Reason is much in demand in rural markets of Southern India. In 1989 coconut was introduced in Reason for the first time to strengthen the overall skincare appeal of the brand. Reason has now been reluctance with cucumber extracts, in addition to coconut oil and moisturizing milk cream. Its creamy lather purifies the skin, leaving it clear and flawless. It has also been enhanced with a perfume that lingers well after a bath. Fabric Wash The Indian fabric wash market consists of synthetic detergents (comprising bars, powder and liquids) and oil-based laundry soaps.
Some of the big brands in Detergents are Surf Excel, Surf, Ring, Wheel (the number one detergent brand in India, ND HI-Oil’s largest), 501, Sunlight. 1) Wheel. Wheel is Indian’s number one detergent brand. Launched in 1987, it cleans effectively with lesser effort, making a laborious chore like washing light and easy. Moreover, Wheel does not burn hands or harm clothes like some other detergents, which contain a high percentage of soda. Ever since its reliance in 2001, with the new positioning of ‘best clean with less effort’, Wheel has been growing strongly.
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Research showed that consumers seek a solution to heavy duty laundry, like bed sheets and curtains. Developing on this insight, wheel sought to eliminate the trouble of tough art or heavy-duty laundry. Mass market consumer have welcomed the solution, making it the number one Wheel includes under it the following brands:- 1. Wheel Green bar 2. Wheel Active (Blue) bar 3. Wheel Green Powder 4 . Wheel Active (Blue) Powder 2) Surf excel. A pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded. Today Surf Excel offers outstanding stain removal ability on a wide range of stains.
This means that mothers now have the freedom to let their kids experience life without worrying about stains. Surf Excel quick wash is powered with a path- reeking technology-it reduces water consumption and time taken for rinsing by 50%. It is a significant benefit, given the acute water scarcity in most of India. Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf Excel Automatic. So whatever be the need, Surf Excel hi an. 3) Ring. Every Indian woman will tell you how her clothes dazzle with the power of Ring.
The lightning flash mnemonic with the famous baseline ‘Whiteness Strikes with Ring’ is remembered till date. The dazzling flash of light has become a synonym with the brand, ever since this iconic brand was launched in 1969. With the launch of ‘Ring Advanced’, the brand has elevated its relationship with its consumer to a higher plane, reaffirming their faith in the brand, by giving them superior and ingredients are all well linked to cue the overall synergy. The range comes in premium packaging and design. The accent is on “It knows you, and hence knows exactly what your hair needs”. ) Clinic plus. Clinic plus Health shampoo was launched in India in the year 1987. It is Indian’s largest selling shampoo, offering the five most important hair health benefits: strengthens weak hair, prevents hair breakage, softens rough dry hair, shine for thick ND healthy hair, and contains anti-dandruff ingredient. The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for everyday use.
It is also available in 1 RSI Sachets for convenience of rural consumers. 3) Posted. Posted, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing. Posted packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs for themselves. As a follow-up, in October 2002, Posted offered Dental Insurance to all its consumers to demonstrate the confidence the company has in the technical superiority of the product. Posted connects directly with kids and their parents.
Posted has always worked in the direction of an overall awareness of dental health. The reliance campaign in October 2003 widened the context to “sweet and sticky” food and leveraged the truth that children do not rinse their mouths every time they eat, mistreating that this makes their teeth vulnerable to germ attack. Episode’s most recent campaign aims at educating consumers on the need for germ protection through the night. Posted also includes a range of toothbrushes 4) Close up. Close-up is the original youth brand in India – the first brand targeting youth in the oral care market.
Ever since its launch in 1975, Close-up has broken every rule in the book on how toothpastes should behave! Close-up was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. In 2004, Close- up was reluctance with a bang. And this time it was packed with the power of Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger, whiter teeth. Close-up is now the first Gel toothpaste with Fluoride in the Indian Market!
Close-up also includes toothbrushes Skin care The products included in skin care rang are as follows:- 1) Fair n lovely. A woman’s passion for beauty is universal and catering to this strong need is Fair ; Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair ; Lovely was launched in 1978. Fair n lovely is also very popular among the Rural woman’s. It is selling well in rural areas. Fair & Lovely is formulated with optimum levels of IV sunscreens and Niacin amide that is known to control dispersion of melanin in the skin.
It is a patented and proprietary formulation, which has been in the market for 25 years. The IV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum protection against IV rays of the sun. Specifically, this patented formulation offers a high VA protection, which is more relevant to Asian skin than plain SSP protection creams sold n the West. All the active ingredients in the Fair & Lovely formulation function syntactically to lighten skin color through a process that is natural, reversible and totally safe.
The brand today offers a substantive range of products, including Arrived Fair & Lovely Fairness cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness Gel, Fair & Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest has been the Perfect Radiance, a complete range of 12 premium Skin care solutions from Fair & Lovely. 2) Ponds. Pond’s has been synonymous with skin care in India sincerest. The impressive track record of Pond’s began when Thereon the Pond, a pharmacist from Utica New York, introduced ‘Pond’s Golden Treasure’ in 1846, a witch-hazel based wonder product.
In 1914, Pond’s Cold Cream and Vanishing Cream marked the brand’s evolution to a beauty icon. In 1955 Pond’s extract Company merged with Cheeseburger Manufacturing and in 1987 Milliner purchased Cheeseburger-pond’s. By this time the Pond’s brand had built up a powerful international presence. From one man in a tiny home-made laboratory, to today’s state of the art R;D facilities led from Bangkok, Iambi, New York and Tokyo, the Pond’s promise has remained the same across countries – to deliver products that make a real difference to women’s skin and the way they live their lives.
Foods and Beverages The food and beverages includes the following range of products:- 1) Brooke bond. In a nation of tea drinkers, the one brand that signifies tea in India is Brooke Bond – ever since the launch of Brooke Bond Red Label in 1903. It is Indian’s single largest tea brand. It has touched millions of consumers with a range of tea offerings appealing to the diversity of their tastes. It has the strongest foothold amongst any of the tea rand’s in India and touches the homes of over 500 million consumers.
To De- commodities the tea category, Brooke Bond is focusing its efforts on building four powerful sub-brands, namely, Brooke Bond Tag Mall, Brooke Bond Red Label, Brooke Bond Taiga ; Brooke Bond 3 Roses. The range offers a full variety of propositions as well as price points to appeal to various sections. The tea is very popular in rural markets. 2) BUR coffee. Bur, launched in 1969, created history in the first year of launch by growing to a record market share of 21%. Ever since, it has grown from strength to strength. Bur as been instrumental in virtually creating the entire Instant Coffee category as it exists today.
It has been at the forefront of most innovations in the Instant Coffee category – whether in coffee-chicory blends, refill packaging, vending operations, or more recently the Low-unit-price packs. Bur coffee is very famous in rural markets of south. The Bur franchise also includes the Bur Roast ; Ground, Indian’s most popular Roast & Ground Coffee brand, and Bur Malabar Roast & Ground which is available in select geographies. 3) Kinsman. The Kinsman range consists of ketchup and other sauces, Jams, squashes and ready-to- rink products.
For mothers and children, Kinsman is today one of the most trusted brands in the country. Kinsman products also sell in rural markets. Kinsman continues to be a pioneer in the categories that it operates in. 4) Nor Anaphora Salt. Nor Anaphora Salt, first introduced in 1997, was reluctance minion with a breakthrough technology, patented in India and several other countries. This technology helps encapsulate iodine with salt. It thereby prevents the loss of iodine from salt, either during its storage and transportation or cooking. Iodine deficiency is a serious health issue in India.
About million people are at risk of iodine deficiency disorders. Iodine deficiency not only leads to goiters, but also has an impact on the mental development of growing children. The International Council for Control of Iodine Deficiency Disorders (COCCID) has endorsed Nor Anaphora Salt. Nor Anaphora has also taken initiatives to educate consumers about the benefits of iodine and its effect on the mental development of growing children. In 2001, it was fortified with iron and vitamins. The benefit is very relevant because over 60% of women and children are iron deficient.
The brand is doing well in Rural market Pricing strategy of HI-JELL. Hindustan Lever has taken many initiatives over the decades to create markets in the rural hinterlands. By marketing relevant products, at affordable prices. HULL aims at providing rural consumer a price which is acceptable and affordable by them. HULL adopts low unit pricing as it targets rural consumer. It sells products mostly in the price range of 1 RSI -IRS. HULL has adopted a strategy which offers rural consumer Volume point to Price point packages mostly priced at RSI 10 as it is better connected to Rural consumer.
The strategic price point of HULL is RSI and RSI 10 and the price at Hess points are not hiked even with an increase in price of products. If products have to come up the order in the rural purchase hierarchy, they have to be affordable. If rural India today accounts for about half of detergents sales, it is because HULL has developed low-cost value-for-money branded products, like Wheel. The company has also taken initiatives to create markets even for apparently premium products, by offering them in pack sizes, like sachets, whose unit prices are within the reach of rural consumers.
Pricing helps in synchronizing the expenditure of the Indian consumers with his daily stream of income. For example, initiated in the sass, sachets (RSI. 2, Re. L , or 50 paisa) today constitute about% of Hindustan Lever’s shampoo sales. With media reach gradually increasing, rural consumers today, where the media has its footprints, share the same aspirations with their urban counterparts. HULL has responded to the trend with low unit price packs of even other products as follows;- Lax at RSI. 5, Life buoy at RSI 2 Ponds cold cream at RSI 5 Promotion strategies of HI-JELL.
HULL follows various media mix of conventional and Non-conventional media for promotions of its products in the rural markets. Hindustan Lever has taken initiatives to circumvent the limitation in communication channels, by innovative leveraging non-conventional media. Among them the most commonly used forms of media by HULL are wall paintings, cinema vans, weekly markets (hat), fairs and festivals etc. The various forms include following:- 1 . Advertisements through T. V. And Radio which provides a wider coverage of consumers. 2. Wall painting that are used to capture the attention of the audience and is an economic medium.
It uses wall paintings for its products as Wheel, Lifebuoy etc. The wall painting of Lifebuoy is displayed. . Cinema theatre’s and vans as rural consumers fascinated by cinema and it has great impact on them and a wider reach. The cinema vans show popular movies, interspersed with products advertisements 4. Puppet shows where the puppets are used to communicate the ideas and values to rural consumer and is an inexpensive medium. 5. Folk theatre is used for informing and educating people about some products through Tambala’s, skits and plays. 6. Weekly markets, fairs and festivals are parts and parcel of rural life.
They give an opportunity to address consumers, spread over many tiny hamlets, at one location. . Demonstrations are done about products at various occasions which are used to demonstrate product benefits and also sell such products. Such demonstrations have played significant role in creating, for example, the detergents market in rural India. In recent times, such demonstrations are being deployed by HULL to illustrate how visible clean is not hygienic clean, and how using soap is essential to prevent easily avoidable infections. Communication through fairs and festivals are backed by direct consumer contact.
For Egg: in 1998-99, Hindustan Lever implemented a major direct consumer contact, ladled Project Brat, which covered 2. 2 core homes. Each home was given a box, at a special price of RSI. 1 5, comprising a low unit price pack of shampoo, talcum powder, toothpaste and skin cream, along with educational leaflets and audio-visual demonstrations. The project has helped eliminate barriers to trial, and has strengthened salience of both particular categories and brands. In 2002, Hindustan Lever has launched a similar large-scale direct contact, called Lifebuoy Swastika Cheetah, which already covers 70 million people in 18,000 villages of 8 states.
The reject is intended at generating awareness about health and hygiene practices and specifically how a simple habit of washing hands is essential to maintaining good health. The initiative involves interaction with students and senior citizens who act as change agents or opinion leaders that influence rural consumer. The programmer has as of now covered about 15000 villages in 8 states – Attar Pradesh, Briar, Shorthand, West Bengal, Arioso, Madhya Pradesh, Chastiser and Maharajah’s; it has already touched about 70 million people, imparting hygiene education to over 25 million children.
Distribution strategies of HI-JELL. In rural India particularly, availability determines volumes and market share, because the consumer usually purchases what is available at the outlet, influenced very largely by the retailer. Hindustan Lever Limited has a distribution network which is one of their key strengths that helps them reach their products across the length and breadth of this vast country. To meet the ever-changing needs of the consumer, HULL have set up a distribution network that ensures availability of all its products, in all outlets, at all times.
This includes, maintaining favorable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. Therefore, over the decades, Hindustan Lever has progressively strengthened its distribution reach in rural India, which today has about 33 lake outlets. Direct rural distribution in Hindustan Lever began with the coverage of villages adjacent to small towns. The company’s stockiest in these towns were made to use their infrastructure to distribute products to outlets in these villages.
But this distribution mode could only be extended to villages connected with motor able dads, and it could cover about 25% of the rural population by 1995. The evolution of HI-Oil’s Distribution Network:- The first phase of the HULL distribution network had wholesalers placing bulk orders directly with the company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected. The company salesman grouped all these orders and placed intent with the Head Office. Goods were sent to these markets, with the company salesman as the consignee.
The salesman then collected and distributed the products to the respective wholesalers, against cash payment, ND the money was remitted to the company. The focus of the second phase, which spanned the decades of the sis, was to provide desired products and quality service to the company’s customers. In order to achieve this, one wholesaler in each market was appointed as a “Registered Wholesaler,” a stock point for the company’s products in that market. The company salesman still covered the market, canvassing for orders from the rest of the trade.
He would then distribute stocks from the Registered Wholesaler through distribution units maintained by the company. The Registered Wholesaler system, therefore, increased the distribution each of the company to a larger number of customers. The highlight of the third phase was the concept of “Redistribution Stockiest” (RSI) who replaced the Rows. The RSI was required to provide the distribution units to the company salesman. The RSI financed his stocks and provided warehousing facilities to store them. The RSI also undertook demand stimulation activities on behalf of the company.
The second characteristic of this period we realized that the RSI would be able to provide customer service only if he was serviced well. This knowledge led to the establishment of the “Company Depots” system. This system helped in transshipment, bulk breaking, and as a stock point to minimize stock-outs at the RSI level. In the recent past, a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents (C&Fast). The C&Fast act as buffer stock-points to ensure that stock-outs did not take place.
The C&FAA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery. The most important benefit has been improved customer service to the RSI. The role performed by the Redistribution Stockiest has also undergone changes over the years. Financing stocks, providing manpower, providing service to retailers, implementing promotional activities, extending indirect coverage, reporting sales and stock data, screening for transit damages are some of the functions performed by the RSI today. HULL has grown manifold over the years.
In the process, the number of factories and the number of SKU too have increased. In order to rationalize the logistics and planning task, an innovative step has been the formation of the Mother Depot and Just in Time System (MD-SIT). Certain C&Fast were selected across the country to act as mother depots. Each of them has a minimum number of SIT depots attached for stock requirements. All brands and packs required for the set of markets which the MD and SITS service in a given area are sent to the mother depot by all manufacturing units. The SITS draw their requirements from the MD on a weekly or bi-weekly basis.
At present, Hull’s products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockiest covering about one million retail outlets. The distribution network directly covers the entire rural population. In addition to the ongoing commitment to the traditional grocery trade, HULL is building a special relationship with the small but fast emerging modern trade. Our scale enables us to provide superior customer service including daily servicing, improving their range availability whilst reducing inventories.
We are using the opportunity of interfacing more directly with our consumers in this retail environment through specially designed communication and promotions. This is building traffic into the stores while yielding high growth for our business. An IT-powered system has been implemented to supply stocks to redistribution stockiest on a continuous replenishment basis. The objective is to catalyst HI-Oil’s growth by ensuring that the right product is available at the right place in right quantities, in the most cost- effective manner.
For this, stockiest have been connected with the company through an Internet-based network, called RSI Net, for online interaction on orders, dispatches, information sharing and monitoring. RSI Net covers about 80% of the company’s turnover. Today, the sales system gets to know every day what HULL stockiest have sold to almost a million outlets across the country. RSI Net is part of Project Leap, HI-Oil’s end-to-end supply chain, which also includes a back-end system connecting suppliers, all company sites and stretching right up to stockiest.
RSI Net has come as a force multiplier for HULL Way, the company’s action-plan automatism the number of outlets reached and to achieve leadership in every outlet, by unshackling the field force to solely focus on secondary sales from the stockiest to retailers and market activation. HULL Way has also led to implementing best practices in customer management and common norms and processes across the company. Powered by he IT tools it has further improved customer service, while ensuring superior availability and impacting visibility at retail points.
HIGH, has been at the forefront of experimenting with innovative methods to reach the rural consumer. 1) Indirect coverage Under the Indirect Coverage (DC) method, company vans were replaced by vans belonging to Redistribution Stockiest, which serviced a select group of neighboring markets. 2) Operation Harvest The reach of conventional media and, therefore, awareness of different products in rural markets is weak. It was also not always feasible for the Redistribution Stockiest o cover all these markets due to high costs involved. Yet, these markets are important since growth opportunities are high.
Operation Harvest endeavored to supplement the role of conventional media in rural India and, in the process, forge relationships and loyalty with rural consumers. Operation Harvest also involved conducting of product awareness programmer on vans. 3) Cinema van operations These are typically funded by the Redistribution Stockiest. Cinema Van Operations have films and audio cassettes with song and dance sequences from popular films, also comprising advertisements of HULL products. 4) Single Distribution Channel For rural India, HULL has established a single distribution channel by consolidating categories.
In a significant move, with long-term benefits, HULL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockiest. It has already appointed 6000 such sub-stockiest. As a result, the distribution network directly covers about 50,000 villages, reaching about 250 million consumers. Project Shasta Hindustan Lever is implementing Project Shasta since 2001, whereby She are being offered the option of distributing relevant products of the company as a sustainable income-generating activity.
The model hinges on a powerful win-win relationship; the SSH engages in an activity which brings sustainable income, while Hindustan Lever gets an interface to interact and transact with the rural consumer. Distribution acquired a further edge with Project Shasta, HI-Oil’s partnership with Self Help Groups of rural women. The project, started in 2001, already covers over villagers in 52 districts of Andorra Pradesh, Karakas Madhya Pradesh and Gujarat, and is being progressively extended. The vision is to reach over 100,000 villages, there by touching about 100 million consumers.