Importance of Communication Research Paper Example | Topics and Well Written Essays - 1750 words

Importance of Communication - Research Paper Example With respect to Hindustan Lever Limited (HLL), the company provides great example for understanding that how the market scenario had provided decision makers to understand the problems and opportunities and turn them to innovation. Innovation may rake the shape of a unique product, different methods or new approach of performing business. It arrives from inside of a company. Successful innovations take place by different outlooks and concepts. HLL had put great deal of efforts to develop innovative approaches and increase sales in the rural poor market of India. Generally, the products of multinational companies are targeted for developed market and the price is often beyond the purchasing power of rural citizens. Thus, multinational companies always market their products for the top level customers in poorer nations. HLL seeks to take the opportunity of making products available for poor consumers. They seek to reach to the poor customers by research and development approach. HLL ob served that to sell their products in the rural market of India there is need to shift from traditional media. In India, there were differences in using the television media among poor people and thus there was need for more direct and individual approach to communicate their message to the poor consumers. The main problem HLL faced for selling the products was illiteracy among poor Indian people. The decision makers had recognized that customers need to be educated first to understand the benefits they can get by using HLL products (Achtmeyer, â€Å"Hindustan Lever†). There was a great opportunity in front of HLL as the food market was strong in India. Food accounts for almost half of all commercial consumptions in India. India’s market was characterized by overwhelming national and social diversity. The HLL market researchers had studied the market of India and learned that majority of food purchased by poor people are raw in nature. The food products where made as w ell as sold locally. Each food products such as wheat, rice and salt among others have separate supply chain. As salt was the key input of majority of HLL products, the decision makers had selected salt as prospect for market growth (Achtmeyer, â€Å"Hindustan Lever†). HLL entered in the salt market of India by their new product ‘Kissan Annapuna’ in the year 1995. At that time, 10% of total consumer salt was sold branded. The decision makers had recognized the need for improving the customers’ knowledge. Besides the rural market, the consumers of urban market also purchased unbranded salt. In order to expand their business, HLL concentrated on the urban market to demonstrate the practicality of their branded salt. The demand and production of salt was well in India, thus HLL focused on upgrading the quality of their salt and purity in their products. The major issue for HLL was the price of product as their main competitor was local salt which was inexpens ive. The cost of HLL salt was high because it included the shipping expenses, packaging expenses and refinery expenses that were absent in local products.