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    marketing-innovative-strategies-effects-fmcg-companies-in-india-rural-regions marketing-innovative-strategies-effects-fmcg-companies-in-india-rural-regions Presentation Transcript

    • MARKETING INNOVATIVESTRATEGIES EFFECTS ON FMCGCOMPANIES IN RURAL MARKETSPresented By:-KIRAN RAMDAS SINALKAR10/366AKASH BALASAHEB SHELKE10/365
    • INTRODUCTION The scope for the FMCG in Rural market is fast growing. There are nearly 6,38,000 villages in INDIA. Of these only 0.5% have the population above 10,000. And 2% of the population between 5,000 to 10,000. 50% of the villages have a population below 200. At least 75 per cent of the male working population engaged in agriculture and allied activities would qualify as rural. 70% of the total population live in rural India. From this it becomes clear that the rural India is the best market ever for the FMCG in the country.
    • SOME OF THE FAST MOVINGCONSUMER GOODS IN INDIA
    • FMCG COMPANY’S FOCUS ON PRODUCT INNOVATION Many FMCG companies a large chunk of their revenues up to about 60 per cent comes from new product launches. Companies like Dabur, ITC, Britannia Industries, Nestle and Amul HUL, ITC, Nestle, Procter & Gamble and GlaxoSmithKline Healthcare account for almost 70 % of FMCG revenues in the country spend almost 10 % of their turnover on advertising and brand promotion. They market their brand through heavy expenditure on brand promotion, advertisement and a proper marketing channel. The promotion strategy includes tying up with Bollywood actors and other celebrities, brand ambassadors to advertise and promote their products.
    • DABUR’S BRAND AMBASSADOR MR AMITABH BACHAN
    •  Marketing and advertising differs from region to region, there cant be a single strategy for the whole of India, as one marketing strategy will not work in other region as there might be a total disconnect in terms of the whole concept or an ad or the strategy. And especially if one is placing a product targeted at the rural consumers, here also it is a different ball game altogether.
    • NIRMA PRODUCTS - A BREAKTHROUGH IN INDIAN RURAL MARKET
    • STRATEGIES OF NIRMA NIRMA is considered to be one of the leading brand which used various innovative techniques to capture the rural market. It introduced various small budget consumer goods to attract the rural consumers. They targeted mainly on the third class consumers to marker their products. They introduced toilet soaps, detergents and other consumer attractive goods at a low cost. They were considered one of the toughest competitor to Unilever India ltd.
    • UNILEVER INDIA – RURAL MARKETING INITIATIVES
    •  HLL derived around 50% of its sales from rural areas. HLLs rural marketing initiatives began way back in 1988, when the company had launched Wheel for the rural and lower income urban consumer. As a competition to the NIRMA products they introduced Wheel to demolish the market of NIRMA and to capture the rural market.
    • HLL’S CLINIC PLUS SHAMPOO HLL introduced Clinic Plus. They made the rural people to understand the product by demonstrating its uses to the people in public. They made the people understand the effect of using shampoo and they demonstrated how it makes the hair smooth.
    • RETAILER AND DISTRIBUTION NETWORK AND WITH INNOVATIVE MARKETING STRATEGIES The two major Cola brands Coca-Cola and Pepsi apart from their usual battle over market share have been trying hard to enter into rural markets. They have come up with many marketing strategies such as pricing, distribution strategies etc, like providing ice boxes, refrigerators, credit facilities etc. They provided small bottles apart from 1 liter bottles to attract the low income groups. They both used a good effective distribution channel to make the product available in the rural consumer markets.
    • TINS AT A MUCH CHEAPER RATE
    • BRAND-BUILDING ACTIVITIES AND COST-REDUCTION SPUR SALES IN THE FMCG SPACE Almost 50 per cent of the FMCG companies cited earlier reported a double digit growth in sales. Companies like P&G, ITC, Tata Tea, Dabur, Marico, GlaxoSmithkline, Gillette and Godrej recorded good top line growth. This is because of the various techniques they used to develop their products according to the rural consumers needs. They adopted various new technologies to out run their competitors. They concentrated more on the product diversification.
    • NEWLY DIVERSIFIED PRODUCTS UNDER FMCG SECTOR
    • COLGATE Colgate-Polmolive India Ltd, which makes oral care and personal care products kept expenses down by reducing its stock keeping units or SKU. They also diversified their products. Colgate herbal, Colgate Salt, Colgate white, Colgate gel and much more.
    • BRITANNIA INDUSTRIES LTD They increased their net profit by 10.0% after entering in to the rural markets. They increased the price of their products by 5% to 7%.
    • DABUR INDIA LTD AND NESTLE INDIA LTD OTHERS They focused to reduce their operational cost by reducing their cost they spend on the purchase of the raw materials. Godrej Consumer Products Ltd focused on reducing the cost by organizing a good supply chain management process and selecting a better and a cheaper mode of transport. Wipro Ltd provided the consumers with a reduction in the weight of the products at the same price thus improving their margin of profit.
    • CONCLUSION From all the above informations it is clear that the rural India can be one of the most feasible market for the development of the FMCG in INDIA. FMCG’s companies or marketers make consistent attempts to innovate tools and strategies to overcome the challenges the face in the business area. Corporate India and government bodies alike have made several efforts to bridge the gap between rural and urban India. Thus if planned properly and with the use of new strategies and technologies the rural India market can be captured and a great margin of profit can be earned by the FMCG companies.