RURAL INDIAIndia Calling … Are you

Ready

Dominate with Science…. Into

the Land of Dreams

FACT FILE70% OF Indian population lives in rural India

Mostly depend on agriculture

Largely illiterate

Income level Rs 100 /day

Poor infrastructure

Language change within few kms

Density of population is less and spread across a wide geographical area

STRENGTH6.5 CRORE population still untapped

72% contribute to GDP

Approximate size of rural market 125000 crores

Mostly depend on agriculture

Less exposure to different brands so less competition

Rise in expenditure to 9% since 2002

Government initiatives like Bharat nirman, NAREGA , micro finances etc have made rural india approachable to marketable

WEAKNESS Low literacy rate

Lack of infrastructure facilities roads, power etc

Fake products in market

Wide spread and scattered population

Low earning per household

Low penetration of traditional media

No common language use across

Mindset which resist to adopt new things

OPPORTUNITYGovernment spending on rural India increases:- 1. 4.1 Crore Kisan credit card issued providing

credit of appox 10000 crore

2. Bharat nirman & other gramin yojna increasing rural connectivity

3. Schemes for rural employment NAREGA etc

Competition is low

THREATSCreating products for rural India is different from creating product for urban India

Huge infrastructure & enough spending is required

Cater to population which is spread widely in geographical area

Initial entrant expose to more risk

Population is mostly illiterate communicating is real challenge

REAPING BENEFITSIn 2001-02 LIC sold 55% of its policies in rural India

Of 2million BSNL mobile connection 50% is in rural areas

Hero Honda’s 43% sales comes from rural India

HUL on of the First initiators in rural India (Through Its Project Shakti ) 45% sales comes from rural India

LG sold 55% of its color television in rural India

Out of 2 crore rediff mail sign up’s 60% are from small towns / villages - out of which 50% online shopping transaction are from these small towns

MARKETING-4PSProduct differentiation – Products should be in small packs based on price sensitivity etc

Packaging must be based on local culture & lifestyle

Bright Colours like Green (Hariyali) & Orange denotes Peace & Prosperity

Product communication – Awareness campaign taking help of any influential persons etc

Putting banners & posters and communication through pictures

Using rural media radio & TV

Folk melas & puppet Shows

MARKETING-4PSSupply Chain –A. HUL (Shakti) Using rural women to distribute HUL

products

B. Tata using NGO network in UP to supply its products to villages

C. Reliance Retail procuring from local villages to supply in neighboring cities

D. Coka Cola followed a Hub & Spoke model to leverage its rural penetration

RURAL MARKETINGSupply Chain of Pharmaceutical Industry in rural India :Pharmaceutical giants Ranbaxy and Pfizer recently tied up with ITC in order to distribute their (OTC) products across 6,500 e-choupal centers spread across 40,000 villages.

The e-choupal initiative by ITC is by far one of the most successful initiatives in empowering the rural farmers

Building a healthy rural network across 40,000 villages in 9 states.

The initiative currently empowers 4 million farmers while the number is growing fast.

The alliance will open windows for the less equipped consumers in rural areas and provide them with better medical and healthcare products currently available only in urban cities and towns.

RURAL MARKETINGClassic Case of Elder Pharma Rural Initiatives:Elder pharma set up a dedicated division called Elvista to spread its network to rural areasInitial target Class 2 & 4 towns & rural markets with a dedicated sales force of 240 & marketing strength of 750 product specialistsAn investment of 40 crores have been made for this purpose

Elvista targeting therapeutic categories which have greater relevance in rural areas & preferred by doctors Like Anti-malarial , Anti –infective etcDivision had launched 16 brand including big brand Eldervit injectionDivision had already penetrated the rural markets of UP , Maharastra , Andhra & Bihar & soon will enter South marketCompany looking for smaller pack sizes (Sachet packs) for rural marketsOutreach techniques to target rural audience which includes Mobile Health ClinicsPlan for 2012 – 1500 villages with population of 40000-100000 & around 75 peripheral villages/towns around Mumbai metropolitan region

RURAL MARKETINGHimalaya Drug company’s Rural Initiatives – An exclusive interview Philipe Haydon, President and CEO, Pharmaceuticals, Asia-Pacific:

1. Company adopted a multi-pronged growth strategy for the pharma division which includes among other things focused promotion and wider exposure of our product range to more doctors across the country

2. Presently, Himalaya has over 50 pharma products for specific ailments targeted at men, women and children.

3. Shortly launching several pioneering drugs for treatment of lifestyle disorders like obesity, diabetes etc.

4. Researching treatments for terminal illnesses like cancer and AIDS and other serious conditions like Hepatitis B and C

RURAL MARKETINGHimalaya Drug company’s Rural Initiatives

5. Advanced research on tropical diseases common to rural areas in India including dengue, malaria and infectious and viral diseases.

6. Himalaya has launched a Strategic Business Unit called 'Zera' which will focus exclusively on expansion into Class II, III and IV towns and other rural areas. Plans to reach more than two lakh doctors.

7. Currently Himalaya has a presence in over 300 districts and plans to double this over the next two years.

8. This year concentrate on expanding its presence in rural areas in the North.

RURAL MARKETINGHimalaya Drug company’s Rural Initiatives

9. With entry into rural markets more people will have access to safe, affordable and efficacious healthcare. This will result in higher patient compliance.

10. Promoting health education and awareness which is an important part of their rural marketing initiative.

11. Through a combination of patient information leaflets made available in local languages, medical camps and health education workshops, we intend to raise the level of health awareness in rural areas.

12. Himalaya targeting 5 % market share in baby segment

RURAL MARKETINGHimalaya Drug company’s Rural Initiatives at Grass Root Level

1. Person handling Ghaziabad(HQ)- Noida- Gt Noida- Hapur- Bulandshahr- Dadri

2. Pead 120, Gyne 120, Derma 110 / Daily call Target 15

3. Samples unlimited / Communication Posters, Standees, Leaflets

4. Sales Target 350000- 400000 / POB both Primary & Secondary

5. RDS 2(Noida) 1(Ghaziabad)

6. Activity 1 (My Baby & Me Campaign)

7. Herbal products with superior quality at competitive price

JNJ - RURAL INITIATIVE

BCG MA

TRIX

BCG

MA

TRIX

LISTERINE

SAVLON

CLEAN & CLEAR

JNJ BABY

JNJ - RURAL INITIATIVE

BCG MA

TRIX

BCG

MA

TRIX

BABY PRODUCTS NEED MORE FOCUS TO

INCREASE BRAND LOYALTY

SAVLON NEEDS ADDING VALUE ON

EXISTING PRODUCT,RANGE FRAGNANCE ETC

C&C & STAYFRREE LOOK

FOR MORE OPPORTUNITY IN

RURAL AREAS

LISTERINE NEEDS TO PROVIDE

MORE CHOICES FLAVOURS

JNJ - RURAL INITIATIVESo here are some products which have the

potential to penetrate in rural areas Stayfree, Savlon, Baby Range, Listerine, Clean & Clear etc

MARKETING - 4PS

A. PRODUCT- 1. New product designs, keeping in view the rural life style2. Packaging must be simple yet eye catching 3. Brand name denoted by JNJ rather than writing the

full version on every corner4. Its picture that do rest of the talking ie not too

much data on the cover design5. Colours make a huge difference – Put some bright

colours like green, orange etc

JNJ - RURAL INITIATIVEB. PLACE –

1. Products should first penetrate in North Region as a pilot project in areas like UP, Rajesthan, Punjab under close observation

2. Move Step by Step ie start from Tier 1 to 2 check the response then Tier 3 to 4 & further

C. PRICE –

3. Prices must be low & easily affordable like Wipes 10 packs, TTT 50 ml etc

JNJ - RURAL INITIATIVED. PROMOTION –

1. Awareness can be done through advertisement on TV(Doordarshan), Radio

2. Small play (Nukkar Natak’s) in Hatts (rural markets) communicating the message

3. Puppet shows for increasing health awareness4. Putting posters & Banner 5. Creating awareness through NGO’s6. A KOL like Gram Sarpanch, Rural Dr, Old farmer can

have a huge impact for building awareness level7. All these communicating tools can have a huge

mass appeal

JNJ - RURAL INITIATIVESUPPLY CHAIN 1. Options available like tie up with some existing

FMCG players like HUL (Shakti), ITC e- Choupal etc

2. Follow a Hub & Spoke model like Coka Cola i.e. Big distributor in Tier 1 & 2 cities distributing to small distributor to Tier 3 & 4 cities & even further

3. Employee local people who know the area well in this way rural people will empower & build greater brand equity

4. Result in deeper penetration with less investment

JNJ – PM SUPPORTPM - Sales Team Coordination1. PMEs can cover rural areas near to their HQ, Ex-

Station 2. Simple yet effective frequent coverage (daily call)

Tier1 & 2 to Tier 3 & 4 and further3. Baby Activities HBC, PEP, BTW in hospitals & Clinics4. Monthly meet with Sales Team in the form of Super

30 Chemist, Top 10 Trackers , Training RDSSM5. Provide posters, pamphlets containing info on

bathing, messaging techniques etc to Hospitals, Nursing homes, Clinics to building health awareness

6. Do some Key Account Activities in Schools, Collages Retail Stores etc

7. Local Drs meet (conferences) in rural areas try to interact with HCPs there & promote JNJ products

8. Build health awareness among KOL (Rural Drs, Nurses, Gram Sarpanch, Old person etc )

JNJ – PM SUPPORTFor Ex- Previously (PEAD)I cover Ghaziabad (HQ) 40 Noida 40 Meerut 15 Agra 15 (110)

Now (PEAD)I cover Ghaziabad (25) Hapur (10) Noida (25) Gt Noida (10) Meerut (10) Modinagar (10) Agra (10) Mathura (10) (110)

Submitted byIshan GhoshPMEGhaziabad

….PRESENTING RURAL INDIA WITH A MODERN OUTLOOK….