By,

Namdev Waddewar.Md. Imran Khan.

Ravi Kumar.Sandeep Prasad

Pritesh Patil.

LG SAMPOORNA TVNOKIA 1100

AMRUTANJANHUL BREEZE 2-IN-1

HUL PURE-IT [A WATER PURIFIER BRAND]TATA NANO

Product Strategy

  Case 1: Amrutanjan

The Vice President of Amrutanjan, Easwar Das, during his visit to the rural market

observed a customer walk into a small retail store and ask for one rupee of

Amrutanjan. He noted with surprise that the retailer took a scoop from the

Amrutanjan pain balm bottle and transferred it to a small leaf and handed it to

the customer. On enquiry with the customer, Das discovered the customer to be

a loyal of Amrutanjan as it helped her to sleep well after a day’s hard labour.

She earned daily wages and she could not afford to buy a bottle of

Amrutanjan.The company developed a small round tin pack inserted in a small

transparent plastic pouch to prevent leakage. The customer also derived value

from the tin pack as it was reused to store items like kum kum, etc.

Case 2: Nokia 1100

Nokia 1100 has so penetrated in to the rural market. Nokia had to stop its

production of 1100 because as its own product has become its toughest

competitor. Nokia’s low-end cell phones are used as radios, alarm - clocks and

flash lights by the rural customers.

Strategy: “digital convergence at the bottom of market”

 

LG TV

  1998, LG launched its first low priced TV for rural consumers -Sampoorna- Rs.3000 -Cineplus- RS 4900

LG Electronics launched a customized TV sampoorna’. A more

important aspect of customization is to make TV set which can

appeal to local needs, it facilitated on screen display in vernacular

language like Hindi, Tamil and Bengali. selling 1,00,000 sets in the

very first year.

Strategy: “thinking locally, succeeding globally”

Awareness Promotion

-Mobile Van-Exhibition-Road Show

SBI BANK

SBI branches have covered a whole gamut of agricultural activities like crop production , horticulture , plantation crops, farm mechanization, land development and reclamation, digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns.

SBI is setting up Agri Commercial Branches (ACBs).

SBI also have an effective Marketing team in each region with responsibilities for marketing and building relationships with dealers of agri-products, organizing promotional events and for loan sanction, processing and monitoring.

DAIRY PLUS SCHEME- Owners of small dairy with less than 10 milch animals –and owning a minimum of 0.25 acres for every 5 animalsLoan amount Up to Rs.2 lacs per borrowerUp to Rs. 50,000 – 100 % finance is given.Above Rs. 50,000 - 85% finance is given.

Sahayog Niwas: SBI has launched its Housing Loan product SAHAYOG NIWAS.  Under the scheme formulated keeping the socio-economic conditions of villages in sight, housing loans to the extent of Rs.50,000/- are given to the rural people without any mortgage of house / land.  Response to this product is very encouraging.

SBI LaghuUdhyami (SLUCC)(A Credit Card Scheme)Nature of facility: Term loan or as an overdraft, not exceeding Rs.10.00 lakhs with good track record.At 11% per annum interest rate. 

CAVINKARE’S CHIK SHAMPOOP&G PRICE CUT STRATEGY

BRITANNIA TIGER BISCUITSNESTLÉ’S MAGGI

MARICO PARACHUTENIRMA

MC DONALD’S

Pricing Strategy

Case 1: Cavinkare’s Chik shampoo

Cavinkare launched Chik in 50 paise sachets. Cavinkare targeted

rural and small town customers who used soaps to wash their hair. it

became the market leader in the rural markets with over 50%

market share. It create a ‘sachet revolution’.

 

Strategy: “low unit price packs.” (LUP)

Case 2: P&G price cut strategy

P&G in 2004 started price cut strategy in their detergent brands.

P&G’s increase in the market share was more at the cost of the low-

priced detergents. There was a 200% increase in Tide after the price

cut.

 

Strategy: bring in the required ‘Economies of Scale’ which

would lead to profitability.

Case 3: Britannia Tiger biscuits

Britannia also tasted success because of small

affordable packaging of ‘Tiger’ biscuits it is specially design

to the rural market, it’s helping the poor become consumers. 

Strategy: “low price strategy is begun to appeal target segment”

  

  

Case 4: Nestlé’s Maggi

Nestle’s rural initiatives have largely been based on

Price-led initiatives. Brand such as Maggi noodles are

priced at Rs.5. It helped Nestle in making in roads in to

rural market.

 

Strategy: “small pack - lower price”

 

   

Case 5: Marico Parachute

Marico launched ‘parachute mini’ a bottle shaped small pack being

sold at an MRP of RS.1, 20 ml parachute a RS 5 that enables loose

oil users ad to parachute. Strategy: “consumers to trail out the products with very

little risk”

IDEA CELLULARCOCA COLA

HUL LIFEBUOYMRF BULLOCK CART TIRES

GODREJ HUL VIM

HUL SURFDABUR CHYAWANPRASH

Promotion Strategy

Case 1: Idea cellular

Idea’s aggressive promotion campaigns ‘what an idea sirjee’

ad creates a real rural feel came through Strong advertisement.

 

Strategy : spreading a social message “each one has aimed at the

changing someone’s life for better”

Case 2: Coca-cola

Coca-cola ad ‘thanda matlab coca-cola’ caught

attention of the rural consumers so much. Aamir khan playing foot sic with

village bells.

 

Strategy: “Using a renowned celebrity from in rural background”

Case3: HUL Lifebuoy

HUL launched a direct rural contact program called

‘Lifebuoy Swasthya Chetana’ campaign, made sales goes up by 20% in

17,000 villages.

 

Strategy: “lifebuoy has always been positioned on the platform of

health and hygiene”

Case 4: MRF Bullock cart tyres

MRF introduced nylon tyres for bullock carts with real life Pahalwans. MRF

use the communication through wall paintings in villages association with the

muscleman symbol, (i.e. Pahalwan= Muscleman) The result was that the MRF

bullock cart tyres became the brand leader in this segment .

  Strategy: “Rural consumers

understands symbols better and looks for endorsement by icons”

COCA-COLAHUL

Distribution(Place) Strategy

Case 1: Coca – Cola

Coca -Cola is a pioneer company in distribution network. Coca-

Cola has evolved a ‘hub and spoke’ distribution model for

effectively reaching and serving rural markets. Coca-Cola

provides low-cost ice boxes to the small distributors in rural areas

because of the lack of the electricity.

In this marketing strategy a wake up call

for coke’s rural focus.

 

Strategy: “Coke is available where, even water is not available”  

Case 2: HUL

  Hindustan unilever, the pioneer and a large player in India’s FMCG market. HUL is the first company to step into the Indian rural marketing. HUL launched ‘operation stream line’, distributed HUL’s products in villages using unconventional transport like ‘bullock carts’, ‘tractors’ and cycles. Today HUL’s products touch the lives of two out of every three Indians.

  Strategy: “HUL product can reach a place,

where you can not reach”

HERO HONDA

Hero Honda is chosen over other product because of its the easy availability of spares and authorised mechanics. As a result, in the resale market, it commands a premium over rivals. This makes Hero Honda a preferred brand.

Customers can travel over long distances to buy a motorcycle but not for service. A customer can take his motorcycle for servicing four or five times a year.

Many of these touch points can start as a service centre and over time become a sale centre.

Thus, the company decided to ramp up rapidly its touch points with customers - showrooms, service centres and so on. From 2,000 in 2006, the number has risen to 3,500 in 2010. company plan is to add at least 500 every year. Most of these will be service points.

BSNLBSNL attempt to capture the rural Indian population, BSNL, the largest Broadband service provider in India has thrown out scheme called Rural USO 99 where users in Rural areas would get 2Mbps high speed broadband connection for a mere Rs.99 per month. This of course isn’t unlimited. With this Rs.99 plan users would get 400MB of Data per month.

Conclusion

“Rural market has an untapped potential like rain but it is different from the urban market so it requires the different marketing strategies and marketer has to meet the challenges to be successful in rural market.”