rural social mktg-2

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IIPMTHE INDIAN INSTITUTE OF PLANNING AND MANAGEMENTRural and Social Marketing - Re-Examination AssignmentPaper Code: IIPM/MKT04/RS002 Max. Marks: 100

General Instructions:

The Student should submit this assignment in his/her own handwritten (not in the typed format). The Student should submit this assignment within 2 days from the issue of the assignment. The student should attach this assignment paper with the answered papers. Write legibly and keep the length of the answer as per the weightage (in terms of marks)

assigned to each question. DO NOT be unduly short or long in providing the relevant details. The student should only use the Rule sheet papers for answering the questions. Failure to comply with the above instructions would lead to rejection of assignment.

Specific Instructions:

There are Four Questions in this assignment. The student should answer all the questions alongwith their subparts. Marks are being assigned to each section of the question as well.

Each Question carries equal marks (25 marks) unless specified explicitly.Question-1(A)[15Marks]

Making Inroads into the Hinterland

It's there, but just a little bit out of reach and focus. Indian FMCGs, who hit the dusty roads out

of the cities to chase the great Indian rural marketing dream, are finding out that the pot of gold

at the end of this rainbow isn't easy to find.

Before gamboling into issues like where the Indian rural market stands and the opportunities for

corporate to explore there... let's look at the definition of urban and rural India. The Census

defined urban India as - "All the places that fall within the administrative limits of a municipalcorporation, municipality, cantonment board etc or have a population of at least 5,000 and have

at least 75 per cent male working population in outside the primary sector and have a population

density of at least 400 per square kilometer. Rural India, on the other hand, comprises all places

that are not urban!"


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Now for some facts and figures. The Indian rural market today accounts for only about Rs 8

billion (53 per cent - FMCG sector, 59 per cent durables sale, 100 per cent agricultural products)

of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share. So clearly there

seems to be a long way ahead.

Time and again marketing practitioners have waxed eloquent about the potential of the rural

market. But when one zeroes in on the companies that focus on the rural market, a mere handful

names come to mind. Hindustan Unilever Limited (HUL) is top of the mind with their successful

rural marketing projects like 'Project Shakti' and 'Operation Bharat'. The lynchpin of HUL's

strategy has been to focus on penetrating the market down the line and focusing on price point.

Furthermore, activating the brand in the rural market through activities, which are in line with

the brand itself, is what sums up HUL's agenda as far as the rural market is concerned informs

MindShare Fulcrum general manager R Gowthaman. Amul is another case in point of aggressive

rural marketing. Some of the other corporate that are slowly making headway in this area are

Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life InsuranceCorporation, Cavin Kare, Britannia and Hero Honda to name a few.

We can safely say that until some years ago, the rural market was being given a step-motherly

treatment by many companies and advertising to rural consumers was usually a hit and miss

affair. More often than not, the agenda being to take a short-cut route by pushing urban

communication to the rural market by merely transliterating the ad copy. Hence advertising that

is rooted in urban sensitivities didn't touch the hearts and minds of the rural consumer. While,

this is definitely changing, the process is slow. The greatest challenge for advertisers and

marketers continues to be in finding the right mix that will have a pan-Indian rural appeal. Coca

Cola, with their Aamir Khan ad campaign succeeded in providing just that.

Corporates are still apprehensive to "Go Rural." A few agencies that are trying to create

awareness about the rural market and its importance are Anugrah Madison, Sampark Marketing

and Advertising Solutions Pvt Ltd, MART, Rural Relations, O&M Outreach, Linterland and

RC&M, to name a few. Also, the first four agencies mentioned above have come together to

form The Rural Network. The paramount objective of the Network is to get clients who are

looking for a national strategy in rural marketing and help them in executing it across different

regions.

Interestingly, the rural market is growing at a far greater speed than its urban counterpart. "All

the data provided by various agencies like NCAER, Francis Kanoi etc shows that rural markets

are growing faster than urban markets in certain product categories at least. The share of FMCG

products in rural markets is 53 per cent, durables boasts of 59 per cent market share. Therefore

one can claim that rural markets are growing faster than urban markets," says Sampark

Marketing and Advertising Solutions Pvt Ltd managing director R A Patankar.


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"Yaara da Tashan..." McCann Erickson's ads with Aamir Khan created universal appeal for Coca

Cola. Coca-Cola India tapped the rural market in a big way when it introduced bottles priced at

Rs 5 and backed it with the Aamir Khan ads. The company, on its behalf, has also been investing

steadily to build their infrastructure to meet the growing needs of the rural market, which

reiterates the fact that this multinational has realised the potential of the rural market is going

strength to strength to tap the same.

In 2000, ITC took an initiative to develop direct contact with farmers who lived in far-flung

villages in Madhya Pradesh. ITC's E-choupal was the result of this initiative.

Clearly the main challenge that one faces while dealing with rural marketing is the basic

understanding of the rural consumer who is very different from his urban counterpart. Also

distribution remains to be the single largest problem marketers face today when it comes to going

rural. "Reaching your product to remote locations spread over 600,000 villages and poor

infrastructure - roads, telecommunication etc and lower levels of literacy are a few hinges thatcome in the way of marketers to reach the rural market," says MART managing director Pradeep

Kashyap.

Citing other challenges in rural marketing, Patankar says, "Campaigns have to be tailor made for

each product category and each of the regions where the campaign is to be executed. Therefore a

thorough knowledge of the nuances of language, dialects and familiarity with prevailing customs

in the regions that you want to work for is essential. The other challenge is the reach and the

available means of reaching out to these markets, hence the video van is one of the very effective

means of reaching out physically to the rural consumers."

The fact of the matter remains that when compared to the Indian urban society, which is turning

into a consumerism society; the rural consumer will always remain driven by his needs first and

will therefore be cost conscious and thrifty in his spending habits. "Decision-making is still

conscious and deliberated among the rural community. But nevertheless, the future no doubt lies

in the rural markets, since the size of the rural market is growing at a good pace. There was a

time when market predictions were made on the basis of the state of the monsoon but this trend

has changed over the years; there is a large non farming sector, which generates almost 40 per

cent of the rural wealth. Hence the growth in the rural markets will be sustained to a large extent

by this class in addition to the farmer who will always be the mainstay of the rural economy,"

affirms Patankar."Although the melting of the urban - rural divide will take a while, this is not

for want of the availability of the means but for want of the rural consumer's mindset to change;

which has its own logic, which is driven by tradition, custom and values that are difficult to

shed," he points out.

Fulcrum's Gowthaman says, "The biggest impending factor or deterrent on rural monies going up

is that there is a general sense of trying to benchmark cost per contact (CPC). The television CPC


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is going to anyways be cheaper to rural CPC and unless and until the volume - value equation

turns the other way round, you will not be able to spend disproportionate monies in the rural

market."

For HUL, a one rupee or a five rupee sachet or the Kutti Hamam (the small Hamam) helps in

giving the consumers a trial opportunity. While it does help in generate volume but not in terms

of values. "Till the time that volume - value equation is managed better, the CPC is preventing

anybody to look at rural at a large scale activation programme," reiterates Gowthaman.

Ultimately, the ball lies in the court of rural marketers. It's all about how one approaches the

market, takes up the challenge of selling products and concepts through innovative media design

and more importantly interactivity. Anugrah Madison's chairman and managing director RV

Rajan sums up, "There is better scope for language writers who understands the rural and

regional pulse better. I also see great scope for regional specialists in the areas of rural marketing

- specialists like Event Managers, Wall painters, folk artists, audio visual production houses. In

fact all those people who have specialized knowledge of a region are bound to do well, thanks to

the demands of the rural marketers."

So the fact remains that the rural market in India has great potential, which is just waiting to be

tapped. Progress has been made in this area by some, but there seems to be a long way for

marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so

poor as it used to be a decade or so back. Things are sure a changing!

Now answer the following questions carefully.. (7.5x 2 )

Identify the reasons for the withdrawal or limited success of the FMCG companies in the ruralmarket. Can you recommend any solutions to these problems/ challenges in the rural market?

Examine the strategies adopted by the FMCG companies in the case to ride over the slump. Alsogive some more examples of successful rural marketing strategies adopted by companies otherthan those mentioned in the case that have customized their products exclusively for the ruralmarket.

Question-1(B)[10Marks]

Read the following case carefully and answer the questions which are being given in the

last ..


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Now answer the following ques

Critically evaluate each of the

the product may be considered t

Suggest changes in the marke

products.

Question-2(A)[10Marks]

Read the following case caref

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tions carefully

easures suggested to Ms. Sailja. What altern

encounter fakes?

ing mix that might be adapted to counter t

lly and answer the questions which are be

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tive measures in

e issue of fake

ng given in the


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Now answer the following questions

carefully

With a view to the current circumstances, suggest a suitable action plan to JRC to help it convert

the crisis they are facing into an opportunity.

Based on the Marketing programs in UP and Bihar, examine the possibilities of entry &

acceptance in other markets.


A silent revolution is sweeping the Indian Countryside. It has compelled marketing whizkids to

go rural. The marketing battlefield has shifted from the cities to the villages, but in this battle

both consumers and companies are winners, it is a win-win situation. Go Rural seems to be the

latest slogan. Stop depending on the research numbers. Go and meet up a million villagers and

ask them what they want. Create products and services that is relevant to their needs.

Name some companies that have been successful in the rural market by understanding the needs

and wants of the rural consumers. Explain why they have been successful with special reference

to the 4 A,s of rural marketing .

Question -3(A)[10Marks]


last .


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Now answer the following questions carefully.

Identify the rural marketing characteristics & strategies for the successful marketing of drugs.

In the given scenario suggest a detailed marketing plan for the launching of Sanjiva in rural

areas.



last ..

Lifebuoy's Swasthya Chetna (LSC) was a five-year health and hygiene education program

initiated by Hindustan Lever Limited (HLL), the Indian arm of the fast moving consumer goods

(FMCG) major, Unilever. The program was formally launched in 2002, in eight states across India.

The objective of this program was to educate around 200 million people in rural and urban areas

about the importance of adopting good 'health and hygiene' practices. The program spread

awareness about germs and their adverse effects on health, and how proper 'health and hygiene

'practices, such as bathing and washing hands with soap could prevent diseases like diarrhoea.

According to HLL, LSC was not a philanthropic activity, but a marketing program with a social

benefit. HLL sought to grow the Lifebuoy brand in India by attracting those consumers who

never used soap. In the process, the company sought to bring about a behavioural change by

convincing people to use soaps more frequently, thus creating more users for its brand. This

program was also seen as a successful case for public-private partnership.

In April 2006, Lifebuoy, a leading soap brand manufactured and marketed by Hindustan Lever

Limited (HLL), the Indian arm of the fast moving consumer goods (FMCG) major, Unilever,became the first brand in India to be featured on a postal cover.

On the occasion of World Health day, on April 7, 2006, the Minister of State for

Communications and IT, Government of India (GoI), Dr Shakeel Ahmed, released a special

Lifebuoy Swasthya Chetna Postal Cover .The Department of Post under the Ministry of

Communications issued this Special Postal Cover in recognition of the work done by HLL to

increase awareness about health and hygiene, through its Lifebuoy 'Swasthya Chetna'('Health

Awakening') program in rural India

Speaking on the occasion, Chief Post Master General of the Maharashtra3

Circle, K Noorjehan,

said, I congratulate Lifebuoy and Hindustan Lever for initiating and assiduously implementing

this socially beneficial movement.Lifebuoy's Swasthya Chetna (LSC) was a five-year health and hygiene education program

launched by HLL, in 2002, in eight states across India. The objective of this program was to

educate around 200 million people in rural and urban areas about the importance of adopting

good 'health and hygiene 'practices.

The program spread awareness about germs and their adverse effects on health, and how proper

'health and hygiene 'practices, such as bathing and washing hands with soap could prevent


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diseases like diarrhea. Our number one aim is to challenge the misconception that 'visibly clean'

is 'hygienically clean'.

And we are working with parents and children, health educators, teachers, community leaders,

and government agencies to spread the word, said Caroline Harding, Global Brand Director,

Health Brands, Unilever. In the process, HLL sought to increase the sales of Lifebuoy soaps by

convincing these people to use soaps more frequently and also to create new users for its brand.

HLL launched the LSC program in villages where media penetration was negligible. The people

of these villages were educated through lectures, demonstrations, visual aids such as flip charts

and interactive quizzes. Various media vehicles were used in the program including cinema vans,

wall paintings, weekly markets, fairs, and festivals.

The initiative started with communication to schoolchildren, which was extended to their parents

and other adults, and culminated in the formation of sustainable health clubs by the local people.

The whole process took around two to three years.

HLL had committed US$ 5.4 million for this five-year program.6 The program was implemented

by Ogilvy Outreach, while Weber Shandwick , one of the largest public relations (PR) agenciesin the world, provided the PR support.

By the end of 2005, HLL had covered more than 18,000 villages in these eight states. The sales

of Lifebuoy grew by 20 percent in 2003-04 with strong sales reported from the eight states where

the program was being implemented. In 2005, the Lifebuoy brand grew by 10 percent and this

growth was expected to continue in 2006. The program also received a lot of positive media

attention.

Now answer the following questions carefully

What is the rationale behind the Lifebuoy Swasthya Chetna initiative by Hindustan LeverLimited (HLL) in India?

How did the social marketing message help HLL in increasing the market share? Also give

suggestions to HLL to improve itsmarket share.

Discuss the role of public-private partnerships as a win-win situation for private entities,

governments, and individual consumers.

Question-4[25Marks]


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Case Study HULs Rural Foray

After tapping the premium and popular segments, HUL has entered the lower end of the teamarket with its new offering, Brooke Bond Sehatmand.


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More than a hundred years ago, Hindustan Unilever launched a soap called Lifebuoy in India.The brand, which saw unparalleled success, promised to protect users from germs.In the next 114 years, the brand has never moved away from its original positioning and sales

pitch. More importantly, it has given the Anglo-Dutch maker of fast-moving consumer goods a

strong hold over the rural markets.

Then, around four years ago, the company brought out Brooke Bond Natural Care, a tea thatused five natural ingredients and promised good health.

The success of the product prompted the company to sit up and take notice. Having covered the

popular segment with a thrust on health, HUL felt that great potential lay in the vastly untapped

economy segment which makes up a whopping 45-50 per cent in terms of volume as well as

value.

"That's when we realised it is critical for us to be there," says Arun Srinivas, who heads HUL's

beverages business. And Lifebuoy's success was just the inspiration Srinivas and his team

needed. Thus was born Brooke Bond Sehatmand. The term sehatmand means health-giving in

Hindi.

At present, HUL has Taj Mahal Tea in the premium segment, Red Label in the popular market

and Taaza that covers mid-market price points. However, entering the economy segment wasn't

going to be an easy task.

One, loose tea makes up 65 per cent of the market, packaged tea accounts for only a third.

Two, this is a market dominated by regional brands. HUL and Tata Tea, the country's two largest

tea companies, cater to just the top 40 per cent of this market - the rest is shared by several

regional brands.

"While price is an important factor in this segment, we had to have a winning proposition to

differentiate ourselves from regional tea makers," explains Srinivas.

Rural targetThus began extensive research using the company's internal tracker called Living Standards

Measure (LSM) to determine the success of the product. LSM can range anywhere between one

and 18 - a higher score shows a higher living standard. For Sehatmand, HUL needed to target

LSM 1-4 individuals (those who cannot afford their own mode of transport) the bulk of who

reside in rural areas.

Research reiterated what HUL felt. India has over 200 million undernourished people, the largest

in any country. Nearly 70 per cent of the population is deficient in iron, vitamins and minerals.

But with growing awareness, research showed that these people were concerned about their

access to supplements. Most of all, they were worried if their children were getting adequate

nutrition. "Iron, we were sure, would not be a good fit for tea, hence we decided to take the

vitamin route," Srinivas points out.

But given HUL's wide product range, why did the company choose tea as a health supplement?

Says Srinivas, "Tea is a widely consumed product with 95 per cent penetration." To ensure

differentiation, technology was the key. "Most tea makers today merely blend the product, but

with the help of our research & development arm in Bangalore and our Tea Excellence Centre in

Kolkata, we've ensured that each granule of tea contains vitamins."


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With this breakthrough technology, vitamins have been fused into each granule of tea. And

drinking three cups of Sehatmand, the company promises, will ensure 50 per cent Reference

Daily Intake (RDA) of important B vitamins. This is how HUL hopes to differentiate itself from

rival Tata Tea which has a brand called Agni in the popular economy segment.

Differentiating factors

Taste too has been given priority based on geographic preferences. "Taste palates vary across the

country, which is why tea has largely been a regional product. So, Sehatmand in Uttar Pradesh

will not taste the same as in Maharashtra," Srinivas says.

Thus, for each region the company has come out with a unique taste, colour and aroma. For

instance, South India has a strong preference for strong and dark tea, while North India is

inclined towards taste and aroma rather than colour. HUL has paid close attention to these

nuances.

A great product may be fine, but it will be a marketing challenge for HUL. Television

commercials will air on cable, satellite and state-owned Doordarshan in February. In addition,

there will be heavy advertising on All India Radio as well as extensive on-ground activation toreach the target audience (rural consumers).

For this, HUL will tie up with non-government organizations. Further, it will launch an

awareness campaign called "Sehatmand Parivar - Sehatmand Bharat" in schools. HUL feels that

children are an important tool for the company to get its message across. "Parents want to ensure

the best for their children, which is why they send them to school in the first place," says

Srinivas.

As for distribution, Sehatmand is relying on the scale and might of HUL. It will also tap Project

Shakti, an initiative HUL started in 2001 to increase the company's distribution and provide rural

women with income opportunities. Through this initiative, HUL hires a Shakti Entrepreneur or

Shakti Amma who sells the company's products either door-to-door or through shops.Brooke Bond Sehatmand is priced at Rs 20 and Rs 39 for 100 grams and 200 grams,

respectively. The prices are at a 15-18 per cent premium when compared to loose tea. To tackle

this, HUL has launched smaller packs of Rs 5 and Rs 10 as well.

"With Sehatmand, we want to be both affordable and accessible," adds Srinivas. At present it has

been launched only in Madhya Pradesh, Chhattisgarh and Bihar, but over the next six months it

will be rolled out across the country in a phased manner.

Answer the following questions from the case study HULs Rural Foray

Identify the various segments and the related attributes of the target market. Identify for HUL the

positioning, distribution and pricing strategies for the marketing of HULs Sehatmand and

Lifebuoy..

Do you agree with HULs marketing strategies? Why / Why not?

Suggest further tweaking of this business model for the betterment of the brands penetration into

rural markets.

,..ALL THE BEST

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