Suresh Venkataraman is a marketer in southern India who wants to launch a new cosmetic brand called Super Shampoo targeted at the rural market. He analyzes factors like the large untapped rural consumer base, and rising incomes. His strategy is to offer shampoo sachets at an affordable Rs. 1 price point through wide distribution networks. He believes the "more for less" strategy along with promotional techniques like word-of-mouth advertising can help make Super Shampoo successful despite a limited budget by targeting the large rural consumer segment of over 101 million households.
2. 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.
3. FMCG Facts In India
Household Care Laundry, Soaps &
detergents, floor
cleaners etc.
Personal Care Oral care(tooth
paste/tooth powder
& tooth brushes),
Hair Care(hair oil,
Shampoo)etc.
Food & Beverages Cereals, Bakery
products, tea,
coffee, dairy
products.
Source: www.ibef.org
4. 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
5. Power of “S”
Invention of sachets
“revolutionized “ the
FMCG market.
It opened B2C untapped
market in rural areas.
Unaffordable products
became affordable for
common people.
Luxury comes in “Sachets”.
Reduced overall cost.
6. 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%
7. Affecting Factors
POLITICAL
1. Transportation and infrastructure ECONOMICAL
development in rural areas helps in
distribution network.
1. The FMCG sector is a 4th largest
sector of Indian
2. SEZ policies in rural
areas
SOCIAL
PEST
1. Rural employment
TECHNOLOGICAL
2. Volume-driven growth in rural
market. 1. Technology has been simplified and
available in the industry.
3. Major young population can
increase revenue . 2. Foreign players helps in high
technological development.
8. Analysis
STRENGHTS WEAKNESS
1. Low operational costs 1. Lower scope of investing in
technology and achieving economies of
2. 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
10. 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.
11. 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.
12. 5th P- Packaging
Costly bottles.
Help in reducing cost.
Attractive Packaging.
Easy recognition.
Easy to carry & transport.
13. Conclusion
“Value for Money”
proposition
Success Supported by
Super
distribution penetration
Shampoo “Word-of Mouth”
Sachet publicity.
More for less strategy.
“Win-Win” situation.