Rural marketing

Summary -----::
Channai-based group is a maverick
marketer that got its product and marketing mix just right
the company success is reminiscent of Nirma’s in the
west company having there great income from south
side of country. Its ayurvedic soap medimix rose
meteorically from Rs.65crore four years ago to
Rs.225crore in 2003.
The soaps are made manually , without the use of power
even the bars are cut into cakes with hand-operated
hydraulic cutters. However, the company plans to set up
a state-of-the-art unit in Goa that that will make 1,000
cases per month and it plans to establish a supply chain
to serve the northern market.
Medimix is a story of a home-grown product. Everything-
from idea to research to manufacture, packaging,
distribution and marketing-was done by a family
proprietary, the company managed to develop a brand on
its own terms. It all started with Dr. V.P.S. Sidhan ,who
focused on finding cures through ayurveda.
So Medimix soap was born. Sidhan’s soap was made with
18 herbs in a coconut oil base in the back ard of his
Chnnai Choolamedu house. In 1969 , Sidhan launched
Medimix as total skin care ayurvedic soap with just Rs
500 as seed capital and a fraternity of chemists.
Recently, the company increased its advertisement
expenditure, both in urban andrural markets. In the urban
markets, it is targeting youth by promoting its products
on MTV and hoardings in strategic locating in all metro
cities. It is playing the herbal game by positioning its
products on the nature and health platform. Company
want to increase its penetration of rural product.
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Facts and figures ----::

i } Ayurvedic soap medimix
rose meteorically from Rs.65crore four year ago to
Rs.225crore in 2003.
ii } Medimix got an ORG rating of nine among soap
categories on a national basis with minimal
advertisement
iii } The group’s six plants make 1.5crore 75mg cakes of
soap, and
30lakh cakes of 125gm which is very good and healthy
income for company.
iv } Medimix soap was born with 18 herbs in a coconut
oil.
v } medimix launched ayurvedic soap with just Rs.500 as
seed capital and a fraternity of chemists.
vi } soap was priced at 85 paise at the time of launch and
today sell for Rs. 9.50.
vii } According to the July-September 2001 ORG figures of
volume in tonnes of the top 25 brands of soap on a
national basis. Medimix at 2625.3 tonnes is way above
Mysore Sandal, Margo, Nirma, Jai, Cinthol Fresh, Pears,
Lux International skin care, Liril and Dettol. In the south
zone alone it is the sixth-highest seller with 1,873 tonnes.

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History ----::

Cholayil is one of the most famous and respected

Ayurvedic families of Kerala, which has been practicing
Ayurveda, the ultimate holistic health care system for
many generations. It was Dr.V.P.Sidhan, who successfully
converted this traditional wisdom of the Cholayil family
found in ancient palm leaf manuscripts with a
combination of modern enrichment to give birth to a
unique soap, Medimix that is the flagship brand of
Cholayil. it happens to be the world’s largest selling
ayurvedic soap. The ayurvedic variant is made from 18
different herbs. It is highly effective for skin problems and
is available in 3 varieties - the classic Medimix, Medimix
with Glycerine and Medimix with Sandal.
The Cholayil logo derives its origins from the lotus form,
the quintessential padma, in full bloom, rising from the
waters of life.
The lotus symbolizes purity and the attainment of
wholeness. It is identified with the epitome of creation,
the womb. One of the richest and the most evocative of
Buddhist symbols, the lotus also signifies the emergence
of purity from the primeval waters of creation. Cholayil

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creates products that are of the purest form, binding the

native elements into the most contemporary forms to
deliver products that are essentially pure, naturally
inclusive, traditionally rich and ideal for today. Ayurvedic
Bath SoapMedimix Ayurvedic Bath Soap was launched in
the year 1969 with eighteen powerful Ayurvedic herbal
ingredients not only to fight and cure skin disorders but
also to maintain healthy and glowing skin at an affordable
price. Started with a meager capital, Cholayil has
registered an impressive growth of over twenty times its
turnover from what it was ten years ago, to become a
player to reckon with in the Indian FMCG industry.
Cholayil came into existence over three decades ago with
a global vision rooted in Indian values. Cholayil aimed to
touch everyone's life with a range of quality products that
enhance the quality of life. Cholayil has business interests
in Toiletries, Personal Care and Health Care.

Product Information Discover freedom from

pimples, body odour and skin infections…. with the
goodness of the world’s largest selling Ayurvedic Soap.A
traditionally hand made soap with a time tested and
unique formulation that combines the goodness of 18
herbs, Medimix is clinically proven to act effectively on
many kinds of skin problems. The flagship brand of the
Cholayil group, Medimix is your complete hair-to-toe-care
solution.Hide no more. Seek your freedom with Medimix,
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now in an all new look.Available in 125gm, 75gm, 45gm,

18gm

Introducing the New Medimix Transparent

Green bar with natural fresh fragrance and superior
lather, effective for dry skin.Medimix for dry skin contains
a unique combination of purest and finest grade
vegetable Glycerine and the time tested Ayurvedic
formulation of Lakshadi oil. These effectively Moisturizes
dry skin making it soft and supple and helps reduce
itches and cracks caused by dryness . It is also effective
for people with dry skin and for dryness caused by winter
and adverse seasons.A traditionally Hand Made Ayurvedic
soap to effectively prevent dryness of skin.Available in
select outlets only.Available in 125gm, 75gm,

Introducing New Medimix with Sandal and

Eladi oils, effective for skin blemishes. Contains a unique
combination of Sandal oil and the time tested Ayurvedic
formulation of Eladi oil.Works effectively on blemishes,
dark spots and other pigmentation marks leaving you
with clear, blemish-free skin.This unique combination of
ingredients also helps keep your skin fresh and
glowing.Luxurious sandal bar with rich fragrance and

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lather. Traditionally hand made.Available in select outlets

only.Available in 125gm, 75gm,

Current market data ----::

The venerable Medimix soap has been launched in a new
packaging after 36 years. The company has made the
changes in order to increase the soap's appeal to the
younger generation and also to make it amenable to
variants and extensions.In essence, the changes are
peripheral and the company has not altered the
ingredients or its fragrance. The new pack contains
information about the ingredients and its clinically-proven
benefits, information that the new consumer does not
gather from the old pack. The company said that
research revealed that consumers wanted a change even
in a traditional, ayurvedic soap. In addition the packaging
had alienated the younger generation of consumers who
did not want to be seen using the soap even though it
was convinced of its efficacy. Lux, Lifebuoy, Godrej No 1,
Breeze and Nirma are the top five brands in the country
that command 51-per cent market share. Medimix sells
more in the South and the West.
Cholayil came into existence over three decades ago with
a global vision rooted in Indian values. Cholayil aimed to
touch everyone's life with a range of quality products that
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enhance the quality of life. Cholayil has business interests

in Toiletries, Personal Care and Health Care.
Cholayil comprises of : Cholayil Pvt. Ltd. Manufacturer of
quality products using indigenously developed processes,
engineering designs, tools and machinery. The company
makes Soaps, Talcum Powder and Pharmaceutical
Products under successful brands like Medimix and
Cuticura. Dorcas Market Makers Pvt. Ltd. DMMPL is
the marketing arm of Cholayil with a full-fledged team to
market all Cholayil brands all over the world. DMMPL has
exclusive divisions to cater to the diverse needs of
international and institutional needs.Commitment to
deliver quality products that surpass the expectations of
the consumers and adherence to business ethics has
earned a name for Cholayil and propelled it to become
one of the leading FMCG companies in the country.
Cholayil Ayurvedic Health and Research Academy
Formerly Sowparnika Ayurvedic Foundation for Research,
Health and Education (SAFRHON) renamed as Cholayil
Ayurvedic Health and Research Academy Cholayil
Academy (formerly Sowparnika Ayurvedic Foundation for
Research, Health and Education) was born with the sole
aim to develop and provide a better quality of life through
Ayurveda. Main objectives of the Foundation is the
propagation of the basic principles of Ayurveda to the
whole world, to encourage the younger generation to
study and practice Ayurveda, the science of life, to give
impetus to research activities in the field of Ayurvedic
medicine, to conduct seminars and conferences for the
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benefit of the practitioners, students and researchers of

Ayurveda, to bring modern scientific techniques in all
possible fields of Ayurveda and to provide free medical
treatment to the downtrodden through medical
camps.Cholayil Medicinal Plant Conservation Park
Situated near Uthukottai in Chennai is the Cholayil Herbal
Garden, a 120-acre well-developed farm having plain
forestland on one side and a 50-acre water reservoir on
the other. Apart from orchids and ornamental plants,
Cholayil Herbal Garden houses hundreds of medicinal
plant species.The Cholayil Medicinal Plant Conservation
Park, houses rare and endangered medicinal plant
species that are preserved and reared under controlled
conditions in the green houses with a view to study their
growth pattern for mass propagation. Apart from
hundreds of medicinal plant species, Cholayil Herbal
Garden also houses orchids and ornamental plants.
SWOT Analysis ---::
 Strengths: attributes of the person or company that
are helpful to achieving the objective.
 Weaknesses: attributes of the person or company
that are harmful to achieving the objective.
 Opportunities: external conditions that are helpful to
achieving the objective.
 Threats: external conditions which could do damage
to the business's performance.

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STRENGHT:
1)The strength of Medimix soap is that. It has rose
meteorically from 65 crore four year ago to Rs. 225
crore in 2003.
2)It also got an ORG rating of nine among soap
categories on a national basis with minimal
advertising.
3)Medimix has grown to become a Rs 140 crore
brand.The brand was targeted mainly at SEC BC
segment.
4)Medicated soap that is 100 per cent handmade is
exempt from tax

Weakness:
1)The weakness of the product is that it has not
established itself in normal market well. People of
normal market are not much aware of the product.
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2)Medimix was marketed heavily in South India.

Opportunity:
1)As medimix is a well known product it has a
opportunity to captured the global market.
2) A medimix spends less on advertisement so its
saves more.
3) The saving can be utilized for improving the quality of

product & capturing more markets.

Threats :
1)Their financial targets would be to build their
organisation to a Rs 1,000-crore entity in the next
five years

Q. 1 ) Suggest an effective media mix for rural

markets on a budget of Rs.6 crore for one year.
Analysis :: Medimix has a large user base among the
SEC B and C segments and in rural areas in the 30-plus
age group. They are trying to widen its usage by bringing
the SEC A segment into their fold. They want to make it a
mass, urban and young brand. This is because it has
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takers among rural consumers who have seen through

the myth of instant and cosmetic results. They know the
long-term benefits of Ayurveda. But this needs to be
communicated to a younger audience and they have
succeeded in doing that with the recent campaigns.
The company's aggressive communication strategy has
been one of the key factors behind the growth.
In recent times, rural India has witnessed a wave of
change. Dinesh Malhotra, general manager of Linter land
(rural arm of Lintas), points out, “With media exposure
and increasing literacy levels, people in rural India are
now demanding a better lifestyle.” The educated “rural
yuppie” (males in the 15-34 age group) is moving out to
work in nearby towns and cities, and sending money
home to his family. This has created an indirect increase
in disposable incomes and a surge in demand for
consumer goods. The rural youth are slowly evolving as
“opinion leaders” in influencing brand and product
decisions in a market that was swayed by village elders
for centuries.

Designing the Campaign

The results of the research should provide all the

information needed: the key practices to target; who the
target audiences are; what the barriers, habits, and

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environment are; and details about appropriate channels

of communication. Experienced soap industry marketing
professionals can provide expertise and assist with all the
activities described in this section.

Applying the Marketing Mix

The marketing mix, often presented as the Four

P’s –Product, Price, Place, and Promotion – provides a
framework for how to design a comprehensive medimix
soap program.
Changes.
1. Price refers to monetary and nonmonetary incentives,
such as the cost of soap. Pricing (e.g., lobbying a
government to reduce a sales tax on soap),
2. Place refers to the distribution of products and
conveniences, such as availability of soap. place (e.g.,
soap dispensers in schools).
3. Product refers to the tangible good or service that can
facilitate behavior change; it can include
environmental
4. Promotion refers to persuasive communication and
includes key messages, media channels, and
environmental prompts. While this document largely
concerns the fourth P, promotion, a country program
may also aim to influence product.

Developing the Promotion

Target Audiences and Segmentation

Segmentation refers to the process of
dividing the target audiences into groups with similar
behaviors and needs. Segmentation is done so that
promoters can address the needs of each segment of the
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target audience. Each segment will require different

marketing strategies.
Primary target segments programs include
(a) Mothers of children less than five years. Children at
school and in other settings.

There are also secondary target segments, audiences

that can be expected to support and influence behavior
change among the primary group. These might include
(a) fathers of children under five years; (b) mothers-in-
law; (c) teachers; and (d) healthcare workers.
Households or is it focused primarily on urban, rural,
or low-income households? Once the campaign target has
been identified, a strategy is developed to identify a
random sample of persons within the target audience

The Media Mix

Modeling the impact of different

communications routes on target audiences is the next
step. With finite resources it is essential to work out
which mix of communications channels will be most cost-
effective. This is a science well understood by industry.
Models of media consumption and contact patterns in the
target populations are built by professionals. The capacity
of TV, radio, and other channels to reach the whole target
audience is calculated.
Monitoring and Evaluation

The object of monitoring and evaluation (M&E)

is to ascertain the extent and effectiveness of the
program. Monitoring serves to diagnose and help fix
problems during program execution. Evaluation is the
process of measuring outcomes both during and after the
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Intervention, to determine how successful the program

was. The media mix is revised to give better coverage of
target audiences, to reflect what channels reach people,
and which channels are most influential.
On the budget of 6 crore for advertising then the
company must be used some selected media for
advertising. 80% sale of medimix soap in south zone so
company must spend more in south states. Remaining
amount spend on other states. in low budget company
must use effective media channel for advertising.

1. TV:
Tv has potential to become the primary medium for rural
communication with the increasing coverage and increasing TV owners
studies reveal that as much as 77% of villeges in India receives TV
transmission and 27% rural people actually watch TV.
In rural area mostly people seen regional channel like
1. In Maharashtra E TV Marathi, ZEE Marathi.
2. In Tamil Nadu Sun TV.
3. Asianet in Kerla
So company should be given their advertisement on specific regional
channels.

2. Radio:
It is well established medium in rural areas. A big expansion
in broadcasting facilities has taken place in country over the years. There
has been expansion in availability of radio sets. Radio reaches large
population in rural areas at a relatively low cost. So company can use
radio for advertising.

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Q:2) Identify the media vehicle that will be

appropriate , taking into consideration non-
conventional media.
Analysis ::
In urban market company is targeting youth by
promoting its product on MTV and hording in strategic
locations in all metro cities. I would like to suggest a
company to promote the product in rural market through
AVP vans (audio visual publicity vans ) this method will
be appropriate in rural markets AVP is one of the effective
tools for rural communication. The van having facilities
for screening films, slides and mike publicity. Portable
exhibition kit carried in the van and an exhibition of the
product could be put up as and when required. During the
day the unit is used mike for publicity in which the person
gives information by speech about the product. And
pasting of posters in public with the help of local dealers,
distributors& opinion leaders. Film shows are organized in
different villages as per the plan the van reaches in
villages at suitable place such as village ground, schools
$ panchayat. A song is played to attract the attention of
the villagers. The salesperson makes brief talk about the
situation about the products and benefits, at the end of
the show the distributor handbills and answers queries of
the customers.

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And there are many non conventional media

that company can concentrate to increase its penetration
of rural markets
1) GROUP MEETING: group meeting is very
convenient media in which company is able to pass
on the message regarding benefit of the product to a
large no of customers. Through meeting.
2) Opinion leaders: villagers place more emphasis on
the opinion of others who have used the products to
make purchase decision. Doctor could be the best
opinion leader who will give the right information
about this type of products.
3) Melas: India is a country of mela and it is estimated
that over 200000 melas are conducted every
year.the no visitors to melas is very high the melas
can be successful used to give information about the
product
Example : screening of popular films along with
advertisement by pesticides companies

Cholayil Ltd., a purveyor of the herbal soap

“Medimix,” campaigned in mobile vans to promote

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its brand. “We run a van campaign which visits the

interior villages where there are no distributors. We
halt the van at specific points [where village folks
congregate and watch videos shown on these vans]
and give out product samples.” However, contrary to
claims of Medimix’s success, Malhotra believes that
“van campaigns can be very expensive.
[Alternatively, promoting one’s brand] in large
congregation points like village markets and fairs has
a far wider reach, and is more cost effective.”

3.Outdoors :
Medimix company can use outdoor medium
in their rural communication mix such as hoarding, wall
paintings, Tree boards, illumination and othr display in
rural area. Genrally rural people prefer bright colours so
company also use bright colour in ads.

6.Haats:
Traditionally on certain days in the week ,
seller and buyer meet in villege to buy and sell the goods.
The medimix company can send large quantity to the
seller and motivate them to promot their medimix soap.

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Q.3) if the medimix has to select a celebrity to

endorse its product in rural areas, who according
to you would appeal to the rural consumer ?
Analysis ::
A celebrity is a person who is famously recognized in a
society or culture. There are different degrees of celebrity
status which vary based on an individual's region or field
of notoriety. While someone might be a celebrity to some
people, to others he may be completely unknown. A
global celebrity on the other hand is someone who is
known by most people or is a mainstream celebrity such
as Robert Deniro, Mariah Carey, Ted Ochsen, etc. Another
high profile categorisation of celebrity status is the A-list,
based on the marketability of celebrities.
Generally speaking, a celebrity is someone who seeks
media attention and most frequently has an extroverted
personality. The desire to be notable is implied by some
to be a part of Western culture and more specifically the
American Dream as a measure of success. A celebrity
that shys away from the public eye or keeps a very
separate private life is called a reluctant celebrity. At the
other end of the spectrum, a celebrity that seeks out
publicity for him- or herself is often called a media tart,
whereas one that uses his or her private life as a vehicle
for enhanced celebrity status, sometimes desperately, is
referred to as a media whore
There are a wide range of ways people can become
celebrities, from their profession, appearances in the
mass media, beauty or even by complete accident or
infamy. Instant celebrity is the term that is used when
someone becomes a celebrity in very short period of
time. In some places, someone that somehow achieves a
small amount of transient fame through hype or mass
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media, is stereotyped as a B-grade celebrity. Often the

stereotype extends to someone that falls short of
mainstream or persistent fame but seeks to extend or
exploit it.
The rise of international celebrities in acting and popular
music is due in large part to the massive scope and scale
of the media industries, enabling celebrities to be viewed
more often and in more places.
Deviating its tradition of roping in Bollywood Divas , this
time none other than Asin endorsed Medimix. The ads
created instant controversy with marketers discussing
whether the brand has suddenly become FEMALE.
Whatever be the controversy, the brand’ll again
succeeded in creating excitement in the market. Another
variant which I like personally is the Medimix with Orchid
which looked cool in terms of packaging and looks.
Over these years, the positioning of Medimix also
evolved. Earlier the brand used the positioning " Beauty
soap of Film stars" . But as the customer evolved, the
positioning lost its charm because customers began to
doubt whether the film stars actually used this brand.
Taking a cue from the customers, Medimix changed the
positioning appealing to the need for becoming a star.
The new positioning is communicated with the tagline "
Bring out the star in you". Although worldwide the brand
is being endorsed by film stars, the actual package
usually contains picture of international models and not
film stars.

While Medimix beauty soap is sticking to the age old

positioning, Medimix international has moved from being
a soap brand to a skin care brand. Medimix International
has the tagline " Not Just Soap, Its Skin Care

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Thus accordingly Asin wil be celebrity to endorce

medimix product in rural product.

Conclusion :: While Medimix has done well, the

company's brand extension, Vrinda Tulisi Soap failed and
is being relaunched with a changed perfume and
translucent appearance. Meanwhile, Manian is focusing
on the Indian community in the Middle East, where he
believes Medimix can command loyal customers. The
product is exported to Brazil and Italy, as well. "Even in
the Indian market, there is a 50 per cent untapped
potential," he says. "We have plans for sandal soap, Viha,
and a herbal Ziva shave cream. People are turning to
ayurveda in a big way.”"
We have the research and knowledge capabilities to turn
out more ayurvedic products and build on our current
marketing strength. In the past five years our adspend
has grown to Rs.30 crore. We conducted an ayurveda
Congress in Hyderabad and got an impressive response."
Medimix has proved that it is not always glitz and
glamour that sells products... a back-to-your-roots plank
that espouses natural products appeals to the average
Indian.

end

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