Product Strategy

LG SAMPOORNA TV NOKIA 1100 AMRUTANJAN HUL BREEZE 2-IN-1 HUL PURE-IT [A WATER PURIFIER BRAND] TATA NANO

Case 1: Amrutanjan
The Vice President of Amrutanjan, Easwar Das, during his visit to the rural market observed a customer walk into a small retail store and ask for one rupee of Amrutanjan. He noted with surprise that the retailer took a scoop from the

Amrutanjan pain balm bottle and transferred it to a small leaf and handed it to
the customer. On enquiry with the customer, Das discovered the customer to be a loyal of Amrutanjan as it helped her to sleep well after a days hard labour. She earned daily wages and she could not afford to buy a bottle of Amrutanjan.The company developed a small round tin pack inserted in a small transparent plastic pouch to prevent leakage. The customer also derived value from the tin pack as it was reused to store items like kum kum, etc.

Case 2: Nokia 1100

Nokia 1100 has so penetrated in to the rural market. Nokia had to stop its

production of 1100 because as its own product has become its toughest competitor. Nokias 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

LG TV

1998, LG launched its first low priced TV for rural consumers

-Sampoorna- Rs.3000 -Cineplus- RS 4900

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

Awareness Promotion
-Mobile Van -Exhibition -Road Show

SBI BANK
SBI branches have covered a whole gamut of agricultural

activities like crop production , horticulture , plantation crops, farm mechanization, land development and reclamation, digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns. SBI is setting up Agri Commercial Branches (ACBs). SBI also have an effective Marketing team in each region with responsibilities for marketing and building relationships with dealers of agri-products, organizing promotional events and for loan sanction, processing and monitoring.

DAIRY PLUS SCHEME- Owners of small dairy with less than 10 milch animals and owning a minimum of 0.25 acres for every 5 animals Loan amount Up to Rs.2 lacs per borrower Up to Rs. 50,000 100 % finance is given. Above Rs. 50,000 - 85% finance is given. Sahayog Niwas: SBI has launched its Housing Loan product SAHAYOG NIWAS. Under the scheme formulated keeping the socio-economic conditions of villages in sight, housing loans to the extent of Rs.50,000/- are given to the rural people without any mortgage of house / land. Response to this product is very encouraging.

SBI LaghuUdhyami (SLUCC) (A Credit Card Scheme)

Nature of facility: Term loan or as an overdraft, not exceeding Rs.10.00 lakhs with good track record. At 11% per annum interest rate.

Pricing Strategy
CAVINKARES CHIK SHAMPOO P&G PRICE CUT STRATEGY BRITANNIA TIGER BISCUITS NESTLS MAGGI MARICO PARACHUTE NIRMA MC DONALDS

Case 1: Cavinkares 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 2: P&G price cut strategy

P&G in 2004 started price cut strategy in their detergent brands. P&Gs

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:
to profitability.

bring in the required Economies of Scale which would lead

Case 3: Britannia Tiger biscuits

Britannia also tasted success because of small affordable packaging of Tiger biscuits it is specially design to the rural market, its helping the poor become consumers.

Strategy: low price strategy is begun to appeal target segment

Case 4: Nestls Maggi

Nestles rural initiatives have largely been based on Price-led initiatives. Brand such as Maggi noodles are priced at Rs.5. It helped Nestle in making in roads in to rural market.

Strategy: small pack - lower price

Case 5: Marico Parachute

Marico launched parachute mini a bottle shaped small pack being sold at an

MRP of RS.1, 20 ml parachute a RS 5 that enables loose oil users ad to parachute.

Strategy: consumers to trail out the products with very little

risk

Promotion Strategy
IDEA CELLULAR COCA COLA HUL LIFEBUOY MRF BULLOCK CART TIRES GODREJ HUL VIM HUL SURF DABUR CHYAWANPRASH

Case 1: Idea cellular

Ideas 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 someones life for better

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

Case3: 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 4: MRF Bullock cart tyres

MRF introduced nylon tyres for bullock carts with real life Pahalwans. MRF

use the communication through wall paintings in villages association with the muscleman symbol, (i.e. Pahalwan= Muscleman) The result was that the MRF

bullock cart tyres became the brand leader in this segment .

Strategy: Rural consumers

understands symbols better and looks for endorsement by icons

Distribution(Place) Strategy

COCA-COLA HUL

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. In this marketing strategy a wake up call for cokes rural focus
.

Strategy: Coke is available where,

even water is not available

Case 2: HUL
Hindustan unilever, the pioneer and a large player in Indias FMCG market. HUL is the first company to step into the Indian rural marketing. HUL launched operation stream line, distributed HULs products in villages using unconventional transport like bullock carts, tractors and cycles. Today HULs products touch the lives of two out of every three Indians.

Strategy: HUL product can reach a place, where you can not reach

HERO HONDA
Hero Honda is chosen over

other product because of its the easy availability of spares and authorised mechanics. As a result, in the resale market, it commands a premium over rivals. This makes Hero Honda a preferred brand. Customers can travel over long distances to buy a motorcycle but not for service. A customer can take his motorcycle for servicing four or five times a year. Many of these touch points can start as a service centre and over time become a sale centre.

CONTINUED
Thus, the company decided to

ramp up rapidly its touch points with customers - showrooms, service centres and so on. From 2,000 in 2006, the number has risen to 3,500 in 2010. company plan is to add at least 500 every year. Most of these will be service points.

BSNL
BSNL attempt to capture the rural Indian population, BSNL, the largest Broadband service provider in India has thrown out scheme called Rural USO 99 where users in Rural areas would get 2Mbps high speed broadband connection for a mere Rs.99 per month. This of course isnt unlimited. With this Rs.99 plan users would get 400MB of Data per month.

E-CHAUPALS
ITC launched a project e-chaupal for increasing village connectivity and

tapping the untapped rural market. These e-chaupals are small units set up to help farmers.
Each unit has Rs2 lakh infrastructure including a computer ,phone line and ups

to logging on to the internet.

A room of medium level farmer usually serves as e-chaupal.

A farmer is called sanchalak who provides free information about the prices

and demand for agriculture produce in different mandis for a commission, when a farmer sell his produce to itc. The number of e-chaupals have increased to 1700 in 26 districts. Under its e-chaupal project itc has decided to open rural malls.

RURAL MALL BY ITC

ITC opened a rural mall- chaupal sagar at Rafiqgunj near four kilometers of

sehore town in Madhya Pradesh. Chaupal sagar is first rural mall in India stands on 8 acres of land with a shopping area of 7000 square feet, set up with a cost of 4.5 crores.

The farmers can buy soaps, detergents and toothpaste, almost everything they need for the family including TVs, DVD players, pressure cookers, room heaters, watches, sewing machines and grinders and, of course, cigarettes. Motorbikes or even tractors are also available. The company is marketing a new range of clothing and shoes too for the rural customers. This plan is very ambitious as from start in oct2004 the daily sales in first week was already 70000-80000 which is not bad as a business proposition too.

CONTINUED(RURAL MARKET)
The idea is to create a one-stop destination for farmers

A diesel pump, a cafeteria and a soil-testing laboratory are also coming up and

so is a sale point for fertilizers, pesticides and other agro-inputs. A bank, an insurance company office and a training centre for farmers will complete the set-up. If Chaupal Sagar set up at a princely cost of Rs4.5 crores succeeds then ITC intends to open 5 another rural malls. Under second phase of its e-chaupal project itc is going to open another 30 rural malls across India. The idea needs a close watch and the government should be wise enough to support the entrepreneurs.

Conclusion
Rural market has an untapped potential like rain

but it is different from the urban market so it requires the different marketing strategies and marketer has to meet the challenges to be successful in rural market.