RURAL MARKETING

PRODUCT CATEGORY

DEEPA RAGHURAMAN (43) | SANDEEP PATIL (47) | JYOTIKA KATYAL (44)

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 Market Analysis & Scope
•Cosmetics market divided into: Color Cosmetics and Toiletries
•Color cosmetics: cosmetics for the eyes, lips, nails and face
•Toiletries: skincare, hair care, fragrances, oral care, soaps,
grooming
•Market Leader: HUL (30% market share); followed by P&G
and L’Oreal
•Other players: Revlon, Colorbar, Avon, Amway, Oriflame,
Emami, Lotus, Shenaaz Hussain, Himalaya
•Fastest growing market in India; though highly fragmented

•Urban areas account for 70% of sales

•Sales in rural areas limited to basic need items like talcum powder, soap, cream;
•Small unit packs are the volume generators in rural markets
Euromonitor Report; 2008

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 Rural markets: Consumer Insights
• Being fair is a basic necessity for being beautiful.
• Usage of cosmetic is prevalent in age groups 15+ Yrs women.
• Cosmetics are equated with daily face fairness cream and talcum powder.
• Cosmetic Brands helps make skin better, glowing and fairer.
• Open to the idea of using other brands, thus poor brand loyalty as in the case of non
availability other brands are used.
• Extremely price sensitive market.
• Family Influence on decision making is high irrespective of the gender of the family
member.
• Fascinated by the culture in the city and thus yearn to follow the same.

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 Findings
• Recall high for creams and other toiletries as compared to color cosmetics.
• Fair& Lovely (HUL) wins hands down while talking about daily use cosmetics while Lakme (HUL) is
the only brand considered as a color cosmetic brand which is used only for special occasion.

• Lakme perceived as expensive thus only bought by slightly educated consumer who have access to
it in beauty parlors and stores in the bigger markets.
• Older user (21+ married) use a tube a month worth Rs.35 while teenagers who are college or school
goers buy sachet on a weekly basis depending on the requirement and usage. (Fair & Lovely users)
• Ponds (HUL) is the only brand people are aware off while talking about talcum powder brands
• Other brands that the women are aware of are Ponds cream, Fair & Lovely, Fairever, Boroplus,
Vicco, Lakme & Himani.

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 Findings
• Along with TV advertising, Peer influence, Word of Mouth & advocacy are major reasons behind
cosmetic purchase decision.
• Medical store vendors and shop keepers are more trustworthy as against salesmen from the
company.
• Usage is twice a day once in the morning post bath and other in the evening.
• Consumers are well aware of counterfeiting and stay away from such tampered products.
• Brand loyalty is low with brand switch frequent amongst the consumers
• No POPs, proper display, etc in retail outlets.
• Lacks of proper distribution network, vendors go to bigger market to buy themselves and then resale
it in the village.
• Very low margin available for the seller to cash on.
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 Marketing Strategies
• To increase the market for our cosmetics brands like Lakme, Ponds and Emami in a market dominated by
Fair & Lovely
• Product:
• Toiletries – for mass market and color cosmetics for a niche segment (slightly educated)
• Price:
• Low to moderate pricing.
• Packaging:
• Smaller SKU’s – easy and convenient to use
• Place:
• Stronger distribution network in Rural India - to ensure shopkeepers stock product
• Higher margins as opposed to Fair & Lovely

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 Marketing Strategies

• Promotion:
• Advertisements on Television
• In serial branding with product placement in DD serials
• Relationship building: Direct Contact Programs with villagers – sales team to visit from
time to time to increase awareness, induce trial and repurchase
• Find and target opinion leaders of the village to increase advocacy for our product
• POP’s – danglers, shop branding, bus shelters, buntings
• Target beauty parlors – to stock and advocate our product
• Presence of stalls during Bazaar – offering makeovers and sampling

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 Creative Strategy

• Positioning:
“Sampoorna Sundarta” : The promise of complete beauty

• Emotional appeal to grab attention

• Rational appeal to communicate product usage and its positives affects on beauty

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