Fmcg Companies in India
An excerpt from our report in India quoting recommendations from analysts and marketing strategists on how FMCG companies should deal with the drought.
Fmcg Companies in India
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In our previous blog posts on this topic, we talked about how drought would affect the market and the challenges faced by FMCG companies. We also have a longer analysis in our executive report ‘Impact of Drought on FMCG in India‘ which you can download.
FMCG companies in India have not yet felt the impact of the drought on their performance this year. In the recently-declared results for the June 2012 quarter, leading companies such as Nestle India, Godrej Consumer, Marico and HUL, grew net sales between 10.8% and 39% year on year, while their net profit grew between 15% and 112%. Analysts at brokerage houses pointed out that they benefited from strong volume growth, coupled with earlier price hikes.
Recently, the ‘Business Standard’ newspaper pointed out that the impact of a weak monsoon would be felt only later in the second half of calendar year 2012, when the impact on farm output and rural income and demand would be clear. “There is always a lag effect in FMCG,” said Kaustubh Pawaskar, FMCG analyst at Sharekhan. Apart from drought relief measures, media reports indicated that the government may allocate additional funds for the MGNREGA to provide a measure of security to rural incomes.
Analysts and marketing strategists suggest that as the rural economic situation evolves, FMCG companies may have to take the following into account:
As Jagdeep Kapoor, managing director, Samsika Marketing Consultants, told MSLGROUP India: “FMCG companies should not get overly perturbed by an expected drought. They need to be aware of the emerging developments in the broader environment, but try and go about business as normally as possible.”
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In our previous blog posts on this topic, we talked about how drought would affect the market and the challenges faced by FMCG companies. We also have a longer analysis in our executive report ‘Impact of Drought on FMCG in India‘ which you can download.
FMCG companies in India have not yet felt the impact of the drought on their performance this year. In the recently-declared results for the June 2012 quarter, leading companies such as Nestle India, Godrej Consumer, Marico and HUL, grew net sales between 10.8% and 39% year on year, while their net profit grew between 15% and 112%. Analysts at brokerage houses pointed out that they benefited from strong volume growth, coupled with earlier price hikes.
Recently, the ‘Business Standard’ newspaper pointed out that the impact of a weak monsoon would be felt only later in the second half of calendar year 2012, when the impact on farm output and rural income and demand would be clear. “There is always a lag effect in FMCG,” said Kaustubh Pawaskar, FMCG analyst at Sharekhan. Apart from drought relief measures, media reports indicated that the government may allocate additional funds for the MGNREGA to provide a measure of security to rural incomes.
Analysts and marketing strategists suggest that as the rural economic situation evolves, FMCG companies may have to take the following into account:
As Jagdeep Kapoor, managing director, Samsika Marketing Consultants, told MSLGROUP India: “FMCG companies should not get overly perturbed by an expected drought. They need to be aware of the emerging developments in the broader environment, but try and go about business as normally as possible.”
parveezmodak: "@msl_group: What are the latest trends in #communications and #PR? Watch interviews of our thought leaders on http://t.co/Z0OOnRS2"#fb">#fb">http://t.co/Z0OOnRS2"
reply | follow parveezmodakmsl_group: What are the latest trends in #communications and #PR? Watch interviews of our thought leaders on http://t.
reply | follow msl_groupBlumen_Group: RT @pbeucler: People's Insights Volume 1, Issue 40: Coke Zero - Unlock the 007 in You by @msl_group on @slideshare http://t.
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