Strategies adopted by various companies to penetrate into Rural India.

1. RURAL MARKETING STRATEGIES
CASE STUDIES
Submitted by -
Athulya Nair D08
Bhawana D10
Priyanka D45
Shweta Singh D59

2. FMCG - Dabur
CEO: Mohit Malhotra (1 Apr 2019–)
Founder: S.K. Burman
Founded: 1884
Headquarters: Ghaziabad
Revenue: 8,989 crores INR (US$1.3
billion, 2020)
Subsidiaries: Dabur Research
Foundation, H&B Stores Ltd. etc
Industry: Consumer goods
Products
● Personal care
● Skin care
● Hair care
● Oral hygiene
● Health supplements
● Drinks
Subsidiaries of
Dabur

3. Dabur’s business structure
Consumer Care Division
(CCD)
● Dabur (Ayurvedic)
● Vatika - Premium hair
care
● Hajmola - tasty
digestives
● Real fruit juices
● Fem - bleaches and
skincare
Dabur Honey - market
leadership (over 75%)
Dabur Chyawanprash - 65%
Hajmola tablets - 60%
Consumer Health Division
(CCD)
Traditional formulations
● Asav Arishtas
● Ras Rasayanas
● Churnas
● Medicated Oils
International Business
Division (IBD)
Brands - Dabur and
Vatika
Spanning middle East,
North and west Africa,
EU and the US

4. Rural marketing strategies
Conventional Strategies
Promotion Strategy
● TV Commercial
● Radio
● News Paper
● POP display
● Wall painting
● Contest in Melas or Haats
● Video vans
● Sales Promotion
● Word of mouth publicity
Distribution Strategy
● Dealer
● Whole Seller
● Agents
● Retailer
● Kirana Store
Regional Branding strategy
● Launching products with a regional twist
It launched Dabur Lal Dant Manjan as Sivappu Pal Podi
in South India while Dabur Red Tooth Powder in North
India

5. More Interesting strategies
Social Initiatives and
Campaigns
● Health camps in school
focusing on immunity
● Beauty pageant - Dabur
gulabari Miss fresh face
● Unique branding and
sampling initiative at
Nauchandi Mela
○ Dabur Pudin hara
lemon fizz
● Sanifresh the toilet
cleaner brand – “700 se 7
kadam”
CSR Initiative
Swalambh
● vocational training
program.
● three key areas of
Sales, Merchandising
and Promotion.
● conducted in
association with the
Rural Development and
Self-Employment
Training Institute
(RUDSETI)
Technical Integration
Project Double-
● used digitised maps &
electronic data and came
up with list of specific
villages to target.
Dabur uses Astra to boost
rural sales
● ASTRA- Advanced Sales
Training for Retail
Ascendance
● Shopkeepers - learn
marketing through role
plays
● Five languages: Bengali,
Tamil, Telegu, Malayalam
and Kannada

6. Gujarat Cooperative Milk Marketing Federation (GCMMF) - Amul
Founded: 14 December 1946
CEO: R.S. Sodhi (30 Jun
2010–)
Customer service: 1800 258
3333
Headquarters: Anand
Revenue: 38,550 crores INR
(US$5.4 billion, 2020)
Founders: Verghese Kurien,
Tribhuvandas Kishibhai
Patel

7. Three tier “Amul Model”

8. AMUL Advertisements
4-A Principle
● Affordability
● Availability
● Awareness
● Acceptability

9. Strategies to support rural retailing and farmers
● Pricing Strategy - Smaller Packs - Rs 10 packs for
milk, ghee and other dairy products
● Advertisements on akashvani, hoardings posters
● Establish telecenters and enhanced technology in
villages
○ Purchase of the milk that member farmers
produced
○ Sell liquid milk at affordable prices
○ Develop and deliver services to improve the
lives of people in the network
○ Hire professional managers to run the
federations
● Direct Linkages between producer and consumer
○ Milk Producers (farmers) control procurement,
processing and marketing
● Amul initiated in developing rural retailers by
insurance against natural calamities
● Provide best price to the member farmer for the milk
produced
Dairying as a tool for Poverty
Alleviation
Collaboration on Govt’s Swarnjayanti
Gram Swarozgar Yojana on their special
project on “Improving Socio-economic
conditions of BPL Families of Kheda
district through Animal Husbandry and
Dairying.
Impact
➔ Socio Economic empowerment
➔ Exclusivity
➔ Presence
➔ Trust factor
E Initiative
● Implementation of GIS
(Geographic Information System)
- tracking the movement at milk
collection centers
● Establishment of the dairy
Information and service kiosk

10. Amul’s super Amazing absolutely relevant Ads

11. Coca Cola
CEO: James Quincey (1 May 2017–)
Industry: Beverage
Founder: Asa Griggs Candler
Founded: 29 January 1892, Atlanta,
Georgia, United States
Headquarters: Atlanta, Georgia, United
States
Subsidiaries: Minute Maid, Costa
Coffee, Coca-Cola India,
Revenue: US$37.27 billion (2019)

12. Rural Marketing Strategies
• In early 2002, CCI launched a new
advertising campaign featuring leading
Bollywood star Aamir Khan
• The advertisement with tagline- ‘Thanda
matlab Coca- Cola’ was targeted at rural &
semi urban consumers
• The idea was to position Coca-Cola as a
generic brand for cold drinks
• CCI began focusing on the rural market in
the early 2000s in order to increase volumes
Availability
Affordability Acceptability
CCI’s rural marketing strategy
was based on three A’s

13. Availability
• CCI entered the rural market, it focused
on strengthening its distribution network
there
• It realized that the centralized
distribution system used by the company in
the urban areas would not be suitable for
rural areas
• In the centralized distribution system,
the product was transported directly from
the bottling plants to retailers
• CCI realized that this distribution
system would not work in rural markets, as
taking stock directly from bottling plants
to retail stores would be very costly due to
the long distances to be covered
• The company instead opted for a hub and
spoke distribution system
● Under the hub and spoke
distribution system, stock was
transported from the bottling
plants to hubs and then from
hubs, the stock was transported
to spokes which were situated
in small towns
● These spokes fed the retailers
catering to the demand in rural
area
● CCI not only changed its
distribution model, it also
changed the type of vehicles
used for transportation
● The company used large trucks
for transporting stock from
bottling plants to hubs
• Medium commercial vehicles
transported the stock from the hubs to
spokes
• For transporting stock from spokes to
village retailers the company utilized
auto rickshaws and cycles
• Company spokesperson said, “We use
all possible means of transport that
range from trucks, auto rickshaws,
cycle rickshaws and hand carts to even
camel carts in Rajasthan and mules in
the hilly areas, to cart our products
from the nearest hub

14. Availability
In late 2002, CCI made an additional investment of Rs
7 million Rs 5 million from the company and Rs 2
million from the company’s bottlers to meet rural
demand
• By March 2003, the company had added 25 production
lines and doubled its glass and PET (POLYTHYLENE
TEREPHTALATE) bottle capacity
• It also distributed around 2,00,000 refrigerators to
its rural retailers
• It also purchased 5,000 new trucks and auto
rickshaws for boosting its rural distribution
• Through its rural distribution initiatives, CCI was
able to increase its presence in rural areas from a
coverage of 81,383 villages in 2001 to 1,58,342
villages in August 2003

15. Affordability
CCI decided to make some changes in the size of its bottles and
pricing to win over consumers in the rural market.
• It was also found that the price of Rs 10/- per bottle was
considered too high by rural consumers.
• For these reasons, CCI decided to make some changes in the size
of its bottles and pricing to win over consumers in the rural
market.
• In 2002, CCI launched 200 ml bottles (Chota Coke) priced at Rs
5.
• It was widely felt that the 200 ml bottles priced at Rs. 5
would increase the rate of consumption in rural India
• The 200 ml bottles priced at Rs. 5 would also make CCI
competitive against local brands in the unorganized sector.
• CCI also targeted the rural consumer aggressively in its
marketing campaigns, which were aimed at increasing awareness of
its brands in rural areas

16. Acceptability
• The initiatives of CCI in distribution and pricing were
supported by extensive marketing in the mass media as well
as through outdoor advertising
• The company put up hoardings in villages and painted the
name Coca Cola on the compounds of the residences in the
villages
• CCI also participated in the weekly mandies by setting up
temporary retail outlets, and also took part in the annual
haats and fairs
• CCI also launched television commercials (TVCs) targeted
at rural consumers
• CCI increased its ad-spend on Doordarshan
• The company ensured that all its rural marketing
initiatives were well-supported by TVCs.

17. Mahindra tractors
CEO: Rajesh Jejurikar (1 Apr
2013–)
Founded: 1962

18. About
● Bulldozers were imported for land reclamation and
cultivation in mid1940s.
● In 1947 central and state tractor organizations were
set up to develop and promote the supply and use of
tractors in agriculture.
● Local production began in 1961 with five
manufacturers (Eicher, Gujarat Tractors, TAFE,
Escorts, M&M) producing a total of 880 units per
year.
• Mahindra & Mahindra is the leading
player in the industry.
• The US $6.7 billion Mahindra Group is
among the top 10 industrial houses in
India.
• Mahindra & Mahindra is the only Indian
company among the top tractor brands in
the world.
• The US based Reputation Institute
recently ranked Mahindra among the top
10 Indian companies in its Global 200:
The World's Best Corporate Reputations
list.
• 42% of Indian Farmers using tractor
prefer M&M.

19. Rural Sales Promotion Strategies
Sales Promotion Strategies
● Good communication and
customer relations service
● Gifts to loyal customers
● Participation in marketing
fair in rural areas
● Free service coupon warranty
● Fuel check up camp
● Regular service camps -
invite tyre, battery, fuel
injection and other component
suppliers to participate.
Marketing Strategies
● Twice a week to after-sales service
● availability of spare parts
● The engine was an instant hit - easier
to service, since locals were very
familiar with the Mahindra Jeep engine.
● Claiming itself India's No. 1 Tractor
manufacturer.
● Excellent mileage
● Farmer's choice, of tractor size
● Tractor Finance for Agricultural
Purposes by Kotak Mahindra
● Model names and tags suiting rural
India

20. Campaign
“Har Gaon, Har Aangan”
● Penetration in Rural
Market- 10%
● 500 Sales
Representatives
● Covered 100,000
villages
● Average sales -
16000 bikes per
month.
“Har Jahag” - service
centre
“Sikho Baliye” - persuade
women to learn motorbikes
● Awareness camps
● Health check ups
(free services)
● Driving license -
consultation, safe
riding classes
Product
Differentiation
Targeting the need of
rural customers and
requirements according
to area.
● Simple light model
● Maintainability
● Cost effective
● Tools and services
easily available
Product - different
Splender models
“Waves” - used Rural
footprint study
Touchpoints - to reach
out 3500 till 2010
(outlet selling and
servicing the bikes)
Promotion
Advertisements -
● TV:Doordarshan
Cricketers
● Local Magazines
● Local Newspaper
Go local - Demographic target
by regions: targeting villages
according to their local
beliefs and values.
Role plays, shows
Including locals into sales
executives, provide jobs
Tie ups with cooperative banks
- easily accessible finance,
new schemes
CSR Activities
Integrated Rural
Development Centre -
employment and provide
skill set courses
Adopted villages within
vicinity of factory at
Dharuhera - Roads,
Clean water, education
Raman Munjal Vidya
Mandir, Memorial
Hospital, Sports
complex - Schools
Senior secondary, 1200
students and 61
teachers, sports
equipments, playgrounds
Hero motocorp - Rural STRATEGIES

21. Jio Reliance - Rural strategies
Launched: Reliance industry 40’ AGM July 2017
Sales: 70 million,
Market share:
38% of market till oct-dec 2018,
Feature phone market grew 11% in 2018
Democratize internet access in small towns and rural areas overnight
High Speed data - While urban India gradually went from 2G to 3G to 4G, rural India skipped those
stages. They got high-speed 4G internet straight from nothing

22. Jio - Reliance
Availability: Jio product in each and every villages and towns in both Urban and Rural area.
Simple Model: easy to assisible for those who are uneducated.
Advertisement: aggressive marketing strategy including launching ad campaigns on television, radio, newspapers,
magazines, and social media platforms like Instagram, Facebook, Twitter, youtube, but what really enhanced it was
“word of mouth”
Pricing strategy : Low and minimum price to get hold and attract new customers (Rural)
Connectivity: Creating demand and providing the most required thing in the rural area, easy and cheap connectivity,
a network. Opened a window for digitalization in rural area.
Overnight announcement : They launched the product overnight and created new demand. When people start buying, the
numbers was increasing and multiplying day by day, which created fear for losing the great opportunity, the
scarcity of supply.
Zera “0” Rupee Product: The most required product for a person is mobile, providing the mobile in 0 rupees. Book
for 1500 which will be refundable. To lure people who didn’t even need mobile and to give habit of it.
Free entertainment platforms: Jio phone has given access to unlimited JioMusic, JioCinema, JioTV at any time at any
place in their hand (Mobile).
Easy and affordable switch to new platforms: Upgrad product, Jio cables were easily connected to JioPhones to any
TV set (Old CRT TVs)
Sachet sales, small sample offers to know the product and its uses: Providing small data and top up packs for 20-30
rupees for day or weekly offers.

23. Accenture Research Report, Masters of rural markets: Key enablers to enhance
efficiency of rural market

24. Banking Industry
1. HDFC Bank’s “Festive Treats” and “Har Gaon Hamara”
Rural Campaigns
This service facilitates access to a vast range of products, at a faster turnaround time, with the
convenience of our digital platforms. Customers can connect with us by dialling a toll-free number
and sharing their PIN code. The nearest banking outlet is automatically mapped, and a bank
representative immediately reaches out to them to address their needs.
Under this programme, a gathering of 30-40 villagers is organised to provide financial literacy and
take our products and services to their doorstep at the most competitive price. So far, we have
covered more than 22,000 villages and engaged with 4.6 Lakh customers

25. Different Product innovations by hdfc
1.25 Lakh Villages
covered by Kisan
Gold Card for farm
loans
8 Lakh Dairy farmers
to be covered under
Milk-to-Money in 2-3
years
12 Kisan Dhan Vikas
Kendras set up to
improve livelihood of
farmers
4.6 Lakh Rural
customers met under
‘Har Gaon Hamara’
programme

27. LG- Rural STRATEGIES
Product
Distribution
Vans across the
country, covering a
distance of 5000 km
every month, to
increase brand
awareness among the
trade and the
customers
Product
Innovation
● New Products
regularly
● 03 year of
operations(1998-
2001), it launched
70 models across a
range of products
Price : Products were priced
as high as Japanese products.

29. Asian paints
Unique way of marketing:
Painting the houses of Mukhiyas 6 months before
product launch.
Marketing via influence and word of mouth.
Use of refill packs or recyclable and reusable
packs to offer low prices.