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RURAL PACKAGING STRATEGY

OVERVIEW
What is Rural Product
Packaging in rural
LUP strategies
Rural packaging strategy
Case study : Parachute
Case Study : Frooti
Rural Product and Categories
Rural Consumer
outlook
Not a dumping
ground for lower
end products; need
specific products
Cost-benefit
analysis
Ex.: MUV, Chinese
VCD brand
PLC and Strategies
Seeding Sampling Harvest Stage Withering
Stage Stage Stage

Easy to use products, supported after sale

Conveniently packaged for low price

Product literature needs to be simple, functional benefits, vernacular languages

Brond logo and color of product


Packaging in rural
Protecting the product
Primary level

Secondary Aesthetic and sales


level appeal

Associated with affordability - Refill packs/reusable


Convenience - Consumer packaging
recognition & product Eg: packing fertilizers in LDPE
protection (material plastics, or HDPE sacks
poly packs, unbreakable
material)
Looks - attractive colours Size and convenience- small is
increase the visual appeal beautiful
easy to display
Rural Packaging Strategy
Sachets/ LUP

Bubble Packs : combination of mini packs for rural


- Priced at Rs 8 and Rs 14
- Intermediary between a sachet and a bottle
- Upgrade sachet user
Rural Packaging Strategy
Unique Shape & Differentiation Packaging Strategy.

Easy To Use Packaging Strategy


Sachets with nozzles
Flip Top Cap
Easy Jar
Reusable Sachet
Unbreakable Bottles
Countering spurious brands
Look Alikes
Spell Alikes
Duplicates
LUP Strategy/Sachet Marketing
Sachets-What is it?
R. Chinnikrishnan-'Father of the Sachet Revolution'.
1983- Chik Shampoos have ben started to sold.
Parle-G Tikki packs at Rs 2.
Emami selling Zandu Balm at Rs 2.
Dairy firm Parag Milk Foods to introduce ghee in sachets
Also , Parag Milk Foods has introduced Buttermilk and lassi .
Sachet Marketing
LUP Marketing
Rural Marketing By Marico
Parachute
Rural Consumer Insight
Rural India buys:
Manjunatha.K (2004) put forth that the consumption pattern
of rural people is increasing in recent years. The rural
consumer wants to acquire the urban life system in their
buying behaviour and it is reflected in their buying decisions.
They further state that consumption pattern & purchasing
frequency is directly related to the income & need of the
consumers.
Products more often (mostly weekly/daily)
Buys small packs, low unit price
Fewer brand choices in rural
Rural Marketing Challenges

Poor Infrastructure
Non-availability of shops
Unemployment
Poor media penetration
Skeptical customers (less use new brand )
Rigid social customs
Duplicity
Rural Marketing By Marico
Problems faced by Marico
Threat of 55% market share of Marico in Hair
Oil category
Kolkata-based Emami Ltd came up with a Re1
sachet that contains 2.7 ml of its Navratna
cool hair oil aiming at rural market.
Need to revive rural growth.
Product Parachute- Mini

Thermofoam filled packet of 2.5ml

Parachute entered the rural market through laminated


pouches and its flip-top and mini-packs

The seal guarantee bottles made it difficult to duplicate


Price

Marico launched parachute mini a bottle shaped small pack


being sold at an MRP of RS 1

20 ml parachute at Rs 5 that enables loose oil users to


change parachute.
Place
Maricos parallel rural sales & distribution network ranks the
top three in the industry with:
882 direct distributors
153 super distributors
2393 small stockists and
4523 van markets
Implemented SAP to integrate operations and supply chain
MI-net : provide real time information on the status of
business operation between Marico and distributors
Parachute oil advertisements in Rural
India
Promotion
Marico Industries launched a van campaign
-To create awareness for Parachute Coconut Oil Pouch in
towns with less than 20000 population
Consumer Promotion in rural areas Parachute is sponsors jatra
(open-air folk theatres) to facilitate an increase in Parachute's
market presence in rural areas.

https://www.youtube.com/watch?v=Vj0-J7Q0lr0
https://www.youtube.com/watch?v=oJVqyC1pVAc
Results
During the quarter ended June 30, 2010, Maricos
rural sales at 15% grew faster than its urban
growth, which was around 9-10%.
A study by Marico showed a 25% conversion from
loose coconut oil usage to Parachute Pouch Pack,
post van campaign and a substantial increase in
sales from the campaign areas. This is because
we have consciously driven recruiter pack
(smaller stock-keeping units) and tried to increase
consumer franchise,
Rural Marketing By Parle Frooti
Market Share of Parle Agro
Problems faced by Frooti
Decreasing share in Fruit juice segment and sluggish growth as compared
to aggressive strategies of Coke & Pepsi in the rural india.

Presence of huge unorganized market.

High consumer preference for flavours other than mango and green
mango.

Skeptical customers

Poor Infrastructure

Non-availability of shops

Duplicity
Product: Frooti tetra pack
Packaging Combination of layers of paper, plastic and aluminium

Plastic layer-waterproof &light

Aluminium layer- protects from light, oxygen and odor

Paperboard- helps the pack to stand up and maintain shape

Tetrapack-2layers of paper-enhanced shelf life


&prevents tamper-proof
Price
Priced at Rs 2.50 a pack, Frooti is cashing in on the popularity
of the Rs 5 price point.

The new tag line for Frooti tetra pack is paanch ka do (two for
Rs 5)

Though most people in cities can afford a product at Rs 5,


rural markets consider this quite high. Hence 'Paanch ka do'
Parle Agro has strong rural distribution network:
1512 direct distributors
353 super distributors
Duplicate Yesterday-
Competitor Today
Distributor of Vadodara-based beverage
maker Manpasand launched Mangosip in
Aurangabad
Distributed to retailers along with a puja thali
and four laddoos
Today, MangoSip is the countrys fourth
largest selling mango drink
Thank you