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Slide no 3-5 Sarvanand 6-9 Vinay H R 10-24 Shivanand 25-29 Vijay k p 30-35 Yashin 36-39 Ravi kundru

PRESENTED BY
Shivanand Indi Vijay k p Vinay H.R Saravanand Yashin Ravi Kundru Rupesh

RURAL MARKETING Brand drivers

Rural marketing is defined as managing all the activities

involved in assessing, stimulating and converting the


purchasing power of the rural consumers into effective demand for specific products and services and moving them to the people in rural areas to create satisfaction and a better standard of living and thus achieving organizational objectives.

*
Large population

A/c to 2001 census, rural population constitutes about 73% of the Indian population.
Occupation pattern
Agriculture and related activities are the major source of income for majority of the rural population. Large, diverse and scattered market

Though large, the rural market is geographically scattered. There may be less number of shops available to market products.
Inadequate infrastructure facilities Traditional outlook

Distance
Villages nearer to towns have elements of the urban life. Interior villages are more traditional.

Diverse socio-economic background

Due to dispersion of geographical areas and uneven land fertility, rural people have diverse socio-economic background.
Conservative lifestyle

Lifestyle bounded by tradition, culture, religion and community.


Media reach

The media reach in rural household is low.


Statistics indicates that the reach of Print media is 10%, followed by TV 31%, Radio 32% and Cinema 36%.
Medical facilities

Medical facilities are quite inadequate and the villagers have to travel long distances for getting medical treatment.

Socio-economic position

*Majority of rural people have low purchasing power and per


capita income.

*Low disposable income.


Low literacy level
It is estimated that rural India has a literacy level of 36% as compared to 62% in the urban areas.

Low standard of living


Low income, low purchasing power, overall social and economic backwardness lead to low standard of living. In general a rural consumer spends less on non-food items.

*To study marketing system in rural *To know which are fast moving products *Reasons for fast moving (4ps) *To know kinds of brand using related to consumer durable *Evaluate purchase decision *Buying pattern related to agri- inputs

Place: Deguru No. of houses: Around:90

Main Occupation Other occupations Total Population Male Population Female Population No of retail shops

: : : : : :

Agriculture and working in airport Pottery 500 300 200 3

Income level : avg 200000-250000/Family male:70,000-100,000 Female 30,000-50,000

*
S NO COMPANY

1
2 3 4 5 6 7 8

Hindustan Unilever Ltd.


ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries

9
10

Procter & Gamble Hygiene and Health Care


Marico Industries

In order to get clear picture about kinds of FMCG products available, which are fast moving and to arrive reasons.

1 How many retail shop are there


2 How much capital invested to start this shop and what's current investment 3 What kinds of products available 4 Do you only branded product or both branded and local products 5 Reasons to keep local product 6 What percent profit margin u get under both branded and local product 7 Do you feel competition ( low or high)

8 Do you have sale all time


9 Which are fast moving goods 10 What kind of opinion consumer express while buying products 11 What are promotional tools companies will use to promote their brands

* Household care * Personal care * Food * Beverages

TOOTHPASTE Available brands

Pepsodent
Colgate strong

* *

Only two brands available because most consumer prefer these two brand also shop keeper dont want keep more brand which needs more investment and shelf space. He told past experience some time some brand did not sell that got expired, which is loss to him

Reasons for fast moving

* * * *

Branded product Available in sachet and small packet Brand name and promotion through TV adds Price 5rs sachet and 10rs small packet

SOAPS Available brands Lifebuoy, Lux, Santoor, Medimix, Dove and Mysore sandal Fast moving brands

Life buoy, lux and Santoor


Reasons Consumer taste and habits Price factor (less) compare to Dove and Mysore sandal It has got brand image in rural Long life Promotion through TV adds As per the opinion of shop keeper lifebuoy and santoor have high Demand in rural market.

SHAMPOO
Available brands

clinic plus, Clinic all clear, Sun silk, Chik. Head and shoulder and Pantene. Fast moving

clinic plus, Chik and Head and shoulder


All shampoo available only in sachet Reasons Available in sachet Available in .5rs, 1rs, 1.5rs and 3rs all most all kinds brand shampoo available, people used buy only sachet due to coinage price

FAIRENESS CREAM

Available brands
Fair and lovely, Boroplus, Vivel, Fair ever and pounds cold cream Fast moving

Fair and lovely only has got highest sale (8rs)


Reasons

Consumer feels it is quality product Premium product in coinage price Brand positioning Available in sachet Brand exist long back Even though fair ever available in 7rs people buy fair and lovely
because of brand loyalty

Washing soap

Available brands
Rin, 707, Wheel, Shashi and Nima Local soap: 707, Shashi and Nima Fast moving Shashi, 707 and Wheel Reasons

* 707 selling 125gm for 5rs Where as


Rin selling 160gm for 10rs

* Shashi is selling 200gm for 10rs * High margins are given to retailers to push 707 and Shashi * Consumer also get extra gm for same price compare to Rin and wheel * Quality : value for money

DETERGENTS

* Available brands * Wheel, Surf excel available in sachet * Rin is available in 10rs and 20rs packet * Only wheel is available in 1kg and 1/2kg * wheel has best sale * consumer prefer to buy wheel in kg packet and surf in sachet * Reasons * Surf is costly product so its consumed only in sachet * Wheel detergent is consumed both in sachet and kg packet---consumer feels value
for money and quality

* Promotion : wheel by Salman khan in TV adds * Availability: All retail shop has wheel product

BISCUITS

Available brands
Parle-G, Sun feast, Good day, Parle 20-20, Britannia 50-50 and Krack jack Fast moving Parle-g , parle20-20 and Good day Local product- krunch munch (6rs) Reasons Parle-G is very old and most trusted biscuit brand consumers prefers it due to its low price good taste, and availability

TEA BRANDS Available brands 3 roses in 200gm, 500gm and 1rs sachet Local brand: Alankar tea powder Cothas coffee

In this tea category shopkeeper has kept all most all local brand namely chocolate tea powder, Alankar and Cothas coffee etc, generally consumers had prefer local tea. Reasons Except 3 roses no other brands available because of high price Availability of local tea powder Less price more quantity 35% margin to retailer

HAIR OIL BRANDS

Available brands

* Navratna oil, Parachute jasmine in sachet (1rs) * Parachute in 50ml and 100ml * Local product: Malahar gold and Mysore sandal

* Consumer prefer herbal oil, Ex Navratna, Himtaj * the rural consumers prefers herbal because of its Multipurpose use * Few consumer prefer local product

Beverages

Available brands

*Pepsi *Coca-Cola *Bindu jeera (local brand) *Both Pepsi and coca cola has presence in all retail shops *Strong network of distribution in rural *No strong local competitors *Continuous promotion in TV adds *Introduction of low price 5rs *Company itself provides freezer to retail shop free of cost

Brands Available under automobile sector ( two wheelers)


Hero Honda ( now its Hero ) TVS Bajaj Suzuki

Reasons to buy these Brand Hero Honda Mileage Resale Value Variety of Products Suitable for Middle class people ( affordability) Suitable for rural conditions ( roads ) Promotion ( Hero Honda used emotional advertising strategy to attract the customers ( Desh Ki Dhadkan) Low maintenance cost ( Servicing cost)

TVS ( Special reference to TVS Excel Heavy Duty) Low purchasing cost. Mileage Low maintenance cost. Easy to carry luggage and agricultural stuff. Easy to drive ( No Gear) People prefer to buy this product for agriculture purpose.

Bajaj ( under Bajaj brand people use to buy high end model specially PULSAR) Purchased by above middle class and family ( youths) High end CC ( Some youths crazy to ride higher CC bikes) Stylish Change in Trend ( one person said I bought this bike because he wanted to be unique as most people use Hero, TVS and other brand

Brands available in Tractors

1. 2.

Ferguson Mahindra

*Both have good brand loyalty and word of mouth and preferred by
peoples.

*Ferguson is priced high above Mahindra *Flexibility in operations and low maintenance are the major
determinant factors.

*Mahindra have good and easy customization in operations compared


to Ferguson.

Fuel efficiency is Equal in both brands. Suits the local utilization needs and capacity. Mahindra is financed through MAHINDRA FIANACE. Word of mouth Mahindra has more service centers

Available Brands TV Onida, LG, Philips , Videocon Fan- USHA ,LOCAL (Table Fans are preferred more) Iron box- Philips, Local Products Stabilizer V Guard Refrigerator- Godrej and Voltas Grinder- Ken star , Local brand

DTH- SUN DIRECT and VIDEOCON (only DTH no cable connection)


BRANDS : DEVANAHALLI (app 17 km from the village) People used purchase consumer durable from Devanahalli

Reasons : *Trust on Brand *Feel proud to use brands *For TV LG and ONIDA have good TRUST *For Refrigerator GODREJ is TRUSTED more *Services (Repairs ) are given by people coming from DEVANAHALLI *TRUST on Brands created mainly by Word of mouth and belief of
shopkeepers preference

*Buying on Installment is also common *Brand awareness is created by TV adds *Local products are marketed through direct marketing