Marketing Innovations Observed in Rural

India: A Case Study Approach

Paper presentation

Submitted ByP.S.NEEMISH

Objectives of the Research• The research aims at identifying replicable innovative practices in

the rural market.

• These can be adopted by new or existing marketers to generate high revenue and to help the customers as well.

IntroductionRural India is moving away from poverty to prosperity. It is the era of rural boom and every marketer is seeking an opportunity in rural market. Due to high competition in urban, companies are going rural to get an advantage. In last decade rural didn’t have choice to select products and have to buy fake brands because of poor literacy rates as well.

Now things are changed in Rural market. Rural market in new millennium is not any more rural, but semi urban. The spending of rural population have increased in FMCG products. They have changed buying behaviors from loose packaging to packaged products, their own choices of brand. Literacy level in the rural has increased from 59 % in 2001 to 69 % in 2011.

Rural MarketingMNC are now concentrating on rural market for growth of their business. Rural India is and unexplored market for them. They are treating urban and rural customers as same. The rural is quality conscious today. So companies can’t cheat the rural customer by providing cheap quality items.

These companies are taking a extra pain to reach rural market because of low transport facilities. But there is a threat of fake products in the market. When companies launch products with the support and involvement of rural people, the product tends to capture greater attention among rural minds.

Research MethodologyThe Methodology follows a case study research. The researchers has selected 20 companies which are operating in rural central Kerala, based on convenience sampling and observational research. The practices of these companies were analyzed and were studied. The companies were ranked based on their innovative marketing techniques using Delphi technique.

DATA ANALYSIS AND INTERPRETATION1. Lexi Soap

2. Parachute oil

3. Airtel

4. Oreo Biscuit

5. Shakti Ghee

6. Ida yam Sesame Oil

7. Khushi Mango

8. Elite Breads

9. Elite Maida

10. Krystal salt

11. Aditya Birla More

12. Dabur Amla Hair Oil

13. Fairever Fairness Cream

14. Mortein Coil

15. OK Soap

16. Trivenisuper market

17. Western Union Money Transfer

18. Akshaya Centre

19. Maxo Soft & Safe Wipes

20. Nirapara Rice

What is Delphi TechniqueThe Delphi method is a structured communication technique, originally developed as a systematic, interactive forecasting method which relies on a panel of experts. The experts answer questionnaires in two or more rounds. After each round, a facilitator provides an anonymous summary of the experts’ forecasts from the previous round as well as the reasons they provided for their judgments.

Thus, experts are encouraged to revise their earlier answers in light of the replies of other members of their panel. It is believed that during this process the range of the answers will decrease and the group will converge towards the "correct" answer. Finally, the process is stopped after a pre-defined stop criterion (e.g. number of rounds, achievement of consensus, stability of results) and the mean or median scores of the final rounds determine the results.

Members of Delphi Technique1. G M Marketing (20 years of experience) from a retail company.

2. Shop Owner (35 years operating grocery shops).

3. Shop Manager ( 10 years operating a store).

4. Academicians (20 years experience in teaching).

5. Distributer (15 years as a distributor of retail grocery items).

6. Wholesaler (20 years of retail products).

7. Stockist (12 years grocery items and FMCG products).

Then the 5 products which were ranked top were discussed with academicians and practitioners to find the best practices. In depth interviews were conducted by the researchers among the managers of the selected 5 companies. The final evaluation was done on this data and innovative practices were identified. Literature review on innovative practices in the rural was also combined to generate the best practices.

LITERATURE REVIEW

PRODUCT 1PRODUCT 2PRODUCT 3PRODUCT 4PRODUCT 5PRODUCT 6PRODUCT 7PRODUCT 8PRODUCT 9

PRODUCT 10PRODUCT 11PRODUCT 12PRODUCT 13PRODUCT 14PRODUCT 15PRODUCT 16PRODUCT 17PRODUCT 18PRODUCT 19PRODUCT 20

DELPHI TECHNIQUE

PRODUCT 1PRODUCT 2PRODUCT 3PRODUCT 4PRODUCT 5

DELPHI TECHNIQUE

IN DEPTH REVIEWS

INNOVATIVE PRACTISES END

CASES IN WHICH INNOVATIVE MARKETING PRACTISES WERE OBSERVED

CASES INDUSTRY

1.Parachute Oil FMCG

2.Oreo Biscuit Food Processing

3. Airtel Telecommunication

4.Triveni super market Retail

5.Elite FMCG

Parachute OilParachute, the flagship brand of Marico limited, is a premium edible grade coconut oil in this category. The company focuses on creating huge market reach through it’s unparalleled innovative packing and promotion. The small sachet Parachute oil is having a high demand because of its low cost affordability and attractiveness in packing.

The tamper-proof Parachute Coconut Oil (promoted as “with shudhi seal”) and its demonstration in rural areas positively contributed in fighting against duplicate products in rural markets. In spite of its TV, Print, Digital and outdoor advertisements, Parachute also uses van campaigns and Haats in rural areas to promote the brand.

Oreo BiscuitsKraft Foods introduced its sandwich cookie ‘Oreo’ under the title of Cadbury. Its tagline ‘World’s No.1 Biscuit’ provides a premium feel for its customers, mainly the youngsters. The innovations it depict in its packaging and more store visibility helps the company to take a bigger bite of the Indian biscuit industry.

The advertisement of Oreo emphasizing the parent-child relationship among Indian families evolved an ‘Oreo togetherness pledge’ there by making parents promising to spend more time with children in spite of their busy schedule. The availability of Oreo at affordable prices in rural areas initiated more buying by students.

AirtelThe rural marketing strategies are giving a strong rural customer basis for Airtel. Communication based on affordability and scalable networks are the key factors which Airtel is focusing. Vans are used for covering the rural areas with staff who educate locals about mobile services and usage. They are creating special advertisement for rural with characters which resembles the rural so that the rural people can relate easily with their services.

Bharti Airtel Service Centers has set up in rural villages for receiving consumer queries, complaints for sales and distribution points. These centers employ local people. Airtel also employs the “matchbox strategy” making available the recharge cards where ever match boxes could be found.

Triveni SupermarketTriveni is a chain of retail supermarkets operating in the cooperative sector of Kerala. The floating boat is the new initiative in the rural market under the leadership of Ex. State cooperative minister G. Sudhakaran. This boat provides everything the consumer wants from TV to FMCG products at subsidized rates. There are many villages in Kerala with low transportation facilities.

There are many villages surrounded by water, so it is painful for the customer to get goods. Here comes the importance of the floating super market. The customers are getting a chance to know many of the products and super market will reach where consumer is. The timings of the boat will be announced in advance. This type of innovation has been done through road as well.

Elite FoodsElite Natural Products Pvt. Ltd introduced wheat powder, Maida and sooji into the market focusing both the rural and the urban. The company has the same quality for both rural and urban. Customers are ready to buy these products due to the maintenance of good quality.

The package size for different customers according to their need is also another factor which attract customers. Elite also focuses on selling elite breads to the rural market. The different varieties of bread are having a high demand in rural market. The attractive displays of the product is making possibilities of impulse buying.

Conclusion• Strengthen the Distribution with Highly differentiated strategy

In case discussed of Airtel, it has been found that they have been using a highly differentiated strategy called the match box strategy to provide its service to nook and cranny of remote village.

• Facilitate impulsive buying through Attractive displays and available on shelf.

Rural customers are highly receptive to attractive displays. Elite makes use of this technique for expanding its rural marketing shares. Elite makes sure that their product is available for repeat purchase all the time. otherwise there is a chance for brand changing.

• “Reach” the Customer if they can’t Reach You

Reaching a customer is important as Triveni supermarket does. If the area is devoid of a distribution point, create one and serve the customers. This blue ocean strategy is the working wonders for the floating shop.

• Package Sizes to confirm Customers Needs

Reach customers through packages which confirm their needs and the money they have for spending for that item. Rural customers would not want to store items for future use. They would like to buy items for only a shorter duration. They would use it completely and then buy replenishments only after completely exhausting the available items for them.

• Make the Products and Services Affordable for the Customers

Parachute oil makes it affordable for its consumers. Even though marketers and economists talks about the availability of additional disposable income for the rural the psychology of rural people is to be stingy in their spending. They usually find “value for money” in products when the quality is high and the price is less.

References

• Carden, A. ”The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits”, C.K. Prahalad Economic Affairs, Vol 28

• Iyer, V. “Rural Marketing”, SIES Journal of Management.

• Joshi, P. “Rural India in the New Millennium.

• Ajith Thomas, G.R. Sreelakshmi. Marketing Innovations Observed in Rural India: A Case Study Approach