RURAL MARKETING-COLGATE

PRESENTED BY:EMRAAN ALI KHAN

ISHA RATESWARNILAM SINGH

VIJIT VENUGOPAL

CONTENT

Rural area

Minimum population of 5000.

At least 75% of male workforce engaged in non-agricultural activities.

A population density of over 400 persons per square.

Rural marketing Rural marketing is promotion of a company's products in

the rural market buy using strategies which differs from that of urban market, the rural market is more price sensitive but it has preference for quality.

The concept of Rural Marketing in Indian Economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets.

Period between 1990s to present - During this phase, industrial sector gained significance and maturity thereby efforts were made by companies to market FMCG and consumer durables to rural areas.

Characteristics of rural market

Large & scattered market Heterogeneous market Income from agriculture: 55% of rural income comes from

agriculture Standard of living: 70% of rural India population are

employed in small scale agricultural & related occupations. Infrastructural facilities: roads, warehouse,

communication system, & financial facility are inadequate. Roads do not connect nearly 50% of the villages. Over 50% rural households have access to electricity, 46% still uses kerosene for lighting.

Challenges in rural india

Distribution: Understanding the psyche of the rural

consumer. Limited knowledge. Communication Cost per contact. Sale of fake & spurious product. Budgetary allocation.

RURAL CONSUMER BEHAVIOUR

Rural consumers are brand loyal. They have disposal income (i.e. because their

needs are limited, so lesser scope to spend.) Literacy level is on an increase. Elderly person in the family have the decision

authority. If a brand is turned down in a household in a

village, the whole village sooner or later boycotts the brand.

Colgate Palmolive (I) ltd

1806: Company is founded by William Colgate in New York to make starch, soap, and candles.

1873: Toothpaste was launched 1928: Colgate and Palmolive-Peet merge,

forming Colgate-Palmolive-Peet Company. 1937: the company moved into India. 1966: Palmolive dishwashing liquid is

introduced .

CONTD..

1937: launch first toothpaste Colgate dental cream 1949: launch tooth powder and toothbrush

1950: Palmolive shave cream 1976: launch programme “young India.” 1989: Palmolive extra care soap launched. 2003: launch oral health month program

CATEGORY /PRODUCT

Colgate in rural india

The company claims to have persuaded about 300 million people into using oral hygiene products in the country for the last 25 years.

The company, on its part, says that the rural markets account for about one third of its total sales, the rest coming on urban sales.

Colgate stepped up its rural promotion drives with IDA (Indian Dental Association) to add value. This has been the stepping stone to the high penetration in rural minds.

CONTD..

Change their habits i.e. from the usage of manjans and datoon to toothpaste and tooth powder.

Suggesting and implementing a rural promotional scheme was what Colgate called ‘Sampark’ for, as they were specialist in rural advertising category.

Colgate, a company also tied up with ITC E-Choupal and Project Disha and Rotary to spread the message of dental care and oral hygiene to villages across India.

STRATEGIC POSITIONCATEGORY VOLUME MARKET

POSITION RELATIVE SHARE

TOOTH PASTE 53.1 1 2.3

TOOTH POWDER 46.4 1 1.5

TOOTH BRUSH 40.3 1 2.2

VOLUME MARKET SHARETOOTHPASTE

2008 2009 2010 ARIL-MARCH2010

ARIPL-MARCH2011

COLGATE 49.4 52.4 53.5 52.9 53.1

COMPETITOR 1

24.5 22.8 22.5 22.6 22.8

OTHERS 26.1 24.8 24.0 24.5 24.1

VOLUME MARKET SHARETOOTH POWDER

2008 2009 2010 APR-MAR 2010

APR-MAR2011

COLGATE 48.4 48.9 47.1 48.7 46.4

COMPETITOR 1

29.1 29.3 29.9 29.5 30.1

OTHER 22.5 21.8 23.0 21.8 23.5

Acceptibility

Product strategy

Acceptibility

Packaging strategy

Affordability

Pricing objectives

affordability

Method of pricing

availability

Rural challenges

availability

Distribution adoption

Awareness

Promotion adaptation for rural India