Latest News in Rural Marketing (Aug-Oct 2013)

1. Rural Marketing
DEBOLEENA PANJA
12PGP069

2. P&G
To gain insights, P&G executive witnessed
a man shave while sitting barefoot on the
floor in a tiny hut, could use to develop a
new razor for India.
• Took 18 months to develop Gillette
Guard, a low-cost razor designed for
India and other emerging markets.
• With 9 percent market share, Guard has
grown share faster than any other P&G
brand in India
• Gillette's market share for razors and
blades in India has grown to 49.1 % from
37.3 % in 2007,according to Euromonitor.
• P&G has doubled the percentage of its
roughly $20 billion in annual revenue
coming from emerging markets since
2000 to about 40 percent.
Source:
http://timesofindia.indiatimes.com/business/international-business/Cheap-razor-made-after-PG-watches-Indiansshave/articleshow/23604115.cms
(Oct 6, 2013)
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Indian Institute of Management Raipur
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3. UNINOR
Aims at taking its services to small
towns and villages (despite of focus
on improving and consolidating
their urban business)
• Added 321 additional network
sites in rural Gujarat as part of its
foray into Gujarat’s rural markets
• Campaign’s name is "Gaam No
Faydo, Uninor No Vaydo"
(Benefits for villages, Uninor's
promise)
• 22 percent of company's
revenues in the state are from
rural markets
• Expanding its presence in rural
markets by opening Uninor
Express stores
Source:
http://articles.economictimes.indiatimes.com/2013-09-10/news/41937709_1_rural-markets-gujarat-malik
(Sept 10, 2013)
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4. LG ELECTRONICS
Tap rural market as rural market is still
growing at 10-14% whereas the urban
markets are either marginally de-growing
or are flat.
• Is aggressively targeting rural areas
and plans to launch Smartphones and
its flagship flat-panel television sets in
these markets for the festive season.
• Expects consumers in rural India will
upgrade their purchases.
• Rural markets are growing 7-8% more
than urban markets for LG India and
account for 15-18% of overall sales.
Source:
http://articles.economictimes.indiatimes.com/2013-08-23/news/41440802_1_maruti-suzuki-india-honda-motorcycle-scooter-india-india-inc
(Aug 23, 2013)
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Indian Institute of Management Raipur
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5. AIRTEL
Bharti Airtel has huge plan for rural
marketing.
• Has started an interactive, recorded
voice service to provide agriculturerelated information.
• A lot of customers in these markets will
experience Internet for the first time
over a mobile device, and services like
m-commerce could be a game-changer.
• Top three telecom companies said
nearly 70% of the firm's current capital
investment is going into rural areas.
Source:
http://articles.economictimes.indiatimes.com/2013-08-23/news/41440802_1_maruti-suzuki-india-honda-motorcycle-scooterindia-india-inc
(Aug 23, 2013)
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Indian Institute of Management Raipur
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6. DCM SHRIRAM CONSOLIDATED LTD.
Hariyali Kisaan Bazaar is a micro level
retailing effort by DSCL.
Aim at providing end-to-end ground
level support to the Indian farmer to
improve his profitability and
productivity.
Source:
• Widening losses prompted DSCL to
rethink its rural strategy.
• Initially, it decided to go slow on
expansion. When that didn't work, it
shut down some stores. Eventually, it
made a total exit last fiscal year.
• Now, it sells only fuel products sourced
from Bharat Petroleum at 37 locations in
the countryside.
• The upside is that the net loss from the
business shrank to Rs 35 crore. The
company hopes to make a profit from
the venture in the current fiscal year.
http://businesstoday.intoday.in/story/cracking-the-rural-market-organised-retail-chains/1/196804.html
(Aug 4, 2013)
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Indian Institute of Management Raipur
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7. TATA AIG

Tata AIG Gen Insurance wins best claims • A variety of Rural Insurance products covering
service company of 2012
risks of this nature.
• Take care of the risks be it their automobiles,
health, property or livestock.
• To create awareness about the launch, it
created special films aimed at increasing
awareness of the importance of insurance in
the rural community
Source: http://www.tataaiginsurance.in/ruralinsurance/AboutRural/
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8. TATA MOTORS
• Helped sell 1,500 more small
commercial vehicles per month in six
states, and crossed 2,000 units in Nov
2012.

• NEEV's network expansion approach
comprised increasing the “feet on the
street” through Tata Gramin Mitras,
third-party outlets called Tata Kisan
Mitra and an informal network of key
local influencers.
• Required lower investment and less lead
time to activate the network, and
Source:
deeper reach than the traditional
http://www.tata.com/article.aspx?artid=MVtS880UKKU= outlets.

Tata Motors launched its rural initiative
Project NEEV in 2010, focusing on rural
areas with a population of less than
50,000.
Sales through NEEV account for 8 per
cent of the company’s national sales
volume of small CVs.
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Indian Institute of Management Raipur
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9. YAMAHA

Tap rural market by launching more models
at affordable price.
• Announced that India will be its biggest market
by 2016.
• Plans to strengthen presence in Tier- III cities.
• Yamaha Crux, well accepted product.
• Installed annual capacity of 6 Lakh units at its 2
manufacturing units at Surajpur in UP and
Faridabad in Haryana.
• Plans to further strengthen production to 1
million units by this year.
Source:
http://newindianexpress.com/business/news/Yamaha-keen-on-tapping-rural-markets-in-India-for-largersales/2013/05/28/article1608958.ece
http://articles.economictimes.indiatimes.com/2011-09-18/news/30172114_1_rural-markets-market-sharepremium-segment
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Indian Institute of Management Raipur
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10. MARICO
• Introducing more affordable brands in
Anticipating a slowdown in rural demand,
Marico has decided to launch male deodorant the rural markets is going to be the
way forward to sustain growth levels
brand ‘Zatak’ in the rural market.
there.
• Has got a mass market pricing in the
male deo category.
Source:
http://www.thehindubusinessline.com/marketing/marico-set-tospray-zatak-deo-in-rural-markets/article3738374.ece
11/9/2013
Indian Institute of Management Raipur
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11. GODREJ
• After Future Group bought a majority stake
Has 45 outlets in Punjab and Gujarat.
in the venture in 2008, it closed some
On average, 300 people visit the store every
company-owned outlets and expanded
day and buy products worth Rs 400-500 each.
through franchisees.
• Entered the cash-and-carry business to sell
to wholesalers and Aadhaar outlets in early
2012.
• Expand mostly through franchisees as they
are more capable of maintaining customer
relationships as they understand the
consumption pattern better.
• Aadhaar has also scaled down the share of
farm inputs in overall sales.
• Aadhaar is looking to break even at the
operating level by the end of this fiscal year.
Source:
http://businesstoday.intoday.in/story/cracking-the-rural-market-organised-retail-chains/1/196804.html
(Aug 4, 2013)
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12. HDFC
HDFC Bank aims to grow share of rural
business to 50% in five years.
The bank is targeting to generate a
business of about Rs 800 crore from this
initiative in about three to five years
Committed to making one crore women
economically independent.
• Only 15 % of their income comes from
semi urban and rural areas even though
56% distribution outlets are there.
• Provides occupational training, financial
literacy, credit counselling, livelihood
finance and market linkages to women
under the Bank's Sustainable Livelihood
Initiative (SLI) programme .
• the bank is providing loans in the range of
Rs 12,000-15,000 per year with an interest
rate of 20-25 per cent to the women under
the SLI.
• The SLI outreach of the bank is about 7,000
villages across 24 states in the country.
Source:
http://timesofindia.indiatimes.com/business/india-business/HDFC-Bank-aims-to-grow-share-of-rural-business-to50-in-five-years/articleshow/23531052.cms
(Oct 4, 2013)
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13. HYUNDAI MOTOR INDIA LTD.
Hyundai to add dealers, more focus on
rural India
• Increase the number of outlets in rural
areas from 270 to 350 and dealerships from
373 to 385 across India by December 2013.
• The number of service centres would be
increased from 950 to 1000 in the next four
months after the launch of Grand i10.
• The company’s rural sales had increased
from 15% two years ago to 19% in the first 8
months of 2013.
• Depreciation of the Indian currency
presented an opportunity to increase
exports.
Source:
http://businesstoday.intoday.in/story/cracking-the-rural-market-organised-retail-chains/1/196804.html
(Aug 4, 2013)
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Indian Institute of Management Raipur
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14. BAJAJ ELECTRICAL LIMITED
Rural region has not seen slowdown
•
because of good monsoons and this being
election year the farmers have the
minimum support prices. In fact there has
been demand for their products like irons, •
mixers, toasters, fans etc, from rural areas.
Lighting segment has expected growth of
18-20 % for the year and for consumer
durable in spite of the slowdown, expected
growth 20-22 percent growth.
Against Rs 3,400 crore growth last year,
expected growth for this year is more than
Rs 4,200 crore.
• Fans business have improved but the
project business which saw a major hit in
the last one and a half years, is now coming
back in place.
Source:
http://www.moneycontrol.com/news/business/see-no-price-hikefy14bajaj-electricals_955649.html
(Oct 1, 2013)
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15. GCPL
GCPL has initiated ‘Pragati’ wholesaler’s •
Trends: Mr. Kataria, engagement programme to feed its
COO of S&M, GCPL: products across village to engage with a
“Rural markets are fresh set of wholesalers to enhance its
not just about
indirect reach across villages.
having smaller
•
packs and 10-rupee
sachets.
Penetration of TV
•
has led to
consumers there
demanding larger
pack sizes and
•
preferring premium
products.”
•
A pilot has been started in villages of around
3,000 people through ‘Pragati’. It will engage
15,000 wholesale sellers backed by technology
to indirectly reach out to almost every nook and
corner of the country.
GCPL directly covers 50,000 villages. With
Pragati, it will indirectly reach out to an
additional 50,000 villages.
Push brands like Good Knight and Hit in these
markets as penetration of household insecticide
is low.
Godrej No.1 is at present the largest selling soap
brand in rural markets.
This quarter rural growth has been at 28 % while
urban markets are growing at 18 %.
Source:
http://www.thehindubusinessline.com/companies/gcpl-expands-rural-footprint-with-wholesaler-programme/article5193581.ece
11/9/2013 (Oct 2, 2013)
Indian Institute of Management Raipur
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16. THANK YOU