

Growth AI by BCG Recognized in POI’s 2023 Enterprise Planning Vendor Panorama Report

BCG was awarded four Best in Class distinctions in Promotion Optimization Institute (POI)’s 2023 Enterprise Planning Vendor Panorama Report for our tool Growth AI by BCG. POI's annual report evaluates leading vendors to help manufacturing and consumer products companies discover the latest technology and services that drive profitable growth.

Our Insights on Fast-Moving Consumer Goods

Five Imperatives for the Future of FMCG

Makers of fast-moving consumer goods must take several key steps to weather the sector's current challenges.

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Although anxiety over health and finances is high, attitudes remain surprisingly resilient. And some behavioral changes—including greater use of digital commerce and tools—are sticking.

Meet Our FMCG Consulting Team

BCG’s FMCG consultants draw on their understanding of the unique characteristics of FMCG and the forces shaping the future of the FMCG sector. We help clients excel on multiple fronts including FMCG marketing strategy, trade promotion management, and FMCG sales and distribution management.

Managing Director & Senior Partner; Global Leader, Consumer Practice

Managing Director & Senior Partner

Senior Advisor

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Blog – InvestinAsia

The Market Entry Experts Indonesia

How to Start an FMCG Business: 7 Success Guide

InvestinAsia Team
October 5, 2023

How to Start an FMCG Business (source:pexels)

Starting a Fast-Moving Consumer Goods (FMCG) business can be a lucrative venture, given the ever-increasing demand for everyday products. In this article, we will provide you with a step-by-step guide on how to start your own FMCG business successfully. We will also explore the FMCG industry opportunities in Indonesia , a region ripe for growth in this industry.

Also read: How to Start a Business: 10 Essential Steps for Success

How to Start an FMCG Business

This is a step-by-step guide on starting an FMCG business:

Research and Market Analysis

Before diving into the FMCG market, it’s crucial to conduct thorough research. Identify your target audience, analyze your competitors, and gain insights into market trends. This data will serve as the foundation for your business plan.

Business Plan Development

Develop a comprehensive business plan that outlines your goals, budget, and marketing strategies. A well-structured plan will help secure financing and keep your business on track.

Also read: How to Write a Business Plan: Simple Step-by-Step Guide

Legal Requirements and Registration

Register your FMCG business as a legal entity, ensuring compliance with local laws and regulations. Obtaining the necessary licenses and permits is essential to operate legally.

Sourcing Products

Select the products you want to sell under your FMCG brand. Ensure the quality and reliability of your suppliers. Establish strong relationships to maintain a consistent supply chain.

Branding and Packaging

Invest in branding and packaging that resonates with your target audience. A compelling brand identity will set you apart from competitors and attract customers.

Also read: How to Write a Unique Selling Proposition (USP) for Your Business

Distribution Network

Set up a reliable distribution network to ensure your products reach customers efficiently. Collaborate with distributors and retailers to expand your market reach.

Also read: 10 Types of Business Expansion Strategies

Marketing and Promotion

Create a strong marketing strategy encompassing both online and offline channels. Utilize social media, email marketing, and promotions to create brand awareness.

FMCG Business Opportunities in Indonesia

Indonesia boasts a burgeoning landscape of opportunities for Fast-Moving Consumer Goods (FMCG) businesses. One compelling factor is the country’s surging consumer demand, driven by urbanization, providing a diverse and expanding customer base.

This diversity allows FMCG entrepreneurs to introduce a wide array of products catering to varied tastes and preferences, spanning food, personal care items, household products, and more.

The digital revolution in Indonesia, marked by robust e-commerce growth, offers a pivotal channel for FMCG companies to connect with consumers. Embracing online sales and marketing strategies can significantly boost market penetration.

Also read: Top 20 FMCG Companies in Indonesia

Additionally, government support in the form of incentives and favorable policies makes it more enticing for FMCG newcomers to establish their presence and thrive in Indonesia.

Moreover, Indonesia’s ongoing infrastructure development, particularly in transportation and logistics, facilitates efficient product distribution across the archipelago. This enhanced accessibility empowers FMCG businesses to extend their reach and serve a broader geographic area.

In summary, Indonesia presents a fertile ground for FMCG ventures, driven by surging consumer demand, product diversity, e-commerce opportunities, government support, and improved infrastructure, making it a compelling market for business growth and expansion.

If you are considering starting an FMCG company in Indonesia, there are a number of resources available to help you get started. Apart from that, several private firms are available to assist you in establishing your business.

InvestinAsia is among the companies that specialize in aiding you with company registration in Indonesia . We boast a team of seasoned experts who can guide you throughout the process.

Foreign company / PMA registration in Indonesia
Indonesia representative office registration
Virtual office setup in Indonesia
Business registration number in Indonesia
Indonesian Business Licenses

If you are interested in starting an FMCG company in Indonesia, you can start by contacting us for FREE consultation .

FAQ about FMCG Businesses

Which fmcg product is most profitable.

The profitability of FMCG products can vary widely depending on factors like market demand, production costs, and competition.

Some of the most profitable FMCG product categories typically include high-margin items such as cosmetics, health supplements, and specialized food and beverages. However, profitability can also be influenced by market trends and consumer preferences, so it’s essential to conduct thorough market research to identify lucrative opportunities.

How profitable is FMCG?

The profitability of an FMCG business can vary significantly based on several factors, including the specific products being sold, market conditions, pricing strategies, and operational efficiency. Generally, FMCG businesses are known for their ability to generate consistent revenue due to the constant demand for everyday products.

Still, individual profitability depends on various factors unique to each business. Proper financial planning, cost management, and effective marketing strategies are essential for maximizing profitability in the FMCG sector.

What is the failure rate of FMCG?

The failure rate of FMCG businesses, like any other industry, can vary widely. Numerous factors contribute to business success or failure, including market dynamics, competition, management capabilities, and economic conditions.

While some FMCG businesses thrive and expand rapidly, others may face challenges and struggle to establish themselves.

To mitigate the risk of failure, thorough market research, a well-structured business plan, and continuous adaptation to changing market conditions are crucial.

What are the 3 major segments of the FMCG industry?

The FMCG industry comprises various product categories, but three major segments typically stand out:

Food and Beverages: This segment includes a wide range of products such as packaged foods, beverages, snacks, and dairy products.
Personal Care and Household Products: This segment encompasses items like toiletries, cosmetics, cleaning agents, and personal hygiene products.
Healthcare and Pharmaceuticals: This segment includes over-the-counter medications, vitamins, and health supplements.

If you have additional questions or inquiries, please feel free to chat with us!

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FMCG Company Business Plan

Fmcg company business plan presentation, free google slides theme and powerpoint template.

Fast Moving Consumer Goods, or commonly known as FMCG is the term used to refer to those products with a short life by default made by continuous or seasonal mass production. If you work for a company for this kind of goods and you want to present your next business plan, let’s present it with this cool template! The design is so dynamic and colorful to match the energy of these fast-paced products! Catchy, attractive, colorful, moving… These are some adjectives that might describe these slides, as well as this business strategy you want to present!

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FMCG Pitch Deck Guide 2024 Insights (Best Pitch Deck Examples, Template And More)

January 11, 2024

Presentation and Pitch Expert. Ex Advertising.

$100mill In Funding. Bald Since 2010.

Are you ready to transform your FMCG startup into a market sensation? This guide is meticulously crafted, combining years of industry expertise with winning strategies that have already helped numerous FMCG startups secure substantial funding. Imagine presenting a pitch deck so compelling that investors are eager to be part of your journey, driving your brand to new heights.

Hey, It’s Viktor, your pitch deck expert , presentation expert and burger lover. I’ve been pitching for the past 13 years and helped clients raise millions with my unique approach to creating pitch decks.

Think of me as your sommelier, guiding your taste buds through the robust, full-bodied world of FMCG.

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Building Trust

Humanizes your business, stay calm and composed, contact information, 3. natural skincare brand, what is an fmcg pitch deck is it an investor pitch deck.

An FMCG (Fast-Moving Consumer Goods) pitch deck is a presentation that entrepreneurs or business leaders create to illustrate their business strategy, product line, or marketing plans in the FMCG sector to potential investors, partners, or stakeholders.

The purpose is to convince the audience that their business or project is valuable, viable, and likely to succeed in the highly competitive and fast-paced FMCG market. The pitch deck would typically include information about the company, the problem they are solving, their unique solution, market size, business model, competitive advantage, marketing strategy, team composition, financial projections, and the investment they’re seeking.

How to Create An FMCG Slide Deck Presentation?

Creating an effective FMCG pitch deck involves several steps that require a clear understanding of your business, its unique selling propositions, and the specific audience you’re presenting to. Here are some steps to consider:

Understand Your Audience: Before you start, research who you’re presenting to. Understand what interests them, what kind of language they respond to, and what they’re looking for in a pitch. Different stakeholders (investors, partners, clients) might have different concerns.
Tell a Story: Start with a compelling narrative that hooks your audience’s attention. Frame your company as the solution to a significant problem that exists in the FMCG market.
Define Your Value Proposition: Clearly articulate what makes your product or service unique. Highlight the benefits it offers and why it’s better than alternative solutions on the market.
Conduct Market Analysis: Show your understanding of the market, including its size, trends, and growth potential. Demonstrate the demand for your product and your target audience.
Identify Your Competitors: Recognize your competition and explain how your offering is different or superior. This helps to establish your business’s place in the market.
Explain Your Business Model: Describe how you make money. This includes your revenue streams, pricing strategy, cost structure, and scalability.
Detail Your Marketing & Sales Strategy: Outline how you plan to reach your target customers and what strategies you’ll use to retain them.
Present Your Financial Projections: Showcase your financial forecasts for the next three to five years. This provides a tangible measure of your business’s potential success.
Introduce Your Team: Highlight the expertise and qualifications of your team members. Show why they are the right people to make this business successful.
State Your Ask: Clearly state what you’re seeking from the audience, be it investment, partnership, or something else. Explain how the funds will be used and what they can expect in return.
Design Your Deck: Make your presentation visually appealing and easy to understand. Keep text to a minimum, use high-quality images, and ensure your design is consistent.
Practice Your Delivery: The presentation isn’t just about the slides—it’s also about how you deliver them. Practice your pitch until you’re comfortable, ensuring you can explain each point clearly and confidently.

Remember to tailor your pitch deck to your audience and keep it concise, engaging, and straightforward. Also, be prepared to answer questions about your presentation.

What Does An FMCG Pitch Deck Include? The Exact Fmcg Pitch Deck Slide Structure You Can Steal And Use

Cover : Your company’s name, your name, title, and contact information.
Mission : A catchy one-liner summarizing your company’s mission and what it stands for.
Problem : Description of the problem your product/service addresses. Use statistics and facts to back your points.
Solution : Detailed information on your product/service and how it solves the problem outlined in the previous slide.
Product Demo: Depending on your product, include images, diagrams, or a short demo. Show your product in action.
Market Opportunity: Use facts and figures to show the size and potential of your target market.
Business Model: Explain how you plan to make money. Highlight your sources of revenue, pricing strategy, and how it compares to your competitors.
Go-To-Market Strategy: Outline your marketing and sales strategy, including how you’ll reach your target market and acquire customers.
Competitive Landscape: A comparison of your product/service with key competitors. Show your unique selling propositions.
Financial Projections: A slide with graphs and charts showing your revenue, cash flow, and profitability projections for the next 3-5 years.
Current Status & Milestones: Highlight your current position, key accomplishments, and future milestones.
Team : A showcase of your team members and their qualifications. Highlight their expertise and why they’re the right people for the job.
The Ask: Clearly state what you’re seeking, whether it’s a specific amount of investment, strategic partnerships, etc.
Exit Strategy: Indicate potential exit strategies for investors, such as a buyout or an IPO.
Contact/Thank You: Your contact information for follow-up and a note of thanks for their time and consideration.

Remember, this is an fmcg pitch deck template; you may need to modify it to better fit your business and audience. Use it as a starting point and adapt it to make it truly yours.

Secure Your Personalized FMCG Pitch Deck Structure Template That Aided Clients to Millions in Funding

When presenting your FMCG venture to potential investors or partners, having a well-structured, persuasive pitch deck is indispensable.

While numerous ready-to-use templates are available on platforms like Canva or Google Slides, tailoring these to fit your unique brand narrative and value proposition can become a laborious task.

Here’s your solution: a customized, professionally designed template offers a faster and more streamlined approach. Clients have utilized this technique to craft compelling FMCG pitch decks in a fraction of the usual time, securing deals and investments.

So, if you’re looking for a more effective method for building your FMCG pitch deck, let’s collaborate. You’ll receive access to the proven template structure that has already propelled success for others in the FMCG sector. It’s time to elevate your pitch deck game to unprecedented heights!

The Importance Of Understanding Your Audience When Creating An FMCG Pitch Deck

Understanding your audience when creating an FMCG (Fast-Moving Consumer Goods) pitch deck is crucial for a number of reasons:

Tailored Message

Different audiences have different priorities and concerns. Investors may be interested in financial forecasts and exit strategies, while potential partners might focus more on your products, market positioning, and shared synergies. By understanding your audience, you can tailor your pitch to address their specific interests and concerns.

Appropriate Language and Tone

The language and tone you use should resonate with your audience. For instance, a technical audience may appreciate more jargon and detailed product specifications, while a non-technical audience might prefer simpler, more accessible language.

Engagement and Connection

Knowing your audience helps you create a narrative that connects with them on a personal level. If you can engage your audience emotionally, they’re more likely to be invested in your story and remember your pitch.

Anticipating Questions

Understanding your audience can help you anticipate the questions they’re likely to ask. You can address some of these in your pitch and be better prepared to answer others in the Q&A session.

When your audience feels understood, they’re more likely to trust you and your business. This trust can be crucial in convincing them to invest, partner, or otherwise engage with your company.

Overall, knowing your audience allows you to create a pitch deck that is more persuasive, relevant, and impactful.

5 Reasons Why Crafting A Compelling Story Is Important When Creating An FMCG Pitch Deck

Crafting a compelling story in an FMCG pitch deck is critical for several reasons:

Engages the Audience

Storytelling captures the audience’s attention and makes your presentation more memorable. It provides an emotional connection that plain facts and figures cannot, making your audience more invested in what you’re presenting.

Simplifies Complexity

Stories can simplify complex ideas and make them easier to understand. By explaining your business or product through a narrative, you can help your audience understand it more intuitively.

Demonstrates Value

A well-crafted story can vividly illustrate the problem your product solves and the value it offers. This can make it easier for your audience to see why your product is needed and how it stands out from the competition.

Shows your Journey

A story can convey your company’s journey, including the challenges you’ve overcome and the milestones you’ve achieved. This can help to build credibility and show your commitment and resilience.

Sharing a story about your business helps humanize it. It provides a glimpse into the people behind the company and their passion, making it easier for your audience to relate to and trust your business.

To help you improve your narrative, check this article on the best books for pitching . The authors have won billions in $$$ thanks to their ability to create stories when pitching and are sharing their methods with you

In essence, storytelling is a powerful tool that can make your pitch more impactful, relatable, and persuasive. It’s not just about what your product is, but why it matters and how it came to be.

5 Reasons Why Design And Visuals Are Important When Creating An FMCG Pitch Deck

The design and visuals of your FMCG pitch deck are crucial and can significantly impact how your presentation is received. Here’s why:

A well-designed pitch deck with engaging visuals can grab and hold the attention of your audience. It can make your presentation more engaging and enjoyable to follow.
Visuals like infographics, charts, and diagrams can help simplify complex information and make it more digestible. This can aid understanding and help your audience to remember key points.
A polished, consistent design can convey a sense of professionalism and competence. It shows you’ve invested time and effort into your presentation, which can reflect positively on your business.
Your pitch deck should reflect your company’s brand identity in its color scheme, fonts, and imagery. This can help to build brand recognition and create a consistent, memorable image of your company.
Visuals can evoke emotions more effectively than text. The right image or color can create an emotional connection with your audience and make your story more compelling.
Studies have shown that people remember information better when it’s presented visually. Using visuals in your pitch deck can therefore increase the likelihood that your audience will remember your presentation.

Hold on. You might want to check my list on the best presentation books. Why?

It’s 1O crucial books that will help you improve the design and structure of your presentations, besides improving its delivery. Check it out below.

In summary, while content is certainly vital, don’t underestimate the power of design and visuals when creating your FMCG pitch deck. They can make your presentation more impactful, memorable, and persuasive.

6 Tips To Help You Effectively Prepare For Questions And Objections When Presenting An FMCG Pitch Deck

Preparing for questions and objections when presenting your FMCG pitch deck is crucial to demonstrate your command over your business plan and the market you’re targeting. Here are some strategies you can use:

Anticipate Questions

Think about the potential questions that might arise from each slide in your presentation. Consider aspects like market size, business model, competition, revenue projections, and your team. It might be helpful to have a colleague or mentor go through your pitch and pose possible questions.

Understand Your Data

Be sure you fully understand all the data and information presented in your pitch. If you’re presenting financial projections or market data, for instance, you should be able to explain how you arrived at those figures.

Practice Responses

Once you’ve anticipated potential questions, practice your responses. This will help ensure you can answer smoothly and confidently.

Prepare a FAQ Document

Having a Frequently Asked Questions (FAQ) document can be useful. You may not have time to cover everything in your presentation, and an FAQ can provide additional information if required.

Address Objections Head-On

If you know there are potential objections to your plan, address them directly during your presentation. This shows you’ve thought through the challenges and have a plan to overcome them.

If you don’t know the answer to a question, it’s okay to admit it. It’s much better to say you’ll find out and follow up later than to guess or provide inaccurate information.

Regardless of the nature of the questions or objections, always stay calm and composed. This will project confidence and control, which can reassure your audience about your ability to lead your business.

Remember, the Q&A is an opportunity to demonstrate your deep knowledge of your business and your market, and to build confidence in your ability to execute your plan.

10 Best Practices When Creating A Real Estate Pitch Deck

Creating an effective FMCG pitch deck involves a number of best practices. Here are some key tips:

Simplicity is Key: Your pitch deck should be concise, clear, and easy to understand. Avoid using jargon or overly technical language, unless you’re sure your audience will understand it.
Visual Appeal: Make your pitch deck visually appealing with a clean, consistent design. Use visuals like charts and infographics to simplify complex information and increase retention.
Tell a Story: Use a narrative structure to make your pitch more engaging and memorable. Frame your business as the solution to a significant problem in the FMCG market.
Know Your Audience: Tailor your pitch to your specific audience. Different stakeholders (e.g., investors, partners, customers) have different concerns and interests.
Focus on Benefits, Not Features: Don’t just list your product’s features. Instead, highlight the benefits it offers and the value it provides to customers.
Showcase Your Team: Your team is one of your biggest assets. Highlight their skills, experience, and achievements to show why they’re the right people to execute your business plan.
Provide Solid Data: Back up your claims with solid data and evidence. This could include market data, financial projections, or case studies.
Address the Competition: Recognize your competitors and clearly articulate your unique selling proposition—what sets you apart from them.
Clear Ask: Be clear about what you’re asking for—whether it’s investment, partnership, or something else. Explain how the funds or resources will be used and what the audience can expect in return.
Practice Your Delivery: Remember that a pitch deck is not just a set of slides—it’s a presentation. Practice your delivery to ensure you can present confidently and handle any questions that arise.

By adhering to these best practices, you can create a compelling FMCG pitch deck that engages your audience, clearly communicates your value proposition, and effectively persuades them to take the desired action.

What nobody will tell you: Crucial considerations to keep in mind when developing your FMCG pitch deck and business

10 insights. These are things no advisor, startup event organizer or coach will tell you for free. We’ve done the research and combined it with our experience to give you these insights with no strings attached.

Go-To-Market Strategy

Creating a Go-To-Market (GTM) strategy slide in your FMCG pitch deck is essential to convey a clear, actionable plan for reaching your target audience and achieving a market advantage over competitors. Here’s how you can make this section insightful and action-oriented:

Understand Your Audience : Start by creating and understanding personas for your target audience. This involves researching and defining the demographics, behaviors, pain points, and geolocations of your ideal customer profiles. For instance, if your FMCG product is a healthy snack, your target audience might include health-conscious consumers, busy professionals seeking convenient nutrition, and parents looking for healthy snack options for their children.
Choose the Right Channels : Decide on the most effective distribution and sales channels based on your updated Ideal Customer Profile (ICP). In the FMCG sector, this might include direct-to-consumer channels, retail partnerships, or online marketplaces. For example, an organic food product might be distributed through health food stores and online platforms focusing on wellness products.
Develop a Pricing Strategy : Determine your product’s value proposition and choose a pricing model that aligns with your market niche, cost of production, and customer expectations. FMCG products often use cost-plus pricing or value-based pricing. For instance, a premium organic skincare brand may opt for value-based pricing to reflect its quality and unique benefits.
Sales and Marketing Synergy : Ensure a cohesive strategy between sales and marketing efforts. Your marketing strategy should cover aspects like lead generation, branding, and content marketing, while the sales strategy focuses on tools, resources, and tactics. For example, in the FMCG sector, a marketing campaign might focus on educating consumers about the unique benefits of a product, while the sales strategy could involve in-store promotions and demos.
Design the GTM Slide Effectively : Keep your GTM slide simple and visually appealing. Use high-resolution images, clear font styles, and visual elements to present your strategy effectively. Include graphs and charts to represent data like market segmentation.
Timeline for Execution : Include a timeline showing when and how you plan to implement various aspects of your GTM strategy. For example, you might start with online sales to build brand awareness and then expand to retail distribution.
Avoid Common Mistakes : Be wary of common pitfalls such as focusing on too many customer segments at once or trying too many channels without mastering one.

By following these steps, you can create a compelling GTM strategy slide that not only demonstrates your understanding of the FMCG market but also clearly communicates your plan to potential investors and stakeholders .

Competitive Landscape

The Competitive Landscape section of an FMCG pitch deck is crucial for showcasing your understanding of the market and differentiating your product or service from others. Here are key aspects to consider and actions to take:

Research Your Target Market and Trends : Begin by gaining a deep understanding of your market, including size, segments, and trends. This foundational knowledge is critical for positioning your FMCG product effectively against competitors .
Identify and Evaluate Your Competition : Determine who your direct and indirect competitors are. Analyze their product, price, place, and promotion strategies. Understand their unique selling proposition, reputation, and partnerships. This detailed analysis helps in identifying gaps in the market that your product can fill .
Highlight Unique Values : Identify and articulate what makes your FMCG product unique. This could be anything from customer service, user experience, innovative distribution strategy, or a unique pricing model. Clearly presenting these unique values will help set your product apart in the competitive landscape .
Keep It Customer-Oriented : Emphasize how your product or service addresses customer needs more effectively than competitors. Showcase any advantages your product has in meeting customer demands, which is particularly important in the FMCG sector where customer preferences can rapidly change .
Determine Your Strategic Advantage : Identify what gives you an edge over the competition. This could be a unique feature, a market niche, or a competitive pricing strategy. Remember, the focus should be on how you are different or better, not just on what competitors are lacking .
Use Effective Tools for Analysis : Utilize online analytics tools, SWOT analysis, and competitor analysis tools to gather comprehensive data about your competitors. This includes demographic information, market share, product features, pricing, and more .
Apply Collected Information Effectively : After evaluating the competitive information, decide how to apply it to your deck. This could include a slide comparing your offering with the competition, highlighting your unique features or value proposition, and showcasing how you’re different from the competition .
Visually Represent the Competitive Landscape : Use creative design elements to visually represent the competitive landscape. Avoid simple bullet points and instead opt for visually engaging tables or graphs that compare your product with competitors in terms of features, benefits, and market positioning .

In summary, a well-crafted Competitive Landscape section in your FMCG pitch deck should convincingly showcase how your product stands out in the market, its unique value propositions, and how it addresses customer needs more effectively than competitors. This section is not just about presenting data but about telling a compelling story of your product’s place in the market.

Financial Projections

In an FMCG pitch deck, financial projections play a crucial role in demonstrating the viability and potential of your business to investors. They provide a quantifiable representation of anticipated revenue, expenses, profitability, and key metrics, typically for a period of three to five years. This information is essential for investors to assess the financial health and future prospects of your business.

To create effective financial projections for an FMCG pitch deck, consider the following actions:

Include Revenue Projections : Outline the expected income generated from the sale of products or services. This should reflect the scalability and potential of the startup in generating revenue.
Detail Expense Forecasts : Provide anticipated costs and expenditures related to running the business, including operational expenses and growth investments.
Present Cash Flow Statements : Track cash movements into and out of the company, highlighting the ability to sustain healthy cash flows.
Show Profit and Loss (P&L) Projections : Deduct expenses from anticipated revenue to showcase projected profitability.
Incorporate Key Metrics : Early-stage companies should include assumptions like gross margin, net income, and various operational metrics. Relevant metrics might include customer acquisition cost (CAC), lifetime value of a customer (LTV), conversion rates, daily active users (DAU), monthly active users (MAU), churn rate, EBITDA, net profit, and gross margin.
Avoid Common Mistakes : Be cautious about projecting unrealistically high revenue growth, confusing gross merchandise value (GMV) with net revenue, focusing on user growth without corresponding revenue growth, omitting customer acquisition cost, or basing lifetime value (LTV) on inaccurate churn rates.
Tailor Projections to Your Fundraising Stage : The depth and detail of financial projections will vary depending on the stage of your fundraising. For example, a pre-seed round might focus on high-level revenue projections and key profit margins, while later stages would require more detailed revenue breakdowns and specific KPIs.

Financial projections should not only demonstrate potential profitability but also indicate that your business model is sustainable and scalable, particularly important in the dynamic FMCG market. Remember, the goal of these projections is to provide a realistic picture of your fiscal responsibility and future growth, not to create an exact forecast of your financial future. It’s about establishing credibility with investors and showing that your business is a worthy investment opportunity.

For further insights and detailed guidance on crafting financial projections for your pitch deck, you can refer to the resources provided by Waveup Blog , Alejandro Cremades , and Built In .

Current Status & Milestones

In an FMCG pitch deck, the Current Status & Milestones slide is pivotal for illustrating the growth journey and future objectives of your company. It functions like a roadmap, showcasing both past achievements and future plans, thereby instilling investor confidence and demonstrating your company’s progress and strategic direction.

To effectively create this slide, follow these steps:

Define a Clear Objective : Establish what you aim to communicate with the milestone slide.
Outline Key Achievements : List significant milestones and accomplishments of your company.
Highlight Future Milestones : Show your upcoming objectives and milestones.
Organize in a Timeline Format : Present your milestones in a chronological timeline for clarity.
Use Visuals and Graphics : Enhance engagement using charts, graphs, icons, or images.
Keep it Concise : Focus on delivering your message succinctly.
Data-Driven Approach : Support your milestones with relevant data and metrics.
Review and Iterate : Refine your slide to ensure effective communication of your company’s journey.

Remember, specificity and focus on key metrics are crucial to making this slide impactful. Avoid vague milestones and overwhelming details. Align each milestone with your overall pitch and contribute to your company’s growth story.

For more detailed guidance on crafting an impressive Current Status & Milestones slide, PitchBob provides comprehensive insights and examples .

Team Showcase

In an FMCG pitch deck, the team slide is vital as it highlights the strengths and experiences of team members, crucial for driving business success. This slide should visually represent each team member, showcasing their backgrounds, roles, and why they are suitable for these roles. It’s important to balance providing sufficient detail with keeping the slide concise and engaging. You can opt for various formats like full bios, combined experience, or a minimal approach, each with its pros and cons. Full bios provide comprehensive information but can be text-heavy, combined experience focuses on team achievements, and minimal slides are clean but may lack detailed information. The choice of style depends on the context of the presentation and the audience. Overall, the team slide should effectively communicate the collective capabilities and qualifications of the team, reflecting their potential to fulfill the company’s objectives in the FMCG sector .

In an FMCG startup pitch deck, the “Ask” slide is crucial as it clearly communicates to investors the funding requirements and how the funds will be utilized. This slide should answer three key questions:

How Much are You Raising? : Clearly state the amount of funding you are seeking. It’s important to strike a balance between raising too little, which might limit growth, and raising too much, which could dilute ownership or set unrealistic expectations.
Where Will the Money be Spent? : Provide a breakdown, ideally in the form of a pie chart, showing how the funds will be allocated (e.g., product development, sales, marketing). This demonstrates thoughtful planning and a clear understanding of your business needs.
What are Your Terms? : Outline the key terms of the investment opportunity, including valuation, type of investment instrument, minimum ticket size, expected runway, and monthly cash burn.

Remember, at the earliest stages of negotiation, it may be prudent to avoid including specific terms in the pitch deck and instead discuss them during negotiations.

For more detailed insights on crafting the ‘Ask’ slide in your FMCG pitch deck, you can refer to the article on SharpSheets .

Exit Strategy

In an FMCG pitch deck, the Exit Strategy slide is essential as it outlines how investors can realize returns on their investment. This strategy is a plan for the startup’s founders and investors to cash out their equity and exit the business, typically through acquisition, IPO, or buyout by private equity firms. Including an exit strategy demonstrates to investors that you understand the risks associated with the startup journey and have a safety net in place. It also shows market awareness and strategic foresight. Key components of an effective exit strategy in a pitch deck include financial projections, potential exit scenarios, and case studies of successful exits in similar companies. It’s important to tailor this strategy to different investor profiles and address potential concerns upfront. Avoid overpromising and ensure the exit strategy aligns with the overall pitch narrative .

In an FMCG pitch deck, the Contact Information slide is a simple yet crucial element. It provides potential investors or partners with direct channels to reach you for further discussions, queries, or investment decisions. Essential details include:

Company Name and Logo : Clearly display the name and logo for brand recognition.
Primary Contact Person : Name and title of the person to contact, usually a founder or CEO.
Email Address : A professional email address for formal communication.
Phone Number : A direct line for more immediate or detailed discussions.
Company Address : The physical address, especially important if you have a manufacturing or retail presence.
Website and Social Media Links : Include your website and relevant social media handles for more information about your company and its products.
QR Code : A QR code linking to your website or a digital copy of your pitch deck can be a modern, convenient touch.

Ensure this information is current and accurate to facilitate smooth communication and maintain professionalism.

Use these insights and make a winning pitch. If you want to talk about them, reach out to me and book a call.

How to creatively pitch your FMCG startup pitch deck?

For a creative and attention-grabbing FMCG startup pitch, consider these novel ideas:

Product Demonstration : Start with a live, engaging demo of your product, showing its unique features.
Customer Testimonial Videos : Integrate brief, powerful testimonials from satisfied customers.
Interactive Polls : Use technology to conduct live polls with the audience, making them part of your presentation.
Virtual Reality Experience : If applicable, provide a VR experience of your product or store environment.
Storytelling with Props : Use props related to your FMCG products to tell a compelling story.
Augmented Reality Presentation : Integrate AR into your presentation to showcase your product in a futuristic way.
Flash Mob : Organize a flash mob related to your product’s theme before or after your presentation.
Theme Dressing : Dress according to your product theme to make a lasting impression.

Remember, the key is to align these ideas with your product’s core message and your audience’s interests.

FMCG Best Pitch Deck Examples To Inspire You

1. vegan and organic snack food company.

Slide 1 – Company Introduction: “Earth Bites: Your Go-To for Vegan, Organic Snacks. Pioneering a new era in snack foods, combining health and flavor in every bite.”
Slide 2 – Problem Statement: “The market is flooded with unhealthy, processed snacks. Consumers struggle to find tasty, vegan, and organic snack options.”
Slide 3 – Solution: “Earth Bites offers a range of delicious, nutritious, vegan, and organic snacks. Good for you, good for the planet.”
Slide 4 – Market Opportunity: “With the global vegan food market projected to reach $31.4 billion by 2026, the opportunity for vegan snacks is ripe.
Slide 5 – Product Range: “Our diverse product range includes vegan granola bars, fruit and nut mixes, plant-based protein shakes, and more.
Slide 6 – Target Audience: “Health-conscious consumers, vegans, vegetarians, and those with dietary restrictions looking for tasty, nutritious snack options.”
Slide 7 – Go-to-Market Strategy: “Launch online through our website and major e-commerce platforms. Partner with health and fitness centers for retail opportunities.”
Slide 8 – Financials: “Financial projections including sales, revenues, and profitability over the next 5 years.”
Slide 9 – Team: “Our team combines industry experience in food technology, nutrition, and business management.”
Slide 10 – Ask: “Seeking $1M in funding for product development, marketing initiatives, and scaling production.”

I might even become vegan after creating this.

2. Eco-friendly Cleaning Products Startup

Slide 1 – Company Introduction: “CleanGreen: Eco-Friendly Cleaning for a Better Tomorrow. We make products that are tough on dirt and gentle on the earth.”
Slide 2 – Problem Statement: “Traditional cleaning products contain harsh chemicals that harm the environment and can cause health issues.”
Slide 3 – Solution: “CleanGreen’s range of eco-friendly, non-toxic cleaning products delivers powerful cleaning without the harmful side effects.”
Slide 4 – Market Opportunity: “With the global green cleaning products market expected to reach $27.83 billion by 2027, now is the time for CleanGreen.”
Slide 5 – Product Range: “Our products include all-purpose cleaners, dish soaps, laundry detergents, and bathroom cleaners, all made with eco-friendly ingredients.”
Slide 6 – Target Audience: “Eco-conscious households, commercial cleaning services, and businesses committed to sustainable practices.”
Slide 7 – Go-to-Market Strategy: “Distribution through online channels, local eco-friendly stores, and partnerships with green-oriented businesses.”
Slide 8 – Financials: “Presenting financial projections that highlight revenue growth, profitability margins, and ROI over the next 5 years.”
Slide 9 – Team: “Our dedicated team brings together expertise in chemical engineering, business development, and environmental science.”
Slide 10 – Ask: “Requesting $2M in investment for product line expansion, marketing, and scaling distribution channels.”
Slide 1 – Company Introduction: “NatureGlow: Embrace the Power of Nature for Beautiful Skin. We offer natural skincare products, free from harmful chemicals.”
Slide 2 – Problem Statement:* “Many skincare products in the market are loaded with harmful chemicals that can damage the skin in the long run.”
Slide 3 – Solution: “NatureGlow offers a range of natural, chemical-free skincare products that nourish your skin and help it glow.”
Slide 4 – Market Opportunity: “The global organic skincare market is expected to reach $22.3 billion by 2025, signaling a huge opportunity for NatureGlow.”
Slide 5 – Product Range: “Our products embrace nature’s best, offering a range of face creams, serums, cleansers, body lotions, and more – all made with 100% natural ingredients.”
Slide 6 – Target Audience: “Nature enthusiasts, skincare aficionados, and health-conscious consumers looking for natural, chemical-free skincare products.”
Slide 7 – Go-to-Market Strategy: “Distribution through our e-commerce platform, beauty retail chains, and collaboration with well-established spas and wellness centers.”
Slide 8 – Financials: “Detailed financial projections featuring revenue growth, cost analysis, and profitability expectations over the next five years.”
Slide 9 – Team: “Our robust team amalgamates expertise from dermatology, cosmetic science, and business management, unified by a shared vision for natural beauty.”
Slide 10 – Ask: “We are seeking an investment of $2.5M to amplify our product line, boost our marketing efforts, and extend our distribution reach.”

10 Questions That Investors Ask FMCG Pitch Deck Owners When Fundraising:

Investors typically have a set of key questions they ask when considering an investment in an FMCG (Fast-Moving Consumer Goods) company. Here are some common ones:

What problem does your product solve? They want to understand the need for your product in the market and how it provides a solution to a real problem.
Who are your target customers? They’ll want to understand your market segment and whether you have a clear understanding of who your customers are.
What is your unique selling proposition (USP)? They are keen to know what sets you apart from the competition. What makes your product unique?
Who are your competitors? Investors will want to know the competitive landscape and how you plan to differentiate and stay ahead.
What is your go-to-market strategy? They will be interested in how you plan to market and distribute your product, and whether it’s a cost-effective strategy.
What is your business model? They’ll want to understand how you plan to make money and whether it’s a sustainable model in the long run.
What are your financial projections? Investors will want to see your sales, revenue, and profit forecasts, and understand the assumptions behind them.
Who is on your team? They’re interested in the people who will be executing the business plan. The skills, experience, and commitment of the team are often key factors in an investor’s decision.
What is your funding need and how will the funds be used? Investors will want to know how much capital you need, how you plan to use it, and what milestones it will help you reach.
What are the exit strategies? While this can sometimes be overlooked in the early stages, savvy investors will want to know your thoughts on potential exit strategies.

Keep in mind that every investor may have their unique questions or areas of focus, so it’s important to know your audience and prepare accordingly.

As we wrap up, remember, in the fast-paced world of FMCG, standing still is akin to moving backwards. To leap forward, you’ll need more than just a good product—you’ll need an FMCG pitch deck that doesn’t just communicate, but captivates! Whether you’re wooing investors or enticing partners, your pitch deck is your passport to success.

Why scramble through a sea of generic templates when a proven, customizable blueprint awaits? Our game-changing template, a catapult for over $10 million in funding, is your golden ticket. If crafting a compelling narrative were a sport, we’re offering you the equivalent of rocket-powered roller skates.

So let’s connect, craft, and catapult your FMCG venture to the front lines of the market battleground. Because remember, in this arena, fortune doesn’t just favor the brave—it favors the well-prepared!

You got this!

But if you don’t got it :

Let me develop an investor ready deck by using my hands-off approach , which includes: market research, copy, design, financials, narrative and strategy.

More Resources

Discover my foundational guide on pitch decks that have propelled my clients to secure millions in funding:

Startup Pitch Deck Guide: How To Create A Pitch Deck For Investors (Template Incl)

You’ll gain the knowledge to design a pitch deck by following my fail-safe, step-by-step methodology that has assisted my clients in raising millions. The guide covers:

The process of constructing the slides (encompassing the elevator pitch slide, financials slide, and more)
Examples of successful startup pitch decks
Essential information that investors look for
The integral elements of a successful pitch deck
Aspects to avoid in your pitch deck
Helpful hints and insider strategies for crafting a persuasive pitch presentation

Don’t miss out on the plethora of other insightful pitch deck guides available here:

Also don’t miss out on my massive presentation specialist guide , last minute presentations and best business projector buyers guide.

Route to Market & Supply Chain Blog

Harness the best in fmcg distributor execution - joint business plans.

Over the last few months, I have shared the proven and successful Enchange approach, to find and develop FMCG Distributor Partners (DPs). We call this the Distributor Partner (DP) Development Programme . We use this Programme to source new DPs, to implement a new FMCG company approach with DPs, to drive and improve their performance and/or, to train our DPs, FMCG RtM and/or Distributor Managers.

It is our step-by-step approach to drive and develop FMCG distributor performance across an Eight-Module Programme. As part of this journey, I have previously shared the first Seven Modules, across three stages. As a recap:

STAGE ONE: INTERNAL PRODUCER FOCUS

Module 1 - Producer RtM Strategy will ensure that the Producer understands their RtM goals and can communicate them to any DP to translate these RtM goals into DP capabilities/actions.
Module 2 - Model Distributor ensures that the Producer knows what good looks like in an ideal or ‘Model DP’. This is the definition of a sustainable industry and geo-specific Best in Class Distribution.

STAGE TWO: DISTRIBUTOR PARTNER FOCUS

Module 3 - Distributor Assessment looks at how to identify and assess our current or potential new DPs, to rank the best options, and then divide them into performance bands for actioning.
Module 4 - Distributor Partnership looks at how to build a joint approach for sales and profit growth by laying foundations upon which the relationship will be successfully built and managed.
Module 5 - Planning & Logistics shows how to improve DP Operations by focusing on the detailed processes and standards around key activities, including for example, inventory (planning, management, ordering), minimising theft, warehousing, fleet, and customer care.
Module 6 – Finance & Back Office will ensure that our DPs are financially secure, are credit risk aware, and have the financial resources to support sustained growth in our joint business.

STAGE THREE: EXECUTION FOCUS

Module 7 – Sales Management focuses on how to drive DP sales performance, how the DPs can deliver excellence in RtM execution, and how we can help them to do so.

Now we will cover the final part of STAGE THREE: EXECUTION FOCUS, with Module 8 – Execution JBP & JAP . In this article, I will focus on the details of the Joint Business Plan (JBP).

FMCG RtM Excellence in Execution - Joint Business Plan

How Do We Bring All of the Above Together?

We combine all the detailed components of the previous Seven Modules into two jointly built plans. These plans must be easy to understand, be regularly reviewed with the DP and the Producer, with both parties jointly and openly committing to their delivery.

The final Module of the DP Development Programme is anchored by two crucial plans, a Joint Business Plan (JBP) and a Joint Action Plan (JAP). A JBP should be strategic in nature focusing on long term goals, and a JAP should be operational in nature focusing on how to achieve those long-term goals . Let’s get into the detail of the JBP.

What is a Joint Business Plan (JBP)?

A Joint Business Plan (JBP) is a shared strategic document that provides a roadmap to delivering the elements agreed in the Trading Terms & Conditions (TTC) between the Producer and the DP. It is long term focused and should detail the joint ambition, and what each party needs to do to fulfil that ambition.

One of the primary goals of any JBP is to bring clarity for both parties, remove any ambiguity and make sure the key individuals across both organisations understand which party does what, when, where, how and why. This understanding must begin at the top of both organisations.

To build a JBP, we must first understand the characteristics involved.

What are the Characteristics of a JBP?

OUTLOOK: JBP is Strategic and long term in nature, focused on big-ticket items.
TIMELINE: Covers the term of the TTC between the DP / Producer, usually in annual buckets.
MANAGEMENT LEVEL: Agreement should be made at senior level, Producer CEO to DP CEO/Owner.
REVIEWS: Preplanned and diarised every three months, at senior level.
ROLES: The JBP will clearly define the role that the Producer plays, and the role the DP plays, across all business activities, including, for example, demand planning, order capture and fulfilment, demand creation, advertising and promotion, credit management, RtM execution and activation, etc.
TARGETS: JBP should set out the annual key numbers agreed in the TTC, including, for example, volume, profit, share, brands, launches, etc.
INVESTMENTS: There should be clarity on Producer / DP investments, front and back margin, incentives, etc.
DEFINED AREAS: There should be clarity on which areas a DP covers, e.g. nationwide, city-specific, or a certain zone, channels, key accounts, etc.
DATA: There must be clarity on the collation, exchange, management and reporting of data.
SERVICE LEVEL AGREEMENTS (SLA’s): This clearly defines the levels of service both parties expect.
CONTINUOUS IMPROVEMENT: The JBP embodies a philosophy of collaboration and a willingness of both parties to improve, train, and execute better to deliver joint success.

At this point, we should now have an agreed Joint Business Plan, a JBP focusing on long term goals. Now it is over to the Operational Management Team of both parties to develop the JAP, which should be operational in nature focusing on how to deliver the long-term goals of the JBP.

I will cover the definition and characteristics of the JAP in my next post.

What should you do now?

If you need specific help on any RtM issue, please reach out to me.
Use our 20 Steps to Route to Market Excellence model to guide you on your RtM journey.
Use the Enchange Supply Chain House to help with your Supply Chain Transformation.
As we always say at Enchange , NOW is the time to be reviewing, building and/or transforming your RtM Strategy and Execution to reap the rewards. Do not wait. Feel free to use our 20 Steps to Route to Market Excellence Implementation Guide to help you.

Tags: FMCG , Route to Market , Distribution , RTM , Ross Marie , RtM Strategy , 20 Steps to RtM Excellence

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FMCG DISTRIBUTOR MANAGEMENT
Distributor Management

What is FMCG and Why are FMCG Products Important?

HOW FMCG COMPANIES INCREASE THEIR PROFITS (1)

How FMCG Organization Increase Their Profits?

FMCG Distributor Management

FMCG Distributors play a very important role in establishing a brand in the market. They are the last mile connectivity to the market. To ensure that the distributors stay with the FMCG company and keep performing, they have to be managed well. In this blog we discuss the various aspects of FMCG Distributor Management. Our Online Training course on Distributor Management covers everything that you need to know about this topic.

FMCG Distribution Management can be divided into four major parts , for easy understanding of the content we are describing the classification below:

Company’s expectation from the distributor
Distributors’ expectations of the company
Managing distributor’s life cycle
Joint business plan

These categories are of importance and can help you in choosing which distributor to appoint and when to appoint.

1. Company’s expectations from a distributor

When a company gets a distributor then there are certain expectations that a company desires or wants from its distributor. Below is a list of some of the expectations.

Finances: This is the main requirement of a company from their Distributor. This includes the amount of fund required by the distributor to run the business.
Infrastructure: The company expects a complete infrastructure from their distributors to ensure good service to the market
Compliance with policies: Every company has certain policies in place for the smooth functioning of tasks, the expectation is that distributors respect these policies and be compliant with them.

All these expectations will be discussed in detail in the sales training program. Some of the other expectations are – Involvement in business, sales, services, etc.

2. Distributors' Expectations from the company

Just like companies have expectations from the distributors, there are certain expectations of the distributors from the company which should be met to create a win-win situation. Here we have mentioned a few of the major ones

Fast Moving Products: Distributors want to deal in products that has high demand and sells out quickly from the retail stores.
Healthy ROI: A Distributor is basically an investor who invests in a FMCG company to earn certain returns. A FMCG distributor expects high volumes along with higher returns.
Sales support: A distributor also expects sales support from the company and is mostly dependent on the company for such support.

Apart from these, there are other expectations also such as the quick resolution of the issues, these will be discussed deeply in the course.

3. Managing Distributors life

Managing a distributor’s life cycle consists of 5 key areas with each holding its key importance in the process.

Distributors profile: Before appointing the distributor, note down the desired profile of the distributor.
Distributor selection: There are several steps in the Distributor selection process. Following proper process helps in the right selection that is beneficial for both – Distributor and company.
Distributors operation: Setting up a distributor’s operation is important for enabling good and timely service to the market.
Distributor Induction: Proper Distributor induction is also very important as it sets the platform for desired results.
Distributor Evaluation: Periodic evaluation of the distributors helps in understanding the gaps and taking appropriate actions to improve performance.

Finally, distributor exit, all these will be explained in-depth in the online FMCG distributors training program for better understanding and action.

4. Joint Business Plan

This is a fairly new process in distributor management, it helps in getting the ownership of the Distributor. It has various sub-processes and formats.

Process : A step-by-step approach in making the Joint Business Plan should be adopted to ensure are key elements starting from business development to market servicing and basic market hygiene is taken care of.
Formats: The JBP format aids the FMCG company in executing it effectively.

This course is full of practical knowledge and execution tools that will help you in implementing the process in your daily work.

There are a whole lot of calculations involved in Distributors management which is tricky and tough to understand but with the guidance provided in the course module, one can easily access them and understand them better. For example, calculating distributors infra for business, ROI and many more.

If you have any queries or questions regarding DB management, then this course from skilltowill FMCG consulting company , is the best place to find answers and solutions. With a team of experienced professionals, skilltowill is committed to making every business venture a success. Having good DB management can help with increasing efficiency and reduction in operation costs.

If you are a company owner who has little or no knowledge about Distributor management then enrolling in this program can be your very first step. Handling Distributors carefully can make your company grow effectively while maintaining all the company values and policies.

skilltowill

FMCG Sales Training Program In India

IMAGES

FMCG Business model
EVERYTHING ABOUT FMCG BUSINESS PLAN’S
Five Step Sales Strategy Of Fmcg Company
Industry Analysis In A Business Plan
How To Create A Dynamic FMCG Marketing Strategy
Digital Marketing Strategies For the FMCG Industry to Accelerate Growth

VIDEO

FMCG
What Is FMCG Product Mix
FMCG Scheme Calculation
How to stay Updated with Market Trends and Competitors activity?
FMCG
Bakery business ideas

COMMENTS

Dynamic FMCG Business Plan
In addition, the FMCG business sector is anticipated to reach a 7 trillion dollar market size by 2025, which is tremendous. The FMCG industry is relatively easy to break into and succeed in, as long as one prepares a good FMCG business plan. The FMCG business sector, where margins range from 4% to 25%, is cited as having low margins by many.
A new model of value creation for the FMCG industry
To survive and thrive in the coming decades, FMCG companies will need a new model for value creation, which will start with a new, three-part portfolio strategy. Today, FMCGs focus most of their energy on large, mass brands. Tomorrow, they will also need to leapfrog in developing markets and hothouse premium niches.
Guide To Start FMCG industry: Business Ideas and Roadmap
So, the FMCG business presents a lucrative opportunity for entrepreneurs to enter and succeed in the market. ... A well-structured business plan is the foundation of any successful business. This plan should outline your business goals, strategies, and financial projections. It should also include a detailed marketing plan and a SWOT analysis ...
Sample FMCG Distributor Business Plan
Oil 6. Drinks 7. Detergent 8. Beans 9. Stationery 10. Bread etc. Here is a sample business plan for starting a FMCG retail company. Take Feasibility Study. Irrespective of where you reside, there is always an array of perfect business opportunities in FMCG sector for every location.
Strategic Pillars for the Future of FMCG
The industries are exposed to a drastic future with rampant innovations and discoveries. Hence, the five strategic pillars will support the FMCG industry in the next five years: Digitalization, Personalization, Sustainability, Deglobalization, and new business models. While working on your 2025 innovation roadmap, think about these five ...
A Beginner's Guide To Running An FMCG Distribution Business
5. Identify sales channels: Launching an FMCG distribution firm is no easy feat, but one critical aspect to consider is identifying your sales channels. This can make or break your business, as the way you sell your products can directly impact your revenue, customer base, and overall success. When it comes to FMCG products, there are two main ...
A Step-By-Step Guide to Set up a Company in the FMCG Sector
A 6-Step Guide to Set up a Company in the FMCG Sector. You can capitalise on the timely growth of the FMCG sector and set up a company by following a few simple steps. 1. Achieve Product-Market Fit. Thorough market research can help you identify your target customers and achieve product-market fit. Ask yourself who you want to sell to and where ...
Fast Moving Consumer Goods (FMCG)
FMCG Market Size. FMCG industries reached up to US$ 52.75 billion in FY18 and by the time of 2020, it rose to US$ 103.7 billion. With the sector of food items, hygiene, rural areas and health; the FMCG industries have grown with a 7.1% increase in the last 2 months of 2020. When the product demands increase in the rural sector, it brings out a ...
Fast-Moving Consumer Goods (FMCG) Consulting
The FMCG sector has an unmatched history of value creation performance—thanks to powerful brands, functionally superior products, and scaled operations. But slowdowns in global customer demand, multiple shifts in the customer landscape, and a loss of traditional scale advantages (due to new, digitally enabled models and the rise of e-commerce) have caused the sector to underperform since 2017.
How to Start an FMCG Business: 7 Success Guide
This is a step-by-step guide on starting an FMCG business: Research and Market Analysis. Before diving into the FMCG market, it's crucial to conduct thorough research. Identify your target audience, analyze your competitors, and gain insights into market trends. This data will serve as the foundation for your business plan. Business Plan ...
The 8 Step Guide to Drive FMCG Distributor Excellence
Ross Marié Delivers FMCG Sales Growth Route to Market Strategy Expert Transform Sales & Distribution Execution Global Consultancy 25 yrs+ Success For BAT, Diageo, Danone, Spectrum Brands, Glanbia ...
FMCG Company Business Plan
FMCG Company Business Plan Presentation . Business . Free Google Slides theme and PowerPoint template . Fast Moving Consumer Goods, or commonly known as FMCG is the term used to refer to those products with a short life by default made by continuous or seasonal mass production. If you work for a company for this kind of goods and you want to ...
FMCG Financial Templates
The FMCG Financial Model provides a framework to accurately forecast…. One of the most in-demand business is FMCG. If you are planning to capitalize your enthusiasm, make sure to invest in a financial model that would allow you to effectively plan, prevent risks, manage stocks and cash flows, and foresee your prospects for the next 5 years ...
How To Write A FMCG Business Plan
All FMCG StartUps should know how to write a FMCG Business Plan for their FMCG Company. It has a great impact on your FMCG Business and its growth. A FMCG bu...
FMCG Pitch Deck Guide (Best Pitch Deck Examples, Template And ...
In an FMCG pitch deck, the Exit Strategy slide is essential as it outlines how investors can realize returns on their investment. This strategy is a plan for the startup's founders and investors to cash out their equity and exit the business, typically through acquisition, IPO, or buyout by private equity firms.
Financial Model Template for FMCG
The FMCG Financial Model provides a framework to accurately forecast the financial statements of a FMCG company over the next 8 years. The model uses a detailed breakdown to estimate the company's operating assumptions on a per ton basis. The model then uses financial ratio analysis and contains a DCF valuation framework. This financial model ...
Startup Business Plan
Startup Business Plan - FMCG Distribution. If you dream to start an FMCG Distribution business, the template is the first step in making your dream into reality, it is constructed based on solid experience and highly analytical skills that will lead to guaranteed your success. 10-year Financial Projections, Break-Even, Budgeting, Business ...
Feed your FMCG business plan with accurate forecasting!
Wikipedia tells us that forecasting is "the process of making predictions of the future based on past and present data and analysis of trends. A commonplace example might be estimation of some ...
Go To Market Strategy
Market Strategy is an important part of FMCG Business plan. In FMCG sales training it is always mentioned that GTM lays the foundation for FMCG sales and fac...
Harness the Best in FMCG Distributor Execution
A Joint Business Plan (JBP) is a shared strategic document that provides a roadmap to delivering the elements agreed in the Trading Terms & Conditions (TTC) between the Producer and the DP. It is long term focused and should detail the joint ambition, and what each party needs to do to fulfil that ambition. One of the primary goals of any JBP ...
Harness the Best in FMCG Distributor Execution
A Joint Business Plan (JBP) is a shared strategic document that provides a roadmap to delivering the elements agreed upon in the Trading Terms & Conditions (TTC) between the Producer and the DP ...
FMCG DISTRIBUTOR MANAGEMENT
Process: A step-by-step approach in making the Joint Business Plan should be adopted to ensure are key elements starting from business development to market servicing and basic market hygiene is taken care of. Formats: The JBP format aids the FMCG company in executing it effectively.
10 Best Distributorship Opportunities in FMCG
FMCG revenue in India has grown at an astounding pace of 21.4% over the previous ten years. In 2018, India's FMCG market grew at 14.8%, the fastest in the Asia Pacific region. India was ranked first in the Asia-Pacific FMCG market average growth chart, followed by: Vietnam. Malaysia. China. New Zealand.