Overall growth of the economy has increased. Rural marketing is confused with agricultural marketing . The saturation of the urban market . Rural marketing strategies are different from the marketing strategies of urban.
Client and location specific promotion Joint or cooperative promotion.. Bundling of inputs Management of demand Developmental marketing Unique selling proposition (USP) Extension services Business ethics Partnership for sustainability
Market size Purchasing power of consumers Major players Marketing Rising incomes and demographics shifts spur sales Focus on innovation and price-segmentation Mounting aspirations and an upbeat economy herald a bright future positioning
Non – availabilty of effective refrigeration in rural areas and access to fresh food and essential drugs. Entry level refrigerators in India are priced at USD 156, way above the budget of tier II, III and IV customers. The needs and requirements of rural consumers was a portable refrigerator.
Chotukool by Godrej and Boyce, is a portable affordable refrigerator designed to meet the requirements of rural consumers. To be launched in 2011, touted as world’s cheapest refrigerator at USD 69 by Godrej and Boyce. Co-Designed with village women to assure its acceptability, and distributed by members of a micro-finance group. The number of parts in the Chotukool refrigerator is 20, almost ten times less than other refrigerators which have more than 200 parts.
Since ChotuKool is so unique, Godrej needed to evolve a new business model to fit the market. Inn sight suggested options for a new kind of financing plan and low-cost distribution system that generates profits. Moving beyond a single-state test market, Godrej is now in the process of expanding distribution using community networks. The result is an innovation with impact. Godrej & Boyce is on pace to sell 100,000 ChotuKools in only its second full year on the market. The early success of ChotuKool led to Godrej being named Indias most innovative company of the year by Business Standard magazine in a ceremony conducted by the nations Prime Minister. Business Week and Fast Company also named Godrej one of the worlds "most innovative companies."
Currently, the refrigerator is being test marketed in a few selected villages in Maharashtra. The refrigerator, worth Rs 3,500, will be launched in March 2010.
MARKET OFFERING -- ChotuKool is not the only reason it can be called super economical.- The portable, top-opening unitweighs only 7.8kg- Uses high-end insulation to stay cool for hours without power- Consumes half the energy used by regular refrigerators.- Chotukool is 43-litre cool box
Godrej Group is aiming for a unique position in the market in terms of pricing and features. The company has also found the right distribution channel before rolling out the product. are using the ambit of such groups to penetrate the rural market. These groups also help us to make the customers aware about the product better than any other medium. Local men and women in villages are thus being roped in as entrepreneurs, who sell ChotuKool in their villages at a pre-decided commission. A tie-up with India Post that helps Godrej sell its products through post offices too has been helping the company build a fair coverage in villages where there are no retailing alternatives.
Chief operating officer, George Menezes, of Godrej thinks, Godrej has had an edge over others in decoding the rural folk A vada pav vendor in a Maharashtra village started selling chilled drinking water pouches from the refrigerator on his cart. a flower vendor in Karnataka, where Godrej has just taken the product, saved herself daily trips to buy fresh flowers from another market. ChotuKool is also making inroads to Tamil Nadu. It may also be taken to Gujarat soon.
Kind of people-- People having Pucca houses are targeted by Godrej (they of the view that can afford to shell out Rs. 3500/-.- Small time vendors like Vegetable vendors, fruit vendors, flower vendors, mobile cold drink owners etc- Shopkeepers & drugists who requires cool place to store few items
Portable, top-opening unit weighing only 17.2 Ibs, has a capacity of 30-40 liters. Uses high-end insulation to stay cool for hours without power and consumers half the energy used by regular refrigerators. Does not have a compressor instead running on a cooling chip and a fan similar to those used in computers and run on a battery.
• Virtual platform between company and distributors • Comprehensive business Intelligence enables in depth primary and Project Sampark secondary sales analysis • Intensified rural approach, Presence in all locations with over 10000 population Increasedpenetration • 130 super stockiest, 2450 sub stockiest • Focus on availability of all products at all 600,000 outlets Retail • Focus on modern retailing thrust
Events- Advertising– Billboard – Hoarding – Wall painting – Electronic media – Print media - Sales promotion. relied heavily on the mass advertising like on the TV, radio, and newspaper Conducted the events in which the rural people have the interest. Some of the events are navratna, yaara nachle, gold awards in Mauritius etc
Quality Policy Value for money product Distribution network Brand image Promotional edge Innovation strategy Strong product line