herbal shampoo-market plan

BY ;- ARSHID TO ;- KRISHAN SIR

Marketing Plan for an Herbal Shampoo to

be launched in India

Go Clean

Presenting to you a totally new

formulation which works both on your and

scalp from the very first wash, washing

away all the dandruff you are worried

about so that u don’t have to hesitate,

every time u go out…

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TERM PAPER SUBJECT ;- RURAL AMRKETING

LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

TOPIC;- MARKET PLAN OF SHAMPOO

STATE;- ARUNACHAL PARCESH

Submitted by: Submitted to:

Mr .Arshid Bashir Mr .krishan Gopal

Regn.No. 10800195 Lect. LIM

Sec: RT I801 LPU

Roll no. B37

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

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ACKNOWLEDGEMENT

With immense regard and respect in the honor of the “Lovely

Professional University”, I am very grateful to it for providing me an

opportunity to work.

I am highly grateful to Mr. krishan sir , Lecturer LIM for the trust he has

shown in me by allowing me to perform this study and under whose able

guidance and direction , I was able to give shape to my report. His constant

review and suggestions throughout the project are highly commendable.

My heartful thanks to all my friends who in one way or other helped me in

this project.

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Introduction

Ten years ago, foreign consumer products were scarce in India and only available to the affluent.

Import restrictions prevented or severely hindered foreign consumer goods from entrance to

India. With the economic liberalization that ensued, foreign brands are now prevalent across

India (Luce, 2002). Today, multinational corporations view emerging markets such as India as

prime opportunities for growth. According to Shanthi Kanaan, writer for The Hindu, rural

markets are growing twice as fast as the urban markets (2001).

With a rural population equal to just under 2.5 times the population of the entire United States as

of the 2000 census, the potential consumer base is astounding. But generally speaking, success in

India’s rural markets for multinational corporations has been mediocre at best. It is from these

struggles and failures, however, that multinational corporations seeking to enter the rural Indian

market can learn how to do so more wisely.

Understand the Rural Market

With a population already in excess of one billion people, India has caught the eye of

multinational corporations across the globe as a place of opportunity for exploring new markets.

While India has portions of their population that would be considered wealthy or middle class by

Western standards, a much greater percentage of India’s population is low income. As a result,

they spend money, live, and use products differently than the countries where most multinational

corporations originate Rural areas, in particular, exemplify these differences. Understanding the

characteristics that make the people and the market in rural India unique can help corporations to

enter this market with success. The key characteristics define the term rural, determine the

amount and flow of income, and determine the types of products

and packages that are typically used in rural India.

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Rural Income

With an average income equivalent to $42 per month ($504 dollars per year), rural Indians have

a very low disposable income Most rural homes have minimal storage space and no

refrigeration. Very few people own or have access to cars. As a result, rural Indian purchasing

habits tend to be of an “earn today, spend today” mentality. Rather than buying in bulk, which

would mean paying more for a large quantity upfront, rural Indians tend to buy what they need

for short segments of time . These factors result in consumers buying pro d u c t s locally, as well

as on a daily basis.

In addition to the fact that income levels are low, rural incomes also vary greatly depending on

the monsoons. When a monsoon hits, this devastates the livelihood of most rural consumers

because they are dependent on agricultural work for income. Corporations are also directly

affected because this makes it difficult to predict demand.

Tackle the Distribution Networks

Distribution networks in emerging markets tend to be very unique and often times disjointed.

India is no exception. Before a multinational corporation even considers entering India’s rural

market, it is important to first get an understanding of the current distribution system

characteristics as well as the ways that the system is likely to change over time In doing so, a

company can assess whether or not accurate and timely product distribution can be achieved

without first investing in the distribution networks. Some of the characteristics unique to rural

India’s distribution networks include the modes of transportation used as well as the point of

sale. Despite the challenges of the rural Indian distribution environment, there have been

distribution successes from multinational corporations.

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Point of Sale

The retail establishment where most rural consumers purchase their day-to-day goods is at a

kirana or street shop. These small open stalls line the streets and are approximately the size of a

living room. Consumers purchase everything from bananas to razors at a kirana. With over 2.5

million kiranas throughout India’s rural towns and villages, keeping store shelves stocked is one\

of the main challenges to consumer goods manufacturers . In order to reach these local shops and

establish a brand presence in them, companies need substantial amounts of working capital and a

large committed sales force

Modes of Transportation

Over three million retail outlets in India are reached by companies that produce packaged goods.

Methods of transportation used include camels, bull drawn carts, bicycles, trucks, and trains . In

addition, poor roads and unreliable electricity are two additional obstacles common to the

distribution networks in rural communities

Though glass bottles are popular in India, breakage can be a serious problem when the glass is

carried over bumpy roads in the back of a truck . Companies must be prepared to design

packages for their products that will be capable of withstanding these types of conditions.

Create the Packaging Solution

When approaching the task of designing a package for the rural Indian market, all of the

aforementioned factors must be considered. Multinational corporations that have been successful

with marketing and packaging consumer products for rural India have taken time to research the

target market. They built an insightful and unbiased understanding of the characteristics that

make it unique (Prahalad and Lieberthal, 2003). As a result of this research, two of the most

effective elements of a package designed for rural India include the size and visual

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communication. Material usage is also another important element for the packaging engineer to

consider.

Think Small

Due to the fact that rural Indians have small disposable incomes and very little storage space, one

of the most popular concepts to hit the rural market has been sachets. Sachets are plastic pouches

that contain approximately 20 milliliters (.68 oz.) of product (Sachets were first introduced to

India in the 1990’s by an Indian company selling a 10-milliliter sachet of Velvette shampoo.

Before the sachet, shampoo in India was only available in larger bottles, therefore limiting its

sales success among people with small incomes . Sachets meet the needs of the rural consumer in

several ways. Sachets are inexpensive, they occupy a small amount of space, and they allow

consumers to experiment with new products that they may never have tried before Coca-Cola is

another company that has found success by thinking small. In a packaging change aimed directly

at the rural and lower-income markets, Coca-Cola launched a new 200 mL (6.8 oz.) bottle for the

equivalent of 10 cents in 2001 After introducing the smaller size bottle, sales increased 34

percent by the end of the first quarter in 2002 Packaging in smaller units clearly helps to increase

the affordability of products for rural Indian consumers.

Visual Communication

The rural area is a market where large portions of the population are illiterate. So, when

packaging consumer products for rural markets, companies must use prominent logo symbols

and logo colors to assure that illiterate consumers will be able to recognize the products.

Therefore, communicating brand values through the package rather than with words becomes

essential. Emotional Surplus Identity (ESI) is a concept that that uses the shape, color, and

content of a package to differentiate a brand in the eye of a consumer.

By creating a bond with the consumer through the package, companies are able to establish a

relationship that encourages repeat purchases. Loud, bright colors are typically used on packages

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to differentiate a product from the others on the shelf and to create a lasting impression in a

consumer’s mind Another technique used by multinational corporations has been tailoring

products, including changing brand names, to give them a rural image. In the eyes of the

consumer, branded products are associated with quality and value. Nirma, the largest selling

detergent in the world, found success in the rural Indian market by using un elaborate packaging

to position their product as one that cleaned well yet was affordable . While this technique is not

the most eye-catching, it allows rural Indian consumers to experience the benefits of a branded

product without requiring elaborate or expensive packaging on the part of the multinational

corporation

Material Usage

Cost is not only a factor that influences a consumer’s decision. Multinational corporations also

address cost when evaluating various packaging options. For example, meeting the needs of

consumers by packaging products in small quantities increases the packaging costs for a

company in comparison to a large bottle of product. One way companies are able to keep the

prices of sachet-type packages down is partially due to lower government duties on small packs.

In some instances, it can actually be cheaper for a consumer to purchase sachets rather than a

bottle of product. For example, a 100-milliliter (3.4 oz.) bottle of Pantene shampoo retails for 61

rupees whereas 100 milliliters worth of sachets sells for 40 rupees (88 cents).By thinking small,

using pronounced colors and logos, and planning for material usage, multinationals can create

packages that meet the needs of the rural Indian consumer.

Conclusion

With an approximate population of 700 million people, the rural Indian market is important for

multinational corporations to tap. Although rural Indians need to purchase consumer goods just

as their Western counterparts do, rural Indian consumers have a different set of needs that must

be met by both package and product. Spending time researching the rural Indian consumer as

well as the market before diving in can help to prevent unnecessary struggles and failures. If the

opportunity exists, partnering with an existing Indian company upon market entry can provide

several key advantages to a company. Understanding the available distribution networks in rural

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India is crucial to making a successful entry into the rural Indian market. Packages need to be

designed to withstand more distribution abuse due to poor roads and more primitive modes of

transportation. Finally, when creating a package for rural India, small sizes allow consumers to

try new products. It also caters to the fact that most rural Indians have low disposable incomes

and little storage space at home. By applying these lessons that have been learned from

multinational corporations in the past, the task of entering the rural Indian market should be

promising.

Challenges

• Lower literacy rates • Seasonal demand • Spurious goods • Different from Urban market

• Lower per capita Income • Many languages, Dialects • Underdeveloped • Lack of Physical

communication,

Infrastructure Rural Market

• Half the national income is generated in the Rural India.

• 2/3rd of the population live here.

• A World Of Opportunities

.

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Production of the shamoos in india

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Year Production (in units) in million

2004-2005 6.52

2005-2006 7.60

2006-2007 10.78

2007-2008 13.58

2008-2009 17.22


Sales of the shampoo in the Indian market

Year Total sales (in units) of two

wheelers (in million)

2004-2005 6.20

2005-2006 7.05

2006-2007 11.42

2007-2008 7.86

2008-2009 12.16

Data regarding Arunachal pardesh : Source White book Marketing

Sample 2463000

Estimated Individuals 24572

House Hold Pattern

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House hold size Individuals(000) Row % Col%

1-2 2561 10.4 4.6

3-4 8266 33.6 4.9

5-6 8379 34.1 4.3

7-8 3781 15.4 4.4

9-10 9.7 3.7 3.1

Rural consumption Pattern

Sample 2463000

Estimated Individuals 24572

Rural Consumption Pattern year 2005

purchase Individuals(000) Row % Col%

Yes 7000 28.31 6.00

No 17572 71.51 79.68

Rural Consumption Pattern year 2009

purchase Individuals(000) Row % Col%

Yes 11000 44.4 19.75

No 13572 55.23 81.25

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Rural Demographics Pattern year 2009

Estimated Individuals(000)= 1753

Total sample = 15291

Age total Col % Row %

12-14 1739 11.4 3

15-19 2003 13.1 2.7

20-29 3455 22.6 2.7

30-39 3110 20.3 2.9

40-49 2199 14.4 2.8

+50 2786 18.2 2.5

Total 100% 100%

Loyalty Segmentation:

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Company High Risk Trapped Accessible True Loyal

Hul 19 22 9 50

P & G 26 18 8 48

DABUR 19 26 9 47

COLGATE –PALMOLIVE

27 18 9 46

HIMALAYA 34 16 15 35

Source: 2007-2008 BW Marketing Book .

SITUATIONAL ANALYSIS

Safron herbal shampoo drink has potential for growth in the functional b shampoo industry.

Functional shampoos are fortified with dietary supplements and herbal medicines. It is becoming

a multi-billion dollar industry. Included in this industry are nutritional supplements, , herbal

remedies, . The herbal segment is the specific focus of this analysis. In the following situational

analysis the company, its product, customers and competitors are examined..

CATEGORY FACTORS ;- PORTER FIVE MODEL

Bargaining power of buyers –

The level of bargaining power differs among groups of buyers . The bottlers, distributors and

retailers have significantly greater bargaining power than the end consumer does . large

retailers , kiryana chains are able to extract from the soda manufactures through incentives such

as volume base rebates , promotions and displays .These retailers are highly concentrated and

can thus wield significant power.

The bargaining power of buyers is high because of presence of substitutes from HUL . P&G

other and High bargaining power because because of various competitors .

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Bargaining power of suppliers;- This assessment is really the mirror image of the buyer power

analysis .The Bargaining power of suppliers is low as there are many suppliers .

There are many substitutes of the product supplied .

Category rivalry;-

There is category rivalory between HUL and P&G , Dabur . This rivalory leads to a pressure

on prices and significant investments in advertising in an attempt to build and maintain brand

loyality . An article from competitive media group reported advertising expenditures in 2008

were 900 billion dollar.

Thus HUL & P&G heatedly over prices, suppliers , spokespeople , retail space and mostly the

taste buds from consumers.

Threat of new entrants

Given the growing interest in shampoo in rural India, it is only reasonable that many new

players are trying to venture into this market. The heavy initial investment and difficulties in

sourcing sufficient quantities and quality of coffee might prompt most new entrants to restrict

themselves to small, regional chains. These companies could evolve strategies for maximizing

operational efficiencies in their regions. This, coupled with very low switching costs for

consumers, will upset existing café chains.

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Meanwhile, international giants including are also evaluating prospects in India. Although

capable of investing substantial capital, government regulation makes it mandatory for them to

use the tie-up or mergers and acquisitions route to enter the Indian market. Unlike typical new

entrants, these companies will arrive with considerable past experience in the industry, putting

considerable pressure on existing chains.

A third possibility is that of suppliers starting to integrate downwards in the value chain, to take

advantage of economies of scope. Such a move would result in considerable cost savings and

thus yield better margins

Threat of new entrants ;- threat of new entrants is very high in shampoo segment as shampoo

segments segment is still in infancy stage in rural market

Switching cost . switching cost is low as customers can easily move from one marketer to

another marketer

Threat of Substitutes

A unique, novel experience and the opportunity to socialize are the main attractions culture. In

the Indian context, restaurants, hair oil and could be viewed as viable substitutes. Shampoo have

managed to differentiate themselves as more of a lifestyle oriented industry compared to the

others which satisfy basic needs.

A bigger threat of substitution would be from hair condition . Threat of substitutes ;- in shampoo

segment the threat of substitute is very high because of high market potential . eg herbal hair oil

could be a threat.

Product Analysis

Safron coincides with the goals of the other products . This goal is to bring Safron to a

profitable market share and it is using the There are many Safron shampoo in the market today

and the main goal of of Safron , is to make it one of the top competitors in the shampoo

segment.

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Market Trends. Shampoo are still a baby; they have only been popular for 5 years in shampoo .

Currently, heath drinks are most popular at college going students .

Pricing. Typically, saffron shampoo are sold at RS I.OO. Distribution Channels. Presently,

shampoo are being sold in grocery stores, convenience stores, gas stations, std booths In stores,

saffron are strategically placed near the front of the store, or near the beverage section with eye-

popping displays to draw in the customer.

Advertising. Currently, Shampoo that is advertising on television and radio .

The market is becoming competitive and soon there will be a few key players in the industry,

and advertising will become a major part of their marketing strategy.

Competitors in the industry will be increasing advertising to distinguish their product from the

rest. Marketing will be very competitive and Safron will need to find a way to distinguish its

product from the others.

Market Factors of Shampoo market

Market size

Indian Safron shampoomarket is still in its infancy due to the lack of awareness among the

population. In value terms, the health food drink market is around Rs 1, 400 crore and in volume

terms around 65,000 tonnes per annum.

Market growth

According to market research shampoo in rural is still at nascent at stage when compared to

urban . however the Safron shampoo in india grew at 50% a year between 2002 and 2009 .on the

back of an increasing modern retail stores, the the health drink market is expected to reach RS,

1100 crore by 2010 youth

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Product Life cycle:

Safron is currently in the introduction stage in india it is in Introductory stage Furthermore,

cost management, product differentiation and marketing have become more important as growth

slows and market share becomes the key determinant of profitability.

Safron advantage in this area is mainly due to its establishment strong branding and it is now

able to use this area of stable profitability

Sales cyclcity;- Many categories experience substantial interlayer variation in demand .in

shampoo segment same is the case . but it is less to some extent .

Seasonality;- intra year cycles in sales is generally not viewed positive . shampoo segment the

demand is more in summer as compared to winter .

Environmental Analysis Of shampoo

REGULATORY FACTORS;-Government factors and other agencies have effect on category

attractiveness through regulations . government has restricted the use of ingriedents coming from

animals and other harmful chemicals like Acetate , acetic anhydride in india.

Social factors ;- Trends in demographics , lifestyles , attitudes and personal values among the

general populations are of particular concern for consumer products and manufacturers . first,

new , products have been developed to fit into today’s lifestyles. Safron Safron will take this

ALL into consideration.

Political factors;- political factors play an important role in marketing planning of a product .

for example . Marketing Safron in nagaland and arunachal pardesh however It cannot be

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marketing in naxalities areas , because they are not politically stable . it can result in lost of

business , property , and risk of employees,

Economic factors ;- economic factors also plays an very important . The financial impact of

having foreign markets or producing in other countries can vary widely . when employment

conditions are high like in America they have to pay more . GDP of a country also plays an

very important role on product.

Technological factors. Technological

* Advanced in technology change product/packaging/flavors

* Advance in science (add to Safron formula more safer /healthier)

Advances in production technology (more efficient + better quality/ less staff required = cheaper

for Safron = cheaper for customers)

Corporate Vision

We shall achieve growth by continuously offering unique products and services that would give

customers utmost satisfaction and thereby be a role model”

The Concept of Sachets

•Whatever I make, I want the coolies and rickshaw pullers to use . I want my product affordable

to them”

• “Sachets are going to be the product of future”

• I will introduced the sachet concept as he felt liquid can be packed well in sachets.

Target Audience

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• Lower Middle Class

• Semi Rural (Sec B2, C, D)

• Monthly household income of Rs 1500 – 3000

• Females and males in age group of 16 - plus

Promotion

• Trial and free samples

• Ad Strategy based on the powerful appeal of cinema among common masses

• Innovative radio ads based on popular cinema dialogues, unlike plain radio jingles of

competitors

• Popular cine stars endorsed Chik – Amala, Khushboo, Manorma and Charlie

• Radio used as a sole mass advertising medium

• Annual ads spend about Rs 2 Lacs

•Cinema is the most cherished means of family entertainment and cine stars have cult following

in Arunachal pardesh. Therefore the communication strategy was to leverage

Multinational companies sold products in big bottles and not in sachets and they sold only from

fancy stores.

• MNC did not look at the small kirana stores, nor did they look at the rural market.

• CHIK went to the rural areas of South India where people hardly used shampoo.

• Showed them how to use it, did live demonstration on a young

Competitors

• Hindustan Unilever Ltd. (HUL),

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• Procter & Gamble Company (P&G)

• Dabur

• Himalaya

• Colgate-Palmolive

Indian shampoo market, where sachet (7 ml) format accounts for 75 per cent of the total sales,

Chik has been bringing in 90 per cent of its sales in this format

Current Market Potential

The awareness to use personal care products made from herbs and other natural

ingredients is increasing. Many people prefer herbal product over synthetic chemical shampoo.

The product has been traditionally made by our ancestors and was widely used before the advent

of chemical / synthetics and is not a totally new product for Indian customers.

Since the herbal shampoo industry is not fully developed in the country and over periods

of time consumers have become aware of advantages of using shampoo made from herbals, there

are great future prospects for saffron Herbals

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Unlike synthetic chemical shampoo there are absolutely no side effects from using herbal

shampoo and Herbal shampoos generally attracts the customers, especially the fair sex .Hence

there is growing demand for such an herbal product in urban and in semi urban areas.

Market Research

1. Hair Care Facts

• The frequency of shampoo usage is very low. Most consumers use shampoo only once or

twice in a week. In many cases, these products are used on special occasions such as weddings,

parties etc

• Some customers use shampoo only to address a specific problem such as dandruff or

when they need to condition their hair

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• About 50% of consumers use ordinary toilet soaps to wash their hair

• About 15 % of consumers use toilet soaps as well as shampoo for cleaning their hair

• Brand loyalties in shampoo are not very strong. Consumers frequently look for a change,

particularly in fragrance

• Consumers attribute lathering to the act of cleaning

• Major expectations from the product are improvement in texture and manageability,

giving softness and bounce to hair, curing and avoiding damage to the hair

• An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml

needed in Western countries as most Indian women have long hair

• Most consumers do not use shampoo daily

• Regular users would need smaller quantity of shampoo per bath. Hair tend to collect

more dust due to dusty environment and oiling habits

• Southern market is predominantly a sachet market, accounting for 70 % of sachet

volumes

• In Contrast, shampoo bottles are more popular in the Northern markets

• About 50 % of the shampoo bottles are sold in the Northern region alone

• In the North, local brands such as Ayur have strong equities and these products being low

priced dilute sachet’s USP of low price

2. Market Size

• Size of shampoo market - 30 Cr

• Anti - Dandruff Shampoo - 20 % of above

• Sachet Sales - 70 % of above

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3. Shampoo Awareness

• Urban areas - 90 %, accounting for 80 % of shampoo sold in the country

• Rural areas - 80 %, accounting for 20 % of shampoo sold in the country

4. Usage and Penetration

• Per Capita consumption of Shampoo in India - 13 ml

• All India Shampoo - 14 %

• Urban - 40 %

• Rural - 10 %

5. Growth

• Average Growth over the last few yrs - > 20 %

• Expected Average growth over the next few yrs - 25 %

6. Market size of Herbal Shampoo

• Only 13% of total shamp

Opportunity and Issue Analysis

Saffron . is aware that India has a very large population and Indians have more hair than natives

of any other country. The consumption of synthetic shampoos is quite high in urban and semi

urban areas and the company’s objective is to transform this demand of synthetic shampoos into

the demand for herbal shampoos. However, there is always a threat from the existing niche

players in the market, imitative future launches and substitutes. The key issues facing Alyaa

Herbals are:

i. Should it target only urban and sub urban areas or also include the rural areas?

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ii. Should it go for collaborating with some companies for producing bottles, transportation

or do all the things on its own?

iii. What should be the time to time strategies so as to gain a competitive advantage over

others

Objectives

Alyaa Herbals decided on the following specific objectives:

• Earn an Annual Rate of Return on Investment of 20 percent after taxes over the next five

years.

• Achieve sales of about 20 million bottles (100 percent capacity utilization) in the first

year of operation.

• Achieve 30 percent consolidated growth in next two years.

• Achieve the position of being a reliable and widely used herbal shampoo.

Marketing strategy

Product:

i. Brand Name: safron

ii. Punch Line: Quality Divine.

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iii. Quality: A very effective hair-strengthening and moisturizing shampoo, with refreshing

herbal extracts, specially formulated to prevent hair loss and fight Dandruff. Hypoallergenic. No

harmful chemicals

iv. Key Ingredients: Fenugreek (for hair-strengthening and nourishing) and Neem(for killing

germs) Extracts with Shikakai Granules(anti- Dandruff properties and mint(for Freshness).

v. Safety: Completely Non- harmful. Safe to use on artificially colored or permed hair. Safe

for daily use. Suitable for any person above 5 years of age.

vi. Packing and Packaging:

• Packed in 7ml sachet, 35 ml, 100 ml and 200 ml plastic bottles.

• The 50 ml bottles will be the trial packs, which will be discontinued in the 3rd year of

operation

• Pictures of the key ingredients will be displayed on the pack.

• Safety lock will be on the cap of the bottle to ensure the customer of non-adulteration.

vii. Labeling: Labeling will include the following:

• Brief description of Quality

• Directions for use

• Key ingredients

• Safety Features

• Price, Quantity, Company’s name, company’s logo etc. • Barcode

Target Market: Targeted to the following:

• Every person above 5 years of age.

• High income, upper middle and middle class of rural areas

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• Pricing:

i. Pricing Strategy: Penetrative and Competitive pricing – low price to attract more

customers in comparison to the competitors.

ii. Suggested Retail price:

Quantity (in ml) Price (in Rs.)

7 2.5

35 17

100 68

200 120

iii. Price Flexibility: Prices are Flexible to the market conditions and to the cost of

manufacturing and also to the prices of competitive products.

Place:

1.Channel of distribution: Manufactured product will move through the following channel

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This channel of distribution has been adopted as the company is new to the country and

distributing the product by ourselves may result in excessive cost to the company. So to avoid

this problem the company will collaborate with a distributor (to be selected through the process

of tender filling) and as the market is very large it has to go through the dealers, to ensure proper

distribution.

ii. Inventory Management: Production will be done on batch basis and when one batch will

be under process and the raw material for the next batch is being fed, the raw material for the

second consecutive batch will be procured. This will result in low storage cost and sufficient raw

material for manufacturing

iii. Warehousing: The manufactured product will be stored in the company’s warehouse near

its plant before dispatching it to the distributor.

iv. Distribution Centers: Eight Distribution Centers in:

a. North

b. North East

c. North West

d. South

e. South East

f. South West

g. East

h. West

v. Transportation: Company will collaborate with a transportation Company (to be selected

through the process of tender filling) to transport its goods from the plant to the warehouse and

to the distributor’s place.

• Promotion:

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Promotion Strategy: Following strategies will be used to promote the product:

• Push and Pull Strategies – Push Strategy: we will be using push strategy to concentrate

some of our marketing efforts on promoting our product to retailers to convince them to stock the

product. A combination of promotional mix strategies will be used in this aimed at the retailer

including personal selling, and direct mail, pushing the product onto the retailer.

Pull Strategy: we will also be using pull strategy to promote our product amongst the target

market to create demand. Consumers will pull the product through the distribution channel

forcing the wholesaler and retailer to stock it. This will be done through providing the customers

with money off coupons or special offers.

AIDA strategy – The third strategy to promote our product will be the implementation of AIDA

model which is

Attention Interest Desire Action

This can be illustrated briefly as grabbing the attention of the customer, then holding his interest,

then making the product desirable to him and finally making him to purchase the product.

AIDA is an acronym for Attention, Interest, Desire, and Action. This strategy can be made

successful through effective advertisement, distribution of free samples etc.

ii. Advertising: To create awareness about the product in the minds of the customers and to

provoke their buying actions. Advertising will be done through the following mediums:

i. T.V. spots

ii. Magazines

iii. Billboards

iv. Product packaging and inserts

v. Posters and Flyers

vi. In – store displays

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vii. Distribution of free samples

iii. Public Relations and Publicity: To be done through-

i. Exclusives

ii. Community involvement

iii. Opinion pieces

iv. Feature stories

v. Social responsibility Activities

iv. Personal Selling: Personal selling will be done only in Supermarkets and big stores,

where a representative of the company will be made available to tell the customers and also help

them about the benefits and the uses of the product and also what differentiates our product from

others available products

5. People

The employees and the consumers are very important for the product’s development. They

represent the image of the brand; it is for that the services have to be optimum. The employees

and more particularly the commercial people and the hostesses should be trained in order to

know the product and to can sell it properly. Moreover, in the other hand, the clients are

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important because they passed a message to the potential clients. To allow this, the hostesses at

the beginning and the employees after have to explain the quality, the taste of the product.

6. Process

We have seen that the selling process is vital in the decision making process. In the shops, the

selling is making by the advice. The clients like to feel reassured in front of making process. So

we conclude that one time per three months, commercials and hostesses will give advices to the

consumers in order to make him more confident the product.

7. Physical evidence

The environment should be very clear, clean and attractive because the decision making process

takes into account these elements. Moreover, in the shelves, the products should be stored

correctly in order to attract the consumers. We have to ask to the staff that we need light in order

to bring out the colors of the product. initiative which would cost near about Rs 5 lac

Slogan

It is more than a shampoo …

…Rejuvenating hair

Reason for choosing slogan:

The slogan It is more than a shampoo … indicates that the safroon is mere a tea but is

something more than that giving more values and benefits than any other tea in the market.

In the next line …Rejuvenating hair here we exactly try to explain in one line what it is other

than just a shampoo . Rejuvenating tells that its develop youthfulness upon regular consumption

by slowing down the aging process of body.

Rejuvenating hair clearly tells that it helps to revive the hair and clean the hair from inside

with help of its medicinal properties extracted from various herbs which are ingredients of this

shamppo

SWOT ANALYSIS OF SAFFRON

Strength:

• International packaging

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• Affordable and reasonable price

• Have our own packaging plant

Weaknesses:

• Heavy capital will be required for promotion

• Consumers are brand loyal toward competitor’s product so we have to convince them.

Opportunities:

• Increase usage

• Can introduce flavored shamppo

• People are switching from synthetic to hebal shampoo

Threats

• Competitors can come up with herbal shampoo and sachets

Short Term Goals: Improve market presence by 20%

Short-Term Objectives

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1) Aggressive Marketing Strategy

SAFRON can take advantage of the positive press on the health benefits of SAFRON to boost

the sales . The company can use recent studies on the health benefits of SAFRON as the basis

of its press releases and advertising campaigns.

2) Improve Packaging – Currently, the SAFRON will available in two sizes:

the 5ml - and 10 ml. SAFRON other packaging sizes to ensure that consumers will have other

choices and SAFRON will be easily and readily available to consumers.

3) Improve Shelf Presence – SAFRON can make a deal with retailers ensure retail shelf space

and prominent positioning for SAFRON . “Although an average shopper may not notice what

brands are positioned in prominent places on shelves or how much room is allotted to each

manufacturer, …shelf space and positioning as make or break factors in introducing new

products”

Long-Term Goals: World Number One ready-to-use SAFRON

Long-Term Objectives:

4) Product Innovation – Safron must continue its innovative research and development strategy

to come up with new products. SAFRON has extensive research facilities on product

improvement. The company can use its resources and professional expertise to come up with

new flavors that will suit the continuous demand for healthy ready-to-use SAFRON .

Monitoring And Controlling

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Monitoring and controlling allows the business to check for variance in the budget and actual.

This is important because it allows SAFRON to take the necessary\actions to meet the marketing

objectives. There are three tools SAFRON WILL use to monitor the marketing plan of

SAFRON. They are the following:

i. Sales Analysis

The sales analysis breaks down total business sales by market segments to identify strengths and

weaknesses in the different areas of sales. Sellers of SAFRON products vary from major retail

supermarkets to small corner stores. This gives the its products maximum exposure to customers

at their convenience.

ii. Market Share Analysis

Market share analysis compares SAFRON business sales performance� with that of its

competitors .SAFRON looks to increase its market share by over 60%. With the changes

SAFRON is currently undergoing, they aim to regain an iron fist control of the market. Target

market various age groups and lifestyles from high school students too college , and male or

female.

Marketing Profitability Analysis

This analysis looks at the cost side of marketing and the profitability of products, sales

territories, market segments and sales people. There are three ratios to monitor marketing

profitability; they are market research to sales, advertising to sales and sales representatives to

sales. The results of these three tools can help SAFRON determine any emerging trends, such as

the need for a different product. Comparing these results with actual results gives the business an

idea on when to change.

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Support marketing activities

INTEGRATED MARKETING COMMUNICATION PLAN

Budgeting and financial considerations

After focussing over the budgeting two questions arise. First question is what should be the

communication cost and second is what should be the media mix or the proportion of allocating

budget in different tools of Integrated Marketing Communication.

Communication mix

All the allocation is based on the idea that dare to think out of box and make Safron - a world. So

the budget would be allocated on the basis of IMC objectives which are always in line with the

marketing objectives. So the budget allocation goes like this:

a. ADVERTISING 0.5 CRORE

b. DIRECT MARKETING 0.5 CRORE

c. SALES PROMOTION 0.25 CRORE

d. PUBLIC RELATIONS 0.25 CRORE

e. SPONSORSHIP 1 CRORE

f. PERSONAL SELLING 1 CRORE

g. INTERNET MARKETING 0.5 CRORE

h. EXECUTION AND CAMPAIGNS 0.5 CRORE

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ADVERTISING

First of all marketing research wil be undertaken. Pre-advertisement perception of customers

and then post-advertisement perception can be evaluated correctly. Also research will show the

actual demands from potential customers and the points were the Safron is lacking-.

For best advertising the main element of advertisement i.e. message research is also done which

would be afterwards transferred to the advertising agency, who are

a. Ogilvy and Mater

b. J WalterThompson India

c. FCB-Ulka Advertising ltd.

d. Contract advertising India Ltd.

The main element of decision main advertising are what should be the production cost of

production companies, what would be the site cost? What would be the agency commission/ fee?

And what would be the travel expenses?

Advertising channels will include TV (national & international), newspapers (local, national and

international), website banners,

The central theme of every TV ad would be luxurious life under the canopy of with highlighted

scenaries and Safron services at effective description.

Newspapers like Times of India in genera and magazines in particular would be used for print

ads. They include outlook traveler, Safroniare india, SAFRON, FHRIA magazine, etc.

The best domains of Safrons (websites) are targeted and the banners of Safron - are executed

with continuation of worlds leading search engine “GOOGLE”.

International personalities are also involved to endorse our Safron. Most famous Indian

celebrities like Shah Rukh Khan, Amitab Bachan,

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Sales promotion

How to increase sales. . They have to sponsor contests at national level and simultaneously

brochures plus informative material deliver to potential customers. Trade shows and exhibits will

also help. Maintaining good relationship with the once visited customers and recording their bio-

data will increase the chances of more customers in the next time. Customers who will get

satisfied with each prospect of the Safron - will act as a good word of mouth so would our

purpose accomplished.

Direct Marketing

Direct marketing will be the highest priority in IMC plan as it has been found by research that

huge population of India has either no knowledge or has wrong knowledge herbal shampoo . So

a well designed web site will provide all facts about Safron operated Safron particularly Safron

-. Each and every aspect of Safron - will be available at single click and I am cent percent sure

that after launching this (IMC) campaign the footfall will defiantly increase..

Since I have allocated 0.5 crore rupees for direct marketing. It involves cost of banners and

advertisements on the other websites which will give hostile invitation to the customers.

www.-Safron.co.in.

Public relations

This communication tool is most expensive incase of crises. For example the detection of pesto

chemicals . So to retain the loyal customers in such case is really difficult so is maintaining too

tedious.

Same is the case with Safron and PR are nothing but what people carry in their mind

(positioning). PR can be maintained by showing good relationship with neighboring environment

and media as well. Govt. policies and procedures should be followed properly. Employee

relations as well as corporate relations should go hand to hand. Similarly marketing public

relations would be of great value for increasing sales.

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All the publications be it reports, brochures, magazine or press kit help in maintaining good PR.

Special events and company sponsorship (discussed separately) also ad value to the goodwill of

product . Meetings plus social events will be used to promote PR relations in absence of strong

HR department.

After planning a good PR campaign its execution should be properly managed

Publicity

It is any reference obtained without paying for it say time over a TV channel or a write up on the

web for the services rendered by the Safron -. Its advantages are the credibility factor and good

publicity as well. In the area of below poverty-line living people, a good and healthy school

would be opened as a part of companies CSR

Promotional event for saffron launching:

During one weekend in a big in famous village we will organize a big event. In the street, there

will be hostesses with special clothes (king and queen clothes) who will distribute samples and

cups with tea to offer the product to passer-by. They will distribute flyers

There will be a show about the theme of green with flags of our brand. The artists will be

dressed in clothes that are particular to that rural area and hold a speech about royalty. After

the show, they will hand ut flyers the people can fill in so as to win the weekend trip to see a

cricket match At the end of the event, it will have a drawing of lots. The winner will receive the

present (tea boxes) via post way For the child, there will be inflatable game in castle shape to

jump. The staff will keep an eye on the children while the parents take part in the competition

-In the street there will be a lot of decoration of the brand image

Advertisement

At the beginning, the strategy is to focus on the Internet, the radio and on daily local newspaper

to reach a lot of customers. These media are noticed by a large target group which will help the

firm to be known. After six months or one year, we will begin a campaign on television, in

magazines and on airports.

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1. Marketing Objective

To offer consumer best health advantage through saffron .

To establish as market leader in herbal shampoo

To enable saffron to satisfy, fulfill the consumer’s personality & lifestyle

To increase saffron popularity as an icon in Herbal shampoo product.

The different managers should know the sales and marketing objectives of the firm in order to

achieve these objectives.

We are going to use the method SMART:

·Specific: The objectives have to be clear. For example, in each shop, the company of “saffron ”

must achieve the selling objectives. The turnover to reach will not be the same in the different

shop because we make the selling objectives according to size of the shop, the frequentation, the

type of the clients.

Measurable: The company has to follow the different targets in the sales outlets and if each shop

allowed to reach the objectives. To measure the sales we can calculate the sales by day in order

to understand how the client bought the product. With these data we can improve the strategy

and the sales. The commercials can ask to the supermarket to put the product in a different way

or to make more promotion.

Achievable: The targets have to be realist. At the beginning the turnover would grow slowly and

after the promotion, it would have a faster expansion. If we reach to win clients from our main

competitor (in a first time) and from the others tea brand (in a second time), the sales would

grow increasingly. The firm should have a long term’s vision and should be reactive in front of

decisions or problems which can occur.

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Relevant: the objectives have to be founded on fact and not on suppositions. The firm has to

respect its general strategy and its image. The firm should take into consideration the sales of its

competitors in order to be based on relevant objectives.

Timed targeted: each objective should have a deadline. It can allow measuring the different sales

of the day, of the week, of the month, according to these data, the firm can change the bjectives

or makes promotion to reach these objectives.

The objectives for the first year:

4 % of the market share of Hindustan Unilever & P&G , the main competitor.

2 % of the others shampoo competitors.

We expect to hit 25% of Hindustan Unilever & P&G because it is our main competitor by

converting their royal customers. With the strategy, the promotion 7 novelty of our brand we can

expect to attain lots of customers. We look forward to hit 8% of other competitors To reach this

objective we will make a lot of promotion in order to attract new clients, because we know that

the population like and

Ingredients:

Alovera , shikakai

Ammonium Lauryl Sulfate

Sodium Lauryl Sulfate solution

Citric Acid

Cocamide DEA

Cocamidopropyl betaine

Fragrance, Dye, Preservative

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Product Strategies

The specific strategies, which can be employed to develop or modify the products to targets the

rural market, can be classified as follows:

1. Small unit packing: Given the low per capita income & purchasing habits of the rural

consumers, small unit packages stand a good chance of acceptance in rural market. Single serve

packets or sachets are enormously popular in India. They allow consumers to buy only what they

need, experiment with new products, & conserve cash at the same time. This method has been

tested by products life shampoos, pickles, biscuits, Vicks cough drops in single tablets, tooth

paste, etc. Small packing stands a good chance of acceptance in rural markets. The advantage is

that the price is low and the rural consumer can easily afford it. Also the saffron Rs. 1.00 pack

has more sales as compared to the large pack. This is because it is very affordable for the lower

income group with the deepest market reach making easy access to the end user satisfying him.

The small unit packing will definitely attract a large number of rural consumers.

2. New product designs: Keeping in view the rural life style the manufacturer and the

marketing men can think in terms of new product designs. The rural product usage environment

is tough because of rough handling, rough roads & frequent power fluctuations. Thus, all these

environmental factors will be considered while developing the products meant for rural

audience.

3. Sturdy products: Sturdiness of a product is an important factor for rural consumers. The

product will be sturdy enough to stand rough handling, transportation & storage

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Pricing strategies

1. Low cost/ cheap products: This follows from the product strategy. The price can be kept low

by low unit packaging’s, shampoo sachets, this is a common strategy widely adopted by many

manufacturing and marketing concerns.

2. Refill packs / Reusable packaging: In urban areas most of the shapoo segments are available.

The containers can be put to multipurpose uses. Such measures can a significant impact in the

rural market.

For example, the rural people can efficiently reuse the plastic bottle of shampoo .

4. Large volume-low margins (Rapid or slow penetration strategy): safrron have to focus on

generating large volumes & not big profit margins on individual products. price their product at a

level which can lead to good volumes,

6. Low volume-low price strategy: This strategy of reducing prices by reducing the package

size in order to make it appear more affordable, is delivering very good results for a large

number of FMCG product categories, in the rural markets of India. In categories where

maintaining the price point is extremely critical, this strategy is delivering very good results.

7. Ensuring price compliance: Rural retailers, most of the times, charges more than the MRP.

We will ensure price compliance either through promotional campaigns, as was done by Coca

Cola, or by ensuring the availability of products at the retail outlets directly.

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Distribution Strategy

Many companies view the rural markets as great opportunity for expanding their sales but find

distribution as a major problem. Unfortunately, it is almost impossible to transplant strategies

which work successfully in urban markets onto rural markets, namely, extensive retailing and

sustained pull generation through mass media advertising.

The road blocks to reach the rural customers are:

Lack of adequate transport facilities.

Large distances between villages.

Lack of pucca roads connecting villages to nearest townships.

Lack of proper retail outlets

Lack of mass media infrastructure.

The marketers were of the opinion that the villagers would come to nearby towns and buy the

products that they want. What has been found is that if we have to serve the rural consumer we

will have to take our products to him through the channels that he is using and some innovative

ways of getting to him

The following distribution strategies formulated for the rural category.

1. Coverage of villages with 2000 and above population: Ideally, coverage of villages with up

to 2000 and above population could be the break-even point for a distribution setup. By doing so

the percentage of villages covered comes to only 10% of all the villages, but the rural population

covered will be substantial, to the extent of about 40 to 45 percent. With a distribution network

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in about 55,000 villages, which have a population of 2000 persons & above each, one can cover

about 25 crores rural consumers. This strategy is good to begin with & then subsequently,

villages with lesser populations can be added.

2. Segmentation: the number of villages in India is huge & it is not viable to contact & serve all

villages directly. Therefore, companies or distributors can carefully examine the market potential

of different villages & target the villages that can be served in a financially viable manner

through an organized distribution effort.

3. Use of co-operative societies: There are over 3 lacks co-operative societies operating in

rural areas for different purposes like marketing cooperatives, farmer’s service cooperatives and

other multipurpose cooperatives. These cooperatives have an arrangement for centralized

procurement and distribution through their respective state level federation. Such state level

federation can be motivated to procure and distribute consumables items and low value durable

items to the members to the society for serving to the rural consumers. Many of the societies

extend credit to the members for purchases.

4. Utilization of public distributory system: The PDS in the state is fairly well organized. The

revamped PDS places more emphasis on reaching remote rural areas like the hills and tribal’s.

The purpose of PDS is to make saffron shampoo to the consumers at a reasonable price

5. Utilization of multipurpose distribution centers by petroleum/oil companies: In order to

cater to the rural areas the petroleum/oil companies have evolved a concept of multipurpose

distribution centers in rural areas. In addition to petrol/diesel, lubricants, these outlets also stock

consumables agricultural inputs like fertilizers, pesticides and seeds. It is estimated that there are

about 40 such outlets in operation in the state . The rural consumer who has tractors, oil-engine

pump sets and mopeds frequent these outlets for their requirement. These outlets can be

profitably utilized for selling consumables and durable items also.

6. Distribution up to feeder markets/mandi towns: Keeping in view the hierarchy of markets

for the rural consumers, the feeder markets and mandi towns offer excellent scope for

distribution. The rural customers visit these towns at regular intervals not only for selling the

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agricultural produce but also for purchasing cloth, jewelry, hardware, radios, torch cells and

other durables and consumer products. From the feeder markets and mandi towns the stockiest or

wholesaler can arrange for distribution to the village shops in the interior places. This

distribution can be done by mopeds, cycles, bullock-carts, camelbacks etc. depending upon the

township.

7. Shandies/Haaths/Jathras/Melas: These are places where the rural consumers congregate as a

rule. While shandies/heaths are held a particular day every week, Jathras and melas are held once

or twice a year for longer durations. They are normally timed with religious festivals. Such

places attract large number of itinerant merchants. Only temporary shops come up selling goods

of all kinds. It can be beneficial for companies to organize sales of their product at such places.

Promotion can be taken, as there will be ready captive audience. For convincing the

manufacturing and marketing man with regard to the importance of these places from rural

marketing point of view a visit to such places is necessary. It is estimated that over 100 are held

in the state and the estimated attendance is about million rural consumers. Biggest fair ‘Pushkar

Mela’ is estimated to attract over 10 million people. There are 50 such big rural fairs held in

various parts of state , which attract urbanite also like ‘Mankanavillaku’ ‘Periya Kirthigai’

9. Joint distribution by Non-competing Companies: As the cost of distributing the products

in the rural market through distribution vans can be unviable for a single company, different

non-competing companies can come together to jointly operate distribution vans for the rural

market. This will enable them to share the cost of operating the van & on account of the sharing

of the cost by four or five companies; the entire operation can become financially viable for all

the players. We will coabrate with TATA and other non non competing companies

10. Personal Selling Network: It is very successful distribution channel being developed by

companies like HUL. It adds a personal touch to the marketing, as the salesmen are the resident

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of the village or community itself, making it easier to sell the product & maximise sales for the

company. We will also follow the concept

THE OLD SETUP

The historically available people & places for distribution include: - Whole seller, Retailer, Vans,

Weekly Haats, and Bazaars & Shadies.

1. Wholesalers

The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the

belief that business is speculative rather than distributive in character.

He is a trader / commodity merchant rather than a distributor and therefore tends to support a

brand during boom and withdraw support during slump.

The reason for this speculative character and dormant role of wholesalers are:-

Indian market was largely sellers market. There was no need for active sales growth.

Companies laid more emphasis or retailers in urban areas, who are very large in

number. As a result of retail based distribution was weakened.

Rural markets were neglected by many. The occurrence of retail outlets was low.

Therefore many companies were dependent on whole salers.

The current need is to activate and develop wholesaler of the adjoining market as a

distributor of products to rural retail outlets and build his loyalties to the company.

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2. Retailers

There are different kinds of retailers.

Shops within the village

Shops located on the main road and not exactly within the village

Kasba market or the tahsil market.

Village retailers have traditionally been among the most mobile of rural residents.

I. CREDIBILITY: -

He enjoys the confidence of the villagers.

His views are accepted and followed by the rural people whose awareness and

media exposure levels are low.

(- The urban retailer is not trusted.

- He is seen as a businessman with profit motto.

- His view points are evaluated with other sources of information.)

II. INFLUENCE LEADER: -

His role as influence leader is indisputable. From tender twig of neem to

washing powder retailer testimony has been vital part of the product adoption

process.

The role of urban retailer is weak.

The urban consumers have numerous sources of information.

Although retailer’s opinion is sought it may not be 100% believed and

followed.

III. BRAND PROMOTER: -

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In rural market retailers remains the deciding factor to sell particular brand.

Retailers helps in identification and selection of brands, there is less influence

of shelf displays and point of purchase promotion.

Presence of spurious brands is an ample testimony to this view.

(- The urban retailer has a limited role as a brand promoter.

- He cannot directly, recommend the brand saffron .

- He is to intelligently drive home his recommendations, as

urban consumers do not trust him completely.

- It is through shelf displays and incentive offers that he has to push the

brands.)

3. Vans

Mobile vans long since, have an important place in distribution and promotion of the

products in villages.

4. Weekly Haats, Bazaars, Shandies

The haats are the oldest outlets to purchase household goods and for trade. These markets are

very well organized with shopkeepers having pre-assigned spaces for them to sell their

wares. A typical market is in an open field with ample space for displaying all sorts of goods.

Its location changes every week. These markets have different names in different regions.

But they are strikingly similar in what they sell. It is reported that there are, in all, about

47,000 haats held throughout the country.

Media Vehicles

Through the rural markets offer big attractions to the marketers, one of the most important questions

frequently asked is “How do we reach the large rural population through different media and methods?

Mass Media Local Media Personalized Media

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Radio Haats, Melas, Fairs Direct Communication

Cinema Wall Paintings Dealers

Press Hoardings Sales Persons

TV Leaflets

Video Vans

Folk Media

Animal Parade

Transit Media

Researchers

Formal media

It includes Press and print, TV, Cinema, Radio, and Point of purchase and Outdoor

advertisement. Reach of formal media is low in rural households (Print: 18%, TV: 27%, Cinema:

30%, and Radio: 37%) and therefore the marketer has to consider the following points:

Newspapers and magazines:

English newspapers and magazines have negligible circulation in rural areas. However local

language newspapers and magazines are becoming popular among educated facilities in rural

areas. Examples: Newspapers: Eenadu in A.P., Dina Thanthi in Tamil Nadu, Punjab Kesari

in the North, Loksatta in Maharashtra and Tamil magazine Kumudam are very popular in

rural areas.

Television:

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It has made a great impact and large audience has been exposed to this medium. HLL has

been using TV to communicate with the rural masses. Lifebuoy, Lux, Nihar oil etc are some

of the products advertised via television. Regional TV channels have become very popular

especially in regional states. Examples: SUN TV is very popular even in rural areas In

Arunachal pardesh.

Radio:

Radio reaches large population in rural areas at a relatively low cost. Example: Colgate, Jyoti

Labs, Zandu Balm, Zuari industries are some of the companies using radio communication

programme. There are specific programmes for farmers like Farm and Home/Krishi Darshan in

regional languages. The farmers have a habit of listening to regional news/agricultural news in

the morning and the late evening. The advertisement has to be released during this time to get

maximum coverage in rural areas. Another advantage is that the radio commercial can be

prepared at short notice to meet the changing needs of the rural folk. Example: Release of a

pesticide ad at the time of outbreak of a pest or disease in crops.

Cinema:

About 65% of the earnings from cinema are from rural markets. Film viewing habits is high

in certain states like Arunachal Pradesh. Village theatres do roaring business during festivals

by having four shows per day. The monthly charge for showing an ad film is within Rs.500.

Local distributor or dealer who has good contacts with cinema houses in villages can easily

monitor this activity. Examples: Films on products like Vicks, Lifebuoy and SPIC fertilizers

are shown in rural cinema halls. Apart from films, Ad slides can also be screened in village

theatres.

Outdoor advertisements:

This form of media, which includes signboards, wall painting, hoarding, tree boards, bus

boards, dealer boards, product display boards etc, is cost effective in rural areas. Symbols,

pictures and colours should be used in POPs meant for rural markets so that they can easily

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identify the products. Generally rural people prefer bright colours and the marketer should

Utilize such cues.

Point of purchase:

Display of hangings, festoons and product packs in the shops will catch the attention of

prospective buyers. However a clutter of such POP materials of competing companies will

not have the desired effect and is to be avoided..

Wall paintings:

It is an effective and economical medium for communication in rural areas, since it stays there

for a long time depending upon the weather conditions. The cost of painting one square foot area

is just Rs.10. Retailers welcome painting of their shops so that the shop will look better. Walls

of farm houses, shops and schools are ideal places for painting and the company need not have to

pay any rent for the same. The walls have to be painted at least one or two feet from ground

level. It is better to take permission of the owner. Very often the owner takes responsibility for

taking care of the wall painting. Painting to be avoided during election time and rainy season.

The matter should be in the form of pictures, slogans for catching the attention of people.

Companies marketing TV, fans, branded coffee/tea, toothpaste, pesticides, fertilizers etc. use

wall painting as promotion medium in rural areas.

Tree boards:

These are painted boards of about two square feet in dimension having the picture or name or

slogan of the product painted on it. The cost of such a painted board is about Rs.80. These boards

are fixed to the trees on both sides of the village road at a height of about 10 feet from ground

level. These boards attract the attention of slow moving vehicles like cycles, bullock carts and

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tractors and people walking on the road. Considering the poor condition of roads, even the buses

move at slow speed through village road. Fertilizer and pesticide companies in rural areas

extensively use tree boards. These are low priced promotion items and can be used by consumer

goods companies too.

Informal/Rural specific media

These media with effective reach and personalized communication will help in realizing the

promotional objectives. Companies to suit the specific requirements of rural communication

are using a variety of such media effectively and some of the more important media and

methods are given below.

Farm-to-Farm/House-to-House visit:

Rural people prefer face-to-face communication and farm visits facilitate two-way

communication. The advantage is that the sales person can understand the needs and wants of

the rural customer by directly discussing with him and answer his queries on products and

services. Potential customers in the village are identified and the company’s/distributor’s

representative makes farm-to-farm visits and highlight the benefits of the products. The

person carries with him literature in local language and also samples of shampoo . The

person does not sell the product but only promotes the use of the product. Very often the

local dealer also joins the representative in making farm-to-farm visits. The dealer clarifies

the terms and conditions of sale and also makes independent follow up visits for securing

orders.

Group meeting:

Group meetings of rural customers as well as prospects are an important part of interpersonal

media. The company is able to pass on the message regarding benefits of the products to a large

number of customers through such meetings. Group meeting of key customers can be conducted

by safrron. The bankers visit an identified village, get the village people in a common place and

explain the various schemes to the villagers. .

Opinion leaders:

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Villagers place more emphasis on the experience of others who have used a

product/brand to make purchase decision. Opinion leader is a person who is considered to be

knowledgeable and is consulted by others and his advice is normally followed. Such opinion

leaders could be big landlords, bank official, panchayath-president, teachers, extension workers

etc. Examples: a) we use bankers as opinion leaders for our product.

The Melas:

Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may be held

only for a day or may extend over a week. Many companies have come out with creative ideas

for participating in such melas. Examples: a I will promote it through melas. b)

The Haats:

Traditionally on certain days of week, both the sellers and buyers meet in the village to buy and

sell goods and services. These are the haats that are being held regularly in all rural areas. The

sellers arrive in the morning in the haat and remain till late in the evening. Next day they move to

another haat. The reason being that in villages the wages are paid on weekly basis and haat is

conducted on the day when the villages get their wages. For the marketer, the haat can be an

ideal platform for advertising and selling of goods. By participating in haats and melas, the

company can not only promote and sell the products but also understand the shared values,

beliefs and perceptions of rural customers that influence his buying behaviour.

Folk dances:

These are well-appreciated form of entertainment available to the village people. The folk

dance “Kuravan Kurathi” is popular in Arunachal pardesh. The troupe consists of dancers,

drummers and musicians and they move in a well-decorated van from one village to another

village singing and dancing. In a day the troupe covers about 8-10 villages. As soon as the

van reaches a village, film songs are played to attract the attention of the villages. This is

followed by folk dances. Mike announcement is made about the company’s products and

leaflets are distributed. After the dance programme, queries, if any, about the products are

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answered by the sales person. Folk dance programme costs about Rs.5000 per day and

therefore these programmes are conducted during the peak season in selected villages.

Audio Visual Publicity Vans (AVP Vans):

AV unit is one of the effective tools for rural communication. The van is a mobile promotion

station having facilities for screening films slides and mike publicity. The sales person makes a

brief talk about situation in the village, the products and the benefits. The ad film is screened

along with some popular film shots and this continues for about 30 minutes. At the end of the

film show, he distributes handbills and answers queries of the customers. The whole operation

takes about 1-2 hours depending upon the products under promotion, number of participants in

the meeting and time taken for question and answers. The vans move to the next village for the

second show. The cost of running a fully equipped AVP unit is about Rs.4000 per day and AVP

van operation has to be considered as an investment for business development in rural areas.

Example: Companies such as HLL, Colgate, and Phillips have made effective use of AVP vans

for popularizing their products in rural areas.

Product display contests:

Package is an integral part of the product. Its main purpose is to protect the product during

transit, to preserve the quality and to avoid any loss in quality and quantity. The main purpose of

this contest is to remind the customer to buy the product as soon as he enters the shop. Another

objective is to influence the dealer to stock the product and support the company in increasing

the sales. The display contest has to be announced well in advance and promotional materials to

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be distributed to all the selected dealers in a geographical area. Prizes for best displays are

announced to motivate the dealers; the contest lasts for about a month. A well-planned product

display contest not only increases the involvement of dealers in the company’s products but also

increases the sales during the contest period. This is used for promoting consumer goods such as

shampoos, soaps and toothpaste.

Field demonstration:

This is based on the extension principle “seeing is believing” and is one of the most effective

methods to show the superiority of the company’s products to the customers. A progressive

farmer who is an opinion leader is selected and the demonstration is conducted in his field in the

presence of a group of farmers in the village. The farmers observe the results in the field and the

local dealer calls on them in their farms and persuades them to buy the particular brand of

pesticide or fertilizer. Examples: a) by applying shampoo on school boy a and showing the

rural markets.

Life-style marketing:

Each rural market segment has certain special features i.e. they share common life-style traits.

They include village sports, religious events, prominent personalities and role models. Examples:

Texduring summer festivals in villages and Consumer goods saffron sponsoring Kabaddi.

Choosing media vehicles

The choice of different media vehicles for any market is based on an analysis of the standard

features like: reach, frequency, cost & availability. Depending on the factor of reach &

frequency, the different media can be classified into the following categories. This categorization

can help the marketer to make a decision about which type of media would be more suitable to

the product & the organization.

(a) High reach High frequency

Jeep based advertising

Wall painting

Bus stand & bus panels

Haats

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Hoardings

Postal branding

(b) Low reach High frequency

Co-operative notice board

Shop front painting

Tin plating – house

Dealer boards

Village boards

Well tiles

Calendars/labels

(c) High reach Low frequency

Van based advertising

Melas

Direct to home

Folklore group

Exhibitions/created events

(d) Low reach Low frequency

Tin painting – tree/shops

Leaflets

Posters & banners

Streamers

Danglers

Financial Projection of shampoo

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herbal shampoo-market plan

Documents