Professional Documents
Culture Documents
Rural Marketing Main Project
Rural Marketing Main Project
Aditya Jain
Relaxo footwear ltd, 3rd
floor Allied house, Inderlok
chowk, New Delhi - 110035
Table of contents
Topic Page
Acknowledgement 3
Synopsis 4-5
Literature Review 6 – 38
Analysis 69 – 70
Conclusion 71 – 72
Learning experience 75
Bibliography 76 - 77
Appendix 78 – 80
Acknowledgement
2
The Project is an attempt to study Rural Marketing techniques in INDIA with help
of RELAXO FOOTWEAR LTD.
For this I would like to thank my Mentor Mr. Subrata Goswami who has shown
me the way and guided me through this project and without whom this project
would not have been possible. I would also like to thank my Institute “Asia pacific
institute of management” for providing me this opportunity.
And, Last but not the least my company heads Mrs. Kanwajeet Sandhu D’silva
(DGM communication and advertising Relaxo footwear ltd.), Mr. Rajan
makhani and Mr. Vijay Verma (Sr. advertising officer) who have helped me
learn a lot during my Internship period and guided me through this Research.
3
Synopsis
In Recent years, rural markets in INDIA have acquired great significance, as the
overall growth of the Indian economy has led to an increase in the purchasing
power of the Indian rural household. Also on account of green revolution and
improved facilities for rural people, the rural areas are consuming a large part of
the industrial and manufactured products. In this context, a special Marketing
strategy namely, rural marketing has emerged. But often, the term rural
marketing is confused to be agricultural marketing, though it is completely
different from it. Where agricultural marketing refers to marketing of rural
products to sell in urban markets, rural marketing deals with products to be
targeted towards rural producers and consumers for selling.
4
‘Go rural’ is the slogan of marketing gurus after analyzing the socio-economic
changes in villages. The Rural population is nearly three times the urban, so that
Rural consumers have become the prime target market for consumer durable and
non-durable products, food, construction, electrical, electronics, automobiles,
banks, insurance companies and other sectors besides hundred per cent of agri-
input products such as seeds, fertilizers, pesticides and farm machinery. The Indian
rural market today accounts for only about Rs 8 billion of the total ad pie of Rs 120
billion, thus claiming 6.6 per cent of the total share. So clearly there seems to be a
long way ahead. Although a lot is spoken about the immense potential of the
unexplored rural market, advertisers and companies find it easier to vie for a share
of the already divided urban pie.
The success of a brand in the Indian rural market is as unpredictable as rain. It has
always been difficult to gauge the rural market. Many brands, which should have
been successful, have failed miserably. More often than not, people attribute rural
market success to luck. Therefore, marketers need to understand the social
dynamics and attitude variations within each village though nationally it follows a
consistent pattern looking at the challenges and the opportunities which rural
markets offer to the marketers it can be said that the future is very promising for
those who can understand the dynamics of rural markets and exploit them to their
best advantage. 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 areas.
Literature Review
5
According to “G. Srinivas Rao” in his book “Rural marketing in India”, Rural
Population in India accounts for more than 70% of its overall population. The
Rural markets are coming up in a huge way due to its untapped immense potential.
The consumers in these rural areas are different from their urban counterparts in
their buying behavior; the reasons for this differentiation are many like:
6
and services to the consumers. The ways of communicating the product and
services to the rural consumer are also different from their urban
counterparts. Some of the medium used to market the product in rural areas
are print ads, wall paints, haats/ melas, folk dances etc. One of the main
problems in India in context of rural marketing is also the change in
languages that can be seen in the Indian rural system frequently as we move
from one geographical territory to another; Lack of a standard language
among all rural regions creates a problem of communication for the
marketers.
The growth of rural media like Television etc are now reaching more households
of rural areas and ,also increases level of literacy has resulted in a revolutionized
rural consumer who now knows more about what he is buying etc. The huge
selling potential for consumer durables and other FMCG products that the rural
markets are holding is now being recognized by many companies, who want the
maximum share of this untapped huge market. Companies like HUL, ITC etc have
already started making efforts to gain the share in rural markets.
7
. Infrastructure is improving rapidly -
Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses
halved (41% to 23%).
Percentage of BPL families declined from 46% to 27%.
Rural literacy level improved from 36% to 59%.
8
Toothpaste 82.2 44.9 55.6
Proliferation of large format Rural Retail Stores, which have been successful
also -
9
literacy (Kerala 90%, Bihar 44%) and population below poverty line (Orissa 48%,
Punjab 6%).
Reality: Number of middle class HHs (annual income Rs. 45,000 - 2,15,000) for
rural sector is 27.4 million as compared to the figure of 29.5 million for urban
sector. Rural incomes CAGR was 10.95% compared to 10.74% in urban between
1970-71 and 1993-94.
Rural markets, as part of any economy, have untapped potential. There are several
difficulties confronting the effort to fully explore rural markets. The concept of
rural markets in India is still in evolving shape, and the sector poses a variety of
10
challenges. Distribution costs and non-availability of retail outlets are major
problems faced by the marketers. The success of a brand in the Indian rural market
is as unpredictable as rain. Many brands, which should have been successful, have
failed miserably. This is because most firms try to extend marketing plans that they
use in urban areas to the rural markets. 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.
Poor Infrastructure
Physical Distribution
Channel Management
Dynamics of rural markets differ from other market types, and similarly,
rural marketing strategies are also significantly different from the marketing
strategies aimed at an urban or industrial consumer.
11
Strategies to be followed.
Marketing Strategy
Marketers need to understand the psyche of the rural consumers and then act
accordingly. Rural marketing involves more intensive personal selling
efforts compared to urban marketing. Firms should refrain from designing
goods for the urban markets and subsequently pushing them in the rural
areas. To effectively tap the rural market, a brand must associate it with the
same things the rural folks do. This can be done by utilizing the various rural
folk media 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.
Distribution Strategy
One of the ways could be using company delivery van which can serve two
purposes - 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
12
distribution. Annual "melas" organized are quite popular and provide a very
good platform for distribution because 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 (often called "Haats') when
exchange of goods and services are carried out. This is another potential low
cost distribution channel available to the marketers. Also, every region
consisting of several villages is generally served by one satellite town
(termed as "Mandis" or Agri-markets) where people prefer to go to buy their
durable commodities. If marketing managers use these feeder towns, they
will easily be able to cover a large section of the rural population.
Promotional Strategy
One very fine example can be quoted of Escorts where they focused on
deeper penetration. They did not rely on TV or press advertisements, but
13
rather concentrated on focused approach depending on geographical and
market parameters like fares, melas, etc. Looking at the 'kuccha' roads of
village, they positioned their bike as tough vehicle. Their advertisements
showed Dharmendra riding Escort with the punch line 'Jandar Sawari,
Shandar Sawari'. Thus, they achieved whopping sales of 95000 vehicles
annually.
HLL started 'Operation Bharat' to tap the rural markets. Under this
operation, it passed out low-priced sample packets of its toothpaste, fairness
cream, Clinic plus shampoo, and Ponds cream to twenty million households.
ITC is setting up e-Chou pals, which offers the farmers all the information,
products and services they need to enhance farm productivity, improve farm-
gate price realization and cut transaction costs. Farmers can access latest
local and global information on weather, scientific farming practices as well
as market prices at the village itself through this web portal - all in Hindi. It
also facilitates supply of high quality farm inputs as well as purchase of
commodities at their doorstep.
BPCL introduced Rural Marketing Vehicle (RMV) as their strategy for rural
marketing. It moves from village to village and fills cylinders on the spot for
the rural customers. BPCL considered low-income of rural population, and
14
therefore introduced a smaller size cylinder to reduce both the initial deposit
cost as well as the recurring refill cost.
According to the 1991 census, the rural population constitutes about 74% of
the total population in our country. While the population went from 55 crores
(1971) to 85 crores (1991), the rural-urban proportion have remained more or less
the same as in 1971. There are states like U.P, M.P, Bihar, Rajasthan and Orissa
where rural population varies from 80 to 90 percent. Therefore a large population
gives an opportunity for marketing a variety of goods and services. However
income and purchasing power play a major role in determining the demand in rural
areas.
15
2. Occupation pattern:
3. Literacy level:
It has been estimated that the rural literacy level is 36% compared to 62% in
urban areas. Literacy is one of the important factors in developing awareness and
knowledge about technological changes. As many as 16 major languages are
spoken adding to the complexities in rural communication.
5. Media reach:
The media reach in rural household is low. Statistics indicates that the reach
of Print media is 10%, followed by TV 31%, Radio 32% and Cinema 36%.
16
Therefore the marketer has to consider rural specific promotion media and methods
to reach the villagers.
6. Communication facilities:
About 20% of the six lakh villages are without telephone facility even today.
This includes Rajasthan (17600 villages), MP (14200 villages), Maharashtra
(12000 villages), Gujarat (7000 villages), and AP, Assam, Orissa about 6000
villages each. (Source: The Indian Express dated 30.3.2003).
7. Transportation facilities:
About 50% of the markets are not connected by road. Most of the roads are
kuccha and become unusable during rainy season. Many farmers use bullock cart
for transporting their produce from village to the market. This means of transport is
time consuming.
8. Rural electrification:
17
9 .Medical facilities:
Medical facilities are quite inadequate and the villagers have to travel long
Distances for getting medical treatment.
10. Distance:
Village nearer to towns has elements of the urban life. Interior villages are
More traditional.
As, said by Pradeep Kashyap in his book “THE RURAL MARKETING BOOK”,
Unlike urban markets, rural markets are difficult to predict and possess special
characteristics. The featured population is predominantly illiterate, have low
income, characterized by irregular income, lack of monthly income and flow of
income fluctuating with the monsoon winds.
Rural markets face the critical issues of Distribution, Understanding the rural
consumer, Communication and Poor infrastructure. The marketer has to strengthen
the distribution and pricing strategies. The rural consumer expects value for money
and owing to has unsteady and meager status of weekly income; increasing the
household income and improving distribution are the viable strategies that have to
be adapted to tap the immense potential of the market.
18
Media reach is a strong reason for the penetration of goods like cosmetics, mobile
phones, etc., which are only used by the urban people. Increasing awareness and
knowledge on different products and brands accelerate the demand. The rural
audience are however critical of glamorous ads on TV, and depend on the opinion
leaders who introduce the product by using it and recommending it.
Opinion leaders play a key role in popularizing products and influence in rural
market. Nowadays educated youth of rural also influences the rural consumers.
Rural consumers are influenced by the life style they watch on television sets.
Their less exposure to outside world makes them innocent and fascinated to
novelties. The reach of mass television media, especially television has influenced
the buying behavior greatly
More than 70% of Indian population lives in rural India, which itself shows the
immense untapped power of the rural consumer in the coming period. This
population requires various products that are to be served by the FMCG companies
which now have already reached to stagnation in urban markets.
As, per the National council for applied Economic Research (NCAER) study there
are many “middle income and above” household in rural areas as there are in urban
areas. There are almost twice as many “low middle income” households in rural
areas than in urban areas. According to NCAER the projections, the number of
upper income households will increase rapidly in rural areas.
19
increasing demands of consumer goods from the rural areas companies are now
looking forward to make attempts to gain more and more market share in these
areas. The rural market is zooming ahead at around 25 per cent annually. “The
rural market is growing faster than urban India now,” says Venugopal Dhoot,
chairman of the Rs 989 -crore (Rs billion) Videocon Appliances. “The urban
market is a replacement and up gradation market today,” adds Samsung’s director,
marketing, RavindeR Zutshi.
20
Rural markets are delicately powerful. Certain adaptations are required to cater to
the rural masses; they have unique expectation and warrant changes in all four
parameters of product, price, promotion and distribution.
Distributing small and medium sized packets thro poor roads, over long distances,
into deep pockets of rural India and getting the stockiest to trust the mobility is a
Herculean task. Giving the confidence those advertisements will support. Sales
force is being trained to win the confidence of opinion leaders. Opinion leaders
play an important role in popularizing the brand. They sometimes play the role of
entry barriers for new products.
21
conservative audience to westernization. Panchayat televisions in Tamilnadu
carries message that are well received and contribute to community development.
Dynamics of rural markets differ from other market types, and similarly rural
marketing strategies are also significantly different from the marketing strategies
aimed at an urban or industrial consumer. This, along with several other related
issues, have been subject matter of intense discussions and debate in countries like
India and China and focus of even international symposia organized in these
countries.
Rural markets and rural marketing involve a number of strategies, which include:
Bundling of inputs
22
Innovative media can be used to reach the rural customers. Radio and television
are the conventional media that are reaching the rural audience effectively. But
horse cart, bullock cart and wall writing are the other media, which can carry the
message effectively to the rural customers.
As per research of Purba Basu, (faculty of ICFAI business school), the lifestyle of
rural consumers is changing. Rural Indian market and the marketing strategy have
become the latest marketing buzzword for most of the FMCG majors. She added
the strategies of different FMCG companies for capturing rural market like Titan’s
Sonata watches, Coco Cola’s 200ml bottle, different strategies of HUL and Marico
etc. She takes into consideration the study of National Council for Applied
Economic Research (NCAER). According to the NCAER projections, the number
of middle and high-income households in rural area. India is expected to grow
from 80 million to 111 million by 2007. In urban India, the same is expected to
grow from 46 million to 59 million. Thus, the
absolute size of rural India is expected to be double that of urban India.
23
According to Pradeep Tognatta, (former vice
president of LG) The economic growth in India's agricultural sector in last year
was over 7%, compared with 3% in the industrial sector. This implies a huge
market potentiality for the marketer to meet up increasing demand. Factors such as
village psyche, strong distribution network and market awareness are few
prerequisites for making a dent in the rural markets. The model is of the stolid
Anglo-Dutch conglomerate Unilever Group, which has enjoyed a century-long
presence in India through its subsidiary Hindustan Lever Ltd. It was Hindustan
Lever that several years ago popularized the idea of selling its products in tiny
packages. Its sachets of detergent and shampoo are in great demand in Indian
villages. Britannia with its low priced Tiger brand biscuits has become some of the
success story in rural marketing.
Rajesh K Aithal of IIM(L) had done his research on rural telecom in India .He
explain that Rural markets are an important and growing market for most products
and services including telecom. The characteristics of the market in terms of low
and spread out population and limited purchasing power make it a difficult market
to capture. The Bottom of the pyramid marketing strategies and the 4 A's model of
Availability, Affordability, Acceptability and Awareness provide us with a means
of developing appropriate strategies to tackle the marketing issues for marketing
telecom services in rural areas. Successful cases like the Grameen Phone in
Bangladesh and Smart Communications Inc in Philippines also provide us with
some guidelines to tackling the issue.
Promotional strategies
24
Though the rural markets offer big attractions to the marketers, one of the
most important questions frequently asked is “How do we reach the large rural
population through different media and methods?
Formal media
It includes Press and print, TV, Cinema, Radio, and Point of purchase and Outdoor
advertisement. Reach of formal media is low in rural households (Print: 18%, TV:
27%, Cinema: 30%, and Radio: 37%) and therefore the marketer has to consider
the following points:
25
Example of Eenadu newspaper in A.P
➢ Television:
It has made a great impact and large audience has been exposed to this
medium. HLL has been using TV to communicate with the rural masses. Lifebuoy,
Lux, Nihar oil etc are some of the products advertised via television. Regional TV
channels have become very popular especially in Southern states. Examples: SUN
TV is very popular even in rural areas in Tamil Nadu and Asia net is a preferred
regional channel in Kerala. Many consumer goods companies and fertilizer
companies are using these TV channels to reach the rural customer.
➢ Radio:
26
Radio reaches large population in rural areas at a relatively low cost.
Example: Colgate, Jyoti Labs, Zandu Balm, Zuari industries are some of the
companies using radio communication programme. There are specific programmes
for farmers like Farm and Home/Krishi Darshan in regional languages. The
farmers have a habit of listening to regional news/agricultural news in the morning
and the late evening. The advertisement has to be released during this time to get
maximum coverage in rural areas. Another advantage is that the radio commercial
can be prepared at short notice to meet the changing needs of the rural folk.
Example: Release of a pesticide ad at the time of outbreak of a pest or disease in
crops.
➢ Cinema:
About 65% of the earnings from cinema are from rural markets. Film
viewing habits is high in certain states like Tamil Nadu, Karnataka and Andhra
Pradesh. Village theatres do roaring business during festivals by having four shows
per day. The monthly charge for showing an ad film is within Rs.500. Local
distributor or dealer who has good contacts with cinema houses in villages can
easily monitor this activity. Examples: Films on products like Vicks, Lifebuoy and
SPIC fertilizers are shown in rural cinema halls. Apart from films, Ad slides can
also be screened in village theatres.
➢ Outdoor advertisements:
This form of media, which includes signboards, wall painting, hoarding, tree
boards, bus boards, dealer boards, product display boards etc, is cost effective in
rural areas. Symbols, pictures and colors should be used in POPs meant for rural
27
markets so that they can easily identify the products. Generally rural people prefer
bright colors and the marketer should utilize such cues.
➢ Point of purchase:
Display of hangings, festoons and product packs in the shops will catch the
attention of prospective buyers. However a clutter of such POP materials of
competing companies will not have the desired effect and is to be avoided.
➢ Wall paintings:
28
rainy season. The matter should be in the form of pictures, slogans for catching the
attention of people. Companies marketing TV, fans, branded coffee/tea, toothpaste,
pesticides, fertilizers etc. use wall painting as promotion medium in rural areas.
Tree boards:
These are painted boards of about two square feet in dimension having the
picture or name or slogan of the product painted on it. The cost of such a painted
board is about Rs.80. These boards are fixed to the trees on both sides of the
village road at a height of about 10 feet from ground level. These boards attract the
Attention of slow moving vehicles like cycles, bullock carts and tractors and
people walking on the road. Considering the poor condition of roads, even the
buses move at slow speed through village road. Fertilizer and pesticide companies
in rural areas extensively use tree boards. These are low priced promotion items
and can be used by consumer goods companies too.
Informal/Rural specific media
These media with effective reach and personalized communication will help
in realizing the promotional objectives. Companies to suit the specific
requirements of rural communication are using a variety of such media effectively
and some of the more important media and methods are given below.
29
An example of wall paint advertisement by Coca cola in rural India.
➢ Farm-to-Farm/House-to-House visit:
30
Group meeting:
➢ Opinion leaders:
Villagers place more emphasis on the experience of others who have used a
product/brand to make purchase decision. Opinion leader is a person who is
considered to be knowledgeable and is consulted by others and his advice is
normally followed. Such opinion leaders could be big landlords, bank official,
Panchayat-president, teachers, extension workers etc. Examples: a) Mahindra
Tractors use bankers as opinion leaders for their product. b) Asian Paints promoted
its Utsav brand of paint by painting the village Sarpanch’s house a few months
prior to the launch if the branch to demonstrate that the paint does not peel off.
➢ The Melas:
31
Melas are of different types i.e. commodity fairs, cattle fairs and religious
fairs and may be held only for a day or may extend over a week. Many companies
have come out with creative ideas for participating in such melas. Examples: a)
Britannia promotes Tiger Brand Biscuits through melas. b) The mahakumbh at
Allahabad is the biggest mela in India. HLL has put up 14 stalls in the mela
grounds for promoting Lifebuoy. Handcarts have been deployed for increasing
access.
The Haats :
Traditionally on certain days of week, both the sellers and buyers meet in the
village to buy and sell goods and services. These are the haats that are being held
regularly in all rural areas. The sellers arrive in the morning in the haat and remain
till late in the evening. Next day they move to another haat. The reason being that
in villages the wages are paid on weekly basis and haat is conducted on the day
when the villages get their wages. For the marketer, the haat can be an ideal
platform for advertising and selling of goods. By participating in haats and melas,
the company can not only promote and sell the products but also understand the
shared values, beliefs and perceptions of rural customers that influence his buying
behavior
32
.
➢ Folk dances:
33
announcement is made about the company’s products and leaflets are distributed.
After the dance program, queries, if any, about the products are answered by the
sales person. Folk dance program costs about Rs.5000 per day and therefore these
programmes are conducted during the peak season in selected villages.
Examples: Fertilizer and pesticide companies organize folk dance
programmes during peak season in selected markets. Thumps Up has sponsored
Lavanis, the folk dance programmes of Maharashtra and over 30 programmes have
been arranged in selected rural markets
AV unit is one of the effective tools for rural communication. The van is a
mobile promotion station having facilities for screening films slides and mike
publicity. The sales person makes a brief talk about situation in the village, the
products and the benefits. The ad film is screened along with some popular film
shots and this continues for about 30 minutes. At the end of the film show, he
distributes handbills and answers queries of the customers. The whole operation
takes about 1-2 hours depending upon the products under promotion, number of
participants in the meeting and time taken for question and answers. The vans
move to the next village for the second show. The cost of running a fully equipped
AVP unit is about Rs.4000 per day and AVP van operation has to be considered as
an investment for business development in rural areas. Example: Companies such
as HLL, Colgate, and Phillips have made effective use of AVP vans for
popularizing their products in rural areas.
34
Package is an integral part of the product. Its main purpose is to protect the
product during transit, to preserve the quality and to avoid any loss in quality and
quantity. The main purpose of this contest is to remind the customer to buy the
product as soon as he enters the shop. Another objective is to influence the dealer
To stock the product and support the company in increasing the sales. The display
contest has to be announced well in advance and promotional materials to be
distributed to all the selected dealers in a geographical area. Prizes for best displays
are announced to motivate the dealers; the contest lasts for about a month. A well-
planned product display contest not only increases the involvement of dealers in
the company’s products but also increases the sales during the contest period. This
is used for promoting consumer goods such as shampoos, soaps and toothpaste
Field demonstration:
This is based on the extension principle “seeing is believing” and is one of
the most effective methods to show the superiority of the company’s products to
the customers. A progressive farmer who is an opinion leader is selected and the
demonstration is conducted in his field in the presence of a group of farmers in the
village. The farmers observe the results in the field and the local dealer calls on
them in their farms and persuades them to buy the particular brand of pesticide or
fertilizer. Examples: a) Spraying a particular brand of an insecticide against insect
pests and showing the farmer how effectively the insects are controlled. b)
Demonstrating the use of tractor/implements for different agricultural operations.
c) Hawkins pressure cooker has demonstration representatives who carry out
demos in rural households. The representative receives 1% commission for every
customer who approaches the dealer via demonstrations. e) Similarly effectiveness
35
of detergents, pressure cookers, vacuum cleaners and mosquito coils could be
promoted by demonstrations in selected markets.
Field days:
These are extension of field demonstrations. One of the main objectives of
following modern agricultural practices is to increase the yield. The company
organizes demonstrations in a piece of land belonging to progressive farmers. All
the fertilizers, pesticides, nutrients etc. are applied after making field observations.
Just before harvest, all the important farmers are invited to see demonstration plot
and see for themselves how the yields are better in the plot compared to other
fields. Field demonstrations/field days consume lot of time and efforts and
therefore have to be planned well.
Information centers:
They provide latest information on cultivation of crops, fertilizer application,
weed, management and control of pests and diseases. Experienced agricultural
graduates who make frequent visits to the field and
Advice farmers on modern agricultural practices manage the centers. They also
provide information on farm implements, seeds, fertilizers, pesticides, diesel
engines, sprayers and tractors etc. Many consumer goods companies have opened
show rooms in prosperous rural areas. Example: Hero Honda has opened extension
counters with show room facilities in major rural markets.
➢ Life-style marketing:
Each rural market segment has certain special features i.e. they share
common life-style traits. They include village sports, religious events, prominent
personalities and role models. Examples: Textile mills maintaining community
36
gardens, Mineral water companies supplying clean drinking water during summer
festivals in villages and Consumer goods companies sponsoring Kabaddi.
37
The manufacturer appoints wholesalers in key rural markets and these
wholesalers cater to the needs of retailers in villages. Example: Sale of pesticides
used in agriculture.
➢ Manufacturer-retailer-ultimate consumer:
38
Relaxo is one of India's most quality conscious and progressive footwear
companies. Headquartered in Delhi, India, it maintains a fine combination of
comfort, style and workmanship and is embarking upon appreciable growth plans
for the future.
39
Second largest footwear company in India:
Relaxo has the capacity to manufacture over 100 million pairs, per annum. It is
second only to Bata - a name of international repute in the footwear market.
Trained workforce:
Relaxo employs over 2500 personnel who are well trained in their respective
production activities including 400 officials spread over all 9 manufacturing units
and the corporate office.
40
Relaxo’s Vision, Mission and Values
Values:
• Corporate citizenship
• Honesty
• Transparency
• Team Orientation
• Employee Satisfaction
• Customer Orientation
Relaxo’s Team
Business professional 72
Technical professional 92
Retail 375
Team Relaxo
92
72
Business professional
Technical professional
Retail
661 Support staff
375
42
43
Relaxo’s Manufacturing Units
44
RELAXO FOOTWEARS LTD UNIT-2 BAHADURGARH Products-Hawai &
Soles
45
RELAXO FOORWEARS LTD - UNIT-3 Bhiwadi PRODUCT-HAWAI
46
Relaxo Brand Wagon
47
From the above chart you can see which brand of relaxo is targeted towards which
segment of the market.
Relaxo has been growing at a fast pace since its inception in 1976. It has been
growing at a rapid rate which can be seen by the following figure.
48
Turnover in Rs crore
1000
1000
900
800
700
600
601.48
500 Turnover in Rs crore
400
407.46
300
305.66
200.85 235.93
200
100
0
2005-06
2006-07
2007-08
2008-09
2009-10
2011-12
Figures for year 2009-10 and year 2011-12 are projected figures
EVA/Flite
49
Credentials Sales volume in crore pairs
3
2.74
2.5
2 1.83
1.62
Credentials Sales volume
1.5
1.2
0.5
0
2006-07 2007-08 2008-09 2009-10
Sparx:
It is one of their most popular brands these days, sales for which are increasing day
by day and are reaching new heights.
50
credentials - Sales volume in lakhs pair
25
22.87
20
16.39
15
credentials - Sales volume
10
6.42
5 3.69
0
2006-07 2007-08 2008-09 2009-10
The above chart shows the growing popularity of their brand “Sparx”.
The figures include School Mate, Casuals, Elena and DIP Sparx
51
Credentials - sales volume in lakhs pair
45
40
35
30
20
15
10
0
2006-07 2007-08 2008-09 2009-10
The figures include School Mate, Casuals, Elena and DIP Sparx
The figures include Canvas, Mary Jane, Canvas Premoulded, Bahamas and
Leatherites.
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Credentials - sales volume in lakhs pair
35
30
25
15
10
0
2006-07 2007-08 2008-09 2009-10
The figures include Canvas, Mary Jane, Canvas Premoulded, Bahamas and
Leatherites.
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Total Retail Outlets as on October 2009 – 88
Delhi – 39
Haryana – 17
Punjab – 15
UP & Uttarakhand – 12
Gujarat – 05
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Relaxo’s India presence
Relaxo is present all over India as you can see from the above presence map.
Relaxo’s Hawaii
Relaxo’s Hawaii is their major brand which is targeted towards the rural market. It
is the main product of the study for which the research has been conducted. It is a
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very popular brand in rural areas and Relaxo manufactures around 3 lakh pair’s of
Hawaii every day.
Relaxo Hawaii is an affordable product and is targeted mainly towards the rural
parts of India. It is also a very important member of the Relaxo brand wagon.
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This is the product range of Hawaii available in market.
Relaxo till date has been advertising its brand of Hawaii through traditional
instruments like vendor posters, wall paints in rural areas which are a predominant
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source of advertising has also been used by relaxo in its marketing strategy for
promotion of realxo’s Hawaii in rural areas.
A wall paint used by Relaxo to promote its brand of Hawaii cushion in rural areas
In the above picture you can see a wall paint advertisement being used by Relaxo
as a part of their rural marketing strategy.
Celebrity endorsement
Relaxo has been using actress priti jhangiani as its face for marketing Relaxo
Hawaii in rural areas. She is a popular actress in bollywood with a very typical
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Indian face. She is used as the face for Relaxo’s Hawaii to reach rural consumer as
rural people can relate to her Indian face and features.
Television Advertisement
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Relaxo has also made TVC adverts to reach rural markets especially for its brand
of slippers Hawaii. It has used actress priti jhangiani in the advert depicting her
inside a small village with relaxo slippers. The advertisements depicts her getting
out of the bus into the village with her Relaxo slippers in her feet and then she
takes a rickshaw ride and you can see village people all round her throughout the
advert who are also wearing Relaxo Hawaii slippers.
http://www.youtube.com/watch?v=vft3EqKKipw
This is the “YouTube” link for Relaxo Hawaii TVC advert with actress priti
jhangiani.
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Objective: The main objective of the study is to find Relaxo’s Hawaii rural reach
and awareness and find out effective ways of marketing the Hawaii in rural areas
to make it more popular.
Aims:
To find which media is more popular with rural people in these changing
times.
Methodology
Scope of study: The study is conducted to find out effective ways of reaching the
rural consumer for increasing the brand popularity of Relaxo’s Hawaii brand.
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Data collection Resources:
Primary data: The data for the study is collected by help of the specific
questionnaire directed towards rural people to know their preferences of
advertising mediums.
Sampling: The data is collected from five villages and semi urban areas of Delhi
and nearby states. 20 people from each village is randomly selected and questioned
personally for their preferences.
Villages include...
Dhansa
Kapas – Hera
Baagpat
Jhajjar
Bawana
20 people from each of these villages were randomly selected for the
questionnaire and personally interviewed for their preferences.
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Due to restraints of time the geographical area chosen for this study is
predominantly from regions of north India.
During the research some of the people were not willing to answer the
questionnaire and some were not answering to the questions with
seriousness which is again biasness for the study.
For finding how many other types of green products do people actually know about
we asked them the following question.
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green products known
16
2
46
more than 10
more than 5
more than 3
more than 1
36
We can see from the above chart that people don’t really know about many green
products in India. They are less informed about various green options that can be
used by them in their day to day lives.
7) do you think green products are really effective for a good environmental cause?
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effectiveness of green products
70
65
60
50
40 35
effectiveness of green products
30
20
10
yes
no
The chart above shows that people believe that there are better ways to save the
environment than using green products which make a deep cut in the pockets of the
consumer.
We asked people as to how many times do they buy these green products….
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use of green prodcuts
70
60 61
50
40
30
19 use of green
20
prodcuts
7 13
10
0
always
sometimes
generally
Never
The table above shows that people are not buying green products that frequently.
To check whether people actually do know about green products we asked them
the question….
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information on green prodcuts
43 yes
No
57
The reply of staggering 57% people in an urban area shows that people are not well
aware about the term of GREEN PRODUCTS. They are yet to know about
effectiveness and information on green products.
To know whether people are ready to pay a price for using these green products,
we asked them….
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premium price for a green product
60
57
50
40
20 15
10
0
always
sometimes
never
The above replies show us that people in India are not ready to pay a premium
price for these green products. They still want value for money products and are
still price sensitive while making a purchase.
Also we asked them about the premium amount that they mitie want or may not
want to pay for the green products…
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premium price for green products
60
60
50
40
21
20
19
10
0
I wont pay extra
sometimes
I wont mind paying
extra
It is evident from the above chart that people are price sensitive and would not like
pay extra for the same service of product wether it is green or not. A staggering
60% people would not pay extra premium price for greener products.
To know about the perception of people regarding green products already available
in the market we asked them…
5) are green product a good choice or just an expensive option for you?
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perception about green products
80 74
70
60
50
30
26
20
10
expensive option
good choice
As, the above chart shows that people believe that green products are an expensive
option rather a wise choice in the mind of the Indian consumer.
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Analysis of the study
As the demand for green products undoubtedly exist, Green Marketing provides an
opportunity to the companies to increase their market-share by introducing eco
friendly
products. Stricter environmental regulations across the world, growing consumer
preference for eco-friendly companies, and the inherent cost advantages in
lowering
toxic waste, are encouraging industries big and small to clean up.
Result of a survey conducted showed that, consumers are not overly committed to
improving their environment and may be looking to lay too much responsibility on
industry and government. Though it’s the responsibility of the firm to produce
products,
which are having minimum impact on the environment, but ultimately it’s the
consumer
who is having responsibility to use eco friendly products. Consumers are not too
much
concerned about the environment but as they have become more sophisticated,
they
require clear information about how choosing one product over another will benefit
the
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Conclusion
Thus, looking at the challenges and the opportunities, which rural markets offer to
the marketers, it can be said that the future is very promising for those who can
understand the dynamics of rural markets and exploit them to their best advantage.
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 India.
The Indian growth story is now spreading itself to India's hinterlands. Rural India,
which accounts for more than 70 per cent of the country's one billion population
(according to the Census of India 2001), is not just witnessing an increase in its
income but also in consumption and production. Moreover, the rural consumer
market, which grew 25 per cent in 2008 when demand in urban areas slowed due
to the global recession, is expected to reach US$ 425 billion in 2010-11 with 720-
790 million customers, according to a white paper prepared by CII-Technopak.
That will be double the 2004-05 market size of US$ 220 billion.
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share in rural markets. For this they need to understand how can they market the
products effectively to the rural consumers by specifically using the mediums
which can easily and effectively reach the rural consumer and also keeping in mind
the changing trends in these rural markets.
People have less information about green products and green marketing in
Indian context.
People are price sensitive and want to pay a similar price for green products.
People want to buy value for money products.
People should be more informed about the effectiveness of green products
and their usage over a time period.
People don’t want to spend a premium price for the same usage of products.
Companies are still scared of rolling out green products for the fear of being
left out.
Recession and inflation plays a important role in the buying behavior of the
consumers.
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Issues like Global warming and depletion of ozone umbrella are the main for the
healthy survival. Every person rich or poor would be interested in quality life with
full of health and vigor and so would the corporate class. Financial gain and
economic profit is the main aim of any corporate business. But harm to
environment cost by sustain business across the globe is realized now though off
late. This sense is building corporate citizenship in the business class. So green
marketing by the business class is still in the selfish anthological perspective of
long term sustainable business and to please the consumer and obtain the sanction
license by the governing body. Industries in Asian countries are catching the need
of green marketing from the developed countries but still there is a wide gap
between their understanding and implementation, so it is recommended that these
countries specially countries like INDIA and CHINA should take important steps
towards making green products more popular for the welfare of the society.
Suggestions
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5) People should be compelled by government authorities to use green products
where applicable. For e.g ban on plastic bags, use of CNG in new delhi etc.
6) People should be awarded and recognized for using green products in small
ways to make them feel special and recognizing their contribution.
7) Examples should be used from the western world where people are now going
towards greener products much faster compared to the asia pacific region.
The study of the perception of consumers in India about the green products and
green marketing tells us that, Consumers in India are still not well aware about the
effectiveness of green products. In difficult times of inflation people are more
adhered to buy value for money products. They are lagging behind in the
knowledge and use of greener options to save the environment when compared to
their western counterparts who are running for these green and organic products
crazily. Indians need to be more informed about the practices of green products to
save the world from ill happenings like global warming for a better future of the
world as a whole.
Bibliography
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Polanski, M. J. "An Introduction to Green Marketing." Electronic Green
Journal 1, no. 2 (November 1994).
Ottman, J A(Jan2004) “empower to the people”In business.
Prakash, A. (May2002) “ Green Marketing, public policy and managerial
strategy”
Ottman JA, Stafford ER, Hartman CL,(June-2006)” Avoiding Green
Marketing Myopia.
www.ecomall.com
www.greenmarketingcorner.com
www.greenpeace.org
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Appendix
Name:
Age:
Occupation:
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4) Would you spend more for a greener option?
a) Always
b) Sometimes
c) No I wont..
6) How many times do you buy green products while making purchase?
a) Always
b) Never
c) Sometimes
d) generally
9) How many types of green products do you know about other than
stationary?
a) More than 10
b) More than 5
c) More than 3
d) More than 1
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10) Does green marketing effect your buying behavior towards a product?
a) Yes
b) No
c) Sometimes
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