2.

Identify three brands that have failed to create a unique positioning in rural markets in the last five
years. What could/should have been done to position these brands more successfully in the minds of
consumers from rural India?

Ans: Three brands that we selected and which failed to capture the rural market in India are-

1. Ashirvaad atta
2. Bisleri packaged water
3. Rajnigandha pan masala

A brief Intro about-

1. Ashirvaad atta- Introduced in 2002, owned by ITC.
India’s no. 1 branded packaged atta, with consumer spend of RS 42000 crore.
Captures 56% of packaged atta market in India.
Shaktibhog, patanjali atta, nature fresh, samrat, Pillsbury, chakki fresh are some competitors of
Ashirvaad atta.

Why it failed in Rural market-

 In rural India about 50% of population is engaged in farming sector, mainly they are small
farmers and consumes whatever they produce through farm activity. Those who are don’t have
land to farm, are inclined towards buying wheat as whole for wheat flour.
According to a report 60% of Indian population buys wheat directly, 25% buys loose wheat flour,
and only 15% go for buying packaged wheat flour.
 Ashirvaad atta gives very small margin to its distributors I.e. 7% only, it is almost half of what its
competitors offer to push the product in rural market.
 The prices of Ashirvaad atta is very high among the competing brands, it is very much high for a
market where other cheap options are easily available.
 Ashirvaad atta targets mainly the working class, students and upper middle income group
families through its advertisement.

2. Bisleri packaged water-

 Bisleri International is an Indian brand of bottled water formed in 1969 by Jayantilal
Chauhan and Felice Bisleri.
 Market is likely to reach 35.53 bn ltr by volume by 2023, and grow at cagr of 18.25% from
2018 to 2023.
 Bisleri captures 56% of RS 1100 crore Indian bottled water market.
 Kinley, Aquafina, bailey, oxyrich, Himalayan are competitors of bisleri in India.

Why it failed in Rural market-

 The rural population of India depends mainly on tap and hand pump water supply to meet the
need of drinking water.
 As compared to urban geography, rural India is less exposed to misuse of water, and hence
water availability is good.
 Less knowledge about drinking safe and hygienic water.
 Consider water as source to quench thirst, and not as in taking minerals.
  Too much off local players in the market offering bottled water at low rates.
 Mostly go for carbonated water rather than going for bottled water, as they have a mindset of
not paying such amount just for water.

3. Rajnigandha pan masala-

 Launched in 1983, rajnigandha pan masala is owned by DS group.
 The Indian pan masala market reached RS 42,180 crore in 2019.
 Rajnigandha acquires about 1/4th of the total market.
 Offers 2 type of product- tobacco based and plain.
 Pan bahar, pan parag, raj niwas, vimal, shikhar are major competitors of Rajnigandha.

Why it failed in Rural market-

 Rajnigandha offers too much of price for a packet of rajnigandha pan masala in a price sensitive
market.
 Too many competitors in the market, offering similar product at very low price.
 People in rural India like eating pan, instead of having pan masala.
 People in rural market have very less knowledge to differentiate between a tobacco product and
mouth freshener.

What could/should have been done to position these brands successfully in minds of rural consumers.
1. Ashirvaad atta-
 Increase in total production to reduce manufacturing cost, and offer this benefit to
distributor as more margin to push the product more into the rural market.
 Educate the consumers of rural market about benefits associated with packaged wheat
flour, and how healthy and hygienic it is for them. Tell the customers how buying loose
atta can affect their health as they are not pure, or the energy they need to put to get
the flour when they buy wheat as a whole.
 In rural area’s the decision making power of a family resides within the older male in the
house, also the women in rural area are mainly housewife they hardly get time to watch
television or use social media, so in the advertisement Ashirvaad need to target male
population also, to affect their decision making capacity.
 Sponsor some self-help groups in rural area where women take active part, allow free
sample if possible, as they are the biggest source of word of mouth in rural area.
 Currently Ashirvaad operates 6500+ e choupals to connect with farmers in rural area,
use this platform as brand awareness campaign.

2. Bisleri packaged water-

 Educate the rural population about having safe and hygienic water, health benefits
associated with drinking clean water. According to a report nearly 200,000 lakh people
in India die because of polluted water.
 Deliver the benefits being associated with drinking mineral added water.
  The rural market is full of local brands offering bottled water at low price, in order to
capture rural market, bisleri need to lower its price or can use Decoy strategy.
 Can offer more margin to distributors in order to push sales.
 Make the product available in school/universities canteen, fitness centers.
 Sponsor sports events, or the cultural fest being organized in rural India.
 Put water vending machines at public places offering glass of water at low rates.

3. Rajnigandha pan masala-

 Brand endorsement by some celebrities, recently we show add where james bond was
endorsing pan bahar, though it caught controversy, people took it positively as they felt
james bond too consumes pan masala.
 80 crore of Indian are now connected with internet, about 60% of total population lives
in rural India which rural India has internet connectivity of almost 50 crores, 60% of
them are youth which are vulnerable to social media, connect with some famous
Influencers to advertise on social media and target that population.
 As mentioned earlier rural population likes having pan, but one problem with pan is that
they vary in taste from place to place, Rajnigandha should advertise itself as
replacement of pan, with same taste in pan India and also easy to carry, with longer
shelf life.
 Offer larger margin to distributor to make availability at each pan shop, and incentives
to reseller to push sales.
 Price of Rajnigandha is too high as compared to the competitors, it can increase the
quantity at same price. Or can offer different variant at different rates.