Sufiyan Alsulkar Prashant Bansode Lalit Dixit Archana Kane Akbar Khan Arif Khan Zameer Alam Khan

Deals with delivering manufactured goods/services to rural producers Involves an urban to rural activity Not much developed in India

Motor dealers to set up compact F1outlets for Nano

August 2008, Kolkata

* Will opt for a hub and spoke model to market Nano in Rural Areas * Smaller showroom to set up in surburbs and Rural Areas * Sources stated some dealers already acquired space in these areas * Company believes : Majority sales would come from Rural India

Airtel promoting mobile telephony in rural markets

6th August 2008, Chennai

* New Scheme, Grameen Mobile Puratchi announced to promote mobile telephony in rural market of Tamil Nadu * Will offer customised services to target the farmers * Airtel connection will provide agricultural information * Other services would offer : weather report, farming techniques, rural health initiatives, animal husbandry, etc

Santro launches new initiative to tap rural market

July 2008

* Launched a marketing initiative: Ghar Ghar ki Pehchaan, (Valid till 31st July 2008) for tapping rural market * Rolled out special scheme for government employees in rural India on purchase of the car * Planned to touch 58% of Indian villages * Promoted the scheme through road shows, posters, etc

Himalaya gets ready for Rural Play

June 2008, Bangalore

* Launched SBU for expanding into smaller towns and hinter land districts * Rural share of Indias pharma market rose from 18% to 21% * Survey stated, rural market would contribute as much as metros * The districts covered up would rise to 400 from 250

Maruti to focus on Rural Areas to gear up car sales

June 2008, New Delhi

* Launched a PAN India campaign to tap the vast potential of the Rural market * Conducted a 6 month pilot project to increase sales * Aimed to position itself as the first mover in villages * Maruti roped in large number of rural banks to increase the finance penetration * Offered cash discounts and other promotional schemes

Pharma firms see big gains in small towns

6th June 2008, Ahemdabad

* Lack of infrastructure helped to expand their network * Challenges in rural areas : inadequate infrastructure, connectivity problem, unavailability of stockists, reaching the rural customers, accessibility of doctors, etc * Focus of Rural Marketing : U.P, M.P, Maharashtra, and Northern and Southern region

LGs Rural thirst helps drive sales

July 13, New Delhi

* Company registered a little growth from the rural markets * Moved its focus to interior of India after establishing in urban market * Focuses to penetrate into deeper India after establishing in urban area * Rural thrust was strong with Sampoorna T.V * Geographical reach of the company helped matters

Rural pop is about 73% of the total pop Total turnover of Rs.4500 Crore & share of 55 % corporate houses perceived great opportunity Urban 4%, Rural 11% long thought luxury -become a household sight With 128 million households, the rural population is nearly three times the urban(MNC)

Increase in income Growth in education Enlarged media reach Growing interaction with urban area Marketers s effort to reach rural areas

The growing oppurtunity, one main driver Heat of competition in the urban market

Bihar - Horlick Punjab - Washing Machine

LG is a South Korean MNC Worlds 3rd largest appliance maker LG electronics India was established in January 1997 LG India deals in many products
AC Flat Panel Display Microwave Oven

Refrigerator Television Vacuum Cleaner Washing Machine Mobile Phones

 LG India- tripled the number of its retail & distributor outlets in rural areas from 2004 to 2008. The avg. price of its Sampoorna range of CTVs came down to about the price so competitive that, thereby bridging the gap between CTVs and other local B/W TVs. It also tapped local forms of entertainment like annual haats and fairs and made huge investments in infrastructure for distribution and marketing.

1000 In Store Demonstrators at Dealer counters in Rural Cities

Mobile Van at Kasargod

Cookery Classes at different locations for Rural Housewives

Promotion of Sampoorna TVs

Mobile phone market penetration strategies

LG-BSNL Reliance tie up for rural market. Handsets which are cheap and with offers are provided to the rural customers.

Customization Positioning Innovative marketing Product localization - Product

localization is a key strategy used by LG. It came out with Hindi and regional language menus on its TV.
Regional distribution model -

This has resulted in quicker rotation of stocks and better penetration into the B, C and D class markets.

Population

Number of Villages

% of Total

Less than 200 200-499 500-999 1000-1999 2000-4999 5000-9999 10000 and above Total

114267 155123 159400 125758 69135 11618 3064 638365

18.00% 24.30% 25.00% 19.70% 10.80% 01.80% 00.50% 100%

LGs turnover 2002 - 60% Today 40% (urban) Turnover of 10,750 crore (2008) 13,000 crore (2009) Sales contribution 35% (2008) Manufacturing capacity 30% by 2009 By 2009-10, urban 4% rural 11%

Political Factor High Import Duty Plants in tax- Incenticve areas like greater noida and pune. Export promotion schemes of the Indian Govt like EPCG(Export Promotion Capital goods scheme) and EOU (Export Oriented Unit) status. Economic Factor Increase in per capita income Growing GDP high disposable income Increase in Spending Power

Socio Cultural Factor They are manufacturing Eco friendly Products. Increased Life Style. Technological Factor. Improvement in Technology made the electronic product cheaper. Quality of product has been increased

Strenght
Market leader in home appliances segment. Manufacturing unit in tax incentive areas. Wide range of products categories to tap the consumer of middle class, Upper Middle Class and High Class. LG, having the widest distribution network in the industry (47 branches, 175 area offices and over 10,000 trade Partners). Shifting to Rural Market. Weakness Consumer Compare LG products with its competitor Samsung, not with other foreign brand. Similar Product Categories are compare to its close competitors Samsung.

Opportunity: Shifting to rural Market Control over the white goods market, as we know highest market share in home appliance market Home Appliance Market is growing very fast, so there is a opportunity for LG to launch new products. Threat: The Closest Competitor Samsung is also from south Korea and consumer compare LG to Samsung Price war with its closest Competitor, Samsung. Competitions from Indian Brand and From new Entrants.

Giving Hindi names to the products How have they reduced cost without affecting the quality Videos Focus the Melas and focus them Play with their emotions with Ads

Introduction of finance schemes To roll out several new models in low-end segments Colour televisions and audio systems will have a big market due to their low pricing policy. Schemes like giving trial of products, and making them aware of usage of products The main challenge is electricity or power making that kind of products in which there is less usage of power

Launch more models in their Sampoorna television range. Rural market is less affected than urban market in slowdown. Then makes distribution network more strong.

Invest $ 40 million in 2009 Expecting Rs 13,000 crore turnover in 2009 15% plus growth rate in rural marketing Decided to double business by 2010 Launching 5 new Models in Flat Panel Display Form new kitchen appliance business group Focus on low-end products

Invest Rs 400 crore on Marketing this year compared to Rs 350 crore in 2008 Launching 2 by 10 Blue Ocean Strategy