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Rural Marketing

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Rural Marketing

  1. 1. Rural Marketing of Cosmetics Presented by: Roopam Goyal
  2. 3. Introduction <ul><li>Overall growth of the economy has increased. </li></ul><ul><li>Rural marketing is confused with agricultural marketing . </li></ul><ul><li>The saturation of the urban market . </li></ul><ul><li>Rural marketing strategies are different from the marketing strategies of urban. </li></ul>
  3. 4. Strategies of Rural Marketing <ul><li>Client and location specific promotion </li></ul><ul><li>Joint or cooperative promotion.. </li></ul><ul><li>Bundling of inputs </li></ul><ul><li>Management of demand </li></ul><ul><li>Developmental marketing </li></ul><ul><li>Unique selling proposition (USP) </li></ul><ul><li>Extension services </li></ul><ul><li>Business ethics </li></ul><ul><li>Partnership for sustainability </li></ul>
  4. 5. What should Co.s keep in mind to get success in rural market? <ul><li>4A Approach: </li></ul><ul><li>Availability </li></ul><ul><li>Affordability </li></ul><ul><li>Acceptability </li></ul><ul><li>Awareness </li></ul>
  5. 6.   Rise of Indian Beauty Market <ul><li>Market size </li></ul><ul><li>Purchasing power of consumers </li></ul><ul><li>Major players </li></ul><ul><li>Marketing </li></ul><ul><li>Rising incomes and demographics shifts spur sales </li></ul><ul><li>Hindustan levers lead remain unassailable </li></ul><ul><li>Focus on innovation and price-segmentation </li></ul><ul><li>Mounting aspirations and an upbeat economy herald a bright future </li></ul><ul><li>positioning </li></ul>
  6. 7. Introduction to Godrej Consumer product ltd. <ul><li>GCPL is a major player in the Indian FMCG market with a leadership in personal, hair, household and fabric care segments. </li></ul><ul><li>The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi (H.P.) </li></ul>
  7. 8. GCPL Product Portfolio <ul><li>Soap – Cinthol – Evita – Godrej No. 1 – Fair Glow </li></ul><ul><li>Toiletries – Cinthol Talc – Godrej No. 1 Talc </li></ul><ul><li>– Fair Glow cream </li></ul><ul><li>– Godrej shaving cream </li></ul><ul><li>– Cinthol perfumes </li></ul><ul><li>Hair care – Godrej hair color dye – Renew woman hair dye – Nupur hair dye – Color soft hair color </li></ul>
  8. 11. Godrej no.1 soap <ul><li>Godrej No.1 soap was launched in 1922. </li></ul><ul><li>This 86-year-old brand enjoys a volume market share of 6 per cent. </li></ul><ul><li>It is the 5th largest selling soap in the country and tops in Punjab/Haryana with a 20 per cent market share. </li></ul><ul><li>Godrej No. 1 soap rely on below-the-line promotions, and for the past 5 years it has been selling at a 3+1 free offer in the market. </li></ul><ul><li>In 86 years, the brand has spent less than what a major soap brand would spend in a month of heavy promotions (Rs 12-13 crore), according to the company. </li></ul>
  9. 12. Godrej Rural Marketing Strategy (Godrej No. 1 Soap) <ul><li>Godrej introduced Godrej No.1 soap enriched with natural ingredients trusted by millions, the flagship brand of GCPL, is now the largest selling Grade 1 Soap. </li></ul><ul><li>Grade 1 is the highest standard laid down by the (BIS). Godrej introduced it in competition with the Santoor, Breeze. </li></ul><ul><li>Godrej in the initial stage introduced it as a mid segment soap but after sometime it’s price was reduced and targeted to the rural area. </li></ul><ul><li>Variation strategy: introduced many variants to extend the product line of soap. </li></ul>
  10. 13. Godrej No. 1 Talc and shampoo <ul><li>100 Gms at Rs, 19/- </li></ul><ul><li>300 Gms at Rs 39/- </li></ul>Quantity Bottle Sachet 100ml Rs 25 - 7 ml - Rs 1 3.5 ml - Rs.50
  11. 14. Distribution Strategy <ul><li>rural sales contribute one-third to the company's sales with the balance coming from the urban market. Godrej Soaps' total income was Rs 787 Crore in the fiscal 1999-2000. </li></ul><ul><li>has set up a committee to improve and leverage distribution in the rural markets of less than 5,000 population strata. </li></ul><ul><li>The company has put in place three experiments </li></ul><ul><li>carried out certain experiments in the below 10,000 population strata rural markets to leverage distribution. </li></ul><ul><li>The company has already set up a system of stockiest and super stockiest in small towns with population of 10,000 plus </li></ul>
  12. 15. Distribution and Supply Chain
  13. 16. Promotional tools used by GCPL <ul><li>Events- Advertising– Billboard – Hoarding – Wall painting – Electronic media – Print media - Sales promotion. </li></ul><ul><li>relied heavily on the mass advertising like on the TV, radio, and newspaper </li></ul><ul><li>Conducted the events in which the rural people have the interest. Some of the events are navratna, yaara nachle, gold awards in Mauritius etc </li></ul>
  14. 17. Sales Promotion
  15. 18. Promotional strategy <ul><li>GCPL has roped in Mona Singh of Jassi jasissi koi nahi to be the brand ambassador </li></ul><ul><li>“ All that Glitters is not Gold…All soaps are not Grade 1 soaps.” </li></ul><ul><li>campaign educates people the advantages of using Grade I quality soaps that produce more lather, last longer and thus is a great value-for-money proposition. </li></ul><ul><li>Godrej Soaps and Jassi both stand for the Sachchi prakritik sundarta proposition </li></ul>
  16. 19. GCPL-Competitive edge <ul><li>Quality Policy </li></ul><ul><li>Value for money product </li></ul><ul><li>Distribution network </li></ul><ul><li>Brand image </li></ul><ul><li>Promotional edge </li></ul><ul><li>Innovation strategy </li></ul><ul><li>Strong product line </li></ul>
  17. 20. LIFEBUOY <ul><li>the world’s largest selling soap. </li></ul><ul><li>Launched in the year 1895 </li></ul><ul><li>In 2002 Lifebuoy was relaunched, marking a new turning point in its history </li></ul><ul><li>The new Lifebuoy is targeted at today’s discerning housewife </li></ul><ul><li>Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now milled toilet soap with a new health fragrance. </li></ul>
  18. 21. Lets see the 4 P’s of marketing of lifebuoy in rural India…..
  19. 22. RE P OSITIONING <ul><li>it is the single largest soap brand — with 20 lac soaps sold every day and an estimated value of Rs 500 crore (600 million users annually). </li></ul><ul><li>The relaunch of the 107-year-old Lifebuoy has been done in a bid to drive growth in a sluggish soap market. </li></ul><ul><li>HLL challenged everything that Lifebuoy stood for - perfume, formulation, size and shape. </li></ul><ul><li>extending it to talcum powder and also testing a herbal variant of this power brand. </li></ul>
  20. 23. P ROMOTION <ul><li>TV and print campaigns , focused attention on the family health themes. </li></ul><ul><li>conducted consumer education exercise using &quot;Germ tests“. </li></ul><ul><li>explored the communication options during World Health Day. </li></ul><ul><li>created The Lifebuoy Swashthya Chetana. </li></ul>
  21. 24. <ul><li>HLL was also offering cross company product mixes </li></ul><ul><li>HLL used Mahakumbh mela as an opportunity to change hand-washing and bathing habits in rural India. </li></ul><ul><li>Cinema van operations </li></ul>
  22. 25. P RICE <ul><li>Hindustan Lever Ltd (HLL) currently on a price discount includes 150 gm Lifebuoy Gold (Rs 3 off), </li></ul><ul><li>HLL is also expected to follow suit with its Surf sachets </li></ul><ul><li>HLL have deliberately introduced small pack sizes. </li></ul><ul><li>Lifebuoy, HLL's largest selling soap brand, recently introduced a Rs 2 SKU (stock keeping unit) of 18 gm targeted at the rural market in the Bimaru States. </li></ul>
  23. 26. P LACE <ul><li>70% of India's population resides in villages </li></ul><ul><li>HLL has established a single distribution channel by consolidating categories </li></ul><ul><li>HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockiest. </li></ul>
  24. 28. <ul><li>Fair and lovely sachet costs Rs.10 </li></ul><ul><li>Brand extension – “active sunblock” lotion costs </li></ul><ul><li>Rs.30 for 25ml & Rs.60 for 50ml </li></ul>PRICE
  25. 29. FAIR AND LOVELY FOUNDATION <ul><li>Economic empowerment of women </li></ul><ul><li>Careers </li></ul><ul><li>Enterprise </li></ul><ul><li>Education </li></ul>
  26. 30. Education <ul><li>Scholarships are awarded annually to deserving young girls. </li></ul><ul><li>For higher education in India – Graduation, Post-graduation and PhD </li></ul><ul><li>Rs.100,000 scholarship is meant for women “with an aptitude and ambition to achieve their goals” </li></ul>A. Background
  27. 31. B. Communication Goals <ul><li>“ Reliance Communications’ R World” platform </li></ul><ul><li>Did not include the traditional media – TV & Print to break free from the clutter of traditional medium </li></ul><ul><li>Entice the user to fill in personal details after sharing the Scholarship and Fair & Lovely Foundation information. </li></ul>
  28. 32.   C. Media Solution & Execution <ul><li>1. Banner Advertising </li></ul><ul><li>2. Fair & Lovely Scholarship Zone </li></ul><ul><li>3. SMS Blast </li></ul><ul><li>4. IVR </li></ul><ul><li>5.  Short Code </li></ul><ul><li>6. Reliance Mobile World Website </li></ul>
  29. 33. D. What Makes the Idea a Winner
  30. 34. Emami <ul><li>FLAGSHIP COMPANY OF EMAMI GROUP </li></ul><ul><li>PERSONAL BEAUTY AND HEALTHCARE BUSINESS </li></ul><ul><li>MANUFACTURES THROUGH AN EFFECTIVE LEVERAGE OF AYURVEDA </li></ul>
  31. 35. ACTIVITY DESCRIPTION <ul><li>PARTNERED WITH NGO’S AND BANKS </li></ul><ul><li>OFFERS TWO TYPES OF SELF EMPLOYMENT SCEMES </li></ul><ul><li>- EMAMI MOBILE TRADERS </li></ul><ul><li>- EMAMI SMALL VILLAGE SHOPS </li></ul><ul><li>OFFERINGS OF THE SCHEMES </li></ul>
  32. 36. BENEFITS TO RURAL <ul><li>SPECIALLY TRAINED SELF – HELP GROUPS </li></ul><ul><li>MARKET SELF MADE PRODUCTS </li></ul><ul><li>SUPPORT SMALL SCALE MANUFACTURES IN RURAL INDIA </li></ul>
  33. 37. MARKETING STRATEGY <ul><li>THROUGH SALES - 11000 MOBILE TRADERS, 2200 SMALL VILLAGE SHOPS </li></ul><ul><li>COLLABORATIONS WITH ITC e-choupals </li></ul><ul><li>CONSISTENT GROWTH BY POWER BRANDS </li></ul>
  34. 38. Growth Strategies <ul><li>CELEBRITY ENDORSEMENT </li></ul><ul><li>LAUNCHED FIRST ADVERTISING COMPAIGN </li></ul><ul><li>NEW LAUNCHES </li></ul><ul><li>LEVERAGING ITS AYURVEDA ORIGIN </li></ul><ul><li>GOOD DISTRIBUTION NETWORK </li></ul>
  35. 39. REASONS FOR SUCCESS <ul><li>SEASONAL DEMAND </li></ul><ul><li>KEY FACTOR FOR SUCCESS </li></ul><ul><li>ENTER OTC MARKETS </li></ul><ul><li>INNOVATIVE PACKAGING </li></ul><ul><li>OUTSOURCING </li></ul><ul><li>WIDE NETWORK FOR DISTRIBUTION </li></ul>
  36. 40. <ul><li>entry in cold cream market </li></ul><ul><li>natural goodness of time tested ingredients </li></ul><ul><li>innovative and quality skin care product </li></ul><ul><li>target customers </li></ul><ul><li>research and development </li></ul><ul><li>packaging and pricing </li></ul>
  37. 41. Experience the five fold goodness of Emami Malai Kesar Cold Cream – the perfect non greasy cold cream - and face the winter with a soft and glowing skin.So, go on! Khul ke ....khilo <ul><li>Promotion – create awareness , educating retailers </li></ul><ul><li>Disribution – 3.5 lakhs retail outlets </li></ul><ul><li>Type of demand – seasonal </li></ul><ul><li>Reason for success – association with ayurveda based products </li></ul>
  38. 42. <ul><li>Introductuon </li></ul><ul><li>Media exposure </li></ul><ul><li>- increased literacy level </li></ul><ul><li>Indirect increase in disposable income </li></ul><ul><li>Rural youth </li></ul><ul><li>- evolving as opinion leaders </li></ul>
  39. 43. TIPS FOR MARKETING BRANDS IN RURAL INDIA <ul><li>Close to the heart of rural people </li></ul><ul><li>pricing has to be value for money </li></ul><ul><li>issues and solutions to it </li></ul><ul><li>- pricing </li></ul><ul><li>- promotion </li></ul><ul><li>- distribution </li></ul><ul><li>- brand </li></ul>
  40. 44. ETHNIC ROUTE <ul><li>Identifying specific values in a cultural context </li></ul><ul><li>Identifying certain beliefs </li></ul><ul><li>Combining elements of specific culture </li></ul><ul><li>Capturing a sense of nostalgia </li></ul><ul><li>Using stereotypes </li></ul><ul><li>Identifying specific cultural traits </li></ul>

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