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Rural Marketingof Cosmetics

Presented by:Roopam Goyal

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Introduction

• Overall growth of the economy has increased.

• Rural marketing is confused with agricultural marketing .

• The saturation of the urban market .• Rural marketing strategies are

different from the marketing strategies of urban.

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Strategies of Rural Marketing

• Client and location specific promotion• Joint or cooperative promotion..• Bundling of inputs• Management of demand• Developmental marketing• Unique selling proposition (USP)• Extension services• Business ethics• Partnership for sustainability

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What should Co.s keep in mind to get success in rural

market?4A Approach:• Availability• Affordability• Acceptability• Awareness

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 Rise of Indian Beauty

Market • Market size• Purchasing power of consumers• Major players• Marketing• Rising incomes and demographics shifts spur sales• Hindustan levers lead remain unassailable• Focus on innovation and price-segmentation• Mounting aspirations and an upbeat economy

herald a bright future• positioning

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Introduction to Godrej Consumer product ltd.

• GCPL is a major player in the Indian FMCG market with a leadership in personal, hair, household and fabric care segments.

• The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi (H.P.)

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GCPL Product Portfolio

• Soap – Cinthol – Evita – Godrej No. 1 – Fair Glow

• Toiletries – Cinthol Talc – Godrej No. 1 Talc • – Fair Glow cream• – Godrej shaving cream• – Cinthol perfumes• Hair care – Godrej hair color dye – Renew

woman hair dye – Nupur hair dye – Color soft hair color

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Godrej no.1 soap

• Godrej No.1 soap was launched in 1922.

• This 86-year-old brand enjoys a volume market share of 6 per cent.

• It is the 5th largest selling soap in the country and tops in Punjab/Haryana with a 20 per cent market share.

• Godrej No. 1 soap rely on below-the-line promotions, and for the past 5 years it has been selling at a 3+1 free offer in the market.

• In 86 years, the brand has spent less than what a major soap brand would spend in a month of heavy promotions (Rs 12-13 crore), according to the company.

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Godrej Rural Marketing Strategy (Godrej No. 1 Soap)

• Godrej introduced Godrej No.1 soap enriched with natural ingredients trusted by millions, the flagship brand of GCPL, is now the largest selling Grade 1 Soap.

• Grade 1 is the highest standard laid down by the (BIS). Godrej introduced it in competition with the Santoor, Breeze.

• Godrej in the initial stage introduced it as a mid segment soap but after sometime it’s price was reduced and targeted to the rural area.

• Variation strategy: introduced many variants to extend the product line of soap.

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Godrej No. 1 Talc and shampoo

• 100 Gms at Rs, 19/-

• 300 Gms at Rs 39/-

Quantity Bottle Sachet

100ml Rs 25 -

7 ml - Rs 1

3.5 ml - Rs.50

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Distribution Strategy• rural sales contribute one-third to the company's sales

with the balance coming from the urban market. Godrej Soaps' total income was Rs 787 Crore in the fiscal 1999-2000.

• has set up a committee to improve and leverage distribution in the rural markets of less than 5,000 population strata.

• The company has put in place three experiments • carried out certain experiments in the below 10,000

population strata rural markets to leverage distribution.• The company has already set up a system of stockiest

and super stockiest in small towns with population of 10,000 plus

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Distribution and Supply Chain

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Promotional tools used by GCPL

• Events- Advertising– Billboard – Hoarding – Wall painting – Electronic media – Print media - Sales promotion.

• relied heavily on the mass advertising like on the TV, radio, and newspaper

• Conducted the events in which the rural people have the interest. Some of the events are navratna, yaara nachle, gold awards in Mauritius etc

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Sales Promotion

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Promotional strategy• GCPL has roped in Mona Singh of Jassi jasissi

koi nahi to be the brand ambassador• “ All that Glitters is not Gold…All soaps are

not Grade 1 soaps.”• campaign educates people the advantages of

using Grade I quality soaps that produce more lather, last longer and thus is a great value-for-money proposition.

• Godrej Soaps and Jassi both stand for the Sachchi prakritik sundarta proposition

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GCPL-Competitive edge

• Quality Policy• Value for money product• Distribution network• Brand image• Promotional edge• Innovation strategy• Strong product line

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LIFEBUOY• the world’s largest selling soap.• Launched in the year 1895 • In 2002 Lifebuoy was relaunched,

marking a new turning point in its history

• The new Lifebuoy is targeted at today’s discerning housewife

• Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now milled toilet soap with a new health fragrance.

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Lets see the 4 P’s of marketing of lifebuoy in

rural India…..

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REPOSITIONING• it is the single largest soap brand — with 20

lac soaps sold every day and an estimated value of Rs 500 crore (600 million users annually).

• The relaunch of the 107-year-old Lifebuoy has been done in a bid to drive growth in a sluggish soap market.

• HLL challenged everything that Lifebuoy stood for - perfume, formulation, size and shape.

• extending it to talcum powder and also testing a herbal variant of this power brand.

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PROMOTION• TV and print

campaigns, focused attention on the family health themes.

• conducted consumer education exercise using "Germ tests“.

• explored the communication options during World Health Day.

• created The Lifebuoy Swashthya Chetana.

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• HLL was also offering cross company product mixes

• HLL used Mahakumbh mela as an opportunity to change hand-washing and bathing habits in rural India.

• Cinema van operations

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PRICE• Hindustan Lever Ltd (HLL) currently on a price

discount includes 150 gm Lifebuoy Gold (Rs 3 off),

• HLL is also expected to follow suit with its Surf sachets

• HLL have deliberately introduced small pack sizes.

• Lifebuoy, HLL's largest selling soap brand, recently introduced a Rs 2 SKU (stock keeping unit) of 18 gm targeted at the rural market in the Bimaru States.

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PLACE

• 70% of India's population resides in villages

• HLL has established a single distribution channel by consolidating categories

• HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockiest.

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• Fair and lovely sachet costs Rs.10• Brand extension – “active sunblock” lotion

costs Rs.30 for 25ml & Rs.60 for 50ml

PRICE

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FAIR AND LOVELY FOUNDATION

• Economic empowerment of women

• Careers • Enterprise • Education

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Education

• Scholarships are awarded annually to deserving young girls.

• For higher education in India – Graduation, Post-graduation and PhD

• Rs.100,000 scholarship is meant for women “with an aptitude and ambition to achieve their goals”

A. Background

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B. Communication Goals• “Reliance

Communications’ R World” platform

• Did not include the traditional media – TV & Print to break free from the clutter of traditional medium

• Entice the user to fill in personal details after sharing the Scholarship and Fair & Lovely Foundation information.

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 C. Media Solution & Execution

1. Banner Advertising 2. Fair & Lovely Scholarship Zone 3. SMS Blast 4. IVR 5.  Short Code 6. Reliance Mobile World Website

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D. What Makes the Idea a

Winner

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Emami• FLAGSHIP COMPANY

OF EMAMI GROUP• PERSONAL BEAUTY

AND HEALTHCARE BUSINESS

• MANUFACTURES THROUGH AN EFFECTIVE LEVERAGE OF AYURVEDA

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ACTIVITY DESCRIPTION

• PARTNERED WITH NGO’S AND BANKS• OFFERS TWO TYPES OF SELF

EMPLOYMENT SCEMES - EMAMI MOBILE TRADERS - EMAMI SMALL VILLAGE SHOPS• OFFERINGS OF THE SCHEMES

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BENEFITS TO RURAL

• SPECIALLY TRAINED SELF – HELP GROUPS

• MARKET SELF MADE PRODUCTS• SUPPORT SMALL SCALE

MANUFACTURES IN RURAL INDIA

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MARKETING STRATEGY

• THROUGH SALES - 11000 MOBILE TRADERS, 2200 SMALL VILLAGE SHOPS

• COLLABORATIONS WITH ITC e-choupals

• CONSISTENT GROWTH BY POWER BRANDS

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Growth Strategies

• CELEBRITY ENDORSEMENT• LAUNCHED FIRST ADVERTISING

COMPAIGN• NEW LAUNCHES• LEVERAGING ITS AYURVEDA ORIGIN • GOOD DISTRIBUTION NETWORK

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REASONS FOR SUCCESS

• SEASONAL DEMAND

• KEY FACTOR FOR SUCCESS

• ENTER OTC MARKETS

• INNOVATIVE PACKAGING

• OUTSOURCING

• WIDE NETWORK FOR DISTRIBUTION

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• entry in cold cream market

• natural goodness of time tested ingredients

• innovative and quality skin care product

• target customers• research and

development • packaging and pricing

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Experience the five fold goodness of Emami Malai Kesar Cold Cream – the perfect non greasy cold cream - and face the winter with a soft and glowing skin.So, go on!Khul ke ....khilo

• Promotion – create awareness , educating retailers

• Disribution – 3.5 lakhs retail outlets• Type of demand – seasonal• Reason for success – association with

ayurveda based products

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• Introductuon • Media exposure

- increased literacy level

• Indirect increase in disposable income

• Rural youth

- evolving as opinion leaders

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TIPS FOR MARKETING BRANDS IN RURAL INDIA

• Close to the heart of rural people• pricing has to be value for money• issues and solutions to it - pricing - promotion - distribution - brand

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ETHNIC ROUTE

• Identifying specific values in a cultural context

• Identifying certain beliefs• Combining elements of specific

culture• Capturing a sense of nostalgia• Using stereotypes• Identifying specific cultural traits

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