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    Rural markets present both opportunities and challenges for companies. Product and process innovations are needed to address rural needs. Some key innovations discussed are: 1) Developing affordable products tailored for rural consumers like low-cost toothpaste samples. 2) Process innovations like ITC's e-Choupal model which improved supply chain efficiency. 3) Distribution strategies include direct company van sales, outsourcing sales to local representatives, and rural retail models like ITC's choupal sagars. 4) Other innovations focus on finance options, effective rural communication, and technology enabled services through rural kiosks. Examples of successful rural innovations from various companies are provided.

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    Rural markets present both opportunities and challenges for companies. Product and process innovations are needed to address rural needs. Some key innovations discussed are: 1) Developing affordable products tailored for rural consumers like low-cost toothpaste samples. 2) Process innovations like ITC's e-Choupal model which improved supply chain efficiency. 3) Distribution strategies include direct company van sales, outsourcing sales to local representatives, and rural retail models like ITC's choupal sagars. 4) Other innovations focus on finance options, effective rural communication, and technology enabled services through rural kiosks. Examples of successful rural innovations from various companies are provided.

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    9 views13 pages

    Innovation

    Uploaded by

    ank1234
    Rural markets present both opportunities and challenges for companies. Product and process innovations are needed to address rural needs. Some key innovations discussed are: 1) Developing affordable products tailored for rural consumers like low-cost toothpaste samples. 2) Process innovations like ITC's e-Choupal model which improved supply chain efficiency. 3) Distribution strategies include direct company van sales, outsourcing sales to local representatives, and rural retail models like ITC's choupal sagars. 4) Other innovations focus on finance options, effective rural communication, and technology enabled services through rural kiosks. Examples of successful rural innovations from various companies are provided.

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    of 13

    Rural Market innovations

    Need for Innovation


    Rural market as a new growth avenue
    Market potential of more than Rs 1230bn
    However, poses challenges in terms of costs,
    connectivity, price, promotion etc.
    Not a mere extension of urban markets
    Types of Innovation
    Product Innovation- New
    product or service
    development, or some
    changes in attribute such as
    price or packaging
    Ex: Low priced sample
    packets of toothpastes,
    shampoos etc by HUL

    Process Innovation- Way in


    which an item is produced in
    the firm or across the supply
    chain. Ex: ITC’s e-Choupal
    Innovations in different domains
    Innovation in distribution strategy
    Outsourcing model of sales
    Availability coupled with finance
    Rural Retail
    Effective rural communication
    Technology enabled network
    Innovation in distribution startegy

    Direct selling through company vans

    BPCL’s rural marketing vehicle to fill cylinders

    HUL’s project Shakti using Self Help Groups


    Outsourcing model of sales
    Gram Vidyut Pratinidhis (GVP)-responsible for power
    bill collections- for selling FMCG products
    Established distribution channel
    Well known to rural people
    Availability coupled with finance
    Loans available to farmers at low EMI’s for installing
    solar panels
    Large investment required in purchasing solar panels
    Rural retail
    ITC’s e-Choupal initiative for bringing information,
    products and services to farmers
    Established a distribution network and then invited
    others such as Parachute and Phillips to leverage that
    network
    ITC’s choupal sagars
    Effective Rural Communication
    Customised to the needs & ethos of rural India
    Message should be simple to comprehend; in local
    language; melas to reach masses
    Increasing penetration of media
    Companies use rural setups to lure rural folk
    Ex: Aamir Khan Coke ad; Tata Indicom Ulta Plan ads
    Technology Enabled Network
    Internet Kiosk to deliver financial services
    Most prominent being Weather, health, livestock,
    personal accident etc
    ICICI bank offering product & services through kiosk
    model
    offer savings and loan services through these networks
    by training the kiosk operator as a credit agent or by
    placing an inexpensive ATM at the kiosks.
    ATMs installed are user friendly and have instructions in
    local languages
    Godrej’s Chotu Kool
    Eveready- LED Lantern
    THANK YOU

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