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MART

Comprehensive Rural Marketing Solutions


Introduction to pilot implementation team
Profile
• India’s leading Rural Consultancy Firm, working
both in Corporate and Development sectors
• Provide end to end solutions
• Corporate to community
• Create and disseminate knowledge
• Innovate new approaches
• 45 professionals, offices in 4 states

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Our Services

RESEARCH Qualitative & Quantitative

Develop marketing strategies on product development,


STRATEGY
last mile distribution, below the line communication

Apply Strategy in Contained Geography to test relevance


PILOTING
and effectiveness

Scale up Strategy based on learning from pilot &


SCALE UP
Handhold client for scale up implementation

TRAINING Rural Sensitization

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Capability in Implementation
• Conducts Pilots
• Concept test product prototypes
• Market test product prototypes
• Marketing concepts
• Distribution
• Promotion
• Scale up of sustainable models
• Last Mile Distribution
• Communication using Innovative Promotion platforms
• Marketing mix model (s)

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MART’s
Implementation Capability
Developing a Concept  Pilot  Developing Model  Scale Up

Rasoi Ghar
HPCL
HP Gas

Company Quali/Quanti Strategy


objective Research

• Identify new • Negligible penetration in New Product


markets for LPG rural markets 14.2 kg Rs2K
as urban

Cost
•Affordability an issue…

Cap
markets getting
•High connection cost of 5kg Rs0.8K
saturated
14.2kg cylinder Rs2000
Cost
•High recurring cost Rs300 •Rs95(affordable)
• Assess
acceptance of •Availability… •Dealer to set up
existing ext. counters in
• Not available at consumer
product doorstep large villages

• additional transport cost as •Awareness


carrying big cylinder on
bicycle inconvenient
creation for 5 kg
through haat
•Myths about cylinder burst promotion
& taste of food
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HP Gas

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HP Gas
A New
Pilot Inputs Scale Up
Concept

• 3 states; 1 district • Evolved • 1500 kitchens


• Barrier to concept of “use
each purchase as myths in UP, MP,
& pay” Orissa
continued… Community
• Created awareness established;
of 5Kg, in 30 haats Kitchen to 10K planned
•Important to overcome myths
make potential & avoid risk of
• 30 extension consumers • Dealers
counters opened investing in continue to
experience connection
benefits & safety open more
before having to stocking points
•PPP model with in villages
invest in new SHGs, Panchayat
connection & HP

This model won the RMAAI Gold Medal and Special Jury Award,
2005 for best long term rural initiative in India
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HP Gas

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MART’s
Implementation Capability
Developing a Product Concept  Prototype testing  Product Launch

Developing a Biomass Stove


Shell Foundation

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Shell Foundation

Company Product
Quali Research
objective Concept

• Reduce indoor air • LPG is only clean fuel in rural but limited • Need for a low
pollution in homes in availability smoke emitting
Tamil Nadu & biomass stove
•Major cooking fuel is biomass
Karnataka
• should be
•But biomass generates smoke causing health
portable
problems
•Appropriate for
• food varies and also the size of utensils
different size of
•Different types of cooking stoves used for cooking vessels
cooking…
•Should not cost
• wide variety of food more than $5
• many sizes of utensils depending on family
•single burner in one state & double in other

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Shell Foundation

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Shell Foundation

Prototype Prototype Inputs for Commercial-


Development Testing New Product ization

• Locate • Multiple • Steel body was more acceptable • Potential channel


potential local prototype designs over refractory partners identified
manufacturer
• Placement with • Stove height reduced for floor
potential customer cooking • Brand name tested
• Provide inputs
segments
to stove designer • Fuel space needed adjustment • Communi-cation
to develop •Continuous materials tested
• Value for money perception was
prototypes feedback on each
raised. Pricing was recommended at
stove type and
$10-$12 • Supported on
also a comparison
between • Communication cues for the new product launch and
prototypes product were identified handholding

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Shell Foundation

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MART’s
Implementation Capability
Developing a Concept  Pilot  Developing Model  Scale Up

LAST MILE DISTRIBUTION

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Innovative model using the women from SHG groups

PROJECT SHAKTI

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Hindustan Unilever
• Hindustan Unilever Limited (HUL) is India's
largest fast moving consumer goods company
• Has a wide range of Home & Personal Care
products and Foods & Beverages
• Combined Turnover of $ 3.8 billion.
Home & Personal Care Foods
Personal Wash Tea
Fabric Wash Coffee
Home Care Branded Staples
Oral Care Culinary Products
Skin Care Ice Creams
Hair Care Modern Foods ranges
Deodorants & Talc's
Color Cosmetics

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Project Shakti – Women's Empowerment
HUL Rural Coverage Strategy

High Indirect Coverage


Combined IDC
5000+ pop villages
Accessibility

Shakti Streamline
Low 1000 – 2000 pop villages 2000 – 5000 pop villages

Low Turnover / market High


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Project Shakti – Women's Empowerment
Coverage Process

Star Seller
Star Seller
Rural
Distributor
(RD)

Star Seller

Star Sellers take reach beyond motorable roads

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Project Shakti – Women's Empowerment
Concept
• Unilever wanted to penetrate deeper to 1,000 to
2,000 pop villages – existing distribution model
unviable
• Self Help Group women members were looking for
more sustainable business opportunities in small
village markets

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Project Shakti – Women's Empowerment
Process
Business concept explained to the group women

Women get consent from family and husband

Entrepreneurial women selected and appointed

Women trained on prices, discounts, buying, selling,


brand communication etc

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Project Shakti – Women's Empowerment
Project Shakti
• MART’s role
 Conceptualization,
Pilot, national rollout
 Identification &
selection of potential
Shakti dealers
 Capacity Building of
Shakti dealer to
become
entrepreneurs
 Arranging finance
from banks
 Link to HLL
distribution network

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Shakti Vision
• Shakti 2005-2006
• 15000 Shakti Entrepreneurs
• 50000 villages
• 10 Million Consumers
• Turnover 128 Crore
• Shakti 2008
• 30,000 Shakti Entrepreneurs
• 100,000 villages
• 100 million consumer

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Developing Low Cost distribution
Model

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Reaching The Last Mile
• MART’s model
Reach the last mile with educated unemployed rural
male youth
• Recruit class 10+, rural youth (18-30 age) with skills in
communication and community mobilization
• Build their skills in product and brand communication
(customized to company)
• Build their skills in salesmanship
• Deploy them to take corporate brands into the hinterland
and rural households.

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The Model
• Trained volunteer is
provided a branded bicycle,
umbrella and a box to carry
ready stocks.
• He wears a branded T-shirt
and a cap
• Route Plans, PJP’s and
JC’s are developed for him
to cover uncovered markets
• He is attached to the rural
distributor from where he
picks up stock on cash-n-
carry.

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The Model
• Market coverage
• Daily visit to uncovered
areas (> or < 2000 pop
strata)
• Retailers in 4 villages
or
• 1 haat and 2 villages in
a day
• Covers villages within
10km radius from own
village
• Retailer sale at trade
margins and haat sale
at price close to MRP

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The Model
• Communication
• Focuses on Brand
Recognition to fight
menace of spurious
• Communicates Brand
benefits
• Puts banners, posters
etc

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Results
• Coverage of
• 4 Haats every week
• 30 villages
• Average daily sale Rs 700/ youth
• Monthly income Rs 3,000/youth
• Nominal cost to company
• Starting at Rs1500/-youth/ month on a reducing scale,
finally Rs 900

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MART’s
Implementation Capability
Developing a Concept  Pilot  Developing Model  Scale Up

Improving Access to Health Services

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Project Arogya

Company Quali& Quanti Strategy


objective Research

• Understand the •Rural population unaware of health • identified the ailments


awareness of issues arising out of mal nutrition, for which the company
identified ailments, infection and allergy had products and wanted
health issues and to gain a larger market
•Recovery of ailment is considered
related pain points in effective as soon as the patient feels •Nutrition for mother & child,
accessing health TB, allergies were prioritized
better and can go back to work. Most of
services the time do not complete the dose •Need to associate with
• Assess the reach of qualified doctors in semi-
•Health service providers in villages
the company brands urban
restricted to RMP and government
appointed nurse. •Need to build awareness
•Quality health services, both public about timely and complete
and private, available in block town treatment among people

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Project Arogya
A new
Pilot Inputs Scale Up
approach

• 3 different models • information from • Challenge was re- • Scaled across


developed to create health workers on distribution of health 100 districts
awareness. Models based where to get treatment products such that
on level of health helped villagers legal issues do not
awareness. •Relatively less delay in arise
seeking treatment •Changes in
•Saved costs categorization of products
•Mobile health advisors were
•Appropriate treatment •Appointment of new sub-
core to all models
helped build confidence distributors at sub-district
•Health service providers levels
• Association with health appreciated company •Associate with
care chain efforts
practicing doctors &
•Issues on availability of
company products affected qualified rural medical
the pilot practitioners

The model has been nominated for the Innovative Marketing Model category in
the Golden Peacock Awards 2008 32
Project Arogya

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MART’s
Implementation Capability
Innovation in Communication Platform  Pilot  Scale Up

Below the Line Communication

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Rural Promotion : Marico

Parachute: Fighting Loose Coconut Oil in Haats


Problem: Rural markets in Maharastra sold loose coconut oil and
lookalikes of Parachute. Price Rs 6 vs Rs 10 per 100 gms
Solution Recommended: To counter competition from loose oil,
MART suggested promoting Parachute pouch packing of 6ml, 20ml,
50ml and 100ml in haats.
Action: MART piloted promotion in 4 haats in 2 districts in
Maharastra. Participation strategy was 3 consecutive outings
1st week for awareness generation
2nd for sales promotion and
3rd for sales linkages with haat sellers
Result: Parachute sale jumped from Rs 500 per haat to Rs 3000
over three weeks

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RURAL PROMOTION: TATA SHAKTI

Promotion of Corrugated Roofing Tin Sheets


Campaign objective
educate consumer on brand promise of TATA
Identification of genuine brand
Build brand salience in a category which was generic (no brand
differentiation)
Haats & mandis were identified for below the line activities
Pilot was conducted at 30 locations, to test the promotion strategy & make
refinements in participation methodology
Campaign in 6000 rural locations spread across 11 states, rolled out within 4
months. 80% locations covered were haats.
Successful roll out for 4 successive years

Company had assessed 37% growth in sales in financial year 2004-05 due to the
campaign
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RURAL PROMOTION: TATA SHAKTI

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Our Clients-Corporate
• We work with several Fortune 500 and large
Indian companies

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Our Clients – Development
• We work with the development agencies

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