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 STRATEGYFACULTY : Prof. VIKAS RAI

PROJECT ON MARKETING STRATEGYFACULTY : Prof. VIKAS RAI

WHAT MAKES RURAL MARKETS ATTRACTIVE?

FMCG 65000 crore Consumer Durables 5000 crore Agri-inputs (incl. tractors) 45000 crore 2/4 Wheelers 8000 crore

RURAL MARKET HAS ARRIVED

Some impressive facts about the rural sector.– There are nearly 42,000 rural haats

(supermarket) in India.– In 2002-03 ,LIC sold 50% of its policies in rural

India– Of two million BSNL mobile connections, 50% in

small towns/villages.– More than half of HLL’s annual sales of Rs. 11,700

crore come from the rural market– 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.

Source: Businessworld Whitebook, 2005

RURAL MARKET HAS ARRIVED

– Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site

– 42 million rural House Holds availing banking services in comparison to 27 million urban House Holds.

– Investment in formal savings instruments: 6.6 million House Holds in rural and 6.7 million in urban

Source: Businessworld Whitebook, 2005

RURAL MARKET BECOMES ATTRACTIVE TO CORPORATES

• The Rural Market is being seen as a Growing Opportunity mainly because of the following

– Rural Demand is growing rapidly

– Purchasing power has increased

– Cut Throat competition in the Urban Markets

– Rural market is largely unexplored and untapped

– There would be opportunities for new entrants as compared to urban population being loyal to specific brands

– The volume and the strength of the rural population

RURAL INCOME DISPERSAL PROJECTION

Consumer ClassAnnualIncome

1995-96 2006-07

Very RichAbove Rs 215,000

0.3 0.9

Consuming Class

Rs 45,001- 215,000

13.5 25.0

ClimbersRs 22,001-

45,00031.6 49.0

AspirantsRs 16,001 -

22,00031.2 14.0

DestitutesRs 16,000 &

Below23.4 11.1

Total 100.0 100.0

All figures in %

DISTRIBUTION OF VILLAGESPopulation No of villages % of total

villagesLess 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

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

DISTRIBUTION OF TOWNS IN INDIA

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

90 % of durables

purchased by rural

people are from these

1900 towns

Source: Businessworld Whitebook, 2005

SOCIO-ECONOMIC POSITION• Low purchasing power & Per Capita Income• Bounded by tradition, culture, religion & community• 60% of rural income is from Agriculture• More than 50% rural households have monthly

income < Rs 25,000• About 14% have income > Rs. 50,000• In recent years, 70% rural households have started

saving/investing their income• Culturally a Diverse & Heterogeneous Market in

terms of Religious, linguistic, social & cultural factors

• State to State variation in extent of development

Literacy Level Rural India has a literacy rate of 28% compared to

55% of the whole country

Lifestyle Conservative & tradition bound There has been a change in the same over the years

though with Increase in Income Growth in Education Greater Media Penetration Marketers efforts to reach and capture the rural market’s

Buying BehaviorFactors that Influence Literacy level Occupation Social & Cultural Factors Exposure to Media Marketer’s Efforts

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

VOLTAGE STABLIZER

POWERLINE

Vs 5000 Vs 500

VOLTAGE STABILIZER

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.

Voltage stabilizer can also be referred as Voltage Regulator.

WHY VOLTAGE STABLIZER IN RURAL MARKET?

• Generally electricity is misused in Rural Areas

• There are cases of theft of electricity with the help of Hook, so many establishments benefit illegally, voltage gets fluctuated

• So there are many cases of damage of electric appliances and fire due to voltage fluctuation.

• So we believe voltage stablizer will be on more demand in rural market

4P’S OF MARKETING OF VOLTAGE STABILIZER

WEIGHT:39 LBS

DIMENSIONS(LXBXH):17" X 13" X 12"

VS 5000• Converts 110/120 V to 220/240 V OR converts 220/240 V to 110/120 V (switch is

on back of unit) • Compatible with 50Hz/60Hz. • This stabilizer can regulate big range fluctuating voltage into general voltage

output. • Input Voltage AC 75V-130V or 180V-260V. • Output Voltage: AC 110V+-4% or AC220V+-4%. • On/Off switch with indicator lamp • Analog meter on front of unit shows exact output voltage • Voltage stabilizer good for countries with unstable voltage supply • 5 outlets on front of unit. • Heavy-duty metal casing and durable design • Comes with round and flat pin plugs• Fuse protected

Product specification

VS 500• Converts 110/120 V to 220/240 V OR converts 220/240 V to 110/120 V (switch is

on back of unit) • Compatible with 50Hz/60Hz. • This stabilizer can regulate big range fluctuating voltage into general voltage

output. • Input Voltage AC 75V-130V or 180V-260V. • Output Voltage: AC 110V+-4% or AC220V+-4%. • On/Off switch with indicator lamp • Analog meter on front of unit shows exact output voltage • Voltage stabilizer good for countries with unstable voltage supply • 2 outlets on front of unit• Heavy-duty metal casing and durable design • Comes with round and flat pin plugs • Fuse protected

Weight:11 lbs

Dimensions(LxBxH):10" X 7" X 5"

Product specification

REPORTED STATUS OF RURAL ELECTRIFICATION

PLACE

AGRICULTURE INCOMEINCOME LEVELPOPULATIONCOMPETITORSINFRASTUCTUREELECTRICITY

FACTORS CONSIDERING SEGEMENTATION AND TARGETING

RURAL PRICING

The product design will not be very complex. The stabilizer will be produced using a simple

electro-magnetic coil and circuits. The exterior Body will be made of Aluminium. The Stabilizer will be Light weight,easy to carry. Two models will be available,1) one for

domestic use and another with 2) greater power for organizational/office/ establishments use.

The Pricing range would be 300 to 500 Rs.

DISTRIBUTION We plan to make the Product available at every

corner of the country. The Regional Offices will be situated at all the

Capitals. (They will take care of administration,revenue, Promotions and H.R) 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.

(They will conduct Order fulfillment, Replenishment, Servicing)

COMPANY

WHOLESALER

/STOCKISTDEALER CUSTOME

R

SELLING AND DISTRIBUTION

In order To spread Awareness in Rural Areas: We plan to Convince through Product

demonstrations Target : Hardware,electric shops. Technical workers like Electricians,Contractors etc. Word of mouth: Through Sarpanch’s. Through Decision Influencers. College professors teaching in Technical institutes.

SELLING AND DISTRIBUTION The product will be made available at: Hardware & Electric Stores. Product will be Available for Demonstration. Order Booking The Shop-Owner will take orders and contact with the

distribution centers. In every village, at every Point of Purchase a Co’s service man

will be stationed, who will take care of installations and repairs.

Training and Development The Shop owner’s and Service man will be Trained by the co

once. The service man and shopkeeper will be invisible hand behind

the rural sales. Earnings through Commission basis. Medium Targets and Incentive basis

AVAILABILITY OF DISTRIBUTION CENTERS' AT EVERY CENTRAL LOCATION (SALES AND SERVICE INFRASTRUCTURE)

RURAL COMMUNICATION

“A rural consumer is brand loyal and understands symbols better.”

Advertising & Promotions will be done through Mass Media: T.V’S,Radio.

Outdoor Display: Wall Paintings, Hoardings. Below the Line (BTL): Point of purchase Stickers,

Cardboard stand-ups, Pamplets.

PROMOTION/ADVERTISING

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.

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.

LOCAL RESOURCES OF ADVERTISING

PRODUCT LIFE CYCLE OF POWERLINE

INTRODUCTION STAGE: Not having place in stablizer market. Focus of sales rather than profit. More promotional activities. Try to expand powerline’s market share

GROWTH STAGE:  Improving product quality and adding new

features. Increase distribution coverage and enter new

distribution channels. Advertising strategies will shift from product-

awareness advertising to product-preference advertising.

Enter new market segments, which will be CENTRAL (Madhya Pradesh & Rajasthan) NORTH (Punjab, Haryana) SOUTH (Andhra Pradesh, Tamil Nadu, Karnataka &Kerala)

MATURITY STAGE: Here powerline will try to Expand number of brand

users by Converting non-users into users. Entering new market segments. Winning competitors’ customers. Convince current users  

powerline will also modify marketing mix of products. Prices

Distribution, Advertising, Sales promotion, Personal

selling, Services Monitor market – competitors reaction?

 

NHJBH`

Declining stage: Adding new verticals to existing products. Heavy promotion. Research and development.