Time Share Resort - Prakriti

1. Rural Marketing
Case study – 9.1
Name Roll No. Email Id’s Contact Number
Sriju Nair A68 sriju.nair2015@sims.edu +91 8390937944
Umesh Sharma A71 umesh.sharma2015@sims.edu +91

2. Honda Motor Co., Ltd.Hero Motocorp Ltd
1984—Hero Honda Motors Ltd. incorporated

3.  According to NSSO – Indian households
own two wheeler-
Urban – 25%
Rural – 8%
 Quick to realize - Huge opportunity waiting
to be tapped
 2007- Hero Honda started putting emphasis
on the rural markets
1
 The company started a separate 'rural vertical’
to focus on -
 Product development
 Consumer understanding
 Marketing
 Distribution
 After–sale Service
2
Har
Gaon
Har
Aangan
Penetration in rural market -10%
500 sales representatives to meet
potential customer
local people as sales executives
Given work tasks rather than sales
targets
Average of 16000 bikes per month
( sale)
3
"The majority of India lives in rural areas and the
government is pumping in a lot of money
through various programmers. Hero Honda is
focusing a lot on rural markets. Going forward,
a substantial industry growth is expected to
come from these markets.”
-Pawan Munjal, MD and CEO, Hero Honda Motors
Limited,

4. Dealer
Sub
Sub
Sub
Sub
Sub
Sub
…….…….
Promotional
activities
Provide
broad
guidelines
Helping
them tie up
with banks
Recruiting &
training
Free service and check-up camps
Consultations and obtaining driving licenses
Safe riding educational programs
Health check-ups and awareness camp
“Sikhao Baliye”

5. Regular meeting with community leader who play a
main role in shaping buying decisions in their
vicinity –
• Sarpanches
• Headmasters
• Aanganwadi
• Workers
• Opinion makers
 Aim is to form a long-term relationship
 Sales ride more on word-of-mouth publicity
rather than advertising
 Armed with pamphlets and brochures on
hero Honda bikes and ready to answer any
query related to the products
 No aggressive selling
Company focus is on long term profit &
relationship

6. It’s very important to convince village buyers that there’s no better deal available
Villagers take a long time in making inquiries about prices- price lists are placed
across the district at places such as tea shops , tailors shop and Panchayat office.
Sales camp – bikes been trucked in for the day and are on display.
Buyers are free to walk around, touch and feel the bikes and are rarely pushed into
a sale unless they express interest
Test drives, safety awareness and tips on engine maintenance

7. Selling and distribution efficiency is key to success in rural markets
Executives believe that collaborative channels
will become a dominant force in the future.
However, very few organizations are actually
pursuing the strategy.
In fact, only 4 percent say their organizations are
collaborating with non-competing companies to
penetrate rural markets
75%

8. Companies need to master three steps to achieve profitable and sustainable growth in rural
markets —reaching, acquiring and retaining customers
•A robust approach to the last mile
• Focus on market expansion
• Create sustainable channel
relationships
• Create trust and relevance through
an ecosystem of stakeholders
• Define unique value proposition
for rural customers
• Engage the right set of influencers
• Retain them by fulfilling promises
• Brand building & Brand recall
• Develop new/ upgrade purchase
behaviour
• Stimulate interest and new
demand
STEP 1 - Reach STEP 2 - Acquire STEP 3 - Retain
Adapt organizational structure and
secure leadership buy-in
Create a winning talent management
strategy
Use technology to create advantage

9. • Campaign is the choice of media vehicles. DD’s reach in the rural areas is a good enough bet to reach the
target customer
• To ensure that the village customer doesn’t postpone buying a two wheeler just because there’s no cash in
hand, the company has to enter into numerous vehicle finance tie-ups with NBFCs, cooperative banks and
regional rural banks
• The core idea is to take the brand to the customer when they are in a happy mood. And these happy times are
linked to good harvests, festivals and marriages when there is cash in hand
• The new advertising campaign with the celebrities will help us in gaining market share in the rural markets.
• Focused marketing strategies-To succeed in rural marketing, companies will need to adapt the 4ps of
marketing and 4As in their strategy- awareness , access, availability and affordability