RURAL MARKETING

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RURAL MARKETING

• PRODUCT CATEGORY

DEEPA RAGHURAMAN (43) SANDEEP PATIL (47)
JYOTIKA KATYAL (44)
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Market Analysis Scope

• Cosmetics market divided into Color Cosmetics
  and Toiletries
• Color cosmetics cosmetics for the eyes, lips,
  nails and face
• Toiletries skincare, hair care, fragrances, oral
  care, soaps, grooming
• Market Leader HUL (30 market share) followed
  by PG and LOreal
• Other players Revlon, Colorbar, Avon, Amway,
  Oriflame, Emami, Lotus, Shenaaz Hussain, Himalaya
  
• Fastest growing market in India though highly
  fragmented

• Urban areas account for 70 of sales
• Sales in rural areas limited to basic need items
  like talcum powder, soap, cream
• Small unit packs are the volume generators in
  rural markets

Euromonitor Report 2008
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Rural markets Consumer Insights

• Being fair is a basic necessity for being
  beautiful.
• Usage of cosmetic is prevalent in age groups 15
  Yrs women.
• Cosmetics are equated with daily face fairness
  cream and talcum powder.
• Cosmetic Brands helps make skin better, glowing
  and fairer.
• Open to the idea of using other brands, thus poor
  brand loyalty as in the case of non availability
  other brands are used.
• Extremely price sensitive market.
• Family Influence on decision making is high
  irrespective of the gender of the family member.
• Fascinated by the culture in the city and thus
  yearn to follow the same.

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Findings

• Recall high for creams and other toiletries as
  compared to color cosmetics.
• Fair Lovely (HUL) wins hands down while talking
  about daily use cosmetics while Lakme (HUL) is
  the only brand considered as a color cosmetic
  brand which is used only for special occasion.
• Lakme perceived as expensive thus only bought by
  slightly educated consumer who have access to it
  in beauty parlors and stores in the bigger
  markets.
• Older user (21 married) use a tube a month worth
  Rs.35 while teenagers who are college or school
  goers buy sachet on a weekly basis depending on
  the requirement and usage. (Fair Lovely users)
• Ponds (HUL) is the only brand people are aware
  off while talking about talcum powder brands
• Other brands that the women are aware of are
  Ponds cream, Fair Lovely, Fairever, Boroplus,
  Vicco, Lakme Himani.

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Findings

• Along with TV advertising, Peer influence, Word
  of Mouth advocacy are major reasons behind
  cosmetic purchase decision.
• Medical store vendors and shop keepers are more
  trustworthy as against salesmen from the company.
• Usage is twice a day once in the morning post
  bath and other in the evening.
• Consumers are well aware of counterfeiting and
  stay away from such tampered products.
• Brand loyalty is low with brand switch frequent
  amongst the consumers
• No POPs, proper display, etc in retail outlets.
• Lacks of proper distribution network, vendors go
  to bigger market to buy themselves and then
  resale it in the village.
• Very low margin available for the seller to cash
  on.

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Marketing Strategies

• To increase the market for our cosmetics brands
  like Lakme, Ponds and Emami in a market dominated
  by Fair Lovely
• Product
• Toiletries for mass market and color cosmetics
  for a niche segment (slightly educated)
• Price
• Low to moderate pricing.
• Packaging
• Smaller SKUs easy and convenient to use
• Place
• Stronger distribution network in Rural India -
  to ensure shopkeepers stock product
• Higher margins as opposed to Fair Lovely

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Marketing Strategies

• Promotion
• Advertisements on Television
• In serial branding with product placement in DD
  serials
• Relationship building Direct Contact Programs
  with villagers sales team to visit from time to
  time to increase awareness, induce trial and
  repurchase
• Find and target opinion leaders of the village
  to increase advocacy for our product
• POPs danglers, shop branding, bus shelters,
  buntings
• Target beauty parlors to stock and advocate our
  product
• Presence of stalls during Bazaar offering
  makeovers and sampling

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Creative Strategy

• Positioning Sampoorna Sundarta The promise
  of complete beauty
• Emotional appeal to grab attention
• Rational appeal to communicate product usage and
  its positives affects on beauty