Page 228 - DMGT509_RURAL MARKETING

Unit 11: Promotion Strategies for Rural Market

14. ....................... Relations Manager’s job is to have a firm grip of the media available for Notes
transmitting the message to the public:
(a) private (b) public

(c) customer (d) media



Case Study Hindustan Unilever Ltd.

UL, the MNC Company into FMCG products was one of the first to realise the
importance of the huge rural market in India and given below is their story of
Hrural marketing:
“Consider the market; out of five lakh villages in India only one lakh have been tapped so
far.” Irfan Khan, Corporate Communications Manager, Hindustan Lever Ltd., in 2001.
Teaching people how to wash utensils!
In June 2002, the employees of Hindustan Unilever Ltd. (HUL), a subsidiary of the fast
moving consumer goods (FMCG) major Unilever and India’s leading FMCG company
literally took to streets. The company was undertaking a promotional exercise in the rural
areas of three states namely Madhya Pradesh (MP), Bihar and Orissa for its utensil-cleansing
bar, ‘Vim.’ A part of HUL’s ongoing television (TV) campaign, ‘Vim Ghar Ghar Challenge,’
the promotion drive involved company officials to visit rural towns and demonstrate
how vessels are cleaned with Vim.
Commenting on this, Sanjay Bhel, HUL’s Marketing Manager, said, “For the purpose, we
are educating the rural masses on the on-going ‘Vim Ghar Ghar Challenge’ TV commercial
by conducting live demonstrations about vessel cleaning. Our aim is to tap the growth
rate of the 4 billion scouring bar market; although it has been growing at a rate of 15%
per annum, since last year it has been decelerating.”

This exercise was just one of the numerous marketing drives undertaken by HUL over the
decades to increase its penetration in the Indian rural markets. The company had, in fact,
earned the distinction of becoming one of the few Indian companies that had tapped the
country’s vast rural population so extensively.

It was therefore not mere coincidence that around 50% of its turnover came from rural
markets. With the penetration of their products reaching saturation levels in many urban
markets, FMCG companies had to turn towards rural areas in order to sustain revenue
growth and profitability. Since the disposable income in the hands of rural people had
been increasing in the late 1990s and the early 21st century, it made sense for companies to
focus their energies on this segment.
Industry observers also felt that HUL was at an advantage compared to most of
its competitors, thanks to its consistent, pioneering efforts towards establishing
well-entrenched distribution and marketing networks to reach the vast Indian rural
masses.
Question
Discuss the various initiatives taken by HUL. How can they plan to retain their market
lead in rural areas?

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