SUNSCREEN

LOTIONS FOR THE

RURAL MARKET

Ragini Sundarraman E002 | Eshan Kapoor E023 | Dheeraj Arora E005 |

Tarun Gupta B022 | Jinkesh Godani
 MARKET OVERVIEW

- Skin care market in India is valued at Suncare Retail Market in India

INR 104 billion in 2016 Year 2014 2015 2016
- Projected to grow at a CAGR of 9% Value (INR) 1729.7 1924.9 2137.
from 2016-2020 6
Value Growth 11.2 11.3 11
(%)
Current Trends
- Seasonal product, with maximum sales occurring during
summer (90%)
- Highly under-penetrated market, with high growth
potential in small towns and villages
- Sunscreen is viewed as a luxury product in rural India
rather than essential

About 51% of sales from sun care products in our

stores are generated from South India, followed by
33% from East India, and 15% from the North
-Venkat Narayanan, Chief Merchandising Officer Spencers
Retail
Ref: http://indiafoodbrief.com/ | www.Euromonitor.com |
 PRODUCT NEED

- Skin cancer constituted 3.18% of patients

registered with cancer of all types
- Majority (88%) of patients were from rural area.
- 92% of patients were directly into the profession
of agriculture
- Very low awareness about the dangers of sun-
exposure and the need for protection in the rural
population

Ref: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4963704/
 ACCEPTABILITY

Herbal variant Sachets Replace SPF with jargon that Rural

India understands
 AWARENESS

16% Newspapers
29% Cinemas
77% TV transmission
KOLs Personalized Audio Visual Aids

Selling 10000 melas/year

Publicity Vans Puppet Shows

Wall Paintings

Posters near post office

Catchy Jingles Folk Dance
 AFFORDABILITY

Psychological Economic
Willingness to pay Capacity to pay

Price will act as the determinant of market demand for the product. Hence, both the economic
as well as psychological affordability needs to assessed before entering the market

Objective: Deeper penetration of the high-potential rural market

Pricing Strategy: Coinage Pricing (Followed by HUL)

- Low or irregular income due to seasonal

nature of work
- More price sensitive than urban
- Earn today, spend today attitude rather
than buying in large quantity
- Focus on small-unit and simple packaging
to improve affordability Price: Rs. Price: Rs. Price: Rs.
Eg: Fair and Lovely 117 20 5
 AVAILABILITY
- Outlets that sell to other Retailers
WHOLESA - Bulk purchasers of Narrow range of products, buy in
LE bundles

- Outlets have a drug license and medical symbol board

CHEMIST outside Rural
named as Chemist/Drug/Medical Store Channels
- Sell Prescription based drugs, OTC and Personal Care
Products
- Outlets that do not fall into the upper channels
OTHERS - These include Kirana/General Stores, Cosmetic
(Shringar) Stores

TRADE OFFER CONSUMER OFFER

Scheme that benefit Retailer directly Scheme that benefit the Customer directly
Construct (In most cases, if TO is active, then Primary Help in improving off-takes
Scheme (Rs/L) becomes inactive)
Free Piece per No. of Pieces Extra Volume
Discounted Net Price Price Off
Type Scratch Cards Free Gift/Lucky Draw
Product Bundling
 MARKETING
STRATEGY
PRODUCT
- Small-sized package
- Use of bright colours
- Emphasize more on functional
benefits of product to resonate with
the
value for money mindset
PLACE
- Use of Distribution Vans to cover
small villages within 50km radius of
towns
- Use of Agro-Input dealers, Co-
operative societies, PDS and town
markets to sell products
PRICE
- Focus on selling SKUs that are at an
acceptable price range, do not
assume that rural India needs
cheap products
- Advertise to influence psychological
affordability rather than economic
PROMOTION
- Leveraging local events for brand
activations and demos of product
- Wall-paintings, comics with catchy
slogans in local languages
THANK
YOU!