SCHOOOL OF SOCIAL SCIENCES(DAVV)

SUBJECT-RURAL MARKETING AND SUPPLY

BACKGROUND
The client is a leading FMCG company with operations in
100 countries and sales in over 180. It has a product
portfolio of health/personal care and food that include a
number of ‘billion dollar brand’ household names.
CHALLENGE
The client wanted to improve the health and well-being of rural families across India.
The objective was to support key rural areas in accessing better nutrition, sanitation
and pure water supplies, as well as delivering improvements in personal hygiene to
fight diseases. The client wanted to make available affordable and convenient health
and wellness products to achieve this.
The client wanted to host a pilot program for one year across two states. The objective
was to: identify opportunities; research the market; engage with potential stakeholders
(Government of India and other public health bodies); recruit an operational team (30
people); and conduct the product scoping. The products were not conveniently
accessible previously in rural India. It was clear that the rural population was not aware
of the product’s benefits to fight disease or infection. The immediate necessity was to
develop awareness across the target market. A focused education programme was also
needed at the grass roots level to drive fast adoption. The objectives of the education
programme were first, to understand the risks associated with the market's current
choices and second, to share benefits of using the new products.
The client partnered with Sannam S4 to design a pilot program that was
both innovative and new to India. The aim was to:
• Reduce disease in rural areas.
• Reduce the health care burden on existing infrastructure.
• Increase product demand and sales across categories.
• Accelerate new product acceptance.
• Improve the product differentiation (existing product
• portfolio accounted for 20% of rural retail value).
• Conduct concept product tests and provide for direct
• and effective feedback on R&D innovations.
SOLUTION
Using their deep seated knowledge and experience of rural markets, Sannam S4
identified 500 villages to run the initial pilot, with each village having a population of
between 5000 – 6000. Sannam S4 supported the client to achieve their goal by:
• Location planning and product placement : We identified pilot locations across
multiple villages in the states of Maharashtra and Karnataka. The villages were
selected on the basis of :
• Location.
• Access to primary infrastructure.
• Access to secondary infrastructure.
• Social and demographic data.
• Economic Profile and Poverty.
Sannam S4 set up teams to operate in distinct phases—early validation, opportunity
assessment, strategy finalisation, program activation and product installation
Stakeholder engagement :
An exhaustive analysis was undertaken to identify all the stakeholders and their needs. Local convenience
stores were selected and were supported by local field promoters to drive product awareness, education,
create demand and influence for adoption. The model developed allowed for:
Constant brand reinforcement on a daily basis.
Using brand agnostic village locals as promoters, therefore allowing multi product awareness and not just
one brand.
• Multiple daily touch point ‘hits’ at the village.
• Touch points were used for product data to be sent out to the village and ensured constant data feedback.
• Multi-brand delivery options.
• Flexible launch and marketing activity with an accelerated entry into the villages.
• Seasonal product launches can be deployed instantly mirroring the local climatic conditions.
• A soft and trusted sales method/process.
• The ability to use the village on a daily basis to aid in the refinement of the product to then redeploy
updated versions based on live immediate market insights (e.g., packaging, pricing and taste from the
villages).
• Health and family data collected by villages to allow targeted product placement.
• In field R&D opportunities to test current ‘in-lab’ ideas ready for trial.
 Supply chain management
We then redefined the supply chain to deliver direct distribution of
products to local convenience stores and deployed tools to enable
periodic measurement and analysis of sales and stock data.
Product promotion
We also launched several belowthe- line (BTL) promotional strategies
across select groups of villages and measured their impact via product
intake and direct feedback from consumers.
Market research
In addition to operations in the two pre-selected states, a Strike Team
with the capability to establish a pilot footprint in any part of the country
was set up. This enabled primary research & feedback, concept product
tests, and consumer immersion programs.
RESULTS
The pilot program presented an innovative and efficient model that is scalable
across rural India and created a unique position for the client:
• Six-fold increase in product sales : Currently, there are several villages
covered by this model and they have been reporting a six-fold increase over
the initial target in one product category.
• Increased market share and retail value to 40% : Local convenience stores
have reported a two-fold increase in existing product sales, thereby
increasing the client's market share and retail value to 40%. On new
products, the stores reported 60% trial and 40% repeat sales which
provided evidence of a strong commercial interest.
Effective customer feedback
The client also benefited from qualitative feedback as a result of direct
consumer immersion from Sannam S4's R&D innovations and concepts.
Rural Marketing strategies of DABUR
Rural Marketing is promotion of company’s product or services to rural customers by using strategies best
suited for rural markets. Rural market is price sensitive but also appreciates quality product, thus techniques
designed by rural customers may differ from their urban counterpart.
Rural population comprises of 72% of total population of India. According to MART consultancy (Specialist in
Rural Marketing) 53% of sales of FMCG companies come from Rural India. Thus sweet tooth lies in serving
and targeting these 700 Million Rural customers. Also Urban markets are reaching their saturation while Rural
are growing by CAGR of 25% .Thus FMCG giants are leaving no stone unturned to tap these lucrative markets.
Dabur is the fourth largest Fast Moving Consumer Goods company in India.
Various conventional promotional tools used by Dabur in rural markets are TV Commercials, Radios,
Newspaper, POP Display, Wall Paintings, Melas, Haats, Video vans and many sales promotions.  
Different strategies adopted by Dabur are-
· Health camps in school to boost sales of toothpaste and chavanprash
· It also came up with beauty pigeon to promote its beauty products
· It emphasised on word of mouth publicity asking rural forks to use and experience products
themselves
· It came up with Regional Branding Strategy to attract consumers by launching products with
regional twist for eg, It launched Dabur Lal Dant Manjan as Sivappu Pal Podi in South India
while Dabur Red Tooth Powder in North India
· Sales force of Dabur uses mobile phones to report sales. To improve sales and rural
coverage, these phones are equipped with maps and demographic data, helping sales force
to estimate market potential
·  Data reported from these mobile device is analysed to predict customer buying pattern and
behaviour
·  IT services are used to provide information and gain feedback from customers
Project Double-Under this company used digitised maps & electronic data and came up with list of
specific villages to target. The aim was to manage cost of reaching and activating rural consumers. It
chose 353 districts initially to target its customers. This was done to utilise synergies across
divisions, maximise reach and maintain cost.
Not only customers were segmented, Company also segmented its products into two-one which
needs exclusive category focused sales and meant for urban customers and other focused on rural
and small markets requiring an integrated sales force.
ASTRA- Dabur uses ASTRA (Advanced Sales Training for Retail Ascendance) to increase sales in rural
India. It’s a customised program for sales force of Dabur. The program aims at enhancing quality of
field execution by providing audio video regional language and communication training to its sales
force. The duration of training will be 6 months. Dabur has divided its sales & distribution channel
into finer segments, like key grocers, wholesale, chemist, modern trade etc. Program is designed to
focus on specific needs expectations and working of each of these channels. The various issues
addressed will be trade promotion programmes, SKU focus, merchandising, channel conflicts etc.
Recently Dabur launched a unique branding and sampling initiative at Nauchandi Mela, which is one of
the key congregations in rural India. The brand took biggest sampling exercise and also had biggest
umbrella in mela. In the mela customers got opportunity to experience cooling effect of Dabur Pudin
Hara Lemon Fizz, which eventually lead to gaining substantial market share.
To boost its toilet cleaner brand Sanifresh, series of social initiatives were launched. Most significant of
them was “700 se 7 Kadam”.In this Dabur decided to utilise Rs1 from every sold pack of sanifresh for
building toilets in rural India. It was aimed at improving sanitation facilities especially for women in
rural areas. The campaign gathered much accolade and response from all over India.
Swalambh is one of the CSR Initiatives taken by Dabur, which led to Brand Awareness and
Brand Recognition. To enhance employability of youths in rural India, company came up with a
vocational training program. Through this program technical training and skills in three key
areas of Sales, Merchandising and Promotion were imparted to rural youths. It was conducted
in association with the Rural Development and Self-Employment Training Institute (RUDSETI),
this initiative will also seek to provide guaranteed employment to these youth, post
completing their training. Such initiatives not only fulfil CSR requirements, but also bring good
name and credibility for brand.
With launching thoughtful and goal oriented campaigns especially focusing on target groups,
Dabur will be surely able to spread its presence in rural India.