232

RURAL MARKETING

<

The essential characteristics offolk media are that they are interactive, repetitive and narrative.

coupons, discounts, free gifts, rewards for loyal customers,1\I displays and demonstrations; trade promotion-price advertising and display allowances, free goods. In the rural context, one of the best ways to capture theatt& tion of the audience is through events. Since rural areasat h limited venues for entertainment, conducting a good, wrI planned event in rural areas elicits a good response, andgs the brand the right mileage through a visually strongirnpal and long-term brand recall. Some prominent formsof rum events are sports events, consumer /farmer meets andchanrj partner meets.

6. Detailing and understanding other relevant rural communication tools like sales promotion and events and experiences
Sales promotion consists of various incentive tools, which are mostly short term and are designed to stimulate and induce trial and make the offer attractive for early conversion by consumers or trade. It includes tools for consumer promotion-samples,

1. Nee In rural and kn based a

DISCUSSION AND APPLICATION

Discussion of Concepts
1. Explain the steps involved in message design. Develop a communication message for promoting hybrid seeds and pesticides. Briefly describe the various communication tools that can form a part of the rural communication mix strategy. 3. Describe different forms of folk media. What are thebe!; efits of using folk media? What are the critical pointsto~ kept in mind while using folk media as the communo tion platform? Explain the different sales promotion communication with examples. tools used inrurI

3.Ne Cansu to en servic the ri

2.

4.

Application of Concepts
1. Devise a comprehensive communication strategy for a regional brand of toothpaste in any two Indian states. Identify the dimensions that will help to distinguish the communication strategy. Critically examine the communication strategy of a national and regional player in the durables category in rural markets. 3. An international processed food manufacturing comp~ has come up with its new fortified products (biscuitsand snacks) which it wants to promote in iron-deficient rural areas of India. Devise a communication plan for the COlli pany to help it to effectively communicate its message.

2.

tl

RURAL MARKETING CASE

".

TATA SHAKTEE GC SHEETS

Galvanized Corrugated (GC) sheets are a part of the product portfolio of Flat Products Division. The Flat Products team at Tata Steel, managing the Tata Shaktee brand of GC sheets, was contemplating the brand communications budget.

Table 1 Consumers of GC sheets Consumer R2, R3, R4 sections of rural society Internet Characteristics Lower literacy levels, very cost conscious Farmers, shopkeepers and labourers Concerned about product quality, but lack sophstication and technical knowledge Susceptible to retailer push/influence High involvement purchase Purchase usually happens from feeder towns

The TATA Shaktee Brand over the years

Galvanized corrugated sheets are mainly used for roofing in rural houses. They are also used for making sidewalls and shop extensions, and for sheds for cattle, storage, etc. Competing products include thatched roofs, and tile and asbestos cement sheets, which have a distinct price advantage; and to a small extent reinforced concrete cement or RCC, which is relatively very expensive. RCC is preferred by rural consumers for roofing. Tata Steel was the third largest producer of GC sheets in the country, and had a market share of 9 per cent in 2000. The Flat Products team had set the objective of becoming market leaders in the Indian steel roofing market. The focus was on rural housing, and on segments detailed in Table 1.

The Tata team had identified an opportunity to differentiate and establish their brand by focusing on delivering more value to their target consumers. Thiswas based on brand differentiation on some major consumer concerns and needs, which were unfulfilled, namely:

> COMMUNICATION

STRATEGIES FOR RURAL MARKETS

CHAPTER 9

233

POP -offs,

ttenhave wellgets pact rural el

1. Needfor more durable and cost-saving roofing products Inrural territories, word of mouth and dealers' recommendation plays a role, andknowledge is less technically sound. Consumer evaluation of the product is basedon product parameters like weight, size, etc.

The Tata Shaktee Brief

The brand communication requirements were spelled out with the above scenario in mind, and the following objectives were crystallized. Customer intimacy was to be established through communicating the unique brand identity and advantages through various communication channels, including direct communication to the end consumer.

2.Needfor assurance on fair price and good quality Theperformance of the sheets depended on many factors including the usage purpose,as well as the quality of the product and method of using and storing sheets. 3.Needto buy from a reliable outlet Consumers'concerns if they invested in a costlier brand of GC sheets were toensure that the retailer was trustworthy, was not only delivering the right servicesand dispensing the correct usage advise, but was also quoting them theright price/brand . Ina market seeking assurance and fair play, brand identity would playa majorrole if a brand took up the opportunity and challenges. The category audit revealedstrong challenges at four levels: the consumer connect, market itynamics,immediate competition, and the channel structure aqd trade practicesand norms. Thestrategy adopted to tap into this opportunity rested on strengthening their brandingof GC sheets, the Tata Shaktee. It was positioned as a high value option GC sheet users in rural India, especially for roofing needs. Tata Shakfor teewas re-Iaunched in 2000 in the retail construction segment. The strategy wasto create consumer intimacy, and establish a unique identity and robust distributionnetwork that enveloped the customer till the last mile. The key implementation challenges were to communicate the brand meaning and identityand create the right distribution channel, which would create access to a trusted source of GCsheets for consumers, a source that would be transparent, accessible, nd fair in pricing. Providing peace of mind to the consumer was a a driving factor, through pricing, quality and brand assurance. Credibility would bea major pillar of the Shaktee brand, and would drive the commodity marketto recognize value in brands. It would also impart a unique differentiator to thebrand.

Communication Objectives:
1. Creating brand awareness of Tata Shaktee GC Sheets brand proposition
2. Product demonstration

...

3. Building a relationship with the customer and creating brand loyalty through a burst of below the line promotional activities

The Communication Challenge

The challenge was to promote the brand's consumer value-add through effective communication directly to the rural-end consumer and decision maker.The first objective of the campaign was to communicate the benefits oITata Shaktee vis-a-vis other brands. Since this was the only company to launch extra width GC Sheets, the benefits of the much wider GC sheet-like the significantly lower cost of construction (attributed to the less number of sheets and accessories required to cover the same areal-was to be communicated to customers, and linked to the brand name. The brand also had many other features that would position a clear point of differentiation: RCP,zinc coating benefits, 120 GSM, etc. These features were technical in nature and difficult to explain to consumers who were less literate, and often not aware of technical issues of the building trade. The other communication challenge was to create direct communication opportunities that allowed product demonstrations. It had to be an opportunity where something as cumbersome as a GC sheet could be wielded and put up for a demonstration. Critical issues identified during the client-agency interactions were as follows: The buyer, mostly the head of the family, who makes decisions relating to purchase/financials spends the maximum time in his fields during the day. Tata Shaktee charges an INR 10-15 premium per sheet over other brands. Technological superiority like RCP,120 GSM Zinc coating are difficult to comprehend, and is to be communicated in simple language and in terms of utility to consumer. Variations within Hindi as a language of communication. Being a durable product, opinion leaders like mistris (technicians incharge of placing roofs) play a role because of the rational decision-making process. Communication needs to focus on demonstration and touch and feel for greater impact.

. bento be icarural

lpany and rural cornI ge.

5
Distribution Channel for Tata Shaktee
Retailers f hardware, paint, cement, plywood, etc. are located mainly in feeder o towns (those towns with a population greater than 20,000). Most retailers sell mu~iple brands. Coupled ith the strengths of the Tata Shaktee GC sheet brand itself, this was w expectedo bring about the re-shaping of the market towards a brand versus t commodity ompetition. c his-

BrandCommunications
Tata Shaktee became a market leader in branded GC sheets, ranked first in thecountry by share and unit weight. The company's approach was to create consumerntimacy through various means. One was through creating a unique i ~entityfor the Tata Shaktee brand, such that the value proposition to consumer was clearly established as a higher value than the competition. This higher value wasbased on the pillars of brand differentiation, and a unique identity was proposed be established in consumer perception around these four dimento sions. challenge was to create awareness and establish the brand identity The andproposition.

Solution (Efforts Made by the Agency) Phase I (2001-3)

In the first phase, the communication medium chosen by Tata Shaktee were wall painting, shutter/shop painting, VOW (Video on Wheels), POP(Pointof Purchase) displays but these did not yield the desired result.

h their is was needs,

234

RURAL MARKETING

Learnings from Preliminary Field Visit: Product/Brand point of view: Favour GCsheets are lighter than asbestos sheets/tallis/thatch, and require a lighter understructure GCsheets are easy to re-Iocate compared to asbestos sheets/tallis/thatch GC sheets have a longer life (15-20) years as compared to other cocategories GCsheets are fire-resistant Tata sheets enjoy good brand equity in the market Tata is the only GC sheet with product specification printed on it Product/Brand point of view: Against GC sheets are more expensive than asbestos sheets/thatch roof/tall is as a product, but when the total cost of roofing (understructure, cladding material and labour) is considered, GC roofs are cheaper A house with a roof made of GCsheets is hotter compared to those with roofs made of other materials Consumers are shifting to thinner GC sheets since prices have increased by about 30 per cent. Tata Shaktee does not have any product offering in thinner sheets. Competition (Jindal National) product range starts from 0.14 mm thick, whereas Tata starts from 0.25 mm The price of Tata sheets is about 5 per cent higher than the nearest significant competitor Consumer point of view: Favour Consumers shifting to GC sheets from thatch/tallis as it lasts longer The usage of asbestos sheets is declining rapidly due to health hazards Consumers are concerned about the safety and security of their families and prefer fire-resistant GC sheets The rural consumer feels that the Quality of Tata sheets is better than the competitors Consumer point of view: Against The target segment for GCsheets is R3 and R4, who are very price-sensitive The low literacy level of the consumer means that he can be easily duped by the retailer Less knowledge about the product specification printed on Tata sheets and its implications. The visit also brought out the fact that in this customer segment, buyers have low literacy levels, are susceptible to duping, have limited purchasing power, and are multilingual even within this segment, across states and regions. Therefore, the challenge from a communication point of view was to establish a communication channel with the consumer, and propagate awareness and value of the brand. MART's Strategy for Direct Customer Contact The possible alternate channels of communication and below the line tools considered by MART were: Use below the line media Public platforms to engage with rural customers - Agricultural mandis - Sugar mills

Kisan Mela organized by Agricultural Universities Special meets Live demonstrations in rural large format retail stores National fairs

It was thus decided to focus primarily on utilizing rural congregation platforms like haats and melas to reach out and educate the rural masses on product! brand benefits, and possibly create an experiential opportunity. The haat isthe business nerve centre, where visitors are in a buying mode.

Learning from the Pilot Project After the pilot, Tata Steel decided to put a hold on roll out in melas, as it was the less appropriate platform from which to start off. The category purchase behaviour is such that the entire family does not playa major role; it is usual~ the head of the family or the chief wage earner who needs to be targeted.Me las are occasions for the entire family, and involve both purchases of essential and non-essential items, and are sources of entertainment. As melas are seen more as an entertainmenVfamily outing, it was jointly decided to drop themas a promotional platform.

Campaign Roll Out in 2004 The agency embarked on its roll-out plan with the help of local field implementa tion partners. Due to this, the dealer could not participate, and the consumer's technical Queriesabout the product remained unanswered. Also, a samplesheet could not be displayed because the company dealer was responsible for the physical transportation of the GC sheet. A mismatch in the location of haatand dealer also inconvenienced consumers, as they had to travel long distances to purchase the Tata Shaktee GC sheet after learning about it at the haatfrom the promotional team. It was felt that the company would have to ensurethe availability of consumer price lists and a scheme with a fixed validity period,as well as the presence of a dealer and sample sheets at the haat promotion.The company should also ensure the availability of both the normal and the wider GC~heet samples at the haat.

Haat Hungama Campaign-2005 Additional promotional material was planned for 2005 over the previousyear's campaign. A Haat Hungama welcome stand (to greet visitors coming to the stall) Set of flash cards (five famous Indian monuments and three hit filmi jodis, brand game) Tata Shaktee flip chart (for uniformity in communicating with consumers)

Campaign Roll Out in 2006 During the activation phase, the team was instructed to take a sample sheet from the distributor/dealer and place it on a carrier mounted on the travellingvehicle. This ensured the availability of sample sheets at all haaVmandi locations. Haat Hungama 2006 was also spread over 2,000 haats/mandis, and wasa major success in further strengthening the Tata Shaktee brand and its attributes and increasing brand salience and patronage among rural consumers.

COMMUNICATION

STRATEGIES FOR RURAL MARKETS

CHAPTER 9

235

Tata Shaktee Haat Hungama Campaign from the Communicator's Viewpoint TheAIDA model of communication (Baldwin and Ross, 1992), although possiblythe oldest, is an effective response-hierarchy model, and was chosen as the basis for the first-level brand communication objectives. Tata Shaktee Haat Campaign2004 started off as a basic-level campaign with the sole objective of registering its brand in the consumer's mind and increasing his awareness, comprehensionand knowledge of the brand. Therefore, it was limited to fulfillingthe first two elements in the AIDA model, that is, Awareness and Interest. In 2005 and 2006, the branding of the campaign was done as Tata Shaktee HaatHungama and the specific brand theme was christened: "Sardi garmi ya barsaatTataShaktee hardam saath", that is, Tata Shaktee promised to be with theconsumer in any and every season, be it summer, winter or the monsoons. Interactivebrand games centred round this broad campaign theme were designedlike a set of flash cards (five famous Indian monuments and three hit jodisfrom Bollywood/cricket). Consumerswere asked to identify the monuments and the faces of the hit pairs of actors (the card showed a face that was half male and half female), and the winnerwalked away with a gift. Consumers were also explained the logic of designingthese games and how, with the usage ofTata Shaktee GCsheets, their homeswould last longer,just as the monuments had survived the trilvails of time andlike the hit pairs of actors, who have had an association that has strengthenedover the years. In brief, the 2005 and 2006 campaign focused not only on awareness,but also convinced the consumer and aroused desire for/interest in the brand, finally motivating the consumer to take the next step of visiting the nearbydealer's place for more specific enquiries and conversion to sales. Impact of the Tata Shaktee Haat Hungama Campaign Therewas a 40 per cent increase in footfalls at the Tata Shaktee haat stall (yearon year basis), an average footfall of 600 visitors per haat stall, a total of

3.5 million potential consumers contacted over five years and a 37 per cent upswing in sales. The Haat hungama campaign started off with less involvement from the distributor/dealer, but slowly caught up by the third year. During the campaign, the Tata Shaktee Distributor ASO was present in 92 per cent of the cases, the product displayed in 93 per cent and the dealer present in 84 per cent of the haats. The campaign seemed effective from this point of view. The Brand Communication Options

The communication media being used currently rested on interactive media directly reaching the rural audience. Video on wheels, innovative media like bullock and camel cart displays, the mobile vans in haats (van with GC sheet display), the Bollywood road show and street plays were all being used along with dealer-based stalls at haats, and games and displays to bolster the involvement of consumers at haats. The agency also suggested a communicationcum-sales lead generation system-an enhanced effort that went beyond the haats by using teams of youths who would visit haats, mandis, as well as conduct direct consumer visits during the haatlmandi off-days. These would be local youth who might even be personally known to consumers. The Shaktee stores also used point of purchase materials and structures to create the Shaktee Sansar (World), meant for both loyal and multi-brand stores, and enhanced the consumers' experience of the brand.

Discussion Questions
1. What is your assessment as a marketer of the opportunities shared by Tata Steel, especially when looking at rural markets? 2. What do you feel about the brand features? Is this relevant to the context we are talking about? 3. What do you propose as a strategy for Tata Steel? Describe each step that you wish to take in detail.

CAS

v
Leader Hits Back

At Colgate-Palmolive India Ltd. (CPIL), the question is how to fight back and take charge of the market that is nearly lost to Hindustan Lever Ltd (HLL).

GLORIOUS

PAST

Till the late 1980s, it was pretty much smooth sailing for CPIL. Smaller toothpaste brands like Promise, built a strong franchise in the early 1980s and then began to flag. Others, such as Forhans and Binaca (that later became Cibaca, and is now part of Colgate), faded away into the background. Then came Lever. For decades, oral-care had been a single-product market with Colgate's white paste offering the twin benefits of dental hygiene and bad breath prevention (with its 'ring of confidence' pledge). Rivals such as Promise had not tried to change the market's basic rules; they had only tried to hew out niches for themselves. But now suddenly, in the late 1980s, Lever wanted to change the very way the market was carved up. It was moving aggressively to segment the market into two distinct need areas, with sharply defined brands for each: Close-Up, a gel paste, for conveyable fresh breath (a youth need) and Mentadent for strong gums and healthy teeth (a task taken on later by Pepsodent). With Lever's advertising, the very dynamics of toothpaste marketing started changing. Soon enough, the white paste was viewed as a boring paste for oldies, and CPIL had to counter each of Lever's brands with offerings of its own. The great toothpaste war had begun. Colgate matched Close-Up with a gel variant of its own, aimed at those who wanted to keep their partners happy (perhaps even attracted by their breath). Simultaneously, CPIL's regular paste turned up the volume on tooth-de cay-fighting benefits. For both these campaigns, teenagers and children were the focus of attention. Lever had a stronger distribution network to leverage, and its advertising blitz was paying off. What it had done to one-time leader Halo shampoo of CPIL, it was keen on doing in toothpaste. Its earlier forays, with Signal and Pepsodent, had been disasters. But this was the 1990s, and now with Close-Up leading the charge, and with urban youth more receptive to a proposition of getting up close with the opposite sex, the company was finally making headway. Over the early part of the decade, Lever made rapid gains in market share, rising from almost nothing to a fifth of the toothpaste market.

216

Cases in Rural Marketing

toothpaste Dental Cn providing conservati toothpaste

CPIL brought Colgate Total, a top end formulation of its US-based parent, to India, priced at 2.5 times its regular paste. The product failed to justify its premium to the consumer, this tartar-fighter was supposed to be the knight in shining armour, and its failure dealt a severe blow to CPIL's leadership of the market. Meanwhile, Colgate's advertising had become 'globally aligned' with US-based Young & Rubicam (which tied up with Rediffusion in India), and lost some of its local zest. Meanwhile, Close-Up even used the historical story of Salim's love affair with Anarkali. In fact, by the mid-1990s, FMCG market analysts had started looking up to Lever with a combination of awe and reverence. India's most admired FMCG marketer had managed to contain the challenge posed by Procter & Gamble (P&G) in detergents, and virtually demolished the P&G-Godrej alliance in the soaps market. The buzz now was that P&G wouldn't dare launch its toothpaste, Crest, for fear of Lever-rather than CPIL. No wonder market analysts were talking of Lever's ascendancy to the top in this category as an inevitability. Colgate Fights Back But CPIL saw the opportunity. The market expansion was to be done as the 90,000 tonnes, ( Rs. 200 crore) toothpaste market had barely grown 3 per cent in 2000 (down from 6 per cent the previous year and 12 per cent before that). "There's been very little conversion to the toothpaste market," admits Vikram Kaushik, Marketing Director, CPIL. There is a need to raise the entire consumption pyramid's value.

THE REAl
The real g action. TOI to the pow Adds use either therefore, i

73 per cer
North Indi sells its rer

Colgate's Product Strategies:

Segment Top End Breath freshness Segment Oral Hygiene segment Regular Paste Natural Economy Tooth Powder Colgate Colgate Colgate Colgate Colgate Colgate Colgate Brand Total Gel Sensitive Care Dental Cream Herbal Cibaca Top Tooth Powder Price Rs' (100 g) 36

RURALM,
Promotion Promotior In 1976, C vans went products, I Overall, a Associatio total 30,00 aspiring dl

35
38 30 23
16.50 19

At the market's apex, Colgate Total, relaunched at a revised price, has started doing well in the past two years. Total is a medically superior formulation that is big in high-awareness markets (such as Australia where it commands 12-15 per cent market share). "Ideally, Total should be the biggest sub-brand," says Samuel, who was earlier heading Colgate's Australian operations, "but since it is pitched at a therapeutically aware consumer group, it will grow only as consumers become more aware". Indeed, Total seems just the perfect product to stimulate upgradations, for it satisfies oral needs on a higher plane by assuring the consumer bacterial-free mouth for 12-hours after brushing and clambering into bed. Importantly, Total can upgrade users of gels as well as protective pastes. The strategy is expected to undo the 1990s' segmentation by harmonizing the two different needs (of partner-satisfaction and oral hygiene) that remain split into two segments in the zone one rung below the market's apex. That too, in a more clinically effective manner (the product addresses the root cause, the germs that cause bad-breath and infections too). Does it stand a chance? It is hypothesized that people outgrow their teenage fixations themselves once they enter mature relationships. CPIL on its part could help with an advertising campaign that shows the value of transcending artificial market divisions. The action in the economy segment is complex because of the presence of multiple brands. Balsara's Babool was already a success. Colgate acquired Cibaca and relaunched it as Colgate Cibaca Top in a modernized package. Colgate Herbal, is launched as a part of its flanking strategy against Aim, a neem

CPIL
teach chik million ch DISTRIBU The philo! consumers distributio

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Colgate n locations weren'tw retail kios

Leader Hits Back es ~d

217

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its

toothpaste by Lever. Aim was a price aggressor, priced at Rs. 6 for a 50-gm tube almost half of Colgate Dental Cream. Colgate Herbal sells at a premium overseas. But it is priced to penetrate in India by providing a value-added option (it contains Indian ingredients such as tulsi, neem, clove and mint) to the conservative buyer of low-priced toothpastes who can't afford to move upscale yet. It is promoted as a toothpaste with the 'science of Colgate and the goodness of nature'.
THE REAL GAME

:G
Ild

i't ire

The real game is at the lower end of the pyramid. The challenge is to rouse the latent brand equity into action. Tooth powder users can be converted to the white paste, and below that, non-users can be converted to the powder. It is a market placed at 26,000 tonnes per annum growing at 2 per cent. Adds Kaushik, "It's challenging that only about 4.5 out of 10 Indians use toothpaste. Only 6 out of 10 use either toothpaste or tooth powder. The other four use other stuff such as twigs or ash. The task, therefore, is to get people to start using a dentifrice product. With penetration still low in rural areas, where 73 per cent of India's population lives, only 35 per cent of the population uses modem dentifrices". In North India, Colgate's white powder, famous for its minty flavour, has a strong competitor in Dabur, which sells its red powder in highly fragmented states such as Bihar and Uttar Pradesh (UP).
RURAL MARKETING

00
nd

im

Promotion and distribution are meticulously designed and implemented

Promotion

by Colgate.

In 1976, Colgate launched "Operation Jagruti" programme, to create oral-hygiene awareness. Nearly 100 vans went deep into rural areas to generate trials through its 30-gm pack. While most of the FMCG products, reach only about 20,000 villages, Colgate reaches 60,000 villages and 18 million rural consumers. Overall, an important part of the education programme is CPIL's association with the Indian Dental Association (IDA). Over the past 25 years, CPIL claims to have reached out to 18,500 dentists (ofIndia's total 30,000) in 1,280 towns and cities. Colgate also sponsors dental conventions and gives scholarships to aspiring dentists. wo Ilia CPIL also runs a programme called 'Bright Smiles Bright Futures', which takes dentists to schools to teach children how to keep their teeth healthy. So far, it claims to have covered 33,000 schools and 15 million children from 112 towns across the country.
DISTRIBUTION

rys
a ual by . to Iral na md
)Os

The philosophy of distribution is like this. A toothpaste is still not a high-involvement, purchase, and consumers can be easily swayed. Availability drives consumption especially in rural markets. Colgate's distribution strategy is a three-pillar one. Physical distribution reach, the width and depth of it. Customer marketing approach. Modernization of sales operations and enhancement of sales efficiencies.

ign 'a's
11

:em

Colgate tries to make its presence felt heavily in 'haats' and 'shandies', as it finds these to be ideal locations to carry out promotions. But by and large, it's the regular system that must do the job. If it weren't well managed, it would be a logistical nightmare. Reaching out to every single village (width) and retail kiosk (depth) is a mind-boggling task. India has around 3 million retail outlets that 'Stock toothpaste,

218

Cases in Rural Marketing

Colgate supplies stock which are 'key account

ranging from roadside kiosks to fancy supermarkets. holders', supplying supermarket chains and the like.

Directly, Colgate sells products to about 850,000 outlets. The customer approach is one that treats everyone involved in distribution as a customer who must be kept satisfied. Each stockist, for example, is part of Colgate's incentive plan, such as the 'Colgate Dil Se' plan for wholesalers. Says Hegde, "A stockist should earn at least twice the return that he gets from a bank deposit, since he's investing in our business". Retail margins vary by product category. In an effort to modernize its sales operations, Colgate is automating its stockists, to try and track market data on a real-time basis. This would give it a better feel of the market pulse. As it is, it runs on a fairly well-oiled system, with speed to market (from factory to deepest rural retail outlet) being about two weeks. Products move from factory to a central warehouse in each state, and then to the stockists, who in turn distribute the stuff to retail outlets by vans. Since stockists are Colgate's redistributors, it's easy to track demand by watching their numbers. That's the basis for its forecasting, on a monthly basis. Once the entire system is automated, Hegde hopes, it could reduce to a weekly basis. However, in the smaller Kirana stores (comer shops), the toothpaste wars take on a different hue. Here, it's a brawl for signage and shelf space, and Lever has the advantage of having a powerful portfolio of other products, which gives it a greater hold on shopkeepers. For larger retail stores, CPIL acts as the Colgate Shoppe program, which is a shop-with in-shop concept. The company rents out the shelf space to display its products. For smaller retailers, POP material is made available. GROWTH AGENDA Says the Managing Director, "With our strategy in place, and the organization completely aligned with that strategy, we have created a more exciting environment at Colgate. We want to drive growth while continuously looking at reducing costs, especially in our supply chain. We increasingly have a team approach to our strategy". The fact that all CPIL employees have to undergo an in-house dental check-up twice a week is testimony to how seriously it takes its job of keeping people's teeth in good order. Brand signage needs powerful product portfolio. In India, CPIL's product range is narrow. With its R&D centre in Mumbai, CPIL boasts of product development (and speed of hitting the market) as a key strength. It took the company only six weeks to respond to Aim with Cioaca Top. The main elements of its growth strategy are: Expand product offering-straddle varied segments, upgrade consumers. Improve efficiencies--enhance vendor management. Widen coverage-through rural, urban, new products and dental programmes. Partner dental profession-through grants, sponsorships and scholarships. Leverage technological leadership-faster speed to market through R&D. Empower and energize human capital-build a seamless organization. Strengthen brand building-renew advertising vigour.

LG Elec

products, Managin

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the thror turnover Mr.: has been

televisior

machine!

TARGET

QUESTIONS I. 2. Explain in detail how Colgate regained its hold in the toothpaste market? . Considering the growth agenda of Colgate, suggest appropriate rural markets. A&Ms measures to gain stronghold in

"The Ind high tech priced pn segment cent in th Pradesh, segment. of time a~ Head, A~ in the ne: the follos

COMPET

Apart fro heavywei

Source