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IIPM
THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT Rural and Social Marketing - Re-Examination Assignment Paper Code: IIPM/MKT04/RS002 Max. Marks: 100
General Instructions: The Student should submit this assignment in his/her own handwritten (not in the typed format). The Student should submit this assignment within 2 days from the issue of the assignment. The student should attach this assignment paper with the answered papers. Write legibly and keep the length of the answer as per the weightage (in terms of marks) assigned to each question. DO NOT be unduly short or long in providing the relevant details. The student should only use the Rule sheet papers for answering the questions. Failure to comply with the above instructions would lead to rejection of assignment. Specific Instructions: There are Four Questions in this assignment. The student should answer all the questions along with their subparts. Marks are being assigned to each section of the question as well. Each Question carries equal marks (25 marks) unless specified explicitly. Question-1(A)[15Marks] Making Inroads into the Hinterland It's there, but just a little bit out of reach and focus. Indian FMCGs, who hit the dusty roads out of the cities to chase the great Indian rural marketing dream, are finding out that the pot of gold at the end of this rainbow isn't easy to find. Before gamboling into issues like where the Indian rural market stands and the opportunities for corporate to explore there... let's look at the definition of urban and rural India. The Census defined urban India as - "All the places that fall within the administrative limits of a municipal corporation, municipality, cantonment board etc or have a population of at least 5,000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square kilometer. Rural India, on the other hand, comprises all places that are not urban!"

Now for some facts and figures. The Indian rural market today accounts for only about Rs 8 billion (53 per cent - FMCG sector, 59 per cent durables sale, 100 per cent agricultural products) of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share. So clearly there seems to be a long way ahead. Time and again marketing practitioners have waxed eloquent about the potential of the rural market. But when one zeroes in on the companies that focus on the rural market, a mere handful names come to mind. Hindustan Unilever Limited (HUL) is top of the mind with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'. The lynchpin of HUL's strategy has been to focus on penetrating the market down the line and focusing on price point. Furthermore, activating the brand in the rural market through activities, which are in line with the brand itself, is what sums up HUL's agenda as far as the rural market is concerned informs MindShare Fulcrum general manager R Gowthaman. Amul is another case in point of aggressive rural marketing. Some of the other corporate that are slowly making headway in this area are Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero Honda to name a few. We can safely say that until some years ago, the rural market was being given a step-motherly treatment by many companies and advertising to rural consumers was usually a hit and miss affair. More often than not, the agenda being to take a short-cut route by pushing urban communication to the rural market by merely transliterating the ad copy. Hence advertising that is rooted in urban sensitivities didn't touch the hearts and minds of the rural consumer. While, this is definitely changing, the process is slow. The greatest challenge for advertisers and marketers continues to be in finding the right mix that will have a pan-Indian rural appeal. Coca Cola, with their Aamir Khan ad campaign succeeded in providing just that. Corporates are still apprehensive to "Go Rural." A few agencies that are trying to create awareness about the rural market and its importance are Anugrah Madison, Sampark Marketing and Advertising Solutions Pvt Ltd, MART, Rural Relations, O&M Outreach, Linterland and RC&M, to name a few. Also, the first four agencies mentioned above have come together to form The Rural Network. The paramount objective of the Network is to get clients who are looking for a national strategy in rural marketing and help them in executing it across different regions. Interestingly, the rural market is growing at a far greater speed than its urban counterpart. "All the data provided by various agencies like NCAER, Francis Kanoi etc shows that rural markets are growing faster than urban markets in certain product categories at least. The share of FMCG products in rural markets is 53 per cent, durables boasts of 59 per cent market share. Therefore one can claim that rural markets are growing faster than urban markets," says Sampark Marketing and Advertising Solutions Pvt Ltd managing director R A Patankar.

"Yaara da Tashan..." McCann Erickson's ads with Aamir Khan created universal appeal for Coca Cola. Coca-Cola India tapped the rural market in a big way when it introduced bottles priced at Rs 5 and backed it with the Aamir Khan ads. The company, on its behalf, has also been investing steadily to build their infrastructure to meet the growing needs of the rural market, which reiterates the fact that this multinational has realised the potential of the rural market is going strength to strength to tap the same. In 2000, ITC took an initiative to develop direct contact with farmers who lived in far-flung villages in Madhya Pradesh. ITC's E-choupal was the result of this initiative. Clearly the main challenge that one faces while dealing with rural marketing is the basic understanding of the rural consumer who is very different from his urban counterpart. Also distribution remains to be the single largest problem marketers face today when it comes to going rural. "Reaching your product to remote locations spread over 600,000 villages and poor infrastructure - roads, telecommunication etc and lower levels of literacy are a few hinges that come in the way of marketers to reach the rural market," says MART managing director Pradeep Kashyap. Citing other challenges in rural marketing, Patankar says, "Campaigns have to be tailor made for each product category and each of the regions where the campaign is to be executed. Therefore a thorough knowledge of the nuances of language, dialects and familiarity with prevailing customs in the regions that you want to work for is essential. The other challenge is the reach and the available means of reaching out to these markets, hence the video van is one of the very effective means of reaching out physically to the rural consumers." The fact of the matter remains that when compared to the Indian urban society, which is turning into a consumerism society; the rural consumer will always remain driven by his needs first and will therefore be cost conscious and thrifty in his spending habits. "Decision-making is still conscious and deliberated among the rural community. But nevertheless, the future no doubt lies in the rural markets, since the size of the rural market is growing at a good pace. There was a time when market predictions were made on the basis of the state of the monsoon but this trend has changed over the years; there is a large non farming sector, which generates almost 40 per cent of the rural wealth. Hence the growth in the rural markets will be sustained to a large extent by this class in addition to the farmer who will always be the mainstay of the rural economy," affirms Patankar."Although the melting of the urban - rural divide will take a while, this is not for want of the availability of the means but for want of the rural consumer's mindset to change; which has its own logic, which is driven by tradition, custom and values that are difficult to shed," he points out. Fulcrum's Gowthaman says, "The biggest impending factor or deterrent on rural monies going up is that there is a general sense of trying to benchmark cost per contact (CPC). The television CPC

is going to anyways be cheaper to rural CPC and unless and until the volume - value equation turns the other way round, you will not be able to spend disproportionate monies in the rural market." For HUL, a one rupee or a five rupee sachet or the Kutti Hamam (the small Hamam) helps in giving the consumers a trial opportunity. While it does help in generate volume but not in terms of values. "Till the time that volume - value equation is managed better, the CPC is preventing anybody to look at rural at a large scale activation programme," reiterates Gowthaman. Ultimately, the ball lies in the court of rural marketers. It's all about how one approaches the market, takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity. Anugrah Madison's chairman and managing director RV Rajan sums up, "There is better scope for language writers who understands the rural and regional pulse better. I also see great scope for regional specialists in the areas of rural marketing - specialists like Event Managers, Wall painters, folk artists, audio visual production houses. In fact all those people who have specialized knowledge of a region are bound to do well, thanks to the demands of the rural marketers." So the fact remains that the rural market in India has great potential, which is just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor as it used to be a decade or so back. Things are sure a changing! Now answer the following questions carefully.. (7.5x 2 ) Identify the reasons for the withdrawal or limited success of the FMCG companies in the rural market. Can you recommend any solutions to these problems/ challenges in the rural market? Examine the strategies adopted by the FMCG companies in the case to ride over the slump. Also give some more examples of successful rural marketing strategies adopted by companies other than those mentioned in the case that have customized their products exclusively for the rural market.

Question-1(B)[10Marks] Read the following case carefully and answer the questions which are being given in the last ..

Now answer the following questions carefully Critically evaluate each of the measures suggested to Ms. Sailja. What alternativ measures in alternative the product may be considered to encounter fakes? Suggest changes in the marketing mix that might be adapted to counter the issue of fake products. Question-2(A)[10Marks] Read the following case carefully and answer the questions which are being given in the being last .

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Now answer the following questions carefully With a view to the current circumstances, suggest a suitable action plan to JRC to help it convert the crisis they are facing into an opportunity. Based on the Marketing programs in UP and Bihar, examine the possibilities of entry & acceptance in other markets. Question-2(B)[15Marks] A silent revolution is sweeping the Indian Countryside. It has compelled marketing whizkids to go rural. The marketing battlefield has shifted from the cities to the villages, but in this battle both consumers and companies are winners, it is a win-win situation. Go Rural seems to be the latest slogan. Stop depending on the research numbers. Go and meet up a million villagers and ask them what they want. Create products and services that is relevant to their needs. Name some companies that have been successful in the rural market by understanding the needs and wants of the rural consumers. Explain why they have been successful with special reference to the 4 A,s of rural marketing .

Question -3(A)[10Marks] Read the following case carefully and answer the questions which are being given in the last .

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Now answer the following questions carefully. Identify the rural marketing characteristics & strategies for the successful marketing of drugs. In the given scenario suggest a detailed marketing plan for the launching of Sanjiva in rural areas. Question-3(B)[15Marks] Read the following case carefully and answer the questions which are being given in the last .. Lifebuoy's Swasthya Chetna (LSC) was a five-year health and hygiene education program initiated by Hindustan Lever Limited (HLL), the Indian arm of the fast moving consumer goods (FMCG) major, Unilever. The program was formally launched in 2002, in eight states across India. The objective of this program was to educate around 200 million people in rural and urban areas about the importance of adopting good 'health and hygiene' practices. The program spread awareness about germs and their adverse effects on health, and how proper 'health and hygiene 'practices, such as bathing and washing hands with soap could prevent diseases like diarrhoea. According to HLL, LSC was not a philanthropic activity, but a marketing program with a social benefit. HLL sought to grow the Lifebuoy brand in India by attracting those consumers who never used soap. In the process, the company sought to bring about a behavioural change by convincing people to use soaps more frequently, thus creating more users for its brand. This program was also seen as a successful case for public-private partnership. In April 2006, Lifebuoy, a leading soap brand manufactured and marketed by Hindustan Lever Limited (HLL), the Indian arm of the fast moving consumer goods (FMCG) major, Unilever, became the first brand in India to be featured on a postal cover. On the occasion of World Health day, on April 7, 2006, the Minister of State for Communications and IT, Government of India (GoI), Dr Shakeel Ahmed, released a special Lifebuoy Swasthya Chetna Postal Cover .The Department of Post under the Ministry of Communications issued this Special Postal Cover in recognition of the work done by HLL to increase awareness about health and hygiene, through its Lifebuoy 'Swasthya Chetna'('Health Awakening') program in rural India Speaking on the occasion, Chief Post Master General of the Maharashtra3 Circle, K Noorjehan, said, I congratulate Lifebuoy and Hindustan Lever for initiating and assiduously implementing this socially beneficial movement. Lifebuoy's Swasthya Chetna (LSC) was a five-year health and hygiene education program launched by HLL, in 2002, in eight states across India. The objective of this program was to educate around 200 million people in rural and urban areas about the importance of adopting good 'health and hygiene 'practices. The program spread awareness about germs and their adverse effects on health, and how proper 'health and hygiene 'practices, such as bathing and washing hands with soap could prevent

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diseases like diarrhea. Our number one aim is to challenge the misconception that 'visibly clean' is 'hygienically clean'. And we are working with parents and children, health educators, teachers, community leaders, and government agencies to spread the word, said Caroline Harding, Global Brand Director, Health Brands, Unilever. In the process, HLL sought to increase the sales of Lifebuoy soaps by convincing these people to use soaps more frequently and also to create new users for its brand. HLL launched the LSC program in villages where media penetration was negligible. The people of these villages were educated through lectures, demonstrations, visual aids such as flip charts and interactive quizzes. Various media vehicles were used in the program including cinema vans, wall paintings, weekly markets, fairs, and festivals. The initiative started with communication to schoolchildren, which was extended to their parents and other adults, and culminated in the formation of sustainable health clubs by the local people. The whole process took around two to three years. HLL had committed US$ 5.4 million for this five-year program.6 The program was implemented by Ogilvy Outreach, while Weber Shandwick , one of the largest public relations (PR) agencies in the world, provided the PR support. By the end of 2005, HLL had covered more than 18,000 villages in these eight states. The sales of Lifebuoy grew by 20 percent in 2003-04 with strong sales reported from the eight states where the program was being implemented. In 2005, the Lifebuoy brand grew by 10 percent and this growth was expected to continue in 2006. The program also received a lot of positive media attention. Now answer the following questions carefully What is the rationale behind the Lifebuoy Swasthya Chetna initiative by Hindustan Lever Limited (HLL) in India? How did the social marketing message help HLL in increasing the market share? Also give suggestions to HLL to improve itsmarket share. Discuss the role of public-private partnerships as a win-win situation for private entities, governments, and individual consumers. Question-4[25Marks] Read the following case carefully and answer the questions which are being given in the last Case Study HULs Rural Foray After tapping the premium and popular segments, HUL has entered the lower end of the tea market with its new offering, Brooke Bond Sehatmand.

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More than a hundred years ago, Hindustan Unilever launched a soap called Lifebuoy in India. The brand, which saw unparalleled success, promised to protect users from germs. In the next 114 years, the brand has never moved away from its original positioning and sales pitch. More importantly, it has given the Anglo-Dutch maker of fast-moving consumer goods a strong hold over the rural markets. Then, around four years ago, the company brought out Brooke Bond Natural Care, a tea that used five natural ingredients and promised good health. The success of the product prompted the company to sit up and take notice. Having covered the popular segment with a thrust on health, HUL felt that great potential lay in the vastly untapped economy segment which makes up a whopping 45-50 per cent in terms of volume as well as value. "That's when we realised it is critical for us to be there," says Arun Srinivas, who heads HUL's beverages business. And Lifebuoy's success was just the inspiration Srinivas and his team needed. Thus was born Brooke Bond Sehatmand. The term sehatmand means health-giving in Hindi. At present, HUL has Taj Mahal Tea in the premium segment, Red Label in the popular market and Taaza that covers mid-market price points. However, entering the economy segment wasn't going to be an easy task. One, loose tea makes up 65 per cent of the market, packaged tea accounts for only a third. Two, this is a market dominated by regional brands. HUL and Tata Tea, the country's two largest tea companies, cater to just the top 40 per cent of this market - the rest is shared by several regional brands. "While price is an important factor in this segment, we had to have a winning proposition to differentiate ourselves from regional tea makers," explains Srinivas. Rural target Thus began extensive research using the company's internal tracker called Living Standards Measure (LSM) to determine the success of the product. LSM can range anywhere between one and 18 - a higher score shows a higher living standard. For Sehatmand, HUL needed to target LSM 1-4 individuals (those who cannot afford their own mode of transport) the bulk of who reside in rural areas. Research reiterated what HUL felt. India has over 200 million undernourished people, the largest in any country. Nearly 70 per cent of the population is deficient in iron, vitamins and minerals. But with growing awareness, research showed that these people were concerned about their access to supplements. Most of all, they were worried if their children were getting adequate nutrition. "Iron, we were sure, would not be a good fit for tea, hence we decided to take the vitamin route," Srinivas points out. But given HUL's wide product range, why did the company choose tea as a health supplement? Says Srinivas, "Tea is a widely consumed product with 95 per cent penetration." To ensure differentiation, technology was the key. "Most tea makers today merely blend the product, but with the help of our research & development arm in Bangalore and our Tea Excellence Centre in Kolkata, we've ensured that each granule of tea contains vitamins."

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With this breakthrough technology, vitamins have been fused into each granule of tea. And drinking three cups of Sehatmand, the company promises, will ensure 50 per cent Reference Daily Intake (RDA) of important B vitamins. This is how HUL hopes to differentiate itself from rival Tata Tea which has a brand called Agni in the popular economy segment. Differentiating factors Taste too has been given priority based on geographic preferences. "Taste palates vary across the country, which is why tea has largely been a regional product. So, Sehatmand in Uttar Pradesh will not taste the same as in Maharashtra," Srinivas says. Thus, for each region the company has come out with a unique taste, colour and aroma. For instance, South India has a strong preference for strong and dark tea, while North India is inclined towards taste and aroma rather than colour. HUL has paid close attention to these nuances. A great product may be fine, but it will be a marketing challenge for HUL. Television commercials will air on cable, satellite and state-owned Doordarshan in February. In addition, there will be heavy advertising on All India Radio as well as extensive on-ground activation to reach the target audience (rural consumers). For this, HUL will tie up with non-government organizations. Further, it will launch an awareness campaign called "Sehatmand Parivar - Sehatmand Bharat" in schools. HUL feels that children are an important tool for the company to get its message across. "Parents want to ensure the best for their children, which is why they send them to school in the first place," says Srinivas. As for distribution, Sehatmand is relying on the scale and might of HUL. It will also tap Project Shakti, an initiative HUL started in 2001 to increase the company's distribution and provide rural women with income opportunities. Through this initiative, HUL hires a Shakti Entrepreneur or Shakti Amma who sells the company's products either door-to-door or through shops. Brooke Bond Sehatmand is priced at Rs 20 and Rs 39 for 100 grams and 200 grams, respectively. The prices are at a 15-18 per cent premium when compared to loose tea. To tackle this, HUL has launched smaller packs of Rs 5 and Rs 10 as well. "With Sehatmand, we want to be both affordable and accessible," adds Srinivas. At present it has been launched only in Madhya Pradesh, Chhattisgarh and Bihar, but over the next six months it will be rolled out across the country in a phased manner. Answer the following questions from the case study HULs Rural Foray Identify the various segments and the related attributes of the target market. Identify for HUL the positioning, distribution and pricing strategies for the marketing of HULs Sehatmand and Lifebuoy.. Do you agree with HULs marketing strategies? Why / Why not? Suggest further tweaking of this business model for the betterment of the brands penetration into rural markets.

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