YOUR MARKET ACTIVATION PARTNER IN INDIA Sannams4 Case Study

CASE STUDY

FMCG - Health and personal care

Initiating rural marketing for an FMCG giant

Service: Rural market activation strategy

INDIA I BRAZIL I CHINA

SOLUTION

Using their deep seated knowledge and experience of rural markets, Sannam S4 identified 500 villages to run the initial pilot, with each village having a population of between 5000 – 6000. Sannam S4 supported the client to achieve their goal by:

Location planning and product placement : We identified pilot locations across multiple villages in the states of Maharashtra and Karnataka. The villages were selected on the basis of :

Location.

Access to primary infrastructure.

Access to secondary infrastructure.

Social and demographic data.

Economic Profile and Poverty.

Sannam S4 set up teams to operate in distinct phases—early validation, opportunity assessment, strategy finalisation, program activation and product installation.

BACKGROUND

The client is a leading FMCG company with operations in 100 countries and sales in over 180. It has a product portfolio of health/personal care and food that include a number of ‘billion dollar brand’ household names.

CHALLENGE

The client wanted to improve the health and well-being of rural families across India. The objective was to support key rural areas in accessing better nutrition, sanitation and pure water supplies, as well as delivering improvements in personal hygiene to fight diseases. The client wanted to make available affordable and convenient health and wellness products to achieve this.

The client wanted to host a pilot program for one year across two states. The objective was to: identify opportunities; research the market; engage with potential stakeholders (Government of India and other public health bodies); recruit an operational team (30 people); and conduct the product scoping.

The products were not conveniently accessible previously in rural India. It was clear that the rural population was not aware of the product’s benefits to fight disease or infection. The immediate necessity was to develop awareness across the target market. A focused education programme was also needed at the grass roots level to drive fast adoption. The objectives of the education programme were first, to understand the risks associated with the market's current choices and second, to share benefits of using the new products.

The client partnered with Sannam S4 to design a pilot program that was both innovative and new to India. The aim was to:

Reduce disease in rural areas.

Reduce the health care burden on existing infrastructure.

Increase product demand and sales across categories.

Accelerate new product acceptance.

Improve the product differentiation (existing product portfolio accounted for 20% of rural retail value).

Conduct concept product tests and provide for direct and effective feedback on R&D innovations.

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Stakeholder engagement : An exhaustive analysis was undertaken to identify all the stakeholders and their needs. Local convenience stores were selected and were supported by local field promoters to drive product awareness, education, create demand and influence for adoption. The model developed allowed for:

Constant brand reinforcement on a daily basis.

Using brand agnostic village locals as promoters, therefore allowing multi product awareness and not just one brand.

Multiple daily touch point ‘hits’ at the village.

Touch points were used for product data to be sent out to the village and ensured constant data feedback.

Multi-brand delivery options.

Flexible launch and marketing activity with an accelerated entry into the villages.

Seasonal product launches can be deployed instantly mirroring the local climatic conditions.

A soft and trusted sales method/process.

The ability to use the village on a daily basis to aid in the refinement of the product to then redeploy updated versions based on live immediate market insights (e.g., packaging, pricing and taste from the villages).

Health and family data collected by villages to allow targeted product placement.

In field R&D opportunities to test current ‘in-lab’ ideas ready for trial.

Supply chain management : We then redefined the supply chain to deliver direct distribution of products to local convenience stores and deployed tools to enable periodic measurement and analysis of sales and stock data.

Product promotion : We also launched several below-the-line (BTL) promotional strategies across select groups of villages and measured their impact via product intake and direct feedback from consumers.

Market research : In addition to operations in the two pre-selected states, a Strike Team with the capability to establish a pilot footprint in any part of the country was set up. This enabled primary research & feedback, concept product tests, and consumer immersion programs.

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RESULTS

The pilot program presented an innovative and efficient model that is scalable across rural India and created a unique position for the client:

Six-fold increase in product sales : Currently, there are several villages covered by this model and they have been reporting a six-fold increase over the initial target in one product category.

Increased market share and retail value to 40% : Local convenience stores have reported a two-fold increase in existing product sales, thereby increasing the client's market share and retail value to 40%. On new products, the stores reported 60% trial and 40% repeat sales which provided evidence of a strong commercial interest.

Effective customer feedback : The client also benefited from qualitative feedback as a result of direct consumer immersion from Sannam S4's R&D innovations and concepts.

ABOUT SANNAM S4

Sannam S4 helps international businesses enter, establish and prosper in India. Our business model is unique in that from the outset we proactively seek new revenue opportunities in the market for our clients and then we help them implement and manage these opportunities longer term.

We take clients from the initial stage where they are considering entering India and we then deliver business support services to help them grow, acting as a strong local service partner. Whether a company is seeking to generate new revenue, source products, or establish an outsourcing/ manufacturing unit, Sannam S4 provides the end to end support-in-house.

We also provide ongoing local business support to a number of organisations who have been in the market many years including business development activities, compliance and other business support services.

Our teams comprise of dedicated local and international specialists delivering market research, company structuring, compliance, finance, tax, accounting, inward investment, partner/distributor due diligence, business development, recruitment and HR support.

In India, Sannam S4 has offices in New Delhi, Mumbai, Chennai, Pune and Bangalore.

Sannam S4 also operates in Brazil, China and Indonesia.

E. consult@sannams4.com

LONDON

Tel: +44 (0) 203 3030025

LOS ANGELES

Tel: +1 (888) 860 2195

NEW DELHI

Tel: +91 (0) 11 4212 4100

www.sannams4.com