Rural marketing in India offers particular difficulties and opportunities due to the distinct characteristics of rural consumers, such as lower purchasing power, diverse cultural backgrounds, and limited access to mainstream media. As a result, companies must adopt specialized pricing and promotional strategies to effectively reach and engage this vast market segment.
Pricing strategies for rural marketing focus on making products affordable and accessible. This often involves introducing smaller pack sizes, value-based pricing, flexible credit options, and installment payment schemes tailored to the financial realities of rural households.
Promotional strategies in rural areas leverage local culture, traditions, and communication channels. Companies employ methods like participation in village fairs, wall paintings, folk media, mobile vans, and collaborations with local influencers to build trust and create product awareness.
Together, these strategies are essential for building brand presence, driving adoption, and achieving long-term success in rural markets. Here’s a detailed yet concise explanation of pricing strategies and promotional strategies for rural marketing in India, with examples and case studies:
A. Pricing Strategies for Rural Marketing
1. Affordable/Low-Unit Pricing
Strategy: Offer products in small, low-priced packs to match rural consumers’ purchasing power.
Example: FMCG companies like Hindustan Unilever (HUL) sell shampoos and detergents in sachets priced as low as ₹1-₹2.
Case Study: Clinic Plus Shampoo sachets by HUL became a rural staple, making shampoo affordable and accessible, driving massive volume sales.
2. Value-based Pricing
Strategy: Price products according to perceived value, often focusing on utility and durability in rural contexts.
Example: Godrej’s “ChotuKool” refrigerator was priced much lower than conventional fridges, targeting rural households needing affordable cooling solutions.
3. Flexible Credit and Installment Payments
Strategy: Enable rural customers to buy on credit or via easy installments.
Example: Mahindra’s “Mahindra Finance” offers tractors and vehicles to farmers with flexible payment plans, boosting adoption.
B. Promotional Strategies for Rural Marketing
1. Local Festivals and Melas
Strategy: Use rural gatherings, fairs, and festivals as platforms for product promotion and demonstration.
Case Study: Coca-Cola organized “Coke Melas” in Uttar Pradesh, where villagers could sample drinks, engage in games, and win prizes, increasing brand awareness and sales.
2. Use of Rural Influencers and Opinion Leaders
Strategy: Partner with schoolteachers, panchayat leaders, and local shopkeepers to build trust and endorse products.
Example:Colgate partnered with village school teachers for oral health education programs, increasing toothpaste adoption.
3. Mobile Vans and Door-to-Door Campaigns
Strategy: Deploy mobile vans for live demonstrations and direct selling in villages.
Case Study: ITC e-Choupal used mobile vans to educate farmers on agri-products and buy-back schemes, boosting both product knowledge and sales.
4. Wall Paintings and Local Media
Strategy: Use wall paintings, local cable ads, and folk media due to low print literacy and limited digital penetration.
Example:Lifebuoy soap uses wall paintings and street plays (“nukkad natak”) to demonstrate handwashing.
Summary Table
Strategy Type
Example/Case Study
Description/Impact
Low-unit pricing
HUL’s Clinic Plus sachets
Affordable, increases penetration
Value pricing
Godrej ChotuKool
Meets rural affordability and need
Installments
Mahindra Finance
Makes durable goods accessible
Local events
Coca-Cola Coke Melas
Drives sampling and engagement
Opinion leaders
Colgate in schools
Builds trust through influencers
Direct campaigns
ITC e-Choupal vans
Education and sales through demonstrations
Folk media
Lifebuoy wall paintings
Effective awareness in low-literacy areas
In summary: Rural marketing in India requires tailored pricing and promotional strategies that fit local needs, purchasing power, and communication channels. Successful brands use creative, affordable, and trust-based approaches to reach and win rural consumers.
वसई-विरार सफाई कर्मचारी हड़ताल क्योंकि उन्हें अभी तक भुगतान नहीं किया गया है, और ठेकेदारों में बदलाव से शहर की सफाई सेवाएं बंद हो जाती हैं। कचरा मजदूर मंगलवार को हड़ताल पर चले गए, जिससे हर दिन चीजों को साफ रखना मुश्किल हो गया है। शहर के कई इलाकों में कूड़े के ढेर लगे हुए हैं।
वसई: वसई में 400 से 500 वी. वी. सी. एम. सी. सफाई कर्मचारियों द्वारा पी. एफ., ग्रेच्युटी और उचित वेतन के लिए हड़ताल की गई क्योंकि उन्हें एक नए श्रमिक ठेकेदार की आदत हो गई थी। सफाई सेवाओं में बाधा आई है क्योंकि श्रमिक मांग कर रहे हैं कि काम पर वापस जाने से पहले उनके अधिकारों का सम्मान किया जाए।
वसई-विरार नगर निगम (वी. वी. सी. एम. सी.) के कई सफाई कर्मचारियों ने अपने लंबे समय से चले आ रहे अनुरोधों को पूरा नहीं करने के विरोध में मंगलवार को वसई में हड़ताल की। विरोध प्रदर्शन में चार सौ से पाँच सौ सफाई कर्मचारी शामिल थे, जिन्होंने कुछ स्थानों पर सफाई बंद कर दी।
वसई विरार नगर निगम (वी. वी. एम. सी.) के सफाई कर्मचारी जो चाहते हैं उसे पाने के लिए मंगलवार को वसई में हड़ताल पर चले गए। तीन सौ से पाँच सौ सफाईकर्मियों ने भाग लिया है। कंपनी द्वारा पुराने के स्थान पर एक नया सौदा किया गया है। लेकिन उन्होंने कहा कि लंबे समय से वहां काम कर रहे श्रमिकों की जरूरतों को पूरा किया जाना चाहिए।
पिछले कुछ वर्षों से वसई विरार नगर निगम ने अनुबंध के आधार पर सफाई का काम करने के लिए हजारों लोगों को काम पर रखा है। वे सड़कों पर झाड़ू लगा रहे हैं, हर दिन कचरा उठा रहे हैं और फेंक रहे हैं, दवाओं का छिड़काव कर रहे हैं और गड्ढों की सफाई कर रहे हैं। लेकिन इन श्रमिकों को मुश्किलों का सामना करना पड़ रहा है क्योंकि नगरपालिका उन्हें सही उपकरण प्रदान नहीं करती है। कई बार अधिकारियों से शिकायत करने के बावजूद कोई कार्रवाई नहीं की जा रही है।
कंपनी ने अब 20 जनवरी को काम पर रखे गए पिछले ठेकेदार का अनुबंध समाप्त कर दिया है। 2025-26 से 2030-31 तक पांच वर्षों के लिए एक नया ठेकेदार नियुक्त किया गया है। इस वजह से नगर निगम ने पहले के ठेकेदारों को अपना काम बंद करने के लिए कहा।
हालांकि, इस आदेश के बाद से, हर दिन शहर की सफाई करने वाले लोगों ने हिंसक आंदोलन शुरू कर दिया है। मजदूर मंगलवार को वसई पश्चिम के साईनाथ नगर इलाके में विरोध करने के लिए इकट्ठा हुए। हमने लंबे समय तक साथ काम किया है। लोगों का कहना है कि नगरपालिका ने अनुबंध बदलकर सफाई कर्मचारियों के साथ अन्याय करने की कोशिश की, क्योंकि हमें अभी तक भविष्य निधि या ग्रेच्युटी जैसे कोई अन्य लाभ नहीं मिले हैं। हमें नए ठेकेदार से कोई समस्या नहीं है, लेकिन हमारे श्रमिकों को जो लाभ मिल रहा है, वह हमें कब मिलेगा? टॉयलेट क्लीनर गीतेश घरत ने पूछा।
हड़ताल के लिए तैयार
विरोध शुरू हुआ क्योंकि नगर निगम ने पुरानी के बजाय एक नई श्रम एजेंसी को काम पर रखने का विकल्प चुना। ठेकेदारों में बदलाव आया है, लेकिन श्रमिकों, जिनमें से कई वर्षों से शहर के साथ हैं, का तर्क है कि पहले उनके अधिकारों और लाभों की रक्षा की जानी चाहिए।
वी. वी. सी. एम. सी. हजारों अस्थायी सफाई कर्मचारियों को सड़कों की सफाई और हर दिन कचरा उठाने जैसे महत्वपूर्ण काम करने के लिए काम पर रखता है। कचरे को उन जगहों पर ले जाना जहाँ इसे फेंका जा सकता है।
कीटनाशकों को लगाना और नालियों की सफाई करना
भले ही वे ये महत्वपूर्ण काम कर रहे हैं, श्रमिकों का कहना है कि उनके पास बुनियादी उपकरण नहीं हैं और उन्हें लंबे समय से समस्याएं हो रही हैं। उनका कहना है कि निगम ने बार-बार उनकी शिकायतों को नजरअंदाज किया है।
नए अनुबंधों को लेकर लड़ाई हुई।
20 जनवरी से, पूर्व ठेकेदार का कार्यकाल समाप्त हो गया, और एक नए को 2025-26 से 2030-31 तक पांच साल के लिए काम पर रखा गया। नतीजतन, निगम ने पूर्व कर्मचारियों को पहले की तरह काम करना बंद करने के लिए कहा।
मजदूर इस आदेश से नाराज थे, और मंगलवार को वे वसई पश्चिम के साईनाथ नगर इलाके में मिले और कहा कि वे क्या सोचते हैं। श्रमिक स्पष्ट करते हैं कि वे नए ठेकेदार के खिलाफ नहीं हैं, बल्कि इस विचार के खिलाफ हैं कि वे समय के साथ अर्जित भत्तों को खो सकते हैं।
कर्मचारियों का बयान
विरोध प्रदर्शन के दौरान सफाई कर्मचारी गीतेश घरत ने श्रमिकों की भलाई के बारे में कई महत्वपूर्ण सवाल पूछे। श्रमिक मांग कर रहे हैं कि उनके भविष्य निधि (पीएफ) और ग्रेच्युटी का भुगतान तुरंत किया जाए, क्योंकि वे कहते हैं कि उन्हें वर्षों से भुगतान नहीं किया गया है। मुख्य मांगों में से एक “समान काम के लिए समान वेतन” है। कुछ लोग उन पूर्व श्रमिकों के बारे में चिंतित थे जो सेवानिवृत्त हो गए थे या अपनी बकाया राशि प्राप्त किए बिना ही उनकी मृत्यु हो गई थी।
विरोध कर रहे श्रमिकों ने कहा, “निगम को नए अनुबंध को अंतिम रूप देने से पहले श्रमिकों को विश्वास में लेना चाहिए था और इन लंबित मुद्दों का समाधान करना चाहिए था।
लोग इस बात से चिंतित हैं कि शहर अब कितना साफ है क्योंकि हड़ताल के कारण दैनिक कचरा संग्रह अभी भी गड़बड़ है। इस बिंदु पर, श्रमिकों ने कहा है कि वे तब तक काम पर वापस नहीं जाएंगे जब तक कि उन्हें उनकी सामाजिक सुरक्षा और अवैतनिक बिलों के बारे में विशिष्ट गारंटी नहीं दी जाती।
ENGLISH TRANSLATION
A strike by city workers makes the city less clean.
Vasai-Virar sanitation workers go on strike because they haven’t been paid yet, and a change in contractors stops city cleaning services. The garbage workers went on strike on Tuesday, which has made it harder to keep things clean every day. There are garbage piles in many parts of the city.
A stop-work strike by 400 to 500 VVCMC sanitation workers in Vasai called for PF, gratuity, and fair pay as they got used to a new labor contractor. Cleaning services have been hampered because workers are demanding that their rights be respected before they can go back to work.
Many sanitation workers from the Vasai-Virar City Municipal Corporation (VVCMC) went on a “stop-work” strike in Vasai on Tuesday to protest not getting their long-standing requests met. Four hundred to five hundred sanitation workers were involved in the protest, which stopped cleaning in some places.
Sanitation workers from Vasai Virar Municipal Corporation (VVMC) went on strike in Vasai on Tuesday to get what they want. Three hundred to five hundred cleaning workers have taken part. A new deal has been made by the company in place of the old one. But he said that the needs of the workers who have been there for a long time should be met.
For the past few years, the Vasai Virar Municipal Corporation has hired thousands of people to do cleaning work on a contract basis. They are sweeping the streets, picking up and throwing away trash every day, spraying medicines, and cleaning out ditches. But these workers are having a hard time because the municipality doesn’t provide them with the right tools. Even though complaining to the officials several times, nothing is being done about it.
The company has now ended the contract of the previous contractor they hired on January 20. A new contractor has been hired for five years, from 2025–26 to 2030–31. Because of this, the city corporation told the earlier contractors to stop their work.
However, since this order, the people who clean the city every day have started a violent movement. The workers got together in the Sainath Nagar area of Vasai West on Tuesday to protest. We’ve worked together for a long time. People say that the municipality tried to be unfair to the safai karamcharis by changing the contract, since we haven’t gotten any other perks like the provident fund or the gratuity yet.
“We don’t have a problem with the new contractor, but when will we get the benefits that our workers are getting?” asked Gitesh Gharat, a toilet cleaner.
Set off for Strike
The protest started because the Municipal Corporation chose to hire a new labor agency instead of the old one. There has been a change in contractors, but the workers, many of whom have been with the city for years, argue that their rights and benefits must be protected first.
The VVCMC hires thousands of temporary sanitation workers to do important jobs like cleaning the streets and picking up trash every day. Taking trash to places where it can be dumped.
Putting down pesticides and cleaning gutters
Even though they are doing these important jobs, workers say they don’t have basic tools and have been having problems for a long time. They say that the Corporation has ignored their complaints over and over again.
There was a fight over new contracts.
With effect from January 20, the former contractor’s term ended, and a new one was hired for five years, from 2025–26 to 2030–31. As a result, the Corporation told the former employees to stop working the way they were.
The workers were angry about this order, and on Tuesday they met in the Sainath Nagar area of Vasai West to say what they thought. The workers make it clear that they are not against the new contractor, but rather the idea that they might lose the perks they have earned over time.
Statement from Workers
During the protest, sanitation worker Gitesh Gharat asked a number of important questions about the workers’ well-being. Workers are asking that their Provident Fund (PF) and Gratuity be paid right away, since they say they haven’t been paid in years. One of the main demands is “Equal Pay for Equal Work.” Some people were worried about former workers who retired or died without getting the money they were owed.
“The Corporation should have taken the workers into confidence and addressed these pending issues before finalizing the new contract,” said the workers who were protesting.
People are worried about how clean the city is now that daily trash collection is still messed up because of the strike. At this point, the workers have said that they won’t go back to work until they are given specific guarantees about their social security and unpaid bills.
In India, contracts can range from simple purchase agreements to complex joint ventures, mergers, or licensing deals. Negotiations are critical because they determine the rights, duties, and remedies of each party, reduce the risk of disputes, and foster trust.
Key Features of Contracts in India
Offer and Acceptance: A valid contract requires a clear offer by one party and its unconditional acceptance by the other.
Consideration: There must be something of value exchanged.
Capacity: Parties must be competent (e.g., of legal age, of sound mind).
Legality: The agreement must be for a lawful purpose.
Examples and Case Studies
1. Reliance Jio and Facebook (2020):
Context: Facebook acquired a 9.99% stake in Jio Platforms.
Negotiation: Intense negotiations were held around price, governance rights, and digital collaboration.
Outcome: A landmark deal that set new standards for tech investments in India, with all terms documented in a detailed share subscription agreement and strategic partnership contract.
2. Vendor Agreement in IT Sector:
Example: Infosys contracts with global clients for software services.
Negotiation Points: Scope of work, payment terms, intellectual property rights, service-level agreements (SLAs), and dispute resolution mechanisms.
Impact: Well-negotiated contracts protect both client and service provider, ensuring project success and legal compliance.
3. Real Estate Lease Agreement Dispute:
Case: Delhi High Court’s ruling in DLF v. MCD (2012).
Issue: Disagreement over lease terms and maintenance obligations.
Learning: Highlighted the importance of detailed negotiations and clear terms to avoid litigation.
Summary: In India, effective contracts and skilled negotiations are essential for business stability and growth. Notable deals (like Reliance-Facebook) and everyday vendor agreements demonstrate how thorough negotiation and clear documentation safeguard interests and reduce risks.
B. Revenue sharing model
Revenue Sharing Model in Contracts and Negotiations
A revenue sharing model is an agreement where two or more parties agree to divide the income generated from a business activity in a specified proportion. This model is widely used in sectors like technology, media, entertainment, franchising, e-commerce, and sports. Revenue sharing aligns incentives, reduces upfront costs for partners, and spreads risk.
Key Features
Percentage Split: Revenue is often split based on a pre-decided ratio (e.g., 70:30 or 50:50).
Scope: Applies to gross or net revenues, and the contract specifies what counts as “revenue.”
Duration: The agreement can be for a fixed term or tied to the lifespan of the venture/product.
Audit Rights: Parties may have rights to inspect books to ensure correct sharing.
Recent Examples and Case Studies
1. OTT Platforms and Film Producers
Example: Netflix & Dharma Productions (2022–2023)
Context: Dharma Productions licensed several films to Netflix India.
Revenue Sharing: Instead of a simple one-time fee, Dharma and Netflix agreed on a model where streaming revenue (from subscriptions/viewership) is shared in a set ratio, incentivizing both to promote the films.
Outcome: Both parties benefit—producers gain recurring revenue, and Netflix shares risk and reward.
2. E-commerce Marketplace Sellers
Example: Amazon India and Small Retailers
Context: Sellers on Amazon India agree to a revenue sharing model, where Amazon takes a commission (ranging from 5% to 25%) on each sale.
Negotiation Points: Commission percentage, payment timelines, promotional costs, and handling of returns.
Case: During the 2023 festive sales, Amazon introduced special revenue-sharing incentives for local artisans under its “Local Shops on Amazon” program, increasing their share for a limited period to boost participation.
3. IPL (Indian Premier League) – Broadcasting Rights
Case Study: BCCI & Broadcasters (2023–2027)
Context: The BCCI sold IPL media rights to Viacom18 and Star India in a multi-billion dollar deal.
Revenue Sharing: Broadcasters and BCCI share advertising and subscription revenue based on detailed contractual terms.
Impact: This model ensures the BCCI gains from the league’s growing popularity, while broadcasters are incentivized to maximize viewership and ad sales.
4. Music Streaming Platforms
Example: Gaana/Saavn & Independent Artists
Context: Indian music streaming platforms share revenue with artists/labels based on streams.
Model: A percentage of subscription/ad revenue is distributed to rights holders, negotiated individually or via collective rights organizations.
Summary Table
Sector
Parties Involved
Revenue Sharing Model
Recent Example/Case Study
OTT & Film
Producer & Streamer
Percentage of streaming revenue
Netflix & Dharma Productions
E-commerce
Marketplace & Seller
Commission per sale
Amazon India & Local Retailers
Sports Broadcasting
League & Broadcaster
Share of ad/subscription revenue
IPL Media Rights (BCCI & Viacom18)
Music Streaming
Platform & Artists/Labels
Pro-rata share of platform revenue
Gaana/Saavn & Indie Artists
In summary:
Revenue sharing models are now central to many Indian business contracts and negotiations, ensuring risk and reward are balanced between parties. These models are increasingly favored due to their flexibility and ability to incentivize long-term collaboration.
B. Minimum guarantee model
The minimum guarantee model is a contractual arrangement where one party (usually a distributor, platform, or licensee) commits to paying the other (often a content creator, producer, or rights holder) a fixed minimum amount, regardless of actual revenue or performance. If revenues exceed the MG, additional profits may be shared according to agreed terms. This model is common in entertainment, publishing, and licensing industries.
How It Works
Upfront Payment: The licensee/distributor pays a non-refundable minimum guarantee to the producer/content owner.
Recoupment: The licensee recovers this amount from future earnings (sales, subscriptions, box office, etc.).
Additional Revenue: If earnings surpass the MG, surplus is split based on a negotiated revenue-sharing ratio.
Risk: The licensee bears the risk if actual revenues are less than the MG.
Examples and Case Studies
1. Indian Film Distribution
Example: A Bollywood producer sells theatrical rights for a new film to a regional distributor for a minimum guarantee of ₹20 crore.
The distributor pays ₹20 crore upfront.
If box office collections in that region exceed ₹20 crore (after costs), the surplus is shared as per contract (e.g., 50:50 split).
If collections fall short, the distributor absorbs the loss.
Case Study: Baahubali: The Beginning (2015)
The Telugu film’s Hindi theatrical rights were sold to Karan Johar’s Dharma Productions with a substantial MG.
Dharma paid a high upfront MG, banking on the film’s pan-India appeal.
As the film became a blockbuster, revenues far exceeded the MG, benefiting both parties.
2. OTT Platform Acquisitions
Example: Amazon Prime Video acquires exclusive streaming rights to a highly anticipated Tamil movie for an MG of ₹30 crore.
The producer receives this amount regardless of the film’s streaming performance.
If the film drives massive new subscribers, the platform can realize greater long-term value, but bears risk if viewership is low.
Case Study: Soorarai Pottru (2020)
Amazon Prime Video reportedly paid a significant MG to acquire worldwide streaming rights, providing financial security to the producers during the pandemic when theatrical releases were uncertain.
3. Music Licensing
Example: A music label sells digital rights for a new album to a streaming service for an MG of ₹5 crore.
The streaming service must pay this sum, regardless of the album’s performance on the platform.
Additional royalties may be paid if streams surpass a certain threshold.
Summary Table
Sector
Parties Involved
MG Application
Example/Case Study
Film Distribution
Producer & Distributor
Upfront minimum for theatrical rights
Baahubali, Bollywood deals
OTT Acquisition
Producer & OTT Platform
Upfront MG for digital rights
Soorarai Pottru, Amazon Prime
Music Licensing
Label & Streaming Service
MG for album/track rights
Major Indian label deals
In summary:
The minimum guarantee model provides financial assurance to content creators and shifts risk to distributors or platforms. It is widely used in Indian entertainment, with successful examples in film and digital content. Thorough negotiation of MG terms and revenue-sharing ratios is crucial to balance risk and reward for both parties.
C. Share in profits model
Share in Profits Model in Contracts and Negotiations
The share in profits model is an agreement where two or more parties agree to split the actual profits generated from a business activity, project, or intellectual property, according to a pre-agreed ratio. Unlike minimum guarantee or revenue sharing, this model focuses on profits (net of costs/expenses), so all parties are invested in both generating income and controlling costs.
How It Works
Profit Calculation: Net profit is calculated after deducting all expenses (production, marketing, distribution, taxes, etc.) from total revenue.
Profit Split: The remaining profit is distributed among stakeholders as per the contract (e.g., 60:40, 50:50 splits).
Alignment of Interests: Both sides are incentivized to maximize profitability, not just gross revenue.
Recent Indian Examples and Case Studies
1. Bollywood Co-production Agreements
Example: Pathaan (2023) – Produced by Yash Raj Films, several distributors and exhibitors entered into profit-sharing agreements rather than flat-fee deals. After deducting costs, profits from box office collections were shared between the producer and key distribution partners, which incentivized both to invest in marketing and maximize earnings.
2. Actor-Producer Partnerships
Example: In recent years, top actors like Akshay Kumar and Shah Rukh Khan have taken a share in profits instead of a fixed upfront fee for certain films. For instance, Akshay Kumar, for Mission Mangal (2019), reportedly opted for a lower upfront fee in exchange for a larger share of profits, aligning his compensation with the movie’s success.
3. OTT Originals (Web Series and Films)
Case Study: Sacred Games (Netflix India) – The production house, Phantom Films, negotiated a profit-sharing arrangement with Netflix, where profits from international syndication and merchandise were shared, not just the initial licensing fee. This encouraged the production team to maintain high quality and cross-promotional efforts.
4. Franchise and Sports Leagues
Example: Indian Premier League (IPL) franchises share profits with team owners, sponsors, and players through bonus pools, especially based on team performance and seasonal profits, ensuring all stakeholders benefit from the league’s commercial success.
Context: Tata Motors, in some strategic partnerships for new vehicle launches, uses profit-sharing agreements with key component manufacturers, especially for electric vehicles.
How it Works: Instead of a fixed payment, suppliers receive a percentage of net profits from vehicle sales. This incentivizes suppliers to maintain quality and innovation, as their earnings grow with the success of the vehicle line.
6.. Pharmaceuticals: Dr. Reddy’s Laboratories & International Licensing Partners
Context: Dr. Reddy’s Labs has entered into profit-sharing arrangements with overseas pharma companies for co-developed or out-licensed drugs.
Details: After deducting manufacturing and marketing costs, profits from drug sales in target markets are split between Dr. Reddy’s and the partner company, ensuring both share rewards and risks.
7. E-Commerce: Flipkart & Private Label Brands
Context: Flipkart collaborates with private label brands on a profit-sharing basis for exclusive product launches.
Mechanism: Instead of buying inventory outright, Flipkart agrees to share profits (after costs) from sales of the product line, encouraging both parties to invest in marketing, quality, and supply chain efficiency.
8. Media & Entertainment: Zee Music & Independent Artists
Context: Zee Music often enters profit-sharing contracts with independent artists for digital releases.
How it Works: After deducting promotion and distribution costs, remaining profits from streams and digital sales are split between the label and the artist, allowing both to benefit from a song’s popularity.
Summary Table
Sector
Parties Involved
Share in Profits Model
Example/Case Study
Film Production
Producers & Distributors
Profits post-expenses split among stakeholders
Pathaan, Mission Mangal
Talent Contracts
Producers & Actors
Actor receives % of net profits
Akshay Kumar, Shah Rukh Khan
OTT Originals
Producers & Platforms
Profit share from syndication/merchandising
Sacred Games/Netflix
Sports/Franchises
League, Franchise, Players
Profits shared as bonuses or dividends
IPL teams
In summary: The share in profits model is increasingly popular in Indian films, OTT, and sports, fostering collaboration, aligning incentives, and maximizing value for all parties involved. Thorough negotiation and transparent accounting are crucial
Company law in India is a specialized branch of law that governs the formation, functioning, and dissolution of companies. It establishes the legal framework that companies must operate within, ensuring transparency, accountability, and protection of stakeholder interests. The primary legislation governing company law in India is the Companies Act, 2013.
Key Aspects of Company Law
Formation and Incorporation: Lays down rules for how companies are legally created, including requirements for directors, shareholders, and capital.
Corporate Governance: Specifies how companies should be managed, including board structure, meetings, disclosures, and audits.
Rights and Duties: Outlines the rights and responsibilities of directors, shareholders, and other officers.
Regulatory Compliance: Mandates regular filings, audits, and disclosures to ensure companies remain compliant and transparent.
Winding Up: Provides procedures for dissolution or closure of a company.
TCS, as a public limited company, strictly complies with the Companies Act, 2013 and SEBI’s listing obligations.
The company’s strong board structure, regular disclosures, and adherence to independent directors’ requirements are exemplary, showing the Act’s impact on governance and transparency.
2. Satyam Scandal (2009): Lessons in Ethics and Law
Satyam Computer Services was involved in one of India’s largest corporate frauds, where its founder admitted to manipulating accounts.
The scandal exposed gaps in regulatory oversight and led to significant amendments in company law, emphasizing stricter auditor oversight and more robust disclosure norms in the Companies Act, 2013.
3. Section 135 – Corporate Social Responsibility (CSR)
India became the first country to mandate CSR spending for certain companies through Section 135 of the Companies Act, 2013.
Example: Infosys, Reliance, and ITC have set up extensive CSR programs in compliance with this requirement, investing in education, healthcare, and rural development.
4. Byju’s (2023–2024): Compliance and Governance
Byju’s faced regulatory scrutiny due to delayed financial reporting and alleged lapses in governance.
The case highlights the importance of transparency, timely filings, and adherence to statutory obligations under company law.
Summary: Company law in India is essential for fostering fair, ethical, and transparent business practices. High-profile examples like TCS and Infosys illustrate the benefits of strong corporate governance, while cases like Satyam and Byju’s show the consequences of non-compliance and unethical conduct. The Companies Act, 2013 continues to evolve, adapting to new business realities and global standards.
B. Registration Procedures and Exceptions
Standard Registration Procedures
In India, company registration is governed by the Companies Act, 2013. The process has become largely digital and streamlined through the Ministry of Corporate Affairs (MCA) portal. Here’s a step-by-step overview:
Choose a Business Structure: Select the appropriate entity type (Private Limited Company, Public Limited Company, LLP, OPC, etc.) based on your needs.
Name Reservation: Apply for name approval via the RUN (Reserve Unique Name) service on the MCA portal.
Obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN): All directors must have a DSC and DIN for digital filings.
Draft Charter Documents: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA).
File Incorporation Forms: Submit the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which integrates registration for PAN, TAN, GST, EPFO, and ESIC.
Certificate of Incorporation: Upon approval, the Registrar of Companies (RoC) issues a Certificate of Incorporation. The company can then open bank accounts and commence business.
Case Study: Zepto (2021): Zepto, a quick-commerce startup, was incorporated as a Private Limited Company using the SPICe+ form. The digital process enabled the founders to register and start operations within days, facilitating rapid expansion and fundraising.
Exceptions and Simplified Procedures
To foster entrepreneurship, certain company types and initiatives enjoy simplified or special procedures:
1. One Person Company (OPC)
What: Allows a single individual to incorporate a company with limited liability.
Exception: Reduced compliance compared to other companies (e.g., no need for annual general meetings).
Example: Many tech consultants and solo entrepreneurs in India register as OPCs for ease and protection.
2. Startup India Recognition
What: Startups recognized under the Startup India scheme get expedited registration, tax exemptions, and relaxed compliance.
Exception: Faster incorporation and self-certification for labor and environmental laws.
Case Study: Razorpay (2014): Recognized as a startup, Razorpay benefited from quick registration and compliance under Startup India, enabling it to focus on innovation and scale rapidly.
3. Limited Liability Partnership (LLP)
What: Hybrid between partnership and company; simpler compliance and lower cost of registration.
Exception: Less regulatory burden than a Private Limited Company.
Example: Many small service firms (consultancies, legal firms) prefer LLPs for flexibility and limited liability.
4. SPICe+ Integrated Form
What: Allows for single-window registration covering company, PAN, TAN, GST, ESIC, and EPFO.
Exception: Reduces paperwork and time-to-incorporation for all company types.
Case Study: Nykaa (2012): Used the then-available digital forms (precursor to SPICe+) for swift registration and compliance, supporting rapid growth.
Summary Table
Procedure/Exception
Description
Example/Case Study
Standard Registration
Name, DSC, DIN, MOA/AOA, SPICe+, RoC
Zepto
OPC
Single founder, reduced compliance
Tech consultants
Startup India
Faster process, tax benefits
Razorpay
LLP
Hybrid entity, easier compliance
Legal/accounting firms
SPICe+ Form
One-stop digital registration
Nykaa
In summary: India’s company registration process is robust yet increasingly simplified, with notable exceptions for new-age businesses and startups. Case studies like Zepto, Razorpay, and Nykaa show how these procedures and exceptions enable rapid, compliant business creation and growth.
C. Company Procedure and Ethics
Company Procedure
Company procedure refers to the formal steps and processes that companies must follow to operate legally and efficiently. These include:
Conducting Board and General Meetings: Proper notice, agenda, and minutes must be maintained.
Statutory Filings: Annual returns, financial statements, and other documents must be filed with the Registrar of Companies (RoC).
Compliance with Laws: Adhering to the Companies Act, SEBI regulations (for listed companies), and other applicable laws.
Maintaining Registers and Records: Companies must keep statutory registers of members, directors, and charges.
Recent Example: Tata Consultancy Services (TCS): TCS consistently demonstrates robust corporate procedures, with timely annual general meetings (AGMs), transparent disclosures, and meticulous compliance with SEBI and Companies Act norms. This has helped TCS maintain investor confidence and avoid regulatory penalties.
Company Ethics
Company ethics refer to the principles of integrity, transparency, fairness, and accountability in business conduct. Ethical lapses can lead to regulatory scrutiny, reputational damage, and legal consequences.
Recent Indian Cases:
Byju’s (2023–2024):
Issue: Byju’s, a leading edtech firm, faced criticism for delayed financial disclosures, aggressive sales tactics, and alleged misrepresentation in its accounts.
Ethical Concern: Lack of transparency and potential misleading of stakeholders led to investigations and loss of trust among investors and customers.
Satyam Scandal (Legacy, but still relevant):
Issue: Satyam Computers (2009) involved large-scale financial fraud, falsification of accounts, and unethical board conduct.
Impact: The scandal prompted reforms in corporate governance and ethics, influencing the Companies Act, 2013.
Zilingo (2022):
Issue: Singapore-based, but with significant Indian operations, Zilingo suspended its CEO over alleged financial irregularities. The case highlighted the importance of ethical leadership and strong internal controls for startups operating in India.
Transparency issues and delayed financial reporting
Ethics
Satyam
Accounting fraud, led to stricter corporate governance laws
Ethics
Zilingo
Leadership suspended over financial irregularities
In summary: Company procedures ensure legal compliance and orderly operation, while robust ethics build trust and long-term sustainability. Recent Indian cases like Byju’s and TCS illustrate the impact—both positive and negative—of following or ignoring these principles.
Company creation is the process by which entrepreneurs formally establish a legal business entity to operate, grow, and scale their ideas. This process involves transforming an innovative concept into a structured organization recognized by law, allowing for organized operations, access to funding, and legal protection for founders.
Key Steps in Company Creation
Idea Validation: Assessing the feasibility and market demand for the business concept.
Choosing a Business Structure: Selecting the most suitable form—such as sole proprietorship, partnership, Limited Liability Partnership (LLP), private limited company, or public limited company—based on scale, liability, and goals.
Legal Registration: Registering the entity with government authorities (such as the Registrar of Companies in India), obtaining necessary licenses, and complying with statutory requirements.
Operational Setup: Setting up banking, hiring, creating operational processes, and launching products or services.
Examples and Case Studies
1. Start-up Example: Nykaa
Background: Falguni Nayar founded Nykaa in 2012 as a private limited company.
Process:
Registered as FSN E-Commerce Ventures Pvt Ltd.
Secured initial funding, set up e-commerce operations, and established partnerships with suppliers.
Transitioned to a public limited company before its IPO in 2021.
Outcome: Today, Nykaa is a leading e-commerce platform in the beauty sector and a publicly listed company.
2. Social Enterprise Example: SELCO India
Background: SELCO was founded to make solar energy accessible to rural India.
Process:
Registered as a private limited company focused on social impact.
Developed partnerships with local banks for financing.
Built a scalable model that combines profit with social good.
Outcome: SELCO has impacted over half a million households and received national and international recognition.
3. Tech Start-up Example: Zepto
Background: Founded by two teenagers in 2021, Zepto started as a quick-commerce grocery delivery company.
Process:
Registered as a private limited company in Mumbai.
Raised venture capital funding.
Scaled operations rapidly across major Indian cities.
Outcome: Zepto became a recognized brand in the 10-minute delivery space and secured significant investment.
Summary: Company creation is a foundational step for any aspiring entrepreneur, providing a legal identity and framework for business growth. Real-world examples like Nykaa, SELCO, and Zepto highlight the diverse ways companies can be created—whether for profit, social impact, or rapid innovation—by following structured steps from ideation to legal formation and operational rollout.
Company Creation
Company creation is the act of legally establishing a business entity. This process transforms a business idea into an officially recognized organization, allowing it to operate, contract, hire, and grow. Common types of business entities include:
Sole Proprietorship
Partnership
Limited Liability Partnership (LLP)
Private Limited Company
Public Limited Company
One Person Company (OPC)
Choosing the right structure depends on factors like the number of founders, liability protection, capital needs, and regulatory requirements.
Processes of Registration and Incorporation
1. Choosing a Business Structure
Select the most suitable type of company based on your needs (e.g., private limited for startups seeking investment).
2. Name Reservation
Choose a unique name and check its availability using the Ministry of Corporate Affairs (MCA) portal. Submit your name for approval.
3. Preparing Documents
Draft the Memorandum of Association (MOA) and Articles of Association (AOA), which define your company’s objectives and internal rules.
4. Obtaining Digital Signatures and DIN
Directors must get Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) to sign documents electronically.
5. Filing Incorporation Forms
Submit all required documents using forms like SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) on the MCA portal. This integrated form covers company registration, PAN, TAN, GST, ESIC, and EPFO registration.
6. Verification and Approval
The Registrar of Companies (RoC) reviews the documents and may seek clarifications or corrections.
7. Certificate of Incorporation
Once approved, the RoC issues a Certificate of Incorporation. Your company is now a distinct legal entity and can commence business activities.
Examples and Case Studies
Case Study 1: Nykaa
Background: Founded by Falguni Nayar in 2012.
Process: Registered as FSN E-Commerce Ventures Private Limited using the MCA portal. Followed all standard steps, raised funding, and later converted to a public company for IPO.
Outcome: Became a leading beauty e-commerce player in India, demonstrating the importance of professional incorporation and compliance.
Case Study 2: Zepto
Background: Quick-commerce startup founded in 2021 by two young entrepreneurs.
Process: Incorporated as a Private Limited Company in Mumbai using the SPICe+ form, allowing quick digital registration and access to investors.
Outcome: Raised significant venture capital and expanded rapidly, showing how robust incorporation enables fast scaling.
Example: One Person Company (OPC)
Context: Introduced in India for solo founders.
Example: A software consultant registers as an OPC for limited liability and ease of compliance, making it easier to contract with larger firms and banks.
Summary Table
Step
Description
Example/Case Study
Structure Selection
Decide between Pvt Ltd, LLP, OPC, etc.
Zepto chose Pvt Ltd
Name Reservation
Propose and get approval for company name
Nykaa reserved unique name
DSC & DIN
Obtain digital signatures and director IDs
Standard for all founders
MOA & AOA
Draft company purpose and rules
Nykaa, Zepto
Filing Registration
Submit SPICe+ and documents on MCA portal
All registered digitally
Incorporation Cert.
Receive legal status and commence operations
Nykaa, Zepto, OPC examples.
In summary: Company creation and incorporation involve structured legal steps that provide a foundation for business growth and credibility. Successful examples like Nykaa and Zepto illustrate how following these processes enables companies to attract investment, scale operations, and achieve industry leadership.
Entrepreneurship routes refer to the various pathways individuals can take to start and grow a business. Each route offers distinct opportunities, challenges, and strategic considerations, allowing entrepreneurs to choose the path that best aligns with their goals, resources, and interests.
Common routes include starting a business from scratch with a novel idea, acquiring an existing business, entering into franchising agreements, engaging in social entrepreneurship to address societal challenges, and practicing intrapreneurship by innovating within established organizations. Understanding these different approaches helps aspiring entrepreneurs identify the most suitable avenue for launching and scaling their ventures, considering factors like industry trends, market needs, and available support systems.
Business Plans and Ideation
Business Ideation is the process of generating creative ideas for a new business, often by identifying problems and designing solutions that can be scaled. This stage involves brainstorming, market research, and evaluating the feasibility of ideas.
Business Plans are structured documents outlining the business idea, target market, competition, marketing and sales strategies, operational plans, and financial projections. A well-crafted business plan helps in securing funding and guiding the growth of the business.
Entrepreneurship Routes
Starting from Scratch: Building an entirely new business based on an original idea. Example: Ola Cabs was built from scratch to solve urban mobility issues in India.
Franchising: Purchasing the right to operate under an established brand and business model. Example: McDonald’s and Domino’s franchises in India.
Acquisition: Buying an existing business and scaling or transforming it. Example: Zomato’s acquisition of Uber Eats India.
Social Entrepreneurship: Establishing ventures that address social or environmental challenges. Example: SELCO India, which provides sustainable energy solutions to underserved communities.
Intrapreneurship: Innovating within an existing large organization. Example: Tata Group’s launch of Tata Neu as a super-app was driven by an internal team.
भारतीय जनता पार्टी के लिए संगठन पर्व केवल एक प्रक्रिया नहीं, बल्कि लोकतंत्र का उत्सव है। जहाँ अन्य दल परिवार-केंद्रित राजनीति तक सीमित रहे हैं, वहीं भाजपा एकमात्र ऐसी पार्टी है, जो बूथ स्तर से लेकर राष्ट्रीय स्तर तक पारदर्शी, सहभागी और लोकतांत्रिक तरीके से अपने नेतृत्व का चयन करती है।
जनसंघ की स्थापना से लेकर भारतीय जनता पार्टी के गठन और अब तक चुने गए राष्ट्रीय अध्यक्षों की परंपरा इस सच्चाई का जीवंत प्रमाण है कि भाजपा में बड़े पद और बड़ी ज़िम्मेदारियाँ किसी परिवार से नहीं, बल्कि परिश्रम, समर्पण, जनसेवा और देशसेवा के आधार पर तय होती हैं।
आज हम वार्ड क्रमांक 2 की बात कर रहे हैं, जहां भाजपा ने विरार पश्चिम ग्लोबल सिटी की सभी चार सीटों पर जीत हासिल की है।
आज हम विरार वेस्ट ग्लोबल सिटी के बारे में बात करने जा रहे हैं। ग्लोबल सिटी जहां भाजपा उम्मीदवार ने ग्लोबल सिटी में ऐतिहासिक बदलाव की नींव रखी एक ऐसी जगह जहाँ लोग अपने जीवन में बदलाव लाना चाहते हैं और इसी वजह से यहां की जनता ने भारी परिपक्वता के साथ भाजपा उम्मीदवार को मतदान किया।
ग्लोबल सिटी की आबादी अपने-अपने क्षेत्रों में कई समस्याओं का सामना कर रही है, खासकर यहाँ पानी की समस्या। यहां लोग मानव की मूलभूत आवश्यकताओं का सामना कर रहे हैं। यहां ग्लोबल सिटी की पूरी आबादी पानी के टैंक पर निर्भर है और इससे दैनिक जीवन में कई समस्याएं पैदा होती हैं। उदाहरण के लिए, पानी के टैंक पर निर्भरता प्रत्येक समाज या प्रत्येक व्यक्ति के भरण-पोषण के खर्च को बढ़ा रही है। इस क्षेत्र में खराब पानी की वजह से लोगों को कई बीमारियों का सामना करना पड़ रहा है और यह ग्लोबल सिटी में एक बड़ी समस्या है।
खराब पानी के अलावा, यहाँ के लोगों को और भी कई समस्याओं का सामना करना पड़ रहा है और यही कारण है कि लोग बदलाव के लिए वोट देते हैं। यहां भाजपा उम्मीदवार ग्लोबल सिटी के आम नागरिकों से वादा किया है कि वे निकट भविष्य में इन सभी समस्याओं का समाधान करेंगे और यही कारण है कि लोग भाजपा उम्मीदवार और उनके वादों पर भरोसा जताते हुए भाजपा उम्मीदवार के पक्ष में मतदान किया।
वार्ड क्रमांक 2 में भाजपा उम्मीदवारों ने चारों सीटों पर शानदार जीत हासिल की है, जो उनके प्रति जनता के समर्थन और उनके वादों को दर्शाती है। यहां लोगों ने भाजपा पर भरोसा दिखाया और भाजपा उम्मीदवार के पक्ष में मतदान किया।
पार्टी सदस्यों, सभी बड़े नेताओं और उम्मीदवारों की कड़ी मेहनत के कारण ही बहुजन विकास अघाड़ी पार्टी के सदस्यों के खिलाफ जीत हासिल करने में मदद मिली। यहां भाजपा उम्मीदवार ने काफी मेहनत की और इसी मेहनत की बदौलत उन्हें वार्ड क्रमांक 2 में भारी बहुमत से जीत हासिल हुई। भाजपा उम्मीदवार और पार्टी सदस्यों के अथक प्रयासों के कारण, जिन्होंने भाजपा के समर्थन में जीत दिलाने के लिए दिन-रात संघर्ष किया, यह संभव हो पाया।
विरार वेस्ट ग्लोबल सिटी वार्ड क्रमांक 02 के सभी विजयी उम्मीदवारों को ondemandnewz.com की तरफ से बधाई।
A jingle is a short piece of music or tune used in advertising or any other commercial use. They are a form of sound branding. A jingle contains one or more phrases that are used in music to make it more appealing and meaningful to promote the product in advertising through many slogans. Jingles are also created using popular songs wherein the lyrics are modified in such a way to match the product for advertising.
Example: a. McDonald’s: I’m lovin’ it.
b. Red Hot: We Deliver Audiencess
Why are jingles important in business advertising?
Easy to remember
A proper jingle is fun and easy to remember. A product will be forgotten by the consumer, as there are tons of advertisements, but with the help of jingles, the product will be remembered by the consumer, as they are short and, most importantly, easily memorable and attractive.
Jingles help you clarify what you have to offer.
Like other advertising methods, a jingle should tell the customers about the product you have to offer them. As attention-grabbing music, a jingle can be used to attract the customers. A well-crafted jingle will ingrain itself into the customers’ minds, compelling them to purchase your product due to its unique features. It will also leave a drastic impact on the public after listening to it.
Attracts customers
Jingles serve another important purpose: they attract customers. A memorable jingle can create an impact in the listener’s mind in such a way that it will create an emotion in the customer towards the product. With a perfect jingle, that is, by providing all the required information to the public, you can create a new customer base for your product.
Creates a lasting notion
A jingle creates an outward appearance in the minds of the customer. Euphony is a very effective tool when it comes to advertising. A memorable tune will create an impact in the mind and so will also create a long-lasting impression. If a brand selects a memorable jingle for its product, it will stay in the audience’s mind for a long, long time.
A tune influences the mind
Music touches us the way no other thing can! By creating a powerful tune, you can easily influence the minds of the public. It can lift anyone’s mood and make them interested in your product. Let the music speak more than your words.
A logo is a graphic mark, emblem, or symbol used to aid or promote public identification and recognition. It may be an abstract or figurative design or include the text of the name it represents, as in a wordmark. A logo is defined as a small symbol or design adopted by an organization to identify its products, uniforms, vehicles, etc.
Role of Logo in Business Advertising:
When advertising a particular kind of business, there are many different types of methods that are used to ensure a brand is properly visible to its highest prospects. Many businesses overlook the power of logos as an advertising method, despite their potential to yield significant results.
Firms use logo designs as commercial enterprises and institutions do to encourage or advance prominence. Throughout the years, logos have been an important part of brand marketing and identity.
Visual representation of a logo can support a brand and effectively communicate its principles and values, commonly referred to as the symbolic benefits of the business. Advertising using logos carries immense importance.
Why are logos important in business advertising?
Creates a corporate personality and trust
brands,Including your brand’s logo in advertising campaigns can build the brand’s corporate personality and trust in the eyes of the customers and public. In advertising efforts, the more the brand’s logo is displayed, the more you will gain the trust of the potential customers and public, which will in turn result in more sales, production, profits, and revenues. Many popular brands like McDonald’s, Pizza Hut, etc., have made their endeavor a great success through their logo showing it via all their advertising methods.
Connects with the customers:
On a personal level, integrating your brand’s logo in the advertisements helps your customers learn about the product on a much deeper level. It is one of the best ways you can connect with the customers and create a positive impact and response from your customers. Your customers need to relate to the product you are selling, and the logo serves this purpose by creating a connection between the business and the consumer.
Long-term advertising
The firm must remember that the product logo will be the brand’s face and foundation for years to come. If the company dislikes the logo, it will be hard to change after it’s made. So one should always think about the long-term advertising when creating a logo for the brand.
Visualizing what the customers will consider
Your logo is your business’s and product’s face, so design it with the customer’s view in mind. Your customer will be the one who relates to your brand and product, so make sure you design it according to what matters most to the consumers.
Comparing other contenders’ logos:
It is always best to know what the contender is doing and how they have designed their brand logo in the same industry. By doing this, it will give you a deeper understanding or a clear perception of what should be and what should not be done while designing your brand logo. The most symbolic logos are the ones with minimal design, less complicated, easy to understand, etc. The easier the logo, the more it creates savviness among the public. When comparing logos, consider the colors, fonts, shapes, and designs used by other contenders, as these elements can make a logo more attractive to the public.
Elemental, yet influential.
To attract customers, you need to create a simple yet influential eye-catching logo to drive their attention to your brand. FedEx is the best example of the logos here. If you closely look at the white space between the E and the X, you can see an arrow. It’s a subliminal message conveying speedy service. So always keep it simple yet intensive.
Businesses like KFC and McDonald’s are all known by their brand’s logo itself. They carry enormous importance, and therefore getting a logo is critical.
The product planning and development process is an idea for a product that can meet a need, deliver a service, or solve a problem. It starts with a known consumer need or with a basic product idea recognized through market research or other sources. The stages can vary depending on the specifics of the market and business. There are eight major steps in the new product development processes.
1. Idea generation
The new product development process starts with idea generation. It refers to the systematic search for a new product. Idea generation is a step of the creative problem-solving process that involves the entrepreneur generating and detailing ideas.
Usually, the process of developing a new product involves identifying a specific audience and determining which needs the product should address. The idea stage is the process of creating a solution to a particular problem. At the end of this step, the entrepreneur will have a list of innovative ideas. However, when an entrepreneur applies many ideas to a particular problem, it requires evaluating each one carefully before implementation.
2. Idea screening
The succeeding step in the new product development process is idea screening. This step is also called screening, and the key point is to set some criteria for new ideas and pick out beneficial ones. In other words, all ideas generated are screened to spot beneficial ones and drop poor ones as soon as possible. The purpose of this stage was to create a large number of ideas, and succeeding stages are to reduce that number. During this product planning process, entrepreneurs need to prove that the idea has a market to sell to.
3. Concept development and testing
After crossing two steps of the new product development process, you need to build a concept and confirm that there is a place in the market for the newly invented product. In this step, the entrepreneur needs to develop new attractive ideas into a product concept. Evaluate the costs of manufacturing, designing, distribution, and others that are required for leading product concepts and testing.
Concept development and testing steps are required to identify the human and capital resources as per the entrepreneur’s need and the essential features that must exist for a functioning product. In addition, begin to break out a potential marketing plan and larger business strategy, including revenues and market share for this product.
4. Marketing strategy development
In the marketing strategy development phase, a promising idea has been established and validated; now, it is time to create an initial marketing plan for the new product, which will be based on the product concept for its market introduction.
5. Business analysis
In this stage, once it finalizes the marketing strategy and product concept, the organization starts assessing the business appeal of the projected new product.
6. Product development
Product development involves the real manufacture and design of the product. It begins with the manufacture of a sample that eases the market testing. Grounded on the results of the tests, the business owner decides on whether to undertake large-scale production or not.
7. Commercialisation
Encouraging results in the product development stage pave the way for large-scale manufacture and commercialization. Here, the organization launches its promotion campaign for the new product. The market research conducted during the formation stage affects the location and timing of the product launch.
