Criticalassessment of innovative approaches used by companies in Indian rural markets. Indian rural market There are two way ofmarketing process in rural marketing. There is inflow as well as outflow ofproducts for production or consumption in rural and urban markets.In past few years ruralmarket had been grown steadily and now urban market is smaller than ruralmarket.
Around 72 per cent population of India are in villages. Around 80 crorepeople live in rural area of India. The marketer’s slogan is now ‘Go Rural’.
Domestic marketers as well international market, such as Hindustan lever, Colgate– Palmolive, godrej focused majorly on domestic markets or rural markets of thecountry. Thus, greatopportunities for marketers where rural markets delivering a promisingoutcomes, it can be a revolution for those who understand the market dynamicsof rural markets and have advantage over their best efforts Product Colgate – Palmolive(India) limited Toothpaste Tooth powder v Mosttrusted brand ‘Colgate’ had been voted and also ranked India’s 1stmost trusted and 4th time in the brand equity. “A.C Nielsen 2007survey. v Colgateis the Only Brand to be ranked at within top 3 in all the 6 surveys conductedso farv Colgatewas Only one to retain the premier position across categories for 4 years consecutively.v Ruralpurchasing power lies 50 % of total GDP of India.v All-weatherroads are connected to villages is only at 60%Source– (colgate.
co.in)Innovativemarketing strategyDISHA – Give better training facilities toindependent trades to explore deeper- 500 ex volunteers were selected by MARTfor company promotion – All facilities were provided tovolunteers like (storages space, t-shirts, cycle, etc)- Volunteer’s purchases stock from nearbyand sells at nearby by melas, Haats and villages outlets on the way.- There is sales of average 1000Rs Per day Nearly 46,000 haatswere covered by Disha, – the unorganized periodic markets ( market size – US 1billions) of the conventional cost by unemployed youth in India. Number of villagescovered increased up to 4,600 in Dec 20074A’s concept adapted byColgate to attract Rural India Acceptability: – They try to place the new (innovative)toothpaste of different brands under the shelter of Colgate Palmolive- Concentrating towards the upper ruraland consuming class by indulging the development of “Colgate Ayurvedatoothpowder” – Smaller packets were being introduced inthe form of sachets and being positioned for the villagers who buy in smallerquantity.
Eg1-They categorizedthe toothbrushes for different age groups.Eg 2 they came up witha special segments for kid under the age of 4-10 years Affordability:- Keeping in mind the affordability factorthey fix the price at the lower side as the people are price conscious. – They offer value and quantity to their consumerskeeping the price range as low as possible and accordance with theircompetitors.- To be the market leader they haveadopted the strategies of market penetration pricing.
Availability:- 950 direct accounts were being created.- 3.67 million Retail outlets were opening- Second most widely distributed productin the country. – The company is trying to crack the dealwith initiatives like E-chopal and Disha to further strengthen and enhance itsdistribution network. – In 1998, Colgate contacted 6,000,000 peoplein 21,000 villages.
Awareness:- We observe that the markets in ruralareas are made not particularly found anywhere in the domestic regions of thecountry.- A marketer with the forte in marketingskills will excel in such a market as promotions are the biggest obstacle forthem in the rural markets- Due to presence of many languages,cultures and lifestyles the marketers need to be well prepared and need toobserve the change around the country and need to develop the skills for bettercommunication. – We need to have international standardsbut need the desi tadka (traditional) ways to operate in such areas, ” thinkglobally and act locally” SWOTAnalysis Strengths· Geographicallybroadened industry. · Strongmark picture. · Strongpiece of the pie. · Appealingcommercials. · Hugedeals development. · Skilledworkforce.
· Stronglimited time strategies. Weaknesses · Saturatedshowcase. · Marketshare is constrained because of the nearness of other solid FMCG Brand · FakeBrands are provided under their image names Opportunity · Tapprovincial market and increment infiltration in same · Emergingmarkets may pull in business · Differentiationmethodology is required Threats · Increasein item costs. · Fiercerivalry. · Newparticipants in the market can be a danger to Colgate Geographic SegmentationStrategy: The Colgate Company hasactualized this technique by growing its business in more than 200 nations. Theorganization does not showcase a similar item in each nation. For example, inUnited States they are offering sixteen unique kinds of toothpastes while inUK; they are offering twenty two distinct sorts of assortments.
Statistic SegmentationStrategy: The Company caters themarket fragment in view of various socioeconomics, for example, age, sexualorientation, social class and so forth. For kids matured 8-10, they have itemslike transitional toothpastes. They have a different area for babies,youngsters, adolescents and grown-ups. PsychographicSegmentation Strategy: Here the organizationoffers the items thinking about the way of life and requirements of thecustomers. For individuals who are touchy about their teeth, they havepresented Sensitive master help toothpaste and brushes which are made todiminish tooth affectability issues. Product Nirma(detergent powder) The founder of theorganization Dr. Karsanbhai khodidas patel was born in 1945, in Ruppur town innorth Gujarat in a group of agriculturists.
He graduated inChemistry at 21 years old. At first, he filled in as a lab professional andlater served the state government. In 1969 at the of 24, he began fabricatingphosphate free detergent powder, Nirma (Named after his little girl Nirupama)in his patio. He committed afteravailable time for assembling Nirma and sold on his bike while heading off tohis working environment, which was 17km from his home. The high qualitydetergent parcels were sold at rs 3 for every kg, which was 33% of theslightest evaluated prevalent detergents. At the time localdetergent advertise was restricted just to premium fragment and was overwhelmedby MNCs. Karansbhai patel beganway to-entryway offering of Nirma and evaluated it at Rs 3 for each kg. The followingaccessible least expensive brand in the market around then Rs13 per kg.
Nirma changed theentire detergent powder fragment and in a limited capacity to focus time made atotally new market portion in the local detergent division showcase. It gavethe greater set up brands a keep running for their cash and soon possessed thebest piece of the overall industry. To add to this Nirmawas made of an imaginative detailing, which worldwide detergent mammoths werelater on constrained to imitate, it was sans phosphate and subsequentlycondition well-disposed and the way toward assembling was work escalated, whichoffered substantial scale business. NirmA Division Low-EndSegment, Rural Households (Basically all having a place with base of thepyramid) ‘Sabki Pasand Nirma’ Focusing on Nirma is spread over a giganticmarket having a great dispersion channel. Low Income and provincial families.
Situating Nirma situated itself as a moderate item between the generalpopulation who couldn’t manage the cost of detergents and for individuals whowere searching for something more sensible. TARGET AUDIENCE Demographics:• Age:26-49 • Gender: Females • Occupation: Primarily-Housewives and Workingwomen. Geographicsegment:• urban cities in India Psychographics: • Women seeking for a detergent with thequick and fast stains removal technologies yet affordable• priority for cost-effectiveness was high• Doesn’t have enough patience time-consumingprocedures like soaking clothes overnight and to remove stains on it SWOTAnalysisStrength- · Strongbrand value created throughout the years · Widedistribution channel · Marketleadership in detergent · Exceedinglyeffective beginning promoting effortIn 2004, Nirma’s detergent approached 8 lakhs tones -one of the largest volumes sold in the world- under a single brand”NIRMA” Weakness-· Limitedfare advertise when contrasted with global brands · Unfitto totally enter in premium portion due to picture Opportunity-· Exportto developing countries· Increasepiece of the overall industry in premium portion by propelling variations. Threats-· Guerillaattack from local independent producers· Growingincome of Indian can cause shift to premium segment washing powders.· Broadattack from HUL and P