Rural Marketing of Cosmetics

Rural Marketing
of Cosmetics
Introduction
• Overall growth of the economy has increased.
• Rural marketing is confused with agricultural
marketing .
• The saturation of the urban market .
• Rural marketing strategies are different from
the marketing strategies of urban.
Strategies of Rural Marketing
• Client and location specific promotion
• Joint or cooperative promotion..
• Bundling of inputs
• Management of demand
• Developmental marketing
• Unique selling proposition (USP)
• Extension services
• Business ethics
• Partnership for sustainability
What should Co.s keep in mind to get success
in rural market?
4A Approach:
• Availability
• Affordability
• Acceptability
• Awareness

Rise of Indian Beauty Market
• Market size
• Purchasing power of consumers
• Major players
• Marketing
• Rising incomes and demographics shifts spur sales
• Hindustan levers lead remain unassailable
• Focus on innovation and price-segmentation
• Mounting aspirations and an upbeat economy herald a bright
future
• positioning
Introduction to Godrej Consumer product ltd.
• GCPL is a major player in the Indian FMCG

market with a leadership in personal, hair,
household and fabric care segments.
• The company employs 950 people and has
three state-of-the-art manufacturing facilities
at Malanpur (M.P.) Guwahati (Assam) and
Baddi (H.P.)
GCPL Product Portfolio
• Soap – Cinthol – Evita – Godrej No. 1 – Fair
Glow
• Toiletries – Cinthol Talc – Godrej No. 1 Talc
• – Fair Glow cream
• – Godrej shaving cream
• – Cinthol perfumes
• Hair care – Godrej hair color dye – Renew
woman hair dye – Nupur hair dye – Color soft
hair color
Godrej no.1 soap
• Godrej No.1 soap was launched in 1922.
• This 86-year-old brand enjoys a volume market share of 6 per
cent.
• It is the 5th largest selling soap in the country and tops in
Punjab/Haryana with a 20 per cent market share.
• Godrej No. 1 soap rely on below-the-line promotions, and for
the past 5 years it has been selling at a 3+1 free offer in the
market.
• In 86 years, the brand has spent less than what a major soap
brand would spend in a month of heavy promotions (Rs 12-13
crore), according to the company.
Godrej Rural Marketing Strategy (Godrej No. 1 Soap)
• Godrej introduced Godrej No.1 soap enriched with natural

ingredients trusted by millions, the flagship brand of GCPL, is
now the largest selling Grade 1 Soap.
• Grade 1 is the highest standard laid down by the (BIS). Godrej
introduced it in competition with the Santoor, Breeze.
• Godrej in the initial stage introduced it as a mid segment soap
but after sometime it’s price was reduced and targeted to the
rural area.
• Variation strategy: introduced many variants to extend the
product line of soap.
Godrej No. 1 Talc and shampoo
• 100 Gms at Rs, 19/-
• 300 Gms at Rs 39/-
Quantity Bottle Sachet
100ml Rs 25 -
7 ml - Rs 1
3.5 ml - Rs.50
Distribution Strategy
• rural sales contribute one-third to the company's sales with the
balance coming from the urban market. Godrej Soaps' total
income was Rs 787 Crore in the fiscal 1999-2000.
• has set up a committee to improve and leverage distribution in
the rural markets of less than 5,000 population strata.
• The company has put in place three experiments
• carried out certain experiments in the below 10,000 population
strata rural markets to leverage distribution.
• The company has already set up a system of stockiest and
super stockiest in small towns with population of 10,000 plus
Distribution and Supply Chain
Virtual platform between company and distributors
●
Project Sampark Comprehensive business Intelligence enables in depth primary

●
and secondary sales analysis
●
Intensified rural approach, Presence in all locations with over
Increased penetration ●
10000 population
130 super stockiest, 2450 sub stockiest
Retail thrust Focus on availability of all products at all 600,000 outlets

●
Focus on modern retailing

●
Promotional tools used by GCPL
• Events- Advertising– Billboard – Hoarding –
Wall painting – Electronic media – Print media
- Sales promotion.
• relied heavily on the mass advertising like on
the TV, radio, and newspaper
• Conducted the events in which the rural people
have the interest. Some of the events are
navratna, yaara nachle, gold awards in
Mauritius etc
Sales Promotion
Promotional strategy
• GCPL has roped in Mona Singh of Jassi jasissi koi
nahi to be the brand ambassador
• “ All that Glitters is not Gold…All soaps are not
Grade 1 soaps.”
• campaign educates people the advantages of using
Grade I quality soaps that produce more lather, last
longer and thus is a great value-for-money
proposition.
• Godrej Soaps and Jassi both stand for the Sachchi
prakritik sundarta proposition
GCPL-Competitive edge
• Quality Policy
• Value for money product
• Distribution network
• Brand image
• Promotional edge
• Innovation strategy
• Strong product line
LIFEBUOY
• the world’s largest selling soap.
• Launched in the year 1895
• In 2002 Lifebuoy was relaunched, marking a
new turning point in its history
• The new Lifebuoy is targeted at today’s
discerning housewife
• Lifebuoy is no longer a carbolic soap with
cresylic perfume. It is now milled toilet soap
with a new health fragrance.
Lets see the 4 P’s of marketing of
lifebuoy in rural India…..
REPOSITIONING
• it is the single largest soap brand — with 20 lac
soaps sold every day and an estimated value of Rs
500 crore (600 million users annually).
• The relaunch of the 107-year-old Lifebuoy has been
done in a bid to drive growth in a sluggish soap
market.
• HLL challenged everything that Lifebuoy stood for -
perfume, formulation, size and shape.
• extending it to talcum powder and also testing a
herbal variant of this power brand.
PROMOTION
• TV and print campaigns,
focused attention on the
family health themes.
• conducted consumer
education exercise using
"Germ tests“.
• explored the communication
options during World
Health Day.
• created The Lifebuoy
Swashthya Chetana.
• HLL was also offering cross company product
mixes
• HLL used Mahakumbh mela as an opportunity
to change hand-washing and bathing habits in
rural India.
• Cinema van operations
PRICE
• Hindustan Lever Ltd (HLL) currently on a price
discount includes 150 gm Lifebuoy Gold (Rs 3 off),
• HLL is also expected to follow suit with its Surf
sachets
• HLL have deliberately introduced small pack sizes.
• Lifebuoy, HLL's largest selling soap brand, recently
introduced a Rs 2 SKU (stock keeping unit) of 18 gm
targeted at the rural market in the Bimaru States.
PLACE
• 70% of India's population resides in villages

• HLL has established a single distribution
channel by consolidating categories
• HLL has mounted an initiative, Project
Streamline, to further increase its rural reach
with the help of rural sub-stockiest.
PRICE
• Fair and lovely sachet costs Rs.10

• Brand extension – “active sunblock” lotion costs
Rs.30 for 25ml & Rs.60 for 50ml
FAIR AND LOVELY FOUNDATION
• Economic
empowerment of
women
• Careers
• Enterprise
• Education
Education
A. Background
• Scholarships are awarded annually to
deserving young girls.
• For higher education in India – Graduation,
Post-graduation and PhD
• Rs.100,000 scholarship is meant for women
“with an aptitude and ambition to achieve
their goals”
B. Communication Goals
• “Reliance
Communications’ R
World” platform
• Did not include the
traditional media – TV &
Print to break free from the
clutter of traditional
medium
• Entice the user to fill in
personal details after
sharing the Scholarship and
Fair & Lovely Foundation
information.
C. Media Solution & Execution
1. Banner Advertising
2. Fair & Lovely Scholarship Zone
3. SMS Blast
4. IVR
5. Short Code
6. Reliance Mobile World Website
D. What Makes the Idea a Winner
Emami
• FLAGSHIP COMPANY
OF EMAMI GROUP
• PERSONAL BEAUTY
AND HEALTHCARE
BUSINESS
• MANUFACTURES
THROUGH AN
EFFECTIVE
LEVERAGE OF
AYURVEDA
ACTIVITY DESCRIPTION
• PARTNERED WITH NGO’S AND BANKS
• OFFERS TWO TYPES OF SELF
EMPLOYMENT SCEMES
- EMAMI MOBILE TRADERS
- EMAMI SMALL VILLAGE SHOPS
• OFFERINGS OF THE SCHEMES
BENEFITS TO RURAL
• SPECIALLY TRAINED SELF – HELP
GROUPS
• MARKET SELF MADE PRODUCTS
• SUPPORT SMALL SCALE
MANUFACTURES IN RURAL INDIA
MARKETING STRATEGY
• THROUGH SALES - 11000 MOBILE
TRADERS, 2200 SMALL VILLAGE
SHOPS
• COLLABORATIONS WITH ITC e-
choupals
• CONSISTENT GROWTH BY POWER
BRANDS
Growth Strategies
• CELEBRITY ENDORSEMENT
• LAUNCHED FIRST ADVERTISING
COMPAIGN
• NEW LAUNCHES
• LEVERAGING ITS AYURVEDA ORIGIN
• GOOD DISTRIBUTION NETWORK
REASONS FOR SUCCESS
• SEASONAL DEMAND
• KEY FACTOR FOR SUCCESS
• ENTER OTC MARKETS
• INNOVATIVE PACKAGING
• OUTSOURCING
• WIDE NETWORK FOR DISTRIBUTION
• entry in cold cream
market
• natural goodness of
time tested ingredients
• innovative and quality
skin care product
• target customers
• research and
development
• packaging and pricing
Experience the five fold goodness of Emami Malai Kesar
Cold Cream – the perfect non greasy cold cream - and
face the winter with a soft and glowing skin.So, go on!
Khul ke ....khilo
• Promotion – create awareness , educating

retailers
• Disribution – 3.5 lakhs retail outlets
• Type of demand – seasonal
• Reason for success – association with
ayurveda based products
• Introductuon
• Media exposure
- increased literacy
level
• Indirect increase in
disposable income
• Rural youth
- evolving as opinion
leaders
TIPS FOR MARKETING BRANDS IN
RURAL INDIA
• Close to the heart of rural people
• pricing has to be value for money
• issues and solutions to it
- pricing
- promotion
- distribution
- brand
ETHNIC ROUTE
• Identifying specific values in a cultural context
• Identifying certain beliefs
• Combining elements of specific culture
• Capturing a sense of nostalgia
• Using stereotypes
• Identifying specific cultural traits
Thank you

Rural Marketing of Cosmetics

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Rural Marketing

• GCPL is a major player in the Indian FMCG

• Godrej introduced Godrej No.1 soap enriched with natural

Quantity Bottle Sachet

Project Sampark Comprehensive business Intelligence enables in depth primary

and secondary sales analysis

Retail thrust Focus on availability of all products at all 600,000 outlets

Focus on modern retailing

• 70% of India's population resides in villages

• Fair and lovely sachet costs Rs.10

• Promotion – create awareness , educating

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