In-store Marketing In Rural IndiaA comprehensive report for Colgate

Report Organization

• Objective of study• About the Indian rural retail landscape• Store Environment• Typical destination stores

• Research Methodology• Interview & videos• A persona study • Purchase stages• Key takeaways

Objective of Study

Expansion of Colgate portfolio(toothpaste and toothbrush categories)

in Rural India specifically in Destination Stores

About the Indian rural landscape

Source : India Brand Equity Foundation(IBEF)

Number of villages: ~650,000

INDIA’S POPULATION INDIA’S GDP CONTRIBUTION

Rural India

Urban India

Rural India

Urban India

30%

70%

50%

50%

GDP 6.2% has grown at CAGR of in rural India

since 2000

Nielsen FMCG market predicts that the

in rural India will top US$ 100 billion

by 2025

OBSERVATION

IMPLICATION

RESEARCH FINDING 70-80% retailers struggle to communicate new arrivals

Product stocking in store is very disorganized

Shop keeper is unable to promote new products/ offers due to lack of space

Indirect call for re-organization of rural stores where Colgate can play a bigrole and can gain shop keeper’s loyalty; Colgate will also have first moveradvantage since other FMCGs have not done much branding

Recommendations

“...There should be some nice and good scheme for the

retailers like us Many small retailers like us have made

you a brand not the shopping malls. (...) In malls what

happens is a person goes and buys and then forgets

about it, but in here we have a relationship built with

the customers and we want that relationship to

continue so that they keep coming to our shop”

- Keshubhai DayaBhai Stores,

Madhya Pradesh, Retailer

Store Environment

Source : FD Instore Insights

LOYALTY INFLUENCER

BRAND INFLUENCER

PURCHASE FREQUENCY Around 60% of customers prefer shopping monthly

What we learnt at the store?

More than 90% shoppers in all 3 states identified the relationshipwith shop owner to be the chief reason for choosing one shop over another

Around 50% of shoppers in MP said that product availability was the keyfactor for loyalty while 34% identified quality of product as key influencer

Offers on price was stated as the main reason for choosing brands by87% people

Source : FD Instore Insights

What is a typical destination store?

Larger SKUs and premium brands/packs available

Location of the destination store is usually near localmandi/bus depot

A big store in the village or in cluster of villages

Destination Store will be feeder wholesaler or retailer or both

Various categories should be available with different brands Weekly/monthly purchases happen more

Larger footfalls

Research Methodology- overview (1/2)

DISCOVERY

Understanding researchobjectives and client context

Identifying ‘destinationstores’ in targeted regions

Preparing questionnaires tounderstand length andbreadth of rural Indian customerbehaviour...................................................Conducting field surveys

VALIDATION

Analyze reports of field surveys

Discussions with FD’s in-storeexperts

SYNTHESIS

Based on analysis, arrive atimplications for client

Discussions with FD’s in-storeexperts

OUTCOMES

Discussion of findings with client

REPORT DEVELOPMENT

Research Methodology- In detail (2/2)

SALIENT FEATURES OF OUR RESEARCH

Understand requirement –Learn what Colgate’s need for this research andwhat it plans to do with the collated data

Preparing questionnaire -Done keeping in mind the targeted demographyand the information needed that will give cleardata on Indian rural retail market

On-field surveysTravelling to ‘qualified destination stores’ andgathering information along with audio andvideo recording to use for later analysis

On-field surveysCollating the data obtained from the researchin a segmented fashion and understandingpatterns through cause and effect analysis andwith multiple brainstorming sessions with FD’s in-house experts

INDUCTIVE METHOD OF RESEARCH

Fieldobservations

PatternDeduction

Hypothesize Identify areaswhere Colgatecan help

1

2

3

4

Share suggestionsArrive at possible branding solutions for Colgatebased on research data, domain knowledge andexperience

5

24 SHOPS and 29 shoppersin 6 towns in MP

14 shops and 3 shoppers in16 towns in Maharashtra

UPCovered 7 towns in

Profile of surveyed shopsTOWNS TOWNS

Uttar Pradesh

Madhya Pradesh

Ahmedpur

Udgir

Devni

Nilanga

Ghatnandor

Parli-Monda

Savda

Nimbora

Raver

Amalner

Kapadane

Songir

Vaghadi

Fagane

Audhan

Mohadi

Hapur

Makhipur

Pilakhua

Khekra

Chandpur

Bagpat

Deoband

Mhow

Daloda

Namli

Rajgad

Sardarpur

Badnawar

STATE

Maharashtra

UttarPradesh

MadhyaPradesh

Maharashtra

4 teams covered 3states with 15 townsand nearby villages

Videos & photos(Interviews of shoppers & retailers)

Dhule – Mohadi – shopperof Gajanan provision

Beed – Parli – shopper ofSatish provision

• Proper list of monthly items th th

• Purchase pattern – between 28 to 30 of month

• Buys 2 Colgate

• Max Fresh 100gms (preferred by kids)

• Colgate strong teeth 100gms preferred by elders)

Retailer is the only Voice of Brand andhe has lot of time to discuss

Product offer announcedand pasted on counter

Dry fruits near casharea for promotion

Premium products behindcash counter for promotion

Visible white atpromotion area

Persona Study – shopper (end consumer)

• Goes to store once a month with a long list of requirements ( pre-decided monthly list)• In pre-decided list, he mentions products as well brand names with exact

weight• For daily needs, he goes to near by shops• Gets news on products and offers from television and from friends• Post seeing products on TV, he asks and consults with retailer for the same (when it is required)• During monthly shopping, he comes with shopping bags • Purchases are offer driven

Persona study of Retailer

• For product availability, Destination store retailer directly consults with company distributors• He keeps almost all category products with minimum 3-4 brands in each category with small & larger SKUs• He offers discounts to its loyal customers• He also offers free delivery system• He plays imp role in suggesting information regarding

any products• Purchases are margin driven

Destination store retailer

• Visits Destination stores twice/thrice a week

• Gets news on swift moving products from larger retailer

• Gets inputs on brands from bigger retailer and based on his customers’ requests

• Purchases are margin driven

Small retailer

OBSERVATION

IMPLICATION

RESEARCH FINDING 87% identified offers as the primary reason for choosing brands

Brand suggestions from shop owner next important influencer

Shopper spends 1-2 hours to purchase all his requirements; shopper focusesmore on offers than on product benefits

Recommendations

“...sometimes, when there are new products, the shop guy

tells us and then we go for it on his recommendation and

(sometimes we get the info) also on TV (after seeing we ask

him).”

- Tushar Jain, Namli Village,

Regular shopper

Purchase Influencers

Colgate should get the maximum mind share when the customer is in storeduring his monthly shopping

Source : FD Instore Insights

Key takeaways

• Creating identity for new arrival and premium products (with larger SKU’s) inside the store by understanding Store touch points.

• Educating shoppers and retailers about the premium products of Colgate with assortment (utilizing and engaging the free time of shoppers by educating Dental health care)

• In highly offer/discount/freebies oriented market, need to give benefits to shoppers and retailers both. – Ex- giving rewarding system for shoppers and retailers. Retailer plays an influencer role before any purchase.

• Creating new solution for brush category

Conclusion

• Large opportunity for Colgate to occupy premium space and be first mover in garnering visibility space in select rural destination/retailer.

• Opportunity to create an exclusive destination/retailer club for rural markets thereby setting up a system to influence the purchase influencer in this segment• Definite correlation exists in investing in BTL in these outlets and sales• Definite need in taking an education route in creating/increasing brand loyalty

Designs

Counter Top Display withutility – opt 1

• Slanting shape counter top display • Inside, given space to keep stock of toothbrush and toothpaste • Also given space to keep cash/coins which will be helpful to retailer. • Top slanting cover will be used to highlight messaging part.

• Changeable creative option is given here

Space to keepcash/coins which will be

helpful to retailer.

Counter Top Display withutility – opt 2

• Vertical shape counter top display

• Frontal side will be covered with transparent part

• From back side, it is accessible to retailer

• Given space to keep cash/coins which will be helpful to retailer.

• Top header slanting cover will be used to highlight messaging part.

Hanger /Wallmounted

Actual products willbe covered withtransparent paper toprevent from dust

Dummy packs

Flange

Size : 14” X 12”

One side Toothbrush andanother side Toothpaste

Thank You

For more details visitwww.fdindia.comContact:- 022 42328900/01

Fourth Dimension India Pvt Ltd :- 5B-71, Akshay Mittal Industrial Estate, Mittal Estate Andheri – Kurla Road, Andheri East, Mumbai 400059