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Business & Strategy

 
Started by : Namrata Pathak, Accounts Manager, American Express   03 28 2011 08:00:57 +0000
Industry : Retail Chain/LogisticsFunctional Area : Business Models(Strategy & Execution)
Activity:  109 views;  last activity : 06 27 2012 04:59:27 +0000

For many years, rural India has been a somewhat untapped market for consumer goods and services companies. Big and small, Indian and foreign, many have tried to set up shop, but few have had lasting success.  So, its a huge untapped market for brands at the moment, but its also a big market and brands till date have not been able to get strong footing in this market. So, how brands can reach rural India?? Share your thoughts on this..........

 
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1 2 3 4 5
1 By using Technology
2 With proper marketing strategies.
3 Sales on wheels / Mobile service
4 Brands Are Already There
5 WHO ARE THE CUSTOMERS FOR THE BRANDS
6 Rural Retailing in India
7 outlet
8 CSR MARTETING
9 Simply by sampling methods..........In the rural areas................
10 csr marketing and retail ....
11 create consumer awareness and quality management
12 Local folks
13 Transfer business partnership
14 by relating products and satisfying rural needs affordably!
15 Adjusting the 4Ps - Product, Price, Place & Prmotion
16 distribution plus service in rural markets
17 By Identification of the need
18 reasonably cheap price
19 Road shows or local street theatre
20 Understand the psyche of rurals
21 Segmentation of rural area by education,population and income
22 BY GIVING EDUCATION AND POWER OF JUDGEMENT
23 By using both mentioned ways

By using Technology

idea posted by Namrata Pathak Accounts Manager, American Express

I think technology can fill the gap in rural India's supply chain and get big brands to even the smallest of villages. By combining the use of existing infrastructure with rural marketing and wireless applications, it can turn a $7 billion opportunity into a rural retail reality.

Lately we can see that multi-brand firms like Hindustan Unilever are able to reach out to rural India through rural-facing incentives and schemes. However, for small and mid-sized companies, the economics of operating in rural India do not, at present, make good business sense.

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by Anand Sharma, Monitoring the research funded by DIT, Department of Information Technology  | 04 06 2011 11:34:29 +0000

There are technologies and they must be promoted in the rural areas.

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by SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 03 28 2011 16:58:01 +0000

Yes, may be you are suggesting the right idea, Namrata. I support your idea & thanks for referral.

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by Rathin Deb, Advisor and retail consultant, currently as Branch Manager, Tower Infotech Ltd  | 03 28 2011 08:42:16 +0000

namrata i agree with your statement.

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With proper marketing strategies.

idea posted by Srinivas suravajhala Asst. Manager.
Majority of Rural India is illiterate. Rural folk shall be educated about the merits of the product before launching the product. The product shall be made easily available. FMCG and other consumer durables, cosmetics have untapped potential market in the rural areas. The pricing strategy is the other area to be given priority. Price of the product shall fit the pockets of the rural folk.
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by Nilay Sahay, Sr Executive, Vikas Publishing House  | 04 16 2011 11:07:32 +0000

by proper marketing rurul market can be tapped. Effective Pricing and Packaging can contribute a lot. by that products can be made affordable. mass media ad. can persude people to try the affordable product For that product need to be packed as per their convinience and pocket.

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by Mohan , Area Sales Manager, Thomson Reuters  | 03 30 2011 12:27:54 +0000

I am with you,One shuld learn from Agri. companies the born & working for rural india. The Size of the Agrochemical market only is 10000 crores & there are also certain brands. Issue is you have to give value for money to rural india

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by Sridevi Ranganaathan, Assistant Professor at Madras University  | 03 29 2011 14:06:31 +0000

Ya ofcourse it can be done only by proper marketing strategy. Its difficult to convince rural people than an urban coz rural people were cost effective they need value for their money blindly they wont buy anything.

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Sales on wheels / Mobile service

idea posted by KALIYAMOORTHY Oil & Gas Area Coordinator, Undisclosed

Potential pocket of an area can be identified & Brands can show off & go for retail business. At the same time, a scheduled display and sale items on Wheels, can also enhance the Sales. Moreover, they can organize Demonstration cum Sales Exhibition at frequent Intervals.

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by KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 03 30 2011 12:58:30 +0000

Hey Mr. Mohan,

It is true. A routine schedule & display will ease the customer purchase. Because, the demo is a schedule on regular basis, a customer who has seen the demo will arrange for money & be prepared to by in the next trip. Moreover, the potential packet will see more visibility by frequent & customized trip by the Brands.

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by Mohan , Area Sales Manager, Thomson Reuters  | 03 30 2011 12:31:51 +0000

Its a good method to demonstrate & almost all Agri Cos. do like this

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Brands Are Already There

idea posted by Vipin Bhasin Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.
There is not need to use different technology in rural area to promote a brand. If the population of rural area have the capacity to buy big brand then there is no need to use extra effort on that part. We can use same methods of advertisement as like urban area. Because potential buyer usually use all brands according to their capacity. But if rural area not holding the potential buyers then "To promote brand is useless"........
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by rajesh , MBA/PGDM student, Presidency college of management sciences  | 03 30 2011 17:00:43 +0000

i am in favour of ur opinion

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WHO ARE THE CUSTOMERS FOR THE BRANDS

idea posted by NATTERAJA R. ARIKRISHNAN GM-Projects, Bentec Electricals & Electronics Pvt. Ltd

How brands can reach rural areas?.. First the marketers have to find out the users for the brands and they have to plan a small strategy on how to make the villagers to start using their brands and also making readily available stocks. Unless without these basic concept, the reach to the rural segment will become a question mark.

The penetration in rural India has been very remarkable for products like Colgate, Pepsodent,Ponds,Cinthal,Rexona,Hammam,Bears,Close-up,Horlicks,Complan etc., and others including house hold electrical appliances [cosmetics,electrical,textiles,FMCG etc.,]They are very successful because of their ad campaign and strong distribution network in the rural areas of small & medium size towns nearby.

Now a days the life style in rural areas find some shift similar to urban, of course not majority of people.This is due to visual medias and also the floating population visiting the cities of urban for the purpose of doing business and employment.

Therefore leveraging of brand reach to rural areas may not be that much difficult in case it is properly well planned to tap the source of customers.All visual medias like TV channels are very popular in rural areas. Hence ad campaign will help to promote.Then it is necessary to appoint dealers/retails to keep stocks to distribute.The advantages, applications, and other service back-up have to explained by the marketers. Moreover the rural masses with their hard earned money have been more price sensitive and hence the price benefits to them plays the vital role.

Thanks Mr.Namrata for the referral.

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by NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 04 08 2011 19:50:58 +0000

The brand reach needs to know the customer base for the particular brands in rural areas. Then only other methods help to create the vibration, penetration, and demand generation and finally to create the customer base.

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by NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 04 03 2011 11:02:09 +0000

There is a difference in purchase behavior between the rural and urban population that is mainly decided by the money power, literacy standard, mind maturity, and life style. Hence the marketers should be able to mix the above in proper proposition to get the results. Moreover, the marketers should give what the customer base in rural areas want with a view to penetrate this segment.Then only the repeat purchase is assured.

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Rural Retailing in India

idea posted by manish My a/c is not showing ..help toostep
The higher income group in rural India is growing at a phenomenal rate, and the concept of brands and quality are very much prevalent. These current consumption trends provide compelling opportunities for marketers to capitalize on the increasing mass market in India for almost all product categories. Both corporations and entrepreneurs are exploring the rural retailing. ITC’s Choupal Sagar, HLL’s project Shakthi and Mahamaza are some of the models that are being tried out. Many more such concepts are likely to be tested in the future.
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idea posted by sudhakar BUSINESS CONSULTANT
Open an outlet without worrying about the outcome. There are many methodologies available but the prime thing is availability which in turn helps to generate enquires
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CSR MARTETING

idea posted by Davies francis juniour accounts, caravel logistics
csr marketing is idea to reach rural market
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Simply by sampling methods..........In the rural areas................

idea posted by VISHWA DEEPAK MISHRA HR-Talent Acquisition Cum Business Development Manager, Leading IT Giant.
A small Sampling Campaign to the rural areas can boost-up,any product or planning strategy........
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csr marketing and retail ....

idea posted by rajesh MBA/PGDM student, Presidency college of management sciences
well csr marketing as proposed by davies is most significant way brand can penerate rural market...before entering into rural market first work is to distinguish characteristics of rural market and hit the rural sentiments as we can see from many brand advertising in india
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create consumer awareness and quality management

idea posted by kannan Head/VP/GM-Accounts, own office
to demo and expose the product with guide of local source. and create consumerism and awareness of product and its quality. to take control over the quality management is essential while playing in rural market.
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Local folks

idea posted by Sanjay Bhardwaj Partner/Principal/VP, Health Management Solution
Most successful rural marketing models have demonstrated a strong engagement with thelocal population to ensure a good "BUY IN". My study confirm the same too.
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Transfer business partnership

idea posted by Mohammad Bakhsh Consultant(Civil), Rail Vikas Nigam Limited
I find this discussion most absorbing as people are now diverting their products to rural India.In my opinion people staying in rural areas should be made co-authored to write the business script.They should be made partners in stages based on volume of sales and offering incentives and business partnership could be one of the key factor in reaching out to rural masses.
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by rajesh , MBA/PGDM student, Presidency college of management sciences  | 03 30 2011 16:58:39 +0000

mr mohammad i am totally in agree with your opinion business by cooperation and participation is the best soulution.

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by relating products and satisfying rural needs affordably!

idea posted by Ravi Ranjan MBA/PGDM, ICFAI Business School,Kolkata
It's possible by displaying proper link between company's product,consumer's faith and usability in rural environment
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Adjusting the 4Ps - Product, Price, Place & Prmotion

idea posted by Anand Hisaria Branch Manager/Regional Manager, Ceasefire Industries Limited
To capture the mass rural market, a Company needs to customize its 4Ps - The Product, The Price, The Place & The Promotion in such a way that the entire marketing strategy is conducive to position and establish the brand in targeted rural markets. The Product must be designed considering the needs of rural markets. LUPs - Low Unit Packings with labels in vernacular languages will help a lot. Similarly Price is an important factor when we are planning to launch our brand into rural markets. Rural consumers are price sensitive hence price must be set after understanding completely what they will be willing to pay for your brand. Third, an effective and efficient distribution channel will be required to penetrate deeply into the mass rural market. Availability and displays on the POP (Point of Purchase) are very important aspects to establish a brand in rural markets. Lastly, Promotion in vernacular language to make them understand your message in a right way using right media of communication will be inevitable. To Conclude, weakness of any one of the above 4Ps explained will not yield optimum result. A right combination of all these Ps will be required to establish a brand in rural markets.
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distribution plus service in rural markets

idea posted by anirban dasgupta Cards-Sales Officer/Executive, cadbury india ltd
Rural market is very much cash rich. satellite channels through dish had invaded major houses in rural.education is also spreading through NGOs/Govt initiative.Hence need of the hour is reaching the rural with a good distibution model and follow up with regular service.only trustworthy brands can survive in market whether it is rural or urban market
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By Identification of the need

idea posted by Piyush Jain Localization and Vendor Development, Ericsson India Pvt. Ltd
Brands can always provide a good product over he traditional but they need to know what is the need and requirement over there... They can develop a cheap product too which may be marketed under a different name which is good in quality , cost and delivery aspects... but the same time they need to ensure the QUESTION" IS IT REQUIRED"
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reasonably cheap price

idea posted by manikanta raj Deputy Manager Finance, project financing, leading Financing company
reasonably cheap price of the product and dealer network makes a brand to reach rural people. rural indians only see the cost of the product but not the quality or value. hence a brand can reach only by cutting its sale price reasonably. rural indians are custom driven and will not think of luxuries and do not have much brand knowledge. so only price is driving factor to pick a product for them.
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Road shows or local street theatre

idea posted by Jaygopal Raghavan Marketing Manager, Landmark Group
In rural areas sophisticated town strategies dont work. Instead you have to identify your brand with popular forms of entertainment amidst the rural greens. These could be sponsoring any of the rural sports, participating in their street plays or jatra or conducting road shows that takes your brand directly to their homes.
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Understand the psyche of rurals

idea posted by Mathew Cherian Research Associate/Analyst, Western Michigan University
Rural areas are where superstion, manias and phobias exists in its citizen. Play on this and try to deliver products that have good quality to them instead of misleading them.
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Segmentation of rural area by education,population and income

idea posted by BINDUMADHAVI P UNIT MANAGER
Though 70% if India is still rural, that does not mean rural area has higher number of buyers for branded products. Thus it is necessary to do classification and segmentation of rural areas by Demography and market relevant products.
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BY GIVING EDUCATION AND POWER OF JUDGEMENT

idea posted by shubh agarwal ASE, Tata Consultancy Services (TCS)
The basic is education and judging , when people get education they start using right product(brand) and so the other people starts copying so the brands production starts ,may be not at large costly volumes but just like small sachets and so.on....and also using mediums like Telivision or radio or adds to promote brands.
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By using both mentioned ways

idea posted by Neeraj Jassal Software Enggineer, Cheers Interactive India
Yes Namrata, What you ask is right and villagers will familiar with brands, Now days there are so many other ways some body comes from village or vice-verca but I have one more thought in my mind is that villages life is our culture or you can say Heritage , It should be safe, we should save it. other wise we will loose it...
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