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Acknowledgement
This project is an attempt to study rural India with help of live case study of Lifebuoy ofHLL in India.For this we would like thank our Rural marketing faculty
S. Maninder Singh
who hasshown us
right approach and way
to make this project and without whose guidance thisproject would have been difficult to complete. We are also grateful to our institute forproviding this opportunity and providing the required material whenever needed
Rural Marketing- Lifebuoy1
 
Introduction- Upcoming of Rural Marketing in India
The rural India has a plethora of opportunities all waiting to be harnessed. Notsurprisingly, it has become the latest marketing buzzword for most of the FMCG majors.Many of the FMCG companies are busy formulating their rural marketing strategy totap the chance .To name few companies showing deep interest in rural India are HLL,Marico industries, Colgate – Palmolive and Britannia Industries.
 Why Rural India?
70 % of India’s population lives in 627000 villages in rural areas. 90 % of the ruralpopulation is concentrated in villages with a population of less than 2000, withagriculture being the main business. This simply shows the great potentiality rural Indiahas to bring the much-needed volumes and help the FMCG companies to bank upon thevolume –driven growth. This brings a boon in disguise for the FMCG Company who hasalready reached the plateau of their business curve in urban India.As per the National Council for Applied Economic Research (NCAER) study, there areas many 'middle income and above' households in the rural areas as there are in theurban areas. There are almost twice as many 'lower middle income' households in ruralareas as in the urban areas. At the highest income level there are 2.3 million urbanhouseholds as against 1.6 million households in rural areas.According to the NCAER projections, the number of middle and high-incomehouseholds in rural India is expected to grow from 80 million to 111 million by 2007. Inurban India, the same is expected to grow from 46 million to 59 million. Thus, theabsolute size of rural India is expected to be double that of urban India.
MARKETING STRATEGY:
In-depth knowledge of the village psyche, strong distribution channels and awarenessare the prerequisites for making a dent into the rural market.
Rural Marketing- Lifebuoy2
 
The psyche: the price sensitivity of a consumer in a village is something the ruralmarketers should be aware of. The strategy revolves around what attracts the ruralcustomers to a product. For e.g. packaging. The rural customers are generally the dailywage earners and thus they don’t have the monthly incomes like their urban counterparthas .So it makes sense, packaging in smaller units and lesser-priced packs to increasetheir affordability. Colour that attracts them is also important. Convenience is the otherkey word. Here Colgate is the apt example. First of all it made sachets as was requiredby their income streams. Secondly –since many households don’t have proper bathroomand only have a window similar things so it made sense to cap these sachets forconvenience of storage while use. Britannia with its Tiger brand of biscuits with its lowpriced and conveniently packaged products became some of the success story in ruralmarketing.
Distribution channel:
Study on buying behaviour of rural consumer indicates that the rural retailers influences35% of purchase occasions. Therefore sheer product availability can affect decision ofbrand choice, volumes and market share. Some of the FMCG giants like HLL took outproject streamline to significantly enhance the control on the rural supply chain througha network of rural sub-stockists, who are based in the villages only. Apart from this toacquire further edge in distribution HLL started Project Shakti in partnership with SelfHelp groups of rural women.
Awareness
:
Mass media is able to reach only to 57% of the rural population Creating awarenessthen, means utilizing targeted, unconventional media including ambient media .Forgenerating awareness, events like fairs and festivals, Haats etc. are used as occasions forbrand communication. Cinema vans, shop-fronts, walls and wells are other mediavehicles that have been utilized to increase brand and pack visibility. Ideas like puttingstickers on the hand pumps, walls of the wells putting on tin plates on al the treesurrounding the pond are some of the innovative media used by personal wash like Lux
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ambersi

thx.... it really helped.

reply02 / 09 / 2009
abhideshmukh

the project is good. it helped me a lot!

reply09 / 24 / 2008
farzin turk

it is a good project helped me alot

reply08 / 24 / 2008
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