This solution was presented to management team of Godrej consumer goods. This solution came first and presenters were offered PPIs.

1. Hinterhunt ‘2012
Rural Marketing Event
for Godrej
Godrej Appliances
-- Product Launch & Marketing Strategies --
Team: 3 Blind Mice
NITIE, Mumbai
Ritom Das, das.ritom@gmail.com, +91-8652722520
Shanu Chaudhary, shanuchadhery@gmail.com, 9702018520
Syed Waheeduddin, sharfarfais@gmail.com , 9769657707

2. The Flow…..
 Research & Insights
 Secondary Research
 Consumer Durable Market
 Competitor Analysis
 Strategic Group Analysis
 Rural Scenario
 Primary Research
 Primary Market Survey
 Socio-Economic Classification
 Research Insight Mapping
 Detailed Insights – Rural Connect, Psychographic Profiling etc.
 Product Launch & Disruptive Innovations
 Market Penetration Strategy
 Product Level Launch Strategy
 Product Profiling - NPD & Innovation
 Marketing & Distribution
 Marketing Strategy – 4A Approach
 Marketing Campaigns
 Distribution Channel & Logistics
 Detailed Forecasting & Financials
 Windup Strategy

3. Consumer Durable Market
A change in the lifestyle, higher disposable income coupled with greater affordability and a great surge in advertising
has seen the demand for consumer durable products escalate in recent years.
Financing schemes and lower EMIs have led to exponential increase in turnover over the years.
Both International
& Indian Players
Market Share
Porter’s 5-Force
Analysis

4. Competitor Analysis
 White goods characterized by
High-priced & heavy
Slow-moving electronic
goods like fridge, AC etc.
 Brown goods characterized by
 Light electronic consumer
 Low-priced and fast-moving
goods including gadgets of
various natures.
Finding 1: Godrej is not present in
many of the consumer durable
product space & is thus losing out on
the opportunity of being a complete
consumer durable product provider.
Finding 2: From the primary research
we found that Godrej has a very
good brand recall, it should target to
enter into other segments and be a
household name in the consumer
durable product space.

5. Strategic Group Analysis (SGA)
Product Diversity Vs Promotion & Dist.
 LG & Samsung are clear industry
leaders – well established in terms of
diversity as well as distribution
 Companies in SG2 (Sony &
Videocon) are lacking in terms of wide
product line
 SG3 companies like Philips, Godrej &
Bajaj have fair product lines but they
lack last mile reach – Need to increase
the distribution
Technology Capability Vs Price Range
 LG & Samsung are leading – they
have presence in wide spectrum of
business segments which make them
the mass reaching company
 Godrej has fair product price range
but lack in technology capability ,
though recent development (Chotu
kool) are steps in right direction

6. Rural Segment/ Market Space
•Rural literacy level •Percentage of BPL Rural vs. Urban Segment
improved from families declined
36% to 59% from 46% to 27%
•Pucca houses
•90% villages are doubled from 22%
electrified SOCIAL to 41%
ECONOMIC
•41 m Kisan Credit FINANCIAL CONSUMER •The rural
Cards have been
consumer market
issued
is expected to
•42 m rural HHs reach US$ 425
avail banking billion in 2010-11
services
• Largely Untapped

7. Primary Market Survey
Survey Region Specification  Target Site: 3 Villages in Maharashtra around Mumbai
Village Gram Panchayat Khadavali, Nadgaon and  Target Age Group: Between 20 to 45 yrs.
Padghe  Occupation: Farming, Other works
& Total Sample Size: 160 (Households & Retailers)
Tehsil Panvel
District Raigarh Survey Video
State Maharashtra
Mandi 1 Kalyan, 20 km
Mandi 2 Shahpur, 8 km
Target Farmers, Shop Owners, Rickshaw Drivers etc.
Selection Random selection

8. SEC Rural Segment Classification
 The Green coloured
socio-economic segment are
the targeted group, it
include segment B1, B2, C1
and C2
 The RED coloured socio-
economic segment are
excluded from TG are not
considered (Segment A is
rare while segment D do not
have disposable income)
The income levels of the different segments are found out through our survey as:
 Segment A: Above Rs. 15000 per month
 Segment B: Rs. 10000 – Rs. 15000 per month
 Segment C: Rs. 4000 – Rs. 10000 per month
 Segment D: Rs. 2000 – Rs. 4000 per month

9. Primary Research & Insights vis-à-vis Strategies
After Sales Service
After sales service? Brand Preference?
On what basis do you buy different brands
for retailing? Average lead time for branded Service and
and local products?
Credit Credit Facility
Reverse Logistics
Product Psychographic Low Cost Offerings
Availability Analysis
Last Mile Delivery
Primary
Research
Problems being faced with the current Interest? Opinion? Attitude?
appliance? What price are you willing to
pay?
Product Product Names and Taglines
Modular Design Rural
Innovation &
Attractiveness Connect
Buying Decision? Brand awareness check
(Generic and Godrej specific)!
Value Based Innovation Demonstrations

10. Rural Connect Insights
Brand Awareness
Almost 100% of the Features that customer associate
respondents know about with Godrej in the rural segment:
Godrej through their  Secure & Durable
Godrej Locks & Godrej  High Performance
Wardrobes  Premium Segment
Marketing Communication Response
Effect on Buying Decision for Consumer Durables As far as the buying decision of the rural
25%
customers is concerned, word of mouth is the
TV Advertisements
most important of the rest
Print Media
70% 5% Word of Mouth
 Product Demonstrations/ Exhibitions during
Bazaar Day would actually help in generating
trials of the product and interest among the
perspective customers
 People in the rural areas would be far more
comfortable in associating with a product that has
a Local Product Name
 Campaigning around themes that can be
locally understood and that can be related to the
feature of the product in local language would
help capture the market more efficiently &
effectively

11. Psychographic Profiling & Insights
The Psychographic Profiling is done on the basis of their personality, values, attitudes, opinions, interests or lifestyles
IAO Parameters
Influencers Culture
There are many reference groups in village. These include
teacher, panchayat members, health workers, bank Majority of rural consumers are traditional in outlook.
manager and co-operative board members – must be They associate faster with messages that match their
kept in mind while developing marketing strategy cultural behaviour such as traditional values.
Attitude & Values Parameter
 Product Durability is still valued and don’t believe in ‘use &
through’ urban mentality Product
 Product Usability helps in making decision to buy a product. Durability
Added feature always helps in Decision Making.
Brand Loyalty
 Look for brand in all the products they buys (more prevalent in Product Usability
FMCG) and even ready to pay little premium for the same
 Price Sensitivity is still there but value for money is also a
stronger force. Word of Mouth
 Believe in Word of Mouth Publicity of product from a neighbor Publicity
Price Sensitivity
or relative.
 This customer segment is not much aware of Experiential Customer
Marketing where they can use and feel product before buying Engagement
 Engaging customer in the buying process also helps in
generating the sales of the product

12. Other Insights
 Brands like HUL, Prestige give credit of 1-
 Retailers stock brands which are known for 2 months to retailers
good after sales service
 No formal mechanism for loan/credit
 Retailers make earnings by having used by retailers. Customers are given credit
provision for small maintenance on the basis of two factors personal
and repairs at their own shops relationship & customer loyalty
 Rural conditions (e.g. voltage fluctuation)  Use age old saving mechanism to
result in product failures. This requires collect money for buying CG –
modular products with easily replaceable opportunity to provide ‘Advanced
Service
parts. E.g. detachable wires and plug points Credit Payment’ mechanism as channel for
saving
 Customers also select products Innovation Availability  Though the trend is customers
based on the product features. Hence becoming more brand conscious
it is important to have innovative features , product unavailability and
 Product demonstration is equally inconvenience are still reasons for
several brands failing to gain market share
important and hence it needs a platform
for the retailer to demonstrate the  Multi brand distributors are preferred by
product the retailers
 Cost is still a concern. Hence new  Long Guarantee period is desired by
features cannot be added at the cost of several customers and almost all the brands
increasing the price drastically provide some kind of guarantee

13. Market Penetration Strategy
 Per-capita income level of different states can be
utilized to identify the buying power of majority (rural)
Income
living in the region
Level
 HDI and GDI help in identifying regions which
are upcoming and where people want to have
better living standards
HDI &
GDI  Such regions would be right for the market
entry as there exists high chances of product
acceptance
 Launch Strategy would focus on initial launches in
At the developed districts in the selected regions (on
District basis of point 1 & 2), leaving the undeveloped ones in
Level initial phases of launch
At  Village coverage in the district should be done on the
Village basis of its size such that bigger villages will targeted
Level first and also their respective distances from these high
density locations:
 Villages near Urban Centres
 Developed District Head Quarter
 Taluka/Tehseel
 Mandi

14. Product Level Launch Strategy
All the launches will have phased approach such that starting with the initial pilot phase and moving to later phases
on basis of its success in the region
The timeline for the launch should be aligned with the harvesting time which happens at three different times
depending on region – Kharif, Rabi & Zaid.
Air Cooler
 Initial focus should be to launch the product in Hot Dry & Composite regions in
decreasing order of priority; Formation of different clusters for the phased launch
of the product
--- Roadmap --
 Phase 1 - Pilot(away from coast): Parts of Maharashtra, Gujarat
 Phase 2 – Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, Punjab
 Phase 3 - Chhattisgarh, Jharkhand, Bihar and parts of Andhra Pradesh
Induction Cooker, Washing Machine & Water Purifier
No dependence on climate – therefore launch area will be selected purely on
basis of income level, HDI and GDI of the region; Cluster formation will be done
since helps in synergising the logistics in a region
--- Roadmap --
 Phase 1 – Pilot: Maharashtra & Gujarat (West cluster)
 Phase 2 – Kerala, Karnataka and Tamil Nadu (South cluster)
 Phase 3 – Rajasthan, Uttar Pradesh, Haryana, Punjab
 Later Phases – Add other states by expanding different cluster on the basis of response

15. Product Profiling – NPD & Innovation
Induction Cooker
Product Profiling
 Runs on Electricity
 Priced at around ~ Rs. 3000
 Cooks faster than conventional gas
stoves
 Timer Delay option, Variable
Temperature option & Preset Cooking
options
New Product Design
Disruptive Innovations
 Cooker operating on Battery/ Any other form of fuel like
kerosene (Load shedding of upto 4 hours in some areas)
 Special design to prevent any new purchase of utensils (of
flat bottom)  New Induction Plate Design
 Can let go the features of “Timer Delay option, Variable
Temperature option & Preset Cooking options”  Ideally not
much of importance to the rural customers
 Pricing at around ~ Rs. 2500 & Modular Design

16. Product Profiling – NPD & Innovation
Chotu Wash – Economical Washing Machine
Product Profiling
 Runs on Electricity
 Different range of products in this category
 Washing capacity varies from 4.5 kg to as large as 10 Kgs
 Pricing:
Lowest price point at Rs. 5000  Koryo (Future
Group’s Private Label Brand) 5Kg Washing M/C
Godrej’s lowest range of Washing M/C comes at KORYO WMc
around Rs. 8000
Disruptive Innovations New Product Design
 3 Kg Wash Capacity M/C keeping a price point of Rs.
3000 to target the rural segment
 Multi Use Washing M/C with an option of Mixer/
Grinder
 Optional/ Additional Mixer Grinder to be priced at Rs.
500
 Use of the motor beneath for providing the additional
option  3 Kg size would be optimal for such an option
 Heavy duty motor and design – expectation to wash
quite dirty/soiled clothes
 Only one washing compartment & Modular Design

17. Product Profiling – NPD & Innovation
Water Cooler & Purifier
Innovation & New Product Development helped TATA Swach capture a significant market share in rural markets. Till
now it has sold over 30 lakh units in the rural parts of India.
Product Profiling
 TATA Swach purifies the water but doesn’t provide any cooling
of the water
 TATA Swach priced at around Rs. 1000 to Rs. 1500
 Locally available water coolers doesn’t have any facility for
purification of water
 Pricing of branded Water Cooler starts at Rs. 10000
Disruptive Innovations New Product Design
 An Integrated Water Purifier Cum Water Cooler for targeting
the rural households – One stop solution
 Innovative technology of ChotuKool to be used for cooling of
the water
 Feature to run on Battery & Insulation for the Storage Tank
 Fibre body as research shows that steel body develops crack
 No kidney filter; they are a failure – because of dirt deposits
and can't be cleaned thereafter
 Two Variety – One with Cooler; Second without Cooler
 Priced at Rs. 2500 & Rs. 1000 – With Cooler & Without Cooler

18. Product Profiling – NPD & Innovation
Air Cooler
Product Profiling
 Runs on electricity
 Branded Air Coolers has fiber body whereas locally manufactured
 Ones have iron/steel / aluminum bodies
 3 to 5 Level Blower Speed Controller
 Water Level Indicator & Air Swing Features
 Price Points:
Branded Air Cooler lowest price point at Rs. 4000 (Symphony, Bajaj, Kenstar)
Locally Manufactured Coolers starts at Rs. 1000
Disruptive Innovations New Product Design
 Possibility of use of the ChotuKool Innovation in the Air Cooler
for cooling the air/ water
 More cooling than other available products in the market
 Use of fibre body with insulation to keep the air/ water cold for
a long time
 Can we use the technology of wingless fans/ similar
technology and come up with a new, innovative, easy to use and
simple product??
 Battery support for the product & Modular Design
 Pricing at Rs. 2500 Wingless Fan 

19. Marketing Strategy – 4A Approach
Low per capita disposable incomes that is Large number of daily wage earners, acute
half the urban disposable income dependence on the vagaries of the monsoon
Rural
Marketing Poor Roads; Power Problems; &
Seasonal consumption linked to harvests Challenges Inaccessibility to conventional advertising
and festivals and special occasions media
The 4A approach deals with the challenges of marketing in rural segment by
providing affordable solutions being readily available from any of the village
stores and widely accepted among the customers by creating awareness
Availability
Ensuring availability of the product to the innermost part of the country is a huge challenge considering India's 627,000
villages spread over 3.2 million sq km & 700 million Indians living in rural areas
 For a Pan-India presence, we have to target at least 13,113 villages with a population of
more than 5,000
 We need to trade-off the distribution cost with incremental market penetration
 Use of SHGs/ Village Women as distributors – good margins and self employment
 Area Offices (AOs) & Rural/Remote Area Offices (RAOs) to tap unexplored markets
 Empowerment of the RAOs with decision making authority, billing & collections
Increase in dealers over the years in a phased manner

20. Marketing Strategy – 4A Approach
Affordability Awareness Acceptability
 With low disposable  Different promotional events  One of the strategies that can be
incomes, products need to be organised by stockists and other used for gaining Acceptability is the
affordable to the rural consumer – stakeholders of the product Product Localization – coming up
pricing in the range of Rs. 1000 to  Optimal use of a combination of
Rs. 3000 with Regional Language Product
TV media, cinema and radio should Manuals & Product Menus
 Product innovation is most be used to reach more than 50 per
important – success of “ChotuKool”  Introduction of low cost products
cent of rural households for the masses
further highlights the demand of
affordable products in the rural areas
Availability •Wide Network
Affordability •Remove unwanted features
•Tell about value for
Awareness money
•Product localization and low
Acceptability pricing

21. Marketing Campaigns
 Small portable size
Focus on some critical parameters when we are targeting the rural segments  Multi-purpose use
 Value for money
 Standard of living
Air Cooler Water Cooler/ Purifier
 Product Name: SHEETLAK ( )  Product Name: OSS ( )
 Campaign: GARMI KI CHUTTI ( )  Campaign: ŚUD'DHA AURA TĀJĀ..... ŌSA KĒ JAISĀ
 Campaign to connect with Cooling ( )
 Campaign to connect with
Purity, Freshness &
Close to Nature
 Product Name: MUKTI ( )  Product Name: SAKTI ( )
 Campaign: MUKTI DHU'Ā, LPG AUR GARMĪ SĒ  Campaign: NA'Ī ŚAKTI... ABA NĀ KARĒ KUŚTĪ
( ) ( )
 Campaign to connect with  Campaign to connect with
Features (Smoke Free , LPG Free Technology Breakthrough,
& Heat Free) Saving Energy & New Feature
Induction Cooker Washing Machine

22. Distribution Channel & Logistics
The sparsely populated villages with poor infrastructure call for distribution channels which are versatile and economic
at the same time; also challenges the number of nodes the distribution network can afford
Godrej Ghar
 An innovative idea to answer the problems of a
distribution network in rural India
 A Godrej Ghar is a multipurpose, multi role unit which
will help Godrej reach the rural consumers, connect with
them, sell their products & gain market share in the
process
 A Godrej Ghar would be allotted to each village with a
population more than 10000 people
 Local entrepreneurs will sponsor the land and
employment too will be for the locals
 Capacitated Facility Location Model will be used to
select the location of Godrej Ghars in different states and
Distribution Network will be a “Distributor Storage with
Customer Pickup” model to bring down the final cost
 The location will be chosen in such a way that it is
accessible to all parts of the village and the connectivity
and awareness of the place is good

23. Distribution Channel & Logistics
Godrej Ghar
Ownership and Profit Sharing:
 Godrej Ghar will be to create an effective
distribution channel along with creating brand
awareness for Godrej
 Will be an empowering mechanism for
social and institutional entrepreneurs and an
investment for the village community
Tie-up with Indian Postal Services
 Public-private partnership with
Indian Postal Service for the delivery of
its product
 Products are made available at postal
centres and then distributed (on need
basis) through Indian Postal Services
 Once the pilot (phase 1) of the launch
is complete & successful – further expand
by leveraging same model especially for
the villages which are far flung from the
‘Godrej Ghar’ concept stores

24. Demand Forecasting – Pilot Phase
Forecast of Sales/Revenue for Phase 1
Induction Cooker Maharashtra Gujarat Washing Machine Maharashtra Gujarat
No. of Villages targeted 192 325 No. of Villages targeted 192 325
Average Population Size 10000 5000 Average Population Size 10000 5000
Market Size(Total Population in target
villages 3940350 3527901 Market Size(Total Population in target villages 3940350 3527901
Average number of people per family 5 5 Average number of people per family 5 5
Number of Families 788070 705580 Number of Families 788070 705580
Penetration of Product (Category) 20% 20% Penetration of Product (Category) 10% 10%
Market Penetration 157614 141116 Market Penetration 78807 70558
Market Share desired in Phase 1 20% 20% Market Share desired in Phase 1 15% 15%
Targeted Market Size (number of Units) 31523 28223 Targeted Market Size (number of Units) 11821 10584
Water Purifier Maharashtra Gujarat Air Cooler Maharashtra Gujarat
No. of Villages targeted 192 325 No. of Villages targeted 150 250
Average Population Size 10000 5000 Average Population Size 10000 5000
Market Size(Total Population in target
villages 3940350 3527901 Market Size(Total Population in target villages 3940350 3527901
Average number of people per family 5 5 Average number of people per family 5 5
Number of Families 788070 705580 Number of Families 788070 705580
Penetration of Product (Category) 20% 20% Penetration of Product (Category) 20% 20%
Market Penetration 157614 141116 Market Penetration 157614 141116
Market Share desired in Phase 1 20% 20% Market Share desired in Phase 1 20% 20%
Targeted Market Size (number of Units) 31523 28223 Targeted Market Size (number of Units) 31523 28223
Data and Assumptions:
 Number of Villages with population of more than 10000 targeted
 Market Penetration is 20% (Penetration here implies penetration of category & substitutes of equal/similar price)
 Market Share targeted for phase 1 is 20%

25. Financial Analysis
P 1 Revenues and Induction Washing Water Purifier
Profits* Cooker Machine (W/O cooler) Air Cooler
Sales - Number of
Units 59746 22405 59746 59746
Average Revenue
per unit 2500 3000 1000 2500
Revenue from
Sales 149365000 67215000 59746000 149365000
Profit Margin 10% 10% 10% 10%
Total Profit 1,49,36,500 67,21,500 59,74,600 1,49,36,500
Total Revenues from phase 1 Rs. 42,56,91,000
Total Profits from Phase 1 Rs. 4,25,69,100
Annual Profit after sales for Godrej Ghar Rs. 4,88,350
Annual Costs Rs. 2,30,000.00
Annual Operating Profits Rs. 2,58,350.00
Monthly Operating Profits Rs. 21,529.17
Godrej Ghar will sell at 10% margin to a customer and at 5% margin to an Entrepreneur, who can get his 5% margin
on selling to locations not accessible by Godrej Ghar
Air Cooler (Unit Price INR 2500) Sankrantri/Lohri (Holi) Vaisakhi
Month Sep-Oct Feb-Mar Apr-May Month Jan Feb Mar Apr
Average Sales per month (No. of Units) 0 20 50 50
Harvest Average Sales INR 0 50000 125000 125000
Kharif Rabi Zaid Profit Margin - Category 10% 10% 10% 10%
Season
Profit from Repairs and after sales service 0 300 750 750
Profits (INR) for Godrej 0 5000 12500 12500
Profits (INR) for Partner 0 5300 13250 13250

26. Product Wind-Up Strategies
As we are proposing a phased manner to launch the product, winding up the product in the pilot phase itself, in case
the targets are not meet, will be very effective on part of the company looking to restrict further losses.
Price Reduction & Product placement in Product Bundling Dumping of Product
Discounts Tier-2 & 3 cities • Combination of 'Air • Selling the products as
Reduce the price & use Cooler & ChotuKool' unbranded products
the harvesting season to • To use up excess
inventory • Kitchen ware - (dump), since once a
sell the old inventory product is discontinued
• In case such a product is 'Induction cooker +
Special discounts in case Washing/mixer by the company, the
successful in Tier-2 company doesn’t have
gifts are bought for cities, we can further machine'
special occasions such as any liability to provide the
explore the option of • Combine with products service for the same
marriage purposes marketing the product like wardrobe etc
1 2 3 4
• Product bundling helps • Recovery of Cost -
to bundle two or more Products that are already
products together and sell being manufactured &
them at a lower price those in the inventory
• It can be very effective • Company’s brand value
during festive season and is not diluted as we are
can also help in generating selling them as unbranded
sales product

27. Thank You!