Amity Business School

Submitted By:

ABHISHEK GARG (B-13)

RIJUL GARG (B- 37 )

Rural Marketing Mix:

Amity Business School

Amity Business SchoolProduct Strategy

The rural consumer is very conscious about getting ‘value for money’. Low price, high quality and multiple uses is basic principles rural product design.

Case 1: Nokia 1100• Nokia 1100 has so penetrated in to the rural market.

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”

Amity Business SchoolProduct Strategy

Case 2: LG sampoorna TV• 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”

Case 3: HUL Breeze 2-in-1• HUL developed a combined soap and shampoo that was

cost-effective and also less harsh on hair than ordinary soaps. HUL launched the new soap-cum shampoo ‘Breeze 2-in-1’

Strategy: “value-added product would create a loyal customer”

Amity Business SchoolProduct Strategy

Case 4: HUL pure-it [a water purifier brand]• HUL launched a innovative product ‘pure-it’ a water Purifier

brand. Pure-it is available at economical price for the rural consumer as there is no clean drinking water in villages.

Strategy: “Corporate social responsibility means come up with business models to cater to the market”

Case 5: TATA Nano• Tata Motors launched ultra low cost Nano. Nano is a low-

end ‘rural car’, hence its creates a new segment of people of buying car. It is a victory for all those who have been advocating making available cheaper products for customers at the BOP.

Strategy: “we needed to create a safer journey of transporting a family”

Amity Business SchoolPrice Strategy

Rural markets are low price high volume growth markets. The rural markets being intensely price-sensitive in comparison to urban markets, reaching at a lower cost is a major challenge. ”

Case 1: Nirma • Nirma’s yellow detergent powder- a mass- market

Phenomenon. Nirma’s low price policy has penetrated into the deepest rural markets in India.

Strategy: “value- for- money”

Amity Business SchoolPrice Strategy

Case 2: 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 3: Mc Donald’s• The Indian customers seek high value for every rupee

spent . so Mc Donald’s has been highlighting the “Happy price menu- Rs. 20” to shackle entry barriers appeal to Indian customers.

Strategy: “highlighting the value being delivered for a small price”.

Amity Business SchoolPrice Strategy

Case 4: 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 5: Britannia Tiger biscuits• Britannia also tasted success because of small affordable

packaging of ‘Tiger’ biscuits it is specially designto the rural market, it’s helping the poor become consumers.

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

Amity Business SchoolPromotion Strategy

The challenge is to create communication that would help the rural consumer in recognizing brands, logos, visuals and colors. To effectively tap the rural markets, a brand must associate with their culture and personality.

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”

Amity Business SchoolPromotion Strategy

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”.

Case 3: Godrej • Godrej uses radio to reach to the local people in their

language and push its soap in interior and remote areas.

Strategy: “low-cost marketing technique to gain maximum result”

Amity Business SchoolPromotion Strategy

Case 4: 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 5: HUL Vim• HUL launched a dish washing bar Vim. HUL Started to

communicated the brand in rural area through public challenging campaigns. In this campaigns is succeed people washing utensils with sand are being educated to shift to dish washing bars.

Strategy: “Brand awareness creates people using local unbranded products to national brands”.

Amity Business SchoolDistribution Strategy

Planning physical distribution, managing logistics and controlling marketing communication are major impediments for entering rural markets. The distribution structure involves stock points in feeder towns to service these retail outlets at the village levels.

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.

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

Amity Business SchoolDistribution Strategy

Case 2: HUL• Hindustan unilever, the pioneer and a large player in

India’s FMCG market. HUL is the first companyto 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” .

Amity Business School

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