Rural Iima
Transcript of Rural Iima
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Prof.Atul Tandan/MICA
Rural Marketing,
Communication and
Advertising
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The Rural Rush:
Rural India accounts for over 50 percent of
Indias GDP
8% plus growth in 2005-06 Three-fifths of rural India derives income
from services and industry
Communication done through Wallpaintings, Folk dances, Mythology and
Kumbh Mela
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The Rural-Retail Saga
Reliance is in the process of
Identifying 1600 Rural Business
Hubs (RBH)
Sunil Mittals Bharti has organized
farmers in Punjab to grow high
products that are then graded, sorted
cold stored and shipped
for exports
ITC has been using e-Chaupal
to reduce middlemen,
increase rural procurement,
Create price transparency,
Cut trading margins and
Directly converse with farmers
Mahindra Finance has beenquietly pushing loans
throughout upcountry with
great success
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The money makers
HLL in 2005
Revenue of 5000 crore from rural markets
50% of total sales turnover LG in 2005
55% of total turnover from rural and semi-
urban markets
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The growing figures
Industry analysts have predicted that by
2010-11, the urban households are
projected to grow by 4% while ruralhouseholds are expected to grow by 11%.
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Causes for Growth:
The rise in disposable income of the rural
families
The economic boom Timely rains
Rural population involved in occupations
other than agriculture Women empowerment
Improving infrastructure
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Increase white-collar jobs in nearby towns
Commercialization of agriculture
Saturation of the urban markets
Media penetration in rural areas
(particularly satellite channels)
Globalization
Economic liberalization
Revolution in the Information Technology
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Communication matters
because. Godrej hair dye is used by the rural
consumers for applying on their buffaloesto make them look immaculate black
People in the state of Bihar feed the cattlewith Horlicks as a health drink to fattenthem!
In Punjab use washing machines not forwashing clothes but to make frothy lassi inhuge quantities!
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Animals are rubbed with Iodex on their
skins to relieve them from muscular pains
after a days hard work.
Paints meant for houses are used on the
horns of cattle for easy identification and
theft prevention!
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How do we talk to our consumers..
It is not enough simply to place our brand in front
of consumers and talk about ourselves.
We have to involve them in the communications:
give them an involving and engaging message
when and where they are most receptive to it
We have to make unique emotional
connections
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When and where can we meet ourconsumers
Unique Product
Displays
Unique Product
Displays
ConsumersConsumers
RadioRadio
On-packOn-pack
SponsorshipsSponsorships
PrintPrint
In-StoreSignageIn-StoreSignage
Partnering with
Retail Equities
Partnering with
Retail Equities
Retail Database
Targeting
Retail Database
Targeting
Sampling
Events
Sampling
Events
PRPR
TVTV
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Are We Effectively Reaching
Consumers
Difficulty in reaching our target consumers
through traditional media
Urban
Increased fragmentation of TV channels High clutter in advertising (Advertising
spends for 03 estimated at Rs. 94 bln -
increased by 50 % over the last 5 years)
Rural
Reach through traditional channels limited
(65% of Rural India is still media dark)
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Same Old Marketing or Time for a Behaviour
Change...
In a communications environment
where everyone is shouting to be
heard, we have two choices
3600 Marketing is about marketing differently3600 Marketing is about marketing differently
Shout louder
Money / Impact
Shout louder
Money / Impact
Behave differently
Local / Insight
Behave differently
Local / Insight
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Prof.Atul Tandan/MICA
Lifebuoy Swasthya ChetnaL
ifebuoy Swasthya ChetnaL
ifebuoy Swasthya ChetnaL
ifebuoy Swasthya Chetna
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The Audience
Primary
School going children, aged 5 to 13 years
studying in primary and middle schools
Secondary Parents (CWE and his wife) who are
infrequent user of soap
Key Influencers : RMP, Teachers &Retailers
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360*
Communication
PC
PR
Design
Direct
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Design
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Advertising
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Prof.Atul Tandan/MICA
Public Relation
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Promotional campaigns
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Direct Marketing
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RASOI GHAR
Behavior Change Marketing
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LPG Marketing Challenge
Rural penetration is only 15%, mainly among
R1&R2 HHs. Entire BoP segment is non-users
MART research showed that non-users are
aware about benefits of LPG, 57% of them believed that it is convenient to cook on
LPG
63% felt that LPG is a clean fuel (no smoke while
cooking),
69% were of the opinion that food cooks faster
50% said that for making of tea for unscheduled
arrival of guests LPG is very handy.
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Process Followed by MART
Research
Strategy
Scale Up
Pilots
Qualitative and Quantitative in 8 States
Awareness, Availability, Affordability and Acceptance
One district each In 3 Representative States
Strategy & Implementation
1
2
3
4
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Marketing Issues
Research Identified the following
marketing issues among non users
Awareness
Extremely low awareness about actual cost of
connection and refill (20%), most believed it cost
Rs 2,000 or more
Availability
Not available close to home (61%)
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Marketing Issues
Affordability
High connection cost of Rs 1600 (73%)
High recurring cost for refill @ Rs. 270 is a barrier
(51%) Options for cooking at low cost/zero cost e.g.
firewood (93%), dung cake (27%)
Acceptance
Cases of Cylinder burst
Gas leakage fire hazard (52%)
Cooking on gas leads to gas in stomach.
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Awareness: Solution
Suggested Participate in Haats Reminder through wall paintings at Haat
boundary walls, bus stands
Safety clinics during SHG meetings.
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Availability: Solution Created
Open extension counters in larger villages
(5k 10k population villages).
Use HPCLs Petrol Pump outlet network in
semi urban locations, highways/arterialroads for distributing LPG
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Affordability: Solution Created
Introduction of 5 Kg cylinder
Initial connection cost Rs 850 (Rs 1600)
Refill @ Rs 95 (Rs 270)
Finance
Chit-fund scheme introduced with SHG members who
contribute Rs 100 per month
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Objectives of Pilot
How to influence poor women to move
away from traditional cooking methods.
To make women experience the benefitsof LPG
(Clean, Convenient and Safe)
Dispel myths associated with LPG
RASOI GHAR concept was conceived to meet the objective
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Rasoi Ghar: The Model
Rasoi Ghar is a community Kitchen set up in 25k villages where women come to cook. SANJHA CHULHA
Local Panchayat contributes a room (10 x 10 orbigger) for the kitchen
HPCL contributes cooking stoves, LPGcylinders, utensils, cooking counter and water
(Rs 8000)
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How it works
An SHG member appointed as caretaker
Women bring basic materials and pay (Rs2/- per half hour) for using gas and takeaway cooked food home
Caretaker collects money, orders refills,keeps premises clean
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Outcome
Non users experienced the advantages of
clean, convenient, safe and non-polluting
LPG without having to buy a connection
Once they are satisfied, many decide to
buy individual connections subsequently
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Formal Evaluation
NCAER evaluated the Rasoi Ghar
initiative in UP
Acceptance of Rasoi Ghar by the people is
quite high (82 %)
85% users use Rasoi Ghar twice a day
6 % of the drop outs have opted for individual
connections Among the Users, 20% are intending to install
individual LPG connection in near future
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NCAER Evaluation
Marginal increase in expenditure on fuel (Rs
0.52 per day), but time saving on collecting
traditional fuel and cooking is 1 hours per
day. Saved time is utilized in productive activities,
better child care, domestic chores and
increased leisure time
Rasoi Ghar established by SHG members are
generally more successful and sustainable
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Current Status
589 Rasoi Ghars opened in 4 districts of
UP
Varanasi 84
Hamirpur 104
Sultanpur 239
Jaunpur 162
Total 589
Another 720 planned in the next 6 months
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Way Ahead
Encouraged by the success, Ministry of
Petroleum has put together a proposal to
open 80,000 Rasoi Ghars across the
country
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Successful Mantra in Rural
Bu
siness Mind,Social Heart
Thank You