2. Problem Identification
Lack of reach and not covering the interior village
market
Van towns are not being covered on regular
frequencies
No stockist/ distributor appointed by WC in the
market
3. Objective
To calculate the value of expected sales
To design the coverage plan of target market
To develop a promotion strategy of the brand in
the rural area
5. Promotional Strategy
We would do promotion mainly through two
methods:
Advertising
Sales promotion.
Advertising:
1. Radio - Using ear-catching jingles and
attractive liners that spreads awareness about
the brand among people.
2. Wall Paintings.
3. Nukad Nataks
6. Sales promotion:
Sales promotions for consumers
Trade promotion for retailers/ stockists.
Consumers:
1. Attractive posters will display the attractive pack
and price of the product to catch attention of the
consumers.
2. Free trials through small sachets that can be
distributed to them by retailers initially.
3. Promotional pricing can be offered.
8. Conclusion
The upcoming village markets will be covered through both the
channels; through vans as well as stockists. This coverage will
depend on the no. of retailers and villages in the town.
Some towns will be covered through only stockists, where there
is not enough no. of retailers to be covered by vans.
Cost of operation of a van per day= 125km * Rs3.75/km= Rs
468.75. Cost of operation of a van per month = 468.75*25 = Rs.
11718.75.Thus where the no. of villages to be covered by vans
are significantly less, engaging vans would not be feasible.
Catering to them through stockists will be cost- effective and
convenient.
9. Conclusion…
This excludes Chandigarh, Dadar & Nagar Haveli and Andaman &
Nicobar Islands, which will be catered by the nearest town stockists as
their market potential is very low.
By knowing the margins of retailers and distributors, we can calculate
the profit made by the company to sell the products through this
channel. Also calculating the cost of vans and retailer margin, the profit
through the other channel can also be calculated. This will give us a
fair idea of expected profit in the rural market before starting the
venture.