Description
PROJECT ON RURAL MARKETING OF COSMETICS
Rural Marketing of Cosmetics
Presented by:
Roopam Goyal
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Introduction
• Overall growth of the economy has increased. • Rural marketing is confused with agricultural marketing . • The saturation of the urban market . • Rural marketing strategies are different from the marketing strategies of urban.
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Strategies of Rural Marketing
• • • • • • • • • Client and location specific promotion Joint or cooperative promotion.. Bundling of inputs Management of demand Developmental marketing Unique selling proposition (USP) Extension services Business ethics Partnership for sustainability
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What should Co.s keep in mind to get success in rural market?
4A Approach: • Availability • Affordability • Acceptability • Awareness
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Rise of Indian Beauty Market
• • • • • • • • • Market size Purchasing power of consumers Major players Marketing Rising incomes and demographics shifts spur sales Hindustan levers lead remain unassailable Focus on innovation and price-segmentation Mounting aspirations and an upbeat economy herald a bright future positioning
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Introduction to Godrej Consumer product ltd.
• GCPL is a major player in the Indian FMCG market with a leadership in personal, hair, household and fabric care segments. • The company employs 950 people and has three stateof-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi (H.P.)
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GCPL Product Portfolio
• Soap – Cinthol – Evita – Godrej No. 1 – Fair Glow • Toiletries – Cinthol Talc – Godrej No. 1 Talc • – Fair Glow cream • – Godrej shaving cream • – Cinthol perfumes • Hair care – Godrej hair color dye – Renew woman hair dye – Nupur hair dye – Color soft hair color
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Godrej no.1 soap
•
Godrej No.1 soap was launched in 1922.
• This 86-year-old brand enjoys a volume market share of 6 per cent. • It is the 5th largest selling soap in the country and tops in Punjab/Haryana with a 20 per cent market share. • Godrej No. 1 soap rely on below-the-line promotions, and for the past 5 years it has been selling at a 3+1 free offer in the market. • In 86 years, the brand has spent less than what a major soap brand would spend in a month of heavy promotions (Rs 12-13 crore), according to the company.
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Godrej Rural Marketing Strategy (Godrej No. 1 Soap)
• Godrej introduced Godrej No.1 soap enriched with natural ingredients trusted by millions, the flagship brand of GCPL, is now the largest selling Grade 1 Soap. • Grade 1 is the highest standard laid down by the (BIS). Godrej introduced it in competition with the Santoor, Breeze. • Godrej in the initial stage introduced it as a mid segment soap but after sometime it’s price was reduced and targeted to the rural area. • Variation strategy: introduced many variants to extend the product line of soap.
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Godrej No. 1 Talc and shampoo
• 100 Gms at Rs, 19/• 300 Gms at Rs 39/Quantity
100ml 7 ml 3.5 ml
Bottle
Rs 25 -
Sachet
Rs 1 Rs.50
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2
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Distribution Strategy
• rural sales contribute one-third to the company's sales with the balance coming from the urban market. Godrej Soaps' total income was Rs 787 Crore in the fiscal 1999-2000. • has set up a committee to improve and leverage distribution in the rural markets of less than 5,000 population strata. • The company has put in place three experiments • carried out certain experiments in the below 10,000 population strata rural markets to leverage distribution. • The company has already set up a system of stockiest and super stockiest in small towns with population of 10,000 plus
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Distribution and Supply Chain
Project Sampark
• Virtual platform between company and distributors • Comprehensive business Intelligence enables in depth primary and secondary sales analysis
• Intensified rural approach, Presence in all locations with over 10000 population Increased penetration • 130 super stockiest, 2450 sub stockiest • Focus on availability of all products at all 600,000 outlets • Focus on modern retailing
Retail thrust
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1
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2
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3
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Promotional tools used by GCPL
• Events- Advertising– Billboard – Hoarding – Wall painting – Electronic media – Print media - Sales promotion. • relied heavily on the mass advertising like on the TV, radio, and newspaper • Conducted the events in which the rural people have the interest. Some of the events are navratna, yaara nachle, gold awards in Mauritius etc
>> 0 >> 1 >> 2 >> 3 >> 4 >>
Sales Promotion
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Promotional strategy
• GCPL has roped in Mona Singh of Jassi jasissi koi nahi to be the brand ambassador • ? All that Glitters is not Gold…All soaps are not Grade 1 soaps.? • campaign educates people the advantages of using Grade I quality soaps that produce more lather, last longer and thus is a great value-for-money proposition. • Godrej Soaps and Jassi both stand for the Sachchi prakritik sundarta proposition
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GCPL-Competitive edge
• Quality Policy • Value for money product • Distribution network • Brand image • Promotional edge • Innovation strategy • Strong product line
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LIFEBUOY
• the world’s largest selling soap. • Launched in the year 1895 • In 2002 Lifebuoy was relaunched, marking a new turning point in its history • The new Lifebuoy is targeted at today’s discerning housewife • Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now milled toilet soap with a new health fragrance.
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Lets see the 4 P’s of marketing of lifebuoy in rural India…..
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REPOSITIONING
• it is the single largest soap brand — with 20 lac soaps sold every day and an estimated value of Rs 500 crore (600 million users annually). • The relaunch of the 107-year-old Lifebuoy has been done in a bid to drive growth in a sluggish soap market. • HLL challenged everything that Lifebuoy stood for perfume, formulation, size and shape. • extending it to talcum powder and also testing a herbal variant of this power brand.
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1
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2
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3
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4
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PROMOTION
• TV and print campaigns, focused attention on the family health themes. • conducted consumer education exercise using "Germ tests?. • explored the communication options during World Health Day. • created The Lifebuoy Swashthya Chetana.
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1
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4
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• HLL was also offering cross company product mixes • HLL used Mahakumbh mela as an opportunity to change hand-washing and bathing habits in rural India. • Cinema van operations
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1
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2
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3
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4
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PRICE
• Hindustan Lever Ltd (HLL) currently on a price discount includes 150 gm Lifebuoy Gold (Rs 3 off), • HLL is also expected to follow suit with its Surf sachets • HLL have deliberately introduced small pack sizes. • Lifebuoy, HLL's largest selling soap brand, recently introduced a Rs 2 SKU (stock keeping unit) of 18 gm targeted at the rural market in the Bimaru States.
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1
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2
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3
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4
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PLACE
• 70% of India's population resides in villages • HLL has established a single distribution channel by consolidating categories • HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockiest.
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PRICE
• Fair and lovely sachet costs Rs.10 • Brand extension – ?active sunblock? lotion costs Rs.30 for 25ml & Rs.60 for 50ml
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FAIR AND LOVELY FOUNDATION
• Economic empowerment of women • Careers • Enterprise • Education
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Education
A. Background
• Scholarships are awarded annually to deserving young girls. • For higher education in India – Graduation, Postgraduation and PhD • Rs.100,000 scholarship is meant for women ?with an aptitude and ambition to achieve their goals?
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B. Communication Goals
• ?Reliance Communications’ R World? platform • Did not include the traditional media – TV & Print to break free from the clutter of traditional medium • Entice the user to fill in personal details after sharing the Scholarship and Fair & Lovely Foundation information.
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C. Media Solution & Execution
1. Banner Advertising 2. Fair & Lovely Scholarship Zone 3. SMS Blast 4. IVR 5. Short Code 6. Reliance Mobile World Website
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D. What Makes the Idea a
Winner
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Emami
• FLAGSHIP COMPANY OF EMAMI GROUP • PERSONAL BEAUTY AND HEALTHCARE BUSINESS • MANUFACTURES THROUGH AN EFFECTIVE LEVERAGE OF AYURVEDA
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ACTIVITY DESCRIPTION
• PARTNERED WITH NGO’S AND BANKS • OFFERS TWO TYPES OF SELF EMPLOYMENT SCEMES - EMAMI MOBILE TRADERS - EMAMI SMALL VILLAGE SHOPS • OFFERINGS OF THE SCHEMES
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BENEFITS TO RURAL
• SPECIALLY TRAINED SELF – HELP GROUPS • MARKET SELF MADE PRODUCTS • SUPPORT SMALL SCALE MANUFACTURES IN RURAL INDIA
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MARKETING STRATEGY
• THROUGH SALES - 11000 MOBILE TRADERS, 2200 SMALL VILLAGE SHOPS • COLLABORATIONS WITH ITC e-choupals • CONSISTENT GROWTH BY POWER BRANDS
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1
>>
2
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3
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4
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Growth Strategies
• CELEBRITY ENDORSEMENT • LAUNCHED FIRST ADVERTISING COMPAIGN • NEW LAUNCHES • LEVERAGING ITS AYURVEDA ORIGIN • GOOD DISTRIBUTION NETWORK
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1
>>
2
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3
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4
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REASONS FOR SUCCESS
• SEASONAL DEMAND
• KEY FACTOR FOR SUCCESS
• ENTER OTC MARKETS
• INNOVATIVE PACKAGING
• OUTSOURCING
• WIDE NETWORK FOR DISTRIBUTION
>> 0 >> 1 >> 2 >> 3 >> 4 >>
• entry in cold cream market • natural goodness of time tested ingredients • innovative and quality skin care product • target customers • research and development • packaging and pricing
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1
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Experience the five fold goodness of Emami Malai Kesar Cold Cream – the perfect non greasy cold cream - and face the winter with a soft and glowing skin.So, go on! Khul ke ....khilo
• • • •
Promotion – create awareness , educating retailers Disribution – 3.5 lakhs retail outlets Type of demand – seasonal Reason for success – association with ayurveda based products
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• Introductuon • Media exposure - increased literacy level • Indirect increase in disposable income • Rural youth - evolving as opinion leaders
>>
0
>>
1
>>
2
>>
3
>>
4
>>
TIPS FOR MARKETING BRANDS IN RURAL INDIA
• Close to the heart of rural people • pricing has to be value for money • issues and solutions to it - pricing - promotion - distribution - brand
>> 0 >> 1 >> 2 >> 3 >> 4 >>
ETHNIC ROUTE
• Identifying specific values in a cultural context • Identifying certain beliefs • Combining elements of specific culture • Capturing a sense of nostalgia • Using stereotypes • Identifying specific cultural traits
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doc_580815052.ppt
PROJECT ON RURAL MARKETING OF COSMETICS
Rural Marketing of Cosmetics
Presented by:
Roopam Goyal
>> 0 >> 1 >> 2 >> 3 >> 4 >>
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Introduction
• Overall growth of the economy has increased. • Rural marketing is confused with agricultural marketing . • The saturation of the urban market . • Rural marketing strategies are different from the marketing strategies of urban.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Strategies of Rural Marketing
• • • • • • • • • Client and location specific promotion Joint or cooperative promotion.. Bundling of inputs Management of demand Developmental marketing Unique selling proposition (USP) Extension services Business ethics Partnership for sustainability
>>
0
>>
1
>>
2
>>
3
>>
4
>>
What should Co.s keep in mind to get success in rural market?
4A Approach: • Availability • Affordability • Acceptability • Awareness
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Rise of Indian Beauty Market
• • • • • • • • • Market size Purchasing power of consumers Major players Marketing Rising incomes and demographics shifts spur sales Hindustan levers lead remain unassailable Focus on innovation and price-segmentation Mounting aspirations and an upbeat economy herald a bright future positioning
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Introduction to Godrej Consumer product ltd.
• GCPL is a major player in the Indian FMCG market with a leadership in personal, hair, household and fabric care segments. • The company employs 950 people and has three stateof-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi (H.P.)
>>
0
>>
1
>>
2
>>
3
>>
4
>>
GCPL Product Portfolio
• Soap – Cinthol – Evita – Godrej No. 1 – Fair Glow • Toiletries – Cinthol Talc – Godrej No. 1 Talc • – Fair Glow cream • – Godrej shaving cream • – Cinthol perfumes • Hair care – Godrej hair color dye – Renew woman hair dye – Nupur hair dye – Color soft hair color
>> 0 >> 1 >> 2 >> 3 >> 4 >>
>>
0
>>
1
>>
2
>>
3
>>
4
>>
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Godrej no.1 soap
•
Godrej No.1 soap was launched in 1922.
• This 86-year-old brand enjoys a volume market share of 6 per cent. • It is the 5th largest selling soap in the country and tops in Punjab/Haryana with a 20 per cent market share. • Godrej No. 1 soap rely on below-the-line promotions, and for the past 5 years it has been selling at a 3+1 free offer in the market. • In 86 years, the brand has spent less than what a major soap brand would spend in a month of heavy promotions (Rs 12-13 crore), according to the company.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Godrej Rural Marketing Strategy (Godrej No. 1 Soap)
• Godrej introduced Godrej No.1 soap enriched with natural ingredients trusted by millions, the flagship brand of GCPL, is now the largest selling Grade 1 Soap. • Grade 1 is the highest standard laid down by the (BIS). Godrej introduced it in competition with the Santoor, Breeze. • Godrej in the initial stage introduced it as a mid segment soap but after sometime it’s price was reduced and targeted to the rural area. • Variation strategy: introduced many variants to extend the product line of soap.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Godrej No. 1 Talc and shampoo
• 100 Gms at Rs, 19/• 300 Gms at Rs 39/Quantity
100ml 7 ml 3.5 ml
Bottle
Rs 25 -
Sachet
Rs 1 Rs.50
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Distribution Strategy
• rural sales contribute one-third to the company's sales with the balance coming from the urban market. Godrej Soaps' total income was Rs 787 Crore in the fiscal 1999-2000. • has set up a committee to improve and leverage distribution in the rural markets of less than 5,000 population strata. • The company has put in place three experiments • carried out certain experiments in the below 10,000 population strata rural markets to leverage distribution. • The company has already set up a system of stockiest and super stockiest in small towns with population of 10,000 plus
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Distribution and Supply Chain
Project Sampark
• Virtual platform between company and distributors • Comprehensive business Intelligence enables in depth primary and secondary sales analysis
• Intensified rural approach, Presence in all locations with over 10000 population Increased penetration • 130 super stockiest, 2450 sub stockiest • Focus on availability of all products at all 600,000 outlets • Focus on modern retailing
Retail thrust
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Promotional tools used by GCPL
• Events- Advertising– Billboard – Hoarding – Wall painting – Electronic media – Print media - Sales promotion. • relied heavily on the mass advertising like on the TV, radio, and newspaper • Conducted the events in which the rural people have the interest. Some of the events are navratna, yaara nachle, gold awards in Mauritius etc
>> 0 >> 1 >> 2 >> 3 >> 4 >>
Sales Promotion
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Promotional strategy
• GCPL has roped in Mona Singh of Jassi jasissi koi nahi to be the brand ambassador • ? All that Glitters is not Gold…All soaps are not Grade 1 soaps.? • campaign educates people the advantages of using Grade I quality soaps that produce more lather, last longer and thus is a great value-for-money proposition. • Godrej Soaps and Jassi both stand for the Sachchi prakritik sundarta proposition
>> 0 >> 1 >> 2 >> 3 >> 4 >>
GCPL-Competitive edge
• Quality Policy • Value for money product • Distribution network • Brand image • Promotional edge • Innovation strategy • Strong product line
>> 0 >> 1 >> 2 >> 3 >> 4 >>
LIFEBUOY
• the world’s largest selling soap. • Launched in the year 1895 • In 2002 Lifebuoy was relaunched, marking a new turning point in its history • The new Lifebuoy is targeted at today’s discerning housewife • Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now milled toilet soap with a new health fragrance.
>> 0 >> 1 >> 2 >> 3 >> 4 >>
Lets see the 4 P’s of marketing of lifebuoy in rural India…..
>>
0
>>
1
>>
2
>>
3
>>
4
>>
REPOSITIONING
• it is the single largest soap brand — with 20 lac soaps sold every day and an estimated value of Rs 500 crore (600 million users annually). • The relaunch of the 107-year-old Lifebuoy has been done in a bid to drive growth in a sluggish soap market. • HLL challenged everything that Lifebuoy stood for perfume, formulation, size and shape. • extending it to talcum powder and also testing a herbal variant of this power brand.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
PROMOTION
• TV and print campaigns, focused attention on the family health themes. • conducted consumer education exercise using "Germ tests?. • explored the communication options during World Health Day. • created The Lifebuoy Swashthya Chetana.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
• HLL was also offering cross company product mixes • HLL used Mahakumbh mela as an opportunity to change hand-washing and bathing habits in rural India. • Cinema van operations
>>
0
>>
1
>>
2
>>
3
>>
4
>>
PRICE
• Hindustan Lever Ltd (HLL) currently on a price discount includes 150 gm Lifebuoy Gold (Rs 3 off), • HLL is also expected to follow suit with its Surf sachets • HLL have deliberately introduced small pack sizes. • Lifebuoy, HLL's largest selling soap brand, recently introduced a Rs 2 SKU (stock keeping unit) of 18 gm targeted at the rural market in the Bimaru States.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
PLACE
• 70% of India's population resides in villages • HLL has established a single distribution channel by consolidating categories • HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockiest.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
>>
0
>>
1
>>
2
>>
3
>>
4
>>
PRICE
• Fair and lovely sachet costs Rs.10 • Brand extension – ?active sunblock? lotion costs Rs.30 for 25ml & Rs.60 for 50ml
>> 0 >> 1 >> 2 >> 3 >> 4 >>
FAIR AND LOVELY FOUNDATION
• Economic empowerment of women • Careers • Enterprise • Education
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Education
A. Background
• Scholarships are awarded annually to deserving young girls. • For higher education in India – Graduation, Postgraduation and PhD • Rs.100,000 scholarship is meant for women ?with an aptitude and ambition to achieve their goals?
>> 0 >> 1 >> 2 >> 3 >> 4 >>
B. Communication Goals
• ?Reliance Communications’ R World? platform • Did not include the traditional media – TV & Print to break free from the clutter of traditional medium • Entice the user to fill in personal details after sharing the Scholarship and Fair & Lovely Foundation information.
>>
0
>>
1
>>
2
>>
3
>>
4
>>
C. Media Solution & Execution
1. Banner Advertising 2. Fair & Lovely Scholarship Zone 3. SMS Blast 4. IVR 5. Short Code 6. Reliance Mobile World Website
>>
0
>>
1
>>
2
>>
3
>>
4
>>
D. What Makes the Idea a
Winner
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Emami
• FLAGSHIP COMPANY OF EMAMI GROUP • PERSONAL BEAUTY AND HEALTHCARE BUSINESS • MANUFACTURES THROUGH AN EFFECTIVE LEVERAGE OF AYURVEDA
>> 0 >> 1 >> 2 >> 3 >> 4 >>
ACTIVITY DESCRIPTION
• PARTNERED WITH NGO’S AND BANKS • OFFERS TWO TYPES OF SELF EMPLOYMENT SCEMES - EMAMI MOBILE TRADERS - EMAMI SMALL VILLAGE SHOPS • OFFERINGS OF THE SCHEMES
>>
0
>>
1
>>
2
>>
3
>>
4
>>
BENEFITS TO RURAL
• SPECIALLY TRAINED SELF – HELP GROUPS • MARKET SELF MADE PRODUCTS • SUPPORT SMALL SCALE MANUFACTURES IN RURAL INDIA
>>
0
>>
1
>>
2
>>
3
>>
4
>>
MARKETING STRATEGY
• THROUGH SALES - 11000 MOBILE TRADERS, 2200 SMALL VILLAGE SHOPS • COLLABORATIONS WITH ITC e-choupals • CONSISTENT GROWTH BY POWER BRANDS
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Growth Strategies
• CELEBRITY ENDORSEMENT • LAUNCHED FIRST ADVERTISING COMPAIGN • NEW LAUNCHES • LEVERAGING ITS AYURVEDA ORIGIN • GOOD DISTRIBUTION NETWORK
>>
0
>>
1
>>
2
>>
3
>>
4
>>
REASONS FOR SUCCESS
• SEASONAL DEMAND
• KEY FACTOR FOR SUCCESS
• ENTER OTC MARKETS
• INNOVATIVE PACKAGING
• OUTSOURCING
• WIDE NETWORK FOR DISTRIBUTION
>> 0 >> 1 >> 2 >> 3 >> 4 >>
• entry in cold cream market • natural goodness of time tested ingredients • innovative and quality skin care product • target customers • research and development • packaging and pricing
>>
0
>>
1
>>
2
>>
3
>>
4
>>
Experience the five fold goodness of Emami Malai Kesar Cold Cream – the perfect non greasy cold cream - and face the winter with a soft and glowing skin.So, go on! Khul ke ....khilo
• • • •
Promotion – create awareness , educating retailers Disribution – 3.5 lakhs retail outlets Type of demand – seasonal Reason for success – association with ayurveda based products
0 >> 1 >> 2 >> 3 >> 4 >>
>>
• Introductuon • Media exposure - increased literacy level • Indirect increase in disposable income • Rural youth - evolving as opinion leaders
>>
0
>>
1
>>
2
>>
3
>>
4
>>
TIPS FOR MARKETING BRANDS IN RURAL INDIA
• Close to the heart of rural people • pricing has to be value for money • issues and solutions to it - pricing - promotion - distribution - brand
>> 0 >> 1 >> 2 >> 3 >> 4 >>
ETHNIC ROUTE
• Identifying specific values in a cultural context • Identifying certain beliefs • Combining elements of specific culture • Capturing a sense of nostalgia • Using stereotypes • Identifying specific cultural traits
>>
0
>>
1
>>
2
>>
3
>>
4
>>
>>
0
>>
1
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2
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3
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4
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doc_580815052.ppt