Presentation on rural marketing of HUL

Presentation By Pampa Nandan

ABOUT RURAL

• Dictionary meaning: places far away from

cities or town• From sociology point of view: a group of people

who are traditionalist in outlook, rooted in land, and resist change.

• But as a Marketer we have to take into consideration all parameters relevant to their product categories to define rural, rather than focusing on the standard, administratively defined parameters.

ABOUT RURAL MARKETING

• The process of developing ,pricing, promoting, distributing, rural-specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demands and also achieves organizational objectives

• Hul’s strategy is to upgrade the consumers taste and preferences, and making the non users to the use one, by developing product or adopting any diversification strategy among the product.

GIVEN INFORMATIONSUSERS:- 800 MILLIONS OF INDIAN CONSUMERS, USE

ATLEAST 1 PRODUT OF HULRIN FAIR AND LOVELY TAAJA TEA

PRODUCT Has 12 blends Variety

PRICE - - -PLACEPROMOTION Cloths are better clean

with a bar soapWhite skin is beautiful

For refreshing mind

GIVEN INFORMATIONSRIN FAIR AND LOVELY TAAJA TEA

Segmentation basis Family structure gender Geographical and demographical

Target audience Housewives Indian young girls and women

-

Positioning - - -

Uses Uses for washing cloths and washing utensils

Use for beautiful skin

-

strategy Introduced vim for washing utensils

Increase beliefs among existing and present customers

Adding new taste or blends, or flavors

Discussion question

• 1. what kind of RESEARCH will you adopt as a

marketing manager of HUL to enhance /

increase ITS RURAL MARKETING SHARE?

In terms of internal management of HUL

• Unilever Safety & Environmental Assurance Centre

• At the Safety & Environmental Assurance Centre (SEAC), their job is to provide Unilever with the skills, advice and guidance needed to reduce, manage and control any safety risks for consumers, employees and the environment.

Huge Population Base – • The huge population base in rural India provides

a massive opportunity for the companies to sell their products and services on a sizeable scale. Apart from a large population, the increased presence of media and higher literacy level has created a lot of awareness amongst them.

Discussion question

• What STP strategy will u adopt for HUL range of other product lines for Indian rural consumers, with appropriate marketing promotional strategy?

• With the increase in population and with the increased target groups undifferentiated products for an undifferentiated market is a thing of the past.

• Initially, marketers in India concentrated on segmenting the urban market only as it contributed to 75% of the revenue. With the saturation of the urban market in recent years and the growing demand in rural markets simultaneously, the need to segment the market is being felt increasingly.

• As economies evolve, consumer choice and requirements become more focused. This calls for Segmenting, Targeting and Positioning (STP).

• The rural markets generally prefer simple and easy to use products.

• The packaging has to be convenient and cost-effective.

• packaging that only adds to the cost and does not provide any additional convenience.

• The products should be able to cater to the distinct needs of rural customers and provide value for money.

Segmenting, Targeting and Positioning.Decision Actions

Segmenting •Identifying various bases for segmenting markets•Developing profiles of market segments

Targeting •Evaluating the market segments for their attractiveness•Deciding the market coverage strategy

Positioning •Identifying a set of possible competitive advantages of the brand•Selecting the right competitive advantage•Communicating the chosen competitive advantage to the target customers.

Different promotional strategies to enhance the rural market share

Identify the opinion leader at first then requesting her to circulate information

regarding the product.

Decorating the shops at rural area

Participating in different GRAMOTSAVA

Use Umbrella Shops To Target To The Most Interior Places Of Rural

PROMOTION OF VIM

PROMOTION

Use Promotional Strategies Distributing Chapaties Among The

Rural Public.

Shaces is the most successful strategy of HUL for entering in

the rural market

Another issues Infrastructure is improving rapidly• In 50 years only, 40% villages have

been connected by road, in next 10

years another 30% would be connected.• More than 90% villages are electrified,

though only 44% rural homes have

electric connections.• Rural telephone density has gone up by 300% in

the last 10 years. Increasing income and purchasing power The agricultural development programs of the

government have helped to increase income in the agricultural sector by increasing the productivity and better price for agricultural products, thus enhancing the purchasing power in rural markets.

Distribution strategy Using company delivery vans, melas,

haats, and mandis/ agri markets.

Promotional strategy• Rich traditional media forms like

puppetry, folk dances, audio visuals,

etc. should be used to convey the

right message to the rural folk.• Forms with which the rural

consumers are highly comfortable with should be used.

By communicating and changing quality perception

• Companies are coming up with new technology and they are properly communicating it to the customer.

• There is a trade-off between the quality a customer perceives and a company wants to communicate.

• The perception of the rural Indian about the desired product is changing.

By proper communication in local language

• The companies have realized the importance of proper communication in local language for promoting their products.

• They have started selling the concept of quality with proper communication.

By understanding cultural and social values

• Companies have recognized that social and cultural values have a very strong hold on the people.

• It plays a major role in deciding what to buy.

• Moreover, rural people are emotional and sensitive.

By providing what customer wants

• The customers want value for money. They aim for the basic functionality of the product rather than the frills associated which would not be of much use and will increase the price of the product.

• However, if the seller provide frills free of cost they are happy with that.

By associating themselves with India• MNCs are associating themselves with India by talking about

India, by explicitly saying that they are Indian.• M-TV during Independence Day and Republic Day time make

their logo with Indian tri-color.• In 1998, Nokia had launched cellular phone 5110, with the

India tricolor and a ringtone of ”Sare Jahan se achcha”.• Companies are picking up Indian models and actors for

advertisements and promotions.

• It is a normal tendency of an Indian to try to associate himself/herself with the product. If he/she can visualize himself/herself with the product, he/she becomes loyal to it.

• That is why FMCG companies usually showcase their products in around families in their advertisements.

By giving Indian terms for brands• Companies use Indian words for brands. • Like LG has used India brand name

”Sampoorna” for its TV. The term is a

part of the Bengali, Hindi, Marathi and

Tamil tongue.

HUL with its Project Shakti has already has a reach of 1.7 lakh villages, and aspires to reach 5 lakh villages by 2020

A NOTEWORTHY SUCCESS STORY

THANK YOU ALL

FOR YOUR KIND ATTENTION