By,

Namdev Waddewar.
Md. Imran Khan.
Ravi Kumar.
Sandeep Prasad
Pritesh Patil.
 Product Strategy

LG SAMPOORNA TV
NOKIA 1100
AMRUTANJAN
HUL BREEZE 2-IN-1
HUL PURE-IT [A WATER PURIFIER BRAND]
TATA NANO
   Case 1: Amrutanjan

The Vice President of Amrutanjan, Easwar Das, during his visit to the rural market
observed a customer walk into a small retail store and ask for one rupee of
Amrutanjan. He noted with surprise that the retailer took a scoop from the
Amrutanjan pain balm bottle and transferred it to a small leaf and handed it to
the customer. On enquiry with the customer, Das discovered the customer to be a
loyal of Amrutanjan as it helped her to sleep well after a day’s hard labour. She
earned daily wages and she could not afford to buy a bottle of Amrutanjan.The
company developed a small round tin pack inserted in a small transparent plastic
pouch to prevent leakage. The customer also derived value from the tin pack as it
was reused to store items like kum kum, etc.
 Case 2: Nokia 1100

 Nokia 1100 has so penetrated in to the rural market. Nokia had to stop its

production of 1100 because as its own product has become its toughest
competitor. Nokia’s low-end cell phones are used as radios, alarm - clocks and
flash lights by the rural customers.
Strategy: “digital convergence at the bottom of market”
 
 LG TV

 
 1998, LG launched its first low priced TV for rural consumers
-Sampoorna- Rs.3000
-Cineplus- RS 4900
 LG Electronics launched a customized TV sampoorna’. A more important

aspect of customization is to make TV set which can appeal to local needs, it

facilitated on screen display in vernacular language like Hindi, Tamil and
Bengali. selling 1,00,000 sets in the very first year.

Strategy: “thinking locally, succeeding globally”

Awareness Promotion

-Mobile Van
-Exhibition
-Road Show
 SBI BANK
 SBI branches have covered a whole gamut of agricultural
activities like crop production , horticulture , plantation
crops, farm mechanization, land development and
reclamation, digging of wells, tube wells and irrigation
projects, forestry, construction of cold storages and
godowns.
 SBI is setting up Agri Commercial Branches (ACBs).
 SBI also have an effective Marketing team in each region
with responsibilities for marketing and building
relationships with dealers of agri-products, organizing
promotional events and for loan sanction, processing and
monitoring.
DAIRY PLUS SCHEME- Owners of small dairy with less than 10 milch animals –and
owning a minimum of 0.25 acres for every 5 animals
Loan amount
Up to Rs.2 lacs per borrower
Up to Rs. 50,000 – 100 % finance is given.
Above Rs. 50,000 - 85% finance is given.

Sahayog Niwas: SBI has launched its Housing Loan product SAHAYOG NIWAS.  Under
the scheme formulated keeping the socio-economic conditions of villages in sight, housing
loans to the extent of Rs.50,000/- are given to the rural people without any mortgage of
house / land.  Response to this product is very encouraging.
SBI LaghuUdhyami (SLUCC)
(A Credit Card Scheme)
Nature of facility: 
Term loan or as an overdraft, not exceeding Rs.10.00 lakhs with good track record.
At 11% per annum interest rate.
 
 Pricing Strategy

CAVINKARE’S CHIK SHAMPOO

P&G PRICE CUT STRATEGY
BRITANNIA TIGER BISCUITS
NESTLÉ’S MAGGI
MARICO PARACHUTE
NIRMA
MC DONALD’S
 Case 1: Cavinkare’s Chik
shampoo

Cavinkare launched Chik in 50 paise sachets. Cavinkare targeted rural and

small town customers who used soaps to wash their hair. it became the market
leader in the rural markets with over 50% market share. It create a ‘sachet
revolution’.

 
Strategy: “low unit price packs.” (LUP)
Case 2: P&G price cut strategy

 P&G in 2004 started price cut strategy in their detergent brands. P&G’s

increase in the market share was more at the cost of the low-priced detergents.
There was a 200% increase in Tide after the price cut.

 
Strategy: bring in the required ‘Economies of Scale’ which would lead
to profitability.
Case 3: Britannia Tiger biscuits

 Britannia also tasted success because of small affordable

packaging of ‘Tiger’ biscuits it is specially design to the rural market, it’s
helping the poor become consumers.
 
Strategy: “low price strategy is begun to appeal target segment”
 
 
 
 
 Case 4: Nestlé’s Maggi

Nestle’s rural initiatives have largely been based on

Price-led initiatives. Brand such as Maggi noodles are
priced at Rs.5. It helped Nestle in making in roads in to
rural market.
 

Strategy: “small pack - lower price”

 
 
 
 
 Case 5: Marico Parachute

 Marico launched ‘parachute mini’ a bottle shaped small pack being sold at an

MRP of RS.1, 20 ml parachute a RS 5 that enables loose oil users ad to

parachute.

 
Strategy: “consumers to trail out the products with very little
risk”
Promotion Strategy

IDEA CELLULAR
COCA COLA
HUL LIFEBUOY
MRF BULLOCK CART TIRES
GODREJ
HUL VIM
HUL SURF
DABUR CHYAWANPRASH
 Case 1: Idea cellular

Idea’s aggressive promotion campaigns ‘what an idea sirjee’

ad creates a real rural feel came through Strong advertisement.

 

Strategy : spreading a social message “each one has aimed at the

changing someone’s life for better”
 Case 2: Coca-cola

 Coca-cola ad ‘thanda matlab coca-cola’ caught

attention of the rural consumers so much. Aamir khan playing foot sic with
village bells.

Strategy: “Using a renowned celebrity from in rural background”

 Case3: HUL Lifebuoy

 HUL launched a direct rural contact program called

‘Lifebuoy Swasthya Chetana’ campaign, made sales goes up by 20% in

17,000 villages.
 

Strategy: “lifebuoy has always been positioned on the platform of

health and hygiene”
 Case 4: MRF Bullock cart tyres

 MRF introduced nylon tyres for bullock carts with real life Pahalwans. MRF

use the communication through wall paintings in villages association with the
muscleman symbol, (i.e. Pahalwan= Muscleman) The result was that the MRF
bullock cart tyres became the brand leader in this segment .
 
 Strategy: “Rural consumers
understands symbols better
and looks for endorsement by
icons”
Distribution(Place) Strategy

COCA-COLA
HUL
 Case 1: Coca – Cola

Coca -Cola is a pioneer company in distribution network. Coca-Cola has

evolved a ‘hub and spoke’ distribution model for effectively reaching and
serving rural markets. Coca-Cola provides low-cost ice boxes to the small
distributors in rural areas because of the lack of the electricity.

In this marketing strategy a wake up call

for coke’s rural focus .
 

Strategy: “Coke is available where,

even water is not available”
 
 
 Case 2: HUL

  Hindustan unilever, the pioneer and a large player in India’s FMCG

market. HUL is the first company to step into the Indian rural
marketing. HUL launched ‘operation stream line’, distributed HUL’s
products in villages using unconventional transport like ‘bullock
carts’, ‘tractors’ and cycles. Today HUL’s products touch the lives of two
out of every three Indians.

  Strategy: “HUL product can reach a place, where you

can not reach”
HERO HONDA
 Hero Honda is chosen over other
product because of its the easy
availability of spares and
authorised mechanics. As a
result, in the resale market, it
commands a premium over
rivals. This makes Hero Honda a
preferred brand.
 Customers can travel over long
distances to buy a motorcycle but
not for service. A customer can
take his motorcycle for servicing
four or five times a year.
 Many of these touch points can
start as a service centre and over
time become a sale centre.
Thus, the company
decided to ramp up
rapidly its touch points
with customers -
showrooms, service
centres and so on. From
2,000 in 2006, the
number has risen to
3,500 in 2010. company
plan is to add at least
500 every year. Most of
these will be service
points.
BSNL
BSNL attempt to capture the rural Indian population, BSNL, the
largest Broadband service provider in India has thrown out
scheme called Rural USO 99 where users in Rural areas would
get 2Mbps high speed broadband connection for a mere Rs.99
per month. This of course isn’t unlimited. With this Rs.99 plan
users would get 400MB of Data per month.
 Conclusion

“Rural market has an untapped potential like rain

but it is different from the urban market so it
requires the different marketing strategies and
marketer has to meet the challenges to be successful
in rural market.”