FMCG India Retail in Tamil Nadu.

Rural India contributes 36% to overall FMCG spends and has historically been growing 3-5% The overall FMCG market clocked a value growth of 7.3% in Q3 of 2019 compared with a 16.2% growth in Q3 of 2018. points faster than urban.

Key factors on rural marketing in Tamilnadu.

These are national brands like ITC, HLL, Britannia, Marico, gsk and Similar….

Then there are state specific players like Cavin care,cholayil group, Lion dates, Rajah, Anil, Aachi, Shakti masala,Manna, A2B, ELITE, NAGA among the long list.

Then there are area specific players like Durga in salem and erode region in Tamil Nadu who has a premium quality, premium pricing and demand is so much so that you need to book one week before by paying full cash advance.

Their price is atleast 15% higher than the national players like ITC and Unilever.

Rajah aata, from Kajah FMCG
Rajah Aata and semiya is a prominent player
Anil semiya had introduced several health options and millets based foods

Durga semiya caters to a very small market yet they charge a premium and consumers willing to pay

Then There are local players and bulk suppliers. What is otherwise called loose sales. Or unorganised retail.

Other key factors in rural FMCG retail.

“Power of local connect-The people in that area may know the owner or they may have a nostalgic connection with the brand.

Some Companies might not have changed their formula or taste for several years and is still Continuing for eg rkg and kalimark and maybe dashprakash or Dinshaw ice cream.

This 84 year ghee brand has been dominating the ghee market in Tamil Nadu and Kerala let's not forget this is a flavoured ghee not cow ghee.

RKG is a prominent player in South Indian ghee market despite being a flavoured ghee and not cow ghee.

RKG ghee most popular ghee in South, since 1934, it’s a flavoured ghee not cow ghee.Other popular ghee brands in Tamil Nadu are
Bovonto

A classical case is that of bovinto from kalimark that have made even multi national like coco cola beverages to introduce their version of a product that is directly competing with bovinto from kalimark and interestingly coco cola named it “colour” highly debatable name for a soft drink as colour is not a good word as far as food is concerned, yet coco cola decided to go ahead with name colour because that is a local slang which consumers of bovinto use to ask for the product “oru colour kotungal” which means get a bottle of colour.

Besides the key factors mentioned above there are few key pointers are

Service.

Since there are so many brands that have come and gone so there is always doubts in the mind of shopkeepers if they would get service from such companies as2 always.

So they keep a track on how often the company visit the market and if they are convinced that this company visit every week then the shopkeepers confidence increase and along with this if companies come up with attractive scheme they will definitely take your product.

Service also includes taking back unsold stock replacing it with new and movable stock and a mentality of excellent after sales support is very important for regional players which most national and multinational companies does not offer.

Distributor tactics

Another important observation is that a whole sales distributor split the SKU of same company and send different sales guys on different days selling the same category of product. For example a biscuit distributor of Britannia biscuit send one sales guy for tiger biscuits and send another sales guy for milk bikis this is done so that the shopkeepers has different person to deal with and different dates for payments and not all is spend on the same agency.

Vehicle branding is another key marketing visibility to the company if the shopkeepers observe your vehicle with your products displayed is moving through that route more often then they will stop your vehicle and ask for your products so even if you run an empty vehicle with your brand and product logo displayed then you can create brand recall and product enquiry.

Report by

Hisham Kabir

ifcc@outlook.com

Celebrity endorsements works in regional markets, plus vehicle branding is a great brand visibility

Published by Hisham Kabir

Hisham is an MBA from MET, Mumbai and an alumnus of Symbiosis Institute Of Business Management, Pune, with a Management Deveoplemt Programme (MDP) on Sales Management from The Indian Institute of Management (IIM) Kozhikode, have worked with public relations division of Uniliver in Mumbai handling brands like Surf, Rin & Sunlight detergents. Formerly Chief Operating Officer of Ideal Caterers (family business established in year 1984) a leading outdoor caterer in Kochi and having services in Trivandrum and Kottayam. Hisham is the first Entrepreneur to successfully incubate out from CIFT Business Incubation Cell (A Govt Of India Enterprise) Hisham have ventured into food processing sector by launching a ready to cook curry paste with brand name "Freedom Kitchen" using technology from DFRL (Defence Food Research Laboratory in Mysore) with a vision to change the way indian domestic kitchen would operate. All aspects of brand design & development for the brand "freedom kitchen" from concept, brand naming, colour selection,brand story, Barcode GS1 formalities, to copyright to vertical package designing and print development was independently handled by him. Hisham was key accounts executive at Kerala's leading advertising agency stark communications. An avid automobile enthusiast with a passion for advertising, have conducted an exhibition on the world’s most celebrated advertising campaign titled the History of Volkswagen Beetle ads, at the Durbar Halls Arts Gallery in Ernakulam and at MET Campus Mumbai. He is also a guest faculty at various management institutes in Kerala and Tamil Nadu. He talks on entrepreneurship, advertising strategies, and business management. He has given guest talk to management students at Rajagiri Institute Of Management, Amrita Business School, Coimbatore, MET Mumbai, TKM Institute of Management, to name a few.

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