Dabur's Rural Marketing Strategies
Dabur's Rural Marketing Strategies
By
Venkatesh Pratap Singh 2227060
MARCH 2024
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INDEX
1 INTRODUCTION 3
3 PROMOTION MIX 6
7 COMPETITOR ANALYSIS 21
8 RECOMMENDATIONS 31
9 REFERENCES 34
10 PLAGIARISM REPORT 35
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INTRODUCTION
Over the last decade or two, India's rural economy has seen significant changes. The rural
landscape has been transformed by rising earnings resulting from the country's economic
progress and increased exposure to metropolitan lifestyles facilitated by improved
infrastructure and connections. The increased demand for aspirational products over
conventional low-value commodities reflects this shift in rural customers' attitudes. Today's
rural consumers want to get the most bang for their buck and improve their quality of life by
using innovative technology, products, and services.
Dabur India Limited is one of the leading FMCG (Fast Moving Consumer Goods) companies
in India, renowned for its focus on natural healthcare and personal care products. Established
in 1884 by Dr. S.K. Burman, Dabur has evolved from a small-scale Ayurvedic medicines
manufacturer to a global conglomerate with a diverse portfolio of products catering to millions
of consumers worldwide.
At the core of Dabur's success lies its unwavering commitment to Ayurveda, India's ancient
system of natural healing. Dabur's journey began with the formulation of its flagship product,
Dabur Chyawanprash, an Ayurvedic dietary supplement known for its immunity-boosting
properties. This marked the beginning of Dabur's legacy in offering natural and holistic
healthcare solutions to consumers.
Over the years, Dabur has expanded its product portfolio to encompass a wide range of
categories including hair care, oral care, skin care, health supplements, digestives, and home
care products. Each of Dabur's brands is backed by extensive research and development,
leveraging the rich heritage of Ayurveda combined with modern scientific advancements.
One of Dabur's key strengths lies in its extensive range of herbal and ayurvedic formulations.
Brands such as Dabur Amla, Vatika, Dabur Red Toothpaste, and Fem exemplify the company's
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commitment to harnessing the power of nature to address various health and wellness needs.
These products are formulated using natural ingredients known for their efficacy and safety,
resonating with consumers seeking holistic and sustainable healthcare solutions.
Dabur's emphasis on innovation and product development has been instrumental in driving its
growth and market leadership. The company continuously invests in research and development
initiatives to introduce new products, improve existing formulations, and stay ahead of
evolving consumer trends. Dabur's state-of-the-art research facilities and laboratories are hubs
of scientific inquiry, where experts collaborate to develop cutting-edge products that meet the
highest quality and safety standards.
In addition to its focus on product innovation, Dabur places great importance on brand building
and marketing. The company's iconic brands enjoy widespread recognition and trust among
consumers, thanks to strategic marketing campaigns, endorsements by celebrities, and
extensive distribution networks. Dabur's marketing efforts emphasize the natural, herbal, and
Ayurvedic attributes of its products, appealing to health-conscious consumers seeking authentic
and holistic solutions.
Dabur's strong distribution network plays a crucial role in ensuring the widespread availability
of its products across India and abroad. The company's extensive distribution reach
encompasses a mix of traditional trade channels, modern retail outlets, e-commerce platforms,
and direct-to-consumer channels. Dabur's robust distribution infrastructure enables it to
penetrate deep into urban and rural markets, reaching even the most remote corners of the
country.
Furthermore, Dabur's global footprint extends to over 100 countries, where its products are
widely acclaimed and trusted by consumers of diverse cultures and backgrounds. The
company's international presence is bolstered by strategic partnerships, joint ventures, and
acquisitions that have enabled Dabur to expand its market share and tap into new growth
opportunities globally.
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MARKETING MIX OF DABUR PRODUCTS (4A’S):
1. Availability: Dabur ensures the availability of its products in rural areas through an
extensive distribution network. The company leverages a network of distributors,
wholesalers, and retailers to penetrate deep into rural markets, reaching even the most
remote villages. Dabur also employs innovative distribution strategies such as mobile
vans and direct-to-home delivery services to enhance product availability and
accessibility in rural areas.
2. Affordability: Recognizing the price sensitivity of rural consumers, Dabur offers
products at affordable price points without compromising on quality. The company
introduces smaller pack sizes and value packs to cater to the budget constraints of rural
consumers. Additionally, Dabur implements promotional schemes, discounts, and
price-off deals to make its products more accessible and appealing to rural consumers.
3. Accessibility: Dabur focuses on enhancing the accessibility of its products by ensuring
they are available in convenient formats and packaging suitable for rural consumption.
The company invests in packaging innovations that are durable, easy to handle, and
suitable for transportation and storage in rural conditions. Dabur also provides
informational materials and product demonstrations in local languages to educate rural
consumers about the benefits and usage of its products.
4. Awareness: Dabur employs targeted marketing and communication strategies to raise
awareness about its brands and products among rural consumers. The company utilizes
a mix of traditional and digital marketing channels, including television, radio, print
media, and social media platforms, to reach rural audiences effectively. Dabur also
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collaborates with local influencers, community leaders, and grassroots organizations to
amplify its marketing messages and foster trust among rural consumers.
PROMOTION MIX:
Public relations - This form of promotion influences how people see the brand. Companies
that use public relations strive to establish a strong and appealing brand image by planting
fascinating news articles about their operations in the media. However, the firm does not have
complete control over public relations, as some reviews and webpages may cast a poor light on
the brand. People will reward a company with positive word-of-mouth consideration if it
successfully resolves these difficulties.
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Personal selling - A sales person and a potential customer have a one-on-one conversation.
People are influenced by direct selling to acquire certain products or services. Because the sales
professional can target specific individuals who are most likely to make a purchase, it is one of
the most effective means of promoting your business. However, because businesses must pay
for one person's time, this is the most expensive type of promotion mix.
Rural markets are sensitively powerful and promotion of products to reach the rural market has
been of utmost important with respect to creating awareness and converting them to sales. The
benefits of better infrastructure and media reach have been used promotion team of the
organisation as well as ad producers. Because a substantial chunk of rural India is now glued
to television sets, most firms advertise their products and services on television and are
confident that it reaches the intended audience. Advertisement, sales promotion, personal
selling, publicity, and public relations are among promotional strategies that marketers need to
choose from. To summarise, promotion in rural markets is all about creating awareness
Certain promotional methods such as advertisement, sales promotion and personal selling may
be similar for rural market also but there are rural specific promotional techniques which is
highly successful in creating awareness, attracting the rural audience, converting them into
customers, successful brand stickiness and brand loyalty among them. The approach of
promotion in rural must fit the market's expectations. Vehicle ads, edutainment films,
developing positive word-of-mouth publicity through opinion leaders and reference groups,
colorful wall posters, promotion through haats, melas, mandis, folk theatre etc. have all been
successful in reaching out to the rural population. Village fairs and festivals are also used as
ideal platform for better promotions. In some circumstances, public gatherings with the
Sarpanch and Mukhiya are also used to promote rural development. Music cassettes are another
efficient rural communication medium that is also relatively less expensive. Hence rural
promotional mix consists of following elements:
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· Mass media (TV ads, Print ads, Radio ads)
· Sales promotions
· Public relations
· Video vans/Raths
· Direct marketing
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community engagement, Dabur successfully promotes its products in rural markets, driving
brand awareness and preference among rural consumers.
PROJECT BUNIYAAD
Project Buniyaad by Dabur in rural India is a flagship initiative aimed at fostering holistic
development and improving the quality of life in rural communities across the country.
Launched with the vision of empowering rural inhabitants and uplifting their socio-economic
status, Project Buniyaad encompasses a range of initiatives spanning healthcare, education,
sanitation, and livelihood development.
At the core of Project Buniyaad is the commitment to enhancing healthcare accessibility and
quality in rural areas. Recognizing the significant healthcare gaps prevalent in rural India,
Dabur has undertaken efforts to establish and strengthen healthcare infrastructure in these
communities. This includes the construction and renovation of health centers, clinics, and
dispensaries, equipped with essential medical supplies and facilities to cater to the healthcare
needs of rural inhabitants. By improving access to healthcare services, Project Buniyaad aims
to address prevalent health issues, reduce mortality rates, and enhance overall well-being in
rural communities.
In addition to healthcare, education emerges as a key focus area under Project Buniyaad. Dabur
recognizes the transformative power of education in driving socio-economic progress and
empowering individuals to break the cycle of poverty. As part of the initiative, Dabur supports
the development of educational infrastructure in rural areas, including the construction of
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schools, classrooms, and educational facilities. Furthermore, the project extends its efforts to
enhance the quality of education through teacher training programs, provision of educational
resources, and implementation of innovative teaching methodologies. By promoting education
and literacy in rural communities, Project Buniyaad seeks to equip individuals with the
knowledge and skills necessary to pursue brighter futures and contribute meaningfully to
society.
Moreover, Project Buniyaad places a strong emphasis on sanitation and hygiene promotion as
integral components of rural development. Dabur recognizes the critical importance of
sanitation in preventing diseases and improving overall health outcomes, particularly in rural
areas where access to clean water and sanitation facilities may be limited. To address this issue,
the project supports initiatives aimed at promoting safe hygiene practices, constructing
sanitation facilities, and raising awareness about the importance of sanitation and hygiene
among rural inhabitants. By promoting good hygiene habits and improving access to sanitation
facilities, Project Buniyaad endeavors to create healthier and more hygienic living
environments in rural communities.
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Dabur's Swalamban Program is a shining example of Corporate Social Responsibility (CSR)
in action. It specifically targets rural youth, aiming to bridge the gap between their potential
and employability. Let's delve deeper into this initiative to understand how it empowers young
people and contributes to their overall well-being.
Focus on Skill Development: The program recognizes the importance of relevant skills for
securing jobs in today's competitive market. It equips participants with vocational training in
three key areas crucial to the FMCG (Fast Moving Consumer Goods) sector, particularly
Dabur's business:
• Sales: This equips youth with the necessary selling techniques and knowledge to
effectively promote Dabur's products.
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Pathway to Potential Employment: One of the biggest draws of the Swalamban Program is
the possibility of landing a job with Dabur upon successful completion of the training. This
guaranteed employment aspect acts as a strong motivator for rural youth, offering them a clear
career path and a chance to build a future within a reputed company.
Beyond Skills - Building Confidence: The program goes beyond just technical skill
development. It also likely incorporates elements of soft skills training, which are essential for
success in any job role. This might include communication skills, teamwork, and problem-
solving abilities. By honing these soft skills, the program equips youngsters with the confidence
to navigate professional settings and excel in their careers.
Building a Stronger Workforce: By investing in the skills and potential of rural youth, Dabur
is not only creating a pool of qualified candidates for itself but also contributing to the
development of a stronger overall workforce in rural India. This can have a positive ripple
effect on the entire FMCG sector, as other companies can also benefit from this skilled talent
pool.
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Project Double is a strategic initiative by Dabur that leverages the power of data analytics to
identify villages with high potential for economic growth. Here's how it works:
Data-Driven Approach: Project Double gathers information from various sources. This might
include:
• Demographics: Age distribution, education levels, family size, etc., can indicate future
workforce potential and consumer needs.
Identifying the Gems: By analyzing this data, Project Double creates a scoring system to
identify villages with a combination of factors that suggest high growth potential. These factors
might include:
• Rising disposable income: This indicates a growing consumer base with the ability to
buy more products.
• Market access: Good infrastructure allows for easier movement of goods, facilitating
trade and business development.
Tailored Strategies: Once high-potential villages are identified, Dabur can develop targeted
strategies for those specific areas. This could involve:
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• Marketing & Distribution: Strategies might involve focusing marketing efforts
through local radio, fairs, and wall paintings, coupled with strengthening distribution
networks to ensure product availability.
• Rural Sales Force: Project Double might support the Swalambh program (mentioned
earlier) to train local youth for sales and promotion roles, creating a rural sales force
familiar with the local market.
Benefits: Project Double offers a win-win situation for both Dabur and rural communities:
• For Dabur: It helps them tap into a high-growth market by offering relevant products
and optimizing marketing efforts.
• For Rural Communities: Increased sales can lead to more jobs and economic activity,
while access to essential products improves quality of life.
• Data Availability: Accessing accurate and up-to-date rural data can be difficult.
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ASTRA (Advanced Sales Training for Retail Ascendance) is a comprehensive program
launched by Dabur to strengthen its sales capabilities and boost sales in rural India. It's a six-
month customized training initiative designed to equip the Dabur sales force with the skills and
knowledge needed to excel in the rural market.
Focus on Regional Nuances: ASTRA recognizes the unique challenges and opportunities
presented by the vast rural landscape of India. The program incorporates audio-visual training
materials in regional languages, ensuring effective communication and cultural sensitivity
when interacting with rural retailers.
Channel-Specific Training: Understanding that different sales channels have distinct needs
and expectations, ASTRA caters to various segments like key grocers, wholesalers, chemists,
and modern trade outlets. This tailored approach ensures the sales force receives training
relevant to their specific roles and channels.
Addressing Key Issues: The program tackles critical areas that can impact rural sales
performance. Here are some potential areas of focus:
• SKU Focus: ASTRA might train the sales force to optimize the selection of Stock
Keeping Units (SKUs) for rural stores. This could involve focusing on smaller pack
sizes, high-demand products, and understanding local preferences to ensure optimal
product availability.
Benefits of ASTRA:
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• Enhanced Sales Performance: By equipping the sales force with the right skills and
knowledge, ASTRA can significantly improve sales figures in rural India.
• Reduced Channel Conflict: Effective conflict resolution skills can lead to a more
streamlined distribution network and improved product availability.
Overall, ASTRA is a strategic investment by Dabur in its rural sales force. By bridging the
knowledge gap and fostering cultural sensitivity, ASTRA empowers the sales team to navigate
the unique challenges and opportunities of the rural market, ultimately contributing to growth
and increased brand presence in rural India.
Dabur, a leading FMCG (Fast Moving Consumer Goods) company in India, recognizes the
immense potential of rural markets. However, achieving consistent distribution and market
penetration in these areas presents unique challenges:
DISTRIBUTION BOTTLENECKS
Distribution bottlenecks pose significant challenges for companies like Dabur in penetrating
rural markets effectively. Let's delve deeper into these bottlenecks, providing examples and
elaborating on their implications:
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Rural areas often suffer from poor road connectivity and scattered villages, making it
challenging for traditional distributors to reach every corner. For instance, consider a remote
village in Madhya Pradesh where the roads are poorly maintained, and transportation
infrastructure is lacking. Dabur's Honitus cough syrup, a popular product in rural regions, might
not reach this village due to the absence of a distributor. This results in a missed opportunity
for Dabur to tap into a potentially lucrative market segment.
Rural markets are dominated by small Kirana stores with limited shelf space. Dabur's extensive
product portfolio may overwhelm these stores, leading them to stock only the most popular
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items. For example, during non-winter seasons, niche products like Dabur Chyawanprash
Immunity Booster might be neglected in favor of more universally demanded products.
Imagine a Kirana store in a rural area of Uttar Pradesh where the owner, faced with space
constraints, opts to stock only fast-moving items like Dabur Red Toothpaste and Dabur Amla
Hair Oil, neglecting other products that could have seasonal demand.
Dabur's heavy reliance on wholesalers in rural markets can lead to inefficiencies in distribution.
Wholesalers may prioritize readily available products from competitors over Dabur's offerings,
affecting the availability of Dabur products at the retail level. For instance, consider a village
in Maharashtra where a local wholesaler, influenced by competitive pressures, focuses on
stocking hair care brands other than Dabur's Amla hair oil. This results in decreased visibility
and availability of Dabur products in the market, impacting sales and market penetration.
Marketing and awareness issues present significant hurdles for companies like Dabur when
targeting rural markets. Let's delve into these challenges, providing detailed examples to
illustrate their impact:
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Rural areas typically have lower exposure to marketing campaigns compared to urban centers.
Consequently, brand awareness for products like Dabur's might be lacking among rural
consumers. For instance, consider a village in Andhra Pradesh where traditional herbal
remedies are prevalent and widely known. Despite the effectiveness of Dabur's Lal Tail baby
oil, which is well-established in urban markets, rural consumers might be unaware of its
benefits due to limited exposure to marketing efforts. This lack of awareness could result in
missed opportunities for Dabur to capture a significant share of the market in such regions.
Rural populations often speak diverse languages and dialects, posing a challenge for
standardized marketing communication. Generic marketing materials in languages like Hindi
or English may fail to resonate with local audiences who prefer communication in their native
tongue. For example, imagine a village in West Bengal where Bengali is the predominant
language spoken. In this scenario, a promotional campaign for Dabur's Real juices conducted
in Hindi or English might not effectively convey the product's benefits or resonate with the
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target audience. By contrast, a Bengali-language promotion tailored to the local dialect could
significantly increase consumer engagement and drive sales in the region.
FAILURES:
In 2012, Dabur made a strategic move by launching a new toothpaste variant aimed at
tapping into the rural market segment. However, despite the company's efforts, the product
failed to gain traction and eventually faced withdrawal. The primary reason behind this failure
can be attributed to the mismatch between the marketing strategy and the target audience's
specific needs and preferences in rural areas.
The marketing campaign for the new toothpaste variant was primarily tailored to appeal to
urban millennials, overlooking the distinct characteristics and requirements of the rural
consumer base. Unlike their urban counterparts, rural consumers often have different oral care
habits, preferences, and economic considerations. For example, while urban millennials might
prioritize attributes like whitening or breath freshening, rural consumers might prioritize
factors such as affordability, traditional ingredients, or medicinal benefits.
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The struggles faced by a Dabur distributor in a remote village of Rajasthan, as highlighted
in a recent news report, shed light on the significant challenges posed by poor road
infrastructure in rural areas. The distributor's difficulties in ensuring timely delivery of goods
due to infrastructure limitations have had a direct impact on stock availability and sales in the
region.
Rural areas, particularly in states like Rajasthan, often face infrastructural deficiencies,
including poorly maintained roads and limited transportation facilities. These challenges make
it arduous for distributors to navigate and reach remote villages, resulting in delays and
disruptions in the supply chain.
The repercussions of these logistical hurdles are manifold. Firstly, delayed deliveries lead to
stockouts at local retailers, depriving consumers of access to essential products and popular
brands like those offered by Dabur. This not only undermines customer satisfaction but also
erodes trust in the brand and affects its market presence in the region.
Secondly, the impact on sales is significant. Stockouts not only result in immediate revenue
loss but also contribute to long-term repercussions such as decreased customer loyalty and
market share. Consumers may turn to alternative brands or suppliers to fulfill their needs,
potentially leading to a loss of Dabur's market position in the area.
COMPETITOR ANALYSIS:
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Rural India accounts for 35 percent of overall FMCG spending, and rural consumption is
growing at a rate of 3 to 5% faster than urban consumption. In metropolitan regions, consumer-
facing businesses are enjoying an overall increase in volume, but competition and the war for
market share are growing. Companies have had to reduce product pricing due to margin
concerns, forcing them to explore for new customers.
Rural markets are becoming increasingly significant to FMCG companies, as they account for
roughly 70% of the country's population and a sizable consumer class. The article explains how
Hindustan Unilever Limited (HUL) reaches out to remote areas and capitalises on business
opportunities. The following are the main strategies adopted by HUL to penetrate better into
Rural market of India.
Project Shakti:
HUL launched Project Shakti in 2001 with the goal of increasing demand for its products in
tiny villages especially personal care items like Lifebuoy soap across India and bringing
visibility to these areas. It also provides livelihood chances for rural women who work as Shakti
Amma's under this scheme (SA). HUL's rural direct-to-consumer retail distribution effort,
Project Shakti, has enrolled over 45,000 women entrepreneurs from 18 different states. The
Shakti Amma's serve as product ambassadors. HUL appoints Shakti Ammas through using
village panchayats to find impoverished women. They train them to be saleswomen, and after
that, she invests a modest sum of money to purchase HUL products to sell. As a result, a Shakti
Amma serves as HUL's last-mile connectivity in small villages where appointing distributors
isn't cost-effective. Shakti Amma sells the product by putting up a tiny business in her home or
selling door-to-door. Shakti Amma sells the products to the village's retail businesses as well.
Shakti Amma's are taught how to sell products and persuade people to buy by HUL sales
trainers. Shakti Amma becomes a familiar figure in the hamlet as she visits the homes on a
daily basis with her wares, and she begins to gain trust with the locals over time. As a result,
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she finds selling to be a simple task. She also has the advantage of persuading people in their
own language. HUL established the 'Shaktimaan' project because it is difficult for women to
commute greater distances and distribute products in nearby communities. HUL provides
bicycles to 'Shaktimaan,' who are men from the Shakti Amma family who transport
merchandise.
Consumers in rural areas are primarily daily wage earners with lower disposable incomes who
are more price sensitive. As a result, FMCG companies have experimented with pack sizes.
HUL's products, which range from soaps and personal care items, are sold in Rs. 5 and Rs. 10
bundles in rural areas. Its product pricing might sometimes be as low as Rs. 2. Smaller packs
help HUL fit rural clients' income streams and are also considered as a means for HUL to reach
first-time users. HUL also competes in the villages against local brands with its tiny pack –
cheap pricing strategy also provides different variants in smaller pack size for the rural
consumers which is extremely appealing and popular.
Distributing goods to these mom-and-pop shops would be difficult and expensive, so HUL
came up with a solution about six years ago: hire some of the larger businesses to function as
sub-distributors. Owners of the so-called "superstores" obtain discounts on Unilever products.
Thus, the good network of distribution channels has helped HUL occupy a top market share in
Rural market.
Hindustan Unilever in India has adapted a typical activity among thrifty cell phone users – the
missed call – to produce audio entertainment for rural areas using mobile technology. Mobile
phone users dial a number, then hang up before being charged, despite the fact that the other
person can see who phoned. It's a means of informing someone that you'd like to contact them.
In a pilot promotion for its Active Wheel detergent in some of India's poorest and most rural
locations in 2011, HUL took use of the technique. People were asked to contact a number that
disconnected after two rings, so there was no cost to them. A free call back included some
comedic chat from Bollywood celebrity Salman Khan as well as Wheel advertisements. HUL
received 16 million calls in four months, and Wheel sales in the region tripled. In a pilot
promotion for its Active Wheel detergent in some of India's poorest and most rural locations in
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2011, HUL took use of the technique. People were asked to contact a number that disconnected
after two rings, so there was no cost to them. A free call back included some comedic chat from
Bollywood celebrity Salman Khan as well as Wheel advertisements. HUL received 16 million
calls in four months, and Wheel sales in the region tripled. Even for Lifebuoy soap special
health and hygiene campaigns are organised which doubled the awareness and sales of the
soap.
It reached a population of 5 crores in 15000 villages with advice on how to keep infections at
bay by washing hands. It took two approaches: A) HUL hired Health Development Officers
and Health Development Assistants to visit all of the villages and educate the people through
lectures and community gatherings. B) After 2 months, they returned to the communities and
distributed toys, badges, and medals to children who had made it a habit to wash their hands
regularly (as evidenced by the preserved "Lifebuoy" soap wrappers), as well as a diploma to
the children who had received the most KHUSHIYON KI DOLI
HUL launched the first multi-brand rural interaction module. The campaign's major goal was
to reach out to media-dark communities with HUL brand messages and to engage deeply with
consumers in order to influence brand adoption numbers quickly. Wheel, Surf Excel, Fair &
Lovely, Sunsilk, Vim, Lifebuoy, and Close U were among the HUL personal care and home
care brands engaged.
2-GODREJ:
PRESENCE OF GODREJ
Godrej Consumer Products Ltd (GCPL), ensuring that its products fly off the shelves of village
stores has been the overarching goal. GCPL launched Project Dharti (Dharti is the Hindi word
for Earth) in April 2009 to strengthen the company's attention on rural India. The program's
objectives are to generate sales in rural India that surpass the contribution of the country's urban
areas within a year; that rural sales growth outstrip overall sales growth; and that GCPL's
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distribution network expand to 50,000 villages and 8,000 small towns across India within three
years. In 2008-09, rural markets accounted for around 38% of GCPL's income, and the
corporation already had a presence in 15,000 villages and 4,000 small towns when Project
Dharti was established. After Hindustan Unilever, GCPL is India's secondlargest bath soap
maker. The firm says that their Godrej No.1 brand is the best-selling Grade 1 soap and the
market leader in north India (the highest rating given by the Bureau of Indian Standards based
on fat content; toilet soaps have a higher fat content than bathing bars).
Unique customisation:
Customizing the size of the Proposition, not the product itself, is the answer. GCPL has done
exactly that, delivering smaller packages of the same products at affordable prices for rural
consumers. Smaller soap bars, herbal henna packets for 10 cents, powder hair dye sachets, and
talcum powder sachets for 20 cents serve as entrance points for rural customers, who then
return for larger packs when their budgets allow. Consumer goods sales in rural marketplaces
peak soon after harvest, as well as during festivals and wedding season (September to
December), when many of India's 600,000 villages are in a "have cash, will spend" mindset.
For its Expert range of hair colour products, GCPL is relying on word-of-mouth brand building
in particular. The company is contacting 50,000 barbers and salons across nine states to invite
them to participate in a co-branding effort. The salons add the "Expert" tag to their names as
part of the programme, and all fixtures, including mirrors and chairs, prominently display the
GCPL brand emblem. Grooming kits will be provided to the salons, which will include hair
dye, a mixing bowl, and a brush, as well as other GCPL items like talcum powder and shaving
cream. GCPL's reach in the hinterland will be boosted by the Expert barbershop network. In
the last year, the company has extended its distribution network to include 7,000 villages and
2,000 small towns.
Pricing:
The importance of price points cannot be overstated. Godrej has also begun releasing nano
packs with prices ranging from Rs 5 to Rs 10. A few months ago, it debuted Nupur (mehndi)
in Rs 5 and Rs 10 packets, in addition to Godrej No. 1 (Rs 5), Cinthol (Rs 6) and Expert (Rs
10). All these has helped Godrej climb up the ladder in sales.
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"Patanjali Products" is a phrase that means "Patanjali
Baba Ramdev adopted the "Pull" method rather than the "Push" strategy. Patanjali Products
were introduced to the market at the 'right moment and at the right place.' And now it's
Patanjali's turn. Patanjali relies on product cost leadership, and as a result, several multinational
corporations have been pushed to lower their product costs. Baba Ramdev has millions of
followers who 'trust' him and his statements both in India and overseas. Patanjali has become
extremely popular as a result of word-of-mouth advertising and widespread usage of social
media such as 'Whatsapp,' which has resulted in an incredible surge in sales in both urban and
rural India. The study uncovered the elements that contribute to Patanjali's appeal in rural areas,
as well as PAL's lagging efforts that are hurting rural consumers' purchasing decisions. Out of
curiosity to try a new product, 42% of rural consumers prefer to purchase Patanjali products.
In rural areas, the pattern of everyday product consumption is shifting. Many products have
been widely available in rural markets at any time and in any location for the past few years,
but rural consumers increasingly want to experience something new and better. Because they
are Ayurvedic, Patanjali Products are popular with 38 percent of rural consumers (natural). The
firm's 'Ayurvedic' positioning has less of an impact on rural consumers since rural consumers
appear to be less knowledgeable of Ayurveda and its value. The price penetration strategy has
helped Patanjali go deeper into the rural market. The one drawback the company faces is
finding the appropriate distribution strategy for rural market.
4-PALMOLIVE INDIA:
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Palmolive India has also been moving well in the rural space with its unique personal care
products. Rural India spent $69 billion between 2009 and 2012, much more than the US$55
billion spent by urban residents. Rural India accounts for almost half of India's GDP and nearly
two-thirds of the country's population. APPROVED STRATEGIES Colgate used the following
marketing methods to enter the rural market with their low-end product, Cibaca Top: 1.
Promotional Strategy for 'Sampark' Colgate recruited Sampark, a rural advertising specialist,
to advertise their product in the Indian countryside. The main strategies utilised were door-to-
door selling and the utilisation of A/V vans (advertising vehicles). These vans were stationed
in strategic locations across the villages on key market days in order to reach a larger audience.
Additional initiatives implemented by Sampark included the use of local salespeople to break
down communication barriers and the showing of educational films on dental hygiene. The
focus of the campaign was on schools, which aligned with Colgate's "Young India, Bright
Smiles, Bright Futures" school dental education initiative developed in partnership with the
Indian Dental Association. 2. Distribution Strategy - Van Model Colgate insisted that its
distributors be 'Intellised,' meaning that billing information should only be digitised using
company software. In the allotted rural area, they distribute the product to wholesalers and
retailers. The corporation then reimburses the distributors for their losses. In order to entice
distributors, the company offers an additional 10% reimbursement credit on the price of items
supplied to wholesalers and retailers, in addition to the initial 5% discount. Wholesalers and
retailers benefit from a 15 percent profit margin. 3. Strategy for Rs 8: Cibaca Top was launched
by Colgate-Palmolive (India) Ltd. at an economical price point of Rs. 8, and it was an instant
hit, with Cibaca Top capturing 5.9% of the rural market. Cibaca focused on the low-cost market,
which accounted for around a quarter of overall category volume. Colgate Cibaca competes
with brands such as Babool and Anchor in the low-end market. Cibaca was chosen by
customers because of its inexpensive pricing, flexibility, and quality assurance. Furthermore,
as the population and purchasing power of individuals grows, the demand for toothpaste grows
as well.
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Thus, all the above players along with with Marico occupy a good position in the rural space.
Therefore, Dabur needs to come up with unique products, promotion and distribution strategies
to penetrate better and prevail in the rural market.
5-MARICO:
Marico Limited is an Indian multinational consumer goods firm that specialises in health,
beauty, and wellness products and services. Marico has offices in over 25 countries across Asia
and Africa, with its headquarters in Mumbai. It owns brands including Parachute, Saffola, Hair
& Care, Parachute Advanced, Nihar Naturals, and Mediker in the hair care, skin care, edible
oils, health foods, male grooming, and fabric care areas. The firm has a revenue of 7,315 crores
in the fiscal year 2019–2020. Pondicherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun,
Baddi, and Paonta Sahib are among Marico's eight Indian factories.
Marico Ltd, the manufacturer of Parachute coconut hair oil, is the most recent corporation to
join the rural bandwagon. According to the business's consumer products CEO Saugata Gupta,
the company is now trying to broaden its product offerings to appeal to rural areas. In terms of
providing strategy, we haven't increased our services yet, but we are considering it now since
a critical mass of portfolio is required in rural areas. We've focused on market activation,
distribution, and price thus far. We will examine our offering and portfolio in rural regions in
the future, since we believe this will provide the next drive for growth. Rural markets today
account for nearly a quarter of Marico's sales. It has lately chosen to put greater emphasis on
expanding rural distribution and providing a variety of stock-keeping units (SKUs) tailored to
these areas. Marico's rural sales climbed 15% faster than its urban sales, which grew roughly
9-10% for the quarter ended June 30, 2010.
PRODUCT
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In this category, it is the market leader. It has established itself as a purist platform. As a result,
it has immense equity and confidence with each successive generation, as well as loyalty in
both the urban and rural sections of India. Marico produces two types of coconut oil. The
Parachute edible grade cum hair oil is the first product, while the Parachute Advanced Hair oil
is the second.
The Parachute edible oil is made entirely of coconut oil, whereas the Advansed hair oil is made
partly of mineral oil and partly of coconut oil. However, it should be noted that mineral oil has
been linked to the development of cancer in rare situations. The essential oils of ylangylang
(also known as cananga tree) are used in Parachute Advanced to give the hair a rich and deep
scent. It's lighter than other coconut oils, and it comes in a set that includes both the oil and a
head massager. It's used to make a hot and revitalising champi (head massage). Parachute After
Shower, Parachute Therapy to Reduce Hair Fall, and Parachute Advanced Starz are the other
types of oil. It is a line of hair care products designed specifically for youngsters aged 3 to 10.
With frequent usage, hair strength might grow by up to 16 percent.
Approaching of customer
Customers are drawn to the goods because of its high quality, and it lives up to the brand. It is
the finest hair oil, and it is utilised by the majority of the country's population. People are drawn
to the product because of its transparency, which also provides fine texture and growth to all
types of hair.
Parachute Campaign
It advertises in print, on television, on the street, and online. It also promotes the brand through
van commercials and haats in rural regions. In 200 ml, a 20% additional sales promotion was
provided. Diya Mirza, Deepika Padukone, Yuvraj Singh, and Sreesanth are the product's brand
advocates. Every year, before Holi and during the winters, the product is heavily advertised. In
television, the Parachute Advanced campaign included the taglines "1 hour champi kiya!" and
"Gorgeous Hamesha."
Magazines, 2-day print adverts for parachute therapie, and newspapers are examples of print
media. The festive season promotion is also included in the sales promotion. The parachute
jasmine oil is for ladies aged 18 to 24 who wish to feel confident while still honouring their
origins' traditional values and culture. The campaign features a radio commercial that offers a
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45-day hair treatment with parachute therapy. Facebook, Twitter, and Instagram are examples
of online advertising, and they all have a strong presence.
As part of the Parachute Anti Loose Oil Rural Campaign, rural marketing campaigns were
conducted. From the use of loose coconut oil to the use of the Parachute Pouch Pack, there is
a 25% conversion. In the villages, the Van campaign draws a huge crowd and is a popular
choice, particularly in rural communities. The 45-day therapie idea was approved by 75.3
percent of registered clients. To reach a total of 25, 98, 311 rural people, a total of 12,061
courtyard meetings, 1070 Baul performances, and 490 school campaigns were held. In Tamil
Nadu, the programme turns loose oil customers into parachute pouch buyers.
The slogan of Yuvi and Sreesanth's Parachute after shower hair gel ad is "Impression ek din me
nahi banta." A mother and son commercial for Starz cream gel is included in the Health+Style
campaign. The brand's motto, "Power of 5-Har Boond Mein Zyada," is perfect for conveying
all of Parachute coconut oil's alternative beauty purposes.
6-EMAMI:
Emami Group, based in Kolkata, India, is an Indian multinational corporation. This group is
known by the moniker Himani. The firm has seven production facilities in India and one in the
United States. In the personal care and healthcare areas, the company caters to a variety of
specialist categories. The company's goods are offered in more than 60 countries and 4.5
million retail locations in India. Their most well-known product is Boro Plus, an antibacterial
cream that is extensively used across the world. In the financial year 2019–20, the company's
skincare division earned an overall sale of 2,655 crores, with an annual profit of 639 crores.
The company's overall group revenue is around 20,000 crores.
Emami is relying on its Project Dhanush effort, which it started three years ago and has one of
the biggest exposures to rural areas among its rivals. Emami has grown its footprint to almost
20,000 communities with a population of roughly 3,000 people in the last three years as part
of this programme, which aims to reach the deepest and most distant of geographies. "Through
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point-of-purchase exposure, van branding and visual merchandising at outlets has shown to be
an effective customer influencer fueling rural channel expansion."
Emami is preparing to strengthen and cement its position in the rapidly growing rural sector.
Emami intends to increase sales staffing and introduce new brands and product expansions to
achieve this goal. "The corporation is also looking into possible acquisitions to expand its
position in these markets." We should discover appropriate value in acquiring a firm in the
personal care market, which is a competitive field. This year, Emami will increase its frontline
sales personnel by 15%. The company's rural sales division currently employs over 400
individuals. In 2010, the corporation launched Project Swadesh to expand its reach into rural
regions. Emami recruited stockists to sell its products on mobile vans as part of the strategy.
They were able to minimise expenses and lessen their reliance on wholesalers as a result of this
decision. During the fourth quarter of this year, Emami's net sales increased by 15.3% to Rs
404 crore. Net sales of Rs 1454 crore represent a 16.6% increase over the previous year. During
the quarter, EBITDA increased by 52.5 percent to Rs 82 crore.
Emami Affordability
Emami has devised a price plan to compete with the products of all other FMCG companies.
Emami has had success breaking into the rural market. The firm has introduced a variety of
sachet and low volume package items with the notion of pocket-friendly products in mind.
BoroPlus sachets costing Rs. 5 and Fair and Handsome sachets costing Rs. 10 make the goods
accessible to all sections of society. Emami continues to refine their pricing approach. Emami
7 Oils in One has just been decreased in price to pass on the GST advantage to customers. The
brand's 50 ml bottle will now cost Rs. 30 instead of Rs. 32, the 100 ml bottle will cost Rs. 55
instead of Rs. 60, and the 200 ml bottle will cost Rs. 105 instead of Rs. 115.
Emami is one of the category's biggest spenders on advertising and marketing. India is a market
of over a billion people, with the vast bulk of the population living in rural areas at the bottom
of the economic pyramid. It's both price sensitive and emotionally charged. This part reacts to
the attraction of a well-known celebrity. With the goal of creating an aspirational atmosphere
and memory, they pioneered the notion of endorsements and in-film advertising. The
promotions were designed to grab people's attention. The brand ambassadors were chosen
based on the business's needs and the star's compatibility with the brand.
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Emami has received over 60 celebrity endorsements to date, including Amitabh Bachchan,
Shah Rukh Khan, Rekha, Kangana Ranaut, Juhi Chawala, Sourav Ganguly, Sunny Deol, and
others. It encourages the use of a balanced mix of print, broadcast, and digital media. For
greatest coverage, advertisements are shown on television networks like as Star Plus, Zee
Cinema, Sony TV, Colors, and others, as well as sports stations. In addition, the brand is
promoted through a variety of ATL and BTL initiatives. Emami was also active in beauty
pageant sponsorships, such as the Kolkata Fashion Week in 2009. To encourage and foster
consumer loyalty, the organisation also offers a variety of incentives and discounts. In addition,
these deals generate a lot of sales and income.
RECOMMENDATIONS
2. Product Alignment: Some of Dabur's products may not be aligned with the specific
needs and preferences of rural consumers. The company's product portfolio might lack
offerings tailored to rural lifestyles and preferences, leading to lower demand and
market penetration.
3. Retailer Influence: Rural retailers often wield significant influence over consumer
purchasing decisions. If Dabur fails to establish strong relationships with these retailers,
it may struggle to secure prominent shelf space and promotional support, limiting
visibility and sales.
4. Competition: The rural market is fiercely competitive, with both local and
multinational brands vying for market share. Dabur faces stiff competition from
established players as well as emerging brands that may offer more localized or
affordable products.
5. Positioning: Dabur's positioning in rural markets may not resonate effectively with
consumers. The brand perception might be perceived as too premium or urban-centric,
alienating rural consumers who prioritize affordability and value.
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6. Awareness: Low brand awareness among rural consumers presents a significant hurdle
for Dabur. Limited exposure to marketing campaigns and promotional activities may
result in a lack of familiarity with Dabur's products and their benefits.
1. Distribution Strategy:
2. Product Development:
o Conduct market research to identify gaps in the product portfolio and develop
offerings tailored to rural consumers' needs and preferences.
3. Retailer Engagement:
4. Competitive Strategy:
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o Tailor marketing communications to resonate with rural consumers,
emphasizing affordability, quality, and relevance to their everyday lives.
2. Digital Outreach: Leverage digital platforms like social media, mobile apps, and
online marketplaces to reach rural consumers who have access to smartphones and
internet connectivity. Create engaging content in vernacular languages to connect with
them effectively.
6. Traditional Media: While digital platforms are important, traditional media such as
radio, print, and outdoor advertising still hold significance in rural areas. Invest in
targeted advertising through local newspapers, radio stations, and hoardings
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REFERENCES:
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