Tag: #products

Porter’s Five Forces Model

Porter’s 5 Forces Model is a business model and a tool which helps in identifying main competitive forces of an industry or a sector. The 5 Forces Model is mainly used to create a corporate strategy which will help a company to enhance its long- term profitability.

Understanding Porter’s Five Forces Model

The 5 Forces Model was created by Harvard Business School’s Professor Michael E. Porter and was published in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” in 1980. The model was created to explain why various industries are able to maintain varying level of profitability. Porter’s 5 Forces helps in analyzing the industry of the company so that a company can adjust their corporate strategy, boost their profitability and beat their competition.

What are the five forces of the Porter’s Model?

  • Competition in the industry
  • Potential of new entrants into the industry
  • Power of Suppliers
  • Power of Customers
  • Threat of substitute products

Competition in the Industry

For most industry, the level of competition in the industry determines the positioning of the product in the market. The intense the competition in the market, the more the company has to focus on innovation, marketing, price, etc. of the product. When the competition is less, a company has more authority to charge higher prices and establish the terms of deals in order to increase sales and profits.

Potential of New Entrants into the Industry

A company’s positioning is also affected by the new entrants in the market.  This in turn puts pressure on prices, costs, and the rate of investment needed to sustain a business within the industry. The less the time, money and effort it takes for a competitor to enter the market, more is the threat for a company to lose its market share. On the contrary, if there are strong barriers to entry in the industry, companies more secure about their market share.

Power of Suppliers

Power of suppliers in a market means how easily suppliers can increase the cost of the inputs. The suppliers’ power in the market is determined by the factors like number of suppliers in the market, uniqueness of the inputs they provide, cost of switching a supplier for a company. If the number of suppliers in an industry is less, a company would depend more on its current supplier, thus giving more power to supplier in terms of cost of inputs and other advantages in trade. However, if the suppliers are more in the market, then company has the advantage of switching the supplier in case the supplier increases the price or if a company finds a cheap supplier, thus keeping their input costs low and increasing their profitability.

Power of Customers

Customers are more powerful in an industry when there are less number of customers in an industry and more number of suppliers. Because the client base for a company is smaller and more strong, each customer has greater negotiating leverage to get better rates and deals. A company with a large number of smaller, independent consumers will find it easier to raise prices and increase profits.

Threat of Substitute Products

A substitute is a product or service that can be easily replaced with another by consumers. In economics, products are often substitutes if the demand for one product increases when the price of the other goes up. When there are no close substitutes in the market, a company can take advantage of charging higher prices. However, if there is availability of close substitutes, customers will switch to substitutes in case of increase of the prices of the products of a company.

Understanding Porter’s Five Forces and how they apply to a particular industry can help a company change its business plan to make better use of its resources and generate more profits for its shareholders.

Benchmarking

What is Benchmarking ?

Benchmarking is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The point of benchmarking is to identify internal opportunities for improvement. By studying companies with superior performance, breaking down what makes such superior performance possible, and then comparing those processes to how your business operates, you can implement changes that will yield significant improvements.

That might mean tweaking a product’s features to more closely match a competitor’s offering, or changing the scope of services you offer, or installing a new customer relationship management (CRM) system to enable more personalized communications with customers.

There are two basic kinds of improvement opportunities: continuous and dramatic. Continuous improvement is incremental, involving only small adjustments to reap sizeable advances. Dramatic improvement can only come about through re engineering the whole internal work process.

Liberalization and globalization have made the global market very competitive. Every Company of this global market needs to maintain its competitive advantage for long term survival. The cut-throat external competition makes it absolutely necessary for the companies to benchmark with similar organizations or organizations of different industry. 

Benchmarking is the measurement against defined standards, i.e., benchmark. It is essentially the setting up of principals of the best practices in relation to both products and the processes by which these products are created and delivered. It is applied by the senior management of a company, keeping in view :  

• The detailed existing business processes •Business processes of similar or different organizations.

• The analysis of comparison of the business performance with that of own past records and other organizations

• And finally, taking the necessary action to fill the performance gap, if any

Benchmarking should be an on-going process in any industry or organization. There are many types of benchmarking process that senior management applies in various departments depending upon the various scenarios. They could be Strategic Benchmarking which is used as a tool by the senior management to re-align those business strategies which have become inapt or obsolete. Or it could be the Performance or Competitive Benchmarking, Process Benchmarking, Functional Benchmarking, Internal Benchmarking, External Benchmarking, International Benchmarking etc.   

Almost every activity can be benchmarked. For example a banking company can benchmark on loan processing time from the competitor’s practices. A call center can benchmark on the reduction of number of dropped calls from one of its competitor. Or an auto ancillary industry can benchmark on reducing the number of defects from the quality practices adopted from the competitor. Be it any industry or any organization, benchmark is not only possible but also ‘need of the hour’.   

It is also important as it helps the senior management to chart the organizations performance. If you want to determine the effectiveness of your company, you will have to put together the in-house metrics that show the organization’s capabilities and improvements. If you want to prove your organization’s worth to the overall industry, you will have to use benchmarking to show how you are measuring up your efforts and effectiveness vis-à-vis similar efforts at other companies.  

The Indian organizations are becoming world class, both in terms of size and performance. Therefore, there is a greater need to become superior in performance consistently. Quality is becoming the hallmark for both products and services. Indian and multinational organizations are increasingly becoming quality conscious and try to deliver high quality products and services to customers.  

Quality delivery which was considered as the property of foreign companies like General Electric, Ford, General Motors, Xerox and AT & T had become the buzzword in many corporate circles in India as well. From Software major Infosys to Automobile giant Mahindra, from educational institutes like IIM’s and IIT’s to Steel manufacturing giants like TATA, everyone is adopting best in class technology, borrows and adopt best ideas, incubate and implement them as part of their corporate strategy.  

Even Indian Government considers Benchmarking as an important mechanism for introducing accountability in service delivery. Recognizing its importance, the Ministry of Urban Development, Government of India constituted a Core Group on Benchmarking under the chairmanship of Joint Secretary. This group has finalized a Handbook of Service Level Benchmarks, which provides –

(i) a common minimum framework for monitoring and reporting on service level indicators, and

(ii) guidelines on how to operationalize this framework in a phased manner.

Government of India has extended implementation support for the SLB framework in about 26 pilot cities so that they can serve as role models for other cities across the country. The Ministry of Urban Development, Government of India has formulated benchmarks for key performance indicators for water supply, waste water/sanitation, solid waste management and drainage to enable cities to measure and improve their own performance vis-à-vis the benchmarks. It is now well recognized that a sustained process of benchmarking comprising –

(i) developing comprehensive and dis aggregated baseline data on service levels

(ii) information system improvement to enhance quality of planning and

(iii) performance improvement plans to attain new standards , is critical  to ensure optimal use of investment and to sustain outcomes in service delivery.

Benchmarking enables urban local bodies to identify strengths and weaknesses in their own practices and to reach out and learn from the practices of others to achieve excellence in service delivery. It also increases accountability and transparency to citizens. Thus, the process of benchmarking, although very important, is very complex as well. It does require a great degree of systematic process review and constant control apart from flexible planning, detailed analysis, qualitative implementation, constant review and progressive change management.

Excellent Career in FMCG (Fast Moving Consumer Goods) Industry

Fast Moving Consumer Goods (FMCG) sector is characterized by strong MNC presence and a well established distribution network. In India the easy availability of raw materials as well as cheap labor makes it an ideal destination for this sector. There is also intense competition between the organized and unorganized segments and the fight to keep operational costs low. Due to this intense competition coupled with good enough growth in the sector, it requires huge number of human resource year on year. Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return.  

FMCG can broadly be categorized into three segments which are :  

• Household items as soaps, detergents, household accessories, etc,

• Personal care items as shampoos, toothpaste, shaving products, etc and finally

• Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.  

Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc. The burgeoning middle class Indian population, as well as the rural sector, presents a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. Rural demand is set to rise with rising incomes and greater awareness of brands. There are number of factors that will drive future growth in this sector. Increasing rate of urbanization, expected to see major growth in coming years will give a big push to this sector.

Moreover, rise in disposable incomes, will lead to premium brands having faster growth and deeper penetration. ​​​​​​​   Innovative and stronger channels of distribution to the rural segments are also giving a big push to this sector in terms of deeper penetration. Moreover, the icing on the cake is the increase in rural non-agricultural income and benefits from government welfare programmes resulting in increased purchasing power. Innovation in FMCG is a wide concept which aside from creating, launching and marketing new products also includes improving shopping processes, providing consumers with a range of tools to purchase products as also ensuring that the entire organization is focused on the singular goal of improving the customer’s overall experience. Therefore, in all functions like marketing, Finance, HR, IT, operations and strategy, there is a demand for talent by FMCG companies.  

As Indian consumers become more global in their aspirations and desires, as they travel abroad and are exposed to global products, their appetite to consume products in their home market will only increase. To meet this demand, FMCG companies need to focus on R&D and innovation as a means to grow the business. At the same time, product lifecycles are shrinking, companies across categories are launching new products, and the pressure to market new products, quickly, is strong. Due to these factors, FMCG companies recruit people at all levels including freshers from B-schools. As innovation becomes critical to the sector’s growth story, there is more demand for freshers as companies want to capitalize on their fresh ideas.

Working in FMCG gives you a chance to work with the biggest brands

A big benefit of working in the FMCG industry is that it is home for many of the world’s largest brands. Some that you might recognize and even have in your home include Heinz, Unilever, Procter and Gamble, Coca-Cola and Nestle. And so are their products. Having the opportunity to work for a brand that you like and use on a regularly basis can increase your job satisfaction and make you enjoy your work more.

Most of the job openings are from industry giants. Therefore, you have a great chance to enter one of the world’s largest companies. Whether you have always wanted the prestige of working for a market leader or you are just attracted to the perks of being employed by one of the world’s industry giants, FMCG can open those doors to you.

FMCG offers opportunities to have a global career

Most industries are concentrated in capitals and big cities. However, FMCG offers opportunities all over the globe for those who are interested. Not only does doing a traineeship in FMCG take you to at least two countries over the course of a year, but having a real job in FMCG can take you anywhere you want. FMCG companies are scattered worldwide and depending on the skills you would like to gain and the job you have, you can land anywhere between Sydney, Hong Kong, Berlin and New York.

AMUL – Anand Milk Union Limited

Anand Milk Union Limited, a brand so distinctively Indian has been a part of our lives for nearly five decades now and still is able to touch a chord in our hearts. Brand Amul has grown as a dynamic factor which protects the interests of producers and consumers of Indians and it is a symbol of many aspects of high-quality products sold at reasonable price, of the genesis of a vast co-operative network, of the marketing savvy of a farmers’ organization, and of a proven model for dairy development.

In 1946 the colonial government of Mumbai had the rights of the procurement of milk from the villages of Kaira district. The milk was to be supplied to the government for distribution in Mumbai. The firm, Polson dairy in turn appointed contractors for collecting milk from these villages. The farmers found the contractors entirely unreliable in collecting the daily milk supply and paying them what they considered to be unfair and insufficiently remunerative price. This state of affairs was not tolerated by the farmers; they retaliated and refused to supply milk. Hence they formed a co-operative under the guidance of Sardar Vallabhbhai Patel and Morarji Desai and eventually won the right to collect milk in the district and also sell it to the Government.

The co-operative was  started with an initial collection of just 250 liters a day. This was the beginning of the Kaira District Co-operative Milk Producers’ Union, which is now better known as AMUL which was formally registered on December 14, 1946.

Amul inspired ‘Operation Flood’ and credited to bring the ‘White Revolution’ in India. It began with two village cooperatives and 250 liters of milk per day and it distributes over a million liters of milk per day, collects and processes various milk products. By managing milk supplies from the cattle farmer and sending it straight to the factory, it’s been able to eliminate the middleman. Amul has become a symbol of the aspirations of millions of farmers.

With  ‘White Revolution’, we cannot ignore the remarkable contribution of Dr. Verghese Kurien who is better known as the “father of the white revolution” in India and his name is synonymous with the Amul brand. He is also called as the Milkman of India. For his outstanding input he has earned many accolades and awards that include: Ramon Magsaysay Award for Community Leadership, Padam Shri, Padam Bhushan, Krishi Ratna Award, Wateler Peace Prize Award of Carnegie Foundation and many more.  

The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is further federated into a Milk Federation at the State level. Three-tier structure was set up in order to delegate the various functions; milk collection is done at the Village Dairy Society, Milk Procurement & Processing at the District Milk Union and Milk & Milk Products Marketing at the State Milk Federation. Three-tier structure was first developed at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives.

The effects of Operation Flood Programme are more appraised by the World Bank. An incremental return of Rs. 400 billion annually have been generated by an investment of Rs. 20 billion over a period of 20 years. This has been the most beneficial project funded by the World Bank anywhere in the World. One can continue to see the effect of these efforts as India’s milk production continues to increase and now stands at 90 Million Metric Tonne.

 AMUL is recognised as the country’s largest milk producing cooperative. Based in the village of Anand, it expands exponentially. Originally marketed by the Kaira District Cooperative Milk Producers’ Union, Anand, it was taken over by the Gujarat Cooperative Milk Marketing Federation (GCMMF) in 1973 and further it joined hands with other milk cooperatives and now covers 2.12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF (Gujarat cooperative milk marketing federation ltd). 

Amul has a wide spread supply chain network across the country. Its products are available in over 500,000 retail outlets across Indian through its network of over 3,500 distributors. There are 47 storehouses with dry and cold warehouses to buffer inventory of the entire range of products.

Amul network follows an umbrella branding strategy i.e a common brand for most product categories produced like liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. AMUL is considered as India’s best known local Brand across all categories.

In fact, it is not just the core values at Amul that have remained the same; since long the core team associated with the brand is still the same. Even the advertising agency hasn’t changed, and Da Cunha and FCB Ulka, have played a pivotal role in the growth of Amul.

Amul’s unique marketing strategy is really surprising. Despite of the fact that in today’s business world advertising plays a vital role to marketing a product, Amul does not spend more than 1% of total turnover for marketing, compared with 7-8 % spent by most of food and consumer product companies. 

With top of mind  use of its jingle, Utterly Butterly Delicious and animated Amul girl, campaign- Amul brand has set a longest running advertising  Campaign and it is a world record that got registered its name in Guinness World Record and has won the many accolades.  Amul features in top 100 Brands of Asia.Competing with other international brands like Nastle, Dutch Lady, Dumex etc it has been ranked as the best and number one dairy brand from India. 

From a sales turnover of Rs 1,114 crore in 1994-95, Amul’s sales have risen substantially to Rs 9,774.2 crore in 2010-11. Amul is all set to fight in the global arena and has entered overseas markets such as Mauritius, UAE, United States of America, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries.

The Gujarat Cooperative Milk Marketing Federation Ltd. cannot be viewed simply as a business enterprise. It is an institution created by the milk producers themselves to primarily safeguard their interest economically, socially as well as democratically. Business houses create profit in order to distribute it to the shareholders. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. This circulation of capital with value addition within the structure not only benefits the final beneficiary – the farmer – but eventually contributes to the development of the village community. This is the most significant contribution the Amul Model cooperative has made in building the Nation.

Alpha Femme Keto Genix

“The greatest wealth is health”. Being healthy means an overall sense of wellbeing; it includes feeling fit physically, mentally and emotionally. Obesity and overweight are two such issues which affect a person in all three areas. Excessive weight not only makes you less confident, it also is a threat to your healthy well being. A whole lot of medical problems are associated with excessive pounds. Its like obesity has a variety of hidden opportunistic diseases stuck with it. Being obese affects your life at the personal front too. You feel less confident about yourself, your body and in adverse cases begin to question your existence. Many people experience severe bullying due to being overweight which affects their mental peace and disturbs their life.
Obesity and overweight isn’t an untreatable problem. A good amount of exercise and follow up with a balanced diet can help you get rid of it. However, in today’s time people are more busy making money to fulfil their expenses. Its natural and obvious for them to not find time to devote to working out or preparing healthy diets. Fast foods are an easy choice for such work oriented people. Such people are the most vulnerable ones.
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Working
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