Post on 03-Apr-2023
FMCG Market ofPakistan
• Rapidly Growing
• Double DigitGrowth
• 2016 PKR 450Billion
• Average 15% Growth over theyear
• Considerable increasein growth after2010
ü Usage of Internet
ü Opening of IMTs &LMTs
ü Changing Lifestyle&
Different Shopping
Experience
Pakistan-TradeLandscape
Pakistan Urban Semi-Rural/RuralOutlets 290,000 360,000Outlet Buysfrom Distributor/wholesaler Nearest urban town
Assortment Wide – all categories Strong/Established Categories -LUPs
Company Direct Sales* 95% 5%*These are distributor sales to trade and do not reflectconsumption
Urban Channels
General Stores
Kiryana Stores
Wholesale Medical / Gen Med Stores
Self-Service/MT
Others*
% of Universe
48% 14% 4% 11% 0.2% 23%
Sales Contributi
on**
36% 11% 21% 10% 18% 4%
StoreCount FLAT FLAT FLAT* Others: Pan/cigarette shops, tea stalls, juice corners andHoreca** Of major FMCG companies. For pharma companies, 100% contribution comes through the MSchannel
Strata1 Strata2 Strata3 Strata4 Strata5& 6
2Towns
Population
(6 m+)72,000Outlets
34%Population
10Towns
Population
(0.5mto6m)
65,000Outlets25%
Population
53Towns
Populatio n
(0.1mto 0.5m)65,000Outlets21%Population
73Towns
Populatio n
(50k to0.1m)
42,000Outlets10%
Population
239Towns
Populatio n
(5k to50k) 46,000Outlets10%
Population
20%of population and 30% of outlets in 312towns
80%of population and
70% of outlets in65 towns
Pakistan-Urban GeographicSplit
RTMStructure
Modern Trade(IMT, LMT,
TER)
Self ServiceStores
Pharmacies (MS, GMS)
Wholesale
General Stores(GS,KS,Others)
Distributors
SelfService Stores
Pharmacies(MS, GMS)
Wholesale
GeneralStores (GS,KS,Others)
SubDistributors
Institutional Distributors
Company
USC/CSD
InstitutionalSupplies
▪Female/male
, looking to stock-up; mainly SEC A &B
▪Looking for a
safe, comfortable,pleasurableexperience
▪Operateswith a list but likes to comparison shop
▪Experimenta
l – wants to explore new categories
▪Shopswith c
reditcards/cash
▪Expectsbarg
▪Motivatedby
ains/value
width of product mixavailable
▪Trusts thequ
▪Oftenforms
ality of thestore
a relationship of trust with storeowner
CHANNEL & SHOPPER – Modern TradeStores (2000sqft+)
Modern TradeStore
Consumers
Modern TradeStore
Consumers
AssortmentWide variety of FMCG categories including imported personalcare and food products
Trend Creating sub-categories
Format Self Service with trolley/baskets
Location Main bazaar
Categoryorganization Developed
Display possibilities Primary, Secondary +Activations
Characteristics Check-out cash counters manner by owner/staff
Motivated by Counter-part basedrelationships
Demand cycle Regular Service – twice a week
Paymentsto distributor Operates on credit
SecondarySupply Source Wholesale
Pricing MRP but discounts main categories
Channels Introduction
LMT• Local Modern Trade (Chain Stores, Cash & Caries)
IMT• International Modern Trade (Hyper, Metro)
USC• Utility Stores Corporation of Pakistan ( Ministry of
Industries)
CSD• Canteen Stores Department (Ministry Of Defense)
Retail• Retail Sales Sector through Distributions and
Shops
National: 770OutletsNumberof Towns:25
South• 297Outlets
• 30% Contribution• Number of Towns:4
Central• 341 Outlets
• 53% Contribution• Number ofTowns:
12North
• 132 Outlets• 17% Contribution• Number of Towns:9
75% contribution in MT
CSD• 10 Shopping Mall• 109Outlets
USC• 50 Shopping Mall• 4650 Small Store• 1100Franchises
10% contribution in MT
Channel Introduction
Commenced Operations in Pakistan in the year 1971.
Total Turnover exceeded PKR 70 Billion.
Main business is commodities.
Branded segment sales cont 40-45%
Main shopper mission :Subsidized purchases of Commodities.More than 6000 Outlets
Turning Into Local Modern Trade
Visual Representation of USC operated outlets vs USC Franchises
523
429
434
605 64
2
785
322
606
420
86
216
46
187 22
3
148
18
82
12
ABT ISB KCHI LHR MLTN PSWR QUITA SRGHA SUKH
Main Franchise
ChannelObjectives
ChannelObjectives Modern Trade General Trade
Penetration √ √
Merchandising √ √
Activations √
JBPs/Counter parts √
1919191919
Objectives MT GT
Penetration •OSA•MSL – ProfitMax
•Credit•Dedicated servicing model
•FCSimplementation•MSL - ‘Star’SKUs•Strengthening RTM•DSRIncentives/TPRs
Merchandising •Shelf dress-ups•Planograming
•SecondaryPlacements
•Product Placement• (POSM)
•HangerDisplays•Counter branding•Display drives
Activations •CPs•Shopper Intercepts
Market Storms
JBPs/Counter parts
•Target Incentives•Shelf rentals
•AdvertisingAllowances•Negotiation Skills
•Disproportionate ShelfShare
• Robust MIS System• Building relevant capability for meeting channelobjectives
KeyDrivers
PenetrationCategories Defined
Stock Depth onShelves
Wide Range ofAssortment
Merchandisers
Twice a week in LMTs & Twice a Day Shelf Filling in IMTs
ActivationsConsumer Promotions
Shopper Interceptions
Shopper Engagement
Live Testing – Free Set up
Wet / Free Sampling