With the onset of liberalization, consumers had many products to choose from both, domestic and imported goods. This phase lowered trade barriers and encouraged MNCs to invest in the country. Earlier, many business organizations did not find the need to spend highly on the level of effort, energy and time on the `strategy' part of compensation management, as they did in areas like selling and marketing of products and services. One major reason for this is that the results and gains of strategic compensation management are difficult to measure and are intangible. Today, it is a necessity for the organization to use compensation management as a strategic tool. The objective of the article is to review and understand the different compensation management policies and practices at various FMCG.

India has always been considered a haven for FMCG products simply because of the population of the country. India is the second most populated nation in the world. There has always been presence of leading global players in the country. Most of the fresh investment into FMCG market has been around the year 1980. With declining purchasing power and government explicit support to regional players, the extent of fresh investment into FMCG dried up in India. Many leading players had an urban approach to their operations, with limited focus on the huge rural market. This changed with the entry of certain local players. Taking a cue from local players, more and more companies are launching the `value for money' products to target the lower stratum of the society. At the same time, the government's relaxation of norms encouraged companies to exploit the benefits of scale to make FMCG products.

With the onset of liberalization, consumers had many products to choose from—sboth domestic and imported. This phase lowered trade barriers and encouraged MNCs to invest in the country. The growth in standard of living prompted companies to extend their product offerings all through the price-value equation. In this process, many existing customers upgraded themselves to users of premium products.

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