Decision and Background:
Suresh Venkataraman, who desires to explore the rural market in the India, deciding to launch a product named Super Shampoo in order to obtain the attitude of non-users towards the category and brands. Referring to those consumers, most of them are from rural India related to households in the BoP structure. (Ex.1) He spends much time in searching the rural market in the India.
Recommendation and Basis:
Given the economics’ structure of rural India, most of them are rural households. So first of all, Venkataraman should position the fast moving consumer goods category (FMCG) into the rural Indian market. Shampoo is one of a personal care in the FMCG (Ex.2) categories. It’s essential to set a lower price on Super Shampoo related to those low-income consumers in the rural Indian market. Next, media trends play a critical role in the rural Indian market. Because of the unpopularity in TV in the rural India, other advertisements ought to make the rural Indian market active. For instance, radios and leaflets are good choice. But outdoor media can give more possibilities to the rural Indians when they are purchasing groceries outdoor. Certainly, crucial person also can give them exact advice on the product. They will imitate the important person in their mind and those products can be propagated widely in the rural Indian market. Then, rural Indian consumers please to select the quality and satisfaction towards products. Due to this, the quality of Super Shampoo must ranks ahead of others’ product, especially in the field of hair fall problem.
Assumptions and Uncertainties:
The assumption of FMCG can be implemented if the rural Indians put the personal care in the utmost position. But if they can earn more money to support their entertainment life, they may convert their appearance to the quality of leisure time, and it may be invalid in searching the FMCG (Ex.3). Additionally, some customers are accustomed to using those chronic brands of shampoo, so whether how influential propaganda he makes, the Super Shampoo can’t be rooted into consumers’ awareness. Given to competitors (Ex.4) in this field, we can’t guarantee they will do more marketing researching and hire top experts in developing products, so the competition exists in consumers’ choices of the quality and other measures.
Collecting the results of marketing survey, Venkataraman should find out how they operate their Shampoo industry and what the advantages in using clarifying shampoos (Ex.5&6), and then hiring a few staffs that must have some experience on marketing management and researching those Shampoos. Next, contacting those ads agency and he should exert leaflets and website to attract customs. In order to build mass market in the India, he and his partners need to show the differences between the shampoo, especially their Super Shampoo and other products in daily use, such as the soap. Persuading those consumers who think that shampoos are only used in special occasions, namely enlarging the popularity of the shampoos is a vital point in his advertisements. Exhibit 1
Bottom of the pyramid structure (BoP):
In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In global terms, this is the 4 billion people who live on less than US$2.50 per day. The phrase “bottom of the pyramid” is used in particular by people developing new models of doing business that deliberately target that demographic, often using new technology. This field is also often referred to as the “Base of the Pyramid” or just the “BoP”.
Source: “From Wikipedia, the free encyclopedia” defining of the “Bottom of the pyramid structure.”
Source: “U.N.World Development Reports.”
Fast Moving Consumer Goods (FMCG):
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they are generally sold in large quantities, and so the cumulative profit on such products can be substantial.
Global leaders in the FMCG segment include Anheuser-Busch InBev, Mars Inc., Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, L’Oréal, Coca-Cola, Carlsberg, Kleenex, General Mills Inc., Pepsi, Mondelez International, and Kraft Foods. Source: “From Wikipedia, the free encyclopedia” defining of the “Fast-moving consumer goods.”
Growth Prospects of FMCG in Rural India:
It is expected that the rural income will rise in future, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.
Source: “www.MBARendezvous.com” on FMCG.
Indian Competitiveness and Comparison with the World Markets: The following factors make India a competitive player in FMCG sector: Availability of raw materials
Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits & vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison
Low cost labor gives India a competitive advantage. India’s labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC’s have established their plants in India to outsource for domestic and export markets. Presence across value chain
Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.
Source: “www.MBARendezvous.com” on FMCG.
What to Do Next After Collecting Surveys in a Marketing Plan: The first step: Tabulate Surveys
The second step: Analyzing Survey Data
The third step: Writing the Report
The fourth step: Presenting your Survey Findings:
Sources: “www.ehow.com” on What to Do Next After Collecting Surveys in a Marketing Plan.
Benefits on clarifying shampoos:
Benefits to using a clarifying shampoo one or twice a week is beneficial to those who use hair products daily for styling, wash their hair in hard water, and to remove odors including cigarette smoke. Athletes, such as swimmers, also benefit from clarifying shampoos by having chlorine build up cleaned from the hair.
People who work outside or in positions where the hair is exposed to dirt, grime, chemicals, minerals or pollutants can have shiny, healthy, clean hair by using a clarifying shampoo.
Clarifying shampoos come in a variety of fragrances with added oils that remove excess oil from the hair and scalp. Clarifying shampoos are packaged in liquid or foam form to provide good lather for cleansing, clarifying, and adding volume to the hair.
Source: “www.life123.com” on Clarifying Shampoo Benefits.