“CREATIVE MARKETING STRATEGIES:

Sustaining Superior Performance”

by
Prof. Bhushan Manchanda
Associate Professor & Head,
Department of Management Studies

Jagannath International Management School

(Affiliated to Guru Gobind Singh Indraprastha University, Delhi)
NAAC Accredited and ISO 9001:2008 Quality Certified

OCF, Pocket -9, Sector-B

Vasant Kunj, New Delhi-110070

Email:”hodbba2.vk@jagannath.org”,
”bhushan.manchanda@ymail.com
Phone No. : 9899085750, Fax No. 40619333

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 CREATIVE MARKETING STRATEGIES
Sustaining Superior Performance

Peter Drucker:

“Business has only two basic functions -- marketing and innovation”.

Linda Naiman: Associate Business Coach at the University of British Columbia

Creativity is a core competency for leaders and managers and one of the best ways to set
your company apart from the competition. Creativity is characterised by the ability to
perceive the world in new ways, to find hidden patterns, to make connections between
seemingly unrelated phenomena, and to generate solutions.

Sergio Zyman - former Chief Marketing Officer, Coca Cola

“Even when your product is not that different, better or special, it’s the job of the marketer
to make people think it’s different, better or special”

A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best
opportunities to increase sales and thereby achieve a sustainable competitive advantage.

Marketing Strategy consists of the analysis, strategy development, and implementation activities in: “Developing a
vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, and
developing, implementing, and managing the marketing program positioning strategies designed to meet the value
requirements of the customers in each market target”

Here we would review what a creative and effective marketing strategy is –such that even during an economic
downturn or recession when you expect everyone to scrimp on what is not essential, some products still remain
steadfast in the game. How do they do that? Obviously, it is creative marketing that makes it work. Instead of cutting
back on investment on brand recognition, it is best for a business owner to strengthen the brand with creative marketing
strategies at a not so expensive marketing budget.

So let’s look at creative marketing in simple “dating” terms:

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You see an attractive girl at a function. You go up to her and say: “I am very rich. Would you like to have dinner with
me?”
That’s Direct Marketing.

Or perhaps you go up to the same girl and say: “I am very rich. Would you like to have dinner with me!” She then
gives you a nice hard slap on your face.
That’s Customer Feedback.

Or one of your friends goes up to her and pointing at you says: “He’s very rich – have dinner with him.”
That’s Advertising.

Or you go up to her, get her phone number- then you call next day and say: “Hi, I’m very rich – will you have dinner
with me?
That’s Telemarketing.

Or you get up and straighten your suit, you walk up to her and pour her a drink, you open the door and then politely ask
her to dinner”
That’s Public Relations.

Finally the girl walks up to you and says: ”You are very rich – will you have dinner with me?”
Now that’s Brand Recognition.

Many would call sales and marketing strategies the heart and soul of any and every business. This is what a good
manager and a company's management would think of . Regardless which industry the business is seen operating, the
right sales and marketing strategies are very crucial to its success. Finding out or identifying your potential customers
and providing them with the right products, is part of your marketing strategy, while using correct sales strategies will
help you make a profit and earn interest in your products or service provided to your customers.

There are two major components to the marketing strategy:

• how your enterprise will address the competitive marketplace

• how you will implement and support your day to day operations.

In today's very competitive marketplace a strategy that insures a consistent approach to offering your product or service
in a way that will outsell the competition is critical. However, in concert with defining the marketing strategy you must
also have a well defined methodology for the day to day process of implementing it. It is of little value to have a
strategy if you lack either the resources or the expertise to implement it.

In the process of creating a marketing strategy you must consider many factors. Of those many factors, some are more
important than others. Because each strategy must address some unique considerations, it is not reasonable to identify
'every' important factor at a generic level. However, many are common to all marketing strategies.

Let us take the example of Mobile messaging.Mobile messaging has become integral part of our day to day lives.
Before liberalization, the telephone scene in India was poor as the technology we had was obsolete. Now with the
arrival of latest technologies in the market new types of marketing strategies are being developed. One of the latest is
SMS marketing which is far better than telephonic or e-mail marketing. With the help of bulk SMS services, the
company is given a fair chance to send same message to multiple customers. SMS marketing is advantageous for both
the company and its customers –it is economical and it hits the target like a bullet, hence ensures proper and effective
communication.

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Even during an economic downturn when you expect everyone to scrimp on what is not essential, some products still
remain steadfast in the game. How do they do that? Obviously, it is creative marketing that makes it work. Instead of
cutting back on investment on brand recognition, it is best for a business owner to strengthen the brand with creative
marketing strategies at a not so expensive marketing budget.

Your marketing strategy is the way you make sure you’re getting the maximum impact from your limited marketing
budget and time.

Creative marketing strategies do wonders for a business. Some strategies may be classic and some may be outrageous.
The key to a successful creative marketing strategy is customer recall. At this day and age, customers are now ready to
accept even the most out of this world marketing ploy. Even with a small advertising budget, marketing efforts will be
successful as long as they are creative and well thought of.

How to make creative marketing work for your business

Even during an economic downturn when you expect everyone to scrimp on what is not essential, some products still
remain steadfast in the game. How do they do that? Obviously, it is creative marketing that makes it work. Instead of
cutting back on investment on brand recognition, it is best for a business owner to strengthen the brand with creative
marketing strategies at a not so expensive marketing budget.

Your marketing strategy is the way you make sure you’re getting the maximum impact from your limited marketing
budget and time.

The picture on the left is the simplest way to think about it, starting
at the bottom:

• Start with your business goals: these are the highest-level

objectives of the business, or mission statement.
• Next comes the marketing strategy: the high-level rules that
will govern what marketing efforts you focus on.
• After you’ve defined your marketing strategy, you will
define the marketing mix: plans for Product, Pricing, Place
(Distribution), and Promotion.
• Then the final step is writing a marketing plan, which will
describe the specific, detailed marketing activities that you
plan on engaging in to achieve the marketing strategies and
business goals.

Your first step in developing a marketing strategy that drives

significant business results is to make sure you fully understand
your market by doing some research: market size and growth,
competitors, complementors, and customers.

Whatever strategy you use, or if you decide to incorporate both strategies, what is essential is that you know your
products strength and work on highlighting this in your sales and advertising campaigns, as well as the sales and
marketing communications.

Sales strategy and Marketing strategy goes hand and hand. For a business to succeed you should create sales and
marketing strategies that help your business profit.
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Here are some marketing strategies that have been followed by successful organizations:

1. Remain true to your brand. Remember the business you are in the first place. Focus on continuing to educate
your customers on your brand's ideals. The more that it touches their emotions, the better because customers love
that. Your Unique Selling Propositions should be measurable and believable. Take for example the following
brands:

a) Pepsi--- "Yeh dil maange more"-----Such was the effect of this punchline that an Indian army captain after winning a
battle proudly yelled "Ye dil maange more". What drives us to buy Pepsi or Coke? these punchlines.

b) Raymond ---- "The Complete man"--- The Punchline gives the notion that man is not complete unless he wears
Raymond. The possession of Raymond is kind of status symbol, the status of acquiring manhood.

c) Coca Cola ---- " Thanda Matlab Coca Cola" ----- People in India generally refers cold drinks as 'thanda'. So Coke
wanted to give an impression that whenever a customer think of 'Thanda' he should think of Coca Cola. So the
Punchline makes 'Thanda' equal to Coca Cola.

Make small changes that deliver big results. You do not need to use a big chunk of your advertising budget to
improve your sales. In fact, you will just need to make minimal changes. For example, instead of just printing out one-
sided business cards, you can print out and promote your company's services on the other side of the card. You can also
look for other establishments that you can hook up for newsletter article exchanges. Another strategy is to offer
additional services to your customer in exchange for more items.

2. Offer product packages. With product packages, you offer your customers more options and give them value for
their money. You will be able to get more customers since there are packages that will suit their budget. It is best to
have at most three packages to choose from so as not to confuse your customers.
3. Make copywriting for your product powerful enough. Make it real and believable so as not to turn off
customers. The language that you use in your advertisement should be appropriate and easy to understand. Use the
second person style in writing to better engage your customers in what you are trying to offer. Remember to
highlight not just the features of your product but the actual benefits that your customers can get out of it.
4. Put your creative ideas into action. Apply what your creative juices have developed. Your creative marketing
strategy may not be unique to your product at first but you can customize it as you go along with the development
of the plan. To be able to come up with an effective creative marketing strategy, you should not be afraid to go out
of your way and be as different and appealing as possible.

6. Gain customer confidence. Since customers have the tendency to be indecisive, skeptic, or indifferent, your
marketing strategy should address these customer concerns. Creating an image of experience, quality and dependability
and being able to provide excellent customer service will help you gain customers' confidence.

7. Penetrate the awareness of your target consumers. Be heard, be known, be everywhere. The more you are heard
about and known, the greater chances of brand recognition. You can even have marketing online.

8. Instill good feelings about your company. Since purchasing is an emotional decision, it is very important that you
provide the customer with a good feeling about what they are buying and personalized benefits.

9. Impose a deadline. It is important that you set deadline and do not dilly-dally. Create a sense of urgency in your
marketing strategies. Giving your consumers the feeling to take immediate action.

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10. Know that there is a huge range of ideas out there. Do market research so that you can be as creative as you
possibly can. If you truly believe in your products, your sincere enthusiasm would be picked up by your consumers in
your advertising, etc.

Creative marketing strategies do wonders for a business. Some strategies may be classic and some may be outrageous;
you can learn how to effectively implement these strategies by taking in marketing. The key to a successful creative
marketing strategy is customer recall. At this day and age, customers are now ready to accept even the most out of this
world marketing ploy. Even with a small advertising budget, marketing efforts will be successful as long as they are
creative and well thought of.

Strategies of Market Leaders

Sl. The Key Message Executive Summary

No.

1 The Leadership It's better to be the first than it is to be better.

Being first in any category is going to give you the edge – being
first comes from being first. It's much easier to get into the mind of
consumers first that try to convince people you have a better
product or service than the one that did get there first.
Improvements are always made to product/service inventions and
innovations but the first in has a head start. Once you are the
leader, a position mostly gained by being first, it is pretty hard for
competitors to dislodge you, as long as you keep your products up
to date and of comparable quality.

2 The Category
Further, the first in to the market has the opportunity to have its
brand name adopted as the generic category name. Once you are
first and get the consumers to buy your brand, often they won't
bother to switch. People tend to stick with what they've got
If you can't be first in a category, change the nature of the category
or set up a new category you can be first in.

3 The Ladder
4 Duality
5 The Mind and
Perception
6 Focus
7 Extension
The strategy to use depends on which rung you occupy on the
ladder.
In the long run, every market becomes a two-horse race.
Marketing is not a battle of products, it's a battle of perceptions;
and sometimes it's better to be first in the mind than to be first in
the marketplace.
The most powerful concept in marketing is owning a word in the
prospect's mind.
There's an irresistible pressure to extend the equity of the brand.

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8 Exclusivity and Owning a superior position in the customer's mind is vital;
Superiority marketing is a continuous search for exclusivity.
9 Division Over time, a category will divide and become two or more
categories.
10 The Heart (Emotion) Marketing strategies without emotion will not work.
11 Attributes When you have to focus on attributes, for every one of them, there
is an opposite and effective attribute.
12 Candour When you admit a negative, the prospect will give you a positive.
13 Sacrifice You have to give something up in order to get something.
14 Success Success often leads to arrogance, and arrogance to failure.
15 Failure Failure is to be expected and accepted.
16 Unpredictability Unless you write your competitors' plans, you can't predict the
future.
17 Hype The situation is often the opposite of the way it appears in the
press.
18 Acceleration Successful programs are not built on fads, they're built on trends.
19 Perspective Marketing effects take place over an extended period of time.
20 The Opposite If you are shooting for second place, your strategy is determined
by the leader.
21 Origin Where brands come from is often more important than how good
they are.
22 Resources Without adequate funding and expertise an idea won't get off the
ground, and a brand cannot be built.

Success Stories-Creative Marketing Strategies

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Let us now review some of the success stories of various products on account of the creative marketing strategies
adopted by the concerned organizations.

1. The Nirma Story

The best example that comes to my mind is Nirma washing powder that took on the might of the MNC ,Hindustan
Lever Limited (now Hindustan Unilever Limited) way back in the 1970s.

In the early 1970s, when Nirma washing powder was introduced in the low-income market, Hindustan Lever Limited
(HLL) reacted in a way typical of many multinational companies. Senior executives were dismissive of the new
product: “That is not our market”, “We need not be concerned.” But very soon, Nirma’s success in the detergents
market convinced HLL that it really needed to take a closer look at the low-income market.

Starting as a one-product one-man outfit in 1969, Nirma became a Rs 17 billion company within three decades. The
company had multi-locational manufacturing facilities, and a broad product portfolio under an umbrella brand – Nirma.
The company’s mission to provide, “Better Products, Better Value, Better Living” contributed a great deal to its
success. Nirma successfully countered competition from HLL and carved a niche for itself in the lower-end of the
detergents and toilet soap market. The brand name became almost synonymous with low-priced detergents and toilet
soaps.

By 1999, Nirma was a major consumer brand – offering a range of detergents, soaps and personal care products. In
keeping with its philosophy of providing quality products at the best possible prices, Nirma brought in the latest
technology for its manufacturing facilities at six places in India. Nirma’s success in the highly competitive soaps and
detergents market was attributed to its brand promotion efforts, which was complemented by its distribution reach and
market penetration. Nirma’s network consisted of about 400 distributors and over 2 million retail outlets across the
country. This huge network enabled Nirma to make its products available to the smallest village.

Nirma was able to adapt quickly and smartly this philosophy of Jack Welch.” An organization's ability to learn, and
translate that learning into action rapidly, is the ultimate competitive advantage.”

Cadbury’s Marketing Strategy

You may recall the advertisement that was being frequently played in our radio stations and TV channels “Mitha hai
khana Aaj Pehli Tarikh Hai". With this Cadbury was able to get in root of our tradition.

Some families follow the tradition of bringing sweets home on the 1st. of the month-the day salaries are given. Cadbury
has targeted this area now by this creative marketing style.

When you pass an examination what do you do? (We will have a common answer "paide khilao", give sweets to all to
express our happiness). Remember the Cadburys advertisement "PAPPU PASS HO GAYA".

What do you gift on Rakshabandhan? What do you present on Diwali?

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Again the common answer "Mithai","Sweets". Cadbury with its creative marketing strategy has made us replace this
"Mithai" with "Cadbury Celebration chocolates".

Their slogan "Kuch Mitha Ho Jaye" means when you want to eat sweets go for Cadburys chocolates..

Further Cadbury has linked its brand with Friendship Day, Valentine’s day, Mothers Day, Fathers’ Day and such many
other occasions and events.

2. Fevicol’s popularity

One of the main reasons for Fevicol’s popularity is the creative marketing strategy, including successful advertising
campaigns.

Fevicol advertisements over the years have always been remembered. Right from Bob Cristo wrestling with a chair
made of Fevicol, to a politician who is glued to his chair, to the hen that laid unbreakable eggs, to the overflowing bus,
to the joint family that refuses to fall apart, every piece of communication developed by the Company has broken
clutter, increased sales and at the same time entertained the viewer.5.

3. The Micromax Success

The mobile phone segment in the country has witnessed a shakeup as being witnessed in the mobile operator’s
space,where most new entrants are battling for survival.

With a market share of about 60% two years back,the mobile handset leader,Nokia has dropped to 50%. The latest
research report by IDC India has said that among local players, Micromax led with a market share of 8%. IDC also said
that local manufacturers combined, of which the top five being Micromax Limited , Karbonn Mobiles, Spice Mobiles
Ltd, Videocon Industries Ltd and Lava International Ltd have grabbed 17.5% market share from 0.9%, a year back.
Recent reports have also put Micromax’s market share at about 8%, making it the number three player in the country.

How did Micromax,a completely new entrant grab this market share? According to Rahul Sharma, Chief Operating
Officer of Micromax, the largest home grown player, “We identify the requirements of customers and bring out phones
that are fine-tuned to their needs. We are in the game of innovation for the local masses, a parameter that global
companies cannot match. We have proved all critics wrong by establishing a sustainable business model selling over a
million handsets every month,” he said.

Mr. Sharma added that Micromax was focused purely on innovation to increase market share. “Motorola lost the game
because they did not innovate,” he added. On Nokia’s claim that their entry into these segments will impact domestic
players, Mr. Sharma said: “The only segment Nokia was not present was dual SIMs and long battery life. While it took

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them so long to follow us here, we have created several new segments and features for Indian consumers.”Micromax
was the first hand set manufacturer to launch phones with 30 -day battery backup.It’s portfolio of 26 handsets includes
a phone that doubles up as a universal remote for television sets and air conditioners and 23 of them are dual-
SIM.Further Micromax was able to penetrate the volumes markets in rural India –that Nokia has not been able to do
fully till now.

4. SREELEATHERS-the home grown footwear brand

Sreeleathers, the owner of the eponymous value-for money footwear brand that owns the world's largest single-brand
shoe store in Kolkata, plans to open 100 stores across the country over the next two years. Sreeleathers is a 35-store
nationwide chain doing what it set out for when freedom fighter late Suresh Chandra, Dey started it in 1951 at
Jamshedpur to sell durable and affordable shoes to the common man. Its range of shoes starts from Rs. 100 and the
highest priced shoes cost just Rs. 799.

Yet it's big. The Kolkata-based company owns the country's largest shoe store in Kolkata, North India's largest shoe
store in Delhi and South India's largest shoe store in Chennai. The brand is now set to enter cities like Mumbai,
Bangalore and Hyderabad.

Sreeleathers store's name is their brand. This way (by not carrying brand name in products), the Company keeps it’s
overheads down, which ultimately allows them to sell products at a price affordable for everyone.

On an average, their stores have a footfall of around 10,000 customers per day, which goes up to 25,000 during the fes-
tival season. This is almost equivalent to the combined footfall of all the big shoe brand stores in cities like Kolkata.
The conversion rate is almost 80%.

Apart from not using a brand name, another factor that has kept prices of their footwear down is that all their stores are
located on properties owned by them. Hence, they don't have any rent pressure, which invariably goes up when a store
starts performing. It is the same reason why the Company does not believe in setting up stores in malls.

At the same time, our supply chain is such that we just keep a day's inventory. So, there are no warehousing costs. All
our shoes are sourced from a pool of vendors and we don't manufacture anything ourselves. All these factors allow us
to sell products at prices, which if our competitors starts to match, they will run into' heavy losses. Hence, we never run
any discounts at our stores.

Sreeleathers with an annual turnover of Rs. 100 crores is now betting big on footcare. In a move to blend footcare with
its core footwear business, it is set to offer a range of fitness footwear, therapeutic and orthopaedic shoes. In sync with
its corporate strategy of concentrating on middle and low ends of the retail footwear market, Sreeleathers has firmed up
plans to launch a range of speciality footwear at prices which will be much lower than the reputed high-value
international brands in those segments. The company`s foray into footcare is being supplemented with the restructuring
of its showroom formats.
It is this business model which makes Sreeleathers a Case study at IIM Ahmedabad and XLRI.

6. IndiGo-Aircraft purchase deal with Airbus - World Record in commercial aviation history.

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India’s largest low cost airline, IndiGo, signaled ambitions to take on industry leaders Jet Airways and Kingfisher on
Wednesday,12th January,2011with a US $15.6 billion (about Rs 70,000 crore) aircraft purchase deal with Airbus that
marked a world record in commercial aviation history.

The 180-aircraft deal for deliveries from 2016 came less than a month after the carrier displaced Air India to become
the country’s third largest airline with a market share of 17.3%. Jet Airways has a domestic market share of 26.2% and
Kingfisher 19.1% while Air India stands at 17.1%.

Delivery of it’s latest purchase will take place after 100 aircraft from an earlier deal are delivered by Airbus. It
currently has 34 aircraft.

The airline chose an aircraft that promises unparalleled fuel efficiency (A-320 neo) so that it can continue to offer low
fares. The opportunity to reduce costs and to improve their environmental performance through the A-320 aircraft were
key to their purchase decision,

IndiGo, which completes five years in August this year has applied to become an international airline. “We are entitled
to begin international operations from August and are hopeful to do so,” said its President, Aditya Ghosh.

With its international flights and impending fleet expansion, IndiGo can potentially match up to Jet (with a 97-strong
fleet); Kingfisher (66) and AI (100).

How is that a small entrepreneur,less than 5 years old in the Airline industry came to be the country’s 3rd. biggest airline
?

IndiGo took a long-term view of the market and sector growth. India is the fastest growing aviation market in the world
with a growth rate of 15%. China’s aviation is growing at 12%. The country requires 1,000 planes over next two
decades and as airlines start phasing out old planes, the requirement for new planes is huge. IndiGo reviewed the gap in
demand and supply and went allout to tap this market. They had a growth of 12-15% even in the most troubled times.
Since at the same time capacity had not kept pace with this growth- so to sustain this growth, they needed 15% more
planes. With the current fleet strength for the country being 400, there was a need of at least 50-60 planes every year
but that kind of capacity addition was not happening.Therefore IndiGo cashed on this opportunity leading to this US
$15.6 billion (about Rs 70,000 crore) aircraft purchase deal with Airbus.

Indigo closed the last year with 34 aircraft and will end with 14 more air-craft this year, and this will be almost 50%
increase in capacity.They would be flying international by the end of this year. From 221 daily flights currently,
IndiGo is planning 350 flights by the end of the year.

For their international growth plans they will use the A320s and will, in a way, take advantage of this aircraft.
According to IndiGo;s president,Aditya Ghosh “There’s no reason that people should find foreign travel unaffordable,”
while hinting that the airline will break that barrier when it starts international flights from August.

There are enough options open for flying into neighbouring countries, the Middle-East and the SAARC region where
they can easily use this aircraft. Even for smaller cities within the country they are looking for options where A320s
can fly unlike other airlines which have smaller aircraft on order for smaller cities.

IndiGo is so bullish on India’s potential and its growth story that it termed the record order for 180 planes a “drop in
the ocean. “We were not looking to make records or create them and based our order on estimated requirement. The

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fact that we did just that is an accident of history,” Aditya Ghosh said, even as IndiGo’s first order for 100 A-320s in
2005 remains the highest ever by a startup airline.

What IndiGo has done is to take the leaf out of William Bernbach’s quote in Bob Levenson’s book “A History of the
Advertising that Changed the History of Advertising", where he had said "You can say the right thing about a product
and nobody will listen. You've got to say it in a way that people will feel it in their gut. Because if they don't feel it,
nothing will happen."

Lastly Al Ries has rightly said “Marketing is not selling. Marketing is building a brand in the mind of the prospect.”
His other famous quote is “To be a good marketing person you have to know all these tactics, and then you’ve got to
select the right tactic to win your particular battle.”

Rural India as Growth Engine for Marketers

How many know that two-thirds of India's 1.2 billion consumers live in rural India, or that it generates almost half the
national income? In concrete figures, the country's rural consumer market accounted for $425 billion of revenue, in
2009-10, up from $266 billion the previous year. Equally surprising is the news that the number of rural households
with an income of $1,525 has more than doubled from 22 to 46 %, bolstering the spending power of rural consumers.

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The average spending on fast-moving consumer goods is growing faster in rural than in urban markets. It is reported
that rural markets contribute 40 per cent of the total revenue of LG, Hero Honda and Nokia, 50 % of that of Hindustan
Unilever.

Irresistible lure

C. K. Prahalad's inspired vision of a fortune at the bottom of the pyramid is thus being fulfilled in a demonstrable
manner. Villages had always exercised a fascination among Indian academics, economists and policy makers, derived
largely from Gandhiji's dictum about India living in villages. All the allocations under the various plans to bring about
improvements in physical and social infrastructure, networks of banks, marketing facilities, transport and
communications seem to be paying off.

No wonder, the lure of rural hinterland has become irresistible for both Indian companies and multinational
corporations. Companies such as Hindustan Unilever, Colgate and Phillips have been ahead in seeking to exploit the
potential, but in recent years the rural market has become crowded with other impressive brand names such as LG,
Nokia, Samsung, Proctor and Gamble, Voltas, ITC, Pepsico, Sony Ericsson, Motorola and Nestle, to name just a few.
Lakhs of women in rural areas earn a living by selling branded products and thousands of enterprising young men and
women are being enthused to become part of the vast distribution system as a means of starting on the ladder of
entrepreneurship in their own right.

"A bigger shift from agri-business and increased accessibility to smaller towns is helping us take our products in places
where penetration was not thinkable few years ago," said Saugata Gupta, Consumer Business Division CEO of Marico,
the maker of Parachute hair oil and Saffola cooking oil.

West Bengal, Karnataka, Madhya Pradesh, Punjab and Orissa reported 15'-29% year-on-year growth in rural sales
during January-.September10, contributing to more than 26% of total rural sales in the country, according to the latest
Nielsen data.

In contrast, rural sales growth rate halved in Uttar Pradesh and Maharashtra, which between them account for 28% of
the country's rural market.

Now, smaller States are fast catching up, Companies and experts attribute this to a host of macro-economic factors such
as better infrastructure, farm-loan waivers and improved income levels that are stimulating activities in weaker states.

"All signs point to a stronger and more perceptible impact of governmental stimulus in these states, The Nielsen
Company Vice President Prashant Singh said.

Consumer product companies, too, are expanding their distribution reach. Dabur India, for example, has rolled out
special rural focused sales initiatives, in many fast-growing states. The company stepped up distribution reach in 71
high -potential districts penetrating to villages with lower population strata, its CEO Sunil Duggal said. The company
focused on Haat activities and events like Kumbh Mela to woo rural customers and launched a 'Dabur apnaao, Lakshmi
lao' promotional programme for sub-stockists in rural areas.

Emami group has launched 'Project Swadesh' to increase rural penetration. Under the scheme, Emami has appointed
several super stockists who cover a number of rural areas in vehicles. The move has helped the company cut costs and
reduce dependency on wholesalers.

The company also reached out to rural consumers through participation in events like Kumbh Mela, Saawan Mela,
Jatra and wall paintings, Emami Group director Aditya Agarwal said.

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Godrej Consumer Products Managing Director, A Mahendran said that the company is increasing penetration to
smaller states, as the scope to add new consumers is huge there. "Smaller states have woken up economically and it's
reflecting in the increased consumption in those states,” he said.

All those who are entering the rural arena are learning the hard way that the Indian rural consumers cannot be taken for
a ride. They are shrewd and have become value-conscious and good judges of dependability of a company in terms of
the quality of its produce, maintenance of delivery, commitment and after-sales service. Rural markets cannot,
therefore, be used as dumping ground for what is not fast-selling elsewhere, and the rural consumers cannot be duped
with mere advertisement jargon or jingle puffing up a product.

Multiplier effect

Those doing business in rural areas are further discovering that the same strategies, business models and product
designs will not work in both rural and urban markets. They have to be fine-tuned to take into account the rural habits
and customs, frequency of use of products, and differences in cultures and lifestyles. The best advice one can give to
the companies eager to jack up their market share by tapping the rural market is to listen to what rural consumers say
they need by conducting extensive market surveys.

Rural development is not just about raising the quality of life of the rural people and bringing the amenities and
facilities available to them on par with those within the reach of urban dwellers. It has the multiplier effect of boosting
the nation's overall economic growth by enhancing the purchasing power of the rural people and pushing up the
effective demand for goods and products which in turn will lead to higher investments and income-generation. It will
act as a brake against exodus from rural to urban areas, and conduce to better urban management. It will also bring
about social inclusion in the only way that will be durable.

I think the biggest white space in the world is India rural. If you see how big the population is in rural areas, we’re
talking about 800 million people. The kind of growth, the kind of penetration, the kind of consumption in rural areas
is an absolute fraction of what you see anywhere else in the world. Without a doubt the game in the next 10 years is
going to be how you get better in serving the needs of the Indian rural consumer.

In short, rural India holds the key for all round progress and prosperity and the rural India growth story is spreading
with increasing reach of marketers.

CONCLUSION

 Putting plans and strategies together is a lot of work.

 It’s worth it, because this is the way to build sales and make the most of a business’s potential.

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  The organizations must add value by providing people with “value for money” products. Such marketing
philosophy and techniques have paved the way for successful companies today and in the future.

 Further by proper analysis the organizations themselves and the industry in which they reside must add value by
outstanding promotional techniques and targeting the changing trends in their niche of the customers.

References / Bibliography

1. Trout Jack & Reis Al (1997) Marketing Warfare, McGraw–Hill Inc., USA
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2. Kotler Philip (2004), Ten Deadly Marketing Sins, John Wiley & Sons, Inc., USA

3. Kotler Philp and Lee Nancy R (2005) Up and Out of poverty: The Social Marketing Solution, Wharton School
Publishing, USA

4. Grant John (2007), the Green Marketing Manifesto, John Wiley & Sons, Inc., USA

5. Peter Thomas J and Waterman Robert H, (2004), In Search of Excellence, Profile Books, USA

6. Kumar Nirmalya (2004), Marketing as Strategy, Harbard Business Press, USA

7. Ries Al and Trout Jack (1994), the 22 Immutable Laws of Marketing, Profile Books, USA

8. Trout Jack (2004), Trout on Strategy, McGraw–Hill Inc., USA

9. Jobber David & Lancaster Geoff, (2009) Selling and Sales Management, Prentice Hall, USA

10. Reis Al and Trout Jack (1981), Positioning: The Battle for your Mind, McGraw–Hill, Inc, New York, USA

11. Porter Michael (1980), Competitive Strategy: Techniques for Analyzing Industries & Competition, The Free
Press, Simon and Schuster, Inc., USA

12. Iacobucci Dawn (2001), Kcllogg on Marketing, John Wiley & Sons, Inc., USA

13. Kotler Philip (2003), Marketing Insights from A to Z, John Wiley & Sons, Inc., USA

14. Peter Tom & Horan Jim (2010), The One Page Plan for the Creative Entrepreneur, Human Resource
Management, Pr, USA

15. Mustafa A (2009) , Indian Rural Economy, Serials Publications

16. India Brand Equity Foundation,.Indian Economy as updated in December,2010, http://www.ibef.org

Profile of Prof. Bhushan Manchanda

Prof. Bhushan Manchanda is a Post Graduate in English with a Masters Degree in Business Administration from the
Faculty of Management of Studies, University of Delhi.

Prof. Manchanda has over 30 years of Industry experience and has worked in various reputed companies such as
Escorts Limited, Eagle Flask Industries Limited and Usha International Limited- his last stint where he was General
Manager.
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He is a result driven professional with a solid verifiable career track, known for strengthening the organization in
highly competitive market and for delivering innovative market concepts and strategies. He is an excellent
communicator with strong negotiation, problem resolution and client needs assessment aptitude.

He has been a consultant with premier marketing organizations, involved in the conceptualization and strategic
positioning of the products.

As Head of the Department of Management Studies in Jagannath International Management School, he has ushered in a
whole lot of new ideas and concepts that would stand the Faculty members and students in good stead over a period of
time.

His main interests are in the areas of Marketing Strategy and Brand Management, HR, Business Policy and Strategic
Management.

He has written a large number of articles on Marketing, HR, Personality Development, Self Motivation,
Communication Skills, etc. He has 3 blogs viz “bhushan-manchanda.blogspot.com”,
“manchandabhushan.blogspot.com” and“bmanchanda30.blogspot.com”. His articles have been published by various
publications including “The Hindustan Times,” etc.

His articles can also be viewed on “http://www.scribd.com/Bhushan%20Manchanda” and

“http://www.articlesbase.com//bhushan-manchanda”

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