Rural Marketing

DEBOLEENA PANJA 12PGP069

P&G• Took 18 months to develop Gillette

Guard, a low-cost razor designed for India and other emerging markets.

• With 9 percent market share, Guard has grown share faster than any other P&G brand in India

• Gillette's market share for razors and blades in India has grown to 49.1 % from 37.3 % in 2007,according to Euromonitor.

• P&G has doubled the percentage of its roughly $20 billion in annual revenue coming from emerging markets since 2000 to about 40 percent.

07/04/2023 Indian Institute of Management Raipur 2

Source:http://timesofindia.indiatimes.com/business/international-business/Cheap-razor-made-after-PG-watches-Indians-shave/articleshow/23604115.cms(Oct 6, 2013)

To gain insights, P&G executive witnessed a man shave while sitting barefoot on the floor in a tiny hut, could use to develop a new razor for India.

UNINOR• Added 321 additional network

sites in rural Gujarat as part of its foray into Gujarat’s rural markets

• Campaign’s name is "Gaam No Faydo, Uninor No Vaydo" (Benefits for villages, Uninor's promise)

• 22 percent of company's revenues in the state are from rural markets

• Expanding its presence in rural markets by opening Uninor Express stores

07/04/2023 Indian Institute of Management Raipur 3

Source:http://articles.economictimes.indiatimes.com/2013-09-10/news/41937709_1_rural-markets-gujarat-malik(Sept 10, 2013)

Aims at taking its services to small towns and villages (despite of focus on improving and consolidating their urban business)

04/07/2023 Indian Institute of Management Raipur 4

LG ELECTRONICS

• Is aggressively targeting rural areas and plans to launch Smartphones and its flagship flat-panel television sets in these markets for the festive season.

• Expects consumers in rural India will upgrade their purchases.

• Rural markets are growing 7-8% more than urban markets for LG India and account for 15-18% of overall sales.

Source:http://articles.economictimes.indiatimes.com/2013-08-23/news/41440802_1_maruti-suzuki-india-honda-motorcycle-scooter-india-india-inc(Aug 23, 2013)

Tap rural market as rural market is still growing at 10-14% whereas the urban markets are either marginally de-growing

or are flat.

AIRTEL

• Has started an interactive, recorded voice service to provide agriculture-related information.

• A lot of customers in these markets will experience Internet for the first time over a mobile device, and services like m-commerce could be a game-changer.

• Top three telecom companies said nearly 70% of the firm's current capital investment is going into rural areas.

07/04/2023 Indian Institute of Management Raipur 5

Source:http://articles.economictimes.indiatimes.com/2013-08-23/news/41440802_1_maruti-suzuki-india-honda-motorcycle-scooter-india-india-inc(Aug 23, 2013)

Bharti Airtel has huge plan for rural marketing.

04/07/2023 Indian Institute of Management Raipur 6

DCM SHRIRAM CONSOLIDATED LTD.

• Widening losses prompted DSCL to rethink its rural strategy.

• Initially, it decided to go slow on expansion. When that didn't work, it shut down some stores. Eventually, it made a total exit last fiscal year.

• Now, it sells only fuel products sourced from Bharat Petroleum at 37 locations in the countryside.

• The upside is that the net loss from the business shrank to Rs 35 crore. The company hopes to make a profit from the venture in the current fiscal year.

Source:http://businesstoday.intoday.in/story/cracking-the-rural-market-organised-retail-chains/1/196804.html(Aug 4, 2013)

Hariyali Kisaan Bazaar is a micro level retailing effort by DSCL.

Aim at providing end-to-end ground level support to the Indian farmer to improve his profitability and productivity.

04/07/2023 Indian Institute of Management Raipur 7

TATA AIG

• A variety of Rural Insurance products covering risks of this nature.

• Take care of the risks be it their automobiles, health, property or livestock.

• To create awareness about the launch, it created special films aimed at increasing awareness of the importance of insurance in the rural community

Source: http://www.tataaiginsurance.in/rural-insurance/AboutRural/

Tata AIG Gen Insurance wins best claims service company of 2012

04/07/2023 Indian Institute of Management Raipur 8

TATA MOTORS

• Helped sell 1,500 more small commercial vehicles per month in six states, and crossed 2,000 units in Nov 2012.

• NEEV's network expansion approach comprised increasing the “feet on the street” through Tata Gramin Mitras, third-party outlets called Tata Kisan Mitra and an informal network of key local influencers.

• Required lower investment and less lead time to activate the network, and deeper reach than the traditional outlets.

Source: http://www.tata.com/article.aspx?artid=MVtS880UKKU=

Tata Motors launched its rural initiative Project NEEV in 2010, focusing on rural areas with a population of less than 50,000.

Sales through NEEV account for 8 per cent of the company’s national sales volume of small CVs.

04/07/2023 Indian Institute of Management Raipur 9

YAMAHA

• Announced that India will be its biggest market by 2016.

• Plans to strengthen presence in Tier- III cities.• Yamaha Crux, well accepted product.• Installed annual capacity of 6 Lakh units at its 2

manufacturing units at Surajpur in UP and Faridabad in Haryana.

• Plans to further strengthen production to 1 million units by this year.

Source: http://newindianexpress.com/business/news/Yamaha-keen-on-tapping-rural-markets-in-India-for-larger-sales/2013/05/28/article1608958.ecehttp://articles.economictimes.indiatimes.com/2011-09-18/news/30172114_1_rural-markets-market-share-premium-segment

Tap rural market by launching more models at affordable price.

04/07/2023 Indian Institute of Management Raipur 10

MARICO

• Introducing more affordable brands in the rural markets is going to be the way forward to sustain growth levels there.

• Has got a mass market pricing in the male deo category.

Source: http://www.thehindubusinessline.com/marketing/marico-set-to-spray-zatak-deo-in-rural-markets/article3738374.ece

Anticipating a slowdown in rural demand, Marico has decided to launch male deodorant brand ‘Zatak’ in the rural market.

04/07/2023 Indian Institute of Management Raipur 11

GODREJ• After Future Group bought a majority stake

in the venture in 2008, it closed some company-owned outlets and expanded through franchisees.

• Entered the cash-and-carry business to sell to wholesalers and Aadhaar outlets in early 2012.

• Expand mostly through franchisees as they are more capable of maintaining customer relationships as they understand the consumption pattern better.

• Aadhaar has also scaled down the share of farm inputs in overall sales.

• Aadhaar is looking to break even at the operating level by the end of this fiscal year.Source:

http://businesstoday.intoday.in/story/cracking-the-rural-market-organised-retail-chains/1/196804.html(Aug 4, 2013)

Has 45 outlets in Punjab and Gujarat. On average, 300 people visit the store every

day and buy products worth Rs 400-500 each.

HDFC• Only 15 % of their income comes from semi urban and rural areas even though

56% distribution outlets are there.• Provides occupational training, financial

literacy, credit counselling, livelihood finance and market linkages to women under the Bank's Sustainable Livelihood Initiative (SLI) programme .

• the bank is providing loans in the range of Rs 12,000-15,000 per year with an interest rate of 20-25 per cent to the women under the SLI.

• The SLI outreach of the bank is about 7,000 villages across 24 states in the country.

07/04/2023 Indian Institute of Management Raipur 12

Source:http://timesofindia.indiatimes.com/business/india-business/HDFC-Bank-aims-to-grow-share-of-rural-business-to-50-in-five-years/articleshow/23531052.cms(Oct 4, 2013)

HDFC Bank aims to grow share of rural business to 50% in five years.

The bank is targeting to generate a business of about Rs 800 crore from this initiative in about three to five years

Committed to making one crore women economically independent.

04/07/2023 Indian Institute of Management Raipur 13

HYUNDAI MOTOR INDIA LTD.

• Increase the number of outlets in rural areas from 270 to 350 and dealerships from 373 to 385 across India by December 2013.

• The number of service centres would be increased from 950 to 1000 in the next four months after the launch of Grand i10.

• The company’s rural sales had increased from 15% two years ago to 19% in the first 8 months of 2013.

• Depreciation of the Indian currency presented an opportunity to increase exports.

Source: http://businesstoday.intoday.in/story/cracking-the-rural-market-organised-retail-chains/1/196804.html(Aug 4, 2013)

Hyundai to add dealers, more focus on rural India

BAJAJ ELECTRICAL LIMITED• Lighting segment has expected growth of

18-20 % for the year and for consumer durable in spite of the slowdown, expected growth 20-22 percent growth.

• Against Rs 3,400 crore growth last year, expected growth for this year is more than Rs 4,200 crore.

• Fans business have improved but the project business which saw a major hit in the last one and a half years, is now coming back in place.

07/04/2023 Indian Institute of Management Raipur 14

Source:http://www.moneycontrol.com/news/business/see-no-price-hikefy14bajaj-electricals_955649.html(Oct 1, 2013)

Rural region has not seen slowdown because of good monsoons and this being election year the farmers have the minimum support prices. In fact there has been demand for their products like irons, mixers, toasters, fans etc, from rural areas.

GCPL• A pilot has been started in villages of around

3,000 people through ‘Pragati’. It will engage 15,000 wholesale sellers backed by technology to indirectly reach out to almost every nook and corner of the country.

• GCPL directly covers 50,000 villages. With Pragati, it will indirectly reach out to an additional 50,000 villages.

• Push brands like Good Knight and Hit in these markets as penetration of household insecticide is low.

• Godrej No.1 is at present the largest selling soap brand in rural markets.

• This quarter rural growth has been at 28 % while urban markets are growing at 18 %.

07/04/2023 Indian Institute of Management Raipur 15

Source:http://www.thehindubusinessline.com/companies/gcpl-expands-rural-footprint-with-wholesaler-programme/article5193581.ece(Oct 2, 2013)

GCPL has initiated ‘Pragati’ wholesaler’s engagement programme to feed its products across village to engage with a fresh set of wholesalers to enhance its indirect reach across villages.

Trends: Mr. Kataria, COO of S&M, GCPL: “Rural markets are not just about having smaller packs and 10-rupee sachets. Penetration of TV has led to consumers there demanding larger pack sizes and preferring premium

products.”

THANK YOU