Rural Hardcopy

8/7/2019 Rural Hardcopy

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Radio

Battery

Torch

Project done by Group no 1

Bhavika Jain 03

Nikita Desai 13

Priyanka Kale 23

Bhagyashree Lokhande 29

Jidnyasa Malvankar 32

Nisha Tawde 53

KC College, SYBMS 4TH

SEMESTER

RURAL MARKETING MIX


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In u n f

Our Lighting sector is dedicated in introducing innovative products related totorches and applications for lighting, based on a thorough understanding of the

customer needs.Philips Lighting is a leading provider of solutions and applications for both

professional and consumer markets.

We address lighting needs in a full range of environments indoors (homes, shops,offices, schools, hotels, factories, and hospitals) as well as outdoors (public places,residential areas and sports arenas). We also meet peoples needs on the road, by

providing safe lighting in the way of torch.

In addition, we deliver light-inspired experiences through architectural and citybeautification projects.

With the new lighting technologies, such as LED technology, and the increasingdemand for energy efficient solutions, Philips will continue shaping the future withgroundbreaking new lighting applications.


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Energy Saving Lighting

Philips took another step in further leveraging its recently acquired consumer

luminaires business by introducing the energy-saving consumer-luminaire

Ecomoods range in Europe and Asia.

PHILIPS TORCHES PRODUCT STRATEGY

The Luxeon (LED) offers 140% more light than a standard bulb:

A Light Emitting Diode (LED) is a special type of semiconductor diode creating an

effect of electroluminescence and provides 140% more light output than a standard

bulb.

Innovative LED technology with extremely long operating life:

A Light Emitting Diode (LED) is an energy efficient improved lighting

technology.

LED with 100,000 hour life makes replacement unnecessary:

Light source replacement is unnecessary due to extremely long LED life.


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EASE OF USE OF Philips TORCH

Turn the torch's head to make the beam narrower or widerThe beam can be adjusted to focus on a smaller detail or a wider area by

turning the torch's head.

Shock resistant housing withstands damage caused by shocksA special shock resistant plastic or rubber housing prevents damage to your

torch caused by shocks.

Rubber housing protects torch from splashing waterRubber sealing rings and housing prevent water causing damage to the torch

and allow you to use it in all weather conditions.

Nylon strap prevents you from losing your torch

This strap makes the torch easy to carry around and prevents it from falling if it

accidentally slips out of your hand


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Price strategy

y AffordabilityThe challenge is to ensure affordability of the product or service in the rural

areas.

y Small unit packs:With low disposable incomes, products need to be affordable to the rural

consumer, most of whom are on daily wages. Our company have addressed the

affordability problem by introducing small unit packs.

y Price according to the unit:The Philips company differ their prices according to the units. The torches rangesfrom 200 and on

The main objective while framing the price strategy and the units is that the prices

should be at an affordable prices to the rural people.

y Discounts:Discounts such as if a consumer buys a torch he may get extra benefit such as extra

battery n a charger etc.


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Introduction of Battery

Eveready industries india ltd is one of the leading FMCG companies. Eveready

posseses expertise in marketing, manufacturing and distributing a diverse range of

products to the entire length & breadth of the country. Its portfolio comprises of

dry cell batteries, rechargable batteries, flashlights, packet tea, mosquito repellents

and lighting batteries, products. Its market share in batteries is 51.1 per cent and in

flashlights about 76 per cent (Industry) segment. Its market share ranges between

27 per cent in the various regions where the products have been launched. Its

share in the mosquito repellent market varies between 1-3 per cent in the various

target markets. It has recently commenced marketing of lighting products like CFL

&GLS lamps. It has a complete range of flashlightsLED, plastics, aluminium &

brass. Battery and flashlight products are branded as Eveready Powercell,

Shakti and Mahashakti. Packet tea products are branded Tez, Premium Gold,

Jaago and Classic. Mosquito Coils are branded Eveready PowerOn.

Product

Eveready did not lack innovation and product improvement either. Union Carbide

was the company who first introduced the alkaline battery, the type of battery

which is most in use today. These batteries were durable, long lasting, and

inexpensive when compared to Evereadys Zinc Carbon batteries.

It was only natural that Union Carbide would brand their new alkaline batteries

with the brand name Eveready. It was a trusted brand. In fact it was the market

leader. Considering that consumers trusted the brand why wouldnt they buy

Eveready Alkaline Batteries? Eveready expected itself to hold the market leader

position for years to come. Unfortunately this didnt happen.


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Eveready realized their mistake and launched their alkaline batteries under the

name of Energizer, but only in the nineteen eighties. Their incredible icon, the

Energizer Bunny (considered one of the best marketing icons of 20th century), did

its job well enough for Energizer alkaline batteries to become a hit. But not enough

of a hit to be the market leader. To this day Duracell holds the number one

position. Energizer has to be contented with the no 2 slot.

Eveready failed to capture the market leader position just because they failed to see

the promise of the new battery in time and trusted their brand name too much.

Yet, much must be said for both their marketing campaign and the Energizer brand

that it managed to become the second most trusted battery, despite the level of

standardization that the field was subjected to.


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Promotion

In 90s Eveready launched its memorable GIVE ME RED. One of the mostmemorable campaign run in Indian media. Also launched during the event was

their latest promotion, Ready-to-Switch, Eveready now accepts old or brokenflashlights from the public to turnover it in selected booths in Handyman, TrueValue, Ace Hardware and Hardware Workshop(Ace Express) for discounts inlatest flashlight models like the Eveready LED flashlights.

There was also recognition of the of the services from different departments ofArmed Forces, the Police, Red Cross, etc.


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Place

Eveready has a wide distribution network all over the India with 15 branches, 40

godowns and 4,000 distributors. Their products are available at grocery, general

stores, stationery, novelty stores, small shops & at the chemists shops etc

When it comes to batteries, Eveready is always a popular brand and is almostgeneric. Who would have thought that Eveready is already 110 years in existence

in rural areas. Transportation is mainly by trucks & bullock carts.

Eveready kicks-off the year-long celebration coinciding with our nation'sIndependence Day festivities at SM Mall of Asia Music Hall. In addition to thefestivities, Eveready sponsored the free jeepney rides in designated areas duringthe day.


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Price

EIIL knows that price-sensitive Indian consumers continues to prefer using the

low-priced dry cell batteries so the minimum cost is Rs5 then it vary from product

to product

Eveready came with a product paanch ka dum which was famous in rural areasand Consumers began associating the cheaper, less durable zinc carbon batteries

with Eveready and the better, long lasting alkaline batteries of eveready.

Future plans & objectives

y To consolidate our benchmark supplier position in all traditional outlets forbatteries and flashlights.

yEmploy a systematic and scientific approach towards increasing our reachand quality of reach.

y To leverage our sales & distribution competencies into identified newerchannels

y To constantly explore new selling arrangements in identified markets toimprove effectiveness of servicing


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Introduction of Radio

Philips: Koninklijke Philips Electronics N.V. (Royal Philips ElectronicsInc.),most commonly known as Philips, is a multinational Dutch electronics

corporation.

Philips is one of the largest electronics companies in the world. In 2010, its saleswere 25.42 billion. The company employs 119,000 people in more than 60countries.

On 11 March 1927 Philips went on the air with shortwave radio station PCJJ (laterPCJ) which was joined in 1929 by sister station PHI. PHI broadcast in Dutch to theDutch East Indies (now Indonesia) while PCJJ broadcast in English, Spanish andGerman to the rest of the world.

The international program on Sundays commenced in 1928 with host Eddie Startzhosting the Happy Station show which became the world's longest running

shortwave program.

Broadcasts from the Netherlands were interrupted by the German invasion in May1940. The transmitters in Huizen were commandeered by the Germans and usedfor pro-Nazi broadcasts, some originating from Germany, others concerts fromDutch broadcasters under German control.

Philips Radio did not resume after Liberation. Instead the two shortwave stationswere nationalized and became Radio Netherlands Worldwide, the DutchInternational Service in 1946 though PCJ programs such as Happy Stationcontinued on the new station.

Videocon: Videocon knows the pros of consumer electronics manufacturing. The

Indian conglomerate produces a variety of electronics, home appliances, and

compressor products including colorT

Vs, washing machines, air conditioners,refrigerators, radios and microwave ovens. In addition to electronics, Videocon is

active in the oil and gas sector, producing some 50,000 barrels of oil a day from its

Ravva field, as well as in non-life insurance through a joint venture with Liberty

Mutual. The company got its start in 1979.


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MARKETING STRATEGY FORRADIO IN RURAL INDIA

Pricing strategy:

Of Philips: In a bid to trigger brand penetration in the rural markets for the audio

segment, the Rs 1666 crore Philips India is in the process of making a full fledged

roll out of a new range of battery free, radio across the nation. It runs on a small,

dynamo that has to charged by winding a key.

This arrives as a strategic imperative for the audio video major, to unveil freepower and battery less radios in the Indian market priced at Rs 995, According to

Philips India senior vice president (consumer electronics), Mr. Rajeev Karwal;

Philips battery-less radio will enable consumers to save Rs 1200 a year, which hewould otherwise have spent on batteries

As regards the pricing strategies, says Mr. Karwal; Also from a price angle,consumers felt that the product should be available at sub 1,000 price and furthergo down over a period of time. Hence we decided to price it at Rs 995. Accordingto Mr.Suresh Sukumaran, senior general manager, marketing, there is still 55 percent of rural household who can be the potential audience for radio. This is thecore consumer base the company would pro-actively target with integrated

marketing strategies to accelerate the product mobility.

Says Mr.Sukumaran; This is a mass market brand with a primary focus on the ruralaudience. Concessional pricing will therefore become the lead strategy forconsolidating a brand presence in the rural market.

To start with, Philips India Ltd, which is a market leader in the segment, increasedits physical reach, and, doubled its distribution network for Philips radios by

penetrating further in the rural market, in the year 2004.

OF VIDEOCON: Videocon has always been a price player and has an image of a

low price brand. This entails providing more features at a given price vis--vis

competitors.


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Distribution strategy:

Of Philips: The Company has launched the new radio at all its distributors meet atJaipur and will continue to showcase the product in all other launches during the

year.T

he objective of the launch through the trade, the company believes is toconvince its distributors that the company has a winner in its hand and focus on thepower-free radio.

As part of its distribution strategy, Mr. Khera informed that in order to widen itsdistribution reach for VCD systems with built-in FM, Sansui Ltd is now planningto focus on district wise distributor to focus on the rural market. As part of the

strategy, each state will have atleast 25 to 30 distributors. These distributors willthen have an independent 25 to 30 counters under their belt in each state.

At present, of the existing 6,000 dealers through which Sansui currently markets itsCTVs, VCD and DVD players with built-in FM, 35 per cent of the dealers cater tothe rural segment,

Of videocon: It has the widest distribution network in India with more than 5000dealers in the major cities. It also has a strong base in the semi-urban and ruralmarkets.

Product strategy:

Of Philips: Explains Mr. Karwal; Philips as a market leader in audio segmentneeds to drive the business and pioneer new concepts to grow the business and alsofor consumers to see the innovation and authority in the brand as far as audio

products are concerned. With the burst of FM radio stations, we believe the usageof radio in a day is bound to increase. In a product like this with no recurring coston batteries, consumers are bound to see value and novelty.

Says Mr. Karwal;In smaller markets given the erratic electric supply and the costof batteries, we feel that there is an inherent need and benefit which this product

delivers and hence makes their lives better. And the value conscious Indian middleclass will definitely see the advantages of this product.

Of videocon: It has at present multiple brands at the same price point. This has ledto a state of diffused positioning for its brands. It has also led to a cannibalizationof sales among these brands.


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Promotion strategy:

Of Philips: According to Mr.Rupam Ganguly, general manager, trade andconsumer services, the company launched a new campaign targeted at both thesemi urban and rural consumers with the catch line;chavi gumao, radio bajao, inselect states by mid-Feb 2002. The key message at to launch stage would beworlds first battery free radio.

As a direct consumer communication initiative, the company therefore is expectedto also unravel certain on-ground promotional initiatives.

As part of its marketing strategy, the company will participate in local melas, local

events, all India radio jingles, and, wall paintings.

Although this is part of Philips long-term strategy to promote its radios in the rural

market, the short-term marketing tactics is also to cash in on the India-Pakistan

Cricket Series which will enable a huge number of rural population to view and

listen to the Cricket Series.

Of videocon: Puppetry, dance-dramas, rural specific art forms like Harikatha and

Villupatu preformed at village melas and temple festivals. Study classes. Mike

announcements, processions. Caparisoned elephants, decorated bullock carts

carrying ad panels, house to house campaigns by special promotion Squads. Hoats

and Melas. Information centres on companys product.


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The New Tunes of Competition in

Radio Marketing

(Conclusion)

Competition seems to be hotting up in the radio

marketing segment, in 2004. This will mainly be on the back of two factors: One,

companies planning to strongly focus at the rural market in order to promote their

radios. And, secondly, through the frequency modular (FM) boom. As part of the

strategy, industry experts too feel that since radios are considered to be the rural

markets window to the world, its the peak time for companies to implement new

strategies.

. Philips India will manufacture and market one lakh units of its free power radios

per annum. In the year 2002, Philips India sold over one lakh units of FM radiosper month.

In 2002, Philips sales turnover was around Rs 45 crore in radios and we wanted tomove to Rs 60 crore by 2003-end.

In radios, Philips India says it has a value market share of 58.3 per cent in

November 2001, and has grown at 13.6 per cent over November 2000. However, inthe radio segment, Philips competitors such as BPL, Videocon made an entry buthas lost interest in the segment as volumes are the key here. The Videocon grouphas an annual turnover ofUS$ 2 billion, making it one of the largest consumerelectronic and home appliance companies in India.


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Acknowledgement

We would sincerely like to thank our Rural MarketingMam for giving us such an important and relevant topic for our

project.

We learnt a lot about very important topic of rural

marketing mix & their various strategies used by different

companies

This project gave us lot of Knowledge and once again we

are very much thankful to her.

Bibliography

www.google.com

www.philips.com

www.eveready.com

www.videocon.com

www.wikipedia.com

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