Levers to open school; pupils potential buyers

out reams of figures that point at only one conclusion – villages are where the next consumer products battle would be fought. In fact, Unilever, its parent company, has attained a 20 per cent jump in its sales in China through aggressive marketing in villages. The company’s rural foray in China too started with improvement in primary education there.

Irfan Khan, General Manager (CorporateCommunication) of HLL, says the Chinese market witnessed a boom due to a high level of primary education. Unilever, the parent company, believes that the awareness about hygiene and the switchover from cheap soap to detergents are closely linked to the level of education and that people with good primary education are more likely to purchase better quality soaps and detergents than those without a sound ground in basic education. “Education will expand the market…it’s then upto individual players in this sector to capture there share,” says Khan.

But will the marketing theories crystallised in China work in India? “Wherever the level of education is high, more people use products like soaps. We are not in the business of education and the Khamgaon school is just an experiment. If it succeeds we may duplicate it in other parts of the country,” says Khan, adding that “it is not a part of our marketing strategy. The general assumption is that with high level of primary education, awareness about hygienealso grows.” And as awareness grows people replace ash pots with soap holders and sheekakai with shampoos. Though Khan would not say this, it is obvious that his company faced with some intense competition is trying to penetrate new markets.

HLL is locked in an intense marketing war with two other consumer products majors Procter & Gamble and Colgate. And of course there are several smaller names, which boast of a stronger rural distribution networks and brand loyalties too. As things stand today HLL dominates the Indian soap market with a 70 per cent share (5.3 lakh tonnes per year).

But the company faces a big handicap here in rural markets – with the level of education in villages being what it is, how would it convince a man to brush his teeth with Close-Up instead of coal powder or make his wife switch from Nirma to Surf. Their answer is – schools. Though the company would not use the schools to directly push its products, it’s hoping the awareness brought by education would make people choose itsproducts.

The level of literacy in India is around 52 per cent but in many villages the literacy level is well below the national average. In states like Kerala where the literacy rate is high, HLL has a good market share in almost all the consumer products. In states like Bihar with poor literacy, the sales figures are not so attractive.

As the work on HLL’s school begins in a few months, it would be one institution whose results would be closely watched by the Indian corporate world.