48097419 marketing innovative strategies effects on fmcg companies in india rural regions...

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MARKETING INNOVATIVE

STRATEGIES EFFECTS ON FMCG

COMPANIES IN RURAL MARKETS

Presented By:-

KIRAN RAMDAS SINALKAR10/366

AKASH BALASAHEB SHELKE

10/365


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INTRODUCTION

The scope for the FMCG in Rural market is fast growing.

There are nearly 6,38,000 villages in INDIA. Of these only 0.5%have the population above 10,000. And 2% of the population

between 5,000 to 10,000. 50% of the villages have a populationbelow 200.

At least 75 per cent of the male working population engaged inagriculture and allied activities would qualify as rural.

70% of the total population live in rural India.

From this it becomes clear that the rural India is the best market everfor the FMCG in the country.


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SOMEOFTHEFASTMOVINGCONSUMERGOODS

IN INDIA


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FMCG COMPANYSFOCUSONPRODUCT

INNOVATION

Many FMCG companies a large chunk of their revenues up to about60 per cent comes from new product launches.

Companies like Dabur, ITC, Britannia Industries, Nestle and AmulHUL, ITC, Nestle, Procter & Gamble and GlaxoSmithKlineHealthcare account for almost 70 % of FMCG revenues in thecountry spend almost 10 % of their turnover on advertising and

brand promotion.

They market their brand through heavy expenditure on brand

promotion, advertisement and a proper marketing channel.

The promotion strategy includes tying up with Bollywood actorsand other celebrities, brand ambassadors to advertise and

promote their products.


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DABURSBRANDAMBASSADORMR

AMITABH BACHAN


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Marketing and advertising differs from region to

region, there can't be a single strategy for the whole

of India, as one marketing strategy will not work in

other region as there might be a total disconnect in

terms of the whole concept or an ad or the strategy.

And especially if one is placing a product targeted

at the rural consumers, here also it is a different ball

game altogether.


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NIRMA PRODUCTS - A BREAKTHROUGHIN

INDIANRURALMARKET


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STRATEGIESOF NIRMA

NIRMA is considered to be one of the leading brand which used

various innovative techniques to capture the rural market.

It introduced various small budget consumer goods to attract the

rural consumers. They targeted mainly on the third class consumersto marker their products.

They introduced toilet soaps, detergents and other consumer

attractive goods at a low cost.

They were considered one of the toughest competitor to Unilever

India ltd.


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UNILEVERINDIARURALMARKETING

INITIATIVES


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HLL derived around 50% of its sales from rural areas.

HLL's rural marketing initiatives began way back in 1988, when the

company had launched 'Wheel' for the rural and lower income urban

consumer.

As a competition to the NIRMA products they introduced Wheel to

demolish the market of NIRMA and to capture the rural market.


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HLLS CLINIC PLUS SHAMPOO

HLL introduced Clinic Plus.

They made the rural people to understand the product by

demonstrating its uses to the people in public.

They made the people understand the effect of using shampoo and

they demonstrated how it makes the hair smooth.


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RETAILERANDDISTRIBUTIONNETWORKAND

WITHINNOVATIVEMARKETINGSTRATEGIES

The two major Cola brands Coca-Cola and Pepsi apart from their

usual battle over market share have been trying hard to enter into

rural markets.

They have come up with many marketing strategies such as pricing,distribution strategies etc, like providing ice boxes, refrigerators,

credit facilities etc.

They provided small bottles apart from 1 liter bottles to attract the

low income groups.

They both used a good effective distribution channel to make the

product available in the rural consumer markets.


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TINSATAMUCHCHEAPERRATE


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BRAND-BUILDINGACTIVITIESANDCOST-

REDUCTIONSPURSALESINTHE FMCG SPACE

Almost 50 per cent of the FMCG companies cited earlier reported a

double digit growth in sales. Companies like P&G, ITC, Tata Tea,

Dabur, Marico, GlaxoSmithkline, Gillette and Godrej recorded good

top line growth.

This is because of the various techniques they used to develop their

products according to the rural consumers needs.

They adopted various new technologies to out run their competitors.

They concentrated more on the product diversification.


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NEWLYDIVERSIFIEDPRODUCTSUNDERFMCG

SECTOR


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COLGATE

Colgate-Polmolive India Ltd, which makes oral care and personal

care products kept expenses down by reducing its stock keeping

units or SKU.

They also diversified their products. Colgate herbal, Colgate Salt,

Colgate white, Colgate gel and much more.


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BRITANNIA INDUSTRIES LTD

They increased their net profit by 10.0% after entering in to the

rural markets.

They increased the price of their products by 5% to 7%.


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DABURINDIA LTDAND NESTLE INDIA LTD OTHERS

They focused to reduce their operational cost by reducing their cost

they spend on the purchase of the raw materials.

Godrej Consumer Products Ltd focused on reducing the cost by

organizing a good supply chain management process andselecting a better and a cheaper mode of transport.

Wipro Ltd provided the consumers with a reduction in the weight

of the products at the same price thus improving their margin of

profit.


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CONCLUSION

From all the above information's it is clear that the rural India can be

one of the most feasible market for the development of the FMCG in

INDIA.

FMCGs companies or marketers make consistent attempts toinnovate tools and strategies to overcome the challenges the face in

the business area.

Corporate India and government bodies alike have made several

efforts to bridge the gap between rural and urban India.

Thus if planned properly and with the use of new strategies and

technologies the rural India market can be captured and a great

margin of profit can be earned by the FMCG companies.


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48097419 marketing innovative strategies effects on fmcg companies in india rural regions...

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