MART

Comprehensive Rural Marketing Solutions

MART

A – 32 , 1st Floor

Sector – 17

NOIDA - 201301

MARTA Brief Profile

• MART, a leading Consultancy Firm in

Emerging Markets with specialization in

BoP consumer segments

• ‘Social Heart & Business Mind’

Philosophy

• Works both in Corporate and Social

sectors

• 50 professionals across India

• Worked in Nepal, Afghanistan,

Mozambique and Bangladesh.

Research

Business Problem Diagnosis through user centric approach

Strategy

Develop Strategy for Effective Decision Making

Pilot

Demonstrate strategy in contained geography

Scale Up

Scaled up sustainable business models

Training & Handholding

Rural Sensitization and Capacity building

ServicesEnd to End Solutions

SectorAreas of Work

HealthcareFood &

Agribusiness

TelecomBanking & Insurance

Livelihoods & Market Access

FMCG & Durables

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Capability in Implementation

• Conducts Pilots Concept test product prototypes

Market test product prototypes

Marketing concepts

• Distribution

• Promotion

• Scale up of sustainable models Communication using Innovative Promotion platforms

Last Mile Distribution

Marketing mix model (s)

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Below the Line Communication

MART’s

Implementation CapabilityInnovation in Communication Platform Pilot Scale Up

TATA SHAKTI A case of innovative communication approach

Background

• Product Galvanized Corrugated

Sheets

• Brand Tata Shakti

• Customer Rural Poor (R3 & R4)

• Usage Roofing

Status

• Status of Business in 2003 Stagnant, no growth for last 2

years

• Customer Profile Mostly illiterate

Low purchasing power

Interested to buy qualityproduct but easily influenced byretailer

Brand Communication Strategy 2003 (before MART involvement)

• Use of Static Media Wall and Shop Painting

Limitation: exposure only when customer visits shop and difficult to communicate brand benefits to illiterates

• Interactive one on one media Audio-visual communication on mobile van

Limitation: Male decision maker at work

MART recommended promotion at weekly markets

• Why weekly markets Visitors are mostly rural poor (R3 + R4), so target group is addressed

Large turnout of 5,000 people from 20 – 25 villages

Visitors are in buying mode

Over 45,000 such markets in most parts of India

Impact of Campaign

• Participated in 5,000 markets in 17 states, 250 districts over 4 years. Four million potential customers exposed to brand

50,000 potential consumers surveyed

30 percent growth in sales at retail outlets

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RURAL PROMOTION: TATA SHAKTI

Philips

PhilipsDespite Philips Bulb being a well known brand in rural, bulbs are

bought by wattage and not by brand name.

Competition including local taking share as the product become

generic.

Channel relationship at low ebb

Problem

In RuralShopkeeper plays a crucial role in pushing the product.

Usually personal guarantee and replacement assurance tilt

the favor.

Sold by wattage

Philips

Objective

Simultaneous Van campaign in village, town and Haats and

retail

Mandatory involvement of the channel and company team.

Lucky dips, games and tear away coupons.

Focus on increasing visibility – sustained POP’s at the retail

outlet Approach

Create a high decibel noise to reinforce the brand.

Help develop channel relationships.

Non Electrical shops put on beat.

Outcome

Growth of 120%

Addition of Non

Traditional Channel

Low Attrition among

Stockists

Increased

channel

partnerships

Philips

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Rural Promotion : Marico

Parachute: Fighting Loose Coconut Oil in Haats

Problem: Rural markets in Maharastra sold loose coconut oil and

lookalikes of Parachute. Price Rs 6 vs Rs 10 per 100 gms

Solution Recommended: To counter competition from loose oil, MART

suggested promoting Parachute pouch packing of 6ml, 20ml, 50ml and

100ml in haats.

Action: MART piloted promotion in 4 haats in 2 districts in Maharastra.

Participation strategy was 3 consecutive outings

1st week for awareness generation

2nd for sales promotion and

3rd for sales linkages with haat sellers

Result: Parachute sale jumped from Rs 500 per haat to Rs 3000 over

three weeks

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LAST MILE DISTRIBUTION

MART’s

Implementation CapabilityDeveloping a Concept Pilot Developing Model Scale Up

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PROJECT SHAKTIInnovative model using the women from SHG groups

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Hindustan Unilever

• Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company

• Has a wide range of Home & Personal Care products and Foods & Beverages

• Combined Turnover of $ 3.8 billion.

Home & Personal Care

Personal Wash

Fabric Wash

Home Care

Oral Care

Skin Care

Hair Care

Deodorants & Talc's

Color Cosmetics

Foods

Tea

Coffee

Branded Staples

Culinary Products

Ice Creams

Modern Foods ranges

Project Shakti – Women's Empowerment

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Combined IDCIndirect Coverage

5000+ pop villages

Shakti

1000 – 2000 pop villages

Streamline

2000 – 5000 pop villages

Accessib

ility

Turnover / market

Low

High

High

Low

HUL Rural Coverage Strategy

Project Shakti – Women's Empowerment

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Concept

• Unilever wanted to penetrate deeper to 1,000 to 2,000 pop villages – existing distribution model unviable

• Self Help Group women members were looking for more sustainable business opportunities in small village markets

Project Shakti – Women's Empowerment

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Process

Business concept explained to the group women

Women get consent from family and husband

Entrepreneurial women selected and appointed

Women trained on prices, discounts, buying, selling,

brand communication etc

Project Shakti – Women's Empowerment

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Project Shakti

• MART’s role

Conceptualization, Pilot, national rollout

Identification & selection of potential Shakti dealers

Capacity Building of Shakti dealer to become entrepreneurs

Arranging finance from banks

Link to HLL distribution network

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Shakti Vision

• Shakti 2005-2006 15000 Shakti Entrepreneurs

50000 villages

10 Million Consumers

Turnover 128 Crore

• Shakti 2008 30,000 Shakti Entrepreneurs

100,000 villages

100 million consumer

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Developing Low Cost distribution Model

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Reaching The Last Mile

• MART’s model Reach the last mile with educated unemployed rural male youth

Recruit class 10+, rural youth (18-30 age) with skills in communication and community mobilization

Build their skills in product and brand communication (customized to company)

Build their skills in salesmanship

Deploy them to take corporate brands into the hinterland and rural households.

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The Model

• Trained volunteer is provided abranded bicycle, umbrella anda box to carry ready stocks.

• He wears a branded T-shirt anda cap

• Route Plans, PJP’s and JC’s aredeveloped for him to coveruncovered markets

• He is attached to the ruraldistributor from where hepicks up stock on cash-n-carry.

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The Model

• Market coverage

Daily visit to uncovered areas (> or < 2000 pop strata)

Covers villages within feasible radii from own village and conduct sustainable business

Retailer sale at trade margins and haat sale at price close to MRP

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The Model

• Communication

Focuses on Brand Recognition to fight menace of spurious

Communicates Brand benefits

Puts banners, posters etc

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Results

• Coverage of 4 Haats every week

30 villages

• Average daily sale Rs 700/ youth

• Monthly income Rs 3,000/youth

• Nominal cost to company Starting at Rs1500/-youth/ month on a reducing scale, finally Rs 900

MART’s Implementation Capability

Developing a Concept Pilot Developing Model Scale Up

Rasoi Ghar

HPCL

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HP Gas

• Negligible penetration in rural

markets

•Affordability an issue…

•High connection cost of 14.2kg

cylinder Rs2000

•High recurring cost Rs300

•Availability…

• Not available at consumer

doorstep

• additional transport cost as

carrying big cylinder on bicycle

inconvenient

•Myths about cylinder burst &

taste of food

New Product

14.2 kg Rs2K

5kg Rs0.8K

•Rs95(affordable)

•Dealer to set up ext.

counters in large

villages

•Awareness creation

for 5 kg through haat

promotion

Co

st

Cap

Cost

Quali/Quanti

ResearchStrategyCompany

objective

• Identify new

markets for LPG

as urban markets

getting saturated

• Assess

acceptance of

existing product

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HP Gas

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Scale UpA New

Concept

HP Gas

• 3 states; 1 district each

• Created awareness of

5Kg, in 30 haats

• 30 extension counters

opened

• Barrier to purchase

as myths continued…

•Important to make

potential consumers

experience benefits &

safety before having

to invest in new

connection

• Evolved concept of

“use & pay”

Community Kitchen

to overcome myths

& avoid risk of

investing in

connection

•PPP model with

SHGs, Panchayat &

HP

• 1500 kitchens in

UP, MP, Orissa

established; 10K

planned

• Dealers continue

to open more

stocking points in

villages

Pilot Inputs

This model won the RMAAI Gold Medal and Special Jury Award, 2005

for best long term rural initiative in India

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HP Gas

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Developing a Biomass Stove

Shell Foundation

MART’s

Implementation CapabilityDeveloping a Product Concept Prototype testing Product Launch

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Product

Concept

Shell Foundation

• Reduce indoor air

pollution in homes in

Tamil Nadu &

Karnataka

• LPG is only clean fuel in rural but limited

availability

•Major cooking fuel is biomass

•But biomass generates smoke causing health

problems

• food varies and also the size of utensils

•Different types of cooking stoves used for

cooking…

• wide variety of food

• many sizes of utensils depending on family

•single burner in one state & double in other

• Need for a low

smoke emitting

biomass stove

• should be portable

•Appropriate for

different size of

cooking vessels

•Should not cost

more than $5

Company

objectiveQuali Research

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Shell Foundation

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Commercial-

ization

Shell Foundation

• Multiple prototype

designs

• Placement with

potential customer

segments

•Continuous

feedback on each

stove type and also

a comparison

between

prototypes

• Steel body was more acceptable

over refractory

• Stove height reduced for floor

cooking

• Fuel space needed adjustment

• Value for money perception was

raised. Pricing was recommended at

$10-$12

• Communication cues for the new

product were identified

• Potential channel

partners identified

• Brand name tested

• Communi-cation

materials tested

• Supported on

product launch and

handholding

Prototype

Testing

Inputs for

New ProductPrototype

Development

• Locate potential

local manufacturer

• Provide inputs to

stove designer to

develop

prototypes

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Shell Foundation

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Improving Access to Health Services

MART’s

Implementation CapabilityDeveloping a Concept Pilot Developing Model Scale Up

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Project Arogya

•Rural population unaware of health

issues arising out of mal nutrition,

infection and allergy

•Recovery of ailment is considered

effective as soon as the patient feels

better and can go back to work. Most of

the time do not complete the dose

•Health service providers in villages

restricted to RMP and government

appointed nurse.

•Quality health services, both public and

private, available in block town

• identified the ailments for

which the company had

products and wanted to

gain a larger market

•Nutrition for mother &

child, TB, allergies were

prioritized

•Need to associate with

qualified doctors in semi-

urban

•Need to build awareness

about timely and complete

treatment among people

Quali& Quanti

ResearchStrategyCompany

objective

• Understand the

awareness of identified

ailments, health issues

and related pain points

in accessing health

services

• Assess the reach of

the company brands

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Scale UpA new

approach

Project Arogya

• 3 different models

developed to create

awareness. Models based

on level of health

awareness.

•Mobile health advisors

were core to all models

• Association with health

care chain

• information from

health workers on

where to get treatment

helped villagers

•Relatively less delay in

seeking treatment

•Saved costs

•Appropriate treatment

helped build confidence

•Health service

providers appreciated

company efforts

•Issues on availability of

company products

affected the pilot

• Challenge was re-

distribution of health

products such that legal

issues do not arise

•Changes in

categorization of

products

•Appointment of new

sub-distributors at sub-

district levels

•Associate with

practicing doctors &

qualified rural medical

practitioners

• Scaled across

100 districts

Pilot Inputs

The model has been nominated for the Innovative Marketing Model category

in the Golden Peacock Awards 2008

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Project Arogya

Our Clients-Corporate

THANK YOU

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