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Rural Marketing - Essay Example

Different way of thinking: The difference is also in the way of thinking. The kind of choices of brands that an urban customer enjoys is different from the choices available to the rural customer. The rural customer has a fairly simple thinking as compared to the urban counterpart HAIR CARE Hair Care Category In India 1 . There are 5 mall products 2. Hall Oil 3. Shampoo / Conditioners 5. Herbal Remedies 6. Hair Dyes / colors Shampoos The word Shampoo is derived from the Hindi word “Champ'”. Remember Johnny Walker’s famous song – Mere Jan, Mere Jan, Sunday Eek Sunday, Tell Malaise – Champs Tell Malaise.

The British loved the message so much; they started calling Champs as Shampoo Targeting for Shampoos Hair Shampoos and Conditioners are targeted at Upper middle class Now, also diddle class madhouse wives Upper class rural consumers Teenagers – they are the major segment Types of Shampoos Shampoo market is segmented on benefit platforms 1 . Cosmetic ( shine, health, strength ) 2. Anti – Dandruff 3. Herbal Hair Care Facts the frequency of shampoo usage is very low. Most consumers use shampoo only once or twice Nina week.

In many cases, these products are used on special occasions such as weddings, parties outcomes customers use shampoo only to address a specific problem such as dandruff or when thinned to condition their hair Jesse of conditioners is not common. It is restricted to the super premium segment or those where very involved with their hair care Some consumers use natural conditioning agents such ashen About 50% of consumers use ordinary toilet soaps to wash their hair. About 15 % of consumers toilet soaps as well as shampoo for cleaning their hair brand loyalties in shampoo are not very strong.

Consumers frequently look for a change,particularly in fragrance Consumers attribute lathering to the act of cleaning Major expectations from the product reinforcement in texture and manageability, giving softness and bounce to hair, curing endeavoring damage to the air Non Indian needs more shampoo for a proper wash (average 6 ml) compared to 4 ml needed inserter countries as most Indian women have long hair most consumers do not use shampoo daily Regular users would need smaller quantity of shampoo per bath.

Hair tend to collect more dust due to dusty environment and oiling habits Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes Olin Contrast, shampoo bottles are more popular in the Northern markets About 50 % of teashop bottles are sold in the Northern region alone In the North, local brands such as Reweave strong equities and these products being owe priced dilute sachet’s USPS of low price Shampoo market Size in India Size of shampoo market – 930 Cry Anti – Dandruff Shampoo – 20 % of above Sachet Sales – 70 % of above Shampoo Awareness in India exurban areas – 90 %, accounting for 80 % of shampoo sold in the country Rural proper Capita consumption of Shampoo in India – 13 ml proper Capita consumption of Shampoo in Indonesia – 160 ml proper Capita consumption of Shampoo in Thailand – 330 ml Shampoo Penetration in India 0 All India Shampoo- 14% urban – Rural- Growth in Shampoo Average Growth over the last few yr – > 20 Expected Average growth over the next few yr – 25 % DAD segment is the fastest growing segment, growing at 10 – 12 % every year. OH & S growing at 15- 20% every year Evolution of Shampoo in India 1 . HALL undisputed leader from the early ass’s 2. Sunlit launched in 1964 ( General Shampoo platform ) 3. Clinic Plus launched in 1971 ( Family, health shampoo platform ) 4. Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo ) 5. Sunlit re-launched in 1987 – Shampoo + Conditioner ( Beauty platform ) with Sachet SKU 6.

HALL Goes rural with Sachet Clinic Active launched in 1991 ( with Pro Vitamin B- halfheartedly ) 7. Sunlit re-positioned and re-launched in 1994 ( Nutcracker) – Pink for dry hair, yellow formally hair, green for oily hair and black for long hair Entry of Competition Away did competition Enter India teeming millions burgeoning middle class Sterilized youth Low penetration levels Gouge untapped market New Entrants into the Market POP & G enters India in Novo 1995, with the world’s largest selling brand – Pentane Colgate Palmolive launched Optima also in Novo 1995 ( break through in Keratin treatment ) 0 Naira launched Naira Shampoo which went into rough weather because it also had detergent and soap with the same name.

The brand name also had low price connotations Shampoo Boom in India Olin mid 1997, per capita consumption of Shampoo increased of the RSI. 350 Cry. Shampoo market, the AD segment accounted for a 20 % share POP & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Concentrating ( ZIP ) – a unique anti-microbial agent. There were 2 variants – regular and menthol Sachet sale became 40 % of all shampoo consumption in the country HALL Dominance Iconic, Sunlit, Organics and Lax and their various brand extensions dominate the shampooers Olin 1998, the company re-launched Clinic and Sunlit brands Councils was re-launched with Frustration. Today HALL has a 63 % market share in the shampoo market about 70 % The top Shampoo brands Normal Shampoos colonic Plus councils chock Arboreal Shampoos Cayuse daub Batik only Anti Dandruff Shampoos colonic All Clear ahead and Shoulders daub Batik AD Premium Products Shoshone Hussein revolve Flex L’Oreal The way forward Awhile toilet soaps have reached saturation, there is immense potential for penetration of shampoos into Indian households. According to NCAR, Shampoo penetration is expected to grow from 314 thoughtlessness’s in 1998-99, to 502 per housing households in 2006-07. Ad Budgets are on the rise The reasons are 1 . Lot of competition in the market 2. Low penetration levels 3. High potential 4. Untapped rural market to reach to COMPANY’S PROFILE In 1983 with a single product, Caviar started out as a small partnership firm Chic India by Mr.. C. K. Reanimating. Chic India, which was renamed as Beauty Cosmetics in 1990. An 1998 the Company was renamed as Caviar Pet. Ltd (CAP).

The reason behind the name is, Caving means beauty in Tamil and ‘care’ is spelt as Karee. The name is also a special one as it denotes the initials C and K of Mr.. Reanimating. The company offers quality Personal care (hair care, skin care, home care) and Food products. The Company, which primarily relied on contract manufacturing for many years has now set up its own world class plant at Harridan to cater to the demand of both domestic and internationalist. The Company has employee strength of 576, an all India network of 1300 Stockiest catering to about lack outlets nationally. Caviar has touched a turnover of over 5000 million INNER in 2006-2007.

Products Range Personal Care O’Hara Care: chock Shampoo only Herbal Shampoo alnico Hair Colorado Ethnic Care: emperor Hair Wash Powder Karakas Hair Wash Powder emperor Herbal Hair Oil Costs care: forever spine Talc spine Deodorants o Nile Cold cream and lotion Ohm Care: TEX 0 Food Division: ruche Pickles zucchini’s Pickles zucchini’s Miasmal zucchini’s Vermicelli ruche Gulag Cajun Mix Competitive Analysis Major Competitors: DULL Daub Malaysia health care Colgate-Palmolive Market Share Chock shampoo with a 21. 4 per cent share is the second largest selling shampoo in the RSI. L ,200-core (RSI 12 billion) shampoo market while its other brand Nile has a 4. 6 per centenaries. Lot has a 9 per cent share in the RSI 750-core (RSI 7. 0 billion) fairness cream market with thievery brand. Tethers like Emmer hair wash and Nile moisturizing lotion have national shares of 23. Percent and 4. 2 per cent, respectively. But they are the largest brand in rural Attar Pradesh, Andorra Pradesh, etc. Important Facts the company has six major brands – Fairer, Chic, Nile, Emmer, Indict and Spins. Awhile its shampoo brands (Chic and Nile) contribute 50 per cent to the company’s turnover. the Fairer cream contributes 30 per cent. the balance is from Spins (deodorant, perfume) Indict hair dye and other products. COVARIANCE’S STRATEGY Marketing Strategy they associate with people of similar wavelength in thinking, who will definitely take care of quality first and foremost and besides, they have a strong system of quality monitoring.

Ads part of their strategy, they lay down all the ground rules for the manufacturers maintaining their standards. Outsourcing is one of the three cardinal rules of Covariance’s corporate strategy. Direct media promotions have habits. B}’ the help of effective communication they tried to understand the fears, aspirations, andantes of the rural consumers. Covariance believes that its core impenitence are research and development, brandishing, and distribution management. Chock Shampoo used French perfume to differentiate itself on the plank of superintendence. Promotional Strategy the company is taking some tips from its shampoo experience. The Chinning pickles are available in single-use sachets that cost Re 1 to RSI 3, as well as low-priced, upright pouches. the rationale is simple: home-made pickle aside, the market is flooded with local brands. Consumers, therefore, have little incentive to upgrade to a branded product. Single-serve packaging will also serving in the institutional sales. Covariance is hoping the low price point and convenience of sachets will help rope in hotelman restaurants as bulk customers Covariance also introduced single-use sachets for its Spins Signing perfumes in two preadolescences at 1. 50 each. Covariance Pet Ltd is also running mobile beauty parlous. The mobile parlor exercise aims to provide a complete brand experience by having hairstylists use Chic on volunteers and distribute its Re 1 sachets as samples. the mobile parlous are targeting- girls’ colleges, market places and residential localities. Step towards Rural Marketing Covariance have shown that communication is key when it comes to building brands in relatedness. Covariance, which enabled its product brands to compete directly with market leaders such HALL, P&G, Godard and Hinkle successfully. Covariance’s successful brands such as Chic, Nile, Emmer, Fairer and Spins are goddamned. Covariance was the company responsible for the small sachet revolution in India.

Lot was an important insight for marketing to rural India, at the time. That’s why C. K. Reanimating was declared the Marketing Professional of the Year in thaliana Brand Summit-2003 . The awards were given for Leadership Excellence and Pioneer of sachet packing and mainstreaming in rural areas. Owen Caviar entered the rural areas in South India, people used to wash their hair withstood. Owen it launched the ‘Chic brand of shampoo they educated the people on how to use thorough live touch and feel’ demonstrations and also distributed free sachets at fairs. This strategy worked wonders in the rural areas of Tamil- Nadia and Andorra Pradesh.

Accessibility & Affordability the success of the sachet changed the structure of the shampoo industry None areas of consumers mainly from rural market could now afford shampoos the upper class tag attached to the shampoo fast faded away Extremely cut throat market emerged Significant trade influence on what the consumer bought How Chic Shampoo was born? This idea came in the mind of Mr.. Ringmaster’s father when Epsom salt came in 100 smackers. they wanted that collies and the rickshaw pullers to use products. But due to the lack of marketing strategies they could not market the concept well. Lot renamed as Chic Shampoo after the death of father. Target Audiences Lower Middle Class Monthly House hold Income: RSI. 1500 – RSI. 3000 Gage Group: 16+ yr Girls and women of rural and semi urban population of India. Overall Shampoo Market Share Chill’s 50% (Clinic Plus, Sunlit, Clinic All Clear, Others Lax and Shush). 6% P&G Covariance 19% (Chic and Nile). (Pentane, Rejoice, Head and Shoulders). Others 16% Communication Strategy Covariance discovered that soap usage was the biggest barrier and people did not see thinned for using Shampoo. Company tried to convey the message to the consumer that soap usage was bad for the harridan when a product exists specifically for hair it should be used. Finally customers agreed that Shampoo usage gave soft and silky hair. TOT build a local and regional presence, they advertised in local print and television, overtaking the brands nationally. they advertised more often and hired well qualified professionals to compete with decomposition. “The iconic Chic Girl in every Chic Shampoo’ commercial showcased the possibility of softens manageable hair for the customers. How Chic Shampoo conquered the rural market? they went to the rural areas of South India where people hardly used shampoo. they showed them how to use it. they did live demonstration on a young boy. They asked those assembled to feel and smell his hair. Next they planned Chic Shampoo-sponsored shows of Rationale’s films. they showed their advertisements in between, followed by live demonstrations. they also distributed free sachets among the audience after these shows. This worked wonders in rural Tamil Nadia and Andorra Pradesh.

After every show, their shampoo sales went up three to four times. they altered the scheme; they started giving one free Chic Shampoo sachet in lieu of effective Shampoo sachets only. they sold shampoo in 50 paisa sachets at a time when other shampoo sachets were selling RSI. 2. These price points helped penetrate deep rural pockets. Soon, consumers started asking for Chic sachets only. the sales went up from RSI 35,000 to RSI 12 lack (RSI 1. 2 million) a month. Distribution Strategy Looniest of using the conventional distribution route, they have created a ‘sachet’ sales forecast sells only sachet packs to small retailers including cigarette and pan shops.

Separate hawkers’ channel is being created that has moved from neighborhood identification. the hawker channels exist in all cities where they have a distribution network. Covariance’s personal products division is moving awards post offices. they are placing products at post offices, products such as khakis powder, shampoo Andrei dye. they are using such channels to expand product reach and gain accessibility. Because the unconventional route is not expected to become a major revenue generator in the coming years. Apart from and expanded its network beyond South India. Covariance has its offices in Achaean, Benedictory, New Delhi, Iambi and Kola along withiest stockiest, which supply to six lack outlets.