RURAL MARKETING

Presented By:Tinaaz Wadia 56Jimit Doshi 57Kunj Kothari 58Shermin Kadiwal 59Meet Gala 60

FLOW OF CONTENT

Business StrategyReasons To Go RuralOur Product: Logo, Tagline, Demonstration, Features,

USP Why Green Chulha?First Market- Villages Of MaharashtraOur Business Strategy: Product StrategyPricing StrategyDistribution StrategyPromotion StrategyFurther Plans: New Variants, ExpansionConclusion

An eminent personality once asked a gathering- If you see a woman in a village milking a cow, do you see an opportunity?

Most did not reply and the ones who did reply, replied in the negative. But that is exactly where Dr. Varghese Kurien saw an opportunity and it gave birth to one of the most successful organizations of India- AMUL

OUR BUSINESS STRATEGY: GOING RURAL

Large consuming class with 41% of India’s middle class and 58% of total disposable income.

Opportunities for new entrants as compared to urban population.

Growing at about two time faster pace then urban markets.

Improve quality of life

The large number of consumers

Largely untapped markets

Market size

Increase in income; disposable income

Willingness to try new products

No effects of slow down on rural markets

REASONS TO GO RURAL

GREEN CHULHAAb khana banao pyar se!

OUR PRODUCT

Product: Green Chulha

Tagline: Ab khana banao pyar se

Slogan: Chulha lagao mazedaar khana banao!

GREEN CHULHAAb khana banao pyar se!

DEMO

FEATURES OF GREEN CHULHA

Steel body Loading capacity- 30 kgs Protruding flame

protection cover Easy grab handles Easy pull grate with ash scraper Leg tripod for stability and airflow No maintenance or cleaning Less space required

USP of our product: light weight, easy to use and fuel efficient

WHY GREEN CHULHA?Did you know?150 million households in India cook on firewood1.6 million people die annually due to indoor air pollution caused by firewood based cookingGreen Chulha mitigates 2 tonnes of CO2e per stove per annum saving up to 8kgs of wood weekly

Drawbacks of traditional chulhas:

• Immovable

• Emission of smoke

• Less efficient

• Over consumption of fuel

• Difficult to start fire

• 70% of India still cooks on traditional chulhas

Traditional Chulha

Green Chulha

WHY GREEN CHULHA?

Save 70% fuel costSuited for cowdung,

agrowaste, wood, charcoalReduced cooking timeMinimize harmful emissionsConvenient cookingProvides comfort and

portabilityEfficient for all kinds of

cookingLess wood consumptionTime saving

Characteristic

Green Chulha

Traditional Mud Chulha

Thermal Efficiency

32.098 10

CO/CO2 Ratio

0.0265 0.5-2.5

Burning Rate

0.85 1.5-2.0

FIRST SOLD IN RURAL AREAS OF MAHARASHTRA

• In recent years, 70% rural households have started saving/investing their income

• High acceptance of new technology.

Maharashtra is one of the fastest developing states in India in terms of technology.Bounded by tradition, culture, religion & community.

• 60% of rural income is from Agriculture

• More than 50% rural households have monthly income < Rs 25,000

FIRST SOLD IN RURAL AREAS OF MAHARASHTRA

• Rural Maharastrians more often purchase in small quantity.

• Quality matters but value for money is of prime importance

• Large untapped market- good opportunity for new entrants.

Number of villages in Maharashtra

OUR BUSINESS MODEL

Based on 4 A’s approach of Indian rural market our strategies were planned. The strategies are as follows:

Product Strategy

Pricing Strategy

Distribution Strategy

Promotion Strategy

PRODUCT STRATEGY

In rural India, stove is one of the most important consumer durable goods.

While developing the product for rural markets, it is important for us to take decisions on product attributes like quality, features, design and style.

A simple design, absence of gimmicky features, convenient to use- a few points taken into consideration while deciding product strategy. Our product strategy includes the following:

• Small units

• Low priced packing

• product design

• Product branding: color, size, features.

PRICING STRATEGY

In rural markets, consumers look at the value for money. They do not perceive the premium value of brands.

Understanding all the factors influencing price the following strategy was formed:

• Low cost (value for money)Two types of Chulhas-

For farmers, priced at Rs. 900

For households, priced at 1100

Though priced lower than competitor’s price ie 1050 and 1350

• Psychological pricing

• Avoid sophisticated packing

DISTRIBUTION STRATEGY

One of the major hurdles in rural markets is availability. There is a demand for products, but many companies do not have a distribution network. To solve this problem the following distribution strategy will be used:

• Rural Wholesalers- Galla Kirana

• Tie Up With Local SHG (Self-help Group)

• Rural Malls, Eg: Godrej Aadhaar, Warana bazar

• Haats

• Distributors On Bicycles, Mobile Traders

PROMOTION STRATEGY

Our promotion strategy focuses more on generating “awareness”, “interest” and “conviction” among the audience through appropriate media usage along with direct marketing, folk media, etc. Our promotion strategy is as follows:

Launch of the product on Vata Purnima- a traditional festival in villages of Maharashtra

Rural advertisements: Doordarshan, Colors channel;

Advertisements before movies

Press/Print media: newspapers like:

Outdoor media: Wall paintings in places that will generate lot of visibility. Eg: near panchayat bhavan, bus stop, cinemas

Vata Purnima

PROMOTION STRATEGY

Demostration in panchayat

Establish relations with retailers

Haats, Melas & Jatras (regional fair): contests, interactive games

Sales promotion:Special promotions on days of Diwali, Maglagouri Puri, Gudi Padwa, Ganesh Chaturthi

Discounts to group of 5, chain commission

Folk media: folk dances- Dindi and Kalafolk theatre, magic shows

demonstration

Haat in rural Maharashtra

FURTHER PLANS

Like every organization we have a future plan. It includes the following targets:

• Expansion- tapping Gujarat and Madhya Pradesh

• Achieving lower cost of production

• New variants: colours and sizes

CONCLUSION

Maharashtra consisting of a million villages is a huge untapped markets willing to accept newer technology.

On understanding the need, culture, income and mind set of people in rural Maharashtra “Green Chulha” was created.

There are challenges yet in rural markets like distribution network, low capita income, electrification though it’s an untapped market

Thank You