Weitere ähnliche Inhalte Ähnlich wie Rural marketing in pakistan mirza shakeel (20) Mehr von Mirza Shakeel (14) Kürzlich hochgeladen (20) Rural marketing in pakistan mirza shakeel9. Around
35% S
…of major companies
comes from Rural Pakistan
10. Changing Market Place
Modern Trade
Wholesale
Wholesale
Family Grocers
Retail
Pharmacy/Mass Retail
Rural
11. In the world
2.5 Billion people
earn 1500$ plus per year
…and remaining
4 Billion people
Earn less than 1500$
25. Assortments Carried
Karyana Items
Smaller SKU’s of
Branded Items
Unrelated Items
Vegetables, Ice etc
28. Smaller SKUs
Single Serving
(per capita or per time period)
29. Distinctive
Packaging
Brands are
identified &
differentiated
on basis of
color
Mainly due to illiteracy
31. Attractive Price Points
Rs.10 sachet contributes
around 50% in surf sales
Rs.10 sachet major
growth driver for
powder creamer
Rs.10 sachet rapidly
growing despite challenges
from smuggled tea
32. Per Gram Costing
Brand Large SKU Sachet
Surf Excel 0.20 0.17
Everyday Tea Whitener 0.43 0.40
Sunsilk Shampoo 0.78 0.60
Cheaper Small SKUs
enhances consumer
acceptance
34. Retail Margins
Brand Large SKU Sachet
Surf Excel 4.7% 5.5%
Supreme Tea 5.1% 11.1%
Everyday Tea Whitener 8% 8%
Sunsilk Shampoo 9.7% 9.7%
Better Retail Margins on
Small SKUs improves retail
penetration
37. Connect in More Understandable Way
Use local dialects to engage
consumers
39. Trade Engagement Activities
P&G Golden Stores
2% for Displays
Sachet Display Drives
Unilever Project
Interface paying 6-7%
& Perfect Shops for
small stores
42. Wholesale Channel
Playing Dominant Role
Distributor
Wholesellers
These wholesalers supplies product to rural
Retailers retailers. Products supplied included branded &
loose (unbranded items)
Traditional Rural Distribution System
43. Direct Distribution to
Rural Retailers
Distributor
Wholesellers
Retailers Product directly distributed to rural retailers
ensuing product availability & minimizing the
influence of wholesale
Direct Rural Distribution System
45. …which is overcome by
subsidizing rural distributions
Subsidy varies from 50% t0 100%
of expenses
46. Rural Sales Van Costing
Heads Unilever Unilever (Retail Extension
(50% sharing) program 100% sharing)
Rentals (Rs. 700/day @ 25 17,500 17,500
days)
Unilever Subsidizing its
rural distributors
Fuel (Rs. 5/km cost & avg. 50 6,250 6,250
km/day)
Salesman Salary 7,500 7,500 This subsidy varies from
50% to 100% in
Loader Salary 4,500 4,500
(Retail Extension Program)
Total Cost 35,750 35,750
Breakeven Sales (assuming 1,021,428 1,021,428
3.5% avg. dist. margin)
Estimated sub-dist margin 35,000 35,000 This subsidy helps in
( at 3.5% net margin ) (assuming Rs.40,000 (assuming Rs.45,000 sales/day) improving distributors ROI
sales/day)
& numeric expansion
Company Sharing 17,875 (50% cost 35,750 (100% cost sharing) resulting in overall rural
sharing)
stronghold
Net Dist Margin 17,125 (1.7%) 35,000 (3.4%)
An Example Of How Subsidy Helps
49. 2010
21%
Shrinking consumer disposable
income
Maintaing price points becoming
difficult for companies
2009
24%
2008
8% Increasing Distribution cost &
struggling ROIs of distributors
Consumer Price Index
Inflation
50. Attractive Price Points
Surf Excel
promoting
Rs. 15 SKU
Rs.10 sachet contributes
50% plus in surf sales
Decreasing
weight
Rs.10 sachet major
growth driver for
powder creamer
Decreasing
weight
Rs.10 sachet rapidly
growing despite challenges
from smuggled tea
53. In Short… Smaller
Affordable
Inflationary SKUs
pressures Customized
Media
Right
Price
Points
Rural
Marketing Collaborative
… Distribution
Better
Retail
Margins