50219179 Rural Marketing Final Ppt

8/4/2019 50219179 Rural Marketing Final Ppt

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LG SAMPOORNA TV

NOKIA 1100

AMRUTANJAN

HUL BREEZE 2-IN-1

HUL PURE-IT [A WATER PURIFIER BRAND]

TATA NANO

Product Strategy


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Case 1: Amrutanjan

The Vice President ofAmrutanjan, Easwar Das, during his visit to the rural

market observed a customer walk into a small retail store and ask for one rupee

ofAmrutanjan. He noted with surprise that the retailertook a scoop from the

Amrutanjan pain balm bottle and transferredit to a small leaf and handed it tothe customer. On enquiry with the customer, Das discovered the customer to

be a loyal ofAmrutanjan as it helped her to sleep well after a days hard

labour. She earned daily wages and she could not afford to buy a bottle of

Amrutanjan.The company developed a small round tin pack inserted in a small

transparent plastic pouch to prevent leakage. The customer also derived value

from the tin pack as it was reused to store items like kum kum, etc.


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Case 2: Nokia 1100

Nokia 1100 has so penetrated in to the rural market. Nokia had to stop its

production of 1100 because as its own product has become its toughest

competitor. Nokias low-end cell phones are used as radios, alarm - clocks and

flash lights by the rural customers.

Strategy: digital convergence at the bottom of market


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LG TV

1998, LG launched its first low priced TV for rural consumers

-Sampoorna- Rs.3000

-Cineplus- RS 4900

LG Electronics launched a customized TV sampoorna. A more important

aspect of customization is to make TV set which can appeal to local needs, it

facilitated on screen display in vernacular language like Hindi, Tamil and

Bengali. selling 1,00,000 sets in the very first year.

Strategy: thinking locally, succeeding globally


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Awareness Promotion

-Mobile Van

-Exhibition

-Road Show


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SBI BANK

SBI branches have covered a whole gamut of agriculturalactivities like crop production , horticulture , plantationcrops, farm mechanization, land development andreclamation, digging of wells, tube wells and irrigationprojects, forestry, construction of cold storages andgodowns.

SBI is setting up Agri Commercial Branches (ACBs).

SBI also have an effective Marketing team in each regionwith responsibilities for marketing and building

relationships with dealers of agri-products, organizingpromotional events and for loan sanction, processing andmonitoring.


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DAIRY PLUS SCHEME- Owners of small dairy with less than 10 milch animalsand owning a minimum of 0.25 acres for every 5 animalsLoan amountUp to Rs.2 lacs per borrowerUp to Rs. 50,000 100 % finance is given.Above Rs. 50,000 - 85% finance is given.

Sahayog Niwas: SBI has launched its Housing Loan product SAHAYOGNIWAS. Under the scheme formulated keeping the socio-economic conditions ofvillages in sight, housing loans to the extent of Rs.50,000/- are given to the ruralpeople without any mortgage of house / land. Response to this product is veryencouraging.

SBI LaghuUdhyami (SLUCC)

(A Credit Card Scheme)Nature of facility:Term loan or as an overdraft, not exceeding Rs.10.00 lakhs with good trackrecord.At 11% per annum interest rate.


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CAVINKARES CHIK SHAMPOO P&G PRICE CUT STRATEGY

BRITANNIA TIGER BISCUITS

NESTLS MAGGI

MARICO PARACHUTE

NIRMA

MC DONALDS

Pricing Strategy


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Case 1: Cavinkares Chikshampoo

Cavinkare launched Chik in 50 paise sachets. Cavinkare targeted rural and

small town customers who used soaps to wash their hair. it became the market

leader in the rural markets with over 50% market share. It create a sachet

revolution.

Strategy: low unit price packs. (LUP)


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Case 2: P&G price cut strategy

P&G in 2004 started price cut strategy in their detergent brands. P&Gs

increase in the market share was more at the cost of the low-priced detergents.

There was a 200% increase in Tide after the price cut.

Strategy: bring in the required Economies of Scale which would lead

to profitability.


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Case 3: Britannia Tiger biscuits

Britannia also tasted success because of small affordable

packaging ofTiger biscuits it is specially design to the rural market, its

helping the poor become consumers.

Strategy: lowprice strategy is begun to appeal target segment


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Case 4: Nestls Maggi

Nestles rural initiatives have largely been based on

Price-led initiatives. Brand such as Maggi noodles are

priced at Rs.5. It helped Nestle in making in roads in to

rural market.

Strategy: small pack- lower price


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Case 5: Marico Parachute

Marico launched parachutemini a bottle shaped small pack being sold at an

MRP of RS.1, 20 ml parachute a RS 5 that enables loose oil users ad to

parachute.

Strategy: consumers to trail out the products with very littlerisk


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IDEA CELLULARCOCA COLA

HUL LIFEBUOY

MRF BULLOCK CART TIRES

GODREJ

HUL VIM

HUL SURF

DABUR CHYAWANPRASH

Promotion Strategy


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Case 1: Idea cellular

Ideas aggressive promotion campaigns what an idea sirjee

ad creates a real rural feel came through Strong advertisement.

Strategy : spreading a social message each one has aimed at the

changing someones life for better


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Case3: HUL Lifebuoy

HUL launched a direct rural contact program called

Lifebuoy Swasthya Chetana campaign, made sales goes up by 20% in 17,000

villages.

Strategy: lifebuoy has always been positioned on the platform of health

and hygiene


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Case 4: MRF Bullock cart tyres

MRF introduced nylon tyres for bullock carts with real life Pahalwans. MRF

use the communication through wall paintings in villages association with the

muscleman symbol, (i.e. Pahalwan= Muscleman) The result was that the MRF

bullock cart tyres became the brand leader in this segment .

Strategy: Rural consumers

understands symbols better

and looks for endorsement byicons


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COCA-COLA

HUL

Distribution(Place) Strategy


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Case 1: Coca Cola

Coca -Cola is a pioneer company in distribution network. Coca-Cola has

evolved a hub and spoke distribution model for effectively reaching and

serving rural markets. Coca-Cola provides low-cost ice boxes to the small

distributors in rural areas because of the lack of the electricity.

In this marketing strategy a wake up call

for cokes rural focus.

Strategy:Coke is available where,even water is not available


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Case 2: HUL

Hindustan unilever, the pioneer and a large player in Indias FMCG market.

HUL is the first company to step into the Indian rural marketing. HULlaunched operation stream line, distributed HULs products in villages usingunconventional transport like bullock carts, tractors and cycles. Today HULsproducts touch the lives of two out of every three Indians.

Strategy:HUL product can reach a place, where you can not reach


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HERO HONDA

Hero Honda is chosen overother product because of its theeasy availability of spares andauthorised mechanics. As aresult, in the resale market, itcommands a premium overrivals. This makes Hero Honda

a preferred brand. Customers can travel over long

distances to buy a motorcyclebut not for service. A customercan take his motorcycle forservicing four or five times a

year. Many of these touch points can

start as a service centre andover time become a sale centre.


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CONTINUED

Thus, the company decided toramp up rapidly its touch pointswith customers - showrooms,service centres and so on. From2,000 in 2006, the number hasrisen to 3,500 in 2010. company

plan is to add at least 500 everyyear. Most of these will be servicepoints.


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BSNLBSNL attempt to capture the rural Indian population, BSNL, the

largest Broadband service provider in India has thrown out

scheme called Rural USO 99 where users in Rural areas would

get 2Mbps high speed broadband connection for a mere Rs.99

per month. This of course isnt unlimited. With this Rs.99 plan

users would get 400MB of Data per month.
http://www.bsnl.co.in/http://www.bsnl.co.in/


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E-CHAUPALS

ITC launched a project e-chaupal for increasing village connectivity andtapping the untapped rural market.

These e-chaupals are small units set up to help farmers.

Each unit has Rs2 lakh infrastructure including a computer ,phone line and ups

to logging on to the internet.

A room of medium level farmer usually serves as e-chaupal.

A farmer is called sanchalak who provides free information about the prices

and demand for agriculture produce in different mandis for a commission,when a farmer sell his produce to itc.

The number of e-chaupals have increased to 1700 in 26 districts.

Under its e-chaupal project itc has decided to open rural malls.


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ITC opened a rural mall- chaupal sagar at Rafiqgunj near four kilometers ofsehore town in Madhya Pradesh.

Chaupal sagar is first rural mall in India stands on 8 acres of land with ashopping area of 7000 square feet, set up with a cost of 4.5 crores.

The farmers can buy soaps, detergents and toothpaste, almost everything theyneed for the family including TVs, DVD players, pressure cookers, roomheaters, watches, sewing machines and grinders and, of course, cigarettes.Motorbikes or even tractors are also available. The company is marketing anew range of clothing and shoes too for the rural customers.

This plan is very ambitious as from start in oct2004 the daily sales in first week

was already 70000-80000 which is not bad as a business proposition too.

RURAL MALL BY ITC


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CONTINUED(RURAL MARKET)

The idea is to create a one-stop destination for farmers. A diesel pump, a cafeteria and a soil-testing laboratory are also coming up and

so is a sale point for fertilizers, pesticides and other agro-inputs. A bank, aninsurance company office and a training centre for farmers will complete theset-up.

If Chaupal Sagar set up at a princely cost of Rs4.5 crores succeeds then ITCintends to open 5 another rural malls.

Under second phase of its e-chaupal project itc is going to open another 30rural malls across India.

The idea needs a close watch and the government should be wise enough to

support the entrepreneurs.


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Conclusion

Rural market has an untapped potential like rainbut it is different from the urban market so itrequires the different marketing strategies andmarketer has to meet the challenges to be successfulin rural market.


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Documents

50219179 Rural Marketing Final Ppt