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8/7/2019 rural markets final
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CO-OPERATIVES AND
RURAL MARKET
MISS. SHILPA MORE
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RURAL MARKET
GROUP NO - 09
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GROUP MEMBERS
THAKUR HIBAH 09B750
TONDWALKAR JAYESH 09B751
VARGHESE ROHAN 09B752
YADAV MAHESH 09B753
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RURAL MARKET
Rural Indian economy is showing growth in consumption.
This new consumption will include a high share of packaged
foods, personal care, durables, IT products etc.
FMCG
Rural purchasing power has increased.
Market will witness 40% annual growth in next fiscal 2011-
2012
First company to enter rural market : NIRMA
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About the company
Karsanbhai Patel chairman of Ahmadabad based Nirma Ltd.
Initial price Rs. 6
Proud owner of Rs 2,500 crore company.
Commands 35% share of the Indian detergent market.
Sells over 8,00,000 tones of detergent annually.
Market leader.
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Swot analysis
Strength:
Strong Brand equity.
Nirma is a Rs.17 billion umbrella brand offering consumers a
broad portfolio.
Produces a range of industrial chemical products
Market leadership in detergents market and fabric wash
industry.
Wide distribution network.
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Weakness :
Less presence in premium segment.
Lack global tie ups and thus lacking in export markets.
Opportunities:
Exports.
Acquisitions for strengthening its distribution tie ups.
Entry into other categories like shampoos, toothpastes and fabricwhiteners.
Threats :
MNCs coming to India particularly in Toilet and Soap industry.
Emergence of small but strong regional players.
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Competitor Analysis
HUL : Surf, Rin &Wheel
P& G: Ariel &Tide Henkel spic: Henko and Mr. White
Analysis:
Nirmas Strength has always been value for money.
It has managed to defeat many MNC with this policy.
First Brand to recognize the power of the Indian rural market.Strategies to Fight Competition:
By offering premier products
Tie-up with foreign players
Using mass media to counter smearing campaigns by competitors.
New style of packing.
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MARKETING MIX
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PRODUCT
PROMOTION
PLACE
PRICE
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PRODUCT :
Detergents Bartan bar
Bathing soaps
Beauty soaps
Premium soaps
Lime fresh
Hair care
Tooth paste
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PRICE :
Low priced detergent of reasonably good quality.
Well known fact that Nirmas best unique selling proposition
is PRICE. Not abide by minimum wage rules.
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PLACE :
Initially distribution network and sales force was a one-man
team.
Surfaced even in remote areas.
Consist of 1500 distributors.
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PROMOTION:
Does not start media assault until product is in place.
The little girl on the pack was the symbol.
Stockiest funded 50% of promotional expenditure for theirgoods.
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MARKET SEGMENTATION
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Rural market in India was considered as a homogeneous
It was the only lowest-priced brand available.
Approaches for segmentation of rural market.
Village size population.
Location with respect to nearby towns.
Rural market segmentation tools.
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Demographic segmentation:
The market is divided into groups on the basis of variables such as
age, family, sex, life cycle, income, race, religion, income, social
class etc.
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Income :
incomes determines the ability of the consumer toparticipate in the market exchange and hence this is a basic
segment variable.
Example :
Nirma was launched as the lowest priced detergent in India
primarily targeted at the middle-income segment of the
market.
Social class:
Social class has a strong influence on preference in clothing,
therefore to maintain it detergent will also be a preference.
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Psychographic segmentation:It is the science of using psychology and demographics to
better understand consumers
Detergent powders were considered as luxury products in
late 60s, Nirma with its unique price made it a easily
accessible for the masses, providing a luxury segment in
market at a low cost.
Clean washing: The advertisement shows the Nirma girl and
other actors in advertisements always in white.
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BRAND POSITIONING
This product has created a loyal consumer base of its own.
Launched a good quality product at affordable price.
The objective is to convert non-users into users.
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Nirma found its place between the expensive detergents and
inferior washing soaps slab.
The below points are important to understand the positioning
strategy applied by Nirma :
1. Value for money concept
2. Converted a luxury product into bare necessity product
3. Rural focus identified markets where others saw none,
achieved penetration where others felt consumers mindset
cannot be changed.
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