Introduction Suresh Venkataraman a successful marketer in Southern part of India. He was Fascinated by the power of consumer products in “ Rural Market”. He decided to launch a new cosmetic product with a brand named “Super Shampoo” He wanted to make this brand successful but with limited fund.
Bharat Vs India Emerging INDIA Mission 101.1 Income Per Year Households (in Millions) Target low to reach on top. Less than Rs 101.1 Still deprived of luxury 90,000 goods. Rs 90,000-Rs 91.3 200,000 First “BHARAT” then Rs 200,000-Rs Rs 10.8 “INDIA”. 500,000 Want less for more. Rs 500,000-Rs 2.4 1,000,000 More than Rs 1.2 1,000,000 Source: "The Marketing Whitebook," BusinessWorld, 2007-08
Power of “S” Invention of sachets “revolutionized “ theFMCG market. It opened B2C untapped market in rural areas. Unaffordable products became affordable for common people. Luxury comes in “Sachets”. Reduced overall cost.
Market Leader In Hair Care Clinic All Brands Used Other Clear Pantene 1%Sunsilk 3% 1% 3% Chik Clinic Plus 31% 39% Head & Shoulder 22%
Affecting Factors POLITICAL1. Transportation and infrastructure ECONOMICALdevelopment in rural areas helps indistribution network. 1. The FMCG sector is a 4th largest sector of Indian2. SEZ policies in ruralareas SOCIAL PEST1. Rural employment TECHNOLOGICAL2. Volume-driven growth in ruralmarket. 1. Technology has been simplified and available in the industry.3. Major young population canincrease revenue . 2. Foreign players helps in high technological development.
Analysis STRENGHTS WEAKNESS 1. Low operational costs 1. Lower scope of investing in technology and achieving economies of2. Established distribution networks in scale. both urban and rural areas. 2. Low exports levels 3. Presence of well-known brands in 3. Counterfeit Products. FMCG sector. SWOT OPPORTUNITIES 1. Untapped rural market THREATS 2. Rising income levels 1. Slowdown in rural demand 3. Large domestic market-. 2. Tax and regulatory structure 4. High consumer goods spending
Analysis of 4P’sProduct Price Place Promotion Packaging
WHY SUPER Shampoo? Product Price Super shampoo will be 1Rs shampoo to target lower based on “Shikakai”. income group. Characteristics of producing “More for Less” Strategy. more foam. 50% more for 1Rs. Jasmine Essence Competitive Price comparing with other brands.
Continue….. Place Promotion Untapped “rural market”. “Super” the name itself. 160million households. Retailers are the biggest Major player of economic promoters growth. Following “Word-Of- Business of around US$ 425 Mouth” Strategy. million. Indirect Advertisement by others.
5th P- Packaging Costly bottles. Help in reducing cost. Attractive Packaging. Easy recognition. Easy to carry & transport.
Conclusion “Value for Money” propositionSuccess Supported bySuper distribution penetrationShampoo “Word-of Mouth”Sachet publicity. More for less strategy. “Win-Win” situation.