You are on page 1of 58

UNIVERSITY OF MUMBAI (FIFTH SEMESTER) T.Y.B.M.S.

A PROJECT ON: MARKETING OF CONSUMER DURABLES IN RURAL AREAS. ACADEMIC YEAR 2010-2011

SUBMITED BY ROHIT HARILAL GADA

PROJECT GUIDE PROF. H.RAO

DATE OF SUBMISSION 3rd SEPTEMBER, 2011

NAGINDAS KHANDWALA COLLEGE OF MANAGEMENT STUDIES S.V.ROAD MALAD (WEST) MUMBAI 400 064

DECLARATION

I, ROHIT HARILAL GADA of NAGINDAS KHANDWALA COLLEGE OF MANAGEMENT OF CONSUMER STUDIES, DURABLES of IN T.Y.B.M.S. RURAL (Semester V) declare that I have completed this project on the MARKETING AREAS in the academic year 2011 2012. The information submitted is true and original to the best of my knowledge.

DATE OF SUBMISSION SIGNATURE OF STUDENT (ROHIT HARILAL GADA)

CERTIFICATE

This is to certify that ROHIT HARILAL GADA of NAGINDAS KHANDWALA COLLEGE, of T.Y.B.M.S. (Semester V) has completed the project on the MARKETING OF CONSUMER DURABLES IN RURAL AREAS, in the academic year 2011 2012. The information submitted is true and original to the best of my knowledge.

____________________ SIGNATURE OF PRINCIPAL PROJECT GUIDE (DR. MRS. KRUSHNA GANDHI) SETHIA)

________________________ SIGNATURE OF

(PROF. IDHI

_________________________ ___________________________________ COLLEGE SEAL BMS CO-ORDINATOR SIGNATURE OF

(PROF. NEHA MEHTA)

___________________________________ SIGNATURE OF EXTERNAL EXAMINER

ACKNOWLEDGEMENT
It has always been my sincere desire as a management student to get an opportunity to express my views, skills, attitude and talent in which I am proficient. A project is one such avenue through which a student who aspires to be a future manager does something creative. This project has given me the chance to get in touch with the practical aspects of management. I am extremely grateful to the University of Mumbai for having prescribed this project work to me as a part of the academic requirement in the Bachelor of Management (BMS) course. I wish to appreciate the management and staff of Nagindas Khandwala College Of Management Studies, BMS for providing the entire state of the art infrastructure and resources to enable the completion and enrichment of my project. I wish to extend a special thanks to my project Guide Prof.H.RAO without whose guidance, the project may not have taken shape.

INDEX

TOPIC:

1.

Introduction to marketing. done

2.

Aspects of marketing.

3.

Marketing strategies of Rural areas

4.

Types of consumer durables.

5.

Difference between marketing of Rural and Urban areas.

6.

Consumer durable items of Rural areas.

7.

Brands in consumer durables.

INTRODUCTION TO MARKETING
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors Several definitions have been proposed for the term marketing. Each tends to emphasize different issues. Memorizing a definition is unlikely to be useful; ultimately, it makes more sense to thinking of ways to benefit from creating

customer value in the most effective way, subject to ethical and other constraints that one may have. The 2006 and 2007 definitions offered by the American Marketing Association are relatively similar, with the 2007 appearing a bit more concise. Note that the definitions make several points: A main objective of marketing is to create customer value. Marketing usually involves an exchange between buyers and sellers or between other parties. Marketing has an impact on the firm, its suppliers, its customers, and others affected by the firms choices. Marketing frequently involves enduring relationships between buyers, sellers, and other parties.

Processes involved include creating, communicating, delivering, and exchanging offerings.

Classical marketing is often described in terms of the four Ps, which are:

Product what goods or services are offered to customers Promotion how the producer communicates the value of its products Price the value of the exchange between the customer and producer Placement how the product is delivered to the customer.

A complete analysis of these categories is often called the Marketing Mix. More detail on these categories can be found in the later entry on the Marketing Plan. Marketing has both inbound and outbound activities. Inbound activities largely centre on discovering the needs and wants of the potential customers. The collective group of all potential customers is called a market. Categorizing these needs into groups is called segmentation. Organizing markets into segments allows a producer to more logically decide how to best provide value to that group of potential customers. The analysis of market segment needs; analysis of existing sales and profitability; the descriptions, design and introduction of new

products; and the analysis of competitor offerings are also inbound activities that are important but not often seen by the public. Outbound activities include all aspects of informing the market that a product is available, delivering that product, and encouraging the purchase decision. These activities include advertising, promotion, supply chain, sales support, product training, and customer support. To the public, the most common interaction with marketing is where it touches the discipline of sales in the form of advertising. This interaction leads to a common misconception that marketing is only this aspect of promotion. Instead, it is useful in understanding that: Marketing is a data driven science. The good marketer will develop the data necessary to define the customers needs, develop a good product based on the available resources, deliver the product in an effective manner to the consumer at a price that reflects the customer value and the profit desired by the produce. Delivering customer value The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers who, in turn, are willing to pay enough (or contribute other forms of value) to make the venture worthwhile considering opportunity costs. Value can be created in a number of different ways. Some firms manufacture basic products (e.g., bricks) but provide relatively little value above that. Other firms make products whose tangible value is supplemented by services (e.g., a computer manufacturer provides a computer loaded with software and provides a warranty, technical support, and software updates). It is not necessary for a firm to physically handle a product to add value e.g., online airline reservation systems add value by (1) compiling information about available flight connections and fares, (2) allowing the

customer to buy a ticket, (3) forwarding billing information to the airline, and (4) forwarding reservation information to the customer. It should be noted that value must be examined from the point of view of the customer. Some customer segments value certain product attributes more than others. A very expensive product relative to others in the category may, in fact, represent great value to a particular customer segment because the benefits received are seen as even greater than the sacrifice made (usually in terms of money). Some segments have very unique and specific desires, and may value what to some individuals may seem a lower quality item very highly. Some forms of customer value. The marketing process involves ways that value can be created for the customer. Form utility involves the idea that the product is made available to the consumer in some form that is more useful than any commodities that are used to create it. A customer buys a chair, for example, rather than the wood and other components used to create the chair. Thus, the customer benefits from the specialization that allows the manufacturer to more efficiently create a chair than the customer could do himself or herself. Place utility refers to the idea that a product made available to the customer at a preferred location is worth more than one at the place of manufacture. It is much more convenient for the customer to be able to buy food items in a supermarket in his or her neighbourhood than it is to pick up these from the farmer. Time utility involves the idea of having the product made available when needed by the customer. The customer may buy a turkey a few days before Thanksgiving without having to plan to have it available. Intermediaries take care of the logistics to have the turkeys which are easily perishable and bulky to store in a freezer available when customers demand them. Possession utility involves the idea that the consumer can go to one store and obtain a large assortment of goods from different manufacturers during one shopping occasion. Supermarkets combine food and other household items from a number of different suppliers in one place.

The marketing vs. the selling concept.


Two approaches to marketing exist. The traditional selling concept emphasizes selling existing products. The philosophy here is that if a product is not selling, more aggressive measures must be taken to sell it e.g., cutting price, advertising more, or hiring more aggressive (and obnoxious) sales-people. When the railroads started to lose business due to the advent of more effective trucks that could deliver goods right to the customers door, the railroads cut prices instead of recognizing that the customers ultimately wanted transportation of goods, not necessarily railroad transportation. Smith Corona, a manufacturer of typewriters, was too slow to realize that consumers wanted the ability to process documents and not type writers per se. The marketing concept, in contrast, focuses on getting consumers what they seek, regardless of whether this entails coming up with entirely new products. The 4 Psproduct, place (distribution), promotion, and pricerepresent the variables that are within the control of the firm (at least in the medium to long run). In contrast, the firm is faced with uncertainty from the environment.

The Marketing Environment

The marketing environment involves factors that, for the most part, are beyond the control of the company. Thus, the company must adapt to these factors. It is important to observe how the environment changes so that a firm can adapt its strategies appropriately. Consider these environmental forces:

Competition: Competitors often creep in and threaten to take away markets from firms. For example, Japanese auto manufacturers became a serious threat to American car makers in the late 1970s and early 1980s. Similarly, the Lotus Corporation, maker of one of the first commercially successful spreadsheets, soon faced competition from other software firms. Note that while competition may be frustrating for the firm, it is good for consumers. (In fact, we will come back to this point when we consider the legal environment).Note that competition today is increasingly global in scope. It is important to recognize that competition can happen at different levels. At the brand level, two firms compete in providing a very similar product or service. Coca Cola and Pepsi, for example, compete for the cola drink market, and United and American Airlines compete for the passenger air transportation market. Firms also face less direct but frequently very serious competition at the product level. For example, cola drinks compete against bottled water. Products or services can serve as substitutes for each other even though they are very different in form. Teleconferencing facilities, for example, are very different from airline passenger transportation, but both can bring together people for a meeting. At the budget level, different products or services provide very different benefits, but buyers have to make choices as to what they will buy when they cannot afford or are unwilling to spend on both. For example, a family may decide between buying a new car or a high definition television set. The family may also have to choose between going on a foreign vacation or remodelling its kitchen. Firms, too, may have to make choices. The firm has the cash flow either to remodel its

offices or install a more energy efficient climate control system; or the firm can choose either to invest in new product development or in a promotional campaign to increase awareness of its brand among consumers.

Economics. Two economic forces strongly affect firms and their customers:

Economic Cycles. Some firms in particular are extremely vulnerable to changes in the economy. Consumers tend to put off buying a new car, going out to eat, or building new homes in bad times. In contrast, in good times, firms serving those needs may have difficulty keeping up with demand. One important point to realize is that different industries are affected to different degrees by changes in the economy. Although families can cut down on the quality of the food they buy going with lower priced brands, for example there are limits to the savings that can be made without greatly affecting the living standard of the family. On the other hand, it is often much easier to put off the purchase of a new car for a year or hold off on remodelling the family home. If need be, firms can keep the current computers even though they are getting a bit slow when sales are down. The economy goes through cycles. In the late 1990s, the U.S. economy was quite strong, and many luxury goods were sold. Currently, the economy fluctuates between increasing strength, stagnation, or slight decline. Many firms face consequences of economic downturns. Car makers, for example, have seen declining profit margins (and even losses) as they have had to cut prices and offer low interest rates on financing. Generally, in good economic times, there is a great deal of demand, but this introduces a fear of possible inflation. In the U.S., the Federal Reserve will then try to prevent the economy from

overheating. This is usually done by raising interest rates. This makes businesses less willing to invest, and as a result, people tend to make less money. During a recession, unemployment tends to rise, causing consumers to spend less. This may result in a bad circle, with more people losing their jobs due to lowered demands. Some businesses, however, may take this opportunity to invest in growth now that things can be bought more cheaply.

Inflation. Over time, most economies experience some level of inflation. Therefore, it is useful to explicitly state whether a reference to money over time involves the actual dollar (or other currency) amount exchanged at any point (e.g., one dollar spent in 1960 and one dollar in 2007) or an inflation adjusted figure that anchors a given amount of money to the value of that money at some point in time. Suppose, for example, that cumulative inflation between 1960 and 2007 has been 1,000%--that is, on the average, it costs ten times as much to buy the same thing in 2007 as it did 47 years earlier. If the cumulative inflation between 1960 and 1984 had been 500%, we could talk about one 1984 dollar being worth fifty 1960 cents or two 2007 dollars. It is important to note that inflation is uneven. Some goods and services such as health care and college tuition are currently increasing in cost much higher than the average rate of inflation.

Aspects of Marketing
Marketing has many aspects or sub-disciplines within the broad discipline of marketing they include:

Advertising. -Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behaviour with respect to a commercial offering, although political and ideological advertising is also common. Branding. -The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products Copywriting. -A copyright is a set of exclusive rights granted by a state to the creator of an original work or their assignee for a limited period of time in exchange for public disclosure of the work. This includes the right to copy, distribute and adapt the work. In most jurisdictions copyright arises upon fixation and does not need to be registered Customer relationship management (CRM). -Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service .The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Direct marketing. -Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer

websites, online display ads, fliers, catalogue distribution, promotional letters, and outdoor advertising. Internet Marketing -Internet marketing, also known as direct marketing, web marketing, online marketing, search marketing or e-marketing, is the marketing (generally promotion) of products or services over the Internet. Market research. -Marketing research is "the function that links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Strategic planning. -Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis, PEST analysis, STEER analysis.

Marketing strategies in Rural areas


A. Product strategies Small unit & low priced packagings New product design Sturdy products

Brand name B. Pricing strategies Low cost/cheap products

Avoid sophisticated packagings


Refill packs/reusable packaging Application of value engineering C. Distribution strategiesD. Promotion strategiesExplanation-

Considering the environment in which the rural market operates and other related problems, it is possible to evolve effective strategies for rural marketing. The strategies discussed here though not universally applicable depend upon product characteristics, the targeted segment of the rural market. Some of the typical characteristics which will help in rural market segmentation are land holding pattern, irrigation facilities, progressiveness of farmers, cropping pattern; mix of enterprise, education levels, proximity to cities/towns, sociological factors, occupation categories. The small and marginal farmers, agricultural labourers and artisans forms the largest segment in rural market (about 2/3rd) where as rich farmers constitute about one third of rural market. An appropriate segmentation of the highly heterogeneous rural market and identification of the needs and works of different segments will form the very

basis for rural market strategies. For rural market, it will be ideal to think of strategies from the marketing mix point of view, main strategies are related to product, price, place and promotion which are described as follows.

A. Product strategiesMeaningful product strategies for rural market and rural consumers are discussed here. 1. Small unit and low priced packing Larger pack sizes are out of reach for rural consumers because of their price and usage habits. This method has been tested by other products like shampoos, Vicks, small pickle sachets. .

In the strategy of keeping the low priced packed the objective is to keep the price low so that the entire rural community can try. This may not be possible in all types of products, but wherever this can be resorted to, the market is bound to expand. 2. New product designs A close observation of rural household items indicates the importance of redesigning or modifying the products. The manufacturing and marketing men can think in terms of new product designs specially meant for rural areas keeping their lifestyles in view. 3. Sturdy products Sturdiness of a product either in terms of weight or appearance is an important

fact for rural consumers. The product meant for rural areas should be sturdy enough to stand rough handling and storage. People in rural areas like bright flashy colours such as red, blue, green etc., and feel that products with such colours are sturdy but they are more concerned with the utility of the item also. 4. Brand name The rural consumers are more concerned with the utility of the products. The brand name awareness in the rural areas is fairly high. A brand name and/or logo is very essential for rural consumers for it can be easily remembered. B. Pricing strategiesPricing strategies are very much linked to product strategies. Some of these strategies are mentioned here. 1. Low cost/cheap products This is a common strategy being adopted widely by many manufacturing and marketing men. Price can be kept low by small unit packing. 2. Avoid sophisticated packing Simple package can be adopted which can bring down the cost as it is presently being done in the case of biscuits. Some innovation in packing technology is very necessary for rural markets. 3. Refill packs/reusable packaging Such measures have a significant impact on the rural market. By such technology also the price can be reduced. In addition the packaging material used should preferably lend itself for reuse in rural areas. An ideal example in

this direction can be the packing of fertilizers. Now companies have started packing fertilizers in LDPE or HDPE sacks, which are not only tamper proof but also reusable. 4. Application of value engineering This is a technique which can be tried to evolve cheaper products by substituting the costly raw material with the cheaper one, without sacrificing the quality or functional efficiency of the product, for example in food industry, 'soya protein is being used instead of milk protein. Milk protein is expensive while soya protein is cheaper but the nutrition value is same. This technique yields itself for application in many engineering or product designed areas so that the price can be kept at an affordable level. These areas have to be explored by manufacturing and marketing men in the context of rural markets. The pricing strategy for rural market will depend upon the scope for reducing the price of the product to suit the rural incomes and at the same time not compromising with the utility and sturdiness of the product.

C. Distribution strategiesMost manufacturers and marketing men do have a distribution arrangement for village with a population of at least 5000 people. While it is -essential to formulate specific strategies for distribution in rural areas, the characteristics of the product, its shelf life and other factors have to be kept in mind. The distribution strategies that are specifically designed for rural areas are: through co-operative societies, public distribution system, multi-purpose distribution centres, distribution up to feeder markets/mandi towns

shanties/hat/jathras/melas, agricultural input dealers etc.

Experience has shown that the cooperatives have played a useful role in improving the marketing services in the regulated markets. The fact, however, remains that these societies command only a small share of the total markets and do not present any challenge to the private trade at in most places. Cooperative institutions would do better if the state level marketing federations enter into multilevel activities to improve the turnover of their business. The nongovemmental organizations can anchor a key role in conscientizing the rural people to form into cooperatives highlighting the possible benefits without being exploited. D. Promotion strategiesMass media is a powerful medium of communication. It could be television, cinema, print media, and radio and so on. The other means of mass media available are hoardings/wall paintings, shanties/hats/melas, non-price competition, special campaigns etc. Besides these, other mass media like hand bills and booklets, posters, stickers, banners of the schemes etc.For disseminating the information, related to agricultural and other rural industries products, the government should circulate pamphlets either to panchayati raj office or to schools where it can be documented.

Different companies using marketing strategies.

Consumer durables companies like Samsung India expect the rural market to contribute 24-25% of their full year sales post Diwali. However, a majority of consumer durables companies in the metros are yet to tap the highly-lucrative

rural market after enjoying superb sales during this festive season. Most players like LG, Haier and Akai, believe that the rural markets have huge potential and they only see it growing from here onwards. Shanta Roy Sanjeev, Head-Marketing, Haier Appliances India, reckons that they are working out strategies to tap the rural market but currently have no exposure to it. "The rural market remains untapped and we are working towards strategies which will cater to the specifications in this space," said Shanta. For LG, which occupies a majority of consumer durables market, has 5% rural penetration. However, it is going to see it increasing. "Rural market contributes to 15-20% of our total revenue. Currently, LG has 5% penetration in rural market and 34% penetration in urban areas and we plan to further increase its reach to 15% in rural and 40% in urban markets by 2015," said Moon B. Shin, Managing Director, LG India. According to Crisil, a credit rating agency, the consumer durables industry is Rs 25,000 crore in size and growing at 17-18% per annum. However, the rural sector's contribution to the industry could not be ascertained. Akai India, relatively a new entrant, has a very negligible presence in the rural markets. However, it is also very confident about potential of the rural market. Pranay Dhabhai, Managing Director, Akai India, says, "Indian rural space still emphasises on buying new items during festivals which implies that the market has a lot of potential." He also adds that the over-all rural penetration has been pretty high for the entire consumer durables sector. "It normally changes from product to product. For example, CRT TVs have contributed about 80% of the total sales. And LEDs and LCDs contribute only 20%. Going forward, the rural market will grow for all products considering the market remains untapped." For an early entrant in the market like Samsung, which has been able to get more time to study the rural sector, has found the rural space contributing as much as 25% to their overall sales for the company. Ravinder Zutshi, Deputy Managing Director, Samsung India observes that the rural market seems positive on the

growth front and "rural sales should contribute 24-25% of our full year sales in Consumer Electronics." Shantanu Das Gupta, Vice President, Corporate Affairs and Strategy Asia South says that the rural market is hit by food inflation which has affected sales, "If we look at India as divided by income, and not urban and rural, then there are two distinct trends that we are witnessing over the last two or three months. Households with a limited budget have been impacted by food inflation and we are seeing a softening of growth in segments purchased by them, such as low capacity single door refrigerators and semi-automatic machines.

DIFFERENCE BETWEEN MARKETING IN RURAL AREAS AND URBAN ARES.


RURAL MARKETINGIncrease in purchasing power of rural masses in recent past has fuelled lot of interest in rural India. Hitherto considered a market only for low end products, today companies are seeing rural market as the new growth avenue. Comprising more than 70 per cent of the total consumers in India and annual market potential in excess of Rs 1230 bn, rural India is being charmed by novel ways and means. According to a survey conducted by Mckinsey in 2008, rural India with a population of 630 million (approximately) would become bigger than total consumer market in countries such as South Korea or Canada in another 20 years and it will grow at least four times from its existing size. 70% of Indias population lives in 627000 villages in rural areas. As per the National Council for Applied Economic Research (NCAER) study, there area as many middle income and above households in the rural areas as there are in the urban areas. At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas. According to NCAER projections, the number of middle & high income households in rural

India is expected to grow 80 million to 111 million by 2007.However, myths abound. Indias rural markets are often misunderstood. A clear distinction needs to be made with regard to the reality versus the image of rural India. If such a distinction is not made, we will be unable to distinguish between the serpent and the rope. The rural market is not homogeneous. The individual sections of this market are not too big, although the overall size is large. There are Geographical, demographical, statistical and logistical differences. Positioning and realities regarding the potential of each of these market segments differ and lie at the very core of forming the strategy for the rural markets. Gone are the days when rural consumer went to nearby city to buy branded products & services. Several companies trying to reach out to rural consumers are exploring alternative cost effective channels. Direct selling through company delivery vans, syndicated distribution between non-competitive marketers, setting up of temporary stalls in rural melas/haats are few successful examples. Use of stockists and their staff for effecting direct sales to rural consumers has also been found to be successful by companies like Hindustan Unilever / ITC / Colgate / Godrej. Rural markets/mandis are emerging as the target centers for direct sales. BPCL introduced specially designed Rural Marketing Vehicle, which moved from villages to villages to fill cylinders on spot. Similarly LPG companies have introduced small sized cylinders ensuring that price remains in the affordable range for its rural consumers. When developing products in any category, marketers must identify the typical rural specific needs. Urban products cannot be dumped into rural markets without modifications. The rural audience better receives tailor-made products as the consumers feel empowered and tend to identify with the offering. For instance, shampoos or soaps with distinctive, strong rose or jasmine perfumes are very with the rural women in South India. The urban women do not identify as strongly with these perfumes.

Every marketer must realize that the rural consumer is not a miser. He is not simply looking for the cheapest product in every category. He understands and demands value for money in every purchase that he makes. Pricing therefore is a direct function of factors including cost-benefit advantage and opportunity cost. Pricing offered to consumers should be for value offerings that are affordable. Price sensitivity is extremely high and comparison with competitive prices is common. It must be remembered that the rural consumer does not have a budget problem. He has a cash flow problem. This is because the village folk receive funds only twice a year. At these times, he is capable of making high volume purchases. At all times, however, the unit price is critical and so is the pack size. Because of this, in the lean season when there is a cash flow crunch, marketers need to provide financial products, schemes or solutions that suit the needs of the rural population Different target segments require different marketing approach and rural market is no exception to it. Experience suggests that mere extension of urban marketing strategies in rural India will fail unless they are customized to the needs, ethos of rural India. In the rural context, one of the best way to capture the audience is through Event Management. Since rural areas have limited venues for entertainment, conducting an event in rural areas can bring a good response. Some of the interesting events that can be conducted are Road Shows, Melas, Street Theatre, Film Shows and so on. Several Agrochemical companies such as Rallis India Limited, Wockhardt and tractor companies like Escort, Mahindras have successfully employed melas, local communication to get higher sales. The classic conundrums of reach and coverage of the media are shattered. Several creative communication media have been used by various companies to tackle the problem of having to use visual communication and non-verbal communication to reach the rural audience. This is required because a large

proportion of the rural population cannot read or write. Getting together with small industries, dharmasalas, post offices or other rural outlets for advertising and marketing purposes can be quite useful. Word of mouth is a big advantage in rural India. Rural Marketing is an evolving concept, and as a part of any economy has untapped potential; marketers have realized the opportunity recently. Improvement in infrastructure and reach promise a bright future for those intending to go rural. Any macro-level strategy for these markets should focus on availability, accessibility and affordability. Constant scanning and sieving of ideas and plans is essential at all times. Focused attention needs to be paid to market research that goes on to reduce the uncertainly in dealing with these markets. More specifically, in relation to rural areas, demand is seen to a very highly price elastic. To break the price barrier is essential. Only this can keep the grey area local brands in check. There is no doubt that divides do exist between urban India and Rural Bharat. However, with a silent revolution that has already begun, a seamless integration of rural and urban markets is underway. Once this happens the gulf that divides the two markets will become bridges. For this, change needs to be engaged and managed. The overall marketing mix framework for rural markets must therefore focus around plugging the segments with the right product, using value for money pricing, selecting the most appropriate channel of distribution, building long term relationships with the customers and finally, using the power of emotional brands. URBAN MARKETING -Up until recently, large part of the marketing that was done in this country was done, targeting the urban population of the country. Now the marketing potential of the rural part of the country is rapidly growing. Let us get an understanding of the urban and rural break up of the country.26% of the

population lives in the cities or in urban India. The remaining 74% lives in the villages or in rural India. The population of the country is spread over the villages but is very concentrated in the cities. India has six of the largest cities in the world. These are - Calcutta, Bombay, Delhi, Madras, Bangalore and Hyderabad. Besides these cities, there are six other cities that are growing at a very rapid rate and have a huge concentration of the population. These are Ahmadabad, Kanpur, Pune, Nagpur, Lucknow and Jaipur. In addition to these cities, there are around 4000 towns that have concentrations of the population. In the cities, there are a lot of jobs available now-a-days due to call centres and BPO's. This has given many more people purchasing power. Items that were luxury items a few years a go are seen in every house in the cities. Besides the cities 74% of Indian population lives in the villages. As the standard of living in the villages also improves, many modern facilities are available in almost every house hold in the villages too. Now a days the TV is there in most of the houses in the villages too. This has exposed them to a lot of advertising lifestyles and products. The villages have become a huge market that will be of great consequence in the near future. In the future, companies with a strong product distribution system reaching all the villages will have a very strong advantage over the rest. The country is growing, and is a place where business will thrive in the near future. To understand this better consider the following favourable shifts that have taken place in the consumer patters of buying. Here we have provided a complete guide on how to market for Indians. You may be interested in marketing your business, a particular product or an event that you are about to organize. This guide is for you!

Though this guide, we have talked about all the basic aspects of marketing. This guide will give you a general procedure of what is involved in marketing, the complete process and how you have to go about pricing, advertising, packaging, delivering etc. your product or service. This guide is especially written for Indians. We have tried to provide information about the people that make up our country, how they think, what appeals to them etc. We have especially concentrated on the Indian middle class. This is the largest group of the Indian population. They have been the largest group of consumers for quite some time now. In the future, as the country keeps growing, our Indian middle class is going to be one of the largest markets in the world. Though this guide we have tried to provide a general understanding of the Indian middle class, what appeals to them, etc. They are more adventurous than their elders and they care less for tradition and religion. The often are after a "New Look" and they seek novelties. They are quick to adopt new fashions that emerge. They are generally more receptive to change. They believe more in spending money in the pursuit of pleasure than saving for the future. It is not easy to dupe them but it is quite easy to motivate them. Teenagers are becoming quite a distinct market segment. They not only have products and services that been designed to cater their needs but also they are an influence on the decisions taken by adults. Some estimates show that around Rs.500 crore a year is the amount of money given to children as pocket money. That covers a general understanding of the Indian market on the whole and the middle class of the market (which is the biggest consumer base for industries) in specific. Now let us go into a detailed understanding of how the process of marketing is done.

One may tend to think that the point of all advertising is to make the consumer buy the product that the advertiser is selling. However, there may be many other reasons why advertising is done. Some of the reasons are: To motivate the consumer to behave in a particular wayfor example: to motivate the consumer to take up trial purchases from a store. To change the attitude of the peoplefor example: some advertisements might be designed to make the youth think that drinking aerated drinks is cool To create awareness about new products and ideasfor example: To create awareness about certain products that are new to the market like a new easy cleaner etc. Image creation and positioning for example: We have discussed positioning in the previous pages. Some advertisements are designed with the aim of positioning themselves in the mind of the consumers. Let the above examples give you an idea of the kind of advertising objectives you can have. You must choose your advertising objectives on basis of your business and your situation in the market and in the minds of the consumers. Before you decide your budget, make your advertisements or choose your media etc. the first thing you need to do is decide what your advertising objectives are.

Several global players are well established in the Consumer Durables sector in India, with competition from strong Indian players

Some of the key players in the sector in India include:


Nokia India LG Electronics India Ltd. Philips India Titan Industries Samsung India Electronics Whirlpool Appliances Siemens Sony India Videocon Industries Blue star

Some of the consumer durable products

Consumer Durable Products

Nokia.

Product

Mobile phones. (Nokia 1100.)

Marketing strategy-

By most accounts, India is among the world's fastest-growing markets for mobile phones. The country has some 170 million subscribers and adds 6 million to 7 million more each month. (China, in contrast, adds 5 million subscribers, and the U.S. 2 million subscribers a month.) Recognizing this potential, several global telecom giants jumped into the fray when the Indian government first opened up the country's telecom market to private enterprise in 1994. Among them, one company -- Finland-based Nokia -- forged ahead of rivals and today commands a 58% market share for mobile phones (also called "handsets"). In specific segments, such as GSM telephony, Nokia's market share in India is as high as 70%. (GSM, which stands for Global System for Mobile, is the world's most popular standard for mobile communications.) How did Nokia take the lead in the Indian mobile phone market, ahead of companies such as Ericsson, Motorola, LG and Samsung? According to company executives and industry experts, Nokia's strategy combined focusing on the mobile phone market, establishing crucial distribution partnerships, making early investments in manufacturing and brand-building, and developing innovative product features -- such as mobile phones that could double as flashlights. Ravi Bapna, professor of information systems at the Indian School of Business in Hyderabad, says, "As far as Nokia's India strategy is concerned, the numbers speak for themselves. The company is a key cog in India's wireless value chain, and it has used India as its emerging market lab."

The Power of Focus

D. Shivakumar, Nokia India's vice president and country manager, believes that focus played a key role in the company's growth in India. "If you look at the [mobile phone] landscape in 1995, anybody could have succeeded if they had done the same things as Nokia did," he says. "But all the other companies had something else to focus on, some other business. Nokia was completely focused on mobile phones; others had consumer electronics, home appliances, etc." Nokia's focus was not just on handsets, of course. The mobile infrastructure business -- then part of Nokia India -- was equally important. But, as of April 1, 2007, Nokia's joint venture with Siemens for mobile infrastructure has become an independent entity. Thus, Nokia India has become even more sharply focused. Being ahead of the curve was another component of Nokia's strategy. "We invested before everybody else -- in the brand, in people, in distribution," says Shivakumar. Adds Pankaj Mahendroo, president of the Indian Cellular Association: "Nokia invested in each vertical of the handset ecosystem -manufacturing, distribution and design R&D." Nokia has invested more than $1 billion in India so far, and company headquarters at Helsinki has repeatedly said that more funds will be made available if required. The Indian company had revenues of more than $3.5 billion in 2006, which means there is also money to be reinvested. (The company does not disclose its profit numbers.)
The Distribution Edge

Investment in people is difficult to judge; every company claims to have the best talent in the business. But when it comes to distribution, Nokia's lead is clear. Today, India has some 95,000 outlets that sell mobile phones. "In 50,000 of them -- and that's a conservative estimate -- only one brand is available, Nokia," says Shivakumar.

Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts. "Both companies realized that there was a tremendous growth opportunity and it was best that we utilized the resources of both organizations in an optimum manner," says Nokia India director of sales Sunil Dutt. "We decided that we would address some markets jointly, and that we would individually address some of the other markets." While Dutt does not spell out how the two partners will divide the markets, some clues exist in the way demand is shaping up. In the cities where the market is maturing, buyers are looking at more sophisticated mobile phones, such as Nokia's E-series phones (which serve business users) and the N-series (which have multimedia features). In rural India which constitutes 70% of the population affordability is an issue. So there is a different range for this constituency. The price points sometimes dictate the type of outlet. "As the [telecom] operator footprint expands into different markets, all kinds of retail outlets get into selling mobile phones and airtime connections," says Dutt. "People who have been selling consumer electronics, STD booth owners and even cloth merchants get into this business." A stationery store stocks mobiles in a corner; a momand-pop grocery store moves beyond rice and lentils. "Then there are people with existing businesses who decide to set up a separate shop only for mobile phones," he continues. "And why do they feel the need to set up a different outlet? In this business, customer engagement requires a completely different approach. Even the retail outlets realize this and separating the two businesses." Dutt notes that in the mature urban markets, "such as the metros and Tier I towns where mobility has been around for a few years, customer expectations are more evolved, and are continuously evolving. Our task here is to provide our people with relevant competency and skills sets." Nokia has begun to set up

concept stores -- seven so far -- in Indian cities. "At our concept stores, we have tried to bring to life all the experiences that we offer at Nokia experiential zones across the world," he adds.
Investment in Manufacturing

The other big investment area that has set Nokia apart from other telecom firms is manufacturing facilities and R&D. Nokia has several R&D centres and labs in India. More importantly, it established a $150 million handset manufacturing facility in Chennai in 2005. The total production at this unit has crossed 25 million handsets. "Some 30% of our production is being exported to neighboring countries," says Sachin Saxena, Nokia India director of operations in charge of the factory. Other companies, such as Motorola, LG and Samsung, have also lined up similar investments or are in the process of setting up manufacturing units, but Nokia has had a clear head start. Also, the Chennai factory is devoted to handsets, whereas other companies are planning to make a whole range of consumer electronics products. "Domestic manufacturing has worked to Nokia's advantage," says Ravinder Zutshi, deputy managing director, Samsung India Electronics. "Samsung India is looking at making its Chennai facility a global hub for its consumer electronics products." Industry analysts note that Nokia's strategy is potentially risky. When the going is good as it is now the company can do well. But Samsung's approach is more flexible, these analysts note. If demand for mobile phones were to slump, Samsung could switch its manufacturing lines to other products. In contrast, Nokia India's focus on mobile phones mirrors the priorities of its parent company. Nokia traditionally was in a whole range of businesses from toilet paper to power. But in 1993, CEO Jorma Ollila decided to sell off everything else and concentrate on mobile telephony.
Building the Brand

Another crucial aspect of Nokia's investment strategy focused on building its brand. Here, the company ran into a problem. The Nokia range available in India extends from Rs 1,499 ($37) at the lower end to Rs 45,000 ($1,125) at the high end. Marketing theory says a brand cannot be all things to all people. This is the reason that Hindustan Unilever, with quality built around its brand, refused to match Nirma, which came out with a cheap detergent. This is also why Eveready, the battery manufacturer, refused to lower prices when faced with a Chinese challenger in the dry cell market. But Nokia has a problem promoting other brands under its corporate umbrella. "Unlike the FMCG (fast-moving consumer goods) market where the product lifecycle is at least 10 and sometimes 50-100 years models have a lifespan of 15-24 months here," says Devinder Kishore, Nokia India's director of marketing. With such a lifecycle, promoting various models would mean watching money go down the drain in a couple of years. Instead, Nokia is promoting platforms music, for instance. With this approach, one model can replace another while the branding remains the same, or is extended slightly with the E series and N series. "Nokia has done well to focus on the 'mother' brand rather than on 'another' brand," says Jagdeep Kapoor, chairman and managing director of Samsika Marketing Consultants. Kapoor, who has written several books on brand management, says that Nokia has understood the Indian market by straddling all segments: the high, the middle and the low end. "The company has created a ladder for consumers to climb from the low end to the middle end to the high end, while being fully assured that they will be with the mother brand Nokia." Kapoor views the Nokia brand in terms of his proprietary "REAPS" model, which takes into account five needs rational, emotional, inspirational, physical and spiritual of the Indian consumer. "Nokia as a brand has been able to address all the five needs to various degrees at various stages," he says. "The rational need of quality versus price has been met across price segments with options.

The emotional need of being able to keep in touch with near and dear ones during times of joy and sorrow is being adequately fulfilled. The aspirational need with the new models and features and the look-good approach has helped the brand become a sought after, must have brand. The physical need has been taken care of through size and comfort. And, finally, the spiritual need has been met through (local) languages and people whether they are 18 or 80 being able to greet one another via SMS [text messages] during religious festivals." ISB's Bapna offers a prescription for Nokia. "Going forward with the premise that the mobile infrastructure will serve as India's information infrastructure given the lack of substitute physical and digital infrastructure. I would encourage Nokia to take a more active role in nurturing content and applicationcreation communities that bring a range of services to all layers of the population," he says. "It's in [Nokia's] own interest to do so."

An Expanding Market

The Indian market for mobile phones, in addition to its base of 170 million subscribers, is also one of the most cost-effective in the world. Call rates in India are among the lowest anywhere making a mobile phone call costs two cents in India, compared with about four cents in China. The market also has tremendous growth potential. So far, most of the growth has been penetrationled, which means placing devices in consumers' hands. The bulk of the growth going forward will be replacement-led, where consumers come back for more. In India, consumers tend to change their phones faster than in most other places. And whenever they change their phone, 60% are willing to pay a higher price. Shivakumar offers examples of future services that might be delivered over cell phones. "The cell phone could be the future bank a full branch of the bank. You don't need 20 people, a security guard or a vault. This is a passbook plus bank

rolled into one. It can be your payment system." Another possible use is navigation, where cell phones could be used to provide maps of an area where the user is based.

SAMSUNG

Product

Television sets.

Marketing strategy It's been a long while since H B Lee really relaxed. Since last February, when he took over in New Delhi as President and CEO of Samsung, South West Asia, the 58-year-old Lee has been busy turning all Samsung strategies on their heads. The Korean consumer electronics giant is now reaching deeper and wider into the Indian market, tempting consumers with technologically advanced products specially tailored to their needs. Showrooms are being brought under a common umbrella brand and now, a new facility may well become a manufacturing hub for Samsung worldwide. Not that Lee views his "strategy revitalisation" effort as an attempt to change things. "What we adopted in 2007 was not really a change in strategy but an evolution of our strategy," he insists. Surely not? Over the past decade, Samsung has clung to its premium positioning, with products that emphasised design, aesthetics and cutting-edge technology and prices that were commensurately higher. Until now. For the first time, it is moving downwards, so much so that industry observers believe Samsung may go after the masses much like its arch rival LG Electronics did until a couple of years ago: already, Samsung flat televisions are among the cheapest in the market. Samsung India Deputy Managing Director, Ravinder Zutshi,

vehemently rejects the price warrior tag, though. "Samsung is not a price warrior but today we are as competitively priced as our rivals. The focus is on expansion and deeper market penetration," he says. So, which is it? Evolutionary or radical change in strategy? Decide for yourself. Volumes do matter In 2005, Samsung introduced over 100 new products that were sold on the lifestyle platform. These included flat panel, LCD and plasma TVs [ Get Quote ], top-end refrigerators, home theatre systems, digital cameras and camcorders, MP3 players, notebook computers and mobile phones. At the time, sceptics argued that growth targets based on premium products rather than on India's voluminous price sensitive mass market were tough to achieve. More than two years later, Samsung isn't complaining about the progress of its lifestyle portfolio even though it has turned turtle on that strategy. It is the market leader in LCD televisions and super-premium, side-by-side refrigerators and claims respectable market share figures in other product categories as well. In the IT segment, Samsung is the leading LCD monitor brand. And turnover in the past one year has grown 20 per cent to cross $1.3 billion. "India has been identified as one of the top strategic markets for Samsung," says Lee. Still, focusing on the premium customer will get you only so far - India is still a market powered by volume-growth. Which is why, points out Zutshi, the current strategy is to gain greater reach among the masses - not through pricing, he insists, but through product innovation. "We are providing superior technology and differentiated products even for the mass market.

We are aiming at market leadership not only in the premium category of products but also mass categories like flat televisions," says Zutshi. In other words, innovation is no longer confined to top-end products. Instead, Samsung is rolling out its technological improvements even in mass, volume-driven categories. For instance, last year, the company also introduced in-built voltage stabilisers in its direct-cool refrigerators - a feature earlier found only in frost-free models. Keeping in mind the thrifty middle-income consumer, many refrigerator models are being promoted on the power-saving platform complete with three- and four-star ratings from the Bureau of Energy Efficiency. Yet others are equipped with strengthened glass shelves and cool packs in the freezer compartment that ensure freezing even during prolonged power cuts. "Most Indian cities have poor power supply, so these products have done well," says Zutshi. Then, ahead of the festival season, Samsung launched two semi-automatic washing machines with anti-bacterial Silver Nano technology that, until now, had been available only in fully automatic washing machines. It also introduced the Easy View feature - a top-end feature developed for the Indian market, which allows multiple windows on the same screen - in conventional flat TVs. This isn't the first time Samsung has adapted products for the Indian market. In the past three years or so, Samsung has expanded its Indian R&D operations considerably, employing over 2,000 people across all divisions of the company. Many products sold locally have been customised for Indian conditions by the company's Hardware R&D Centre, making them more acceptable to Indian consumers.

"The idea behind the strategy is to carry product innovation to the mass categories and build support for the Samsung brand, not only at the premium end but also in the large-volume categories," says Lee. The reasons behind the frenetic activity are not hard to fathom. Clearly, as competition intensifies, there is pressure to build differentiated products to capture market share. Especially in a slow-growing market - Zutshi estimates consumer durables is growing at 6 to 7 per cent a year, while colour TVs are twice that. Meanwhile, the industry itself is changing. "Players want to move up the value chain and offer superior technology, at the same time ensuring that consumers consider them affordable," says a Mumbai-based marketing consultant. But if top-end brands become affordable, can they still claim the premium they charge for their brand names? "The premium for top-end brands will come not from their brand names, but from product innovation," the consultant declares. Mass reach Samsung officials say home appliances sales during the festive season saw a 30 per cent increase. This can be taken as vindication of the company's trickle-down innovation strategy. But that's a seasonal spike. The company needs to now work hard to ensure its expanded product portfolio is available across the country - and that target customers are made aware of the brand. The latter task is actually not that difficult. Samsung India has been around for a while now, and its close association with Indian cricket - team and tournament sponsorships and so on - has meant brand recall rates are pretty high. The core of Samsung's new strategy, therefore, has been to reach out to

a bigger base of consumers, both in the metros and non-metro markets through its products and marketing/communication strategies. To tap the non-metros and semi-urban markets, last year Samsung conducted over 100 road shows in class B and C towns. "The Digital Home Road shows were meant to showcase our full range of products to customers in towns like Meerut, Saharanpur or, say, a small town in Tamil Nadu," says Zutshi. The success of the road shows was measured in terms of the number of people who visited these stalls and any bookings made with the local dealer. And the focus on small towns doesn't mean the metros can be overlooked. There's a growing market for replacements as well as an increasing number of homes wanting multiple television sets. The growth of modern retail and the expansion of large-format electronics stores like Croma, Jumbo and EZones add to the opportunity. "Our aim is to achieve deeper penetration into the Indian market - be it the metros or smaller cities. Today, it is important to understand modern retail as well in order to accomplish our targets," says Zutshi. Meanwhile, company-owned outlets remain a key strategic tool - Samsung will add another 30 showrooms to its existing 100-odd this year. But, with a difference. Over the next few months, the existing Samsung Digitall Homes will all be rebranded Samsung Plaza, in keeping with the global practice. Until now, India was the only market where Samsung followed a dual showroom strategy - larger (2,500 sq ft and more) outlets were dubbed Samsung Digitall Home, while smaller showrooms were called Samsung Plaza. It is not just about a name change, though. Samsung India also wants uniformity in appearance and sales experience at each of these showrooms that means an emphasis on product demonstration, not just display. Same game, new rules

Samsung's biggest rival, of course, remains LG Electronics. The other Korean giant has maintained its volume lead in colour TVs, washing machines, frost-free refrigerators and air-conditioners. While Samsung built its premium brand image and customer base, LG was busy seeking a wide reach and extensive distribution network that would help build volumes. Now, though, marketing experts believe the chaebols are mirroring each other's strategies. LG Electronics Chief Marketing Officer, L K Gupta, denies copying Samsung but does admit there's been a shift in strategy. "We do not wish to push sales but create a pull or demand. Our marketing will focus on higher brand value - inspirational and premium. The focus will be on consumer benefit and not price discounts," he explains. The marketplace is very competitive and unlike in the FMCG sector, margins in the consumer electronics business are not very high. "Technologies change and there is price erosion in the market. There is pressure to generate more profits. We want a better price for a better brand," says Gupta. Will Samsung be able to beat LG at its own game, especially now, when LG is busy building brand equity? "Samsung has always been the No. 1 technology brand. We have the conviction and capability of following our own approach and this is giving us a strong and consistent growth in the market," says Lee confidently. Durables industry veteran Rajeev Karwal believes both biggies will create distinct niches for themselves. "Consumer electronics marketing is no longer complex - most products are available everywhere in the world. Only appliances require some regional tweaks. There is no threat to LG and Samsung in India. They are entrenched players and LG's distribution is not easy to match."

But will volumes follow, considering Samsung is making a big effort to reach out to the masses? Zutshi believes so. "We have the brand equity, market share will follow," he says. What, then, is Samsung's biggest challenge in 2008? "It's the customer - the challenge is to keep him happy and meet his aspirations," says Zutshi. Once that happens, Lee can finally take a break.

Market reach Digital technology leader, SAMSUNG India has consolidated its position at the No.1 Slot in the Colour Monitor market, as per the IDC Q3 Report on the Indian market released yesterday. As per the Report, SAMSUNG has improved its market share from 20.9% in the total monitor market in Q2, 2007 to 22.3% in Q3, 2007, thereby retaining its leadership in all three quarters of this Year. The total Monitor market refers to both CRT and LCD monitor market in India. The Company is also the market leader in both the LCD and CRT Monitor categories. In the CRT Monitor category, the Company is the market leader with a 28.3% market share, having improved its market share from 26.7% in Q2, 2007. It has also retained its market leadership in the LCD Monitor category in all three quarters of this Year and its Q3, 2007 market share stands at 16.8%. As per the IDC, Q3, 07 Report, in the Non-bundled segment, the Company's market share for LCD Monitors stands at 28.2%, while in the non bundled CRT Monitor category, the Company's market share stands at 43.7%. The Company is the market leader in both these segments.

States Mr. Sanjay Sharma, VP-Sales, SAMSUNG IT Business, "We have been able to retain our market leadership and grow our market share in the face of stiff competition owing to the strong consumer

response that we have received for our 'Myst' and 'Haydn' LCD Monitors and Magic Bright CRT Monitors". In the third quarter, the Company had also carried out aggressive advertising campaigns for its Colour Monitors and had organised SI Meets in B&C Class cities. States Mr. Sharma, "We expect our LCD Monitor category to contribute over 50% of our colour monitor sales this Year and expect to achieve a 100% jump in our LCD Monitor volumes this Year".

SAMSUNG India has an extensive range of 22 models in the 15" to 63" screen size segments in the LCD Monitor segment across its 'Myst', Mendel, Mobius and Haydn series of LCD Monitors. The SAMSUNG LCD Monitors are priced in the range between Rs. 8,000 to Rs 500,000. In the CDT Categories, SAMSUNG monitors are available in the 15" and 17" screen size segment, priced in the range between Rs. 3800/-

Price range Samsung Television Price List Samsung Television Price Samsung LA32C350 Price Samsung LA19C350 Price Samsung UA46C8000 Price Samsung UA55C8000 Price Samsung UA65C8000 Price Samsung UA22C4000 Price Samsung UA32C4000 Price Samsung UA26C4000 Price Samsung UA37C5000 Price Samsung UA40C5000 Price Samsung UA46C5000 Price Samsung LA26C450 Price Samsung LA46C550 Price Samsung LA40C550 Price Samsung LA37C550 Price Samsung LA32C550 Price Samsung LA46C530 Price Samsung LA40C530 Price Samsung LA37C530 Price Samsung LA32C530 Price Samsung LA22C450 Price Samsung LA32C450 Price Samsung LA46C650 Price Market Price Rs 34900 Rs 13900 Rs 190000 Rs 260000 Rs 275000 Rs 25000 Rs 49000 Rs 36000 Rs 75000 Rs 86000 Rs 115000 Rs 27900 Rs 93900 Rs 65900 Rs 58900 Rs 44900 Rs 91900 Rs 62900 Rs 54900 Rs 41900 Rs 17900 Rs 35900 Rs 109000

Samsung LA40C650 Price Samsung LA32C650 Price Samsung UA46C7000WR Price Samsung UA55C7000WR Price Samsung UA40C7000WR Price Samsung CS21S8 Price Samsung CS21B850 Price Samsung CS29Z40 Price

Rs 77900 Rs 50000 Rs 160000 Rs 215000 Rs 215000 Rs 10500 Rs 11200 Rs 15500

Onida
Product

DVDs/Mp3 players.

Market strategy -

According to a report in Economic Times, Onida has decided to send its iconic mascot- The Devil to Hell. According to the report, the brand feels that Devil is no longer attractive to the consumers and hence the decision to remove it. The report further says that the brand is working on a new mascot.

The report gave me a sense of Deja vu. This is not the first time that Mirc Electronics has scrapped the Devil.

In1998, Onida withdrew the mascot citing the same reasons that they have given now. The explanation given in 1998 was that Indian consumers no longer find Devil, who symbolizes Envy, relevant. So they scrapped the famous tagline Neighbours Envy, Owner's Pride together with the Devil. But ever since it changed the tagline and mascot, Onida never found a powerful positioning.

After six years of drifting around, Onida brought back the Devil with much fanfare in 2004. Media and brand enthusiasts welcomed the move and eagerly awaited the Devil in a changed modern avatar. But the comeback was damp squib. The brand suffered heavily due to ownership issues within the company. There was no brand promotion or new product launches worth talking about since 2004. If at all there were launches, promotions were not sufficient enough.Now in 2009, Onida is redoing its old strategy.Onida is facing a marketing problem and not a branding problem. Everything is fine with the brand. People recognize the brand, love its mascot. The issue is on a larger perspective. It needs to concentrate on its entire marketing mix not just the brand elements. Changing the devil and bringing in a new mascot is not going to do any good to Onida.

The Economic Times report suggest that Onida is changing its brand elements because of competition from Korean brands like LG and Samsung. These Korean majors have built its position in Indian market riding on Product strategy rather than on heavy duty brand promotions. Their products were good, reasonably priced and well promoted. In the case of LG and Samsung, nobody really cares about the tagline. For them , the product speaks for itself. Onida failed because its products failed. I was a diehard Onida fan . I loved my Onida KY Thunder Television. But after that there was nothing remarkable about Onida. No high technology products came from this brand .Onida became successful because the Devil was backed by products that really created envy in others. Now there is nothing to envy about Onida. Last year, I bought an Onida DVD player which boasts about playing scratched DVDs but the product failed miserably. Now in the consumer durable space, brands are coming out with new advanced products on a monthly basis. Technology keeps changing and most brands are moving with break-neck speed to catch up with consumer expectations. In the case of Television, flat is now old and brands are talking about plasma, LCD etc. What is Onida doing in this space ? Onida is now in one of the most difficult times. The brand needs to come out with a product that will change the game. Changing the mascot is secondary at this point of time.

Price range

Onida DVP-NS708HP/B DVD Player Price 5490/ Onida DVP-NS608P/S DVD Player Price 3690/ Onida DVP-NS508P/S DVD Player Price 3290/ Onida DVP-DVP-NS78H DVD Player Price 4990/ Onida DVP-NS67P DVD Player Price 3490/ Onida DVP-NS57P DVD Player Price 2990/-

Market reach The DVD player market is expected to reach the 10-million mark by year 2005, its rapid growth coming from the significant price erosion in the last year and the easy availability of DVD titles. However, the category still hasn't seen the kind of advertising frenzy as in televisions. Mirc Electronics' Onida, which launched its DVD player last April, hopes to establish its equity in the category early with a campaign that focuses on a specific benefit: Onida can play scratched DVDs. The 35-second ad, which was launched nationally a couple of weeks ago, shows a young guy watching a film on his Onida DVD. His dog, a black Labrador, comes to play and barks to draw his attention, but to no avail. When the guy is about to replace the disc, the phone rings. When he goes to answer it, the dog taps the DVD to the floor and scratches it determinedly. The guy returns, picks up the disc, pops it in the player, and settles back to watch the film, which plays clearly. The dog lies down in resignation. "In India, a lot of discs are rented, so there is a lot of use and abuse, and consumers go through the problem of discs not playing properly because of scratches," said Mr V.

Chandramouli, Vice President (Marketing & Sales), Mirc Electronics. "So this is a very relevant benefit."

The 35-second spot, which carries the tagline `May cause envy', will run till about mid-September, and has a media spend of about Rs 2.75 crore, he added. Onida currently has a share of about 8 per cent, which it hopes to grow to 15-20 per cent next year. The ad is for the DVD player as well as the Onida image as a whole, as DVD players are still regarded as a premium lifestyle product. Besides, because there isn't much advertising in the category besides ads for Philips which claims it can play almost `anything flat and round' Onida has a chance to establish the benefit and own it, Mr Chandramouli said.

Microtek Inverters

Products

Inverters.
Price range

Microtek Inverter 600VA Price Rs.3,800 Microtek Inverter 800VA Price Rs.5,150 Microtek Inverter 1KVA Price Rs.5,700 Microtek Inverter 1.5KVA Price Rs.6,500 Microtek Home Inverter 5.5KVA 96V Price Rs.34,700 Microtek Home Inverter 8KVA 180V Price Rs.50,200

Microtek Home Inverter 10KVA 180V Price Rs.67,100

Marketing strategy Microtek Technology is working towards developing new models of Inverters and UPS. Microtek Technology is gearing up to enhance its product portfolio by introducing new models of Inverters and UPS. The company is enjoying a commendable position in the market for its product range.Speaking to itVARnews, Director-Advertising, Microtek Technology, Sunil Jain said, The process of developing new products is ongoing. As of now our R&D department is working on developing new models of Inverters and UPS, which will be more advanced in technology and will give value for money to the users .As a new initiative of its marketing strategy, Microtek now wants to shift its focus from IT sector to Power industry. There is a great potential in the power sector that is why with our new models of Inverters and UPS we intend to concentrate more on power industry, said Jain. With the introduction of new models of Inverters and UPS, Microtek Technology believes that the progression in the technology will be in tandem with the demands of the people. When asked about the status of the IT market in the country, Jain replied,

We are seeing tremendous growth potential at present as well as in coming years. IT sector is growing as PC is becoming an essential item in every household and costs are decreasing day by day. As far as the operations of Microtek Technology in the country are concerned, we are growing in sync with the whole industry in India and till now we are enjoying a good position in the market and have never faced any problem that cannot be tackled, added.Presently, Microtek Technology has a strong channel network that includes more than 7000 distributors and dealers, all across India. The company has 25 Sales and Service Centres. Microtek inverters are extremely popular in India because of their great quality, high performance and excellent functionality. There is growing market for batteries and inverters in India because of the increased use of electrical and electronic equipments and not-so-regular power supply. There is need of inverters and batteries at each and every place, including homes, offices, factories, industries, vehicles and more. Foreseeing this great demand for quality inverters and batteries, Microtek has designed several types of products to suit the requirements of different classes of people. Microtek manufactures different type of inverters such as Online UPS, Line Interactive UPS, digital and Sine wave inverters. Microtek is known for bringing the latest technology in its comprehensive product line up. Microtek is working towards its vision to bring the best technology by regular up gradation and investment .

Microtek manufacturing facilities are ISO 9001-2000 certified. There are several manufacturing units and a great dealer network of Microtek. Finding a Microtek inverter to suit your requirement is not a difficult task. One of the popular inverter series by Microtek are UPS EB series, UPS - E series. UPS EB inverters are designed with latest technology to provide better performance and great reliability. They have features like Micro-Controller

based intelligent control design. These inverters are equipped with display indicators to show the status. These inverters are designed with stateof-the art technology. They are equipped with CCTV Technology with Auto trickle Mode. Other features include smart Overload Sense and Short Circuit Protection, Easily Serviceable, Battery state Monitoring and Multi stage Battery charger At the same time UPS E models are fitted with highly efficient transformers which help in quick charging of the battery, save energy and increase the backup. There is minimum energy loss when there is conversion from DC to AC. In addition, there is mains input voltage range selection. You can find a Microtek inverter for all your needs. Whether you want an inverter for your home use or a UPS with your computer, Microtek has all. Microtek inverters are widely used for industrial purposes. Microtek inverters are used in software industry as computers need an uninterrupted power supply for their efficient functioning. Microtek inverter prices depend upon the model and the type. Ordinary UPS which are designed for home use are priced low.

Market reach Microtek inverters are extremely popular in India because of their great quality, high performance and excellent functionality. There is growing market for batteries and inverters in India because of the increased use of electrical and electronic equipments and not-so-regular power supply. There is need of inverters and batteries at each and every place, including homes, offices, factories, industries, vehicles and more. Foreseeing this great demand for quality inverters and batteries, Microtek has designed several types of product

to suit the requirements of different classes of people.

Mahindra
Products Tractors.
Price range (top models)

2008 Mahindra 1815 HST 2005 Mahindra 2810 HST 2007 Mahindra 3525 2011 Mahindra 1816 HST 2010 Mahindra 1816 HST 2009 Mahindra 2015

Rs 4,14,146/Rs 3,83,339/Rs 3,95,533/Rs 3,25,500/Rs 3,50,550/Rs 4,65,333/-

Market strategy Tractor major, Mahindra & Mahindra (M&M), is eyeing a significant increase in its market share this fiscal on the back of an enhanced demand for its products, a senior company executive said. "Our current (tractor) maret share of both Mahindra & Mahindra (tractor division) and Swaraj stands at 42 per cent. We plan to increase it (share) by selling more products through new marketing strategies," Mahindra & Mahindra's Senior Vice-President (Marketing & AppliTrac), Sanjeev Goyle, told.He, however, declined to mention the marketshare the company was targeting to achieve this fiscal.

The company clocked a 31 per cent growth in FY 10 and 16 per cent in the first quarter of this year, Goyle said adding, "we expect to beat the industry estimates by achieving a higher growth." The domestic tractor industry reported a robust volume growth of around 28.3 percent during 2009-10 on the back of strong rural liquidity, increasing farm mechanisation due to enhanced alternative employment opportunities and a higher use of tractors for non-agricultural uses. "We are growing and will continue to grow in the domestic market. Our products have been farmer-friendly over the years. We will lead the domestic market in the coming days," Goyle said.

Market reach Mahindra & Mahindra, one of Indias largest vehicle manufacturers, announced that Mahindra Tractors has sold 100,000 tractors in 2009-10, setting a benchmark for sales in the Indian tractor industry. To commemorate this, the company held the first ever Mahindra Samriddhi convention in Mumbai where it announced grants worth US$225,000 to students and scientists from 10 agricultural universities. This initiative aims to nurture budding agricultural talent and provide education in innovative farming technologies. The one-lakh (100,000) milestone is a special one for us, said Anjanikumar Choudhari, the president for the farm equipment sector at Mahindra & Mahindra. The farm equipment sector has now expanded its business vision to move beyond tractors to the larger area of helping to improve productivity in Indian agriculture. I am, therefore, also delighted to preside over the very first Mahindra Samriddhi Convention which will see farmers, agricultural experts and channel partners come together on a common platform to share knowledge and best practices related to farming and mechanization in India. The record sales numbers reflect growing prosperity and development in Indias agriculture industry.

CONCLUSION
With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly in rural areas. Products like washing machines, air conditioners, inverters, color televisions (CTVs) are no longer considered luxury items. Rural areas have been changing their mind set towards urban areas. They are no longer counted as rural. The marketers have also changed their strategy in such a way that, they can convince the rural people. And big brands like Nokia, Samsung, Mahindra, and Onida have been making advances to fit the rural market according to the new market mind set. Consumer durables sector is characterized by the exchange offers, discounts, and intense competition. Large companies major target is the growing middle class of India. They offer superior technology to the Consumers, whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India. An important factor behind low penetration is poor government spending on infrastructure. For example, the government spending is very less on electrification programs in rural areas. This factor discourages the consumer durables companies to market their products in rural areas.

Bibliography
Google

Wikipedia Samsung.com Onida.com Mahindra.com Nokia.com Microtek.com Times of India articles


newsspace.com.au/regionalruralnews karmayog.org/ruraldevelopmentnews Book : Rural Marketing by U.C.Mathur.

The Rural Marketing Book by Pradeep Kashyap and Siddhartha Raut.


Rural Marketing Concepts And Practices by Dogra Balram.