Page 105 - DMGT509_RURAL MARKETING

Rural Marketing

Notes Background Note
HLL’s history could be traced back to 1885 when the Lever Brothers set up “William
Hesketh Lever”, in England. In 1888, the company entered India by exporting ‘Sunlight’,
its laundry soap. In 1895, the Lifebuoy soap was launched in India followed by ‘Pears’ in
1902, ‘Lux’ flakes in 1905 and ‘Vim’ scouring powder in 1913. In 1930, the company merged
with ‘Margarine Unie’ (a Netherlands based company which exported vanaspati to India),
to form Unilever. In 1931, Unilever set up it first Indian subsidiary, the Hindustan Vanaspati
Manufacturing Company for production of vanaspati…
Reaching Out the Rural Consumer
Prior to the late 1990s, HLL like any other company had used traditional modes of reaching
out to the rural consumer – wholesalers and retailers…
Product Development
HLL’s experience with rural consumers dated back to the mid-1980s, when Nirma had
been a serious threat to HLL’s detergent business. Nirma’s success demonstrated that rural
India did have the money and willingness to buy packaged goods…

Communication
Mass media reached only 57% of the rural population. HLL realized that it had to use
unconventional media to enhance awareness. In late 1999, HLL engaged Ogilvy Outreach,
to take care of its rural communication campaign…
Looking Ahead
India’s rural population comprising 12% of the world’s population presented a
huge, untapped market. HLL had signaled its commitment to the rural market in various
ways.

Management trainees had to begin their career with the company by spending a month or
two in a rural village. Senior managers continued to emphasize the importance of rural
markets.
Various innovations in the marketing mix had been introduced, with the requirements of
the rural markets in mind…!

Question
Analyse the case and discuss the case facts.

5.11 Summary

 The popular image of a rural consumer is of one who has limited educational background,
is exposed to limited products and brands.
 To understand rural buying behaviour, a marketer must first understand (a) the factors
that influence buying behaviour and (b) the variations in behaviour.

 A villager’s needs are different from those of an urban consumer.
 Variations in economic development and in consumer willingness to accept innovations
are evident in rural markets.

 The rural consumer is influenced by the environment and also by his or her wants and
perceptions.

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