FMCG companies are increasingly targeting rural Indian markets, which represent 70% of the population. To succeed, companies must tailor innovative marketing strategies to rural consumers' unique needs and purchasing behaviors. Nirma used low-cost products like soap and detergent to attract price-conscious rural customers. HLL promoted Clinic Plus shampoo through demonstrations to educate rural communities. Coca-Cola and Pepsi used small packaging and extensive distribution networks to reach rural customers. Overall, companies that reduce costs through new technologies and product diversification while developing culturally appropriate marketing have found success in rural India.

1. MARKETING INNOVATIVE
STRATEGIES EFFECTS ON FMCG
COMPANIES IN RURAL MARKETS
Presented By:-
KIRAN RAMDAS SINALKAR
10/366
AKASH BALASAHEB SHELKE
10/365

2. INTRODUCTION
 The scope for the FMCG in Rural market is fast growing.
 There are nearly 6,38,000 villages in INDIA. Of these only 0.5%
have the population above 10,000. And 2% of the population
between 5,000 to 10,000. 50% of the villages have a population
below 200.
 At least 75 per cent of the male working population engaged in
agriculture and allied activities would qualify as rural.
 70% of the total population live in rural India.
 From this it becomes clear that the rural India is the best market ever
for the FMCG in the country.

3. SOME OF THE FAST MOVING
CONSUMER GOODS IN INDIA

4. FMCG COMPANY’S FOCUS ON
PRODUCT INNOVATION
 Many FMCG companies a large chunk of their revenues up to
about 60 per cent comes from new product launches.
 Companies like Dabur, ITC, Britannia Industries, Nestle and Amul
HUL, ITC, Nestle, Procter & Gamble and GlaxoSmithKline
Healthcare account for almost 70 % of FMCG revenues in the
country spend almost 10 % of their turnover on advertising and
brand promotion.
 They market their brand through heavy expenditure on brand
promotion, advertisement and a proper marketing channel.
 The promotion strategy includes tying up with Bollywood actors
and other celebrities, brand ambassadors to advertise and
promote their products.

5. DABUR’S BRAND AMBASSADOR MR
AMITABH BACHAN

6.  Marketing and advertising differs from region to
region, there can't be a single strategy for the whole of
India, as one marketing strategy will not work in other
region as there might be a total disconnect in terms of
the whole concept or an ad or the strategy.
 And especially if one is placing a product targeted at
the rural consumers, here also it is a different ball
game altogether.

8. NIRMA PRODUCTS - A BREAK
THROUGH IN INDIAN RURAL MARKET

9. STRATEGIES OF NIRMA
 NIRMA is considered to be one of the leading brand which used
various innovative techniques to capture the rural market.
 It introduced various small budget consumer goods to attract the
rural consumers. They targeted mainly on the third class
consumers to marker their products.
 They introduced toilet soaps, detergents and other consumer
attractive goods at a low cost.
 They were considered one of the toughest competitor to Unilever
India ltd.

10. UNILEVER INDIA – RURAL MARKETING
INITIATIVES

11.  HLL derived around 50% of its sales from rural areas.
 HLL's rural marketing initiatives began way back in 1988, when the
company had launched 'Wheel' for the rural and lower income urban
consumer.
 As a competition to the NIRMA products they introduced Wheel to
demolish the market of NIRMA and to capture the rural market.

12. HLL’S CLINIC PLUS SHAMPOO
 HLL introduced Clinic Plus.
 They made the rural people to understand the product by
demonstrating its uses to the people in public.
 They made the people understand the effect of using shampoo and
they demonstrated how it makes the hair smooth.

13. RETAILER AND DISTRIBUTION
NETWORK AND WITH INNOVATIVE
MARKETING STRATEGIES
 The two major Cola brands Coca-Cola and Pepsi apart from their
usual battle over market share have been trying hard to enter into
rural markets.
 They have come up with many marketing strategies such as pricing,
distribution strategies etc, like providing ice boxes,
refrigerators, credit facilities etc.
 They provided small bottles apart from 1 liter bottles to attract the
low income groups.
 They both used a good effective distribution channel to make the
product available in the rural consumer markets.

14. TINS AT A MUCH CHEAPER RATE

15. BRAND-BUILDING ACTIVITIES AND
COST-REDUCTION SPUR SALES IN THE
FMCG SPACE
 Almost 50 per cent of the FMCG companies cited earlier reported a
double digit growth in sales. Companies like P&G, ITC, Tata Tea,
Dabur, Marico, GlaxoSmithkline, Gillette and Godrej recorded good
top line growth.
 This is because of the various techniques they used to develop their
products according to the rural consumers needs.
 They adopted various new technologies to out run their
competitors.
 They concentrated more on the product diversification.

16. NEWLY DIVERSIFIED PRODUCTS UNDER
FMCG SECTOR

17. COLGATE
 Colgate-Polmolive India Ltd, which makes oral care and personal
care products kept expenses down by reducing its stock keeping
units or SKU.
 They also diversified their products. Colgate herbal, Colgate Salt,
Colgate white, Colgate gel and much more.

18. BRITANNIA INDUSTRIES LTD
 They increased their net profit by 10.0% after entering in to the
rural markets.
 They increased the price of their products by 5% to 7%.

19. DABUR INDIA LTD AND NESTLE INDIA LTD
OTHERS
 They focused to reduce their operational cost by reducing their
cost they spend on the purchase of the raw materials.
 Godrej Consumer Products Ltd focused on reducing the cost by
organizing a good supply chain management process and
selecting a better and a cheaper mode of transport.
 Wipro Ltd provided the consumers with a reduction in the weight
of the products at the same price thus improving their margin of
profit.

21. CONCLUSION
 From all the above information's it is clear that the rural India can be
one of the most feasible market for the development of the FMCG
in INDIA.
 FMCG’s companies or marketers make consistent attempts to
innovate tools and strategies to overcome the challenges the face in
the business area.
 Corporate India and government bodies alike have made several
efforts to bridge the gap between rural and urban India.
 Thus if planned properly and with the use of new strategies and
technologies the rural India market can be captured and a great
margin of profit can be earned by the FMCG companies.