Rural India represents a large untapped consumer market. Hindustan Lever and ITC have both pioneered innovative rural marketing and distribution models to reach rural consumers. Hindustan Lever's Project Shakti employs rural women as direct sellers of products in their villages, providing them income. ITC's eChoupal model sets up internet kiosks in villages allowing farmers to access market prices and sell crops directly to ITC. Both models have been highly successful in expanding rural markets while also improving incomes and standards of living. Going forward, there is potential for both models and room for other companies to partner and utilize these distribution networks to tap into rural India's growing consumer potential.
The document discusses strategies that companies are using to market to rural Indian consumers. Some of the key strategies mentioned include communicating about quality and value to change rural perceptions; using Indian languages in promotions; understanding cultural values; developing rural-specific products; associating with Indian celebrities, sports teams, and culture; and using effective media communication tailored for rural audiences. The overall strategies are aimed at better understanding rural customers and associating the company's brands with Indian values and identities.
This report summarizes a study on rural marketing conducted by Hindustan Unilever Limited (HUL) in India. Key findings include: 1) HUL uses various promotional modes in rural areas like direct contact, print media, and brand ambassadors; 2) rural consumers want promotions focused on product usage and needs; 3) brand ambassadors are important for rural promotions. The report recommends HUL focus more on product utility in rural promotions and provide full product information. It also suggests using relevant local brand ambassadors reflecting rural lifestyles.
Advertising & Sales Promotional Strategies In Rural Marketrobinslides
Dabur uses a training program called Astra to educate its rural shopkeepers on effective sales and distribution techniques through role-plays performed by actors. The program is conducted in local languages to reach 75% of Dabur's customer base in rural areas. Other companies like Brooke Bond Lipton and HLL have also implemented rural marketing strategies like magic shows, product demonstrations by NGOs, and distributing product samples. Philips conducted rural shows in Tamil Nadu to promote its electronic products to dealers and opinion leaders. Marico saw a 25% increase in pouch sales of Parachute coconut oil after conducting women-focused van campaigns in rural Tamil Nadu. ACC Cement used local press and meetings with mason
This document discusses branding strategies for rural India. It notes that over 60% of India's population lives in rural areas, with different demographics, culture, and priorities than urban consumers. Traditional urban branding does not work for rural audiences. However, rural India represents a large market share, especially for FMCG. New rural branding strategies connect with local people through partnerships with village leaders. They also redesign products in smaller, affordable sizes and leverage existing local distribution networks. These tailored approaches can help realize brands in rural India's previously untapped markets.
Hindustan Unilever Limited (HUL) entered the Indian market in 1888. In the 1960s, HUL recognized rural India as a huge market opportunity and began expanding its rural operations. Some key strategies HUL employed included developing affordable products through value engineering, introducing smaller product packages, establishing direct distribution networks to rural vendors/retailers, and utilizing culturally appropriate promotional methods. In 1998, HUL launched Project Streamline and Project Bhart to improve rural distribution. In 2001, HUL launched Project Shakti, a partnership with rural women's self-help groups, to directly reach consumers in villages. Project Shakti now operates in over 100,000 villages across 15 states, providing livelihood
The World is Flat, but Culture isn't Historymxmindia
This document summarizes the findings of a large-scale research study called GenAsia that examines the attitudes, behaviors, and mindsets of connected Asians aged 18-35 and 36-55 across 10 Asian countries. The study involved online surveys of over 30,000 individuals across multiple cities and languages to understand how this demographic views various topics from their lives to brands. Some key findings discussed include Indians seeking a sense of cultural identity and relevance through preserving traditional values while also being open to other cultures. The document concludes by outlining five recommendations for marketers on how to effectively engage this audience, such as learning from local cultures, contextualizing ideas to the local community, and immersing oneself in consumers' real lives.
Case study on Indian Rural Marketing_Ravi Guntaka from P.B.Siddhartha,VijayawadaRavi G
Hi friends this is Ravi. I am pursuing my MBA in P.B.SIDDHARTHA,Vijayawada.I am very interested about rural marketing because it is the place where companies have high opportunities for their growth.so friends i have done a small case study and i prepared this with some of my ideas.please guide me with your valuable suggestions. thanking you...... --Ravi
The document discusses strategies that companies are using to market to rural Indian consumers. Some of the key strategies mentioned include communicating about quality and value to change rural perceptions; using Indian languages in promotions; understanding cultural values; developing rural-specific products; associating with Indian celebrities, sports teams, and culture; and using effective media communication tailored for rural audiences. The overall strategies are aimed at better understanding rural customers and associating the company's brands with Indian values and identities.
This report summarizes a study on rural marketing conducted by Hindustan Unilever Limited (HUL) in India. Key findings include: 1) HUL uses various promotional modes in rural areas like direct contact, print media, and brand ambassadors; 2) rural consumers want promotions focused on product usage and needs; 3) brand ambassadors are important for rural promotions. The report recommends HUL focus more on product utility in rural promotions and provide full product information. It also suggests using relevant local brand ambassadors reflecting rural lifestyles.
Advertising & Sales Promotional Strategies In Rural Marketrobinslides
Dabur uses a training program called Astra to educate its rural shopkeepers on effective sales and distribution techniques through role-plays performed by actors. The program is conducted in local languages to reach 75% of Dabur's customer base in rural areas. Other companies like Brooke Bond Lipton and HLL have also implemented rural marketing strategies like magic shows, product demonstrations by NGOs, and distributing product samples. Philips conducted rural shows in Tamil Nadu to promote its electronic products to dealers and opinion leaders. Marico saw a 25% increase in pouch sales of Parachute coconut oil after conducting women-focused van campaigns in rural Tamil Nadu. ACC Cement used local press and meetings with mason
This document discusses branding strategies for rural India. It notes that over 60% of India's population lives in rural areas, with different demographics, culture, and priorities than urban consumers. Traditional urban branding does not work for rural audiences. However, rural India represents a large market share, especially for FMCG. New rural branding strategies connect with local people through partnerships with village leaders. They also redesign products in smaller, affordable sizes and leverage existing local distribution networks. These tailored approaches can help realize brands in rural India's previously untapped markets.
Hindustan Unilever Limited (HUL) entered the Indian market in 1888. In the 1960s, HUL recognized rural India as a huge market opportunity and began expanding its rural operations. Some key strategies HUL employed included developing affordable products through value engineering, introducing smaller product packages, establishing direct distribution networks to rural vendors/retailers, and utilizing culturally appropriate promotional methods. In 1998, HUL launched Project Streamline and Project Bhart to improve rural distribution. In 2001, HUL launched Project Shakti, a partnership with rural women's self-help groups, to directly reach consumers in villages. Project Shakti now operates in over 100,000 villages across 15 states, providing livelihood
The World is Flat, but Culture isn't Historymxmindia
This document summarizes the findings of a large-scale research study called GenAsia that examines the attitudes, behaviors, and mindsets of connected Asians aged 18-35 and 36-55 across 10 Asian countries. The study involved online surveys of over 30,000 individuals across multiple cities and languages to understand how this demographic views various topics from their lives to brands. Some key findings discussed include Indians seeking a sense of cultural identity and relevance through preserving traditional values while also being open to other cultures. The document concludes by outlining five recommendations for marketers on how to effectively engage this audience, such as learning from local cultures, contextualizing ideas to the local community, and immersing oneself in consumers' real lives.
Case study on Indian Rural Marketing_Ravi Guntaka from P.B.Siddhartha,VijayawadaRavi G
Hi friends this is Ravi. I am pursuing my MBA in P.B.SIDDHARTHA,Vijayawada.I am very interested about rural marketing because it is the place where companies have high opportunities for their growth.so friends i have done a small case study and i prepared this with some of my ideas.please guide me with your valuable suggestions. thanking you...... --Ravi
1. The document discusses the FMCG industry in India, focusing on the beauty and personal care sector. It analyzes trends in rural and urban markets, as well as different regions of India.
2. Major players like HUL, Colgate, and P&G dominate the market, though Dabur and other local brands have significant share as well. Rural markets offer great potential for growth.
3. The document also provides overviews of specific FMCG companies like Pepsico and Coca-Cola, covering their distribution networks, rural marketing strategies, and initiatives to boost rural penetration. Price points, packaging, and addressing issues like fakes are discussed.
This document discusses advertising strategies for rural markets in India. It notes that three out of four Indian consumers live in rural areas, posing various challenges for marketers like wide dispersion, transportation issues, and seasonal/unpredictable demand. However, opportunities exist in food, consumer goods, durables and vehicle sectors totaling over $100 billion annually. The document examines success stories of brands like Lever's Breeze soap, A1 Tea, Britannia's Tiger biscuits, and Dabur targeting rural consumers through product design, packaging, and promotional strategies like health camps, beauty pageants, and regional branding. HUL's Lifebuoy soap is discussed which was launched in 1894 and focuses on health education through radio programs
This document summarizes a presentation made by a group on the rural marketing strategies of CavinKare's Chik Shampoo brand. It discusses how Chik identified the large untapped rural market in the 1970s-1980s. Key to its success was introducing affordable shampoo sachets priced at Re. 1 and 50p, and promoting them through rural trials, cinema star endorsements, and innovative schemes like free sachets for empty sachets. Later, introducing floral fragrances leveraging women's hair traditions further boosted sales. This allowed Chik to become the second largest selling shampoo in India, conquering the rural market through accessibility, affordability and understanding local consumer insights.
The document discusses several major retail companies in India. It provides details about Shoppers Stop, Westside, Pantaloon Retail (Big Bazaar), Lifestyle, RPG Retail (Foodworld, Musicworld), Crossword, Wills Lifestyle, Globus, and their business models, product offerings, locations, and leadership.
CavinKare launched Chik Shampoo in the 1980s targeting rural Indian consumers. It was the first shampoo sold in small and affordable sachets. Chik gained success through grassroots marketing efforts like demonstrations to teach usage and distributing free samples. Partnerships with cinema stars helped advertising. Chik later expanded its range, lowered prices further with a 50 paise sachet, and became the top-selling rural shampoo brand through wide availability and addressing affordability. Its success demonstrated the potential of the rural market and usage of sachet packaging.
Hindustan Unilever Limited (HUL) launched Project Shakti in 2001 to capture India's large rural consumer market. The project partners with self-help groups and provides village women microloans to become direct-to-home sales agents for HUL products. Over 45,000 women entrepreneurs now participate in Project Shakti, earning Rs. 700-1000 per month and improving living standards in their villages. The project also includes initiatives like Shaktivani for rural communication and the iShakti community portal for information access.
The document discusses rural marketing strategies for cosmetics brands in India. It provides an overview of Godrej Consumer Products Ltd's (GCPL) rural marketing approach for its flagship soap brand Godrej No. 1. GCPL focuses on availability, affordability, acceptability and awareness. It uses distribution through local stockists and promotions at local events. The brand is priced accessibly and is targeted towards rural consumers.
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
Scope of rural marketing in fmcg industriesShami Zama
This document provides an overview of the research methodology used in a report on the scope of rural marketing in fast-moving consumer goods (FMCG) industries in India. The report uses secondary research methods, collecting data from sources like magazines, journals, books, and the internet. The objective is to analyze the present and future of rural FMCG marketing in India, strategies used by different companies, challenges faced, and opportunities available. The research design involves both descriptive and conclusive secondary research to understand the industry and select key issues to explore further.
Rural Marketing- Acceptability for a productPriya Soni
Each Company is making their way to Rural India. Most of them have studied the market and Analyzed the things over there and ready to fight at Rural India. There are some of the companies which have already written their success stories in Rural market. Companies like HUL, ITC, LG, Mahindra have given a new format for rural marketing. They have done a great job. So, the marketing is always have the difference in Urban and rural, which makes the companies to think over the Marketing mix.
A series of pre-defined standards related to the performance of an individual product, service or system that enables someone to easily determine the capability to perform its function within an acceptable range.
ITC launched its e-Choupal initiative to help farmers in rural India overcome issues around lack of access to market information and being taken advantage of by middlemen. The initiative involves setting up internet kiosks in villages operated by local farmers. This allows farmers to get real-time information on markets, weather and best farming practices. It also allows them to directly sell their products to ITC at a fair price without middlemen taking a cut. The initiative has been successful and expanded to many states by building farmers' trust and treating them and local partners with respect. It focuses on making products available, affordable and increasing farmers' awareness through the kiosks.
The document summarizes CavinKare Pvt. Ltd.'s approach to rural marketing in India. Some key points:
- CavinKare was an early pioneer in marketing products like shampoo in small, affordable sachet sizes targeted at rural consumers.
- They educated rural consumers on product use through demonstrations and free samples. This helped brands like Chik shampoo succeed in rural markets.
- CavinKare focuses on research and distribution to build brands in rural areas and competes successfully against major companies.
This document provides information about CavinKare's rural marketing project for their Chik Shampoo sachets. It discusses CavinKare's company profile, products, competitors, marketing strategies, and how Chik Shampoo was developed to target rural audiences through affordable sachet packaging and effective communication strategies emphasizing the benefits of shampoo over soap for hair care. Key highlights include CavinKare achieving a 19% market share in shampoos through Chik and Nyle, and their pioneering of sachet packaging which expanded access to shampoos in rural India.
Silky routers Rural marketing casestudy on product strategyDeepak Reghu
CavinKare is a leading shampoo manufacturer in India that was founded in 1983. To gain market share, CavinKare introduced affordable small sachet sizes of its shampoos that expanded its customer base. It also launched an herbal shampoo brand. While facing competition from established brands like HLL, CavinKare focused on strengthening its distribution network, especially in rural areas, through strategies like stockists and mobile marketing vehicles. Its goal is to reach 5000 crores in turnover within 10 years by innovating distribution channels and product lines to expand the overall shampoo market.
The document discusses rural advertising in India. It notes that companies are increasingly targeting rural consumers as the urban market becomes saturated and rural households have more disposable income from good harvests. Some challenges to rural marketing include low literacy rates, seasonal consumption patterns, and low individual incomes. Effective rural communication requires finding cost-effective media mixes and messages tailored to the predominantly illiterate rural audiences. Advertising aims to create desire for products and inform consumers of new offerings.
Wealth Creation through Creation of Intellectual Property Rights, By Vijay Pal Dalmia Advocate, IPR Lawyer Delhi High Court, Partner and Head IP & IT Laws Division, Vaish Associates Advocates
Chik Shampoo was launched in rural Indian markets using innovative small sachet packaging and demonstration. CavinKare educated consumers on shampoo use and distributed free samples. This strategy was successful in rural Tamil Nadu and Andhra Pradesh. Chik Shampoo became the second largest selling shampoo in India through affordable sachet pricing and sponsorship of popular films which exposed rural audiences to the brand. CavinKare's targeting of and engagement with rural consumers demonstrated the potential of those markets.
Branding and its Strategy for a Hypothetical Shampoo Brand, design conception to Packaging and distrbution.
Marketing Mix and Marketing Plan.
Logo and Brand Design.
E L A M O R Y L A L O C U R A, C L A U D I A S I L V AEstela Margozzini
Claudia Silva Castro, chilena, autora de esta hermosa fábula que por mucho tiempo permaneció en el anonimato.
Tuve la oportunidad de conocerla y revisar este texto él cúal sería publicado y quedó anónimo luego de que la autora sufriera una gran pérdida en su vida.
Sigo sin entender por que esta mujer no decide brillar aún.
Según cuentan, tendría muchísimo material literario que esperemos algún día podamos conocer.
1. The document discusses the FMCG industry in India, focusing on the beauty and personal care sector. It analyzes trends in rural and urban markets, as well as different regions of India.
2. Major players like HUL, Colgate, and P&G dominate the market, though Dabur and other local brands have significant share as well. Rural markets offer great potential for growth.
3. The document also provides overviews of specific FMCG companies like Pepsico and Coca-Cola, covering their distribution networks, rural marketing strategies, and initiatives to boost rural penetration. Price points, packaging, and addressing issues like fakes are discussed.
This document discusses advertising strategies for rural markets in India. It notes that three out of four Indian consumers live in rural areas, posing various challenges for marketers like wide dispersion, transportation issues, and seasonal/unpredictable demand. However, opportunities exist in food, consumer goods, durables and vehicle sectors totaling over $100 billion annually. The document examines success stories of brands like Lever's Breeze soap, A1 Tea, Britannia's Tiger biscuits, and Dabur targeting rural consumers through product design, packaging, and promotional strategies like health camps, beauty pageants, and regional branding. HUL's Lifebuoy soap is discussed which was launched in 1894 and focuses on health education through radio programs
This document summarizes a presentation made by a group on the rural marketing strategies of CavinKare's Chik Shampoo brand. It discusses how Chik identified the large untapped rural market in the 1970s-1980s. Key to its success was introducing affordable shampoo sachets priced at Re. 1 and 50p, and promoting them through rural trials, cinema star endorsements, and innovative schemes like free sachets for empty sachets. Later, introducing floral fragrances leveraging women's hair traditions further boosted sales. This allowed Chik to become the second largest selling shampoo in India, conquering the rural market through accessibility, affordability and understanding local consumer insights.
The document discusses several major retail companies in India. It provides details about Shoppers Stop, Westside, Pantaloon Retail (Big Bazaar), Lifestyle, RPG Retail (Foodworld, Musicworld), Crossword, Wills Lifestyle, Globus, and their business models, product offerings, locations, and leadership.
CavinKare launched Chik Shampoo in the 1980s targeting rural Indian consumers. It was the first shampoo sold in small and affordable sachets. Chik gained success through grassroots marketing efforts like demonstrations to teach usage and distributing free samples. Partnerships with cinema stars helped advertising. Chik later expanded its range, lowered prices further with a 50 paise sachet, and became the top-selling rural shampoo brand through wide availability and addressing affordability. Its success demonstrated the potential of the rural market and usage of sachet packaging.
Hindustan Unilever Limited (HUL) launched Project Shakti in 2001 to capture India's large rural consumer market. The project partners with self-help groups and provides village women microloans to become direct-to-home sales agents for HUL products. Over 45,000 women entrepreneurs now participate in Project Shakti, earning Rs. 700-1000 per month and improving living standards in their villages. The project also includes initiatives like Shaktivani for rural communication and the iShakti community portal for information access.
The document discusses rural marketing strategies for cosmetics brands in India. It provides an overview of Godrej Consumer Products Ltd's (GCPL) rural marketing approach for its flagship soap brand Godrej No. 1. GCPL focuses on availability, affordability, acceptability and awareness. It uses distribution through local stockists and promotions at local events. The brand is priced accessibly and is targeted towards rural consumers.
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
Scope of rural marketing in fmcg industriesShami Zama
This document provides an overview of the research methodology used in a report on the scope of rural marketing in fast-moving consumer goods (FMCG) industries in India. The report uses secondary research methods, collecting data from sources like magazines, journals, books, and the internet. The objective is to analyze the present and future of rural FMCG marketing in India, strategies used by different companies, challenges faced, and opportunities available. The research design involves both descriptive and conclusive secondary research to understand the industry and select key issues to explore further.
Rural Marketing- Acceptability for a productPriya Soni
Each Company is making their way to Rural India. Most of them have studied the market and Analyzed the things over there and ready to fight at Rural India. There are some of the companies which have already written their success stories in Rural market. Companies like HUL, ITC, LG, Mahindra have given a new format for rural marketing. They have done a great job. So, the marketing is always have the difference in Urban and rural, which makes the companies to think over the Marketing mix.
A series of pre-defined standards related to the performance of an individual product, service or system that enables someone to easily determine the capability to perform its function within an acceptable range.
ITC launched its e-Choupal initiative to help farmers in rural India overcome issues around lack of access to market information and being taken advantage of by middlemen. The initiative involves setting up internet kiosks in villages operated by local farmers. This allows farmers to get real-time information on markets, weather and best farming practices. It also allows them to directly sell their products to ITC at a fair price without middlemen taking a cut. The initiative has been successful and expanded to many states by building farmers' trust and treating them and local partners with respect. It focuses on making products available, affordable and increasing farmers' awareness through the kiosks.
The document summarizes CavinKare Pvt. Ltd.'s approach to rural marketing in India. Some key points:
- CavinKare was an early pioneer in marketing products like shampoo in small, affordable sachet sizes targeted at rural consumers.
- They educated rural consumers on product use through demonstrations and free samples. This helped brands like Chik shampoo succeed in rural markets.
- CavinKare focuses on research and distribution to build brands in rural areas and competes successfully against major companies.
This document provides information about CavinKare's rural marketing project for their Chik Shampoo sachets. It discusses CavinKare's company profile, products, competitors, marketing strategies, and how Chik Shampoo was developed to target rural audiences through affordable sachet packaging and effective communication strategies emphasizing the benefits of shampoo over soap for hair care. Key highlights include CavinKare achieving a 19% market share in shampoos through Chik and Nyle, and their pioneering of sachet packaging which expanded access to shampoos in rural India.
Silky routers Rural marketing casestudy on product strategyDeepak Reghu
CavinKare is a leading shampoo manufacturer in India that was founded in 1983. To gain market share, CavinKare introduced affordable small sachet sizes of its shampoos that expanded its customer base. It also launched an herbal shampoo brand. While facing competition from established brands like HLL, CavinKare focused on strengthening its distribution network, especially in rural areas, through strategies like stockists and mobile marketing vehicles. Its goal is to reach 5000 crores in turnover within 10 years by innovating distribution channels and product lines to expand the overall shampoo market.
The document discusses rural advertising in India. It notes that companies are increasingly targeting rural consumers as the urban market becomes saturated and rural households have more disposable income from good harvests. Some challenges to rural marketing include low literacy rates, seasonal consumption patterns, and low individual incomes. Effective rural communication requires finding cost-effective media mixes and messages tailored to the predominantly illiterate rural audiences. Advertising aims to create desire for products and inform consumers of new offerings.
Wealth Creation through Creation of Intellectual Property Rights, By Vijay Pal Dalmia Advocate, IPR Lawyer Delhi High Court, Partner and Head IP & IT Laws Division, Vaish Associates Advocates
Chik Shampoo was launched in rural Indian markets using innovative small sachet packaging and demonstration. CavinKare educated consumers on shampoo use and distributed free samples. This strategy was successful in rural Tamil Nadu and Andhra Pradesh. Chik Shampoo became the second largest selling shampoo in India through affordable sachet pricing and sponsorship of popular films which exposed rural audiences to the brand. CavinKare's targeting of and engagement with rural consumers demonstrated the potential of those markets.
Branding and its Strategy for a Hypothetical Shampoo Brand, design conception to Packaging and distrbution.
Marketing Mix and Marketing Plan.
Logo and Brand Design.
E L A M O R Y L A L O C U R A, C L A U D I A S I L V AEstela Margozzini
Claudia Silva Castro, chilena, autora de esta hermosa fábula que por mucho tiempo permaneció en el anonimato.
Tuve la oportunidad de conocerla y revisar este texto él cúal sería publicado y quedó anónimo luego de que la autora sufriera una gran pérdida en su vida.
Sigo sin entender por que esta mujer no decide brillar aún.
Según cuentan, tendría muchísimo material literario que esperemos algún día podamos conocer.
Digestion is the breakdown of large insoluble molecules into smaller soluble molecules. It involves both mechanical and chemical breakdown. Mechanical digestion begins with chewing in the mouth and churning in the stomach and intestines. Chemical digestion uses enzymes to break molecules down. Digestion occurs in the mouth, stomach, small intestine and large intestine through the actions of enzymes from saliva, gastric juice, pancreatic juice, bile, and intestinal juices. These break nutrients down into smaller molecules that can be absorbed and used by the body.
Social Media for Small Business: Formic Media Seminar SeriesAnvil Media, Inc.
Kent Lewis talks about how small and local businesses can use Facebook, LinkedIn, MySpace, Twitter, YouTube and other social media platforms to grow sales, retain customers and manage your businesses reputation. Sponsored by Formic Media and Bank of the West.
Formic Media provides stats and an overview of basic social media sites, and they're individual components. This is an excellent overview for those interested in learning more about social media. This is intended for beginners/novices to social media.
Rural markets in India are becoming increasingly important as more companies recognize their large potential. Rural consumers now have greater exposure to brands and products through television and are more literate about their options. Several FMCG companies have found success targeting rural consumers through strategies like smaller, affordable packaging and tying up with banks and self-help groups to improve distribution networks in villages. While income levels are lower in rural areas, the population is large and growing middle and high-income households in rural India are expected to double urban India's size, representing a major opportunity for companies able to effectively reach rural consumers.
FMCG companies are increasingly targeting rural Indian markets, which represent 70% of the population. To succeed, companies are innovating their marketing strategies, introducing new affordable products, and demonstrating product uses to rural consumers. They are also improving distribution networks and reducing costs through techniques like supply chain management and product diversification. With the right strategies, rural India represents a significant growth opportunity for FMCG sales and profits.
FMCG companies are increasingly targeting rural Indian markets, which represent 70% of the population. To succeed, companies must tailor innovative marketing strategies to rural consumers' unique needs and purchasing behaviors. Nirma used low-cost products like soap and detergent to attract price-conscious rural customers. HLL promoted Clinic Plus shampoo through demonstrations to educate rural communities. Coca-Cola and Pepsi used small packaging and extensive distribution networks to reach rural customers. Overall, companies that reduce costs through new technologies and product diversification while developing culturally appropriate marketing have found success in rural India.
Rural India represents a large potential market segment. Major companies like HUL and ITC have developed initiatives targeting rural consumers, like Project Shakti and E-Choupal, which provide income opportunities and market connectivity to rural areas. These programs have helped boost sales in rural India and close the gap with urban consumption patterns. Reaching rural customers requires investment to build awareness of new product categories and overcome barriers like low incomes and lack of infrastructure.
This document discusses the fast moving consumer goods (FMCG) sector in India. It provides an overview of the top 3 FMCG companies - Hindustan Unilever Limited (HUL), Procter & Gamble (P&G), and ITC Limited. For each company, it outlines their mission/vision, strengths, weaknesses, opportunities, and threats. It also compares their strategies, with HUL focusing on a diversified customer group, P&G on children, and ITC on farmers. The conclusion states that the FMCG sector provides many job opportunities across sales, supply chain, investment, promotion and management.
Colgate is a world renowned brand that has been in India since 1937. It dominates the oral care market with 48% share and earns 93% of its revenues from oral care products like toothpaste. While urban penetration of oral care products is high, in rural India traditional products like neem and ash are still commonly used. To increase rural penetration, Colgate launched programs like 'Sampark' that used door-to-door campaigns, mobile vans, and partnerships with local leaders and retailers to educate consumers and improve access to products. Colgate's long presence and focus on rural markets have contributed significantly to its market leadership position in India.
Project Shakti was launched by Hindustan Unilever Limited (HUL) in 2000 to boost sales in rural India and provide income opportunities for women. It trains rural women as direct-to-home sales agents for HUL products. Over 12,000 women entrepreneurs have been trained to date. The project aims to reach 100 million rural consumers by 2006 and scale up the number of women entrepreneurs to 25,000. It helps HUL penetrate untapped rural markets while empowering women economically.
The document discusses Hindustan Lever Limited's (HLL) detergent brand Surf Excel. It provides a summary of a market research project conducted on Surf Excel in Orissa, India. The summary includes the objectives of studying Surf Excel's business, marketing practices, competitors and customers in Orissa. Key findings were that Surf Excel has high brand recall and a 66% market share in Orissa. Television was the most used information source but ad recall was low. Over 50% of customers preferred larger pack sizes than 200g. In conclusion, Surf Excel was found to have excellent customer reviews for its cleansing ability and availability.
A study & comparative analysis of hul & itc performanceMumbai University
The document provides an overview of the FMCG industry in India. It discusses that India is a growing consumer market projected to more than double consumer spending by 2025. Global corporations see India as a key future market due to rising incomes and a young demographic. The government has also played a role through policies attracting FDI and boosting economic growth. Key segments like consumer durables and online retail are projected to have high growth rates. Major companies are making investments and partnerships to capitalize on opportunities in India's consumer market. The government is also undertaking initiatives to support the industry.
The document provides an overview of the FMCG industry in India. It discusses how India is a growing consumer market projected to more than double consumer spending by 2025. The FMCG market is expanding rapidly due to rising incomes and affordability. Major players like Hindustan Unilever Ltd. and ITC are leading brands in the industry, with MNCs owning most of the top 100 brands. The government is also supporting industry growth through policies promoting FDI and retail.
Radiohms Agencies Ltd (RAL) is India's largest fast moving consumer goods company, with leadership in Portable Energy,Personal Grooming and Baby Care products .In Portable energy segment RAL leading in Battery,Torches,Dry Cell,Alkaline Cell,Pencil Cell,Big Cell,Medium Size Cell,Heavy Duty Cell,Battery Charger,Emergency light & Rechargeable light. RAL is also the market leader in Personal Grooming & Baby Care products segment - catering to diverse product range like Feeding Products,Sippers,Soother,Teether,Nipple,Bibs,Diapers,Toys,Spouts,Feeding Sets,BPA Free Products,Shaving Product,Shaving Razor,Shaving Brush,Shaving Cream,Shaving Foam,After Shave Lotion,Safety Razor,Disposable Razor & lot more.
With its extensive reach starting from small grocery shops to chain departmental stores,RAL caters to more than 10,00,000 Retail and Wholesale outlets across the country.
The document discusses the FMCG sector in India. It notes that FMCG was one of the fastest growing sectors from the early 1980s to 1990s but started losing its shine in the 1990s due to new product introductions and lack of imagination from FMCG companies. However, consumers' willingness to upgrade to better products helped FMCG companies in 2010. It provides an introduction to the FMCG sector in India and discusses the market scenario, growth prospects due to population growth, opportunities in rural markets, and the top 3 FMCG companies - HUL, P&G, and ITC.
Digging Reasons of Past Success Stories of Regional Brandsdeshwal852
Regional brands have historically found success against larger competitors for several key reasons:
1) Regional brands have stronger relationships with local trade partners and offer better margins and terms.
2) Entrepreneurial regional brand owners capitalize on weaknesses of national brands by identifying gaps in the market.
3) Lower costs from outsourced manufacturing and affordable local advertising options through regional media and packaging innovations give regional brands a cost advantage.
The document discusses ITC's rural marketing strategy in India. ITC entered rural marketing to address problems faced by farmers like lack of price discovery, quality information and bargaining power due to fragmented markets and middlemen [paragraph 1]. ITC launched its e-Choupal initiative to provide farmers real-time local price information, payment options and farming best practices through local sanchalaks using internet kiosks [paragraph 2]. The e-Choupal initiative helped farmers get better prices, crop insurance, and increased productivity while giving ITC access to a large rural market at lower costs through an online supply chain [paragraph 3]. ITC's 4A rural marketing strategy focused on availability, affordability, acceptability and awareness
Hindustan Unilever has launched Project Shakti, a rural initiative to provide marketing infrastructure for products made by rural communities. The initiative aims to ensure rural producers have access to ready markets, allow products to reach a wide customer base, and facilitate financial benefits reaching producers. Shakti recruits and trains rural women as entrepreneurs to directly sell HUL products in villages, generating an average monthly income of Rs. 700-1,000. The program now operates in over 80,000 villages across 15 states.
The document discusses the growing importance of rural markets in India. It notes that over 70% of India's population lives in rural areas, yet they remain an untapped market. Rural incomes are rising due to increased agricultural procurement prices and government programs, growing the rural consumer market. Companies will need targeted marketing strategies to succeed in rural India, focusing on product relevance, affordable prices, widespread distribution networks, and culturally-appropriate communication. Developing a dedicated rural business vertical and leveraging new retail and IT models can help companies better access this sizable rural consumer base.
The skin care industry in India is valued at $180 million and is growing rapidly due to increasing awareness and concerns about hygiene. Major players like Hindustan Unilever, CavinKare, Godrej Consumer Products, and Emami have a large share of the market. The industry is segmented into products like cleansers, sunscreens, and moisturizers. While still in a growth stage, the industry sees opportunities in India's rising incomes and untapped rural markets.
Procter & Gamble faced stagnating growth in major urban markets and looked to rural India for expansion. They overcame challenges in rural areas by understanding customer needs, launching affordable product sizes and prices, improving distribution networks, and creating demand through awareness campaigns. P&G slashed prices, introduced sachets of shampoo, and established stockists in small towns. They communicated product benefits to rural customers through the character SB to help penetrate the rural market and find continued growth.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
1. Marketing to Rural India: Making the Ends Meet <br />Marketing to Rural India: Making the Ends Meet Published : March 08, 2007 in India<br />Knowledge@Wharton.This is a single/personal use copy of India Knowledge@Wharton. For multiple copies, custom<br />reprints, e-prints, posters or plaques, please contact PARS International: reprints@parsintl.com<br />P. (212) 221-9595 x407. .On one side are the fast-moving consumer goods (FMCG) and the consumer durables companies.<br />On the other are consumers in rural India, potentially the largest segment of the market. Finally,<br />the two are coming together. The fact that this has not happened in the past is not for want of trying. In Mumbai and New<br />Delhi corner offices, executives have long recognized that to build real sales volumes they will have to reach outside the big cities. In several categories, rural India already accounts for the lion's share. According to MART, a New Delhi-based research organization that offers rural solutions to the corporate world, rural India buys 46% of all soft drinks sold, 49% of motorcycles and 59% of cigarettes. This trend is not limited just to utilitarian products: 11% of rural women use lipstick. Other numbers are equally revealing. According to the National Council of Applied Economic.Research (NCAER), an independent, non-profit research institution, rural households form 71.7% of the total households in the country. Spending in this segment is growing rapidly and consumption patterns are closing in on those of urban India. Jagmohan Singh Raju, a professor of marketing at Wharton, says: quot;
No consumer goods company today can afford to forget that the rural market is a very big part of the Indian consumer market. You can't build a presence for a brand in India unless you have a strategy for reaching the villages.quot;
<br />Several European multinational firms -- and a few U.S. firms -- have been making inroads into<br />rural India for years. Companies such as Unilever, Phillips and Nestle have long been known to<br />India's rustic dukaandaars, or merchants. Among U.S. firms, companies such as Colgate and<br />Gillette have made considerable headway. According to Raju, marketing to rural customers often<br />involves building categories by persuading them to try and adopt products they may not have<br />used before. quot;
A company like Colgate has to build toothpaste as a category, which means<br />convincing people to change to toothpaste instead of using neem twigs to clean their teeth, which<br />was the traditional practice,quot;
he says. quot;
This is difficult to do and requires patience and investment<br />by companies. It's not like getting someone to switch brands.quot;
<br /> All materials copyright of the Wharton School of the University of Pennsylvania. Page 1 of 6 <br />Marketing to Rural India: Making the Ends Meet: India Knowledge@Wharton<br />( http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4172) by companies. It's not like getting someone to switch brands.quot;
<br />Companies that have figured this out are doing better in the villages than in the cities. Soft drinks<br />giant Coca-Cola is growing at 37% in rural markets, compared with 24% in urban areas.<br />According to Hansa Research, a market research firm that has published a Guide to Indian<br />Markets 2006, the penetration of consumer durables has risen sharply in India's villages between<br />2000 and 2005. In color TVs, sales are up 200%; in motorcycles, 77%. In absolute numbers,<br />however, the penetration is still low. Coke, for instance, reaches barely 25% of the rural market.<br />This means the upside potential is huge for companies that develop effective rural marketing<br />strategies. <br />According to NCAER, the low penetration rates can be attributed to three major factors: low<br />income levels, inadequate infrastructure facilities and different lifestyles. But income levels are<br />going up, infrastructure is improving and lifestyles are changing. Almost a third of the rural<br />population now uses shampoo compared with 13% in 2000, according to Hansa Research.<br />FMCG and consumer durables companies have in the past tried tinkering with all the four 'P's --<br />product, pricing, promotion and place-- of the marketing mix. Hindustan Lever -- which is in the<br />process of changing its name to Hindustan Unilever to reflect the fact that it is the Indian<br />subsidiary of the Dutch conglomerate -- is among India's largest FMCG companies. It has been<br />highly successful in marketing in rural India and has been a pioneer in reaching out to the<br />smallest of villages with innovative products such as single-use packets of shampoo that sell for a<br />penny. (The rural consumer uses shampoo on rare occasions; she does not want to invest in a<br />bottle.) Independent agencies run media vans that show movies in distant villages. They have live<br />promotions and demonstrations during breaks.<br />The area where innovation has moved to center stage is in the fourth P -- place (or distribution).<br />Infrastructure has always been the bugbear of the Indian marketer. Distribution channels can<br />make or break a company's rural marketing efforts. To sell in villages, products must be priced<br />low, profit margins must be kept to the minimum and the marketing message must be kept<br />simple. <br />Empowering Women Consumers<br />Hindustan Lever, whose 2006 revenues were $2.8 billion, has been learning these lessons for<br />nearly a decade. The company's Project Shakti (its name means quot;
strengthquot;
) was born out of this<br />realization, and it has become a case study for business schools and evolved beyond its original<br />goals. quot;
The objectives of Project Shakti are to create income-generating capabilities for<br />underprivileged rural women by providing a small-scale enterprise opportunity, and to improve<br />rural living standards with greater awareness of health and hygiene,quot;
says Dalip Sehgal, executive<br />director of the Shakti initiative. <br />Hindustan Lever's drive into rural India was prompted in part by growing competition. When the<br />Indian economy opened up in early 1990s, multinationals such as Procter & Gamble stepped up<br />their activities, forcing Hindustan Lever to seek higher revenues and growth by reaching into<br />villages with 1,000 or fewer residents. Launched in 2001, Project Shakti was an important part of<br />this strategy. It involved working with rural self-help groups (SHGs) to educate rural women,<br />while also making them part of the company's marketing network. quot;
Women from SHGs become<br />Shakti entrepreneurs -- direct-to-home distributors [of Hindustan Lever products] in rural<br />markets,quot;
says Sehgal. quot;
This micro-enterprise offers low risks and high returns. The products<br />distributed include a range of mass-market items especially relevant to rural consumers,quot;
such as<br />soap, toothpaste, shampoo and detergent.<br /> All materials copyright of the Wharton School of the University of Pennsylvania. Page 2 of 6 <br />Marketing to Rural India: Making the Ends Meet: India Knowledge@Wharton<br />( http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4172) soap, toothpaste, shampoo and detergent.<br />The Shakti website features a video profile of Rojamma, a young woman from the state of<br />Andhra Pradesh in Southern India, as an example of a typical Shakti distributor. A mother of two<br />who was left to fend for herself and two daughters after her husband abandoned the family,<br />Rojamma initially made ends meet by working in her parents' fields. She then joined the Shakti<br />project and became a distributor of Hindustan Lever products, speaking in village after village to<br />impoverished and often illiterate women about the need to bathe their children and wash their<br />clothes regularly and also selling them soap and detergent. The commission Rojamma earned on<br />her sales helped provide for her family. quot;
Today she is a proud entrepreneur and enjoys not only<br />the money she earns from the project but also the respect of society,quot;
says Sehgal. quot;
The lives of<br />thousands of women have changed because of Shakti.quot;
<br />A typical Shakti distributor sells products worth Rs 10,000-15,000 (around $250) a month, which<br />provides an income of Rs 700-1,000 (around $25) a month on a sustainable basis. While this may<br />not seem to be a high income, it makes an enormous difference to women who live in remote<br />villages in dire poverty. In many cases, earnings from Shakti help them double their household<br />income. Much of the additional income goes to educating children, and also to purchasing<br />consumer durables such as television sets, which further expands the rural market for such<br />products. Some Shakti distributors -- whom the company calls quot;
entrepreneursquot;
-- invest the extra<br />money in buying vehicles such as motor scooters that allow them to go into more villages. <br />Indeed, with help from Shakti distributors, Hindustan Lever has been able to reach rural<br />consumers in thousands of remote Indian villages. According to media reports, Shakti distributors<br />now account for 15% of the company's sales in rural India. Meanwhile, the potential for growth is<br />enormous, since studies have shown that just 15% of Indian consumers use products such as<br />shampoo. According to Wharton's Raju, there are behavioural reasons why rural consumers<br />represent a sound bet for companies that are willing to invest in reaching them. quot;
Affluent<br />consumers demonstrate that they have 'arrived' by buying bigger houses or cars. People at lower<br />income levels do so by buying premium brands. This means brand loyalty is very high among less<br />affluent consumers. That is why the rural market is critical for companies. The first-mover<br />advantage is significant.quot;
<br />The Shakti model was piloted in 50 villages of the Nalgonda district in Andhra Pradesh. It has<br />now spread to more than a dozen states, creating 26,000 women distributors covering 80,000<br />villages. By 2010, the goal is to recruit 100,000 Shakti distributors covering 500,000 of India's<br />more than 600,000 villages. quot;
This initiative has been extremely successful,quot;
says Ajay Gupta,<br />CEO of www.ruralnaukri.com, a job site for the rural market.<br />In addition to the distribution network, the Shakti project includes Shakti Vani (or voice), a social<br />awareness program, and iShakti, a community portal. quot;
Desktop computers are set up in the homes<br />of Shakti entrepreneurs,quot;
says a Hindustan Lever spokesperson. quot;
These computers are equipped<br />with software developed by Unilever through which users can access content in categories<br />including education, employment, agriculture, health and entertainment. They can also ask<br />questions on any of these subjects and have them answered by experts.quot;
<br />iShakti is in its early days; it was launched in November 2004. The Vani project, however, is<br />operational in more than 20,000 villages in states like Madhya Pradesh, Karnataka, Chattisgarh<br />and Andhra Pradesh. Hindustan Lever has also tied up with partners such as Tata Consultancy<br />Services, India's largest software firm, which is actively involved with the iShakti portal, and<br />ICICI, a financial services institution that is involved with providing micro-credit loans. With the<br /> All materials copyright of the Wharton School of the University of Pennsylvania. Page 3 of 6 <br />Marketing to Rural India: Making the Ends Meet: India Knowledge@Wharton<br />( http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4172) network now in place, other companies want to hop on to the Shakti bandwagon. One service that<br />is likely to be added soon is insurance.<br />ITC's eChoupal Initiative<br />Another innovator in rural distribution -- the $3.6 billion, Calcutta-based tobacco-to-hotels<br />conglomerate ITC -- has also been trying to build a platform that others can use. At a recent<br />seminar on rural marketing, ITC chairman Y.C. Deveshwar outlined plans to create a trust that<br />could work as an agency through which companies -- both private and public -- could market<br />goods and services to Indian farmers. The trust route would hopefully make other companies<br />more willing to sign up with their offerings. ITC has the right credentials to launch this trust. Like<br />Hindustan Lever's project Shakti, its eChoupal venture has been the subject of several case<br />studies.<br />ITC's foray into an enhanced distribution network came from the recognition that the existing<br />agri-produce distribution channels were inefficient. The company exports various agricultural<br />products -- soybean, rice and wheat, to name a few. It needs to source them from farmers.<br />quot;
In 2000, ITC embarked on an initiative to deploy technology to reengineer the procurement of<br />soybeans from rural India,quot;
says S. Sivakumar, CEO of ITC's agri-business division. quot;
Kiosks --<br />called eChoupals -- consisting of a personal computer with Internet access were set up at the<br />villages.quot;
He explains that soybean farmers could access this kiosk for information on prices, but<br />had the choice to sell their produce either at the local market or directly to ITC at their hub<br />locations. A hub location services a cluster of eChoupals. By purchasing directly from the farmer,<br />ITC significantly improved the efficiency of the channel and created value for both the farmer and<br />itself.<br />quot;
While the eChoupal network was initiated to facilitate more efficient and effective procurement,<br />the connectivity -- both physical and informational -- between the farmer and the market that it<br />facilitated has allowed ITC to use it for distribution of goods and services from the market to the<br />farmer,quot;
says Sivakumar. It has thus evolved into a business platform.<br />The eChoupal infrastructure consists of:<br />A kiosk with Internet access in the house of a trained farmer, called a Sanchalak. This kiosk<br />is within walking distance of target farmers. <br />A warehousing hub managed by the former middleman, called a Samyojak. This is within a<br />tractor-driveable distance of target farmers. (The former middlemen were given a role to<br />avoid resistance to the project. They joined because they could see that their traditional<br />business was in jeopardy.) <br />A collaborative network of companies orchestrated by ITC with a pan-India presence. <br />This is, of course, a simplified structure. And there has been a stream of new initiatives. For<br />instance, in August 2004, ITC introduced the Choupal Sagar, a rural retail outlet at the hub. The<br />first was set up at Sehore in Madhya Pradesh. quot;
This 7,000 sq. ft. mall sells consumer goods as<br />well as agri-products,quot;
says Sivakumar.<br />The benefits to the farmer are obvious. And ITC itself gains. Apart from the more efficient<br />channel, there is money to be made from the reverse flow. In 2005-06, ITC generated $23 million<br />selling chemicals and fertilisers. That may not sound like much, but it's early yet. In a recent<br />move, ITC has set up its first urban outlet, the other end of the eChoupal chain, to retail fresh fruit<br /> All materials copyright of the Wharton School of the University of Pennsylvania. Page 4 of 6 <br />Marketing to Rural India: Making the Ends Meet: India Knowledge@Wharton<br />( http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4172) and vegetables.<br />What about other companies? Does it make sense for them to climb on the bandwagon?<br />Sivakumar gives the example of PI Industries, which has increased its market share in Madhya<br />Pradesh from 12.3% in 2003 to 33% in 2005 after partnering with ITC to sell through the<br />eChoupal. quot;
The eChoupal project is already benefiting more than 3.5 million farmers,quot;
says<br />Sivakumar. quot;
Over the next decade, the eChoupal network will cover more than 100,000 villages,<br />representing one-sixth of rural India, and create more than 10 million e-farmers.quot;
<br />Room for All<br />Both Project Shakti and eChoupal have been around for less than a decade. Which is likely to<br />succeed? Observers say there is place for both; the Indian rural market is huge. According to<br />Wharton's Raju, while Shakti and eChoupal are different in orientation -- one focuses on<br />individuals while the other is corporate-based -- each has been very successful in its own way.<br />quot;
You can't think of success just in financial terms,quot;
he says. quot;
Both projects have created<br />tremendous goodwill for Hindustan Lever and ITC.quot;
That is no small asset, especially for ITC,<br />whose initials once stood for Indian Tobacco Company. <br />Sivakumar claims the ITC model is superior because it involves two-way traffic. quot;
We are starting<br />with raising rural incomes,quot;
he says. quot;
The level of affordability in rural India is low. For<br />consumers to buy products, you have to first put more money in their pockets. We are creating a<br />virtuous circle of higher income, higher productivity and higher consumption.quot;
He adds that there<br />is a distinction between the commission paid to Shakti entrepreneurs and the micro-credit<br />arranged for them, and the eChoupals' efforts to raise rural incomes by improving agricultural<br />efficiency for the whole community. At Hindustan Lever, company officials are equally confident<br />about Project Shakti. They say they are in the business of creating entrepreneurs and arranging<br />micro-credit for them. This, too, has a catalyzing effect on the whole community. <br />Raju believes that the drive to gain access to rural retailers is, in some ways, as critical as the one<br />to reach consumers. quot;
If you look at rural retail in India, the outlet size is very small. Merchants<br />will often stock just one brand in a category; they do not have the resources to stock multiple<br />brands. They will stock the brand that sells the most.quot;
<br />This lesson has hardly been lost on Indian-owned companies. Over the coming months, the battle<br />for rural wallets will include not just European and U.S. multinationals but also fast-growing<br />Indian companies. A retail initiative by the $22.6 billion Reliance Industries is a case in point.<br />The Mukesh Ambani-led group plans to pump in $5.5 billion over the next few years to create a<br />farm-to-storefront infrastructure for a pan-India retail network. (Only part of this money is for the<br />rural component.) <br />Mukesh Ambani has company. Brother Anil Ambani, who parted ways with him in 2005, is<br />connecting rural India through Reliance Infocomm, a mobile services provider. Its network now<br />encompasses 240,000 towns and villages, accounting for 42% of the rural population. It plans to<br />double the rural coverage to 400,000 villages, making up 50% of the rural population.<br />There are many others. The rural initiative of the Mumbai-based $1.3 billion House of Godrej --<br />Godrej Aadhaar -- plans to set up 1,000 stores across India in the next five years. Delhi-based<br />telecom major Bharti Airtel chairman Sunil Mittal has tied up with Wal-Mart, which will need its<br />supply chain. From the Goenkas to the Gulabchands, from the Tatas to the Thapars, every major<br />Indian business group has plans to move into the hinterland. <br /> All materials copyright of the Wharton School of the University of Pennsylvania. Page 5 of 6 <br />Marketing to Rural India: Making the Ends Meet: India Knowledge@Wharton<br />( http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4172) Like Thoreau and Tolstoy, Gandhi, revered as the father of modern India, believed that the<br />country's future lay in her villages. These days, every marketer would agree. <br />This is a single/personal use copy of India Knowledge@Wharton. For multiple copies, custom<br />reprints, e-prints, posters or plaques, please contact PARS International: reprints@parsintl.com P.<br />(212) 221-9595 x407. <br /> All materials copyright of the Wharton School of the University of Pennsylvania. Page 6 of 6 <br />Marketing to Rural India: Making the Ends Meet: India Knowledge@Wharton<br />( http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4172)<br />