Marketing Industrial Products in Rural Areas - L&T

Group 7

AGENDA

• L&T and its brand building Efforts• Introduction to the Rural Industrial Products of L&T• Segmentation, Targeting and Positioning in Rural Markets • 4 P’s of Marketing in Rural India• A glimpse of Promotional activities undertaken by L&T in Rural areas• Marketing Challenges in Rural India

L&T and its Brand Building efforts

Training Sessions- Training Centres

Motivation to Stockists - Conference

Display

Advertisements in Journals

Agricultural Segment – Mobile Vans, participation in exhibitions

Factory Visits

After Sales- Service – 100 service centres

• Role of Corporate Communications• Golden Yellow logo • Corporate identity Manual • Internal communication

• Tagline of L&T over the years1. In service lies success2. Where Technology moves with

time 3. People are our prime movers 4. We make things that make India

proud5. It is all about Imagineering

Switchgear Products

• Larsen & Toubro is among the major manufacturers of low voltage switchgear in the World

• Growing presence in international market

• KEMA certification and CE markings, attest to quality and reliability

• Complete solution provider for power distribution and control in the low tension segment

• Centres at three locations around the country to propagate good electrical practices and offer advance professional skills in operation and maintenance of switchgear

Industrial Products

Industrial Products

Motors: Brand name - UltimoLow tension AC motors

Segments: Industry, OEM, Agriculture, Buildings, Energy

High performance, Energy efficient, protect environment, enhance profits

LTG: High Efficiency, IE2, up to 375 KW

LTP: High Efficiency, IE3, up to 375 KW

LTI: Inverter duty motors with forced cooling, up to 630 KW

LTK: Crane duty motors(safe area), upto132 KW

Special Motors: Single phase, geared motors

Power GearComprehensive range of power gear products

Most of the products conform to international standards

1. Air Circuit Breaker

C-Power: 400A to 6300A, High mechanical and electrical life

U-Power: 400 A to 6300 A

2. Moulded Case Circuit Breakers: 16A to 1250A,3P/4P,5 frame sizes

3. Switch Disconnector Fuses: 32 A to 1000 A

4. Switch Disconnector / Isolator: FN32/63, FN100/125/160, FN 200/250,

FN 315/400, FN 30/800/1000

5.Changeover Switch: 63A to 1000A with AC 23A rating in 5 frame size

6.High Rupturing Capacity Fuses

Bolted Fuses - Type HG & HQ-Ratings: 2 A to 630 A at 415V

DIN Fuses Type HN: Ratings: 63 A to 800 A at 415V

Cylindrical Fuses Type HF: Ratings: 2 A to 63 A at 415V

Industrial Products

Control GearThe list of products offerings under this family include:

• Agri-Starters & Submersible Pump Controllers

• Industrial Motor Starters-Type MN

Industrial Motor Starters-Type MN Features

• Conforms to IS/IEC 60947-4-1 and IEC 60947-4-1 standards

• Excellent aesthetics

• Flush mounted push buttons

• Built - in single phase protection relay

• Suitable for rural and industrial motor application

• Enclosures with IP54 degree of protection

• Lockable push button

• Terminal block for ease of termination

• Copper and aluminum terminations possible

Meters & Energy Management Systems Ergonomically designed so that they are extremely suitable for

the satisfying the needs of many rural industries

The product range includes the following:

Acrux −Three−Phase Energy Meter

Digital Panel Meters

Digital Protective Relay

ECOCARE−Energy Efficiency Solutions

Electronic kWh meter

Indicating Meters & CT Shunt

Quasar − Intelligent Panel Meter

Reactive Power Management Products

Trivector Meter Type ER300P

IndustrialProducts

On the Basis of Customer Groups

• OEM – Original equipment manufacturers

• Panel Builders

• System Integrators

• Key accounts/ Projects

SEGMENTATION, TARGETING AND POSITIONINGOn the basis of Products

• Control gear• Power gear• Motor starters• Agriculture starters and products• MCCB• MPCB• Reactive power Management– Capacitors• Drive systems

Competitive Advantages

TARGET MARKET

• Industrial Segment• Commercial and Infrastructure segment• Residential Segment• Power Plant Modernization• Alternative Energy Sources

Product offerings have to be customized to suit the needs of the rural customer.

Urban market - Augmented product level

Indian rural markets:

• Choices limited by the product offerings and price variations.

• Sub-standard products and cheaper versions of the urban offerings are sold.

• Level targeted is the Expected product

PRODUCT

4 Ps OF MARKETING IN RURAL INDIA

Available options in Traditional media

• Puppetry

• Folk Theater & Song

• Wall Painting

• Demonstration, Posters

• Agricultural Games

• NGO’s network

4 Ps OF MARKETING IN RURAL INDIA

PROMOTION

Rural Marketing Vehicle (RMV)

• Necessary to make more on-ground contact with the target audience

• Demonstration of products is important

• Consumers in rural markets rely on the 'touch and feel' experience of the product

Melas/Haats/ Agricultural Fairs

• Rural markets fix specific days in a week as Market Days

• Every region is served by one satellite town where customers prefer to go to buy their durable commodities such as agricultural products and motors

• Marketing managers use these feeder towns and easily cover a large section of the rural population

4 Ps OF MARKETING IN RURAL INDIA

PLACE

Rural population is paid in daily wages and the per capita income is lower than the urban areas.

Implications

• Product offerings and price points are critical to sales

• Rural consumers view the purchase-tradeoff dilemma across a much wider range of product categories

• Marketers need to make the product more affordable

• Value for money - most important concept that will act as a differentiator for the brand

4 Ps OF MARKETING IN RURAL INDIA

PRICE

L&T

Builders/Architects

Original Equipment Manufacturers

Industrial Customers

Hospitals/Hotels

Electrical Contractors

Telephone Exchanges

Stockist/Channel Partner

DistributionChannel

Examples of Promotions

Switchgear selection app

Android and Blackberry

Faster and accurate switchgear selections

SMS and Mail integration

Easy to use and convenient

Allows Mobility in business

Examples of Promotions

PRODUCTWHIZ

Segment Most Effective

Promo Tools

OE customers Product clinics and

advertising in Trade

journals

Industrial Customers In-plant training of

personnel and

seminars

Agricultural sector Free service camps

and van campaigning

Promotional activities for Motor Starter type MK1 of L&T

Electrical Standard Products (ESP) forms 50% of total EBG Sales

LT-LK starters made L&T popular in Rural India

Initial Promotions - AIR

LT-LK starters became extremely popular

By 2007, Siemens, Schindler, ABB and GE joined the Competitor List

ESP still maintained 40-50% market share

New strategy focused on

• Industry

• Buildings

• OEMS

• Agriculture and Utility

Effective promotion Techniques

Marketing Challenges of Rural India

Traditional Outlook of the end-customers

Literacy Levels

Lack of Proper Communication and Infrastructural Facilities

Low Per Capita Income

THANK YOU