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HUL Rural

HUL Rural

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Published by: snehakopade on May 13, 2012
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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. 5/13/12 1901 1961 1911 1971 1921 1981 1931 2000 1941 2009 1951 .

3. For promotion & distribution marketers can make effective use of following infrastructure as well. 5/13/12 .

5/13/12 Hindustan Unilever Limited .

 It stand 1st among the FMCG companies .  It’s country’s largest exporter.  Recognised as GOLDEN SUPER STAR TRADING HOUSE by government of India.  HUL rural trust is not new. .  Categories of goods in Home & Personal care & Food & Beverages.5/13/12 Hindustan Unilever Limited  India’s largest FMCG company.

Price & Promotion.  4 P’s – Product. .5/13/12 4 P’s A set of marketing tools that the firm uses to pursue its marketing objectives in target market. Place.

Product 5/13/12 .

& needs of the rural consumers. price. high quality & multiple uses.5/13/12  The rural consumer is very conscious about getting value for money.  Low  Lifestyle .

5/13/12 Product Strategies  Small unit & low priced packing. name. products.  New  Sturdy  Brand . product designs/ Product offering.

 Relaunched in the year 2000.  40% of HUL turnover.Lifebuoy  Launched lifebuoy lifebuoy lifebuoy in the year 1985.  70% sales are from rural markets.  Message of health. 5/13/12 lifebuoy lifebuoy lifebuoy lifebuoy .  Sold 20 lakhs daily & has 600 million users anually.

bar: brand awareness in rural masses.  Broke . bond sehatmand. excel.5/13/12 Products  Breeze  Vim  Surf 2 in 1: value added product.

PRICE 5/13/12 Click to edit Master subtitle style .

Pricing Strategy Affordability is. in determined by two factorsØ 5/13/12 Income of consumer Price of the Product & Services Ø .

UL Pricing Objectives H HUL HUL  Profit HU L maximization in the long run  Minimum returns on sales turnover  Deeper penetration of the market Here objective is market expansion so the H UL L company launches its product at a lower price HU  Keeping with competition HUL 5/13/12 HUL HUL HUL HUL HUL HUL .

 For e.5/13/12 Pricing Strategies  Low Price Points: HLL sells the maximum number of its products in sachet packs in rural areas.Pepsodent toothpaste is available for Rs.4  Avoid sophisticated packaging  Highlights Value AND not price .g.:.

5/13/12 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 .

5/13/12 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. .

seeds .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 . 5/13/12 . etc.

Rs 10 for 100g and Rs 5 for 55g.  . on the other hand.5/13/12 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.  Lifebuoy Nature. It is available at Rs 10 for 100g. lifestyles. 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. 5/13/12 Lifebuoy Total Lifebuoy nature Lifebuoy care .

HLL provided hampers at discounted prices of Rs. a tube each of pepsodent and Fair & Lovely ad Ponds Dream Flower Talc fro rural areas.10 and Rs. 5/13/12 .20 each in different sizes and combinations. 5 Rs.Operation Bharat: Bundle-Price Strategy HLL launched a combo pack comprising a Clinic shampoo bottle. attitudes and habits As consumers in rural areas were exposed to and became familiar with such value added value for money alternatives. The project was aimed at addressing issues of consumers awareness.

5/13/12 ü Competitive prices: Neither high nor low .

PLACE 5/13/12 Click to edit Master subtitle style .

.  Distribution  HUL took out project streamline to significantly enhance the control on the rural supply chain.5/13/12 PLACE  What do you mean by place? channel in rural market.

 Indirect . coverage method.5/13/12 DISTRIBUTION CHANNEL OF HUL  6000 sub-stockists. reaching about 250 million consumers.  Covers 50000 villages.

000 suppliers and 7. education and experience.    . sampling.5/13/12 Distribution strategy of HUL  Network of about 7. wholesale and general stores.000 redistribution stockists. HUL is using the point of purchase method for much higher level of direct contact. chemists. 2. through instore facilitators. The general trade comprises grocery stores.500 distributors serve HUL’s 100 factories which are decentralized across 2 million square miles of territory.

 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. It is market leader in every Asian market where it is sold.5/13/12 LIFEBUOY  Today Lifebuoy is mainly sold in Asia and parts of Africa.

5/13/12 LUX AND PEPSODENT  2000+ Suppliers and associates Redistribution stockists 1 million retail outlets. . have a market share of 17% in oral  4000  Covering  Pespsodent market.

Promotion 5/13/12 Click to edit Master subtitle style .

persuade. or remind people about products and to improve its image.5/13/12 What is Promotion? What Is Any form of communication a business or Promotion ? to company uses inform. 33 .

 Print media  Cinema  Hoarding/ Wall Painting  Rural van Melas.5/13/12 The 4Ps of Rural Marketing PROMOTION:  Television  Radio  Haats. Fairs. .

 It use to launch so many health programme in so many countries to make people aware of health.   For example.  Basically company used so many health care programme as their promotion.  . encouraging the use of Lifebuoy soap to kill the germs on hands that can cause health issues. a 1930's campaign in the US was titled 'Clean hands help guard health'.5/13/12 Promotion The Health for the entire family  Company has done a strong promotion for its brand product lifebuoy.

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.  It also does promotion through TV and print campaigns. the agency team focused attention on the family health themes. .5/13/12 Cont….

The brand registered a 30 per cent increase in volumes after launching this project. 5/13/12  . it created the Lifebuoy Swasthya Chetna project wherein 450 teams of health officers tapped 8000 villages in 11 states of India..Cont….  For promotion in rural markets.

5/13/12 Cont…. .  In India company has done its promotion in MAHAKUMBH mela at ALLAHABAD .  Company also use to show movies .  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.distribute cassettes & advertise about lifebuoy in rural area. The company stalls 14 places in the ground & taught people the value of health & hygiene by demonstrating lifebuoy.

 Cinema Van Operations have films and audio cassettes with song and dance sequences from popular films. .5/13/12 Cinema van operations:  These are typically funded by the Redistribution Stockists. also comprising advertisements of HUL products.

equipped with a TV arid VCR.Operation Bharat — HUL’s Rural Distribution Effort  HUL implemented a major direct consumer programme called Project Bharat. 5/13/12 .  The project helped eliminate barriers to trial. had six ‘promoters’. which covered 2. and strengthened salience of both particular categories and brands.2 crore homes.  Each van.

5/13/12 CONCLUSION .

5/13/12 .

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