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Introduction

 Suresh Venkataraman a
  successful marketer in Southern
  part of India.
 He was Fascinated by the power
  of consumer products in “ Rural
  Market”.
 He decided to launch a new
  cosmetic product with a brand
  named “Super Shampoo”
 He wanted to make this brand
  successful but with limited fund.
FMCG Facts In India

Household Care     Laundry, Soaps &
                   detergents, floor
                   cleaners etc.



Personal Care      Oral care(tooth
                   paste/tooth powder
                   & tooth brushes),
                   Hair Care(hair oil,
                   Shampoo)etc.

Food & Beverages   Cereals, Bakery
                   products, tea,
                   coffee, dairy
                   products.



                               Source: www.ibef.org
Bharat Vs India

                                            Emerging INDIA
 Mission 101.1                             Income Per Year          Households (in
                                                                     Millions)
 Target low to reach on top.               Less than Rs             101.1
 Still deprived of luxury                  90,000
  goods.                                    Rs 90,000-Rs             91.3
                                            200,000
 First “BHARAT” then
                                            Rs 200,000-Rs Rs         10.8
  “INDIA”.                                  500,000
 Want less for more.                       Rs 500,000-Rs            2.4
                                            1,000,000
                                            More than Rs             1.2
                                            1,000,000

             Source: "The Marketing Whitebook," BusinessWorld, 2007-08
Power of “S”

 Invention of sachets
  “revolutionized “ the
FMCG market.
 It opened B2C untapped
  market in rural areas.
 Unaffordable products
  became affordable for
  common people.
 Luxury comes in “Sachets”.
 Reduced overall cost.
Market Leader In Hair Care

       Clinic All       Brands Used                Other
        Clear Pantene                               1%
Sunsilk 3%        1%
 3%




                 Chik                Clinic Plus
                 31%                    39%




                          Head &
                          Shoulder
                            22%
Affecting Factors

              POLITICAL
1. Transportation and infrastructure             ECONOMICAL
development in rural areas helps in
distribution network.
                                       1. The FMCG sector is a 4th largest
                                       sector of Indian
2. SEZ policies in rural
areas



               SOCIAL
                              PEST
1. Rural employment
                                                TECHNOLOGICAL
2. Volume-driven growth in rural
market.                                1. Technology has been simplified and
                                              available in the industry.
3. Major young population can
increase revenue .                        2. Foreign players helps in high
                                             technological development.
Analysis

           STRENGHTS                                WEAKNESS
       1. Low operational costs               1. Lower scope of investing in
                                          technology and achieving economies of
2. Established distribution networks in                   scale.
     both urban and rural areas.                   2. Low exports levels
 3. Presence of well-known brands in             3. Counterfeit Products.
             FMCG sector.


                              SWOT
         OPPORTUNITIES
      1. Untapped rural market                         THREATS
        2. Rising income levels               1. Slowdown in rural demand
     3. Large domestic market-.              2. Tax and regulatory structure
  4. High consumer goods spending
Analysis of 4P’s

Product         Price


 Place        Promotion


     Packaging
WHY SUPER Shampoo?

          Product                           Price
 Super shampoo will be           1Rs shampoo to target lower
  based on “Shikakai”.             income group.
 Characteristics of producing    “More for Less” Strategy.
  more foam.                      50% more for 1Rs.
 Jasmine Essence                 Competitive Price
                                   comparing with other
                                   brands.
Continue…..

            Place                        Promotion
 Untapped “rural market”.      “Super” the name itself.
 160million households.        Retailers are the biggest
 Major player of economic       promoters
  growth.                       Following “Word-Of-
 Business of around US$ 425     Mouth” Strategy.
  million.                      Indirect Advertisement by
                                 others.
5th P- Packaging


 Costly bottles.
 Help in reducing cost.
 Attractive Packaging.
 Easy recognition.
 Easy to carry & transport.
Conclusion

          “Value for Money”
           proposition
Success   Supported by
Super
           distribution penetration
Shampoo   “Word-of Mouth”
Sachet     publicity.
          More for less strategy.
          “Win-Win” situation.
Thank You

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Marketing Rural FMCG with Limited Funds

  • 2. Introduction  Suresh Venkataraman a successful marketer in Southern part of India.  He was Fascinated by the power of consumer products in “ Rural Market”.  He decided to launch a new cosmetic product with a brand named “Super Shampoo”  He wanted to make this brand successful but with limited fund.
  • 3. FMCG Facts In India Household Care Laundry, Soaps & detergents, floor cleaners etc. Personal Care Oral care(tooth paste/tooth powder & tooth brushes), Hair Care(hair oil, Shampoo)etc. Food & Beverages Cereals, Bakery products, tea, coffee, dairy products. Source: www.ibef.org
  • 4. Bharat Vs India Emerging INDIA  Mission 101.1 Income Per Year Households (in Millions)  Target low to reach on top. Less than Rs 101.1  Still deprived of luxury 90,000 goods. Rs 90,000-Rs 91.3 200,000  First “BHARAT” then Rs 200,000-Rs Rs 10.8 “INDIA”. 500,000  Want less for more. Rs 500,000-Rs 2.4 1,000,000 More than Rs 1.2 1,000,000 Source: "The Marketing Whitebook," BusinessWorld, 2007-08
  • 5. Power of “S”  Invention of sachets “revolutionized “ the FMCG market.  It opened B2C untapped market in rural areas.  Unaffordable products became affordable for common people.  Luxury comes in “Sachets”.  Reduced overall cost.
  • 6. Market Leader In Hair Care Clinic All Brands Used Other Clear Pantene 1% Sunsilk 3% 1% 3% Chik Clinic Plus 31% 39% Head & Shoulder 22%
  • 7. Affecting Factors POLITICAL 1. Transportation and infrastructure ECONOMICAL development in rural areas helps in distribution network. 1. The FMCG sector is a 4th largest sector of Indian 2. SEZ policies in rural areas SOCIAL PEST 1. Rural employment TECHNOLOGICAL 2. Volume-driven growth in rural market. 1. Technology has been simplified and available in the industry. 3. Major young population can increase revenue . 2. Foreign players helps in high technological development.
  • 8. Analysis STRENGHTS WEAKNESS 1. Low operational costs 1. Lower scope of investing in technology and achieving economies of 2. Established distribution networks in scale. both urban and rural areas. 2. Low exports levels 3. Presence of well-known brands in 3. Counterfeit Products. FMCG sector. SWOT OPPORTUNITIES 1. Untapped rural market THREATS 2. Rising income levels 1. Slowdown in rural demand 3. Large domestic market-. 2. Tax and regulatory structure 4. High consumer goods spending
  • 9. Analysis of 4P’s Product Price Place Promotion Packaging
  • 10. WHY SUPER Shampoo? Product Price  Super shampoo will be  1Rs shampoo to target lower based on “Shikakai”. income group.  Characteristics of producing  “More for Less” Strategy. more foam.  50% more for 1Rs.  Jasmine Essence  Competitive Price comparing with other brands.
  • 11. Continue….. Place Promotion  Untapped “rural market”.  “Super” the name itself.  160million households.  Retailers are the biggest  Major player of economic promoters growth.  Following “Word-Of-  Business of around US$ 425 Mouth” Strategy. million.  Indirect Advertisement by others.
  • 12. 5th P- Packaging  Costly bottles.  Help in reducing cost.  Attractive Packaging.  Easy recognition.  Easy to carry & transport.
  • 13. Conclusion “Value for Money” proposition Success Supported by Super distribution penetration Shampoo “Word-of Mouth” Sachet publicity. More for less strategy. “Win-Win” situation.