4 P’S OF RURAL MARKETING
Priti Kopade 3023
Bhagyashree Powale 3039 Ankita Sawant 3046 Nikhat Shaikh 3048 Pranoti Shinde 3053
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.
3. For promotion & distribution marketers can make effective use of following infrastructure as well.
Hindustan Unilever Limited
India’s largest FMCG company. Categories of goods in Home & Personal care & Food & Beverages. It’s country’s 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 .
A set of marketing tools that the firm uses to pursue its marketing objectives in target market. 4 P’s – Product, Place, Price & Promotion.
Ankita Sawant M-3046
Nikhat Shaikh SYBMS M-3048
Affordability is, in determined by two factorsØ Ø
Income of consumer
Ø Price of the Product & Services
Promotion as a cost factor Credit-based transactions increase cost
HLL has made sustained efforts to tap rural market by investing in an innovative distribution channel (Shakti), customized promotion (operation bharat) communication strategy.
UL H Pricing
Profit maximization in the long run Minimum returns on sales turnover Deeper penetration of the market HUL Here objective is market expansion so L HU the company launches its product at a lower price HUL Keeping with competition
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 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
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.
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.
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.
üCompetitive prices: Neither high nor low
Bhagyashree S. Powale SYBMS M-3039
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 HUL’s 100 factories which are decentralized across 2 million square miles of territory.
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.
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 ?
The 4Ps of Rural Marketing
Television Radio Haats, Melas, Fairs. Print media Cinema Hoarding/ Wall Painting Rural van
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 use to 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.
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 — HUL’s 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.