4 PS OF RURAL MARKETING

Rural Marketing
Rural markets of India have acquired significance. Green Revolution , due to which rural india consuming larger quantity of products. The concept of Rural marketing in Indian Economy. Rural markets are growing at above 2 times than urban market. Today rural market occupies larger part of economy.

Why Go Rural
Low penetration rate. The basic reason of companies. A recent survey conducted by Mckinsey . Rural market is estimated to grow more than 5 times than of urban market.

Here are some facts about Rural Market validating the notion of potentiality : 1. Infrastructure is improving thick & fast.

2. Social indicators have improved immensely during last 10 years.

1901

1911

1921

1931

1941

1951

1961

1971

1981

2000

2009

3. For promotion & distribution marketers can make effective use of following infrastructure as well.

Hindustan Unilever Limited

Indias largest FMCG company. Categories of goods in Home & Personal care & Food & Beverages. Its countrys largest exporter. Recognised as GOLDEN SUPER STAR TRADING HOUSE by government of India. HUL rural trust is not new. It stand 1st among the FMCG companies .

4 Ps
A set of marketing tools that the firm uses to pursue its marketing objectives in target market. 4 Ps Product, Place, Price & Promotion.

PRODUCT

The rural consumer is very conscious about getting value for money. Low price, high quality & multiple uses. Lifestyle & needs of the rural consumers.

Product Strategies
Small unit & low priced packing. New product designs/ Product offering. Sturdy products. Brand name.

Lifebuoy

lifebuoy

lifebuoy

Launched in the year 1985. Message lifebuoyof health. Relaunched in the year 2000. Sold 20 lakhs daily & has 600 million users anually. lifebuoy 70% sales are from rural markets. lifebuoy 40% of HUL turnover.

lifebuoy

lifebuoy

Products
Breeze 2 in 1: value added product. Vim bar: brand awareness in rural masses. Surf excel. Broke bond sehatmand.

PRICE

PRICING STRATEGY
Affordability is, in determined by two factors

Income of consumer Price of the Product & Services

Pricing Objectives HUL

HUL

Profit maximization in the long run Minimum returns on sales turnover Deeper penetration of the market Here objective is market expansion so the company launches its product at a lower price Keeping with competition

HUL

HUL

HUL

HUL

Pricing Strategies
Low Price Points: HLL sells the maximum number of its products in sachet packs in rural areas. For e.g.:- Pepsodent toothpaste is available for Rs.4 Avoid sophisticated packaging Highlights Value AND not price

Pricing Strategy
Low Price
Pricing the product at a lower price really attracts rural population for trying the products.

For many HUL products, low price point is an important factor to draw new customers and increase consumption

Pricing Strategy
Refill/Reusable Packaging

By giving refill packaging marketers can add value pricing of the product. Bru coffee available in refill pack Detergent made is available in reusable packaging.

Pricing Strategy
Credit Facilities The credit period varies between 7-30 days in the case of fast moving consumer goods 60-90 days credit for fertilizers , seeds , etc.

Lifebuoy Deo Fresh has been introduced especially for young adults who lead active Lifebuoy Total is for all those mothers with active kids who constantly fear hygiene threats from germs leading to stress and anxiety for the mothers and is available at Rs 12 for 125g, Rs 10 for 100g and Rs 5 for 55g. lifestyles. It is available at Rs 10 for 100g. Lifebuoy Nature, on the other hand, comes with neem and tulsi and is available at Rs 10 for 100g.

Lifebuoy Gold Care is specifically designed for sensitive skin and is available at Rs 10 for 100g.

Lifebuoy Total

Lifebuoy nature

Lifebuoy care

Operation Bharat: Bundle-Price Strategy

HLL launched a combo pack comprising a Clinic shampoo bottle, a tube each of pepsodent and Fair & Lovely ad Ponds Dream Flower Talc fro rural areas. HLL provided hampers at discounted prices of Rs. 5 Rs.10 and Rs.20 each in different sizes and combinations. The project was aimed at addressing issues of consumers awareness, attitudes and habits As consumers in rural areas were exposed to and became familiar with such value added value for money alternatives.

 Competitive prices: Neither high nor low

PLACE

PLACE
What do you mean by place? Distribution channel in rural market. HUL took out project streamline to significantly enhance the control on the rural supply chain.

DISTRIBUTION CHANNEL OF HUL

6000 sub-stockists. Covers 50000 villages, reaching about 250 million consumers. Indirect coverage method.

Distribution strategy of HUL

Network of about 7,000 redistribution stockists. The general trade comprises grocery stores, chemists, wholesale and general stores. HUL is using the point of purchase method for much higher level of direct contact, through in-store facilitators, sampling, education and experience. 2,000 suppliers and 7,500 distributors serve HULs 100 factories which are decentralized across 2 million square miles of territory.

LIFEBUOY
Today Lifebuoy is mainly sold in Asia and parts of Africa. It is market leader in every Asian market where it is sold. Basically if we talk about india 70% of the population lives in villages , so company sees a great opportunity in villages & trying to cover that.

LUX AND PEPSODENT

2000+ Suppliers and associates 4000 Redistribution stockists Covering 1 million retail outlets. Pespsodent have a market share of 17% in oral market.

PROMOTION

What is Promotion?

Any form of communication a business or company uses to inform, persuade, or remind people about products and to improve its image.

What Is Promotion ?

33

The 4Ps of Rural Marketing

PROMOTION: Television Radio Haats, Melas, Fairs. Print media Cinema Hoarding/ Wall Painting Rural van

Promotion
The Health for the entire family

Company has done a strong promotion for its brand product lifebuoy. It use to launch so many health programme in so many countries to make people aware of health. Basically company used so many health care programme as their promotion. For example, a 1930's campaign in the US was titled 'Clean hands help guard health', encouraging the use of Lifebuoy soap to kill the germs on hands that can cause health issues.

Cont.
It also does promotion through TV and print campaigns, the agency team focused attention on the family health themes, conducted consumer education exercise using "Germ tests" through multimedia. By these activity it has established the brand's credentials as an authority in a credible manner.

Cont..
For promotion in rural markets, it created the Lifebuoy Swasthya Chetna project wherein 450 teams of health officers tapped 8000 villages in 11 states of India. The brand registered a 30 per cent increase in volumes after launching this project.

Cont.
In India company has done its promotion in MAHAKUMBH mela at ALLAHABAD . The company stalls 14 places in the ground & taught people the value of health & hygiene by demonstrating lifebuoy. People in Mela were asked to put their hands below some special camera where they could see the germs on their hands and were asked to wash their hands with lifebuoy and then see the difference. Company also use to show movies ,distribute cassettes & advertise about lifebuoy in rural area.

Cinema van operations:

These are typically funded by the Redistribution Stockists. Cinema Van Operations have films and audio cassettes with song and dance sequences from popular films, also comprising advertisements of HUL products.

Operation Bharat HULs Rural Distribution Effort

HUL implemented a major direct consumer programme called Project Bharat, which covered 2.2 crore homes. Each van, equipped with a TV arid VCR, had six promoters. The project helped eliminate barriers to trial, and strengthened salience of both particular categories and brands.