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Recently Airtel has been squirming in their seats post the soft launch of Reliance Jio. Many of the members of Airtel Management Team have admitted that Reliance will cause a disruption in the market and telecom industry is heading for an overhaul. This condensed presentation discusses a way forward and an overview of things to come in the sector.
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He discussed alternative models through market segmentation and targeted distribution and also highlighted the role of the end consumer in the distribution chain.
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Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
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By Rv Rajan
is an Advertising professional with over 45 Years experience, out of which he have been associated with Rural Marketing and Communication for over 35 years.Hes now the Chairman, Anugrah-Madison Advertising, Chennai
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Rural Marketing is unexplored area that offers lot of potential in today's changing landscape of rural India. I try to explore aspects of rural segmentation, targeting and positioning
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In this workshop, Vernie explored various product distribution models for Rural markets. He discussed ways of building a last mile distribution network, managing relationships & partnerships, training and cultivating the supply chain up to providing comprehensive after sales service. While presenting the roadblocks and challenges that can (and have) upset this kind of distribution, he pointed out the ‘low hanging fruits’ that can be leveraged.
He discussed alternative models through market segmentation and targeted distribution and also highlighted the role of the end consumer in the distribution chain.
Presentation by Vernie Sannoo
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Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
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2. Demographics Shopping
Behaviour
Collectivism
•Farmers or Agri
workers
• Limited education.
• Family structure
• Unit price is critical.
• Paisa vasool paradigm
• Cost per dose
equation
• High-volume
purchases at Haats
• Inter-personal
acquaintance
• Social norms
• Enjoy social
gatherings
• Free time chatting
• Follow opinion
leaders
Who is the rural consumer?Who is the rural consumer?
3. Highlight multiple uses from the same product
-Work/ Home Chores/ Children Studies/ Cattle rearing
- Portable feature of the light.
A little (of the product) goes a long way
-One time investment results in long term return
The rural consumer is sensitive about being portrayed as poor
-Don’t do it!
- Play on their aspirations instead
Fantasy, Song & Dance, Idiom of the cinema
- Use the Aspiration how light leads to development- Serials & Movies
Use opinion leaders
Exploit the warmth of emotion among family members
- Light as the symbol of Unity
Understand and leverage your local culture, beliefs and customs
- Diwali- Festival of lights
Targeting rural consumersTargeting rural consumers
4. Consumer
Class
Annual
Income
1995-96 2006-07
Very Rich Above Rs 215,000 0.3 0.9
Consuming Class Rs 45,001- 215,000 13.5 25.0
Climbers Rs 22,001- 45,000 31.6 49.0
Aspirants Rs 16,001 - 22,000 31.2 14.0
Destitutes Rs 16,000 & Below 23.4 11.1
Total 100.0 100.0
n 7.2% GDP Growth
useholds in rural nearly equal to urban.
ower higher due to lower expenses on food, shelter, education & health
All figures in %
Source : NCAER Indian Market Demographics Report
Rural Income Dispersal ProjectionRural Income Dispersal Projection
5. Source: Census 2001
Population No of villages % of total villages
Less than 200 92,541 15.6
200-500 127,054 21.4
501-1000 144,817 24.4
1001-2000 129,662 21.9
2001-5000 80,313 13.5
5001-10000 18,758 3.2
Total no of villages 593,154* 100.0
17% of villages
account for 50%
of rural
population &
60% rural wealth
Hardly any
shops in these
2.2 lac villages
*Inhabited villages, total number of villages is 638, 691
Distribution of VillagesDistribution of Villages
6. Town Class Population No of towns % of total
towns
Class I 1 lac and above 423* 8.2
Class II 50,000-99,999 498 9.6
Class III 20,000- 49,999 1386 26.9
Class IV 10,000- 19,999 1560 30.2
Class V 5,000- 9,999 1057 20.5
Class VI less than 5000 237 4.6
Total no of
towns
5161 100.0
Source: Census 2001
90 % of
durables
purchased by
rural people
are from these
1900 towns
*10 lakh+ : 27, 5-10 lakh: 42, 1-5 lakh: 354
Distribution of Towns in IndiaDistribution of Towns in India
7. Company Product Offering Distribution Key Points
Dlight
Design
-Hub & Spoke Model
- NGOs & SHG
CDM Mechanism
Good Investors
Product Innovation
International AID
Yet to be profitable
SELCO
-Hub & Spoke Model
- Regioanl HQ,
Centres, Direct Selling
Profitable Venture-
Experienced
leadership
Customization &
service
Product Expansion
Competitors * Primary ResearchCompetitors * Primary Research
8. Target Group- Uttar Pradesh (U.P.) and Bihar
Households are in deep need for better, saver and cleaner light
sources.
Main sources of energy for lighting in rural Uttar Pradesh and Bihar -India
2004-2005
Source of lighting for rural households Bihar UP
Kerosene 89.4% 74.9%
Electricity 10.1% 24%
Other Energy Sources 0.5% 1.1%
(source: Indian Ministry of Statistics and Programme Implementation (2007), NSS Report No. 511)
Place- Target LocationPlace- Target Location
9. Jeep based advertising
Wall Painting
Bus Stand
Bus Panels
Haats
Hoardings
Postal branding
Van Based Advertising
Melas
Direct to Home
Folklore groups
Exhibitions/Created events
Co-operative Notice Board
Shop Front Painting
Tin Plating – House
Dealer Boards
Village Boards
Well Tiles
Calendars/Lables
Tin Plating – Trees/Shops
Leaflets
Posters
Banners
Streamers/Danglers
High
Reach
Low
Reach
High Frequency Low Frequency
Rural media usage gridRural media usage grid
10. Word of Mouth from Local opinion
leaders- Sarpanch/Doctors/ Retired Military
Officer (fauji)/ Teachers
Session in Schools/ Panchayat- educating
people about the benefits
Experiences from farmers/ tailers/
Handicrafts Makers
Mobile Marketing – Local Language Voice
calls
Cinema – Bioscope. In Movie promotions
Through NREGA- Advertisement at the
sites
At Seeds/Insecticides/ Fertilisers centers
Promotion at the School/ Panchayat
Promotion
Through
BioScope
PromotionPromotion
11. Build customization
Customization to meet every household needs. For
example a solar panel to meet two adjacent house
requirement. Cost can be shared
Build Empathy / Relevance
Show them the money saved in numbers- Like “Ek
Saal main 500 rupaiyee ki Bachat”. Or “Aaj hazaar to kal
Sunaar”
Build Recognition
In Diya is a gud name. But it should be more funny or
daily lingo like- “In Diya ki Bindiya waali lite”
In Diya Ki Bindiya waali lite
Rural Haats- Promotion
& Brand Building
BRAND Building in Rural IndiaBRAND Building in Rural India
12. Hub & Spoke Model
Distributors in Trading hubs like-
Gorakhpur/ Azamgarh/ Kanpur/ Jaunpur/ Rae
Bareilly/ Aligarh/ Meerut in UP
Patna/ Bhagalpur/ Katihar/ Samastipur/
Gaya/ Muzzafarpur/ Vaishali/ Buxar in Bihar
Distribution ModelDistribution Model
13. Syndicated Distribution- Ties ups with existing
channels like Project Shakti by HUL
Also good retailers in these areas- FMCG/ Fevicol/
Telecom products/ other known branded products
Local Dealers- Inverter Dealers/ Mobile phone shops/
Electric Shops/ Small Cement/Urea Shops
FMCG Logistics- Truck/Tempo driver/assistan
visiting rural market.
Local Tailors/ Handicraft dealer/ Doctors or Vaidh/
Teachers or entrepreneurs
Tie ups with NGOs/ SHGs to distribute them with the
help of micro finance
Midwives- Delivering Babies
Distribution Model contd…Distribution Model contd…
15. SCHNEIDER
DISTRIBUTION
CENTRE
Battery Charging/
In Diya Retail Centre
Demonstrators
Trained Retired Individuals
Opinion leaders
Popular Village Areas
Strategic Tie Ups
Sample- Distribution ModelSample- Distribution Model
16. National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cooking
and Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department Of
Statistics, Government Of India,April 2007
Selco website
Dlight Design website & CompanyVisit
Entrepreneurs & Engineers
REFERENCEREFERENCE
18. 18
Rural Income Dispersal
Projection
Consumer
Class
Annual
Income
1995-96 2006-07
Very Rich Above Rs 215,000 0.3 0.9
Consuming Class Rs 45,001- 215,000 13.5 25.0
Climbers Rs 22,001- 45,000 31.6 49.0
Aspirants Rs 16,001 - 22,000 31.2 14.0
Destitutes Rs 16,000 & Below 23.4 11.1
Total 100.0 100.0
n 7.2% GDP Growth
useholds in rural nearly equal to urban.
ower higher due to lower expenses on food, shelter, education & health
All figures in %
Source : NCAER Indian Market Demographics Report
19. Choice of States
Identified
state
Average
Population per
vilage Rural literacy
% of working
rural population
No. of rural
HH
HH availing
banking
services
HH with
electricity Average score
UP 0.35 0.54 0.48 1.32 0.50 1.28 0.74
Bihar 1.48 0.44 0.46 0.81 0.45 0.10 0.63
Rajasthan 0.72 0.63 0.52 0.72 0.67 0.41 0.61
West Bengal 0.53 0.56 0.63 0.46 0.57 0.91 0.61
MP 0.41 0.58 0.64 0.52 1.00 0.41 0.59
Chhattisgarh 0.42 0.61 0.68 0.22 0.45 0.95 0.55
Orissa 0.31 0.60 0.54 0.44 0.48 0.39 0.46
Assam 0.45 0.61 0.49 0.27 0.36 0.35 0.42
Jharkhand 0.33 0.46 0.56 0.24 0.50 0.21 0.38
Editor's Notes
This leads to linear and simple thinking, abstract logic tends to go over their heads