A new strategy for an existing product in rural areas of Maharashtra. Product strategy, pricing strategy, distribution strategy and promotion strategy based on culture, income and mindset of people belonging to rural areas of Maharashtra. The product is known as "Green Chulha" which is to improve cooking conditions in the villages.
2. FLOW OF CONTENT
Business Strategy
Reasons To Go Rural
Our Product: Logo, Tagline, Demonstration, Features, USP
Why Green Chulha?
First Market- Villages Of Maharashtra
Our Business Strategy: Product Strategy
Pricing Strategy
Distribution Strategy
Promotion Strategy
Further Plans: New Variants, Expansion
Conclusion
3. An eminent personality once asked a gathering- If
you see a woman in a village milking a cow, do you
see an opportunity?
Most did not reply and the ones who
did reply, replied in the negative. But
that is exactly where Dr. Varghese
Kurien saw an opportunity and it
gave birth to one of the most
successful organizations of India
- AMUL
4. OUR BUSINESS STRATEGY: GOING RURAL
Large consuming class with 41% of India’s middle class and
58% of total disposable income.
Opportunities for new entrants as compared to urban
population.
Growing at about two time faster pace then urban
markets.
Improve quality of life
5. REASONS TO GO RURAL
The large number of consumers
Largely untapped markets
Market size
Increase in income; disposable income
Willingness to try new products
No effects of slow down on rural markets
7. OUR PRODUCT
Product: Green Chulha
Tagline:
Ab khana banao pyar se
Slogan:
Chulha lagao mazedaar khana
banao!
Ab khana banao
pyar se!
DEMO
8. FEATURES OF GREEN CHULHA
Steel body
Loading capacity- 30 kgs
Protruding flame protection
cover
Easy grab handles
Easy pull grate with ash scraper
Leg tripod for stability and airflow
No maintenance or cleaning
Less space required
USP of our product: light weight, easy to use and fuel efficient
9. WHY GREEN CHULHA?
Drawbacks of traditional chulhas:
• Immovable
Did you know?
150 million households in India cook on firewood
1.6 million people die annually due to indoor air
pollution caused by firewood based cooking
Green Chulha mitigates 2 tonnes of CO2e per stove per
annum saving up to 8kgs of wood weekly
• Emission of smoke
Traditional Chulha
• Less efficient
• Over consumption of fuel
• Difficult to start fire
• 70% of India still cooks on traditional
chulhas
Green Chulha
10. WHY GREEN CHULHA?
Save 70% fuel cost
Suited for cowdung, agrowaste,
wood, charcoal
Reduced cooking time
Minimize harmful emissions
Convenient cooking
Provides comfort and portability
Efficient for all kinds of cooking
Less wood consumption
Time saving
Characteris
tic
Green
Chulha
Traditional
Mud Chulha
Thermal
Efficiency
32.098
10
CO/CO2
Ratio
0.0265
0.5-2.5
Burning Rate
0.85
1.5-2.0
11. FIRST SOLD IN RURAL AREAS OF
MAHARASHTRA
Maharashtra is one of the fastest developing states in India in terms of technology.
Bounded by tradition, culture, religion & community.
• 60% of rural income is from
Agriculture
• More than 50% rural households
have monthly income < Rs 25,000
• In recent years, 70% rural households have started saving/investing
their income
• High acceptance of new technology.
12. FIRST SOLD IN RURAL AREAS OF
MAHARASHTRA
• Rural Maharastrians more often purchase
in small quantity.
• Quality matters but value for money is of
prime importance
• Large untapped market- good
opportunity for new entrants.
Number of villages in Maharashtra
13. OUR BUSINESS MODEL
Based on 4 A’s approach of Indian rural market our strategies were planned.
The strategies are as follows:
Product Strategy
Pricing Strategy
Distribution Strategy
Promotion Strategy
14. PRODUCT STRATEGY
In rural India, stove is one of the most important consumer durable goods.
While developing the product for rural markets, it is important for us to
take decisions on product attributes like quality, features, design and
style.
A simple design, absence of gimmicky features, convenient to use- a few
points taken into consideration while deciding product strategy. Our
product strategy includes the following:
• Small units
• Low priced packing
• product design
• Product branding: color, size, features.
15. PRICING STRATEGY
In rural markets, consumers look at the value for money. They
do not perceive the premium value of brands.
Understanding all the factors influencing price the following
strategy was formed:
• Low cost (value for money)
Two types of Chulhas-
For farmers, priced at Rs. 900
For households, priced at 1100
Though priced lower than competitor’s price ie 1050 and 1350
• Psychological pricing
• Avoid sophisticated packing
16. DISTRIBUTION STRATEGY
One of the major hurdles in rural markets is availability.
There is a demand for products, but many companies do
not have a distribution network. To solve this problem the
following distribution strategy will be used:
• Rural Wholesalers- Galla Kirana
• Tie Up With Local SHG (Self-help Group)
• Rural Malls, Eg: Godrej Aadhaar,
Warana bazar
• Haats
• Distributors On Bicycles, Mobile Traders
17. PROMOTION STRATEGY
Our promotion strategy focuses more on generating
“awareness”, “interest” and “conviction” among the audience
through appropriate media usage along with direct
marketing, folk media, etc. Our promotion strategy is as
follows:
Launch of the product on Vata Purnima- a traditional festival in villages of
Maharashtra
Rural advertisements: Doordarshan, Colors channel;
Advertisements before movies
Press/Print media: newspapers like:
Vata Purnima
Outdoor media: Wall paintings in places that will generate lot of visibility. Eg:
near panchayat bhavan, bus stop, cinemas
18. PROMOTION STRATEGY
Demostration in panchayat
Establish relations with retailers
Haats, Melas & Jatras (regional fair):
contests, interactive games
Sales promotion:
Special promotions on days of Diwali,
Maglagouri Puri, Gudi Padwa, Ganesh
Chaturthi
demonstration
Discounts to group of 5, chain
commission
Folk media:
folk dances- Dindi and Kala
folk theatre, magic shows
Haat in rural Maharashtra
19. FURTHER PLANS
Like every organization we have a future plan. It includes
the following targets:
• Expansion- tapping Gujarat and Madhya Pradesh
• Achieving lower cost of production
• New variants: colours and sizes
20. CONCLUSION
Maharashtra consisting of a million villages is a huge
untapped markets willing to accept newer technology.
On understanding the need, culture, income and mind set of
people in rural Maharashtra “Green Chulha” was created.
There are challenges yet in rural markets like distribution
network, low capita income, electrification though it’s an
untapped market