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GROUP 3
SWARIT YADAV (14PGP051)
KIRTI RAI CHANCHAL (14PGP084)
FMCG
(P&G, Colgate Palmolive, Pepsico, Coca cola and
Godrej agrovet)
Beauty and Personal Care in FMCG
Procter and Gamble
About Industry
Beauty and Personal Care Registers
Strong Growth, Driven by
Increased Awareness
International Players Continue To
Dominate the Competitive Landscape
as urban becomes stagnant
New Product Launches Focus on
Variants and price points
Internet Retailing Will Be the Next Big
Distribution Channel in DRI
GROWTH PROSPECTS
Large Market:-
• India has a population of more than 1.150 Billions which is
just behind China.
• According to the estimates, by 2030 India population will
be around 1.450Billion
• Will surpass China to become the World largest in terms of
population.
• FMCG Industry which is directly related to the population
is expected to maintain a robust growth rate.
MARKET OPPORTUNITIES
Vast Rural Market:-
• Rural India accounts for more than 700 Million consumers,
or ~70 per cent of the Indian population and accounts for
~50 per cent of the total FMCG market.
• The working rural population is approximately 400
Millions which is an untapped market for rural fmcg
• The market for FMCG products in rural India is esti-mated
~ 52 per cent and is projected to touch ~ 60 per cent within
a year.
Competition
Major Players in terms of
market share
1. Unilever
2. Colgate palmolive
3. P&G
4. Dabur
5. L’Oreal
6. Godrej
Unilever Group
Colgate-Palmolive Co
Procter &
Gamble Co, The
Dabur India Ltd
L'Oréal Groupe
Godrej Group
Reckitt Benckiser Plc
ITC Ltd
Wipro Ltd
Marico Ltd
Johnson & Johnson
Inc
Emami Ltd
Amway Corp
Oriflame Cosmetics
SA
Beiersdorf AG
CavinKa
re Pvt
Ltd McNroe
Chemical
s Pvt Ltd
Raymond Ltd
Hygienic Research
Himalaya Drug Co,
The
Revlon Inc
2014
East and North East India
• Trends
• Beauty and personal care in East and
Northeast India increased by 15% in
current value terms in 2014.
• This growth was driven by the increased
use of deodorants, mouthwashes/dental
rinses and mass firming/anti-cellulite body
care, which grew by 23%,
• Consumers in East and Northeast India
continue to prefer natural beauty and
personal care products and home-madeproducts.
• Competitive landscape
• Hindustan Unilever continues to have the
strongest presence in East and Northeast India.
• The use of hair oil is very common as a conditioner,
and one of the brands which has its primary
consumer base only in this region is Dey’s Medical
Stores Mfg’s Keo Karpin
• Prospects
• Expected to see a value CAGR of 5% at constant
2014 prices during the forecast period 2014-2019.
• Continue to have an affinity for home-made
remedies and natural products, as these are
considered healthy and better, without any side-
effects
North India
• Trends
• Colour cosmetics registered growth of 23% in current
value terms in North India in 2014. home-made
products.
• Biggest consumer base in India
• Hence more flamboyant and also have the tendency to
try new brands and products in beauty and personal
care.
• Do it yourself kits becoming popular
• service providers such as beauticians and hairdressers
also registered growth
• Competitive landscape
• HUL and colgate palmolive market leader due to
strong distribution network
• Companies such as Lotus Herbal and VLCC Personal
Care gained significantly in 2014, because they
increased their penetration strongly and multi
channel marketing
• more inclined to buy branded and luxury products,
as the per capita income in this region is the
highest in India,
• Prospects
• Expected to see a value CAGR of 6% at constant
2014 prices during the forecast period 2014-2019.
South India
• Trends
• the second biggest region in terms of value sales in
beauty and personal
• South India mostly remains warm, as a result of
which the use of oil-control products, whether
in hair care, skin care or colour cosmetics
• Competitive Landscape
• HUL and colgate-palmolive again market leader mainly
due to regional celebrity endorsement and high
penetration
• Prospects
• Expected to see a value CAGR of 6% at constant
2014 prices during the forecast period 2014-2019.
• Unconventional products such as dental floss,
mouthwash/dental rinse, foundation, firming/anti-
cellulite body care and anti-agers, amongst others,
will drive growth in South India
• The literacy rate in India is highest in the southern
states, as a result of which the knowledge and
awareness of these products is highest in this
region, and hence their use is more accepted on a
regular basis.
West India
• Trends
• disposable incomes in the region are amongst the
highest, with Maharashtra and Gujarat being located in
this region
• consumers earn more in this region, and are willing to
spend more in order to look good.
• the launch of most premium brands and retail outlets
takes place in West India because of presence of
mumbai
• , consumers in this region are aware of these brands
and have access to international brands faster than any
other consumer base in the country
• Competition
• HUL is market leader with well established market
presence and brand image
• strong affinity for herbal brands and products, with
companies such as Lotus Herbal, Dabur India and
The Himalaya Drug Co being quite popular.
• Prospects
• Expected to see a value CAGR of 6% at constant
2014 prices during the forecast period 2014-2019.
• Higher disposable incomes and a willingness to
spend amongst upper-class and upper-middle-
class households in first tier and second tier cities
such as Pune, Mumbai, Kolhapur and Nagpur will
drive growth in West India.
•
Rural Vs Urban India
• Trends
• Basic beauty and personal care products such as talcum
powder, bar soap, eye liner, standard shampoos, hair
oil, toothpaste and moisturisers continue to have the
highest penetration in rural India
• The use of relatively more expensive products, such as
shower gel, deodorant, regular hair conditioner and
colour cosmetics, amongst others, registered higher
acceptance amongst rural consumers in 2014
• Consumers have lower disposable incomes in rural
India, as a result of which manufacturers of premium
brands have not entered this market,
• Consumers continue to have negligible knowledge of
such products.
•
• Competition
• HUL , Colgate plamolive and Dabur are market
leader with streamlined market penetration efforts
• Prospects
• Sales to rural consumers are expected to continue
growing rapidly, as the leading manufacturers will
continue to carry out marketing campaigns and
social campaigns to encourage consumers to use
their products.
• The differences between rural and urban
consumers will continue to be pack size and variant
type.
• For rural consumers brands may stick to basic
variants, whereas for urban consumers new
innovations will be seen more frequently.
SECTORAL
OPPORTUNITIES
There are 4 Major Key Sectoral
opportunities for Indian FMCG
Sector are:
Dairy Based Products
Packaged Food
Oral Care
Beverages
Future Prospect
• Threat –
– High portion of unorganized trade,
– The limited distribution network of new entrants
– The pressure on profit margins due to increasing
competition.
• Still Industry prospects remain attractive
Procter and Gamble
HISTORY OF P&G
• Started in 1837 by William Procter and James
Gamble.
• First products were soaps and candles.
• Procter and Gamble has nearly 300 brands in
more then 160 countries.
• Main Headquarter in Cincinnati, Ohio.
• Employs 138,000 people in 160+ countries.
SWOT ANALYSIS
Product
Innovation
Well
Established
And Strong
Brand
Market
Penetration
Untouched
rural market
Excellent
R&D
Department.
Developing
Market.
Gillete, Old
Spice
Acquisition.
Intense
Competition.
Rising Prices
Of Raw
Material.
Removal Of
Import
Restrictions
Resulting In
Increasing
Competition.
4 P’s
Hygiene
& Health
Care
• Feminine
Care
• Health Care
Home
Products
• Fabric Care
• Hair Care
• Baby Care
Gillette
• Gillette
Shaving
• Duracell
• Oral B
Other
• Olay
• Old Spice
• Camay
PRODUCT
PRICE:
It varies according to product.
PLACE
•Through Strategic account management team develops supply
chain improvements that boosts the sales by 9%.
•49 other places other than India.
PROMOTION
•Print and electronic media have effective recall & persuasion
scores.
•Celebrity Endorsement.
Rural Initiative
Project Shiksha II:
Educating Underprivileged
Children
Rebuilding Lives for
Earthquake victims in
Gujrat(2001/2002)
Project Poshan: Fighting
Malnutrition in India
(2000)
Project Open Minds:
Educating India’s Working
Youth (1999)
Project Drishti: The First-
ever Sight Restoration
Programme in India (1999)
TRENDS AND TECHNOLOGY
Self Service
Equals Labour
Saving
Quasi
Personalized
advertisement
Integrating
Brick &
Mortar and
Online Stores
TOP 10 FMCG IN INDIA
0
100
200
300
400
500
600 536
137 121
91 84 77 70 62 56 34
Top 10 in India
Profit(in crores)
AWARDS
Pepsico
• Generic Value Chain
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• Service Packaging
COMPANY
COBO FOBO
WAREHOUSE
C & F DISTRIBUTOR
WHOLESALER SLUMS RETAILER
RETAILER CUSTOMER
CUSTOMER
SALESMEN SALESMEN
• Distribution Points
• Company (PepsiCo): PepsiCo India provides
the salt to all the bottling plants in the
Country that carry out the bottling
operations.
• COBO: These are Company owned bottling
operations operating directly under the
Company. Out of 32 bottling plants, PepsiCo
owns 15.
• FOBO: These are Franchise owned bottling
operations. R K Jaipuria group does all the
franchisee-bottling operations for PepsiCo
India; currently R K J Group has 17 bottling
plants for Pepsi.
• Distribution Points
• Warehouses: These are Company or franchisee
owned warehouses spread over various locations
that cover the respective territories and come
under the purview of their respective Area or
Territory Offices. Stocks are sent from the
bottling plants to these warehouses, from where
they are sent to the C & F centers and Distributor
Points.
• C & F Centers: These are the biggest centers in
the distribution network and receive proper
assistance from the Company (either COBO or
FOBO). The C & F center is owned by a private
player and not by the Company. The vehicles
(Delivery Vans) are owned by the Company, and
the Salesmen at the C & F points are on the
Company Payroll.
• Distribution Points
• Distributors: These are small, compared
to C & F centers. Everything at the
Distributor point owned and managed
by the distributor, even the salespersons
are on the Distributors payroll.
• Wholesalers: These are smaller than C
& F centers and Distributor points and
get the stock directly from the Company
or Franchisee. They get their stock
directly from the Company and thus get
special rates and extra discounts from
the Company.
• Distribution Points
• Slums: They are generally smaller than
the Wholesalers are. However, they get
special discounts from the C & F centers
and Distributor points.
• Retailer: Retailers are the most
important chain in the distribution
channel of Pepsi as they are the only
point of contact with the customers.
Retailers get their stock from all the
other channel members in the
distribution channel.
• 4 P of Pepsico with
reference to rural
Product
•the 300ml bottle and now days
the new small or commonly
known as the “chota pepsi” is
very much popular
•successful in introducing the big
1-1.5 liter PET bottles in the rural
markets popular during festivals
and marriages
• 4 P of Pepsico with
reference to rural
Price
•A price point of Rs 10 for a 300
ml bottle has proved a major
deterrent hence unsuccessful
•200ml Pepsi was reasonably
priced between Rs.5- Rs.7.
•Areas of concern
•200 ml offering should not
cannibalize 300 ml sales
•Hence was used as an
introductory offer
• 4 P of Pepsico with
reference to rural
Place
•successfully test marketed in
Bangalore, Baroda and
Coimbatore
•Successfully implemented the
hub and spoke model through its
rural activation team.
•developed special freezers that
allow its products to stay chilled
despite power cuts of three to
four hours
• 4 P of Pepsico with
reference to rural
Promotion
•Unveiled a major campaign in
Andhra Pradesh, roping in top
Telugu film star, Pawan Kalyan,
•Started rural focused tvc with
sachin tendulkar and amitabh
bacchan in kite fight with rural
theme and sachin playing with
rural kids while rural voiced song
as background
• Coca-Cola India has chosen to go hightech and
set up Wi-Fi services at 12 of its 16 stalls
where people can download free Coke-Studio
music.
• The strategy has paid off: it has logged more
than 11,000 downloads a month since the
nearly two-month fair began.
• Coke isn't experimenting with too many new
products.
• Instead, it is focusing on deeper penetration
of existing products.
• In rural India, Coke is already experimenting
with the hub-and-spoke system, for which it is
partnering distributors.
• Own Your Fridge Scheme
• Measurable tool to measure sales team and
distributors performance in the outlets with
respect to all parameters of sales
– Cooler
– Brand Pack Availability
– Channel Activation
• Rural brand ambasador
– Aamir khan
• Smart
• simple
• In a research it is found that
– Highest consumption of cold drinks at home is
during festival season, functions
– Rural phenomenon of birthday and anniversary
– Hospitality to urban visitors
• Rural consumption
– On picnic/get-together, marriages and routine outings
– While having alchol
– Lower during travel and along with food consumption
– Lower after school/college consumption
• Youths in rural share a single bottle with friends
• Coca cola campaign “thanda matlab coca cola”
is an example of undifferentiated marketing
• The ad targets both urban and rural markets
• For rural areas the positioning statement
should be the generic benefit of the product
like thanda matlab coca cola
• Strategies to counter fakes
– Coca cola put in place 48 consumer response
coordinators
– These coordinators will work with their teams to
redress consumer complaints about overcharging and
spurious botttling
– The company have large number of route salesman
who have one to one relationship with the retailers
• Attracted rural consumer by halving the price of a
200-ml bottle to Rs 5
• Rs 5 is pyschological price point
• Greater than Rs 5 means the consumer have to
break Rs 10 note
• The psychology is that once a consumer spends
Rs 6-7 on any product, he/she will end up
spending whole Rs 10
• Coinage pricing at Rs 5 addresses this
pyschological barrier
• The real reason of 200 ml package was to get
rural people used to packaged beverage
• Rival pepsiCo also tried to match the price in
this price war
• Now both of the companies have droped this
strategy
• Coca cola also launched a powder-based
beverage called vintigo at Rs 2/satche
• It was launched in orissa villages
• PepsiCo also announced to launch the same
for malnutrition and deficiencies
• Coca cola first india foray faltered due to
insufficent attention to refrigration
• Refrigration is a critical criteria in the purchase
of the cold drinks
• Refrigrators and electricity is scarce in india
• In hinterlands of uttar pradesh the company
provides the shop owners with brine coolers
• Now the product can be chilled up to 12 hours
without electricity
• The company also have trade agreements with
local ice makers to address the bottleneck
• Coca cola university on wheels
– Named as Parivartan
– 20 seater buses for mom-and-pop retailers training in
tier II and tier III towns
– Objective was to help retailers to
• Survive
• Compete
• Sustain
• Grow in fast changing retail space
• 20 retailers were selected with 300-sq. ft kirana store
were selected
• They were taught the tricks of the trade with the help
of audio visual aids in a 2 hour session
• Training content was designed on
– Customer
– Shop
– Stock
– finance
• Most retailers adopted the new trade practices
• Now company is developing ‘Advanced parivartan’. This
will cover
– Shop layout
– Location
– Display
– Basics of finance
– Credit card knowledge
– People management skills
• Program has covered 30,000 retailers
including agra, ludhiana, chandigarh and
lucknow
• The aim is to train 100,000 retailers in next 2
years
• Distribution model
• Company understood that the central
distribution system is not effective in rural
• In central distribution situation is like
Bottling
Plant
Retail
stores
• Taking stock directly from bottling plants to
retail stores would be very costly due to the
long distances to be covered
• The company instead opted for a hub and
spoke distribution system
Bottling
plant
spokes
retailer
retailer
retailer
Hubs
• Hub and spoke distribution system
– Stock was transported from the bottling plants to
hubs and then from hubs, the stock was
transported to spokes which were situated in
small towns
– These spokes fed the retailers catering to the
demand in rural areas.
• Also changed the type of vehicles used for
transportation
– Company used large trucks for transporting stock from
bottling plants to hubs
– Medium commercial vehicles transported the stock from
the hubs to spokes
– From spokes to village retailers the company utilized auto
rickshaws and cycles
– hand carts to even camel carts in Rajasthan and mules in
the hilly areas
• CCI made an additional investment of Rs 7
million
• It also purchased 5,000 new trucks and auto
rickshaws for boosting its rural distribution
• Coverage of 81,383 villages in 2001 to
1,58,342 villages in August 2003
COLGATE PALMOLIVE
Oral Care in India
Key Facts
• Oral care sees current value growth of 13% in 2014, to reach INR94.0 billion
• Manufacturers focus on additional benefits in oral care products
• Toothpaste remains the biggest category, with an 80% share of value sales in
oral care in 2014
• The average unit price increases in 2014 due to premiumisation and inflation
• Colgate-Palmolive India continues to lead oral care in 2014, with a 48% value
share
• Oral care is expected to see a value CAGR of 5% at constant 2014 prices in
the forecast period of 2014-2019
Trends
• Brand extensions and additional benefit toothpastes, such as acid neutralisers, whitening
and gum care products, remained the focus for toothpaste manufacturers e.g Colgate
visible white
• Mouthwashes/dental rinses, relatively new products in India witnessed the highest
current value growth of 37% in 2014
• Per capita consumption, especially in toothpaste, is significantly lower compared with that
in other developing countries. It is a quarter of the per capita consumption in Brazil, and
half of that in China
• Consumers in rural areas are gradually switching from toothpowder to toothpaste
• manufacturers continued to premiumise oral care by extending their brands into
whitening
Competitive Landscape
• Colgate-Palmolive India continued to lead oral
care with a 48% value share
• The company held a value share of 50% in
toothpaste and 43% in toothbrushes in 2014
• Colgate Visible White by Colgate-Palmolive India
Ltd saw the fastest value growth of 80% in oral
care in 2014
• International companies such as Colgate-
Palmolive India and Hindustan Unilever
continued to dominate oral care in India in 2014
• Domestic company Dabur India was in third
position in value terms in 2014.
Colgate
Pepsodent
Close-Up
Braun Oral-B
Colgate
Cibaca
Babool
Colgate
Active Salt
2014
Prospects
• Oral care is expected to increase by a value CAGR of 5% at constant 2014 prices over the
forecast period, to reach INR117.2 billion by 2019
• Volume growth is also expected, as manufacturers are increasingly urging consumers via
promotions to increase the amount of toothpaste used for brushing, and also to brush twice a
day.
• Whitening products are expected to perform better during the forecast period
• This segment displays higher than average growth rates in terms of value sales, and this will also
encourage manufacturers to extend their brands even further
• Consumers will opt for traditional herbal-based toothpastes e.g Dabur lal toothpaste
• Launches in the future are expected to be innovative products dealing with specific issues in oral
care, rather than general oral care products.
Colgate Palmolive milestone
• 1806: Company is founded by William Colgate in New York to make starch,
soap, and candles.
• 1873: Toothpaste was launched
• 1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet
Company.
• 1937: the company moved into India.
• 1966: Palmolive dishwashing liquid is introduced .
Colgate Palmolive milestone in India
• 1937: launch first toothpaste Colgate dental cream
• 1949: launch tooth powder and toothbrush
• 1950: Palmolive shave cream
• 1976: launch programme “young India.”
• 1989: Palmolive extra care soap launched.
• 2003: launch oral health month program
Colgate Palmolive products
• ORAL CARE:
• Tooth paste
• Colgate Total 12
• Colgate cibaca
• Colgate Sensitive
• Colgate Active salt
• Colgate Max Fresh
• Colgate Fresh Energy Gel
• Tooth brush
• Colgate360
• Colgate Zigzag
• Colgate Cibaca
• Tooth powder
Colgate the dominance continues
• present in the domestic oral care market for the last 70 years
• dominant position in the toothpaste segment with a 48% market share in
the domestic market
• Cibaca was acquired by Colgate in 1994 from Ciba Geigy. The company
today has two main brands in the toothpaste segment – Colgate and
Colgate Cibaca.
Strong distribution
• 940 direct accounts
• 3.8 million retail outlets.
• 2nd most widely distributed product
in the country.
• The company is tying up with
initiatives like Echopal and Disha to
further strengthen its distribution
network.
The Brand equity of Colgate
 Colgate was ranked No 1 brand in all
categories surveyed by annual brand power
survey India.
 In 1997 Colgate calciguard and Colgate plus
get IDA seal of acceptance
 Colgate was rated “India's premier brand”
by A&M annual survey of India's top brand.
 No 1 brand in India- surveyed by Taylor
Nelson MODE
The Brand equity of Colgate
• “Best employer India”- surveyed by BT Hewitt
• 2003-05 ranked “Most trusted Brand in India” Surveyed by AC neilson ORG-
MARG.
• 2004 celebrated Colgate health month.
PROMOTION
• Colgate skillfully
communicate to rural market
with a much larger but
scattered audience
characterized by variations in
language, culture and
lifestyles
• Colgate has adopted the
principle of “think global and
act local”
Sampark penetration
• Suggesting and implementing a rural promotional scheme was
what Colgate called ‘Sampark’ for, as they were specialist in
rural advertising category.
• Going in for mass media would not prove to be costly but the
reach would be limited as, still only very few people own and
possess a T.V. or a radio.
Sampark decided to their advertising by door to door selling
The requirement is three folds(for strategic promotion
1. To explore the available media at the different locations.
2. To develop region-specific consumer profiles to understand
the characteristics of target market.
3. To design right communication and motivation strategies to
induce target audience to buy the product.
The historically available
people - places for
distribution include
•
•Whole seller,
•Retailer,
• Vans,
•Weekly Haats,
•Bazaars
COLGATE JAGRUTI
INTRODUCTION
• Colgate-Palmolive, a leading oral hygiene product
manufacturer, entered the rural market at a time when
“Neem” twigs and non-dentifrice products like ash, charcoal,
or salt were the norm for brushing teeth.
• Operation Jagruti started in the year 2001.
• To educate villagers about oral hygiene.
WHAT THEY ARE DOING
•OPERATION Jagruti, a village consumer contact campaign was launched with
the objective of massive rural penetration targeted at the non-users and
infrequent users of dentifrices.
Objective
•that includes- sampling and seeding exercise for Colgate products, to create
awareness about the oral health care products highlighting the benefits of
better oral care habits
Strategy
•30 branded units were deployed as the part of activation. Door-to-Door
sampling (Tooth brush, Tooth paste & Tooth powder) & Trials were done.
•TG was educated on usage of Tooth powder vs. Coal. Extensive merchandising
was done at retail outlets & at the villages. Stock placed at the outlets.
Activation
DEVELOPMENT
• Have increased penetration by doubling the
villages from 33,000 to 55,000.
• Focusing on markets in the south, Uttar
Pradesh and Bihar.
• Constantly monitor the viability.
• Experimenting with non-compete companies.
GROWTH
• 2000 population rural India.
• Campaign mode.
• 2.8 million outlets, Colgate is present in about
2.4 million outlets
CHALLENGES
• Rural sampling and seeding exercise for
Colgate Herbal .
• Economic slowdown.
Reducing overall total delivered cost .
Reducing excess duty.
Initiatives
Teachers Training Program
• Teachers Training Program is an integral part of the
School Dental Health Program, conducted regularly
across the country to promote preventive dental
health care. Colgate also has launched its first-ever
online school curriculum featuring fun and
entertaining activities.
Oral Health Educational Program
•The Colgate Rural Initiative, targeted at rural areas with a
population between thirty and a hundred thousand people.
The dental check up camps were supervised by teams of
dentists and organisers who interacted with over 1 lakh
people teaching them the benefits of oral hygiene.
ITC E-Choupal
• Colgate, a company also tied up with ITC E-Choupal and
Rotary to spread the message of dental care and oral
hygiene to villages across India.
• The campaign successfully targeted over 156 villages in
Uttar Pradesh in association with Project Disha and 36
villages in Maharashtra. In addition, dental camps were
also conducted in the Dussera Mela at Kota.
Major Competition to Colgate in rural India
• Pepsodent
• Close up
• Babool
• Meswak
• Dabur red
• Amar
• Anchor white
& other small players
4 P’s adapted by Pepsodent to attract rural India
• Products - Germicheck+,
Whitening, 2in1, Center
Fresh, Gum Care, Sensitive,
Kids
• Price points – combination of
high & low price points for
various classes of consumer.
4 P’s adapted by Pepsodent to attract rural India
• Promotion- through project
streamline 1990, project
shakti, “Khushiyon Ki Doli”
campaign, organized health
camps, free samples
• Communication -
Pepsodent toothpaste
fights germs to protect
teeth against cavities
“Khushiyon Ki Doli” campaign
Close up
• Products – red,
menthol, lemon mint,
milk calcium
• Promotion in rural –
Mainly through project
Shakti
• Communication – Tazgi
jo paas laye
Dabur as a competitor
• Babool - mint fresh gel & normal & its lower price point
for rural people is 30g for rs.5
• Dabur red- Dabur Red Toothpaste is available in 4 SKUs:
200gm, 100gm, 50gm and 20gm(5rs)
• Dabur lal dunt manjan
Other competitors
 Anchor white –
• positioned as India’s first British Dental Health Society
certified 100 per cent vegetarian toothpaste, in 1997
• came up with a promotional offer of over 60 per cent
discount on the MRP for a combopack of Anchor White
toothpaste together with an Achor
Premium toothbrush for penetration.
 Ajanta toothpaste – strong distribution & lower price
points
 Attracting vegetarian customers – Amar, Babool
Conclusion
• Colgate is still most successful
brand in India
• Future for Colgate also seems
bright
• Main reasons are
 Strategic initiatives
 Creating Demand in rural
areas
Godrej
Godrej agrovet adhaar
About Company
• Godrej Agrovet is a subsidiary of Godrej
Industries Ltd.
• GIL holds 57% share of Godrej Agrovet.
• Godrej Aadhaar is a program of Godrej
Agrovet for rural India with its motto as -
“Khushiyon ka, Khushhali ka”
Godrej agrovet and Rural
•Godrej Aadhaar is the agri service cum
rural retail venture of Godrej Agrovet, an
initiative started to strengthen its age old
relations with the Indian farmers.
•Godrej Aadhar is the retail outlet of Godrej
Agrovet with a vision to be the complete
solution provider to the farmers rendering
•farm advisory services,
• credit facility to farmers,
•providing up to date information on
weather, price,
•soil & water testing facility,
•FMCG / consumer durables etc. to farmers.
• Offers great value proposition
• “Unnati Ghar Sansaar and Gaon”
• Multi category retail service and
retail outlet
• Started in December 2003 in
Manchar, Pune District.
• Aadhaar Centres - Maharashtra,
Gujarat, Punjab, Haryana, Andhra
Pradesh, Tamil Nadu, Orissa and West
Bengal.
• Adhaar got 65 outlets all over India
Objectives behind Adhaar
•Improve productivity
•Higher returns
•Improved cost benefit ratio
•Offers crop advisory services
•Soil and water testing services
•Buy back of output
•Crop finance
It is a complete solution provider for the Indian
farmers and provides professional guidance.
Have dedicated team of experts who cater to the
farmers needs… deliver direct to doorstep
Work profile
• It services around 20 villages in its
radius.
• Team of qualified Agronomists who
interacts with farmers on a daily basis
• Educate the farmers on farm practices.
• Ensures better productivity.
Services
• These centres provide valuable technical guidance, soil & water testing services.
• They also retail quality products of leading companies.
• Aadhaar centres also a facilitate credit to farmers and provide a platform to sell their
produce, buy back of output, crop finance.
• Supply of agri-inputs and animal feeds.
• Transfer of information (weather, price, and demand supply).
• Door-to-Door delivery of products among other things. To farmers, it’s a complete
solution under one roof
Offerings
On the basis of feed back they
have also developed :
 Basic food
 Grocery
 Apparel
 Footwear to furniture
 Kitchenware
 Home appliances
 Value-added services including
 Banking,
 Postal Services
 Pharmacy
Collaborations
1. Apollo - Godrej Aadhaar, the rural services cum retail initiative of Godrej Agrovet has
signed an agreement with Apollo Pharmacy, part of the Apollo Hospitals group, to
offer medicine support across Godrej Aadhaar outlets in rural India. The agreement
establishes areas of collaboration that include setting up of Apollo Pharmacies at
Aadhaar outlets called Apollo Aadhaar Pharmacy, offering genuine medicine and life
saving drugs, round the clock to nearby villages.
2. Fortis - , to open pharmacies in rural areas. the company seeks to empower the rural
India mainly the farming community by providing all encompassing health needs
under one roof.
3. Future group - Future Group picks up 70% stake in Godrej Aadhaar. The tie-up is
mainly to increase the penetration of our insurance business, micro-finance, credit
business and sourcing of agri-products. trying to create more value by combining
two big groups as Future group has excellent knowledge of retailing while Godrej has
good reach of rural consumers in the country. The benefits are mutual for both the
companies.
Collaborations
4. EICHER : to provide Commercial Vehicles to Rural India. Through this agreement
Eicher’s Light commercial vehicles (LCVs) will be showcased and made available at
Godrej Aadhaar outlets across nine locations in Maharashtra, Gujarat and Punjab.
5. Tyson Foods: Tyson foods stakes 51 % in JV with godrej agrovet which focuses all
forms of processed chicken
6. Bajaj Allianz : Agri services cum retail initiative of Godrej Agrovet Ltd, will offer life
insurance products to the rural community by signing an agreement with Bajaj Allianz
Life Insurance today.
Thank You

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Rural Marketing FMCG, pepsi, coca cola

  • 1. SUBMITTED BY GROUP 3 SWARIT YADAV (14PGP051) KIRTI RAI CHANCHAL (14PGP084) FMCG (P&G, Colgate Palmolive, Pepsico, Coca cola and Godrej agrovet)
  • 2. Beauty and Personal Care in FMCG Procter and Gamble
  • 3. About Industry Beauty and Personal Care Registers Strong Growth, Driven by Increased Awareness International Players Continue To Dominate the Competitive Landscape as urban becomes stagnant New Product Launches Focus on Variants and price points Internet Retailing Will Be the Next Big Distribution Channel in DRI
  • 4. GROWTH PROSPECTS Large Market:- • India has a population of more than 1.150 Billions which is just behind China. • According to the estimates, by 2030 India population will be around 1.450Billion • Will surpass China to become the World largest in terms of population. • FMCG Industry which is directly related to the population is expected to maintain a robust growth rate.
  • 5. MARKET OPPORTUNITIES Vast Rural Market:- • Rural India accounts for more than 700 Million consumers, or ~70 per cent of the Indian population and accounts for ~50 per cent of the total FMCG market. • The working rural population is approximately 400 Millions which is an untapped market for rural fmcg • The market for FMCG products in rural India is esti-mated ~ 52 per cent and is projected to touch ~ 60 per cent within a year.
  • 6. Competition Major Players in terms of market share 1. Unilever 2. Colgate palmolive 3. P&G 4. Dabur 5. L’Oreal 6. Godrej Unilever Group Colgate-Palmolive Co Procter & Gamble Co, The Dabur India Ltd L'Oréal Groupe Godrej Group Reckitt Benckiser Plc ITC Ltd Wipro Ltd Marico Ltd Johnson & Johnson Inc Emami Ltd Amway Corp Oriflame Cosmetics SA Beiersdorf AG CavinKa re Pvt Ltd McNroe Chemical s Pvt Ltd Raymond Ltd Hygienic Research Himalaya Drug Co, The Revlon Inc 2014
  • 7. East and North East India • Trends • Beauty and personal care in East and Northeast India increased by 15% in current value terms in 2014. • This growth was driven by the increased use of deodorants, mouthwashes/dental rinses and mass firming/anti-cellulite body care, which grew by 23%, • Consumers in East and Northeast India continue to prefer natural beauty and personal care products and home-madeproducts. • Competitive landscape • Hindustan Unilever continues to have the strongest presence in East and Northeast India. • The use of hair oil is very common as a conditioner, and one of the brands which has its primary consumer base only in this region is Dey’s Medical Stores Mfg’s Keo Karpin • Prospects • Expected to see a value CAGR of 5% at constant 2014 prices during the forecast period 2014-2019. • Continue to have an affinity for home-made remedies and natural products, as these are considered healthy and better, without any side- effects
  • 8. North India • Trends • Colour cosmetics registered growth of 23% in current value terms in North India in 2014. home-made products. • Biggest consumer base in India • Hence more flamboyant and also have the tendency to try new brands and products in beauty and personal care. • Do it yourself kits becoming popular • service providers such as beauticians and hairdressers also registered growth • Competitive landscape • HUL and colgate palmolive market leader due to strong distribution network • Companies such as Lotus Herbal and VLCC Personal Care gained significantly in 2014, because they increased their penetration strongly and multi channel marketing • more inclined to buy branded and luxury products, as the per capita income in this region is the highest in India, • Prospects • Expected to see a value CAGR of 6% at constant 2014 prices during the forecast period 2014-2019.
  • 9. South India • Trends • the second biggest region in terms of value sales in beauty and personal • South India mostly remains warm, as a result of which the use of oil-control products, whether in hair care, skin care or colour cosmetics • Competitive Landscape • HUL and colgate-palmolive again market leader mainly due to regional celebrity endorsement and high penetration • Prospects • Expected to see a value CAGR of 6% at constant 2014 prices during the forecast period 2014-2019. • Unconventional products such as dental floss, mouthwash/dental rinse, foundation, firming/anti- cellulite body care and anti-agers, amongst others, will drive growth in South India • The literacy rate in India is highest in the southern states, as a result of which the knowledge and awareness of these products is highest in this region, and hence their use is more accepted on a regular basis.
  • 10. West India • Trends • disposable incomes in the region are amongst the highest, with Maharashtra and Gujarat being located in this region • consumers earn more in this region, and are willing to spend more in order to look good. • the launch of most premium brands and retail outlets takes place in West India because of presence of mumbai • , consumers in this region are aware of these brands and have access to international brands faster than any other consumer base in the country • Competition • HUL is market leader with well established market presence and brand image • strong affinity for herbal brands and products, with companies such as Lotus Herbal, Dabur India and The Himalaya Drug Co being quite popular. • Prospects • Expected to see a value CAGR of 6% at constant 2014 prices during the forecast period 2014-2019. • Higher disposable incomes and a willingness to spend amongst upper-class and upper-middle- class households in first tier and second tier cities such as Pune, Mumbai, Kolhapur and Nagpur will drive growth in West India. •
  • 11. Rural Vs Urban India • Trends • Basic beauty and personal care products such as talcum powder, bar soap, eye liner, standard shampoos, hair oil, toothpaste and moisturisers continue to have the highest penetration in rural India • The use of relatively more expensive products, such as shower gel, deodorant, regular hair conditioner and colour cosmetics, amongst others, registered higher acceptance amongst rural consumers in 2014 • Consumers have lower disposable incomes in rural India, as a result of which manufacturers of premium brands have not entered this market, • Consumers continue to have negligible knowledge of such products. • • Competition • HUL , Colgate plamolive and Dabur are market leader with streamlined market penetration efforts • Prospects • Sales to rural consumers are expected to continue growing rapidly, as the leading manufacturers will continue to carry out marketing campaigns and social campaigns to encourage consumers to use their products. • The differences between rural and urban consumers will continue to be pack size and variant type. • For rural consumers brands may stick to basic variants, whereas for urban consumers new innovations will be seen more frequently.
  • 12. SECTORAL OPPORTUNITIES There are 4 Major Key Sectoral opportunities for Indian FMCG Sector are: Dairy Based Products Packaged Food Oral Care Beverages
  • 13. Future Prospect • Threat – – High portion of unorganized trade, – The limited distribution network of new entrants – The pressure on profit margins due to increasing competition. • Still Industry prospects remain attractive
  • 15. HISTORY OF P&G • Started in 1837 by William Procter and James Gamble. • First products were soaps and candles. • Procter and Gamble has nearly 300 brands in more then 160 countries. • Main Headquarter in Cincinnati, Ohio. • Employs 138,000 people in 160+ countries.
  • 16. SWOT ANALYSIS Product Innovation Well Established And Strong Brand Market Penetration Untouched rural market Excellent R&D Department. Developing Market. Gillete, Old Spice Acquisition. Intense Competition. Rising Prices Of Raw Material. Removal Of Import Restrictions Resulting In Increasing Competition.
  • 17. 4 P’s Hygiene & Health Care • Feminine Care • Health Care Home Products • Fabric Care • Hair Care • Baby Care Gillette • Gillette Shaving • Duracell • Oral B Other • Olay • Old Spice • Camay PRODUCT
  • 18. PRICE: It varies according to product. PLACE •Through Strategic account management team develops supply chain improvements that boosts the sales by 9%. •49 other places other than India. PROMOTION •Print and electronic media have effective recall & persuasion scores. •Celebrity Endorsement.
  • 19. Rural Initiative Project Shiksha II: Educating Underprivileged Children Rebuilding Lives for Earthquake victims in Gujrat(2001/2002) Project Poshan: Fighting Malnutrition in India (2000) Project Open Minds: Educating India’s Working Youth (1999) Project Drishti: The First- ever Sight Restoration Programme in India (1999)
  • 20. TRENDS AND TECHNOLOGY Self Service Equals Labour Saving Quasi Personalized advertisement Integrating Brick & Mortar and Online Stores
  • 21. TOP 10 FMCG IN INDIA 0 100 200 300 400 500 600 536 137 121 91 84 77 70 62 56 34 Top 10 in India Profit(in crores)
  • 24. • Generic Value Chain • Inbound Logistics • Operations • Outbound Logistics • Marketing and Sales • Service Packaging
  • 25. COMPANY COBO FOBO WAREHOUSE C & F DISTRIBUTOR WHOLESALER SLUMS RETAILER RETAILER CUSTOMER CUSTOMER SALESMEN SALESMEN
  • 26. • Distribution Points • Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that carry out the bottling operations. • COBO: These are Company owned bottling operations operating directly under the Company. Out of 32 bottling plants, PepsiCo owns 15. • FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for Pepsi.
  • 27. • Distribution Points • Warehouses: These are Company or franchisee owned warehouses spread over various locations that cover the respective territories and come under the purview of their respective Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from where they are sent to the C & F centers and Distributor Points. • C & F Centers: These are the biggest centers in the distribution network and receive proper assistance from the Company (either COBO or FOBO). The C & F center is owned by a private player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and the Salesmen at the C & F points are on the Company Payroll.
  • 28. • Distribution Points • Distributors: These are small, compared to C & F centers. Everything at the Distributor point owned and managed by the distributor, even the salespersons are on the Distributors payroll. • Wholesalers: These are smaller than C & F centers and Distributor points and get the stock directly from the Company or Franchisee. They get their stock directly from the Company and thus get special rates and extra discounts from the Company.
  • 29. • Distribution Points • Slums: They are generally smaller than the Wholesalers are. However, they get special discounts from the C & F centers and Distributor points. • Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they are the only point of contact with the customers. Retailers get their stock from all the other channel members in the distribution channel.
  • 30. • 4 P of Pepsico with reference to rural Product •the 300ml bottle and now days the new small or commonly known as the “chota pepsi” is very much popular •successful in introducing the big 1-1.5 liter PET bottles in the rural markets popular during festivals and marriages
  • 31. • 4 P of Pepsico with reference to rural Price •A price point of Rs 10 for a 300 ml bottle has proved a major deterrent hence unsuccessful •200ml Pepsi was reasonably priced between Rs.5- Rs.7. •Areas of concern •200 ml offering should not cannibalize 300 ml sales •Hence was used as an introductory offer
  • 32. • 4 P of Pepsico with reference to rural Place •successfully test marketed in Bangalore, Baroda and Coimbatore •Successfully implemented the hub and spoke model through its rural activation team. •developed special freezers that allow its products to stay chilled despite power cuts of three to four hours
  • 33. • 4 P of Pepsico with reference to rural Promotion •Unveiled a major campaign in Andhra Pradesh, roping in top Telugu film star, Pawan Kalyan, •Started rural focused tvc with sachin tendulkar and amitabh bacchan in kite fight with rural theme and sachin playing with rural kids while rural voiced song as background
  • 34.
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  • 39. • Coca-Cola India has chosen to go hightech and set up Wi-Fi services at 12 of its 16 stalls where people can download free Coke-Studio music. • The strategy has paid off: it has logged more than 11,000 downloads a month since the nearly two-month fair began.
  • 40. • Coke isn't experimenting with too many new products. • Instead, it is focusing on deeper penetration of existing products. • In rural India, Coke is already experimenting with the hub-and-spoke system, for which it is partnering distributors.
  • 41. • Own Your Fridge Scheme • Measurable tool to measure sales team and distributors performance in the outlets with respect to all parameters of sales – Cooler – Brand Pack Availability – Channel Activation
  • 42. • Rural brand ambasador – Aamir khan • Smart • simple
  • 43. • In a research it is found that – Highest consumption of cold drinks at home is during festival season, functions – Rural phenomenon of birthday and anniversary – Hospitality to urban visitors
  • 44. • Rural consumption – On picnic/get-together, marriages and routine outings – While having alchol – Lower during travel and along with food consumption – Lower after school/college consumption • Youths in rural share a single bottle with friends
  • 45.
  • 46. • Coca cola campaign “thanda matlab coca cola” is an example of undifferentiated marketing • The ad targets both urban and rural markets • For rural areas the positioning statement should be the generic benefit of the product like thanda matlab coca cola
  • 47. • Strategies to counter fakes – Coca cola put in place 48 consumer response coordinators – These coordinators will work with their teams to redress consumer complaints about overcharging and spurious botttling – The company have large number of route salesman who have one to one relationship with the retailers
  • 48. • Attracted rural consumer by halving the price of a 200-ml bottle to Rs 5 • Rs 5 is pyschological price point • Greater than Rs 5 means the consumer have to break Rs 10 note • The psychology is that once a consumer spends Rs 6-7 on any product, he/she will end up spending whole Rs 10
  • 49. • Coinage pricing at Rs 5 addresses this pyschological barrier
  • 50. • The real reason of 200 ml package was to get rural people used to packaged beverage • Rival pepsiCo also tried to match the price in this price war • Now both of the companies have droped this strategy
  • 51. • Coca cola also launched a powder-based beverage called vintigo at Rs 2/satche • It was launched in orissa villages • PepsiCo also announced to launch the same for malnutrition and deficiencies
  • 52. • Coca cola first india foray faltered due to insufficent attention to refrigration • Refrigration is a critical criteria in the purchase of the cold drinks • Refrigrators and electricity is scarce in india
  • 53. • In hinterlands of uttar pradesh the company provides the shop owners with brine coolers • Now the product can be chilled up to 12 hours without electricity • The company also have trade agreements with local ice makers to address the bottleneck
  • 54. • Coca cola university on wheels – Named as Parivartan – 20 seater buses for mom-and-pop retailers training in tier II and tier III towns – Objective was to help retailers to • Survive • Compete • Sustain • Grow in fast changing retail space
  • 55. • 20 retailers were selected with 300-sq. ft kirana store were selected • They were taught the tricks of the trade with the help of audio visual aids in a 2 hour session • Training content was designed on – Customer – Shop – Stock – finance
  • 56. • Most retailers adopted the new trade practices • Now company is developing ‘Advanced parivartan’. This will cover – Shop layout – Location – Display – Basics of finance – Credit card knowledge – People management skills
  • 57. • Program has covered 30,000 retailers including agra, ludhiana, chandigarh and lucknow • The aim is to train 100,000 retailers in next 2 years
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  • 63. • Distribution model • Company understood that the central distribution system is not effective in rural • In central distribution situation is like
  • 65. • Taking stock directly from bottling plants to retail stores would be very costly due to the long distances to be covered • The company instead opted for a hub and spoke distribution system
  • 67. • Hub and spoke distribution system – Stock was transported from the bottling plants to hubs and then from hubs, the stock was transported to spokes which were situated in small towns – These spokes fed the retailers catering to the demand in rural areas.
  • 68. • Also changed the type of vehicles used for transportation – Company used large trucks for transporting stock from bottling plants to hubs – Medium commercial vehicles transported the stock from the hubs to spokes – From spokes to village retailers the company utilized auto rickshaws and cycles – hand carts to even camel carts in Rajasthan and mules in the hilly areas
  • 69. • CCI made an additional investment of Rs 7 million • It also purchased 5,000 new trucks and auto rickshaws for boosting its rural distribution • Coverage of 81,383 villages in 2001 to 1,58,342 villages in August 2003
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  • 74.
  • 76. Key Facts • Oral care sees current value growth of 13% in 2014, to reach INR94.0 billion • Manufacturers focus on additional benefits in oral care products • Toothpaste remains the biggest category, with an 80% share of value sales in oral care in 2014 • The average unit price increases in 2014 due to premiumisation and inflation • Colgate-Palmolive India continues to lead oral care in 2014, with a 48% value share • Oral care is expected to see a value CAGR of 5% at constant 2014 prices in the forecast period of 2014-2019
  • 77. Trends • Brand extensions and additional benefit toothpastes, such as acid neutralisers, whitening and gum care products, remained the focus for toothpaste manufacturers e.g Colgate visible white • Mouthwashes/dental rinses, relatively new products in India witnessed the highest current value growth of 37% in 2014 • Per capita consumption, especially in toothpaste, is significantly lower compared with that in other developing countries. It is a quarter of the per capita consumption in Brazil, and half of that in China • Consumers in rural areas are gradually switching from toothpowder to toothpaste • manufacturers continued to premiumise oral care by extending their brands into whitening
  • 78. Competitive Landscape • Colgate-Palmolive India continued to lead oral care with a 48% value share • The company held a value share of 50% in toothpaste and 43% in toothbrushes in 2014 • Colgate Visible White by Colgate-Palmolive India Ltd saw the fastest value growth of 80% in oral care in 2014 • International companies such as Colgate- Palmolive India and Hindustan Unilever continued to dominate oral care in India in 2014 • Domestic company Dabur India was in third position in value terms in 2014. Colgate Pepsodent Close-Up Braun Oral-B Colgate Cibaca Babool Colgate Active Salt 2014
  • 79. Prospects • Oral care is expected to increase by a value CAGR of 5% at constant 2014 prices over the forecast period, to reach INR117.2 billion by 2019 • Volume growth is also expected, as manufacturers are increasingly urging consumers via promotions to increase the amount of toothpaste used for brushing, and also to brush twice a day. • Whitening products are expected to perform better during the forecast period • This segment displays higher than average growth rates in terms of value sales, and this will also encourage manufacturers to extend their brands even further • Consumers will opt for traditional herbal-based toothpastes e.g Dabur lal toothpaste • Launches in the future are expected to be innovative products dealing with specific issues in oral care, rather than general oral care products.
  • 80. Colgate Palmolive milestone • 1806: Company is founded by William Colgate in New York to make starch, soap, and candles. • 1873: Toothpaste was launched • 1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet Company. • 1937: the company moved into India. • 1966: Palmolive dishwashing liquid is introduced .
  • 81. Colgate Palmolive milestone in India • 1937: launch first toothpaste Colgate dental cream • 1949: launch tooth powder and toothbrush • 1950: Palmolive shave cream • 1976: launch programme “young India.” • 1989: Palmolive extra care soap launched. • 2003: launch oral health month program
  • 82. Colgate Palmolive products • ORAL CARE: • Tooth paste • Colgate Total 12 • Colgate cibaca • Colgate Sensitive • Colgate Active salt • Colgate Max Fresh • Colgate Fresh Energy Gel • Tooth brush • Colgate360 • Colgate Zigzag • Colgate Cibaca • Tooth powder
  • 83. Colgate the dominance continues • present in the domestic oral care market for the last 70 years • dominant position in the toothpaste segment with a 48% market share in the domestic market • Cibaca was acquired by Colgate in 1994 from Ciba Geigy. The company today has two main brands in the toothpaste segment – Colgate and Colgate Cibaca.
  • 84. Strong distribution • 940 direct accounts • 3.8 million retail outlets. • 2nd most widely distributed product in the country. • The company is tying up with initiatives like Echopal and Disha to further strengthen its distribution network.
  • 85. The Brand equity of Colgate  Colgate was ranked No 1 brand in all categories surveyed by annual brand power survey India.  In 1997 Colgate calciguard and Colgate plus get IDA seal of acceptance  Colgate was rated “India's premier brand” by A&M annual survey of India's top brand.  No 1 brand in India- surveyed by Taylor Nelson MODE
  • 86. The Brand equity of Colgate • “Best employer India”- surveyed by BT Hewitt • 2003-05 ranked “Most trusted Brand in India” Surveyed by AC neilson ORG- MARG. • 2004 celebrated Colgate health month.
  • 87. PROMOTION • Colgate skillfully communicate to rural market with a much larger but scattered audience characterized by variations in language, culture and lifestyles • Colgate has adopted the principle of “think global and act local”
  • 88. Sampark penetration • Suggesting and implementing a rural promotional scheme was what Colgate called ‘Sampark’ for, as they were specialist in rural advertising category. • Going in for mass media would not prove to be costly but the reach would be limited as, still only very few people own and possess a T.V. or a radio. Sampark decided to their advertising by door to door selling
  • 89. The requirement is three folds(for strategic promotion 1. To explore the available media at the different locations. 2. To develop region-specific consumer profiles to understand the characteristics of target market. 3. To design right communication and motivation strategies to induce target audience to buy the product.
  • 90. The historically available people - places for distribution include • •Whole seller, •Retailer, • Vans, •Weekly Haats, •Bazaars
  • 92. INTRODUCTION • Colgate-Palmolive, a leading oral hygiene product manufacturer, entered the rural market at a time when “Neem” twigs and non-dentifrice products like ash, charcoal, or salt were the norm for brushing teeth. • Operation Jagruti started in the year 2001. • To educate villagers about oral hygiene.
  • 93. WHAT THEY ARE DOING •OPERATION Jagruti, a village consumer contact campaign was launched with the objective of massive rural penetration targeted at the non-users and infrequent users of dentifrices. Objective •that includes- sampling and seeding exercise for Colgate products, to create awareness about the oral health care products highlighting the benefits of better oral care habits Strategy •30 branded units were deployed as the part of activation. Door-to-Door sampling (Tooth brush, Tooth paste & Tooth powder) & Trials were done. •TG was educated on usage of Tooth powder vs. Coal. Extensive merchandising was done at retail outlets & at the villages. Stock placed at the outlets. Activation
  • 94. DEVELOPMENT • Have increased penetration by doubling the villages from 33,000 to 55,000. • Focusing on markets in the south, Uttar Pradesh and Bihar. • Constantly monitor the viability. • Experimenting with non-compete companies.
  • 95. GROWTH • 2000 population rural India. • Campaign mode. • 2.8 million outlets, Colgate is present in about 2.4 million outlets
  • 96. CHALLENGES • Rural sampling and seeding exercise for Colgate Herbal . • Economic slowdown. Reducing overall total delivered cost . Reducing excess duty.
  • 97. Initiatives Teachers Training Program • Teachers Training Program is an integral part of the School Dental Health Program, conducted regularly across the country to promote preventive dental health care. Colgate also has launched its first-ever online school curriculum featuring fun and entertaining activities. Oral Health Educational Program •The Colgate Rural Initiative, targeted at rural areas with a population between thirty and a hundred thousand people. The dental check up camps were supervised by teams of dentists and organisers who interacted with over 1 lakh people teaching them the benefits of oral hygiene.
  • 98. ITC E-Choupal • Colgate, a company also tied up with ITC E-Choupal and Rotary to spread the message of dental care and oral hygiene to villages across India. • The campaign successfully targeted over 156 villages in Uttar Pradesh in association with Project Disha and 36 villages in Maharashtra. In addition, dental camps were also conducted in the Dussera Mela at Kota.
  • 99. Major Competition to Colgate in rural India • Pepsodent • Close up • Babool • Meswak • Dabur red • Amar • Anchor white & other small players
  • 100. 4 P’s adapted by Pepsodent to attract rural India • Products - Germicheck+, Whitening, 2in1, Center Fresh, Gum Care, Sensitive, Kids • Price points – combination of high & low price points for various classes of consumer.
  • 101. 4 P’s adapted by Pepsodent to attract rural India • Promotion- through project streamline 1990, project shakti, “Khushiyon Ki Doli” campaign, organized health camps, free samples • Communication - Pepsodent toothpaste fights germs to protect teeth against cavities
  • 103. Close up • Products – red, menthol, lemon mint, milk calcium • Promotion in rural – Mainly through project Shakti • Communication – Tazgi jo paas laye
  • 104. Dabur as a competitor • Babool - mint fresh gel & normal & its lower price point for rural people is 30g for rs.5 • Dabur red- Dabur Red Toothpaste is available in 4 SKUs: 200gm, 100gm, 50gm and 20gm(5rs) • Dabur lal dunt manjan
  • 105. Other competitors  Anchor white – • positioned as India’s first British Dental Health Society certified 100 per cent vegetarian toothpaste, in 1997 • came up with a promotional offer of over 60 per cent discount on the MRP for a combopack of Anchor White toothpaste together with an Achor Premium toothbrush for penetration.  Ajanta toothpaste – strong distribution & lower price points  Attracting vegetarian customers – Amar, Babool
  • 106. Conclusion • Colgate is still most successful brand in India • Future for Colgate also seems bright • Main reasons are  Strategic initiatives  Creating Demand in rural areas
  • 108. About Company • Godrej Agrovet is a subsidiary of Godrej Industries Ltd. • GIL holds 57% share of Godrej Agrovet. • Godrej Aadhaar is a program of Godrej Agrovet for rural India with its motto as - “Khushiyon ka, Khushhali ka”
  • 109. Godrej agrovet and Rural •Godrej Aadhaar is the agri service cum rural retail venture of Godrej Agrovet, an initiative started to strengthen its age old relations with the Indian farmers. •Godrej Aadhar is the retail outlet of Godrej Agrovet with a vision to be the complete solution provider to the farmers rendering •farm advisory services, • credit facility to farmers, •providing up to date information on weather, price, •soil & water testing facility, •FMCG / consumer durables etc. to farmers. • Offers great value proposition • “Unnati Ghar Sansaar and Gaon” • Multi category retail service and retail outlet • Started in December 2003 in Manchar, Pune District. • Aadhaar Centres - Maharashtra, Gujarat, Punjab, Haryana, Andhra Pradesh, Tamil Nadu, Orissa and West Bengal. • Adhaar got 65 outlets all over India
  • 110. Objectives behind Adhaar •Improve productivity •Higher returns •Improved cost benefit ratio •Offers crop advisory services •Soil and water testing services •Buy back of output •Crop finance It is a complete solution provider for the Indian farmers and provides professional guidance. Have dedicated team of experts who cater to the farmers needs… deliver direct to doorstep
  • 111. Work profile • It services around 20 villages in its radius. • Team of qualified Agronomists who interacts with farmers on a daily basis • Educate the farmers on farm practices. • Ensures better productivity.
  • 112. Services • These centres provide valuable technical guidance, soil & water testing services. • They also retail quality products of leading companies. • Aadhaar centres also a facilitate credit to farmers and provide a platform to sell their produce, buy back of output, crop finance. • Supply of agri-inputs and animal feeds. • Transfer of information (weather, price, and demand supply). • Door-to-Door delivery of products among other things. To farmers, it’s a complete solution under one roof
  • 113. Offerings On the basis of feed back they have also developed :  Basic food  Grocery  Apparel  Footwear to furniture  Kitchenware  Home appliances  Value-added services including  Banking,  Postal Services  Pharmacy
  • 114. Collaborations 1. Apollo - Godrej Aadhaar, the rural services cum retail initiative of Godrej Agrovet has signed an agreement with Apollo Pharmacy, part of the Apollo Hospitals group, to offer medicine support across Godrej Aadhaar outlets in rural India. The agreement establishes areas of collaboration that include setting up of Apollo Pharmacies at Aadhaar outlets called Apollo Aadhaar Pharmacy, offering genuine medicine and life saving drugs, round the clock to nearby villages. 2. Fortis - , to open pharmacies in rural areas. the company seeks to empower the rural India mainly the farming community by providing all encompassing health needs under one roof. 3. Future group - Future Group picks up 70% stake in Godrej Aadhaar. The tie-up is mainly to increase the penetration of our insurance business, micro-finance, credit business and sourcing of agri-products. trying to create more value by combining two big groups as Future group has excellent knowledge of retailing while Godrej has good reach of rural consumers in the country. The benefits are mutual for both the companies.
  • 115. Collaborations 4. EICHER : to provide Commercial Vehicles to Rural India. Through this agreement Eicher’s Light commercial vehicles (LCVs) will be showcased and made available at Godrej Aadhaar outlets across nine locations in Maharashtra, Gujarat and Punjab. 5. Tyson Foods: Tyson foods stakes 51 % in JV with godrej agrovet which focuses all forms of processed chicken 6. Bajaj Allianz : Agri services cum retail initiative of Godrej Agrovet Ltd, will offer life insurance products to the rural community by signing an agreement with Bajaj Allianz Life Insurance today.

Notes de l'éditeur

  1. the buyers’ perceptions of value, not the seller’s cost