Rural Marketing Narrative Essay Example

cleaning their hair. The text also states that brand loyalties in shampoo are not very strong, as consumers frequently look for a change, particularly in fragrance. Consumers associate lathering with the act of cleaning and have certain expectations from hair care products, including reinforcement in texture and manageability, softness, and bounce. Non-Indian consumers require more shampoo for a proper wash compared to Indian consumers, as most Indian women have long hair. Furthermore, it is mentioned that most consumers do not use shampoo daily and regular users would need a smaller quantity of shampoo per bath.

Hair tends to collect more dust due to dusty environments and individuals' oiling habits. The Southern market is predominantly a sachet market, accounting for 70% of sachet volumes. On the other hand, shampoo bottles are more popular in the Northern markets. Approximately 50% of teashop bottles are sold in the Northern region alone. In the North, local brands like Reweave have strong equities and their low priced products dilute the sachet's USP of low price.

The size of the shampoo market in India is 930 crore. Anti-dandruff shampoo accounts for 20% of this market. Sachet sales make up 70% of the overall market. Shampoo awareness in exurban areas in India is at 90%, accounting for 80% of shampoo sold in the country. The per capita consumption of shampoo in rural areas of India is 13ml, while in Indonesia it is 160ml and in Thailand it is 330ml.

Shampoo penetration in India is at 14% overall, with urban areas at a higher rate than rural areas. The average growth rate of the shampoo market over the past few years has been over 20%,

and it is expected to grow at a rate of 25% in the next few years. The DAD segment is the fastest growing segment, with an annual growth rate of 10-12%. OH &S (presumably another segment) is growing at a rate of 15-20% every year.

The evolution of shampoo in India has seen several milestones: HALL was the undisputed leader from the early ass's, Sunlit launched in 1964 as a general shampoo platform, Clinic Plus launched in 1971 as a family health shampoo platform, and Clinic All Clear launched in 1987 as a therapeutic AD shampoo.

Sunlit was relaunched in 1987 with a new product called Shampoo + Conditioner (Beauty platform) in a sachet format with SKU 6. HALL introduced Sachet Clinic Active in 1991, featuring Pro Vitamin B and targeting rural areas. Sunlit underwent repositioning and relaunching in 1994, introducing the Nutcracker line with different variants for specific hair types (pink for dry hair, yellow for normal hair, green for oily hair, and black for long hair). With the entry of competition, such as POP &G's arrival in India in November 1995 with the globally acclaimed brand Pentane Colgate Palmolive's launch of Optima, and Naira Shampoo facing challenges due to having the same name as a detergent and soap brand, the shampoo market experienced a boom in India. The per capita consumption of shampoo reached Rs. 350 during the mid-1997. In this market, the AD segment accounted for a 20% market share. POP &G launched its internationally renowned A &D shampoo H &S in 1997 using a unique anti-microbial agent called Concentrating (ZIP).The text discusses various aspects of the shampoo market in India. It mentions that

there are two variants of shampoo - regular and menthol. Sachet sales account for 40% of all shampoo consumption in the country. The dominant brands in the market are HALL, including their extensions Iconic, Sunlit, Organics, and Lax. In 1998, the company re-launched Clinic and Sunlit brands, while Councils was re-launched with Frustration. Currently, HALL holds a 63% market share in the shampoo market. The top shampoo brands include Normal Shampoos colonic Plus, Councils chock, Arboreal Shampoos Cayuse daub Batik only, and Anti Dandruff Shampoos colonic All Clear ahead and Shoulders daub Batik AD Premium Products Shoshone Hussein revolve Flex L'Oreal.

The text also mentions that while toilet soaps have reached saturation, there is immense potential for the penetration of shampoos into Indian households. According to NCAR (National Council of Applied Economic Research), shampoo penetration is expected to grow from 314 thoughtlessness's in 1998-99 to 502 per housing households in 2006-07. Ad budgets for shampoos are on the rise due to competition in the market, low penetration levels, high potential, and untapped rural markets.

The text provides a brief company profile as well. In 1983, a partnership firm called Chic India started with a single product - Caviar. In 1990, it was renamed Beauty Cosmetics and then renamed again in 1998 as Caviar Pet. Ltd (CAP). The name Caviar is derived from the Tamil word for beauty, and it also represents the initials of the founder, Mr. C.K. Reanimating.Reanimating is a company that offers high-quality Personal Care (hair care, skin care, home care) and Food products. Previously relying on contract manufacturing, the company has now established its own top-notch plant at Harridan to meet both domestic and

international demand. With 576 employees, Reanimating has a nationwide network of 1300 Stockiest serving numerous outlets across the country. In 2006-2007, the company achieved a turnover of over 5000 million INNER.

The product range includes Personal Care items such as O'Hara Care (including chock shampoo and Herbal Shampoo), Ethnic Care (including emperor Hair Wash Powder and Karakas Hair Wash Powder), and Costs care (including forever spine Talc and spine Deodorants). Additionally, Food Division offers ruche Pickles, zucchini's Pickles, Miasmal zucchini's Vermicelli, ruche Gulag, and Cajun Mix.

In terms of competition, major competitors in the market include DULL Daub, Malaysia health care, and Colgate-Palmolive. Chock shampoo holds a 21.4% market share in the RSI 12 billion shampoo market, making it the second largest selling shampoo. Nile, another brand of Reanimating, has a 4.6% market share. In the fairness cream market worth RSI 7.0 billion, Lot has a 9% market share with their brand. Tethers like Emmer hair wash and Nile moisturizing lotion have national shares of 23% and 4.2% respectively. Particularly in rural Attar Pradesh and Andorra Pradesh, these brands are the most popular.The company, Covariance, has six major brands namely Fairer, Chic, Nile, Emmer, Indict, and Spins. Among these brands, the shampoo brands (Chic and Nile) contribute 50% to the company's turnover while the Fairer cream contributes 30%. The remaining percentage comes from Spins (deodorant, perfume), Indict hair dye, and other products.

Covariance's marketing strategy revolves around associating with like-minded individuals who prioritize quality. They have a robust system for quality monitoring and set ground rules for manufacturers to maintain their standards. Outsourcing is an integral part of Covariance's corporate strategy. The company aims to understand

the fears, aspirations, and needs of rural consumers through effective communication.

Research and development, branding, and distribution management are considered core competencies for Covariance. Chock Shampoo differentiates itself by using French perfume. In terms of promotions, the company is leveraging the lessons learned from its shampoo experience. The Chinning pickles are available in single-use sachets priced between Re 1 to Rs 3, as well as affordable upright pouches. This strategy acknowledges that the market is saturated with local pickle brands, making it challenging for consumers to find value in upgrading to a branded product.Single-serve packaging has expanded into institutional sales, and Covariance is hoping that the low price and convenience of sachets will attract hotel and restaurant bulk customers. In addition, Covariance has introduced single-use sachets for its Spins Signing perfumes, priced at 1.50 each for preadolescents. Covariance Pet Ltd also operates mobile beauty parlors, targeting girls' colleges, market places, and residential areas. The mobile parlors provide a comprehensive brand experience by having hairstylists use Chic on volunteers and distributing Re 1 sachets as samples. Covariance has successfully competed with market leaders such as HALL, P&G, Godard, and Hinkle with its successful brands Chic, Nile, Emmer, Fairer, and Spins. The company was responsible for revolutionizing small sachet packaging in India. This insight into marketing to rural India played a significant role, leading to C.K. Reanimating being named the Marketing Professional of the Year at the thaliana Brand Summit-2003. The awards recognized his leadership excellence and pioneering efforts in sachet packing and mainstreaming in rural areas. Prior to Covariance's entry into rural South India, people used to wash their hair using Owen Caviar.Owen launched the 'Chic brand

of shampoo', educating people through live touch and feel demonstrations and distributing free sachets at fairs. This strategy proved successful in rural areas of Tamil-Nadia and Andorra Pradesh.

The success of the sachet changed the shampoo industry by making it accessible and affordable. Now, even consumers from rural markets could afford shampoos, and the association with upper class faded. This led to a cutthroat market where trade greatly influenced consumer choices. The idea for Chic Shampoo came to Mr. Ringmaster's father when Epsom salt came at a high price. They wanted people like rickshaw pullers to use their products, but due to a lack of marketing strategies, they struggled to promote the concept effectively. After the father's death, they renamed it as Chic Shampoo. The target audience for Chic Shampoo includes lower middle-class individuals with a monthly household income of RSI. 1500 - RSI. 3000 in the age group of 16+ years, including girls and women from rural and semi-urban areas of India. In terms of overall shampoo market share, Chic holds 50%, followed by P&G brands with 19% (Pentane, Rejoice, Head and Shoulders), and others with 16%. The communication strategy employed by Chic discovered that people saw soap usage as a barrier to using shampoo.The company's intention was to convey to consumers that using soap on hair was detrimental and that a product specifically designed for hair, such as shampoo, should be used instead. Eventually, customers agreed that using shampoo resulted in soft and silky hair. In order to establish a local and regional presence, TOT advertised in local print and television media, surpassing national brands. They increased their advertising efforts and hired

competent professionals to compete with the competition. The "The iconic Chic Girl in every Chic Shampoo" commercial showcased the potential for soft and manageable hair for customers. To conquer the rural market, they targeted rural areas in South India where shampoo usage was minimal. They demonstrated how to use the product through live demonstrations on a young boy, allowing the audience to feel and smell his hair. Furthermore, they organized Chic Shampoo-sponsored shows featuring Rationale's films, airing their advertisements along with live demonstrations. They also distributed free sachets of Chic Shampoo to the audience after these shows. This strategy yielded remarkable results in rural Tamil Nadu and Andhra Pradesh. Following each show, shampoo sales increased three to four times. The company modified their marketing approach by offering one free Chic Shampoo sachet instead of lesser effective shampoo sachets. They sold shampoo in 50 paisa sachets while other competing brands were charging INR 2 per sachet. These affordable price points helped penetrate deep into rural areas.The demand for Chic sachets grew rapidly, resulting in an increase in sales from RSI 35,000 to RSI 12 lack (RSI 1.2 million) per month. In terms of distribution strategy, instead of following the conventional route, the company implemented a 'sachet' sales approach exclusively targeting small retailers like cigarette and pan shops. Additionally, a separate distribution channel for hawkers was established across various cities with an existing distribution network. Covariance's personal products division also took advantage of post offices to distribute products such as khaki powder, shampoo, and hair dye. By utilizing these alternative channels, the company aimed to expand product accessibility and reach new customers. However, it is not expected

that this unconventional route will become a significant revenue generator in the future. Aside from that, Covariance has expanded its network beyond South India and now has offices in Achaean, Benedictory, New Delhi, Iambi, and Kola. These offices work in conjunction with stockiest to supply products to six lack outlets.