c c

c

   
c

?

recent
 the focus of marketers n Ind a was the urban consumer
and b
arge no spec f c efforts were made to reach the rura
markets. But now
t s fe
t w th the tempo of deve
opment acce
erat ng n rura
Ind a coup
ed
w th ncrease n purchas ng power because of sc ent f c agr cu
ture the
chang ng
fe st
e and consumpt on pattern of v

agers w th ncrease n
educat on soc a
mob
t mproved means of transportat on and ts var ous
sate

te channe
s have exposed rura
Ind a to the outs de wor
d and hence
the r out
ook to
fe has changed.

Com ng to the frame work of Rura
Market ng broad
 nvo
ves reach ng

the rura
customer understand ng the r needs and wants supp
 goods and
serv ces to meet the r requ rements carr ng out after sa
es serv ce that
eads
to customer sat sfact on and repeat purchase/ sa
es.

Rura
market ng has become the
atest mantra of most corporate.

Compan es
ke H ndustan Lever Co
gate Pa
mo
ve Br tann a and even
Mu
t nat ona
Compan es (MNCs)
ke Peps  Coca Co
a L.G. Ph
ps and Cav n
Kare are a

ee ng rura
to capture the
arge Ind an Market.






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º
 º 

© ?o stud rura
market ng n deta
.

© ?o know mportance of rura
market ng.

© ?o know the scope rura
market ng n Ind a.

© ?o know the ro
e p
aed b rura
market ng n deve
opment of rura

Ind a.

© ?o know the strateg es adopted b Par
e n rura
market of Ind a.

© ?o know the serv ces offered b Par
e n the rura
Ind a.

© ?he bas c object ve of the surve was to understand the concept of rura

market ng c
ear
 b means of Par
e b scu ts demand ana
s s.

© ?o understand the essent a
factors concern ng rura
market ng.

© ‘nderstand ng consumer behav or of rura
Ind a w th respect to rura

market ng.

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º º 


© ?he project s cover ng on
 the certa n areas &aspects of market ng.

© ?he secondar data s based on nternet & books re
ated to market ng.

© ?he project s conta n ng on
 one examp
e of Par
eǯs.

© ?h s stud s based on descr pt ve stud.














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c

ººº


?h s project s the m xture of theoret ca
as we

as pract ca
know
edge.
A
so t conta ns deas and nformat on mparted b the gu de. ?he secondar
data requ red for the project was co

ected from var ous webs tes and books
of reputed authors.

?he project started w th sort ng a

the raw data and arrang ng them n
perfect order. ?o add va
ue to the project and to understand the pract ca
t of
rura
market ng pr mar data has been done to actua

 understand the
surve n a better wa.




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c

º c 

6, 31,307 villages, 700 million people a myriad of languages many traditions and a rich
culture. A vibrant land with a long History. Rural Indian people are known as much for their
warmth as their diversity. Welcome to the land of mysticism. The real BHARAT.

Ú
   
  




INDIAN ECONOMY

RURAL SECTOR URBAN SECTOR

AGRICULTURAL NON-
AGRICULTURAL

--CROP CULTIVATION --INDUSTRY

--ANIMAL HUSBANDRY --BUSINESS
--DAIRYING --SERVICES
--FISHERIES
--POULTRY
--FORESTRY

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c

Increase in competition, saturated urban markets, more and more new products
demanding urban customers, made the companies to think about new potential markets. Thus,
Indian rural markets have caught the attention to many companies, advertisers and multinational
companies. According to a recent survey conducted by     
!"#$ %& the purchasing power of the rural people has increased due to
increase in productivity and better price commanded by the agricultural products. By and large
this rise in purchasing power remains unexploited and with growing reach of the television, it is
now quite easy for the marketers to capture these markets.

Rural marketing has become the latest mantra of most corporate. Companies like
Hindustan Lever, Colgate, Palmolive, Britannia, and even Multinational Companies (MNCs) like
Pepsi, Coca Cola, L.G., Philips, and Cavin Kare are all eyeing rural to capture the large Indian
Market. Coming to the frame work of Rural Marketing broadly involves reaching the rural
customer, understanding their needs and wants, supply goods and services to meet their
requirements, carrying out after sales service that leads to customer satisfaction and repeat
purchase/ sales.





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Change is the Ú '(   Though change is common, some changes seem
peculiar and paradoxical. Today, we witness in Indian Economy one such a bi-faceted change ± a
change from national to global on one side and, urban to rural on the other. 

³   is among the Buzz words of this new era.

Though change is evolutionary and characteristic of a
developing nation with huge population and vast
resources, one requires a visionary entrepreneurship to
respond proactively to it.

The first five years of new millennium will belong neither to the urban markets, which
have reached saturation and where margins are under pressure nor to the export markets, which
suffer from inadequate infrastructure back home, and uncompetitive price overseas. But it
belongs to RURAL MARKETING.

³ 
 )´ has become the latest mantra of most corporates. FMCG
majors like HLL, P&G, PARLE, COLGATE PALMOLIVE, BRITANNIA, etc. were the first to
wake up this fact. Even MNC¶s like LG, PHILIPS, WIRLPOOL, and other consumer electronic
majors are also gung-ho about the rural segment. The fever has spread the consumer durable
companies and beyond.

Today, many of the Corporates and MNC¶s look at these markets by compulsion as well
as by choice. Compulsion, because markets are saturated, and there is nowhere to go. Choice: -
because they are attractive and viable.

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9
 

 
 

9

 


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Page 8
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º º 

Rural marketing is a process of developing, pricing, promoting, distributing rural-specific

goods and services leading to exchange between urban and rural markets which specifies
consumer demand and also achieves organizational objectives.

Rural marketing involves a two-way marketing process, however, the prevailing flow of
goods and services from rural to rural areas cannot be undervalued.

Since demands¶ of urban and rural folks are different, companies should manufacture
products to suit the rural demand rather than dump urban products on rural consumers.

The process should be able to straddle the attitudinal and socio-economic disparity
between the urban and rural consumers.




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cº

URBAN RURAL

A major part of rural marketing falls into this category. It includes the transactions of
urban markets who sell their products and services in rural areas. The following are some of the
important items, which are sold in rural areas and manufactured in urban areas.
For example: - pesticides, fertilizers, seeds, FMCG products, bicycles, consumer durables, etc.

RURAL URBAN

Transactions in this category basically fall under agricultural marketing where a rural
producer (farmer) seeks to sell his produce in an urban market. An agent or a middleman plays a
crucial role in this marketing. The following are some of the important items sold from rural
areas to an urban market: seeds, fruits and vegetables, milk and related products, forest produce.

RURAL RURAL

This includes the activities which takes place between two villages in close proximity to
each other. The transactions relate to the areas of expertise the particular village has. The items
in this category include: agricultural tools, handicrafts and bullock carts and some dress
materials, etc.

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A thorough understanding of the rural markets has become an important aspect of

marketing in the Indian marketing environment today. This attraction towards the rural markets
is primarily due to the colossal size of the varied demands of the 230 million rural people. In
fact, the rural markets are expanding in India at such a rapid pace that they have overtaken the
growth in urban markets. This rate of growth of the rural market segment is however not the only
factor that has driven marketing managers to go rural. The other compelling factor is the fact that
the urban markets are becoming increasingly complex, competitive and saturated.

Further, the vast untapped potential of the rural markets is growing at a rapid pace. The
policies of the government largely favor rural development programmes. This is clearly
highlighted by the fact that the outlay for rural development has risen from Rs 14000 crores in
the 7th plan to Rs 30000 crores in the 8th plan period.

These figures also prove that the rural market is emerging stronger with a gradual
increase in disposable income of the rural folk. In addition, better procurement prices fixed for
the various crops and better yields due to many research programmes have also contributed to
the strengthening of the rural markets. Thus, with the rural markets bulging in both size and
volume, any marketing manager will be missing a great potential opportunity if he does not go
rural.

Page 11
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Page 13
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The Indian rural market with its vast size and demand base offers great
opportunities to marketers. Two-thirds of countries consumers live in rural areas and almost
half of the national income is generated here. It is only natural that rural markets form an
important part of the total market of India. Our nation is classified in around 450 districts,
and approximately 630000 villages, which can be sorted in different parameters such as
literacy levels, accessibility, income levels, penetration, distances from nearest towns, etc.


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©
7!!*: Nearly 60 % of the rural income is from agriculture.
Hence rural prosperity is tied with agricultural prosperity.
© 0 "    3*: 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.
©  +: The rural consumer values old customs and tradition. They do not
prefer changes.
© 3"",!.+0 "":Rural consumers have diverse socio-economic
backwardness. This is different in different parts of the country.
© " (": The Infrastructure Facilities like roads, warehouses,
communication system, and financial facilities are inadequate in rural areas. Hence
physical distribution becomes costly due to inadequate Infrastructure facilities.

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•%  )      
 :

The rural market of India is large and scattered in the sense that it consist of over 63 crore
consumers from 6, 38,365 villages spread throughout the country.

£%
2
(
 ) :
 

Nearly 60% of rural of rural income is from agriculture hence rural prosperity is tied with
agricultural prosperity. During the harvest season the demand for consumer goods in villages
goes up. The population securing income from non- agricultural sector is now increasing due to
rural development programmes.

;%   )   
 :

The relative status of the rural areas of different state differs. Parameters on which differ
are health and educational facilities, nature of facilities, availability of public transport,
electricity, T.V. transmission, banks, post office, etc.

6%    < 48) 5  8:


The rural consumers of India are vastly diverse in terms of religious, social, cultural and
linguistic factors. 

=%  8)'  4)(  :


The market has grown not only in quantitative terns but qualitatively also. Many new
products have made entry into rural consumer basket.

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w% 5) 4 :

The saving habit of rural community is increasing in recent years as a result of the
efforts put by co-operative and commercial banks.

Õ%
  4 :

The rural people are very much fond of music and folklore. ³tamasha´ is a popular form of
entertainment in Maharashtra. Similarly ³nautanki´ in uttar Pradesh and for more there are
televisions, video flim, and radio to influence the rural crowd.

%4 8  :

Rural consumers sense a patronizing attitude of even formidable barriers to protect

themselves. It is not easy to introduce new products for them. They are bigger brand loyalists
than their urban counterparts.

>%    

  : 

Inter personal communication skill accounts for 80% of the rural communication process
in the villages. This means that the word of mouth recommendations by users and sheer
familiarly influences rural folk in their purchase decisions.

• %  :

Very often dealers act as consultants and so their influence carries a lot of weight at the
point of purchase. Decisions regarding the brand of the consumer durables are taken by the man
in the house hold in consultation with others in the community.


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Although the rural market does offer a vast untapped potential, it should also be
recognized that it is not that easy to operate in rural market because of several problems. Rural
marketing is thus a time consuming affair and requires considerable investments in terms of
evolving appropriate strategies with a view to tackle the problems.

#!7.!" :

©   3       3 

+": The number of
people below poverty line has not decreased in any
appreciable manner. Thus underdeveloped people and
consequently underdeveloped market by and large
characterize the rural markets. Vast majorities of the rural
people are tradition bound, fatalistic and believe in old
customs, traditions, habits, taboos and practices.

© +#/"!!(":

Nearly fifty percent of the villages in the country do not have all
weather roads. Physical communication of these villages is
highly expensive. Even today most villages in the eastern parts
of the country are inaccessible during the monsoon.

©
 !!: Among the mass media at some point of time in the
late 50's and 60's radio was considered to be a potential medium for communication to
the rural people. Another mass media is television and cinemas. Statistics indicate that
the rural areas account for hardly 2000 to 3500 mobile theatres, which is far less when
compared to the number of villages.

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© "" 
+: Rural areas are scattered and it is next to impossible to ensure the
availability of a brand all over the country. Seven Indian states account for 76% of the
country¶s rural retail outlets, the total number of which is placed at around 3.7 million.
Advertising in such a highly heterogeneous market, which is widely spread, is very
expensive.

©
/**" ": The number of languages and dialects vary widely from
state to state, region to region and probably from district to
district. The messages have to be delivered in the local
languages and dialects. Even though the number of recognized
languages is only 16, the dialects are estimated to be around
850.

© 0   !: Even though about 33-35% of gross domestic product is
generated in the rural areas it is shared by 74% of the population. Hence the per capita
incomes are low compared to the urban areas.

© 03" /: - The literacy rate is low in rural areas as compared to urban
areas. This again leads to problem of communication for promotion purposes. Print
medium becomes ineffective and to an extent irrelevant in rural areas since its reach is
poor and so is the level of literacy.

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The past two decades have seen a dramatic expansion of exposure to mass media in rural
areas. Since these are, almost, by definition urban media at present is an overwhelmingly urban
portrayal of life and values; their impact on attitudes and behavior has been profound.

  is the medium with the widest coverage. Studies have recently shown high levels
of exposure to radio broadcasting both within urban and rural areas, whether or not listeners
actually own a set. Many people listen to other people's radios or hear them in public places.
Surveys indicate that in rural areas more than a one third of the married women of reproductive
age have listened to a radio within the last week.

3"&3  !" expose viewers to a common window on styles of life

and behavior, an impact increased by the supranational reach of the media. Television is
extremely popular where it is available. Television increasingly exposes viewers to a wide range
of national, regional and international viewpoints. Rural exposure to television has been lower by
far than radio.

4 3"*   "!" "  .  #   !""

 At best, it is an exercise where communicators grapple with issues of language, regional
and religious affiliations and local sensitivities. Most often finding the right mix that will have a
pan-Indian rural appeal is the greatest challenge for advertisers. But more often than not,
marketers throw in the towel going in for simplistic solutions.

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5"#""!+*#!""! 3:,

l The Indian society is a complex social system with different castes, classes, creeds and
tribes. The high rate of illiteracy added to the inadequacy of mass media impedes reach
almost to 80% of India's population who reside in village.

l Mass media reaches only 57% of the rural population. Generating awareness, then, means
utilizing targeted, unconventional media including ambient media.

l Mass media is too glamorous, interpersonal and unreliable in contrast with the familiar
performance of traditional artist whom the villager could not only see and hear, but even
touch.

l The communication and the design of marketing mix need to be different, as what attracts
one need not attract the other as well. So again, even if the media reaches a rural
consumer, there might not be an impact as he may fail to connect to it due to his different
lifestyles.

Moreover rural marketing is usually related with products having low profit
margins and high sales volumes and hence it is more important to emphasize the
availability of the product to all potential consumers than an overdose of expensive
inefficient mass-media strategies.

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To understand the way the rural markets work - we need to go to these markets and
spend time there in understanding them. We live in surroundings where the things are completely
different from what the rural customer experiences. And we can't understand him unless we go
and spend time there. Things like what time does he get up, etc need to be studied and customer
needs to be understood. Also these studies need to be passed on so others can also benefit from
the ground works done and enhance them further. We need in depth studies of the market, the
medium, the message and the rural customer in center of all these to understand the rural markets
completely.

©     : ,For the rural customer the choices

available are limited. So the retailer plays a very big
role in the purchase decision. Data on rural consumer
buying behavior indicates that the rural retailer
influences 35% of purchase occasions. The rural
customer goes to the same shop always to buy his
things. And there is a very strong bonding in terms of
trust between the two.

The buying behavior is also such that the customer doesn't ask for the things by brand but
like - š

  



 
š Now it is on the retailer to push whatever brand he
wants to push as they can influence the buyer very easily and very strongly on the
preferences. Therefore, sheer product availability can determine brand choice, volumes and
market share. ?


     
 



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©   (
 : -As a general rule, rural marketing involves more intensive
personal selling efforts compared to urban marketing. Marketers need to understand the
psyche of the rural consumers and then act accordingly. To effectively tap the rural market a
brand must associate it with the same things the rural folks do. Utilizing the various 

  to reach them in their own language and in large numbers so that the brand can be
associated with the myriad rituals, celebrations, festivals, melas and other activities where
they assemble, can do this.

In the Indian rural marketing context, perhaps linguistics could provide a new approach
to tackling communication issues and arriving at a better understanding of rural consumers.
Also, the manner in which symbols and icons are used, which provides insights and clues
into the mindsets of rural audiences, can be deployed to grab their attention.

©   
 can be used to reach these people in the marketing of new
concept. The traditional media with its effective reach, powerful input and personalized
communication system will help in realizing the goal. Besides this when the advertisement is
couched in entertainment it goes down easily with the villager.

#   !  + +?" /"& 0 "*"?"# *"&

3 !*? 3" $0+/ "%& !"& #!,,#! "  
  !"".3/" #""

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!!"&0###3"""/ #!+&" 
#0*"*":

 The */: Reckitt and Coleman uses NGO's in rural areas to educate customers about

product benefits.

 The "": Establishes one to one communication channels.

 The */: BBLIL markets its rural brands through magic shows and skits.

 The "": Use local idioms to convey your message in a meaningful context.

 The */: Hero Honda has established mobile service centers to take care of rural

customers.

 The "": Reinforce product quality through service indicators.

Another example of a """0,*  !* is that of the

company, Sun star Lubricants. Sun star prints leaflets in regional languages, attends
#/!*" and participates in agro meets to promote its products.

Sun star is using a combination of low pricing and incentives to distributors to

extend its reach in the rural areas. The quest is for higher volumes to offset marketing
costs, be it transaction costs of distributors or low selling price.

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Unfortunately, most marketers of today try to extend marketing plans that they use in
urban areas to the rural markets and face, on many occasions failure. They should adopt a
strategy that appeals individually to the rural audience and formulate separate annual plans and
sales targets for the rural segment.

^
 


Manufacturer Consumer




 Manufacturer     Consumer


 Manufacturer Consumer



Changes must be made in the marketing mix elements such as price, place, product and
promotion. Corporate marketers should refrain from designing goods for the urban markets and
subsequently pushing them in the rural areas. The unique consumption patterns, tastes, and needs
of the rural consumers should be analyzed at the product planning stage so that they match the
needs of the rural people.

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Ú






(  




    




  



 ". ""   ,3./   " are major problems

faced by the marketers. But if one takes a closer look at the characteristic features of the
rural market, it will be clear that distribution in fact, is no problem at all. For most
companies wanting to enter the rural markets, distribution poses a serious problem.

 #.!"#/" ". #!*! adversely

affect the service as well as the cost aspect. The existent market structure consists of
primary rural market and retail sales outlet. The structure involves stock points in feeder
towns to service these retail outlets at the village levels. But it becomes difficult
maintaining the required service level in the delivery of the product at retail level.

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º º 

 5 85  :,The way to overcome the problem would be by using company

delivery vans, which can serve  
 - it can take the products to the customers in every
nook and corner of the market and it also enables the firm to establish direct contact with them
and thereby facilitate sales promotion. However, only the bigwigs can adopt this channel. The
companies with relatively fewer resources can go in for syndicated distribution where a tie-up
between non-competitive marketers can be established to facilitate distribution.

-! of the successful strategy is that of Tata Cellular in rural Andhra Pradesh.
Inspire of low advertisement budget, they created a hybrid distribution channel, with four tiers
direct, retail, showroom and franchise outlets that were designed for easy reach. Specific road
shows to rope in different segments such as transporters, traders and PSU employees were
organized.

Mr. Harish Bijoor, CEO, Zip Telecom, says, "Rural markets need to be approached
differently and cannot be understood as extensions of urban markets. Most marketers err on this
count. Advertising that believes in translating the English version into the vernacular cannot
capture the rural heart. For rural markets, one needs to think in the local language, remote with
the local feel and mood and visualize advertising that is rich in this context."

To attract rural buyer¶s advertisers need to use simple films showing how a product is to
be used. Rajdoot Paints issues such functional advertising very effectively.

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The rural markets are expected to witness a different kind of a shift. As companies
aggressively compete to get a higher share of the rural pie, competitive advantage will lie with
those who have a higher reach.

Marketing according to a leading management theorist Peter Druker can be put in this
way ³There will be always, one can assume, be need for some selling. But the aim of marketing
is to make selling superfluous. The aim of marketing is to know and understand the customer so
well that the product or service fits him and sell itself. Ideally, marketing should result in a
customer who is ready to buy. All that should be needed then is to make the product or service
available."

Through this we feel that the gist of mktg. in rural & urban is the same. It is nothing but
teasing the minds of people, their desires, needs, expectations & playing with their psychology.
But the market for a product may vary in rural & urban area and the marketing strategies to
market the product is also different in urban and rural area

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 +**:

Rural customers are usually daily wage earners and they don¶t have monthly incomes like
the ones in the urban areas have. So the packaging is in smaller units and lesser-priced packs that
they can afford given their kind of income streams.

Packaging and package sizes are increasingly playing a vital

role in the decision making process of the rural buyers. Certain
products like detergents and paste are bought in large quantities,
whereas shampoos, toilet soaps, eatables are bought in smaller pack
sizes. The reasoning behind this is that the products that are common to
family members are bought in large pack sizes, whereas individual-use
products are preferred in smaller packs.

A successful example is that of HLL¶s project µOperation Bharat¶. HLL supplied hampers
for Rs. 5, 10, 15 and 20, each of which had a Clinic shampoo bottle, a tube each of Pepsodent,
Fair & Lovely, and Pond¶s Dreamflower Talc, in different sizes and combinations. The idea
behind this strategy was to have a product for hair care, dental care, skin care and body care.

 5!/:

Rural consumers are quite brand conscious. A rural consumer wants value for money
minus the frills. Zany advertising and marketing would be a no-go for this sector. A high price
tag usually deters the rural consumer from purchase. To counter this, companies need to resort to
low unit price strategy to expand sales.

A good example of this would be the sachet revolution and combo-packs. According to a
survey, 95 percent of total shampoo sales in rural India are by sachets. Colgate has followed the
very successful sachet route by introducing the toothpowders in 10g sachets of Rs. 1.50 each and
the toothpaste with Super Shakti in 15g packs of Rs. 3 each. The entrant can also offer attractive
exchange and money back schemes for its middle and lower segments.

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 3:

An example is what Colgate did to its tooth powder packaging.

Firstly ± it made sachets as was required by their income streams.

Secondly - since many households don¶t have proper bathrooms and only have a window
or things like that to keep such things -- it was wise to cap this sachet for convenience of storage
while use. So this is what they did.

 !":

Direct Contact is a face-to-face relationship with people individually and with groups
such as the Panchayat and other village groups. Such contact helps in arousing the villager's
interest in their own problem and motivating them towards self-development.

!"!/.:


#  !"
4 "" !"

#3""!+/ !"3:

• !.

£ .73".!"# 
; !"6 -#
6 3# !"
= " 3

In result demonstration, with help of audio -visual media can add value.

" " launched Utsav range by painting Mukhiya's house or Post office to
demonstrate that paint don¶t peel off

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c

 ! !+*!!:

While planning promotional strategies in rural markets, marketers must be very careful in
choosing the vehicle to be used for communication. They must remember that only 16% of the
rural population has access to a vernacular newspaper. Although television is undoubtedly a
powerful medium, the audiovisuals must be planned to convey a right message to the rural folk.

The marketers must try and rely on the rich, traditional media forms like folk dances,
puppet shows, etc with which the rural consumers are familiar and comfortable, for high impact
product campaigns. Thus, a radical change in attitudes of marketers towards the vibrant and
burgeoning rural markets is called for, so they can successfully impress on the 230 million rural
consumers spread over approximately six hundred thousand villages in rural V 


 '*" 

Wall Paintings are an effective and economical medium for advertising in rural areas. They are
silent unlike traditional theatre .A speech or film
comes to an end, but wall painting stays as long as the
weather allows it to. Rural household¶s shopkeepers
and panchayats do not except any payment, for their
wall to be painted with product messages.

The greatest advantage of the medium is the power of the picture completed with its local
touch. The images used have a strong emotional association with the surrounding, a feat
impossible for even a moving visual medium like television, which must use general image to
cater to greatest number of viewers.

Such a promotion has led to an interesting outcome. For both, washing and for taking
bath - one requires water. Now for rural markets there are three sources of water - wells, hand
pumps and ponds. For the first in the history of advertising - these are being branded.

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Special stickers were put on the hand pumps, the walls of the wells are lined with
advertising tiles and tinplates are put on all the trees surrounding the ponds. The idea is to
advertise not only at the point of purchase but also at the time of consumption.

So the customer could also see the advertising when he was bathing or washing. Now, the
customers who bought these brands got a sense of satisfaction by seeing their choice being
advertised in these places while a question was put in the minds of the customers who had
bought other brands. So this was an innovative strategy that worked quite well.

Example of successful use of wall painting is by Nirma, which makes extensive use of
wall paintings; also a soil conditioner called Terracare uses images of Sita, Luv and Kush to
attract the rural consumer.

 "6
"

The country¶s oldest tradition holds the key to rural penetration. The average daily sale at a Haat
is about Rs.2.25 Lacs while the annual sales at melas
amount to Rs.3, 500 crore.

In rural India, annual melas organized with a

religious or festive significance are quite popular and
provide a very good platform for distribution. Rural
markets come alive at these melas and people visit them
to make several purchases.

According to the Indian Market Research Bureau, around 8000 such melas are held in
rural India every year.

Rural markets have the practice of fixing specific days in a week as Market Days when
exchange of goods and services are carried out. This is another potential low cost distribution
channel available to the marketers. Haats serve a good opportunity for promotion after brand
building has been done at Mela.

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Also, one satellite town where people prefer to go to buy their durable commodities
generally serves every region consisting of several villages. If marketing managers use these
feeder towns they will easily be able to cover a large section of the rural population.

* 0# #" "  " 33   1  #": Watch major
Titan Industries plans to aggressively approach the rural and semi-urban markets in India by
creating a separate image for its low-priced Sonata brand.

The company has opened its first showroom in Bhopal and nine more showrooms are to
be opened across the country. The marketing strategy being followed is to keep the prices of the
watches at an affordable range of Rs 295-1,195 and create a niche market for the brand.

They will not open showrooms in metros such as Mumbai or Delhi for Sonata brand. The
target segment would be the Rs 295-700 customers. They plan to open showrooms at locations,
which rural customers visit frequently such as bus terminals, railway stations among others.

Also, there would be a range of 300 models from smart plastics and all weather steel to all
gold and all-occasion gold and leather. Titan will be looking for the marriage season, which will
start from April-June where the rural customers become actual buyers.

Another innovative idea is that of 7/ .#@"     jeans is targeted at the
rural market. And they are leaving nothing to chance. Arvind Mills is teaching tailors in the
villages how to stitch the jeans.

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. ":

Even though they have been used before for redistribution,

Cycle Salesman could possibly emerge as one of the most cost-
effective ways of selling directly to rural consumers. The lack of
motor able roads and high distribution costs are not a hindrance any
more.

Mobile traders score over the conventional wholesale channel on both counts of cost and
reach. They travel either on foot or on cycles. That means transportation costs are virtually non-
existent. Besides these traders can target smaller villages, which conventional distribution
channels often do not touch?

The mobile traders can play a crucial role in buying decision. Most rural women are loath
to visit retail outlets. Mobile traders therefore are a smart way of reaching women in their home
environment. The women rely on these mobile traders to sell them goods in the security of their
home.

Rural India is a marketer¶s dream given its tremendous potential and increasing money
power. The formula of success for companies entails a complete shift in marketing and
advertising strategies.

A."""#!+&!!.,#"/ 3"/&.
0##+**.A

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#"!"#0" "3#""&0##!+"#!

!#../"

 

Nearly 45% of the rural Indians are literate (men 59%, women 31%). The rural customer
has much lesser education than his/her urban counterpart. Generally, the maximum education
that one sees among rural areas is still primary school or high school level. Though rural literacy
programmes have made significant headway, we are still confronted with a customer who is
illiterate. This comes in the way of the marketer using print media and handbills to promote the
product.

Visual displays and phonetics become important in promoting the product in the rural
areas. Demonstration on product usage and even on how to use it becomes integral to the
marketer¶s promotion strategy.

 0!3"

Though rural incomes have grown manifold in the last one decade, still an average rural
consumer has a much lower income than his or her urban counterpart. Still a large part of his
income goes to provide the basic necessities, leaving smaller income to be spent on other
consumer goods.

This makes the rural consumer more price sensitive than the urban consumer. Marketers
have evolved various strategies to lower the final prices. One such strategy is designing special
products as reflected by Hindustan Levers strategy of developing Sunlight Detergent Powder and
the other in even reducing the size of the product. Another aspect of this low income is that an
average rural customer buys a single unit of the product and not in bulk.

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 "

Typically, in the rural area one finds that the principal occupation is farming, trading,
crafts, and other odd jobs like plumbing, electric works, etc. One also finds primary health
workers and teachers in the rural areas. Since farming, animal husbandry and poultry farming are
the principal occupations we find that even here we have different types of farmers.

The basis for differentiation is obviously their size and ownership of land. We have their
consumption patterns differ mainly because of their income levels. For example, a large or a big
farmer will have almost everything that an urban consumer will have. He is an affluent farmer
and represents the highest end of the rural income continuum.

 )"

Typically in rural area, the reference groups are the primary health workers, doctors,
teachers and the Panchayat members. One may even observe that the village trader or the
grocery shop owner, commonly called the ³baniya´ or the ³mahajan´, may also be an important
influence in the rural customer¶s decision-making.

This is because the trader extends credit to the farmers. Today, another person is also
considered as a change agent and that is the rural bank¶s officer or manager. A marketer needs
to be aware of these influences that can effect a change in the rural customer¶s consumption
patterns.


 ."

A rural customer is fond of music and folklore. In a state like Maharashtra the rural
theatre called ³!"#´ has held sway with the people. Likewise, ³+´ in which the
artists are a part of the audience entertains the rural Uttar Pradesh. Today, television and radio
are important forms of media, which hold the attention of rural folks, so is the video.

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c

Radio Programmes reach almost >=B of the Indian population, while television
programmes is now as high as =B As we mentioned earlier because of a low education level
print media does not have that much of an impact as the audio and the audiovisual media does.

 !"!"

Basic cultural values have not yet faded in rural India. Buying decisions are still made by
the eldest male member in the rural family whereas even children influence buying decisions in
urban areas. Further, buying decisions are highly influenced by social customs, traditions and
beliefs in the rural markets. Many rural purchases require collective social sanction, unheard off
in urban areas.

The rural attitude towards consumption has been traditionally based on the values of
restrain and self-denial. But the high exposure to T.V advertising in recent years where brands
are working relentlessly to loosen this restraint by communicating escape/release and self-
confidence messages is having its effect, particularly on the youth. But Caste and family are
still paramount in rural life.

But we should bear in mind that with more and more marketers eyeing for a piece of the
rural cake, the awareness of the rural consumer is on the rise. He is moving towards branded
purchases and is becoming more and more demanding in his purchase decisions.

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º  c 
ºc   

A stereotype of the rural consumer or of rural consumer behavior is absent and

this creates problems as well as opportunities for the marketer. Variations in behavior reflect
geographical, demographical and behavioral influences on lifestyle, which provides marketers
with options to segment the market.

    "   ./* .#3&  !+ !" "

 " #"#./*.#3 #3"
.#3#" #*!  0##!+
 .""  "*! #  !+ +* # 0* "
" :

C 3!#"!

C)*#"
C
C#"
C3" "

Obviously rural consumers do make some purchases from urban areas (towns etc)
because there are a few product categories where rural distribution is still comparatively low and
therefore the consumers buys from towns; and in certain cases, the consumer seeks variety. In
the case of biscuits, toilet soaps and washing powders, the consumers may perceive the range in
villages as limited.

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c

º

 
ºc
   

Likewise social and attitudinal influences serve as a guide to decisions or product

positioning, media, message etc

l D

This is a nebulous subject that involves stratifying people into groups with various
amounts of prestige, power and privilege. Although the cast system in India is now illegal, it still
remains a tremendous influence on rural society. Within a society, an important broad factor
influencing consumer behavior is social class.

This constitutes a relatively permanent division of category in a society, a division that

brings out some restrictions of behavior between individuals in different classes; individuals in a
given social class share similar values, lifestyles, and behavior standards.

l D

Culture is a complex of abstract and material elements created by society. It refers to

values, ideas, attitudes and meaningful symbols, as well as artifacts elaborated in a society.
Those elements are transmitted from one generation to another and serve to shape human
behavior, implying explicit or implicit patterns of and for behavior.

l D

Perception is an approximate of reality. Our brain attempts to make sense of the stimuli to
which we are exposed. Perception can be defined as a process of selecting, organizing and
interpreting or attaching meaning to events happening in the environment. Exposure involves the
extent to which we encounter a stimulus.

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c

In rural areas, when marketers fall short of exposing their produces, alternate uses for the
same product crop up. Interpretation involves making sense of the stimulus. Perception being a
subjective process, different people may interpret an event differently.

l  ,

Consumer¶s attitudes are a composite of a consumer¶s beliefs, feelings and behavioral

intentions towards some object within the context of marketing, usually a brand or establishment.
These components are viewed together since they are highly interdependent and together
represent forces that influence how the consumers will react to the object.

l !*#",

This refers to as segmentation of target consumers for whom the product is being
designed. For example, the shaving cream and different accessories are only meant for men.
There are different ways of classification (i.e.) on the basis of age, sex, income groups, social
reasons, etc. which are prevailing in rural areas.

l *",

Influence groups involve consumer decisions, and individuals greatly influence each
other. The term comes about because an individual uses a relevant group as a standard of
reference against which he compares himself. The influence group includes reference groups,
opinion leaders, family and innovation.




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º c
  c


With the change in the economic policies of the government, many companies have
ventured into the rural markets. However, their efforts have not been sufficiently rewarded. The
various constraints can be enumerated as:-

l +  ": The basic facilities like roads, transport facilities, electricity,
telecommunication, etc are missing in most of the rural areas of India.

l
+*  0"": Lack of awareness and understanding of consumer
behavior in rural markets, creates problems in formulating strategies and plans.

l "**# ": There is a drastic difference in the utility value in the urban and
rural market. A product with a particular design and pattern may not find acceptance in
rural markets, but may be a success in urban areas.

l  9/  #"  ".: Due to comparatively less focus on rural

markets ± the exploitation of the rural market to the fullest extent has not taken place.

l !!: With the given level of literacy and awareness of rural population,
communication constitutes a major hurdle in exploiting rural markets. Various factors
like language, religion, superstitions, rigidity etc make communication in rural markets
more difficult.

l *# : Price factor is more crucial in rural areas than in urban markets.
The consumer must feel satisfied and benefited after paying the price for a particular
product.
l *#": In most rural families, it is the head of the family who decides what to
buy and when to buy. Consequently his purchase decisions are influenced by his own
personality traits, rather than the aptitude and perception of the actual consumers of these
goods.

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The potentialities of the rural market are

indeed great. With the changing economic
conditions in the country and with emerging rural
markets are bound to yield rich dividends.

All this calls for concentrated and coordinated

action on the part of both, the government and the
industry.

The *3!E"  lies primarily in

developing the infrastructure, e.g. a good network
of roads in the interiors of rural India, speedy
arrangements for better light, water and irrigation
facilities, financial and technical assistance in setting up industries in villages, and distribution of
their products. The government¶s role will be equally important in conducting rural market
surveys and compilation of vital statistics and their publication for the benefit of business and
industry.

A hand-in-hand working of the government and industry will definitely help define a smooth
road to development and growth of rural market.





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 cº º 

A long time ago, when the British ruled India, a small factory was set up in the suburbs of
Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was
dominated by famous international brands that were imported freely. 

Despite the odds and unequal competition, this company called Parle Products, survived
and succeeded, by adhering to high quality and improvising from time to time. A decade later, in
1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having
already established a reputation for quality, the Parle brand name grew in strength with this
diversification.

Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which
later went on to become leading names for great taste and quality.

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c

 º º º
cºº

,) has been a strong household name across India. The great taste, high nutrition,
and the international quality, makes ,) a winner. No wonder, it's the undisputed leader in
the biscuit category for decades. ,) is consumed by people of all ages, from the rich to the
poor, living in cities & in villages. While some have it for breakfast, for others it is a complete
wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of
getting charged whenever they are low on energy. Because of this, ,) " # 0 @"
*""*. ."".

Launched in the year •>;>, it was one of the first brands of  ". It was called
)"4"" mainly to cue that it was a glucose biscuit. It was manufactured at the
Mumbai factory, 5 and sold in units of half and quarter pound packs.

The incredible demand led  to introduce the brand in ".  +" and in
larger festive tin packs. By the year •>6>,  )" biscuits were available not just in

!. but also across the state. It was also sold in parts of # . By the early = ", over
•= " of biscuits were produced in the
!. factory.

Looking at the success of ,), a lot of other me-too brands were introduced in the
market. And these brands had names that were similar to Parle Glucose Biscuits so that if not by
anything else, the consumer would err in picking the brand. This forced Parle to change the name
from Parle Glucose Biscuits to ,).

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Originally packed in the wax paper pack, today it is available in a contemporary,

!!4+ with attractive side fins. The new airtight pack helps to keep the biscuits
fresh and tastier for a longer period.

,) grew bigger by the minute. Be it the packs sold, the areas covered or the number
of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It
had become an 
. The next level of communication associated the brand with the "3
3" like #"/, "#* *.

In the year •>>Õ, ,) sponsored the tale-serial of the Indian superhero, #+!
that went on to become a huge success. The personality of the superhero matched the overall
superb benefits of the brand.  extended this association with #+! and gave away a
lot of merchandise of #+!, which was supported by     "" !!.
The children just could not get enough of ,) and #+!.

In the year £ £, it was decided to bring the brand closer to the child who is a major
consumer. A national level promo - `,)
  #*' was run for a period of w
months. The promo was all about fulfilling the dreams of children. There were over = +#
responses and of that, over ; dreams were fulfilled. Dreams that were fulfilled ranged from
trips to "/ at "6 *; meeting their favorite film star #+"#; free
ride on a #  ; £ scholarships worth " = & ; a special cricket coaching camp
with the Australian cricketer - +/*; etc.

The year £ £ will go down as a special year in ,)@" advertising history. A year
that saw the birth of ),
 - a new ambassador for ,). Not just a hero but also a super-
hero that saves the entire world, especially children from all the evil forces. A campaign that is
not just new to the audiences but one that involves a completely new way of execution that is
loved by children all over the world - Animation. A TV commercial that showed ),
 saving
the children from the evil force called  launched this campaign. It was also supported
by print medium through "" and streamers put up at the retail outlets.

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),
, a new superhero of ,) has the potential of making it big. And will be
supported by a campaign that will see many a new creative in the future so as to keep the
children excited and generate pride in being a consumer of ,).

To make the brand much more interesting and exciting with children, it was decided to
launch a premium version of ,) called ,)
* in the year £ £. ,)
* is
available in two exciting tastes - F#GE and F"#0E. The year £ £ also witnessed the
launch of ,)
+ #+, which has the nourishing combination of milk and honey,
especially launched for the southern market.

,) continues to climb the stairs of success. Take a look at the global market where
it is being exported. First came the
  " then  followed by  and then
". An Indian brand, that's - to almost all parts of the world. After all that's what
you would expect from the ,)' @"*" *4"








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c

c
º
c c


Over the years, Parle has grown to become a multi-million US Dollar company. Many of
the Parle products - biscuits or confectionaries, are market leaders in their category and have won
acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total
confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and
Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a
strong imagery and appeal amongst consumers.

ë    

 
  
 
 


And yet, this reputation has been built, by constantly innovating and catering to new
tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist
wrapping of Mango bite.

In this way, by concentrating on consumer tastes and preferences and emphasizing

Research & Development, the Parle brand grows from strength to strength.

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†
º 

Parle Products has one factory at Mumbai that manufactures biscuits & confectioneries
while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this, Parle
has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in Karnataka.

The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilites
in India. Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for
confectioneries, on contract. All these factories are located at strategic locations, so as to ensure
a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic
printing & packaging facilities.

All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials, packaging materials & rigid quality
standards are ensured at every stage of the manufacturing process. Every batch of biscuits &
confectioneries are thoroughly checked by expert staff, using the most modern equipment. 


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c


c
c


The extensive 



 , built over the years, is a major strength for Parle
Products. Parle biscuits & sweets are available to consumers, even in the most remote places and
in the smallest of villages with a population of just 500.

Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or
indirectly. A two hundred strong dedicated field force services these wholesalers & retailers.
Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution
network.

The Parle marketing philosophy emphasizes catering to the masses. We constantly

Endeavour at designing products that provide nutrition & fun to the common man. Most Parle
offerings are in the low & mid-range price segments. This is based on our cultivated
understanding of the Indian consumer psyche. The value-for-money positioning helps generate
large sales volumes for the products.

However, Parle Products also manufactures a variety of premium products for the up-
market, urban consumers. And in this way, caters a range of products to a variety of consumers.






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c

º
cº
º
  
ºc

º



Biscuits were very much a luxury food in India, when Parle began production in 1939.
Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.

However, during the Second World War, all domestic biscuit production was diverted to
assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat in those
days, made Parle decide to concentrate on the more popular brands, so that people could enjoy
the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more premium
brands is on the rise. That's why; we now have a wide range of biscuits and mouthwatering
confectionaries to offer.

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 ºcº  

The Parle name conjures up fond memories across the length and breadth of the country.
After all, since 1929, the people of India have been growing up on Parle biscuits & sweets.

Today, the Parle brands have found their way into the hearts and homes of people all over
India & abroad. Parle Biscuits and confectioneries, continue to spread happiness & joy among
people of all ages.

The consumer is the focus of all activities at Parle. Maximizing value to consumers and
forging enduring customer relationships are the core Endeavour at Parle.

Parle¶s efforts are driven towards maximizing customer satisfaction and this is in synergy
with their quality pledge.

š  
        

 


  
   
 
    

  
  

 
   
    

    ?            



  


 
   
 




š




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c


c

 c 
c

Biscuits are the commodity which was considered as a product for the rich class people.
As this a product, that is traced out from western countries. So, it was considered to be an urban
based product. The rural people were not able to get this thing. But this belief was being broken
down by Parle.

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Parle Product Limited is a company which introduced their quality biscuits at a

reasonable cost. A cost which is affordable by each and every class people. Even irrespective of
the consumer of urban or that of the rural areas.

Ú
 
 
 

 


 
 
!

In a rural area, there are people with different economic statues. So, the Parle biscuits
are being priced to suit their statues. Rich people buy this, because of good quality. And the
middle class or poor people buy it, because it provides low cost benefit to them along with
quality.

The product policy and strategy is the corner stone of a marketing mix. To the
marketer products are the building blocks of a marketing plan.














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ë"#$?"  
  



#

 


%
 
  
  

Parle Products Limited has launched different brands of biscuits and confectioneries. Not
only in urban areas but also in rural markets as well. They have entered the rural markets with
the same price and quality. Not with all the brands but many of them. Out of which Parle-G is
the most vital one. It has penetrated so much in the market that it has become the house hold
name.

Even it is compared to the meal of a person. That if a person consumes a full packet of
biscuit instead of having lunch or dinner. And this is accepted by the consumers, as the
nutritional value is high enough. This stands as a biggest accomplishment for the company.

A Company needs nothing except the consumer satisfaction. And Parle has successfully
gained that. This is its biggest achievement which creates a SUCCESS STORY.

## : - The core or the basic constituent of the product is the first
component in the total personality of any product. Same is the case with Parle Products. It is
presented as a product of daily consumption, which has a combination of unique features like
Quality and nutritional value as well. For Example, the unique pack of Parle G biscuits, the
rectangular shape of biscuits, the unique smell, the brand name, the price, the positioning as a
product for all age people and even all class people, economically.

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For example, PARLE G


' ) 
4 (  
4  
•>*!" 4 Biscuits •
= *!" 8 Biscuits "£
• *!" 16 Biscuits "6
; *!" 48 Biscuits "•  
= *!" •• 4"" "•= 

These are the various prices of Parle-G Biscuits in urban as well in rural areas. The price
is too low, which is affordable by all irrespective of an
individual¶s economic status.

Rural consumers look for value than its price.

Product strategy and pricing are inter linked with each other
to deliver value at the right price. So, the biscuits of Parle
are of good quality and nutritious.

Also, the rural consumers are more interested in the utility of the product rather than
packaging. So, it¶s better to avoid sophisticated packing. And it will help out in reducing the cost
as well. Simple packing should be adopted. Parle uses polyethylene sheets instead of boxes,
which keeps the quality and quantity of biscuits and confectioneries in good condition.

The price is low enough as it has to penetrate in the market even in the interior of the
country. It makes it affordable by each and every one.


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 Place refers to as the distribution channels adopted by Parle Products to reach even the
interior part of the village. This is a quiet difficult and challenging task. But, Parle has always
seen further to find solutions and grab opportunities.

Determining Channels of Distribution

A marketing channel is the pipeline through which a product flows on its way to its
ultimate consumer.

© º

 

 

[ Channels are tailor- -made to meet the needs of
the company. New products, like hide n seek etc., commonly require different
distribution channels from those needed for products, which are well established and
widely accepted like Parle G, Marie. Etc.
© %  
  

[ Multiple distribution channels sometimes create conflicts.

Distribution will be adversely affected unless these conflicts are resolved. So, the Parle
Company doesn¶t go for multi channel as it is harmful. So, they have only the established
ones.
© 
    
    

: Change in buyer¶s location may dictate a change in

marketing channels. Changes in concentration of buyers may also require a change in
marketing channels.

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ÿ"?&ë$?º #'%
()

PARLE¶ S PRODUCTION
 
UNIT


AGENCIES OR AGENTS
)  ( )  

 WHOLESELLER


RETAILER TEA SHOPS / RAILWAY
 PAANWALLAS STATIONS

This shows that Parle¶s Production units dispatching the biscuits to the well established
agents or agencies. They send it further to the Whole seller.

Now, the wholes seller and the agents send the biscuits to the small retailers.

"0## "3.: -

1. Kiryana Stores
2. General Stores
3. Tea Shops.
4. Railway Stations.
5. Paan wallas.
6. Place where the cultural programmes of village are being organized, like melas, etc.
7. Mobile traders, etc.

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Sales promotion consists of activities that have the purpose of making other sales efforts
(e.g. advertisement) more effective. Some popular sales promotion techniques of Parle are:

a. Special displays
b. Offering Scholarship
c. Running contest
d. Distribution of free samples
e. Offering free introductory services
f. Demonstrating products

In spite of all efforts spent in doing market research, sales forecasting and advertising and
sales promotion, someone ultimately must do some personal selling of products or services.

Selling through Agent Middlemen

© "
 %
( The selling agents perform on the basis of extended contracts and
negotiate all sales of a specialized line of merchandise or the manufacturer¶s entire
output. Usually, the agent has full authority concerning prices and terms and is the sole
seller for the line represented and is not given market area.
© |


* %
: the manufacturer¶s agent or representatives is an independent
business person who sell a part of output of two or more client manufacturers whose
products are related but non-competing, on a continuous or contractual basis in a limited
or exclusive territory. Manufacturers use agents more often than any other type of agent
middlemen. The agents do not take title to the goods, are paid a commission and have
little or no control over prices, credit or other terms of sales.

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%


It is used to inform the customers of the availability of the firm¶s products or service and
to its competitor¶s products. In order to be successful, advertising should be based on the firm¶s
capability to provide quality workmanship and efficient service. It should be closely related to
changes in customer¶s needs and desires.

# 3"!#"" ./:,

© Television commercials.
© Radio commercials.
© Wall Paintings
© Banners.
© Shop Displays.
© Newspapers.
© Magazines.
© Accepting visits of students to the company for giving detailed information
about the Company to them.
© Counter Sale is about to start now.




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(!"*!+*""# :

1. Morality and public service

2. Product
3. Market
4. Profit
5. Customer relations
6. Promotion
7. Credit Policies

©
/ . 3

Policies on morality and public service consist of general statements expressing Parle¶s
desire to be honest in its dealings with public and its customers. They fulfill the demands of the
consumers by supplying adequate quantities to them. And they follow morality by providing
products at good and acceptable quality.

©  

Parle often finds its most effective competitive weapon in the field of product strategy. It
may concentrate on narrow product line, develop a highly specialized product service or provide
a product containing an unusual amount of advantage and satisfaction. Competitor¶s products,
prices and services are constantly examined to determine whether the Company can build a
better product.

Parle has always followed this principle of making the product as the most important thing
rather than spending more on advertising and promotions. They feel that if the product has
quality, than it will be promoted on its own. It will itself act as publicity.

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©
+

Market policies are designed to clarify with geographic areas Parle wishes to serve and other
marketing characteristics appropriate for it. The market policies are framed as per the market
segmentation. As the Parle Biscuits don¶t have the targeted market as such, because it is a
product consumed by all. So, there are market strategies as per the potentiality to cover the
markets

And the biggest achievement for Parle is that, it is available in ³
   


# 
! of the country. It has even reached the interior most part of the rural areas. This has
been possible only by the foolproof distribution system.

© 

Profit policies may require that sales goals be specified that will provide Parle a sufficiently
large sales volume or profit as percentage of sales may be specified which calls for low
marketing costs.

As the biscuits of Parle are well known, they don¶t have to spend much on advertisements.
So, the profit margins are increasing substantially. Initially, they followed penetration policy of
pricing. And it worked. Still, the price is too low to be affordable by the common man.

But, now they are planning to increase the prices of the biscuits, to increase their profits even
more. This pricing policy refers to as Skimming the Cream.

© "!"

Parle¶s relationship with its customers may be indicated with a question

Should the firm have a policy that customer is always right? 

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Parle, also like other company¶s feel that consumers are the most important aspect. The
consumers are always right because they are the sources through which a company comes to
know about its performance. Same is the case with Parle.

They follow the feedback by the consumers and do as they want. They consider the
consumers views as of prime importance. Because, if the consumers are satisfied no one can stop
the growth of Parle.

© !

The pattern of Parle¶s advertisement may reveal the promotion policies. It always follows a
policy of tasteful advertising at all times. Sales promotion may be restricted to trade shows or to
industrial publications or to some other advertising media.

There are different promotion techniques like free samples, scholarships, etc.

©  "

In order to stimulate sales, customer should be provided with credit. However, an appropriate
credit policy is essential to be successful in granting credit. This is a useful policy as it attracts
the consumers and the retailers. And also increases their confidence in the brand. The credit can
be given by the company to the whole sellers or retailers. And in turn they will give credit to
consumers

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cc c

c



 

Marketing management refers to distribution of the firm¶s product or service to the

customers in order to satisfy their needs and to accomplish the firm¶s objectives.

Marketing includes developing the product, pricing, distribution, advertisement, and

merchandising, doing personal selling, promoting and directing sales and service to customers.

Marketing is an essential function because unless the firm has a market, or can develop a
market, for its product or service, other functions of staffing, producing and financing are futile.

3*!+* *":,

a. Determine what the customer¶s needs are and how those needs can be satisfied.
b. Select the market that would be served.
c. Decide what advantage that will give a competitive edge over other firms.

© Meeting customer¶s needs

© Learning customer¶s needs
© Conscious about the firm¶s image
© Looking for danger signals

These are the questions which arise while introducing a new product, such as HIDE n SEEK.

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+ *!

A market should be defined in terms of various characteristics such as economic status,

age, education, occupation and location. The best opportunity is to identify a market segment
that is not well served by other firms. To determine the firm¶s market segment, the fundamental
aspects are summarized:

a. What is the place of the firm in the industry and how it can compete with others?
b. Whether the firm is known for its quality or price.
c. Image of the firm among the customers.

Ú% 

 


   " 
 
    

  
  
             # 
 


 
 
  

 !




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I had visited a production unit of Parle Biscuits, which is situated in Ambernath, near Thane. The
unit¶s name is Bunty Food Products.

There I got an opportunity to talk to one of the Managing Directors of that unit
Ú

  
 .
He proved to be very co-operative and resourceful
He gave me adequate information, which is required in the project.

Below is the information gained through the visit: -

© '## "$.""%H

Parle-G, Krackjack, Monaco, Milk-Shakti, Hide n Seek, Fun Center, Cheeselings, Jeffs, Marie
Choice, Parle Magix, Monaco Bites etc.

© '## ".*!+ #"H

All the products are marketed in rural areas but the vital products are Parle-G, Marie Choice n
Monaco.

© '##".*3 !+#" "H
According to the production unit in Vadgaon {Shiv Shakti Parle Products Ltd.} rural markets
covered are Vadgaon, Kamshed, Talegaon, Kanhe and Chakan etc.

© '##
+*? 3"* *""H
All 7 p¶s of marketing are considered in order to penetrate in the market and to be the world¶s
leader, to gain customer confidence through TQM policy in production units. For advertising
free sampling of the products is done along with picturization of its benefits to the consumers.

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© '##".#"H

The distribution channel of the unit is through established agencies who supply products to the
various markets in the nearby villages.

© ë 
 

 
 




 
   

 
  
      

   
 
      
     

        


  

© '##*"
+"H
Initially, Parle had started with a very low price. Just to penetrate into the markets. It has
prevailed as yet. But now Parle people are trying to increase their profits by raising prices of the
products. Just they are deciding to change the pricing policy to SKIMMING THE CREAM.

© /"+**&

+"H
There is no specific or low grade packing for rural areas as compared to the urban areas. The
packaging remains same as it is all over.

© 0 /+!H
Parle faces competition by just keeping up the quality and prices as per the pre defined standards.
There are no levels in it. It has stable marketing strategies.

© .!"( &/H

There used to be some problem due to imitation brands, like Payal G, Parole G, Parale G,
Parel G, etc.
But now people identify the brand very well. They recognize by the sweet girls¶ image on the
pack and the PARLE on it written in Red. It acts as the logo.
So, now this drench is cleared off. And the question about different companies competition, than
they are also here to business. And the best may win.

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© '##"#"!"0 "# "H 
The consumers are the ones who decide upon one¶s fate in business. As it¶s a product of daily
use, it is accepted by everyone. And about its good taste and nutritional content makes it
outstanding. It is today an established brand which is known to everyone.

© 0"!+* !.

+*H
Rural marketing is also a type of marketing, but the only difference is that its more challenging.
People are same everywhere. Only their perceptions, attitudes, lifestyles differ. Rest all is same.
Only we have to identify the ways to convince them.

© '##!+*"*"H

1. Analyze present and future market situation

2. Shape the product to suit the market
3. Evaluate the company¶s resources
4. Keep informed about the competitors

Finally, he gave the knowledge about his own

production unit. This included the production process and the factory site. Through this I got to
know about the Techniques of TQM & Quality Management being followed in the process. And
the techniques are followed in all the units of Parle.

This shows that Parle has satisfied their employees as well as the customers. Customers
come to know about the techniques of TQM and Quality Management being followed. And their
confidence in the product increases even more as the biscuits of Parle which they are consuming
are of Quality and nutritional value.




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,)"#0  ."""

TIMES NEWS NETWORK [MONDAY, SEPTEMBER 15, 2003 12:26:36 AM]

NEW DELHI: In 1929 when Indians were munching crispy imported biscuits shipped in by the
British, an Indian set up a small factory in the suburbs of Mumbai to make toffees. A decade
later, he started making biscuits without giving a damn to the imported biscuits that were freely
available. And six decades later, one of the factory¶s products has emerged as the world¶s single
largest brand in any country.

With annual sales volume of 179.9m kg, Prakash Chauhan¶s Parle-G is the world beater
in biscuits, followed by Italy¶s Mulino Bianco with 110.3m kg and America¶s Control Brand at
108.9m kg.

Industry sources said Parle-G sells the most because it is the cheapest biscuit in the
branded category. Most Parle offerings, unlike Britannia, are mass brands in the low and mid-
range price segments. As it has been around for over 60 years, it has a loyal consumer base. And
for most, it is a food supplement rather than an evening snack. ³In mid-income households, kids
averse to dal chawal are often given glucose biscuits to make up for the cereals,´ said an industry
source. But the industry says that even though Parle-G is the highest selling brand, the per capita
consumption of biscuits in India is still very low. On an average Indians eat 0.48 kg every year,
while Americans eat 4 kg.

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But surprisingly, Indians eat over three times more branded biscuits (490m kg) than the
Chinese (180.5m kg). ³Given that both India and China have conventional food habits where
traditional snack items like idli, dosa, dhokla, samosa have a fair share, Indian consumers¶
appetite for biscuits is enormous,´ says Anmol Sherpa, global services co-coordinator for AC
Neilsen India.

According to him, Americans depend on biscuits as they have very few ready-to-eat food
items for snacks. They spend $6,897m on 1134.6m kg of biscuits every year, outpacing both
India (490m kg valued at $583m) and China (180.5m kg valued at $406.3m).

Besides heritage and price points, distribution is crucial to the success of any consumer
goods brand. Even though Kellog¶s launched Chocos at Rs 5/pack, its distribution strategy was
not up to the mark. Parle has 1,500 wholesalers catering to 4,25,000 retail outlets.

Chocos were later taken off the shelves. Biscuits require a mass distribution network and
Kellogs had limited itself to the up market outlets with its premium-priced cereals. Parle over the
years has built a robust distribution network. For the fast moving consumer goods industry, the
packaged biscuit basket has emerged as a winner with all other product lines like soaps,
detergents, hair oil, packaged tea biting the dust. The quick, tea-time snack has zoomed into a Rs
2,500 crore industry clocking 3-4% growth annually.



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4"#*!+"

Namrata Singh

Mumbai, Feb 10: Britannia Industries Ltd has chalked out ambitious plans to make
`Tiger' the number one brand in the glucose segment of the Rs 2,000-crore branded biscuit
market in India by the year 2001, says company managing director and CEO Sunil Alagh.

Tiger, a mass market brand in the glucose category, has grown to become an over Rs
150-crore brand for Britannia in terms of sales. The current leader in the glucose biscuits
category is Parle Foods' `ParleG' brand with a market share of 55 per cent. Tiger has already
garnered a market share of 20-25 per cent in two years, according to industry estimates.

According to Alagh, a major chunk in market share of Tiger will come from the rural
market where the company is making a substantial investment in increasing the distribution
network. ``Tiger will gain market share to become a leader in two years on the back of certain
rural initiatives being undertaken,'' he said.

Britannia Industries is already on the mission to double its distribution network with a
focus on the rural market. The distribution will increase to eight lakh retail outlets, with the rural
network doubling during this time.

However, Britannia does not intend to ride on the pricing plan to beat the competition.
``We will not cut prices to increase sales. We will rely on the quality factor of our products to
achieve that,'' said Alagh.. Both Tiger and ParleG are priced at Rs 4 for a 100gm pack. Tiger was
launched in July 1997. The brand was extended to Tiger Oro priced at Rs 9. The company has
also introduced value-added variants of the brand priced at a slight price premium.

Britannia leads in the branded biscuits market with a share of around 38 per cent. Parle
has a market share of 30 per cent in the branded market. The glucose category contributes 35 per
cent to the overall biscuit market.

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In the glucose category, however, Parle leads ahead of Britannia. Britannia's strategy with
the launch of Tiger was to target this huge segment which has major unorganized sector
participation. Being a leader in the branded biscuits market, analysts say, that Britannia could not
have ignored the glucose segment.

With a maximum contribution to its sales coming from biscuits, the company has reason
to give priority to this category, say analysts. Biscuits contribute 72 per cent to Britannia's
turnover of Rs 824 crore.

In the overall Rs 4,000-crore biscuits market (including the unorganized market),

Britannia's share stands at around 14 per cent with that of Parle's at around 10 per cent.

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"# !+

 
KALA VIJAYRAGHAVAN

TIMES NEWS NETWORK [SUNDAY, SEPTEMBER 28, 2003 10:23:19 PM ]

At a time when most branded Atta majors are facing survival issues, mass-market biscuits
market Parle Products, has decided to enter the Atta market.

The 60-year old company has launched the Parle G brand of chakki fresh Atta in certain
markets in India . This would mean further competition for industry majors like HLL, ITC,
Pillsbury and others, given Parle G¶s brand equity in the foods market and its huge distribution
network. The brand is priced at more or less the same level as the existing market rates. A 2 kg
pack of Parle G Atta is being offered at Rs 35.50 while a Rs 5 kg is being offered at around Rs
90.

Parle officials were unavailable for comment. Analysts feel that that it is logical for Parle
Products to offer a product which is the core of their backward integration. ³They have little to
worry about as far as distribution strength or creating a brand presence is concerned. It is
certainly not going to be easy for the other existing FMCG majors in the foods business´ said an
analyst.

The recent entry of players like ITC and ConAgra, besides the existing ones like HLL,
Pillsbury and Cargill have intensified competition in a market where margins are wafer-thin and
the only way to profits are volumes.

The Indian Atta market is estimated at around 45 million tones, of which branded Atta is
only 3 lakh tones, or less than 1%. On an average, a 5 kg pack of branded Atta is sold in the
range of around Rs 87-Rs 90.

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³The price fluctuates widely depending on which scheme is being offered by the
company. If a competitor drops prices, all the brands follow suit.
There¶s not much choice for these companies since stockiest refuse to push the
uncompetitive brand,´ sources said. Regular purchasers of the branded attas are institutional
buyers like hotels, airlines or food caterers.

However, there are local suppliers in all majors markets like Mumbai, Delhi etc who have
a loyal customer¶s base. Currently, Parle Products has offerings in the mass and mid segment of
the biscuits market. Parle G biscuits, market sources said, are consumed more as food
supplements rather than a snack.


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º  º 

The detailed study about the Parle products mainly PARLE G, gives out a Success Story
in rural areas. This shows that products even at low prices can earn substantially considerable
profits. The results of the survey also indicate the importance of Parle G in comparison with its
competitors, local and imitation brands. The views of the consumers on the Parle G biscuits also
put light on its vitality.

To sum up in general, the Indian rural market has grown in recent years in size, range and
sophistication. Economic reforms in India have brought about major changes in the whole
market environment.

Successful rural marketing calls for a review of the nature and profile of rural consumers,
designing the rural products to appeal to them, and adopting suitable media as well as
appropriate strategies for communication and distribution.

Economic reforms and changing economic conditions have clearly pointed out that the
rural market is the future market of India. To become successful and contending players calls in
for a review of rural marketing environment, rural consumer, media and strategies to be adopted.
As they say«,


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#

 Rural Marketing: Romeo Mascarenhas.
 Marketing Management: S.A.Shrelekar.
 Marketing Management: Philip Kotler.


'9
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 The Economic Times
 Hindustan Times
 Mid Day
 The Financial Express
 Times News Network


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 WWW.Agencyfags.Com
 WWW.Oligvy.Com
 WWW.Adagency.Com


 

 WWW.Wikipedia.Com
 WWW.Google.Com
 WWW.Yahoo.Com

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