Rural India is like a vast minefield which is still unexplored as far as marketing is concerned.

The key features of a rural market which position at the top of strategy for many consumer durables companies are Large population, rising prosperity, growth in consumption life cycle changes, life cycle advantages, market growth rate being higher than urban areas, rural marketing is not expensive and remoteness is no longer a problem. The immense size and enormous opportunities associated with a rural market is definitely very lucrative and it does not come as a surprise that Godrej and Boyce Manufacturing Co. want to make inroads there. The market for consumer durables in villages and suburban regions is increasing at a scorching pace. Colour television, Mobile phones and music systems have already found acceptance and the rural audience eagerly awaits for more products. The company has already launched Chotu kool and feels that the time is just ripe for launch of some more products targeted at rural india as it aspires to rule the market for consumer durables. The icing on the cake for the consumers is that all the products to be launched are powered by solar energy and are customized (say miniaturized). The portfolio of products the company contemplates to launch in near future are y y y y Induction Cooker Chotu Wash (an economical washing machine) Water Purifier Air Cooler

The report evaluates these proposed products on various parameters like the Desired Product Features, Need Gap analysis, Competitors Positioning,STP,Communication Strategies to be Adopted,Logistics,Retail and Distributor Margins,Sales Feasibility,Expected Turnover in 2-3 years and Wind up Strategy in case of Failure. Individual assessment of each product in the product line has been done in this report on the above mentioned parameters. A sample of 200 persons was taken from villages adjacent to Mysore, Karnataka was taken and their response based on a carefully planned Questionnaire was Critically analyzed using market research tools. Survey We conducted our survey in adjacent villages to Mysore i.e Chikhalli, Nadanhalli, Kempanhundi, Laksmipur and Varuna. We had responses from 187 respondents. We chose We based our research on the 4 As of rural marketing i.e. Acceptability, Affordability, Awareness and Availability.

persons who were the head of their families and were the key decision takers. We had a questionnaire consisting of 18 questions. The questions were 1.Name? 2.Age? 3.village? 4. occupation? We tried to find out the income level by their occupation and later linked it to their average monthly expenditure. 5.education level? The purpose of this question was to have a knowhoe of the basic education level in the village and then relate it to the need for the products. 6. Landholding? The purpose of this question was to have an understanding of assest owned and then relate it to income and expenditure. 7.Average monthly expenditure? This question aimed at knowing the expenditure levels across various income levels and trying to know the key expenditure heads? 8. Number of people in the family? The purpose of this question was to find out the number of people in

1.INDUCTION COOKER  Concept and Functional features With the inflation soaring for quite some time now,LPG getting costlier and scarcity for wood well appreciated rural india is looking for newer pastures to cook their food. The answer comes in the form of solar induction cooker. It is a device which would convert the solar energy to chemical energy which can be used for cooking purposes. Abundance of sunlight for most of rural india makes it very attaractive for consumer appliances companies to introduce a solar induction cooker. The desired product characteristics are following y y y y y y y Over heat protection Voltage display Electricity energy display Small article detection Auto pan detection Self lubricating fan, disperse heat quickly New technology which does not require life long servicing

 Need Gap Analysis

From our survey we found out that the rising fuel prices has emerged as a genuine concern for rural people and certainly there is a need for cheaper alternate sources of energy. No company barring a few have reached to that audience with a product that meets the expectations. Also proper communication is required to expose the need that exists and bring that to the awareness of consumers.  Competitors Positioning Major induction cooker producing companies are Prestige and Bajaj. They have their products ranging from Rs.2000 to Rs3700. These companies do not make solar induction cookers the only major solar induction cooker producing company is Anuman solar. Bajaj and Prestige have a countrywide distribution channel whereas Anuman solar is primarily based in Chennai due to the easy procurement of requisite raw materials.

 STP The parameters considered for the STP were Usage and Attitude. Segmentation: a) Based on employment:- The rural can be sub-divided into self employed farmers, daily wage labour, migrant labour, salaried employees, traders , micro entrepreneurs at.al . The segment most lucrative for the launch of inducyion cookers was traders and large farmers. b) Variation in literacy level : Those who had an educational background of intermediate or higher had an idea about the solar products and they appreciated the benefits of solar induction cooker. The initial launch can be targeted at that segment. c) Difference in income levels and patterns of income flow (farmers vs. daily wage earners):- Farmers have a periodic income flow so the product launch should be targetes just after the crops are sold as farmers usually make purchases around that point of time. d) Media exposure levels:- Ads depicting the use and benefits of solar cooker can entice the rural consumer, we can see that the visibility is an integral factor in such advertisements. So the population havig access to television should be the ideal segment. Targeting: Whole rural population who have access to sunlight in abundance can be targeted but due to logistics related issues we will initially target villages which are in proximity to towns and which have a sizeable population.Families having a disposable income less than

5000 as cooking medium forms a significant proportion of their expenses. The population having a higher disposable income can be targeted as they might go for it just for curiosity. Initially the products can be considered to be niche for rural audience but with successful use by a sizeable population many more will be willing to buy the product as it fulfills one of their basic needs. Positioning: Alternative to wood and animal dung , No smoke and safe, Cheaper than LPG gas, \ Adverisements showing these advantages will play a crucial role in communication strategies as far as positioning is considered. Attaractive finishing and bright colours will appeal to the rural audience as they assosciate it with prosperity.  Promotion and Communication Strategies Interactive manual in regional languages TV advertisements Live demonstration at Haats Billboards and banners at post office and banks Radio jingles Government agencies and environment concerned NGOs Gram Panchayats Free trial for a day scheme for some customers can be a part of initial promotion

 Logistics We initially plan to keep our products in retail outlets in towns which will cater to customers from atleast five villages. The retailers can push the product if they are given a good margin. Another method we found can be successful in rural areas is that we can exploit the impact that weekly Haats or Mandis has on the rural audience. Since, the whole village turns up for them giving a live demonstration there can have a significant impact. A lot of villagers can be made aware about the working and benefits of the product. Interested customers can place the order then and there itself and the goods can be delivered in the next haat. This approach will require less manpower as adjoining villages have haats on alternate days so a single salesman can account for 3-4 neighbouring villages. For cheaper and safe transfer of goods we can use the Logistics transfer facility of India Post. They will deliver the product to our distributors. The post offices can also help in

warehousing facilities. Since the popularity of post offices is still intact and they have a pan india reach an alliance with them can solve a lot of logistics issues. Online retail partnerships with firms like flipkart and alibaba can pay rich dividends particularly when a time internet has made inroads throughout india as nearly 40% of rural india has access to internet. The existing sales force of such companies can be used as it will keep our distribution channel leaner and provide us more flexibility.  Retailer and Distriutor Margins  Sales Feasibility From our survey we found that there was a genuine interest for solar cooker. Around 70% of our respondents Cheaper labour rates in villages is an advantage which can be taken advantage of . Bundling solar induction cooker with water purifier can be a relevant sales tactic as both are kitchen appliances.Same battery socket can be used for both products which will make the products more cheaper and attaractive.  Expected Turnover in 2-3 years
Cost of production Transportation cost Distributor margin Retailer margin Advertisement cost per unit Total cost Profit margin Price per unit Expected distributor) Expected Turnover in 2-3 years 4500000 sales(500 units per year per 2000 200 200 150 100 2750 250 3000

 Wind up Strategy in case of Product Failure Though we find it to be highly unlikely but considering the strategical relevance of the wind up strategy we gave considerable thought to it. The advantage of having a lean distribution system dependent on third party logistics can be advantageous. Since the distribution channel is not created by us it will be easy for us to wind up. The product should have scope for technological advancements such that in case it does not work for rural audience we can target it at urban population with some fine

tuning.The large urban population living in slums and migrant workers can be targeted. Since accessability of sunlight is a concern for urban audience a dual design is suggested which can run on battery as well as sunlight. 2.CHOTU WASH  Concept and Functional features Washing clothes is a basic necessity for all human beings but certainly it is not enjoyable. A lot of effort is required to wash clothes and it takes a lot of time as well. In villages the clothes of farmers get stained with mud or the tools they use. There are more number of small children in rural areas who spoil their clothes while playing or eating. The womenfolk who are generally busy throughout the day lloking after children, cooking and assisting men on the field have a very tough time. The chotu wash washing machine will come as a much needed relief for them as it is an interactive, easy to use machine with graphical interfaces.it runs on solar power and electricity is not an issue.Normally the washing machines require running water but this machine can work if the tank is filled with water before starting.Common features of this product are:  Minimal detergent and water requirement  Prewash (soak)  Child lock  Auto restart  Quick wash  Wash load sensoe  Hot water wash  Easy maintenance  Need Gap Analysis The need for washing machine was seen only to premium segment i.e rural households having disposable income more than 15000 and some of them already have conventional washing machines.From our survey we also found out that the rural audience do not really find washing machine to be a need. Cultural factors play a role here as rural women generally stay at home and only the household chores keep them occupied. Washing clothes consumes some time for them and they derive psychological satisfaction out of it.So the company would have to invest a lot of time and money in creating the need in the mind of rural people if they have to market this product profitably.  Competitors Positioning

The complexities assosciated with developing a solar washing amchine have ensured that there are no major competitors to this product. Since the product will cater to a niche segment who are having high disposable income the product will face stiff competition from conventional washing machines coming from established firms who are expanding their distribution channels to the tier 2 and tier 3 cities and havean eye on rural markets.Major competitors are Whirlpool,Videocon,LG, Electrolux, Sharp,

Haeir,Panasonic,Samsung,Hitachi, Kelvinator The price range for washing machines belonging to these companies starts from 6000 onwards and goes over 30000.  STP a)Based on income levels:- Households having relatively high disposable incomes i.e having monthly expenditure of 15000 or more. Lower income hoseholds will not be willing to spend around 3000 for a product they dont feel necessary as they consider washing clothes to be a mundane activity. b) Based on employment:- The rural can be sub-divided into self employed farmers, daily wage labour, migrant labour, salaried employees, traders , micro entrepreneurs at.al . The segment most lucrative for the launch of washing machines is traders and large farmers. c) Variation in literacy level : Those who had an educational background of intermediate or higher had an idea about the solar products and they appreciated the benefits of solar washing machine. The initial launch can be targeted at that segment. d) Difference in income levels and patterns of income flow (farmers vs. daily wage earners):Farmers have a periodic income flow so the product launch should be targeted just after the crops are sold as farmers usually make purchases around that point of time. e) Media exposure levels:- Ads depicting the use and benefits of solar washing machine can entice the rural consumer, we can see that the visibility is an integral factor in such advertisements. So the population havig access to television should be the ideal segment. Targeting:- Families.The population having a higher disposable income can be targeted as they can be convinced of a need for washing machines. Initially the products can be considered to be niche for rural audience but with successful use by a sizeable population many more will be willing to buy the product as it fulfills one of their basic needs. Positioning:- The chotu wash can be positioned as a low cost, time and energy saving appliance.

Adverisements showing these advantages will play a crucial role in communication strategies as far as positioning is considered. Attaractive finishing and bright colours will appeal to the rural audience as they assosciate it with prosperity.  Promotion and Communication Strategies Interaction manual in regional languages TV advertisements Live demonstration at Haats Billboards and banners at post office and banks Radio jingles Government agencies and environment concerned NGOs Gram Panchayats  Promotion and Communication Strategies  Logistics  Retailer and Distributor Margins  Sales Feasibility  Expected Turnover in 2-3 years
Cost of production Transportation cost Distributor margin Retailer margin Advertisement cost Total cost Price per unit Expected sales Expected Turnover in 2-3 years

 Wind up Strategy in case of Product Failure 3. WATER PURIFIER  Concept and Functional features Pollution nowadays has reached epic proportions in urban areas and its impact is well felt even in rural areas. Majority of companies are establishing factories and plants in rural areas and the existing water bodies have bore the brunt. The quantity of harmful particulates and metals have reached to alarming levels in water sources. Drinking water is no more safe even in rural locations and are causing more water borne diseases

than ever. A water purifier is going to be an absolute necessity in near future. Solar water purifier will be economical and our product development team will ensure it does not require any after sales service. Functional features of this product will be following:Competitors tata Swach, Eureka Forbes, KENT,  No electricity required  No running water required  Zero maintenance  Large storage tank  Kills and removes all germs and bacteria  Removes harmful minerals

 Need Gap Analysis There is already a need though not very strong for the water purifier that is existing and there are many players who are trying to capitalize on that. With proper communication strategies like government agencies stressing upon the importance of pure water the need can be enhaced which can result in better business propositions. By focusing on our strengths and proving or product better than customers in terms of price, performance and service the water purifier can be launched with commercial success.  Competitors Positioning Major competitors for the water purifier are the conventional water purifiers. Major players in this field are Tata, Bajaj and HUL. The price range of the products vary from 1200 to 12000.  STP a)Based on income levels:- Households having relatively high disposable incomes consider health as one of the key factors and they will be willing to buy a product like this which eradicates water borne diseases due to unsafe drinking water. b)Based on employment:-The rural population can be sub-divided into self-employed farmers, daily wage labour, migrant labourers, salaried employees, traders, micro entrepreneurs at.al . The segment most lucrative for the launch of water purifier is traders and large farmers. Gradually the whole rural population will develop a need for the product and will be willing to buy them. c) Variation in literacy level : Those who had an educational background of intermediate or higher had an idea about the danger of drinking impure water contaminated with harmful

substances. They also

about the solar products and they appreciated the benefits of solar

water purifier. The initial launch can be targeted at that segment. d) Difference in income levels and patterns of income flow (farmers vs. daily wage earners):Farmers have a periodic income flow so the product launch should be targeted just after the crops are sold as farmers usually make purchases around that point of time. e) Media exposure levels:- Ads depicting the use and benefits of solar washing machine can entice the rural consumer, we can see that the visibility is an integral factor in such advertisements. So the population havig access to television should be the ideal segment. Targeting:-The population having a higher disposable income and the head of the family is educated can be targeted as they can be convinced of a need for water purifiers.  Positioning:- The chotu wash can be positioned as a low cost, time and energy saving appliance.  Adverisements showing these advantages will play a crucial role in communication strategies as far as positioning is considered. Attaractive finishing and bright colours will appeal to the rural audience as they assosciate it with prosperity.

 Promotion and Communication Strategies  Logistics  Retailer and Distributor Margins  Sales Feasibility  Expected Turnover in 2-3 years
Cost of production Transportation cost Distributor margin Retailer margin Advertisement cost Total cost Price per unit Expected sales Expected Turnover in 2-3 years

 Wind up Strategy in case of Product Failure 4. AIR COOLER

 Concept and Functional features  Need Gap Analysis  Competitors Positioning  STP  Promotion and Communication Strategies  Logistics  Retailer and Distriutor Margins  Sales Feasibility  Expected Turnover in 2-3 years
Cost of production Transportation cost Distributor margin Retailer margin Advertisement cost Total cost Price per unit Expected sales Expected Turnover in 2-3 years

 Wind up Strategy in case of Product Failure