launch a new soaps in orissa

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Assignment-3

RURAL MARKETING

TOPPIC:-LAUNCH watches IN RURAL MARKET OF UTTARPRADESH

SUBMITTED TO

Mr. Hitesh jhanjiAsst. lecturer (LPU)

Submitted by Chandan kumar Roll. No: 1901b51Reg. no: 10901756MBA-IV SEM



Table of Content

S.

No.

Topic Page No.

1 Acknowledgement 03

2 Objective of the study 03

3 Introduction and demography of the

Uttarprdesh…..

04

4

An overview on real fruit juice06

5 Industry analysis 07

6 Launch real fruit juice in rural

area of uttarpradesh

08

7 4a’s of rural marketing mix for real fruit

juice

08

8 Distribution model of real fruit juice inrural U.P

09

9 Launch real fruit juice in urban

area of uttarpradesh

09

10 4p’s of rural marketing mix for real fruit

juice

10

11

12

Conclusion

Reference s

11



ACKNOWLEDGEMENT

I provide full justice to this assignment which is prepared by visiting various

web-sites, magazines, articles etc.

I would like to take an opportunity to thank all the people in collecting the

necessary information and making of the report. I am grateful to all of them for

their time and wisdom.

My project becomes a reality only due to cooperation of many people who had

helped me in completing this project. I sincerely extend my gratitude to Mr.

Hitesh Jhanjhi who has given me this precious opportunity to have know about

the Indian Rural Market.

Objective of the study.

Objective of the study.

• To launch a new soaps for rural people in Orissa.

• To create an effective market for our product.



• To create long-term brand value for our customer.

• Focus on awareness and interest to building loyalty of our customer.

Introduction

Uttar Pradesh is the microcosm of India, multicultural, multiracial, conglomeration of fabulous

wealth of nature-hills, valleys, rivers, forests, and vast plains. The seventh most populated

state of the world, Uttar Pradesh can lay claim to be the oldest seat of India's culture and

civilization. It has been characterized as the cradle of Indian civilization and culture because it

is around the Ganga that the ancient cities and towns sprang up.Uttar Pradesh played the most

important part in India's freedom struggle and after independence it remained the strongest

state politically.

The Demographics of Uttar Pradesh is a complex topic, which is undergoing

dynamic change. Uttar Pradesh is India`s most populous state. It has a population of

about 166,052,859 as per the 2001 census.

If it were a separate country, Uttar Pradesh would be the world's fifth most populous

nation, next only to China, India, the United States of America and Indonesia.

There is an average population density of 689 persons per km² i.e. 1,785 per sq mi. The

capital of Uttar Pradesh is Luckhnow. Hindus and Muslims consider the state as a holy

place.

The peripheral regions of Uttar Pradesh, are home to a number of tribal communities

such as Agaria, Baiga, Bhar, Bhoksa, Bind, Chero, Gond, Kol and Korwa. Five of these

tribal communities have been recognized by the Government of India as

disadvantaged scheduled tribes.

The Literacy rate of the state according to the 2001 Census was 57.36%. With the

literacy rate for Males at 70.23%, while a dismal 42.98% for the Females.



Rank of Districts

By area

1. Lakhimpur Kheri - 7,680

2. Sonbhadra - 6,788

3. Hardoi - 5,986

4. Bahraich - 5,745

5. Sitapur - 5,743

By Population

1. Allahabad - 4,941,510

2. Kanpur Nagar - 4,137,4893. Azamgarh - 3,950,808

4. Jaunpur - 3,911,305

5. Gorakhpur - 3,784,720

By Population Density

1. Varanasi - 1995

2. Ghaziabad - 16823. Lucknow - 1456

4. Sant Ravidas Nagar (Bhadohi) - 1409

5. Kanpur Nagar – 1366

By Sex Ratio



1. Azamgarh - 1026

2. Jaunpur - 1021

3. Deoria - 1003

4. Mau - 984

5. Pratapgarh – 983

Number of villages in U.P:- 1, 12804

Number of districts:- 83

Male-Female Ratio: 898 : 1000

Rural Population: 13.15 crore

Urban Population : 03.45 crores

Density: 689 persons per sq. kms

Literacy 57.36 %

Males : 70.23%

Females : 42.98 %

Adminsitartive Divisions 17

Districts 70

Towns 631

Villages 97,134

Airports 04

Telephone Exchanges 2,885

Habitated Households 2,14,07,433

Farmers 72.20 %

Total Income 1,64,630 crore Indian Rupees

Per capita income Rupees 9,765

Forest Cover 1,725 thousand hectares

Wildlife Sanctuaries 11

Bird Sanctuaries 12

National Parks 01

Metalled Roads 1,04,000 kms

Registered Vehicles 46,64,000

TV Centres 03

Radio Stations 13

Primary Schools 8,66,361Higher Secondary Schools 8,459

Degree Colleges 758

Universities 23

Polytechnic Institutes 79

Industrial Training Institutes 179

Engineering Colleges 8

Private Engineering Colleges 22



Medical Colleges 9

Agriculture Universities 3

Registered Factories 42,7409

Total Production Rs 33,926 crore

Power generation installed capacity 4,425 Megawatts

Power Generation 24834 million units

Per capita power consumption 197 units

Electrified Villages 53,845

Birth Rate (per 1,000 population) 33.1%

Death Rate (per 1,000 population) 10.5%

Allopathic hospitals/dispensaries 4,236

Ayurvedic/Unani hospitals 2,210

Homeopathic hospitals/dispensaries 1,342

Food Production 40440 thousand metric ton

Wheat Production 26348 thousand metric ton

Rice Production 13247 thousand metric ton

Sugarcane Production 15419 thousand metric ton

Potato Production 9953 thousand metric tonCement Production 656600 metric ton

Cotton Cloth Production

368 thousand meter

BUSINESS OPPORTUNITY IN RURAL INDIA

Features of Indian Rural Markets

• Large and Scattered market: The rural market of India is large and scattered in the sense that it

consists of over 63 crore consumers from 5,70,000 villages spread throughout the country.

• Major income from agriculture: Nearly 60 % of the rural income is from agriculture. Hence

rural prosperity is tied with agricultural prosperity.

• Low standard of living: The consumer in the village area do have a low standard of living

because of low literacy, low per capita income, social backwardness, low savings, etc.

• Traditional Outlook: The rural consumer values old customs and tradition. They do not prefer

changes.

• Diverse socio-economic backwardness: Rural consumers have diverse socio-economic backwardness. This is different in different parts of the country

• Infrastructure Facilities: The Infrastructure Facilities like roads, warehouses, communication

system, financial facilitate are inadequate in rural areas. Hence physical distribution becomescostly due to inadequate Infrastructure facilities.

Profile of the Rural Consumer



1) Low Literacy levels: It is estimated that the literacy level in Rural India is 45% as compared to52% for the whole country. The literacy rate is low so this comes in way for promotion. Therefore

marketer cannot use Print media and Hoardings, he has to adopt Product Demonstrations.

2) Low Income Levels: Though Rural incomes have grown in the past decade the per capita

incomes of rural consumer are low compared to urban counterpart. A large part of the income is

spent on basic necessities, leaving a smaller portion for other consumer goods.

3) Location pattern of rural consumers: India’s urban population is concentrated in 3,200 citiesand towns, whereas the rural population is scattered over 638,667 villages. Of these, only 6,300

have a population of more than 5000 persons. More than three lakh villages are in the category of 500 people or less (55 percent of the total), and more than 1.5 lakh villages have 200 people or

less( 25 percent of the total). Rural consumers therefore are scattered over a large area, unlike their

Urban counterparts who are highly concentrated.

4) Reference Groups: Typically, in a rural area the reference groups are primary health workers,doctors, teachers and panchayat members. The village trader or the grocer, commonly called

‘Baniya’ or ‘Mahajan’ may also be an important influence in decision making of the ruralcustomers. This is because the trader extends credit to the farmers. Today, another person who is

considered a change agent is the rural bank’s officer or manager.

5) Occupation: Typically, in a rural area the principal occupation is farming, trading, crafts, andother odd jobs like plumbing, electric works etc. There are also primary health workers and

teachers. The different types of farming activities include growing crops, cattle and poultry

farming. The basis for differentiation is obviously the size and ownership of land. Consumption patterns differ according to income levels.

6) Media Habits: Rural people are fond of music and folklore. In rural Maharashtra a popular formof entertainment is the Tamasha. Rural folk listen to the brave deeds of their hero Shivaji.

Likewise, in Uttar Pradesh, Nautanki entertains the rural customer. And then there are T.V, Radio

and Video films.

7) Other variables: Culture, language, religion, caste and social customs are some other importantvariables for profiling a rural consumer. Rural consumers have a lot of inhabitations and tend to be

rigid in their behavior. A company has to take intense care while targeting them.

GENERAL

Electronic Watches were introduced in the world market in the early seventies. They came to

India in 1979 but had to be withdrawn due to problems with the product. HMT Ltd (HMT)

introduced its electronic watches in 1981 and was followed by Hyderabad Allwyn Limited(Allwyn). Organisations such as Electronics Corporation of Tamil Nadu (ELCOT), Semi

Conductor Complex Ltd. (SCL), etc. introduced watches but were not successful. By mid

eighties many smaller companies, originallymanufacturing mechanical watches, diversified into electronic watches.

In 1987 Titan Watches Ltd. (Titan) ajoint venture ofTata Sons and Tamil

Nadu Industrial Development Corporation entered the market andshortly established itself as a major manufacturer.



1.2 INDUSTRY STRUCTUREThe electronic watch industry is dominated by HMT, Allwyn and Titan.They command about 80% share of the organised sector. Therefore, the

study concentrates on these manufacturers, though issues pertaining to

smaller companies are addressed.

The installed capacity of the industry is 10.8 million pieces. A large unit,Indo French Times, with a capacity of nearly 2.0 million pieces is lying

idle due to some internal problems among the promoters.

The production at present from the industry is around 6 million watches.While HMT and Titan operate at 70% - 80% capacity, others work at very

low capacity. In the case of Allwyn, the company is facing various

problems. Titan - Timex has just completed one year and is still in itsgestation phase. The other small companies work at low capacities as

their market reach is limited and are not able to compete with the big

companies.

In terms of importance in the market, Titan has a share of about 58%,

HMT 29%, Allwyn 5.5% and 7.5% with others. However, includingmechanical watches the market shares are : HMT 63%, Titan 18%,

Allwyn 8% and others 11%.(xi)

Industry PerformanceAs mentioned earlier, while HMT and Titan work at high capacityutilisation, other companies utilise their capacity poorly. Consequently,

except for these companies, the smaller ones are not healthy financially.

They are however propped by their mechanical watch or clock business.The industry is growing at a rate of about 10%. The growth of individual

product types are discussed later in this report.

Major Problems Faced by the IndustryThe major problems facing the Industry are the following :

* Non availability of raw material from domestic source.

* Spurious watches

* Restriction on manufacture of straps.* High duties and taxes.

1.3 INTERNATIONAL SCENARIOThe total world production of watches (in 1991-92) is 828 million pieces.Switzerland, Japan and Hong Kong are the important watch manufacturing

countries. While Japan leads the world in terms of volumes,

Switzerland has the largest share in value terms.

The important markets for watches are Hong Kong, Western Europe,USA and middle east countries.

Salient Features of Contemporary TechnologyThe salient features of contemporary technology are the following :

Analogue watches

* Superior appearance parts.

* Thin cases.* Multi-dial, skeleton watches.



* Jewellery watches.

(xii)Digital

* Multi function watches.

Others

* High level of process automation.* Increased use of plastics.

* Development of different calibre of ECBs.

* Development of long life battery cells.

Product DevelopmentThe following would be the advancement in the product features :

* Multi function watches including message receivers.* High accuracy watches.

* Contour watches.

* Long life captive power source for watches.

1.4 RESEARCH AND DEVELOPMENT

There is hardly any research and development activity in nationallaboratories or educational institutions in this area. Individual companies

sometimes sponsor development in specific areas.The big three companies have active R & D departments. Till recently they

were concentrating on indigenisation of components and developing jigs

and fixtures. Now some of them have started process improvement and product development projects.

In the countries manufacturing watches, significant developments in

watches are spin-offs of elaborate and fundamental research. Added tothis the scale of operation is very high. These factors facilitate on going

development. In contrast, in India there is not much research that goes

on in areas connected with watches to offer any spin-off benefit.Therefore, the industry is required to bear the cost of research. This hasnot happened due to the relatively small size and infancy of the industry.

(xiii)The technology gaps are in the following areas :

* Raw materials.

* Electronic components.

* Finishing/electroplatingAnother area that potentially has immense benefit to the industry is

development of plastics for movement parts. This would not only lead to

reduction in costs, in terms of not having to import metals, but also

prevent material wastage. This will be possible as plastic components aremoulded while metal parts undergo machining, stamping, drilling, etc

leading to wastage.

Testing Facility

The testing facilities with large companies are said to be adequate,

though more sophisticated equipment are reportedly available abroad.The smaller companies may not possess the standard testing equipment

that is desirable.



A central facility with Horological Inspection Institute is not used by all

the companies, it was co-promoted by HMT with UNIDO, and has strong

links with HMT.

Standards

The Bureau of Indian Standard (BIS) is developing horological standards.

Already 37 of them have been approved. Currently the BIS committee isreported to be working on standards for raw materials.

Thrust Areas of Indigenous Technology

The thrust areas should be as given below :* Indigenisation of components.

* Development of appearance parts and new styles.

* Indigenisation of ICs.

* Development of plastics and, other raw materials.(xiv)

1.5 CONCLUSIONSThe Indian electronic watch industry has tremendous potential to grow.

For this however efforts would have to be focussed and penetrative.Capacity

To be competitive, Indian watch manufacturers have to expand capacities

at a rate much higher than current levels, this would enable them

to take advantage of economies of scale. Current manufacturers should be allowed to utilise the latent' capacity available in their plants, by

automating the manufacturing process completely. With regard to digital

watches, since Indian manufacturers have not acquired levels of technology

that exist abroad, it is not perceived as an area for active development.

Current capacities can be allowed to expand at current levels to

cater to domestic demand.

Such efforts are likely to result in a shakeout in the market which would

have a direct bearing on the small and medium manufacturers, whowould be forced to improve their product quality, undertake product

innovations and R&D efforts, increase production levels failing whichtheir participation in the market would become insignificant. Such

manufacturers should identify niches and cater to them .

With regard to components, the potential and feasibility of exporting

movements may be examined in detail. EOUs for this purpose can be set

up by a consortium of existing manufacturers or new entrepreneurs.

Some aspects which would have to be addressed are the following :* Source of technology.

* Extent of standardisation of movement parts.

* Marketability of Indian movements abroad.

* Capability to develop new movements in the future.Testing & Infrastructural Facilities

While most manufacturers do have their own testing facilities, such

facilities available with smaller manufacturers are not sophisticated.There is thus case for a central testing facility especially for smaller units

in the areas of new product development. The facility at the Horological

Inspection Institute (HII) is underutilised today. One of the reasonsstated to be the involvement of HMT and competitors hestitate to utilise

the available facility.

(xv)There is need to improve the availability of infrastructural facility in

research and development. This would also help avoid duplication of



effort which might be happening at present.

This can be done by the following way :

* Promoting interaction between industry and research organisations.

* Formation of a nodal agency either by the industry or the government

to co-ordinate with various research institutions,.* Encourage commercial design firms by offering them concessions

in the import of equipment, hardware and software which can cater to the entire industry.Technology Status & Thrust Areas

While process technology in India, are similar to those abroad, the level

of automation is much lower in India. The thrust areas thus would be the

following :

* Increase process automation by the introduction of fixtures in the production line.

* Indigenisation and commercialisation of all components namely :

Ices

Stepper Motors

Quartz Crystals

Trimmer Capacitor etc.

* Introduction of plastic in movement parts which is likely to result

in reduction of wastage and import of raw material.* Standardisation of components should be attempted albeit over a

five year time frame to help manufacturers achieve economies of scale.

To achieve these, creation of infrastructural facilities would be imperative.

In addition, fiscal incentives in terms of depreciation on indigenously

developed machinery, excise/taxes based on import content

could be examined.

(xvi)Development of Standards

Horological standards covering raw materials (including plastics) should

be developed soon to enable their indigenisation and development both

within and outside the country. A time frame may be defined for

implementing comprehensive standards developed using establishedISO, NIHS to DIN standards.

International Market

Market factors that are likely to have a direct bearing on Indian made

products are the following :

* Obsolescence is high in digital watches where India does not

possess any strength.

* The international market is very sensitive to brand names particularly

in the premium segment.

* Consumer acceptability of Indian made products is low abroad.

The export strategy may be guided by these factors and salient featuresof such a policy could be as follows :

* Export of digital watches may not be attempted.

* Low price watches can be exported to countries with a significantIndian population.

* Identify mature markets abroad where domestic industry is not

very strong (like England, Spain, Italy) and enter into marketing

arrangements with organisations there.

* Large scale export of movements can be attempted.Import/Export Assistance

Raw material costs are said to be high because of high import duties.

Reduction in duties would provide immediate relief. As indigenisation of



raw materials may take some time yet, those components which can be

indigenised may be placed in high duty bracket and vice-versa. This

would also encourage value addition thereby utilising low cost labour.

(xvii)

2 ELECTRONIC CLOCKS

2.1 GENERALUnlike watches, clocks are not considered to be a medium for expressing

oneself. It is more a utility product. In India, clocks are very popular giftarticles.

The first electronic clock was made in India in the early seventies by

Super Scientific. From then a number of manufacturers have entered the

industry.

2.2 STRUCTURE OF INDIAN INDUSTRY

The manufacture of movements and watches is not a hi-tech operation.

In addition, the investment required is relatively low (Rs. 3 - 5 crores).

Therefore, a number of small companies have entered the market. Inaddition, assembly of clocks, using components bought from movement

and other parts manufacturers, is virtually a cottage industry. Inaddition to about 20 manufacturers of movement and clocks, there are

between 1000 and 2000 assemblers. Many of them produce less than

5000 pieces a year.

Almost all the companies are concentrated in the traditional Horological

centers much as Morvi, Delhi and Bombay. Other important centres are

in Gujarat at Ahmedabad, Surendra Nagar, Valsad, Surat, Baroda and

Junagadh.

While the installed capacity with the manufacturing units are notavailable, estimates of production of the important companies suggest a

range of 0.05 to 4.0 million pieces ayear. The top five companies produce

between 1.2 to 3.75 million pieces.Performance of the Industry

The electronic clock industry has been performing rather badly. It has

been opened by the industry that due to smuggling and price cutting by

unorganised sector, the units carrying out legitimate business are hardhit.

(xviii)Major Problems Facing Industry

The major problems that inhibit good performance by the industry arethe following :

* Smuggling of clocks and ICs.* Price cutting by unorganised sector by using low cost, smuggled

components and resorting to unaccounted sale.

* Non-availability of good quality plastics, brought out by small

manufacturers who use recycled plastics to keep cost down.Demand/Supply

The present demand for electronic clocks is estimated at 18 million pieces

a year. This is expected to grow at a rate of 10% a year.The demand of 18 million nos. is estimated to be met through supply fromthe following sources :

Production by domestic manufacturers/assemblers

Smuggled clocks

Spurious clocks manufactured using smuggled Ics

10.8 million

1.2 million

6 million



Total 18 million

Imports

Clocks are not import intensive. At present most components are

indigenised and are in different stages of commercial production.

Therefore the imports are restricted to certain types of musical ICs andsquare trimmer capacitors.

Exports

Exports are in very small quantities. It is.a widely held view that

considering the quality of an average Indian clock, exports will be

extremely difficult.

(xix)Economic Size

Scale of operations is another factor that would retard export growth. Thelargest Indian companies manufacture about 2-3 million clocks. In

contrast some of the German companies produce 45-50 million pieces.

In India, the minimum economic size is said to be 15,000 - 20,000 clocks

a month.

2.3 INTERNATIONAL SCENARIO

Germany, Taiwan, Japan, Korea and Hong Kong are leaders in electronicclocks. The important export markets are USA, Hong Kong and Western

Europe.

The salient features of contemporary technology are the following :

* Highly automated production facilities.* Solar powered clocks.

* High priced clocks using different material for cases.

The developments in products are likely to be in the following :* Slimmer/compact movements.

* Battery-less clocks in the popular range.

* Better appearance parts.

2.4 R & D EFFORTSBeing in small and medium sectors, the individual companies do not

apparently undertake R & D projects, other than those concerning

appearance parts. The developments in components have come aboutdue to efforts of the basic electronic industry, particularly organisations

such as SCL and Keltron.

The technology gaps are in the following areas :* Musical ICs.

* Trimmer capacitors.

* Process efficiency.(xx)

2.5 CONCLUSIONSCapacity

Considering the unused capacity available, it may not be required in the

short term to promote new capacities in the organised sector. The cost

being unfavourable to this segment, due to competition from smuggled

components, investment in capacity may not bring attractive returns.

Therefore any capacity addition could come after complete indigenisation

of the components and their production at economic scales.Testing Facilities



Sophisticated testing equipment for testing accuracy, sound level of

alarm/chimes and appearance parts should be used by manufacturers,

particularly when some of them are entering the export market. These

may replace, what is reported to be out dated equipment available.

The benefits of these equipment may not be relevant to a significant portion of the industry as the assemblers are in the cottage industry/

unorganised sector.Technology Status and Upgrading

Indian manufacturers lag far behind those in Germany, Taiwan, Japan,

etc. The industry has just managed to indigenise the IC in its simplest

form. ICs for new generation products like digital, multi function clocks

and other value added products such as radio clocks have not been

indigenised.Indian manufacturers may make attempts to improve the product

finish/appearance through better workmanship and design. This will

enable entry into the low price segments of the international markets.Development of Standards

It is imperative that stringent performance standards are developed to

improve the quality of the average Indian clock and also weed out

spurious manufacturers. Standards also need to be developed for raw

materials, particularly plastics.

(xxi)International Target Markets

Indian companies can only target at low price segments in South Asian,

Middle East and African countries. Companies that have had collaboration

arrangements with leading international manufacturers can examinethe possibility of selling their products under the collaborator's brand

name. This would mean that these Indian companies act as subcontractors

to their collaborators.

RECOMMENDATIONSElectronic Watches

* Encourage doubling of capacity as this would help reduce the

burden of fixed costs and lower existing levels of cost of production.

A related fact is that only capacities above 2.5-3 million pieces may

be encouraged to enable manufacturers to take advantage of

economies of scale.

* There should be a nodal agency to coordinate research activities being undertaken in the industry. This would enable all players to

take advantage of the developmental activities being undertakenand would also result in better utilisation of resources as duplication

of effort would be avoided.

* Industry may be encouraged to collaborate with organisations such

as the National Institute of Design to develop new styles and

improve the aesthetic value of the products.

* R & D efforts and indigenisation may be encouraged by fiscal

concessions to manufacturers in the form of depreciation benefits,

lower duties and tax incentives.* Dereservation of strap manufacture for the SSI may be considered.

The small scale sector is constrained by their limited financial and

other resources and may not be in a position to make the investment

needed to undertake product quality and finish improvements .Electronic Clocks

* Additional capacities may not be promoted till the existing capacities

are utilised at reasonable levels and component costs can be

brought down to lower levels.



(xxii)Exports can be identified as a thrust area for which certain

preconditions should be as follows :Stringent performance and material standards should be formulated

and implemented.

Focus attention on the development of distinct type, appearance parts for exports.

Efforts should be made to concentrate on the lower end of the

product range in developing countries to carve a niche for exports.Stringent rules may be formulated and implemented to prevent the

manufacture of spurious clocks.

Launch electronic watches in rural area of uttarpradesh

MARKETING PLAN

Need Analysis:

Consumers needThe demand and the need vary one market segment to another segment on the basis of prices &quality.

The current need can be satisfied by the following ways in the different segment.

High class: Titan offered Aurum and Royale in gold watch range .They were

stylish watches in all gold and precious metals.

The price is between Rs.20,000 -1,00,000.

Middle income class: Titan offered the Exacta range in stainless steel. There

were 100 different models in the range. The prices ranges are between Rs.500-700.

Lower-income group: Titan offered the Timex watches and later, when the

arrangement with Timex was terminated, the SONATA range.

The prices ranges were Rs.350-500.There was 200 different models in the ranges.

DISTRIBUTION PLAN

Distribution model for real fruit juice:-

Company



.

Marketing strategy

For launching electronic watches in rural area of uttarpradesh we are applying 4p’s and

4a’s of marketing mix.

Product:-

Rural consumers like to buy products for need-based consumption. The product must also

prove to be useful & easy to use. Our organization wants to develop demand in rural areas

significantly, then they need to modify the existing products to cater to the specific needs &tastes of the rural markets through innovative designs.

Name of all product .

C & FA

Distribution

(Urban)

Wholesaler

Retailer Urban

Retailer

(Urban)

Distributor (Rural)

Sub-distributor Wholesaler

Retailer

(Satellite Market

Retailer

Local

Retailer

Rural



Price/ AFFORDABILITY:

Price of the product plays a vital role in buying decision. As our product targets urban and

semi-urban areas, the product is priced accordingly. Rural consumers are price sensitive. They

are price conscious & frugal. Our organization applying

Low cost-Low Price: - This strategy of reducing prices by reducing the cost in order to make

it appear more affordable, is delivering very good result for a large number of sales.

Availability

The first challenge is to ensure availability of the product or service. Due to poor infrastructure

in rural area of uttarpradesh, it is an even greater challenge to regularly reach products to the

far-flung villages. To service remote village our stockiest use auto rickshaws and bullock-carts.To ensure full loads, the company depot supplies, twice a week, large distributors which who

act as hubs. These distributors appoint and supply, once a week, smaller distributors in

adjoining areas.

Acceptability

The third challenge is to gain acceptability for the product or service. Therefore, there is a need

to offer products that suit the rural market. our real juice easily accepted by villagers of uttarpradesh. Because of following reasons:-



In far anterior villeges there is unavailability of equipments such as juicer and mixy due

to low electricity.

Rural population are health conscious and they prefer natural juice than any other softdrink.

Our salesman visit in far rural area of u.p and aware people about nutritional facts of

product.

Awareness

There are following promotional tools are using for creat awareness of rural people:-

advertising on Doordarshan:- most of the rural people spend their time on doordrshan

so we advertise our product on DD.

Radio:- radio is the most entertainment equipment of rural people through which we

can give massage about our product.

banners, posters:- banners and posters can be use on main spot of haat and beside thenational highway across the area.

Vans and road shows:- road shows are effective communication tools for rural people.

Video on wheels: it very helpful for creat gathering.

Interactive Games: Attractive gifts were offered to encourage audience participation.

Promotional pricing:

Marketing pricing: As by opening new shops such as the world of Titan – buy

directly from the dealer and hence the element of middleman is not there.

Launching real fruit juice in urban area of uttarpradesh



For launching real fruit juice in urban area of uttarpradesh we are applying 4p’s of

marketing mix.

Product:-

Urban consumers like to buy innovative products which are more featured and design. The

urban people have less time to spend time on food due to busy life hence they easily accept our product. The product must also prove to be useful & easy to use. Our organization wants to

develop demand in urban areas significantly, then they need to modify the existing products to

cater to the specific needs & tastes of the urban markets through innovative designs. We havefollowing product for urban area of uttarpradesh.

Real Orange Juice - Real Mango Juice –

Real Mixed Fruit Juice –

Real Grape Juice -

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Real Litchi Nectar – Real Guava Juice –

Price/ AFFORDABILITY:

Price of the product plays a vital role in buying decision. As our product targets urban and

semi-urban areas, the product is priced accordingly. Urban consumers are like quality. They

are quality conscious & frugal. Our organization applying following pricing strategy and

policy:-

Penetration pricing :-in urban area of uttarpradesh pricing strategy of our product is

penetration pricing in which we charges low price than our competitors.

Psychological Pricing.

In this pricing strategy our organization wants the consumer to respond on an emotional, rather

than rational basis.

Product Bundle Pricing.

Here we can combine several products (gifts) S in the same package. This also help serves to

move old stock.

• about where the customers are, and how to get to them• also includes the "channel of distribution" - meaning, all the different middlemen you

use to get the product out to the customer.

Place:-

The following question arises when we talk about place.

• decisions about where to sell the product



or concerns



In urban area of uttarpradesh OUR PRODUTS ARE AVAILABLE AT THE

FOLLOWING PLACES:-

1. Big Bazar – Food Bazar

2. More

3. Foodland fresh4. Spinach

5. Subhiksha

6. Patel Low Price

7. Reliance Fresh

8. Sundaram Market

9. Ramkrishna Bazar

10. Apna Bazar

DISTRIBUTRIBUSION CHANNEL

Distribution model for real fruit juice:-

Promotion:-

Company

C & FA

Distribution(Urban)

Wholesaler

Retailer Urban

Retailer (Urban)

Distributor (Rural)

Sub-distributor Wholesaler

Retailer

(Satellite Market

Retailer

Local

Retailer

Rural



In these promotional strategies our organization hire sales representatives who direct sell

our product in measure town of u.p

Personal selling:- is one of the most common of the promotion tactics.our companies will hire

people to do the selling: sales representatives, inside sales representatives, retail sales, salesagents, or telemarketers who perform Face-to-face selling.

Advertising common promotion tactics. For advertise our product we go through:-

Media: television channel, news paper, internet.

Banners and pumplates: banners are hang on measure area of market in town.

Posters: posters are hanging besides the adjacent national highway of towns.

Road shows: road shows performance held in town.

Public relation: for effective PR OUR organization conduct events such as music programe at

centre of respective town of up.

• Haats or weekly markets:- where people from surrounding villages

conduct trade on fixed days. Covering the needs of a minimum of 10 to a

maximum of 50 villages, drawing as many as 51352 villagers.

• Meals:-gatherings of people for entertainment as well as the sale and

purchase of goods and services. Over 3445 melas are held in orissa

annually that hold an average of 2.6 lakh visitors.

• Wall Paintings:-one of the most widespread forms of advertising and are

quite the favorite amongst the Orissa rural masses.

• Customer contact ‘touch points’: includes 'Home-to-Home' campaigns

and other such customer contact programs that help initiate a close

interaction.



• Van Campaigns:-one of the most popular modes of communicating with

rural consumers.

• Event Management: There are several folk forms of events that are

performed in different states all over Orissa.

Folk media: It consists of folk songs, dances, puppetry, street theatre,

magic shows etc.

Interactive games: Many companies designs interactive games that help

draw large crowds where trials can be induced, thus facilitating spot sales.

FINANCIAL ASPECTS

FIXED CAPITAL

Sl. No. Details Qty Value (in Rs.)

1 Detergent plodder with 5 HP Motor 1 47,000

2 Sigma blender (350 Kgs. capacity) 1 15,000

3 Stamping machine 1 5,000

4 Platform weighing scale 1 5,000

5 Miscellaneous expenditure 3,000

6 Furniture and fixture 5,000

Total 80,000

MACHINERY AND EQUIPMENT

1 Land 5000sqft 500000

2 Godown 3000sqft 1100000

3 Loan 12% of 10lakhs 120000



4 Machinery And Equipment 80000

Total 18,00,000

Total FIXED COST per kg of production of soap: Rs. 18,00,000



WORKING CAPITAL PER MONTH

PERSONNEL

Sl. No. Description Nos. Value per kg

production

1 Skilled Worker 2 1.5

2 Semiskilled Worker 2 1.25

3 Watchman 1 0.3

Total 3.05

RAW MATERIALS

Sl. No. Particulars Qty.(Kg.) Rate(Rs./Kg.) Value (Rs.)

1 Oil 100 32 3200

2 Soda Ash 16 38 608

3 Water 50

4 Sodium silicate (binder) 100 9 900

5 Filler powder 50 3.25 162.5

6 Foam booster 2 120 240

7 Color 0.5 500 250

8 Perfume 0.2 200 40

Total 318.7 ≈ 315 5400

Cost of raw materials to produce 1kg of soap: Rs.17.14



UTILITIES

Sl.

No. Particulars Cost per month

Cost per kg of

production

1 Power 5000 0.5

2 Water 200 0.02

Total 1,700 0.52

OTHER EXPENSES

1 Postage and Stationery 400 0.04

2 Repairs and Maintenance 400 0.04

Total 800 0.08 DEPRICIATION

10% of Rs.12000 per month: Rs.0.06 per kg of production of soaps

Total VARIABLE COST per kg of production of soap:

3.05+17.14+.52+0.08+0.06 = Rs.20.85

BREAK EVEN ANALYSIS

Sales price = Rs. 30 per kg

Variable cost = Rs. 20.85 per kg

Fixed cost = Rs. 18,00,000

Break Even Quantity = X

Fixed Cost + X * Variable Cost = X * Sales Price

18,00,000 + X * 20.85 = X * 30



X = 196721 kg

Taking 10,000 kg per month production capacity,

No. of months required to achieve Break-Even Quantity = 196721/10000 = 19.67 ≈ 20 months

IMPLIMENTATION AND CONTROL



Conclusion

The ‘Go Rural’ mantra is the need of the hour for most of the companies to survive for a longer

time in the competitive market scenario. We can the urban and rural marketing mix use bycompay is quite different because of variation in culture ,behavior, and economical variations.

Rural marketing is an evolving concept, and as a part of any economy has huge tap able

potential. Marketers have long realized this opportunity. Improvement in infrastructure andreach, promise a bright future for those intending to go rural.

With income levels rising rural consumers are keen on branded goods nowadays, so the market

size for such products and services seems to have burgeoned. The rural population has shown atrend of wanting to move into a state of gradual urbanization in terms of exposure, habits,

lifestyles and lastly, consumption patterns of goods and services.

By 2012 it is expected that every village will be connected by an all weather road, every

village will have internet connectivity, and almost every home will have electricity and possessa mobile phone. This significant improvement in rural infrastructure coupled with agriculture

reforms already under way we can expect rural markets to reach inflexion point. This will lead

to an explosion in demand the way it happened in the urban markets in the mid 90s as a resultof easy consumer finance, a boom in the IT sector and steep increase in corporate salaries.

Companies are not anticipating this boom and many will be taken by surprise when it happens.

References:

People of India Uttar Pradesh Volume XLII edited by A Hasan & J C Das, Manohar

Publications

Census of India. Ministry of Finance India. http://indiabudget.nic.in/es2006-

07/chapt2007/tab97.pdf. Retrieved 2008-12-18.

People of India Uttar Pradesh Volume XLII Part One edited by A Hasan & J C Das

pages 21 to 23 Manohar Publication

launch a new soaps in orissa

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