...Marketing Channel Strategies in Rural Emerging Markets Unlocking Business Potential By Benjamin Neuwirth Benjamin Neuwirth, Kellogg School of Management, bneuwirth2012@kellogg.northwestern.edu 1 EXECUTIVE SUMMARY In his landmark book “The Fortune at the Bottom of the Pyramid,” C.K. Prahalad describes the profits that can be earned by selling products to “Bottom of the Pyramid” customers. While there is truth to this, companies face unique challenges when operating in the rural regions of emerging markets where many of these customers live. For example, the consumer population is dispersed over a wide geographic area, transportation infrastructure is often poorly developed, and many consumers have sporadic and extremely low incomes. This paper examines these challenges from a marketing channel perspective. The fundamental question is: How can companies entering into rural emerging markets design a marketing channel strategy that meets the needs of customers and allows for the long-term profitable success of the business? I begin answering this question by examining common challenges that companies operating in this environment face. Each challenge is accompanied by examples of companies that have solved the problem in a unique way. Then, I develop a generalized framework for designing marketing channels in rural emerging markets. Finally, I apply the framework to d.light Design, a company that manufactures and sells solar lanterns in India and Africa and that I worked...
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...M World Economy anagement’s discussion & analysis (Forming part of the Directors’ Report for the year ended 31st March 2010) INDUSTRY STRUCTURE & DEVELOPMENTS During the course of the year, international economic conditions exhibited a marked improvement with the global economy getting into an early recovery mode. The vital statistics of the engine of the world economy entered the positive territory. After June 2009, world trade flows entered into an expansionary mode after declining for several months and GDP growth turned positive. A corrective policy action on both fiscal & monetary fronts has been at the very core of the recovery witnessed. However, the recovery process has not been uniform and has varied in speed & strength across countries and regions, with emerging economies leading the way. While the recovery has been early, it is still nascent and fragile and the key risks and destabilising factors continue to exist. This calls for further reforms in the financial markets and controlling fiscal deficits in the light of rising commodity prices & high unemployment rates. The recent debt crisis in Greece has only highlighted the fragility of the recovery process and raised questions on the credibility of the economic recovery and the stability of financial markets. Indian Economy Indian economy has been amongst the first economies to emerge out of the grips of recessionary forces in a incredible recovery led by the industrial and services sectors. The acceleration...
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...The company has tied up with oil marketing companies and the railways catering – IRCTC – and the Defence Department canteens to reach a wide market, he said. Kolkata-based Duncans Tea Ltd, part of the Rs 2,000-crore Duncan-Goenka Group, We are in talks with the postal department for distributing our ranges through post offices. The discussions are at an advanced stage, He said the aim of talking to the postal department was a part of the company's plans to increase its distribution network by 25 per cent over the next one year. Besides, its retail outlets, Duncans sells its tea products through HPCL and BPCL outlets. It also has an agreement with the Railways, which uses Duncan tea for its passengers. Duncans has currently around four per cent share (2.74 lakh tonne) of the total Indian domestic tea market. Tea market growing at growing at 8 per cent per annum. The company in its efforts to increase rural reach is in talks with the India Postal Department. “There is nothing that beats the postal network’s rural penetration. We are still in talks but hope to start in Maharashtra. So you could soon hear a ‘daakiya chai laya!’ call. Rural urban ratio in Duncans’ turnover is roughly at 50-50. The company has also tied up with the Indian Railways Catering and Tourism Corporation, for the wide visibility that such an association offers to its brands. It has also finalised tie-ups with Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd. Duncans Tea (DTL)...
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... SUNNY ARYA RITIKA SABARWAL SWARAJ S. SIDHU YASHASVI YADAV | MARUTI SUZUKI INDIA LIMITED (MSIL). COMPANY AT A GLANCE HISTORY * Year of Establishment – 1981 * MUL was established by Govt. to meet the growing demand of personal mode of transport caused by the lack of efficient public transport system. * MUL launched Maruti -800 as its 1st car in Dec,1983 for Rs. 47,500 MERGER BETWEEN SUZUKI MOTORS CORP. & MARUTI UDYOG LTD. * Maruti Suzuki India Ltd. Is subsidiary of Suzuki Motors , Japan * MSIL has been the leader of Indian car market for over 25 years now. * The company has two manufacturing units located at Gurgaon and Manesar. * Number of employees >8500 * The company offers a wide range of cars across different segments. In all there are 15 brands with 150 variants. MAJOR STAKEHOLDERS IN MSIL * Institutional Investors include: Mutual’s funds & UTI, banks & financial institutes, insurance companies, FIIs. * Others include: Private corporate bodies...
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...ACKNOWLEDGEMENT We take this opportunity to thank our project Professor respected Mrs.Shubhangi Ma’am for her valuable guidance. We thank you for giving us such an interesting topic for our project work, which will mould our future & career building process. We take this opportunity to specially convey our heartfelt gratitude & thanks to Ma’am, who guided us in the project with valuable inputs, without which our project would not have been effectively completed. A PROJECT REPORT ON RURAL MARKETING (SOLAR COOKER) USHA PRAVIN GANDHI COLLEGE OF MANAGEMENT Submitted By: Kanika Agarwal (02) Arva Boxwala (10) Sayli Deshpande (21) Tanmay Diwadkar (23) Sonam Ladha (45) T.Y.B.M.S. (SEM V) COMPANY PROFILE Company Profile : Anmol Electronics Pvt. Limited Major Industry : Electrical Sub Industry : Appliances & Consumer Products Country : INDIA Anmol electronics is a pioneer name as a manufacturer of electronic products when it comes to home entertainment. It is one of the largest consumer products company in the country having varied interests from technology based products to consumer care products. The group’s principal activity is to manufacture and market Consumer Electronics and home applianceswhich comprises of white goods and small domestic appliances. The white goods comprises of Washing Machines, Refrigerators, Air Conditioners etc. and Small Domestic Appliances comprises of...
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...Budget 16-17 HIGHLIGHTS OF UNION BUDGET 2016-17 Growth of Economy accelerated to 7.6% in 2015-16. India hailed as a ‘bright spot’ amidst a slowing global economy by IMF. Robust growth achieved despite very unfavourable global conditions and two consecutive years shortfall in monsoon by 13% Foreign exchange reserves touched highest ever level of about 350 billion US dollars. Despite increased devolution to States by 55% as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in 2015-16 – in contrast to earlier years. ROADMAP & PRIORITIES 'Transform India' to have a significant impact on economy and lives of people. Government to focus on – ensuring macro-economic stability and prudent fiscal management. boosting on domestic demand continuing with the pace of economic reforms and policy initiatives to change the lives of our people for the better. Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector employment generation and recapitalisation of the banks. Focus on Vulnerable sections through: 1. Pradhan Mantri Fasal Bima Yojana 2. New health insurance scheme to protect against hospitalisation expenditure 3. facility of cooking gas connection for BPL families FISCAL DISCIPLINE Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%. Revenue Deficit target from 2.8% to 2.5% in RE 2015-16 Total expenditure projected...
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...1 PETROL PUMPS (RETAIL OUTLETS) • What are Retail Outlets / Petrol Pumps ? • What is available at Retail Outlets ? • What are Petrol / Diesel / CNG / Branded Fuels ? • What are the mandatory facilities / services available at Retail Outlets ? • How Quality / Quantity are maintained at Retail Outlets ? • How to lodge a complaint ? The answers to the above queries are given below : 1. What is Petrol Pump ? • The most common point of contact of customers with Oil Industry is the Petrol Pump. In Oil Industry parlance, Petrol Pumps are referred to as Retail Outlets (ROs). • As per the existing Government policy, Petrol Pumps can be set up by Public Sector Oil Companies as well as Private Sector Oil Companies dealing in storage and distribution of petroleum products as per guidelines. Presently, the Oil Companies engaged in retail business of automotive fuels are IOC, HPC, BPC, NRL, MRPL, ONGC, RIL, Essar and Shell. 2. Products Marketed at Retail Outlets : • Petrol, in technical language is called “Motor Spirit” (MS). It is mainly used in passenger vehicles such as 2 / 3 wheelers and cars. At present, HPCL markets two types of Petrol across the country, i.e. normal Petrol and branded Petrol. 9 ú Normal Petrol: Normally used as a fuel for spark ignition internal combustion engines such as passenger cars, two wheelers, three wheelers, etc. ú Branded Petrol: This is preferred...
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...MKS0119 Nokia’s Rural Marketing Strategies in India: Reaching Out to the Bottom of Pyramid “The rural consumer is discerning and the rural market is vibrant. At the current rate of growth, it will soon outstrip the urban market. The rural market is not sleeping any longer. We are.”1 – Adi Godrej, Chairman, Godrej Group of Industries To expand its presence, Nokia is planning to launch a new service ‘Nokia Life Tools’ that would provide information on market price, weather, etc., to information-starved farmers. While the idea is not new, the challenge in front of Nokia is to convert the 70 million rural mobile users in using its service, amidst competition from local input dealers and ITC e-Choupal that offers similar services. Rural Marketing in India: Demographics and Economics Out of India’s population of over 1 billion, 70% lives in rural India.2 India consists of 627,000 villages3 with 13% of them having a population of above 2000.4 For the people of rural India, agriculture is the main occupation. Agriculture contributes 17.8% to India’s GDP with about 60% of the workforce employed in the agriculture sector in 2008.5 Since independence, rural India went through a socio-economic transformation due to the various initiatives taken by the ministry of rural development.6 However, till 1990s, the gap between rural and urban development remained wide. With the implementation of minimum support price (the rate at which the government buys the farm produce to prevent farmers from...
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...gloomy landscape, India stands out as a haven of stability and an outpost of opportunity. Its macro-economy is stable, founded on the government’s commitment to fiscal consolidation and low inflation. Its economic growth is amongst the highest in the world, helped by a reorientation of government spending toward needed public infrastructure. These achievements are remarkable not least because they have been accomplished in the face of global headwinds and a second successive season of poor rainfall. The task now is to sustain them in an even more difficult global environment. This will require careful economic management. As regards monetary and liquidity policy, the benign outlook for inflation, widening output gaps, the uncertainty about the growth outlook and the over-indebtedness of the corporate sector all imply that there is room for easing. Fiscal consolidation continues to be vital, and will need to maintain credibility and reduce debt, in an uncertain global environment, while sustaining growth. On the government’s “reformto-transform” agenda, a series of measures, each incremental but collectively meaningful have been enacted. There have also been some disappointments— especially the Goods and Services Tax—which need to be retrieved going forward. Accelerated structural reforms at the Centre, the dynamism of competitive federalism, and good economics being good politics could all combine to maintain the fundamental promise that is India. For now, but not...
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...goods, services, capital, finance and people. Cross border integration can have several dimensions – cultural, social, political and economic. In fact, cultural and social integration even more than economic integration. The focus of this paper is to study the impact of globalization on economic, social and cultural fabric of India. Globalization has made countries to realize that nations can no longer be cocooned in their own cultural or economic nests but invariably be part of the larger picture which takes into account the competencies, interests and the dependencies of economies world -wide. The zeal of globalization has even forced Governments to be tuned to the merits of a Global economy. In Economics we have views on pro-globalization by Jagdish Bhagwati etc. who build on the economic notion that free trade helps everybody and lift the poor out of poverty, while we have the anti-globalization views by the likes of Vandana Shiva, Arundhati Roy, etc.,who see globalization as a way for multinational corporationss and multilateral institutions (World Bank, IMF) to change the rules all over the world to ensure better markets for the rich countries. India opened up its economy in the early nineties following a major crisis of foreign exchange crunch that dragged the economy close to defaulting on loans. The response was a slew of domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organizations. The new...
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...tap into our new language of hope. For this to be mirrored in our political institutions it requires us to imagine an India that rests not on the struggles of our past, but on the promise and challenges of the future. It requires us to shape systems and policies that give people the ability to travel in search of work, to educate their children and to tap into economic growth.1 — Nandan Nilekani Nandan Nilekani, chairman of the Unique Identification Authority of India (UIDAI), sipped his coffee while thinking about how to reply to the journalist badgering him and his core team about UIDAI’s challenges. “Will you actually be able to deliver ‘unique identification’ to every Indian resident?” asked the journalist. It was August 30, 2012, three years after the government of India (GoI) had approved the UIDAI project plan. In that time, UIDAI had chalked up some victories. 190 million people had been enrolled within two years of the initial rollout in September 2010. The Australian and Indonesian governments were studying the UIDAI system to adapt it for themselves. Yet some were skeptical that UIDAI would meet its interim goal to cover 600 million of India’s 1.2 billion residents by 2014, and whether the time, cost, and effort were justified. Nilekani responded, “175 million Indians have received a letter in the post giving them a 12-digit number.” India had the largest number of post offices in the world, but for many residents it was the first time they had received...
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...Rishi Kad (211112) INTRODUCTION Havells India Limited is a $1.3 Billion leading Fast Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global footprint. Havells enjo ys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Electric Water Heaters,Power Capacitors, CFL Lamps, Luminaires for Domestic, Commercial and industrialApplications. Havells India Ltd. was founded in 1958 by Qimat Rai and since then it is powering the smiles of people like none other electrical brand in the country. Its global network constitutes of 7000 professionals across 91 branches & representative offices in over 50 countries. Its fourteen state-ofthe-art manufacturing plants in India located at Haridwar, Baddi, Noida, Sahibabad, Faridabad, Alwar, Neemrana and seven world class manufacturing plants located in Europe, Latin America & Africa are manufacturing globally acclaimed products, synonymous with excellence and precision in theelectricalindustry. Today, Havells owns some of the most prestigious global brands like Havells, Crabtree, Sylvania, Concord, Luminance and Standard.Today, Havells alongwith its brands, have earned the distinction of being the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. Havells offers same quality products...
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...Indian Life Insurance Industry with special reference to LIC of India – Prospects and Challenges Presentation of Pilot Survey To Research Development Committee Kadi Sarva Vishva Vidyalaya Gandhinagar J D Chandrapal 10E0244 - Management Scholar enrolled in PhD program Kadi Sarva Vishva Vidyalaya - Gandhinagar Prof. Dr. A.C. Brahmbhatt – (Guide) Institute of Management - Nirma University, Ahmedabad 382 481, India Mailing Address 7, Krishna flats Opp. Lalbhai Apartment Kiranpark, Nava Vadaj Ahmedabad -380013 Contact Info 9825070933 jdchandrapal@yahoo.com Key words: Life insurance, liberalization, globalization, Competition, Economic Reforms, LIC of India Changing Face of LIC of India in Response to Liberalization Abstract The purpose of this paper is to facilitate the attempts of mapping the change in LIC of India because of liberalization of Indian insurance sector. The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. Its transition from an open competitive sector to nationalization and then back to a liberalized market characterizes this phenomenon. Economic reforms have revolutionized insurance sector. The economic reforms started, it leads to liberalization. Liberalization has sparkled a flame of globalization and privatization (LPG). The economic reforms i.e. Liberalization has posed some challenges to LIC of India. In the post liberalization period life insurance business felt...
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...MARKETING MANAGEMENT II REPORT ON “MARKETING CHALLENGES OF INDIA” Submitted to Prof.-S. Anant Ram Submitted bySayona Maitra (2012287) Shafique Gajdhar(2012289) Satakshi Rani(2012276) Shubham Saxena(2012303) Suneet Shome(2012315) Sunil Gupta(2012316) Word Count 6909 Page Count 46 Group no. 8 1 Contents The marketing challenges in India can be 1. Cultural diversity: 2. Differences in purchasing power of consumers in India 3. The layer of Westernization 4. Considering the psychographics and cultural nuances of consumer segments: 5. Retailing complexities6. Indian consumers reflect a range of behaviors: 7. Consistent brand association in midst of price war 8. Penetration levels of branded offerings among consumers are extremely low (5) (6) (7) (8) (9) (10) (11) (12) 9. Symbolism is reflected across product categories (symbolizing status or emotions) can be found in several product categories in today's context. It is a challenge for marketers to achieve symbolism for their products in India. (14) 10. The challenge for marketers is to ensure a judicious mix of traditional values and contemporary thinking for such segments. (16) 11. The presence of unorganized sector in several categories has created challenges to marketers at the lower price ranges. (18) 12. illegal duplicates prevalent mainly in Rural and Semi rural markets pose a threat to reputation of the company. 13. High degree of price sensitivity is a strong cultural trait in the Indian mass market...
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...RURAL DEVELOPMENT MARKETING & DIRECT MARKETING MODULE NOTES Code | 50121621 A | Course | Rural and Development Marketing | Topic | Division | | | What are rural markets? Is there a uniform identity? Global trends impacting rural behavior (only India)- WTO, technology and social behavior | Nikita Naina Kumar | | | India's rural communities- disparities, segmentation and social factors | Trishla Jhaveri | | | Media penetration, impact and costs in rural India | Shayan Roy | | | Psychographics, demographics and societal impact on the rural consumer | | | | Profiling the rural male consumer | | | | Profiling the rural female consumer | | | | The rural business model- distribution, pricing, packaging, promotion- in rural markets | | | | Branding and brand management in rural India | | What is Rural Marketing? Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas. Rural markets have emerged as an important growth engine in the Indian consumption story. With about 70 per cent of the Indian population residing in the hinterlands, rural markets seem to be a significant opportunity for business conglomerates. Rural areas of the country or countryside are areas that are not urbanized...
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