Identify three brands that have failed to create a unique

positioning in rural markets in the last five years. What

could/should have been done to position these brands more
successfully in the minds of consumers from rural India?
 MDH Spices

• MDH (Mahashian Di Hatti Private Limited), Chaired by Darampal Gulati is the leading spices brand in
India, enjoying above 80% market share, especially in North India. The brand offers a range of 62 products, in
over 150 packages.
• Product-Price Range of MDH Spices
• Unique Features of the Brand: The brand believes in traditional cooking and focuses on traditional family
values of India. Therefore, the products are blended in such a way that they cater to the customers who love
traditional, authentic Indian taste
• Segmentation-Targeting- Positioning of MDH Spices
1. Segmentation: MDH Spices caters to all kinds of spices users. There is no unique segmentation strategy present
in MDH Spices, dedicated to Rural Markets.
2. Targeting: The brand targets traditional spices of India. This target strategy is common among rural & urban
markets
3. Positioning: The brand positions itself as a “Traditional Brand of India”
MDH’S FAILURE TO POSITION IN THE RURAL MARKETS

• MDH offers a range of blended spices ranging in vegetarian and non-vegetarian

category. MDH uses a competitive pricing strategy and keeps it common among
both urban & rural markets. A typical MDH box pack of blend spice rage from an
average of Rs. 25 to 70 for 100 grams. However, competitors like Everest Masala
also offers the same at a much lower rate, as low at Rs. 10 & Rs. 5 for the smallest
packets.

• It is observed that, rural consumers prefer smaller packing, which are generally a
“one-time use” products. Therefore, it fails to provide affordability to rural
consumers.

• Since, the marketing and pricing strategies of MDH Spices is common among rural
& urban markets, the communication has led to make rural consumers feel that the
Rs. 5/ 8 grams
brand is not affordable for them. The brand is in the top of the mind recall of the
rural consumers, but they do not tend to make a purchase.
STRATEGY TO POSITION BETTER IN THE MINDS OF RURAL CONSUMERS- MDH
SPICES

 Change in the pricing strategy:

 In order to penetrate and position in the minds of rural consumers, MDH has to
transform its pricing strategies
 Competitive Pricing Strategy dedicated to rural areas: MDH has to re-adopt its
competitive pricing strategy, which caters to rural segments. It has to identify its
competitors in the rural market and re-draft its pricing
 Produce Smaller Packs: MDH as to start producing & supplying smaller packs, in Rs 10
& Rs 5 categories, which caters to low-price, high value seeking rural consumers
 Position as Value Providers: MDH Spices has to position itself as “value providers” and
a typical rural household can enjoy the quality blend of MDH spices in its cooking.
 AMUL

• The Billion Litre Idea which led to the White Revolution and the
establishment of Amul was instrumental in putting India’s dairy
industry on the world map and ensuring livelihoods for over 100
million dairy farmers.

• Amul is said to have clocked a growth rate of around 30% and

has a market share of 86%

• Despite of this fact Amul Failed in the rural Indian markets of

India. Out of which only 12% of market share has covered the
Rural Indian Market.

• Indian Rural segment got a great increase in per capita income

due to the white revolution in which Amul played a vital role
helping the Dairy Farmers. A public made Brand now turned into
the greatest in the industry, but still a failure amongst the people
who created the brand.
Following are the reasons behind the failure & how can it position in rural
markets are:

1. Rural population rely more upon home-made milk products (Ghee, Butter, Curd etc)
2. Rural segment doesn’t prefer packaged milk, they prefer fresh milk from local dairies & farms.
3. Small size packaging is more preferred by the rural population, Amul tried upon small size
products in the rural market but didn’t find that profitable & thus resulted in the failure of the
brand to attract the market.
MONDELEZ

• Mondelez is leading the future of snacking with iconic global

and local brands such as Oreo, belVita and LU biscuits;
Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour
Patch Kids candy and Trident gum.

• They are one of the largest snack companies in the world with
global net revenues of $25.9 billion and net earnings of $3.4
billion in 2018. They make and sell primarily snacks,
including biscuits (cookies, crackers and salted snacks),
chocolate, gum & candy as well as various cheese & grocery
and powdered beverage products.

• Their iconic brands have been part of Indian families for over
70 years. They introduced Cadbury Dairy Milk and Bournvita
in 1948 and since then has been a leader in the chocolate
category in the country.
MONDELEZ’S FAILURE TO POSITION IN THE RURAL MARKETS

1. A reason why Mondelez failed in rural market is its competition from the local, regional brands
most of which are copying and making similar brand name to confuse the rural customers, also at a
lower price.

2. Another reason the chocolates does not work for Mondelez in rural India is because they cannot be
stored at higher temperatures, and coolers and refrigerators are still not prevalent in rural markets.

3. Of the 300,000 coolers Mondelez has in India, only 10,000 are in rural areas. But the company is
planning to install more coolers in rural India so that it can also stock-up premium chocolates like
Cadbury.

4. In the biscuits segment, Mondelez has Oreo in the front for the customers which cannot fight
against biscuits like Parle-G, Monaco, etc. in the rural market due to the price charged against the
quantity served per unit.
STRATEGY TO POSITION BETTER IN THE MINDS OF RURAL CONSUMERS
 

1. Offering smaller size of chocolates packs ranging from Rs.5- Rs.10 to the
consumers.
2. Mondelez should work on their rural infrastructure such as coolers and storage
houses.
3. Mondelez should add some products in a lower segment which can compete
against brands like Parle.