Ram a Ling Am

8/2/2019 Ram a Ling Am

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SATHYABAMA UNIVERSITY

Ph.D Screening Meeting

Submitted

By

P. RAMALINGAM


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A Study on Brand Positioning over Rural Market

Research on market Perceptions

& Brands Deliverables for

Detergent Brands in Tamil Nadu


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INTRODUCTION

The choice of selection depends on the

societal & the esteem value the brand givesto them.

There was a time when people only focused more on

the price factor while choosing a product or

service.

But now, from shampoo to foot wear, people go for

brands.


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Brand: A package of value, on which consumers

can rely to be consistently the same or better

over a period of time.

BRAND POSITIONING

To succeed, the first step is to position or situate the

brand in the target consumers mind in such a way, in his /

her perception of the brand, it is distinctive and offers a

persuasive customer value better than its competitors.

From Positioning: The Battle for Mind by Jack Trout with Al Ries


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Simply: Brand means PROMISE

BRAND POSITIONING


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THE INDIANRURAL MARKET


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India lives in its Villages

M.K. Gandhi


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As per Census of India:

Population density


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YOY, the Rural population is Increasing in

numbers and decreasing in percentage

The Indian Rural Market


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Noticeable increase in rural income

Government spending in rural India has tripled over the last

four years and is now translating into higher consumer spending.

99 % of the villages have a primary school within 1 km walk

DTH television connections in rural are more than double that

of urban and have grown dramatically;

Two out of fivenew mobile telephone connections are in rural.

Rural consumers are consuming more premium and

convenience oriented categories that are typical of their urban

counterparts

Features: Rural Market


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Features: Rural Market

40% of rural market has road connectivity 30 more in

coming decade

Increased standard of living due to the influence of urban

counterparts

Decreased physical gap between rural people with urban

counterparts due to transport development

BPL decreased from 46% to 27%


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Challenges: Rural Market

Diversified Heterogeneous characteristics: religion, caste,

traditions, social hierarchy, language, literacy, occupation, income

Low Population density

Communication facilities

Limited Media Choice: Low Newspaper reading low

Logistics, Storage, Distribution: Credit facilities, Availability of

distribution channels

Imitation products


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FMCG in Rural Market

Indias Rural FMCG Market will grow to $100 Billion by 2025

The spending power for FMCG in rural market has increased

More than half the largest FMCG categories, rural India is now

contributing more to their growth than urban reasonSmaller

packages

Premium skin care brands typically associated with urban areas

are growing nearly twice as fast in rural


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FMCG in Rural Market

Even a mere 2.5 percent of villages, if selected correctly, can

generate a 20 percent jump in sales growth

A surprising set of priorities: In rural areas, education of children

ranked second after having a good crop.

On the consumption front, a third of rural consumers are eating

biscuits for breakfast and one in six rural buyers of hair dye now

uses colors other than black to indulge in the trend of externalized

beauty that is picking up fast in rural areas.

Seemingly urbane brands in categories like deodorant and fabric

softener are growing much faster in rural India than urban


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Detergent Market Although the per capita consumption of detergents in India (2.7 kg pa)

is comparable to some countries like Indonesia, China and Thailand

(around 2 kg pa), it is lower than in others such as Malaysia, Philippines

(3.7 kg) and the USA (10 kg). The Indian detergent market is expected to

grow at 7-9% pa in volume terms

High consumer awareness and penetration levels will enable the

market to grow at an average 8-10% per annum with slightly higher

growth in the rural areas. Higher penetration stems from popularity of

low-cost detergents. Hence, besides increase in per capita consumption,

there is tremendous scope for movement up.


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Detergent Market

HLL dominates the premium segment, Nirma is the leader in the

popular segment.HLL, Nirma and P&G are the major players in the

market with 40%, 30% and 12% share, respectively in their segment.


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Purpose of the Study It has come to light that over 500 new brands of laundry bars and

over 200 washing powders have mushroomed in the year 2010 in

local and regional markets. These price-warriors, small in turnover

figures but large in numbers, are said to be gnawing at the market

shares of leading national detergent brands, forcing companies to

rethink pricing strategies.

According to AC Nielsen's data for all India (urban + rural), national

washing powders witnessed a volume degrowth of 4.8% in 2010,

while regional powders grew by 40.7%.

But the most notable thing is that most of the regional brands has

a very poor life time.


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Purpose of the Study Any where in the rural market, local brands imitating the leading

corporate brands are available in plenty. This creates a confusion in

the mind of the consumer while purchase / leads to go for a wrong

purchase. For Ex: An imitated brand for Rin could be like Rln, which

has no difference for a rural consumer who is just a literate. This will

definitely create mismatched/bad experience over the original

brand, about the performance of the product.

Also the market characteristic is typical to the core comparing to

the urban counterparts and hence it becomes very tough to arrive

for a common positioning.


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Scope of the Study To position a brand in the rural market, the companies attempt

many approaches to create a friendliness towards a purchase,

easiness in consumption and finally making the value for money

feel.

It is the key task for every brand to come first in the mind of a

consumer while he / she is going to purchasing a product. In a

market where people are heterogeneous, low literate and where

word of mouth dominates, every brand happens to occupy the

position in the rural household after a chain of tedious strategic

exercises only.


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Scope of the Study

So the thing is that every brand needs to position itself in the

market to have a concrete loyal consumers in the rural market.

Hence the researcher has the motive of investigating to analyse the

mind of rural consumer about the perceptions & expectations over

a satisfying detergent brand for making loyalty in his / her mind.

Then to analyse the marketing movements, brand building activities

of the brand towards the rural consumer.

And finally correlating these two things to find the gap, if there, for

making a perfect brand positioning.


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THANK YOU

Documents

Ram a Ling Am