Godrej Rural Project

Presented by : Garima Verma Vivek Sharma

Indian Rural Market •Some facts about Indian Rural markets are as following:

oIndia has 72% of the total population in the rural areas. oThe rural market is not fully developed and it has very low literacy rate.

But it has very good potential keeping in mind the number of people .residing there.

Indian Rural Market

The importance of the rural market for some FMCG and durable marketers is underlined by the fact that the rural market accounts for close to 70 per cent of toilet-soap users and

38 per cent of all two-wheeler purchased.

Why Indian Rural Market is growing?

◦The income level and the distribution of income is becoming equal and balanced. So the people in the rural areas have the same opportunity of growth as the people of urban areas have.

Good support from the private as well as the government agencies is provided for the development of the rural area people. Institutions like IFCI, SIDBI, ICICI introduced many schemes which are resulting into the development of rural area people.

◦The scope in the urban area is restricted due to the dominance of the big and multinational company. So, many small scale industries came in the rural areas resulting into the development of the rural area.

Barriers of Growth in Rural Market

◦The income level is still not matching to the urban market.

◦The knowledge and education level is low.

◦Less chances available for growth. Still here people prefer to go outside to the urban areas for the job and other things.

◦The infrastructure is not so much available.

◦Traditional way of thinking.

The 4A Approach

Availability Affordability Acceptability Awareness

Why companies are focusing towards rural market

◦Due to the huge potential. ◦Restriction in the urban markets. ◦Future growth chances. ◦Consumption rate or volume sales is high.

Introduction to Godrej Consumer Product Ltd.

◦Godrej Consumer Products Ltd. (GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, household, and fabric care segments.

◦The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi (H.P.).

GCPL Product Portfolio

◦Soap Cinthol Evita Godrej No. 1 Fair Glow

◦Toiletries Cinthol Talc Godrej No. 1 Talc Fair Glow cream Godrej shaving

cream Cinthol perfumes

◦Hair care Godrej hair color dye Renew woman hair

dye Nupur hair dye Color soft hair color

◦Household care Godrej Dish wash

liquid Godrej Glossy

◦Fabric care Godrej Ezee

Godrej Rural Marketing Strategy (Godrej No. 1 Soap)

◦ Godrej introduced Godrej No.1 soap enriched with natural ingredients trusted by millions, the flagship brand of Godrej Consumer Products Ltd, is now the largest selling Grade 1 Soap.

◦ Grade 1 is the highest standard laid down by the Bureau of Indian Standards (BIS). Godrej introduced it in competition with the Santoor, Breeze. Godrej in the initial stage introduced it as a mid segment soap but after sometime it’s price was reduced and targeted to the rural area.

◦Variation strategy: Godrej introduced many variants to extend the product line of soap. It introduced 6 variants in the soap category. it also introduced different product category like talc, shampoo under the name of Godrej No. 1.

Consumer behavior of rural customers

◦Price conscious people. ◦People having Less knowledge. ◦Less quality conscious people. ◦People looking value for money

product. ◦Indulge in less Pre-purchase analysis.

Godrej distribution strategy:

◦Godrej Soaps has set up a committee to improve and leverage distribution in the rural markets of less than 5,000 population strata.

◦The company has put in place three experiments which will enable it to draw up a plan to tap this relatively new market which holds a high growth potential for the future.

◦Based on the success of these experiments, they will roll it out within the next 12 months.

◦The company had also carried out certain experiments in the below 10,000 population strata rural markets to leverage distribution.

How did they beat the competition? There main competitors are Breeze (HLL

product), Santoor (Wipro Product). Godrej differentiated from these on the base of the following factors:

◦ They differentiated themselves on the base of the low price soap but having the good quality. They created the flagship of the no. 1 quality and they were able to succeed in it.

◦ They had a very vast network of distributions in the rural area. So, they were able to reach to the customer in the rural area.

◦ They also had the bond with the rural people as they were producing many agricultural and household products

Promotional tools used by GCPL

◦ Events.

◦ Advertising. Billboard Hoarding Wall painting Electronic media. Print media

Promotional Strategy ◦ They relied heavily on the mass advertising like

on the TV, radio, and newspaper. ◦ They also in the rural areas used the wall

painting, hoardings etc.

Promotional Strategy They conducted the events in which

the rural people have the interest. Some of the events mentioned below:

GODREJ Consumer Products Ltd (GCPL), has roped in Mona Singh to be the brand ambassador for Godrej No.1 soaps.

◦ The new Godrej No. 1 ad takes a typical situation inside any Indian home. The theme of the campaign revolves around the proverbial statement.All that Glitters is not Gold... All soaps are not Grade I quality soaps.

◦ The campaign educates people the advantages of using Grade I quality soaps that produce more lather, last longer and thus is a great value-for-money proposition. (75 gm bar of Grade III toilet soap would last for 28 baths compared to Grade I soap which lasts much longer .)

Godrej Aadhaar

Godrej Aadhaar is the India’s first agri service cum rural retail venture of Godrej Agrovet, an initiative started to strengthen its age old relations with the Indian farmers.

Godrej Aadhaar - Khushiyon Ka, Khushhali Ka',

Godrej AadhaarThe uniqueness of Godrej Aadhaar lies in

their ability to touch the lives of the Indian farmers, their families and their communities by offering great value propositions all under one roof. The large format retail stores under Godrej Aadhaar mark the beginning of a chain which shall form the farmer’s Aadhaar for “Unnati, Ghar Sansar and Gaon”.

RURAL SOLUTIONIt is a complete solution provider

for the Indian farmers and provides professional guidance with an objective to improve productivity, higher returns and improved cost benefit ratio.

Working modelEach Aadhar outlet services around 20

villages in its radius. Every Aadhar has a team of qualified Agronomists who interacts with farmers on a daily basis and travels to the villages in the interior to educate them on farm practices. They ask and advice the farmer on the site

and help them for better

productivity.

FutureIt is planning to set up at least

1,000 stores across rural India in the next five years.

The company will invest an estimated Rs 750 crore to roll out the retail venture across the country and is in the process of roping in corporates to partner in the venture.

The mini petrol pumps for desiel supply

The G.A is collaborated with many Indian companies to target the untapped market of India.

TATAFUTURE GPAPOLLO PHARCY -Aadhaar outlets

called Apollo Aadhaar Pharmacy Are some of the companies which

have joined hands to make there presence in this market

Godrej AgrovetEmpowering rural india and fuelling

growth with SAPIntegrated Information System improves

productivity and adds value across the entire agricultural Supply Chain of Farmers, Customers and Suppliers

Achieving operational efficiency through centralization of data across a regional network of more than 10,000 rural distributors, 18000 farmers and 1900 employees

Chotukool, the chotu Refrigerator from Godrej for Rural India [Tech Innovation]

Features:No compressorOpens from topRuns on batteries7.8 kgsHalf the power consumption viz. regular refrigeratorsRs. 3250/-20 parts as compared to 200 parts in regular refrigerators.

Project dharti The program's goals are: to generate sales in rural India that

overtake within a year the contribution of the country's urban areas;

that rural sales growth will outstrip overall sales increases;

and that GCPL's distribution network within three years will have expanded to 50,000 villages and 8,000 small towns across India.

Project dharti

The Four Mantras of Successful Rural Marketing

1.Customize product and communication; 2.Build recognition through demonstration; 3.Build word of mouth for the brand; 4.Build access through innovation and a cost-

effective distribution channel