Page 159 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 1991-1994: Wheel faced Competition with Local Player. By establishing Rural Distribution Center
the product built strong customer base in Maharashtra and MP.
Growth Stage: Having established its product in the market from 1995 onwards the company
adopted various strategies to improve the turnover and profitability and till 1997 it was able to
sail without much problem and growth was visible. During the years 1998-2000 the company
was able to face the challenges related to infrastructure and distribution network so as to maintain
its growth flow.

1995-1997: 34,000 distribution outlets were opened in 34,000 villages and achieved 25% of HUL’s
total sales in volume. Established sales channels through thousands of small storefronts and
achieved better return than higher-end cleaning products. Strong hold at Karnataka, Bihar, MP,
Maharashtra, Part of Gujarat.
1998-2000: Project Streamline Challenges of Infrastructures and Distribution network were
suitably handled and achieved 37% of HUL’s total market in volume.
Decline Stage: The product phased its decline in 2001 and the company was able to face the stage
by relaunching the product with modification and upgradation and was able to feel the signs of
revival by the beginning of 2005.
2001 ‘Power’ brand strategy: HUL’s net sales growth rate fell and the product was relaunched -
‘Best clean with less effort’.
2002-2003: Ranked at number 21, the product was the largest brand in HLL.
2004: Wheel Active, has been introduced to upgrade consumers to a higher order product.

Growth Stage: The product indicated signs of growth from 2005 onwards by reading the pulse
of the market in a better way and adopting suitable and varied marketing strategies in time.
2005-2007: Wheel continued to grow strongly with turnover exceeding 8 lakh tones.

2008: Achieved sales value over 2000 cr
2009: MRP of Wheel Active Powder brought down from 75 to 67 on a 2 kg pack.
10 pack of Wheel Active has been raised to 275 gm from 250 gm.
275 gm and 560 gm Wheel Green detergent powder to 300 gm and 600 gm.

8.9 Product Branding in Rural Markets

A brand is a name that distinguishes a product from others. It has its own identity in the
market with its symbol and tagline. When we talk about brands in rural markets some of the
names which come to our mind are Rajdoot Bikes, Ghari Detergent, Dolly TV and chic shampoo
etc. Findings indicated that good quality, value for money and sense of identity with brand
were likely to act as key determinants of a FMCG brand in rural India. Better finish and good
looks, recommendations from retailers were found be key determinants of a consumer durable
brand in rural India. Lets throw some light on agro inputs also like pesticides, fertilizers,
manure, seeds, tractors, harvesters, pumps and threshers etc. In this regards marketers are
following market specialization strategy. HYV seeds are also becoming popular among the
farmers.
It is a known fact in rural areas that price plays an important role in rural markets for purchasing
the products. Now the New Era of marketing is changing the scenario of the Rural India. With
Cola companies penetrating these markets with low prices (chota coke) the rural consumer
has now realized the benefits of branding. However, no data is available to establish a
relationship of the extent of branding and the consumer acceptance with reference to research

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