MARKETING OF VOLTAGE STABILIZERS IN RURAL MARKET SUBMITTED BY: MOHIT AGARWAL  (8101) NIRAJ CHOHAN  (8111) ARVIND GUPTA  (8...
WHAT MAKES RURAL MARKETS ATTRACTIVE? FMCG  65000  crore  Consumer Durables  5000 crore  Agri-inputs (incl. tractors)  4500...
RURAL MARKET HAS ARRIVED <ul><li>Some impressive facts about the rural sector. </li></ul><ul><ul><li>There are nearly 42,0...
RURAL MARKET HAS ARRIVED <ul><ul><li>Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from th...
RURAL MARKET BECOMES ATTRACTIVE TO CORPORATES <ul><li>The Rural Market is being seen as a Growing Opportunity mainly becau...
RURAL INCOME DISPERSAL PROJECTION All figures in % Consumer Class Annual Income 1995-96 2006-07 Very Rich Above Rs 215,000...
DISTRIBUTION OF VILLAGES 17% of villages account for 50% of rural population & 60% rural wealth Hardly any shops in these ...
DISTRIBUTION OF TOWNS IN INDIA 90 % of durables purchased by rural people are from these 1900 towns  Source: Businessworld...
SOCIO-ECONOMIC POSITION <ul><li>Low purchasing power & Per Capita Income </li></ul><ul><li>Bounded by tradition, culture, ...
<ul><li>Literacy Level </li></ul><ul><ul><li>Rural India has a literacy rate of 28% compared to 55% of the whole country <...
<ul><li>Buying Behavior </li></ul><ul><ul><ul><ul><li>Factors that Influence </li></ul></ul></ul></ul><ul><ul><ul><ul><li>...
VOLTAGE STABLIZER  POWERLINE Vs 5000 Vs 500
VOLTAGE STABILIZER <ul><li>Acc to Wikipedia:  A  voltage stabilizer  is an electronic device able to deliver relatively co...
WHY VOLTAGE STABLIZER IN RURAL MARKET? <ul><li>Generally electricity is misused in Rural Areas </li></ul><ul><li>There are...
4P’S OF MARKETING OF VOLTAGE STABILIZER
WEIGHT: 39 LBS DIMENSIONS(LXBXH): 17&quot; X 13&quot; X 12&quot; <ul><li>VS 5000 </li></ul><ul><li>Converts 110/120 V to 2...
<ul><li>VS 500 </li></ul><ul><li>Converts 110/120 V to 220/240 V OR converts 220/240 V to 110/120 V (switch is on back of ...
REPORTED STATUS OF RURAL ELECTRIFICATION
PLACE  AGRICULTURE INCOME INCOME LEVEL POPULATION COMPETITORS INFRASTUCTURE ELECTRICITY  FACTORS CONSIDERING SEGEMENTATION...
RURAL PRICING <ul><li>The product design will not be very complex. </li></ul><ul><li>The stabilizer will be produced using...
DISTRIBUTION <ul><li>We plan to make the Product available at every corner of the country. </li></ul><ul><li>The Regional ...
SELLING AND DISTRIBUTION <ul><li>In order To spread Awareness in Rural Areas: </li></ul><ul><li>We plan to Convince throug...
SELLING AND DISTRIBUTION <ul><li>The product will be made available at: </li></ul><ul><li>Hardware & Electric Stores. </li...
AVAILABILITY OF DISTRIBUTION CENTERS'  AT EVERY CENTRAL LOCATION   (SALES AND SERVICE INFRASTRUCTURE)
RURAL COMMUNICATION <ul><li>“ A rural consumer is brand loyal and understands symbols better.” </li></ul><ul><li>Advertisi...
PROMOTION/ADVERTISING <ul><li>For Advertising powerline mainly focus on the National language to be used in Advertisements...
LOCAL RESOURCES OF ADVERTISING
PRODUCT LIFE CYCLE OF POWERLINE <ul><li>INTRODUCTION STAGE: </li></ul><ul><li>Not having place in stablizer market. </li><...
<ul><li>GROWTH STAGE: </li></ul><ul><li>  Improving product quality and adding new features. </li></ul><ul><li>Increase di...
<ul><li>MATURITY STAGE: </li></ul><ul><li>Here powerline will try to Expand number of brand users by </li></ul><ul><ul><li...
NHJBH` <ul><li>Declining stage: </li></ul><ul><li>Adding new verticals to existing products. </li></ul><ul><li>Heavy promo...
 
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Final Rural

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Final Rural

  1. 1. MARKETING OF VOLTAGE STABILIZERS IN RURAL MARKET SUBMITTED BY: MOHIT AGARWAL (8101) NIRAJ CHOHAN (8111) ARVIND GUPTA (8123) SUNIL SINGH (8155) GAUTAM UDHWANI (8158) JYOTI PANCHMATIA (8199) PROJECT ON MARKETING STRATEGY FACULTY : Prof. VIKAS RAI
  2. 2. WHAT MAKES RURAL MARKETS ATTRACTIVE? FMCG 65000 crore Consumer Durables 5000 crore Agri-inputs (incl. tractors) 45000 crore 2/4 Wheelers 8000 crore
  3. 3. RURAL MARKET HAS ARRIVED <ul><li>Some impressive facts about the rural sector. </li></ul><ul><ul><li>There are nearly 42,000 rural haats (supermarket) in India. </li></ul></ul><ul><ul><li>In 2002-03 ,LIC sold 50% of its policies in rural India </li></ul></ul><ul><ul><li>Of two million BSNL mobile connections, 50% in small towns/villages. </li></ul></ul><ul><ul><li>More than half of HLL’s annual sales of Rs. 11,700 crore come from the rural market </li></ul></ul><ul><ul><li>30 million Kisan Credit Cards (KCC) issued so far exceed the 25 million credit-plus-cards issued in urban. A whopping Rs 65,000 crore has been sanctioned under the KCC scheme. </li></ul></ul>Source: Businessworld Whitebook, 2005
  4. 4. RURAL MARKET HAS ARRIVED <ul><ul><li>Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site </li></ul></ul><ul><ul><li>42 million rural House Holds availing banking services in comparison to 27 million urban House Holds. </li></ul></ul><ul><ul><li>Investment in formal savings instruments: 6.6 million House Holds in rural and 6.7 million in urban </li></ul></ul>Source: Businessworld Whitebook, 2005
  5. 5. RURAL MARKET BECOMES ATTRACTIVE TO CORPORATES <ul><li>The Rural Market is being seen as a Growing Opportunity mainly because of the following </li></ul><ul><ul><li>Rural Demand is growing rapidly </li></ul></ul><ul><ul><li>Purchasing power has increased </li></ul></ul><ul><ul><li>Cut Throat competition in the Urban Markets </li></ul></ul><ul><ul><li>Rural market is largely unexplored and untapped </li></ul></ul><ul><ul><li>There would be opportunities for new entrants as compared to urban population being loyal to specific brands </li></ul></ul><ul><ul><li>The volume and the strength of the rural population </li></ul></ul>
  6. 6. RURAL INCOME DISPERSAL PROJECTION All figures in % 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
  7. 7. DISTRIBUTION OF VILLAGES 17% of villages account for 50% of rural population & 60% rural wealth Hardly any shops in these 2.2 lac villages *The total number of villages include uninhabited ones adds upto 638,365 Source: Businessworld Whitebook, 2005 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 5001-1000 18,758 3.2 Total no of villages* 593,154 100.0
  8. 8. DISTRIBUTION OF TOWNS IN INDIA 90 % of durables purchased by rural people are from these 1900 towns Source: Businessworld Whitebook, 2005 Town Class Population No of towns (2001) Literacy (%) Class I 1 lac and above 423 82 Class II 50,000-99,999 498 79 Class III 20,000- 49,999 1386 77 Class IV 10,000- 19,999 1560 76 Class V 5,000- 9,999 1057 76 Class VI less than 5000 237 80 Total no of towns   5161 80
  9. 9. SOCIO-ECONOMIC POSITION <ul><li>Low purchasing power & Per Capita Income </li></ul><ul><li>Bounded by tradition, culture, religion & community </li></ul><ul><li>60% of rural income is from Agriculture </li></ul><ul><li>More than 50% rural households have monthly income < Rs 25,000 </li></ul><ul><li>About 14% have income > Rs. 50,000 </li></ul><ul><li>In recent years, 70% rural households have started saving/investing their income </li></ul><ul><li>Culturally a Diverse & Heterogeneous Market in terms of Religious, linguistic, social & cultural factors </li></ul><ul><li>State to State variation in extent of development </li></ul>
  10. 10. <ul><li>Literacy Level </li></ul><ul><ul><li>Rural India has a literacy rate of 28% compared to 55% of the whole country </li></ul></ul><ul><li>Lifestyle </li></ul><ul><ul><li>Conservative & tradition bound </li></ul></ul><ul><ul><li>There has been a change in the same over the years though with </li></ul></ul><ul><ul><ul><ul><li>Increase in Income </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Growth in Education </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Greater Media Penetration </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Marketers efforts to reach and capture the rural market’s </li></ul></ul></ul></ul>
  11. 11. <ul><li>Buying Behavior </li></ul><ul><ul><ul><ul><li>Factors that Influence </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Literacy level </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Occupation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Social & Cultural Factors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Exposure to Media </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Marketer’s Efforts </li></ul></ul></ul></ul><ul><li>The buying behavior has undergone a major change. A huge population in rural areas has seen an increase in their income as a result of which they have the potential to buy expensive/luxury products </li></ul>
  12. 12. VOLTAGE STABLIZER POWERLINE Vs 5000 Vs 500
  13. 13. VOLTAGE STABILIZER <ul><li>Acc to Wikipedia: A voltage stabilizer is an electronic device able to deliver relatively constant output voltage while input voltage and load current changes over time. </li></ul><ul><li>Voltage stabilizer can also be referred as Voltage Regulator. </li></ul>
  14. 14. WHY VOLTAGE STABLIZER IN RURAL MARKET? <ul><li>Generally electricity is misused in Rural Areas </li></ul><ul><li>There are cases of theft of electricity with the help of Hook, so many establishments benefit illegally, voltage gets fluctuated </li></ul><ul><li>So there are many cases of damage of electric appliances and fire due to voltage fluctuation. </li></ul><ul><li>So we believe voltage stablizer will be on more demand in rural market </li></ul>
  15. 15. 4P’S OF MARKETING OF VOLTAGE STABILIZER
  16. 16. WEIGHT: 39 LBS DIMENSIONS(LXBXH): 17&quot; X 13&quot; X 12&quot; <ul><li>VS 5000 </li></ul><ul><li>Converts 110/120 V to 220/240 V OR converts 220/240 V to 110/120 V (switch is on back of unit) </li></ul><ul><li>Compatible with 50Hz/60Hz. </li></ul><ul><li>This stabilizer can regulate big range fluctuating voltage into general voltage output. </li></ul><ul><li>Input Voltage AC 75V-130V or 180V-260V. </li></ul><ul><li>Output Voltage: AC 110V+-4% or AC220V+-4%. </li></ul><ul><li>On/Off switch with indicator lamp </li></ul><ul><li>Analog meter on front of unit shows exact output voltage </li></ul><ul><li>Voltage stabilizer good for countries with unstable voltage supply </li></ul><ul><li>5 outlets on front of unit. </li></ul><ul><li>Heavy-duty metal casing and durable design </li></ul><ul><li>Comes with round and flat pin plugs </li></ul><ul><li>Fuse protected </li></ul>Product specification
  17. 17. <ul><li>VS 500 </li></ul><ul><li>Converts 110/120 V to 220/240 V OR converts 220/240 V to 110/120 V (switch is on back of unit) </li></ul><ul><li>Compatible with 50Hz/60Hz. </li></ul><ul><li>This stabilizer can regulate big range fluctuating voltage into general voltage output. </li></ul><ul><li>Input Voltage AC 75V-130V or 180V-260V. </li></ul><ul><li>Output Voltage: AC 110V+-4% or AC220V+-4%. </li></ul><ul><li>On/Off switch with indicator lamp </li></ul><ul><li>Analog meter on front of unit shows exact output voltage </li></ul><ul><li>Voltage stabilizer good for countries with unstable voltage supply </li></ul><ul><li>2 outlets on front of unit </li></ul><ul><li>Heavy-duty metal casing and durable design </li></ul><ul><li>Comes with round and flat pin plugs </li></ul><ul><li>Fuse protected </li></ul>Weight: 11 lbs Dimensions(LxBxH): 10&quot; X 7&quot; X 5&quot; Product specification
  18. 18. REPORTED STATUS OF RURAL ELECTRIFICATION
  19. 19. PLACE AGRICULTURE INCOME INCOME LEVEL POPULATION COMPETITORS INFRASTUCTURE ELECTRICITY FACTORS CONSIDERING SEGEMENTATION AND TARGETING
  20. 20. RURAL PRICING <ul><li>The product design will not be very complex. </li></ul><ul><li>The stabilizer will be produced using a simple electro-magnetic coil and circuits. </li></ul><ul><li>The exterior Body will be made of Aluminium. </li></ul><ul><li>The Stabilizer will be Light weight,easy to carry. </li></ul><ul><li>Two models will be available,1) one for domestic use and another with 2) greater power for organizational/office/ establishments use. </li></ul><ul><li>The Pricing range would be 300 to 500 Rs. </li></ul>
  21. 21. DISTRIBUTION <ul><li>We plan to make the Product available at every corner of the country. </li></ul><ul><li>The Regional Offices will be situated at all the Capitals. </li></ul><ul><li>(They will take care of administration,revenue, Promotions and H.R) </li></ul><ul><li>Whereas the Manufacturing,Sales and service and distribution centres will be set up at the centre point of every state,which will facilitate convenient movement and efficient Supply Chain. </li></ul><ul><li>(They will conduct Order fulfillment, Replenishment, Servicing) </li></ul>COMPANY WHOLESALER /STOCKIST DEALER CUSTOMER
  22. 22. SELLING AND DISTRIBUTION <ul><li>In order To spread Awareness in Rural Areas: </li></ul><ul><li>We plan to Convince through Product demonstrations </li></ul><ul><li>Target : </li></ul><ul><li>Hardware,electric shops. </li></ul><ul><li>Technical workers like Electricians,Contractors etc. </li></ul><ul><li>Word of mouth: </li></ul><ul><li>Through Sarpanch’s. </li></ul><ul><li>Through Decision Influencers. </li></ul><ul><li>College professors teaching in Technical institutes. </li></ul>
  23. 23. SELLING AND DISTRIBUTION <ul><li>The product will be made available at: </li></ul><ul><li>Hardware & Electric Stores. </li></ul><ul><li>Product will be Available for Demonstration. </li></ul><ul><li>Order Booking </li></ul><ul><li>The Shop-Owner will take orders and contact with the distribution centers. </li></ul><ul><li>In every village, at every Point of Purchase a Co’s service man will be stationed, who will take care of installations and repairs. </li></ul><ul><li>Training and Development </li></ul><ul><li>The Shop owner’s and Service man will be Trained by the co once. </li></ul><ul><li>The service man and shopkeeper will be invisible hand behind the rural sales. </li></ul><ul><li>Earnings through Commission basis. </li></ul><ul><li>Medium Targets and Incentive basis </li></ul>
  24. 24. AVAILABILITY OF DISTRIBUTION CENTERS' AT EVERY CENTRAL LOCATION (SALES AND SERVICE INFRASTRUCTURE)
  25. 25. RURAL COMMUNICATION <ul><li>“ A rural consumer is brand loyal and understands symbols better.” </li></ul><ul><li>Advertising & Promotions will be done through Mass Media: T.V’S,Radio. </li></ul><ul><li>Outdoor Display: Wall Paintings, Hoardings. </li></ul><ul><li>Below the Line (BTL): Point of purchase Stickers, Cardboard stand-ups, Pamplets. </li></ul>
  26. 26. PROMOTION/ADVERTISING <ul><li>For Advertising powerline mainly focus on the National language to be used in Advertisements. As it is acceptable in the Rural Area and powerline also prefer the use of Regional languages. That means the local language of the territory is used along with the National language, as it will be easy for the people to accept it. </li></ul><ul><li>As for the Rural Markets the Advertisements are basically done by local as well as other major resources like T.V. & Radio. But powerline will enforce much on the local resources available for the promotion of the product along with major ones like T.V. & Radio. </li></ul>
  27. 27. LOCAL RESOURCES OF ADVERTISING
  28. 28. PRODUCT LIFE CYCLE OF POWERLINE <ul><li>INTRODUCTION STAGE: </li></ul><ul><li>Not having place in stablizer market. </li></ul><ul><li>Focus of sales rather than profit. </li></ul><ul><li>More promotional activities. </li></ul><ul><li>Try to expand powerline’s market share </li></ul>
  29. 29. <ul><li>GROWTH STAGE: </li></ul><ul><li>  Improving product quality and adding new features. </li></ul><ul><li>Increase distribution coverage and enter new distribution channels. </li></ul><ul><li>Advertising strategies will shift from product-awareness advertising to product-preference advertising. </li></ul><ul><li>Enter new market segments, which will be CENTRAL (Madhya Pradesh & Rajasthan) NORTH (Punjab, Haryana) SOUTH (Andhra Pradesh, Tamil Nadu, Karnataka &Kerala) </li></ul>
  30. 30. <ul><li>MATURITY STAGE: </li></ul><ul><li>Here powerline will try to Expand number of brand users by </li></ul><ul><ul><li>Converting non-users into users. </li></ul></ul><ul><ul><li>Entering new market segments. </li></ul></ul><ul><ul><li>Winning competitors’ customers. </li></ul></ul><ul><ul><li>Convince current users   </li></ul></ul><ul><li>powerline will also modify marketing mix of products. Prices </li></ul><ul><li>Distribution, Advertising, Sales promotion, Personal selling, Services </li></ul><ul><li>Monitor market – competitors reaction? </li></ul><ul><li>  </li></ul>
  31. 31. NHJBH` <ul><li>Declining stage: </li></ul><ul><li>Adding new verticals to existing products. </li></ul><ul><li>Heavy promotion. </li></ul><ul><li>Research and development. </li></ul>

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