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Innovation

Rural markets present both opportunities and challenges for companies. Product and process innovations are needed to address rural needs. Some key innovations discussed are: 1) Developing affordable products tailored for rural consumers like low-cost toothpaste samples. 2) Process innovations like ITC's e-Choupal model which improved supply chain efficiency. 3) Distribution strategies include direct company van sales, outsourcing sales to local representatives, and rural retail models like ITC's choupal sagars. 4) Other innovations focus on finance options, effective rural communication, and technology enabled services through rural kiosks. Examples of successful rural innovations from various companies are provided.

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30 views

Innovation

Rural markets present both opportunities and challenges for companies. Product and process innovations are needed to address rural needs. Some key innovations discussed are: 1) Developing affordable products tailored for rural consumers like low-cost toothpaste samples. 2) Process innovations like ITC's e-Choupal model which improved supply chain efficiency. 3) Distribution strategies include direct company van sales, outsourcing sales to local representatives, and rural retail models like ITC's choupal sagars. 4) Other innovations focus on finance options, effective rural communication, and technology enabled services through rural kiosks. Examples of successful rural innovations from various companies are provided.

Uploaded by

ank1234
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Rural Market innovations

Need for Innovation


Rural market as a new growth avenue
Market potential of more than Rs 1230bn
However, poses challenges in terms of costs,
connectivity, price, promotion etc.
Not a mere extension of urban markets
Types of Innovation
Product Innovation- New
product or service
development, or some
changes in attribute such as
price or packaging
Ex: Low priced sample
packets of toothpastes,
shampoos etc by HUL

Process Innovation- Way in


which an item is produced in
the firm or across the supply
chain. Ex: ITC’s e-Choupal
Innovations in different domains
Innovation in distribution strategy
Outsourcing model of sales
Availability coupled with finance
Rural Retail
Effective rural communication
Technology enabled network
Innovation in distribution startegy

Direct selling through company vans

BPCL’s rural marketing vehicle to fill cylinders

HUL’s project Shakti using Self Help Groups


Outsourcing model of sales
Gram Vidyut Pratinidhis (GVP)-responsible for power
bill collections- for selling FMCG products
Established distribution channel
Well known to rural people
Availability coupled with finance
Loans available to farmers at low EMI’s for installing
solar panels
Large investment required in purchasing solar panels
Rural retail
ITC’s e-Choupal initiative for bringing information,
products and services to farmers
Established a distribution network and then invited
others such as Parachute and Phillips to leverage that
network
ITC’s choupal sagars
Effective Rural Communication
Customised to the needs & ethos of rural India
Message should be simple to comprehend; in local
language; melas to reach masses
Increasing penetration of media
Companies use rural setups to lure rural folk
Ex: Aamir Khan Coke ad; Tata Indicom Ulta Plan ads
Technology Enabled Network
Internet Kiosk to deliver financial services
Most prominent being Weather, health, livestock,
personal accident etc
ICICI bank offering product & services through kiosk
model
offer savings and loan services through these networks
by training the kiosk operator as a credit agent or by
placing an inexpensive ATM at the kiosks.
ATMs installed are user friendly and have instructions in
local languages
Godrej’s Chotu Kool
Eveready- LED Lantern
THANK YOU

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