INNOVATIONS FOR RURAL

MARKET
PRINCIPLES

Speed of Innovation-The period from the conception of a

product to delivery at the retailer's shelf has to be
shortened.Organisations will have to find ways to
anticipate,meet and exceed customer needs faster than
before.
Scale of Innovation- Solutions that are developed must
be scalable across regions,cultures and languages with
slight modifications as per variations in different parts of
India.
Process Innovation- must focus on building a logistics
infrastructure & manufacturing in accordance with the
prevailing conditions & can deliver solutions in a cost
effectivemanner.eg-e-chaupal of ITC & Project Shakti-HLL

Product Innovation-should be based on functionality & not

just form.New technologies need to be developed to make
the product relevant to the rural consumers as their product
use environment is different from urban consumers.The
product developed for the rural market must withstand
dust,unhygenic conditions and abuse.

Price Innovations- A product meantfor rural market must

eliminate or reduce the various recurring costs & thus should
reduce resource intensity.The option of reuse,refill and
recycle are critical principles in product development for the
rural market.
-Market strategists must ensure that prices of products are
reduced either through re-engineering,cost savings in
operations,investments in tax havens,reduction in pack
sizes,no frills on the product etc,without compromise on
quality and service.

Promotional Innovation-Education of customers on

product

Usage is the key.Innovations in educating a semi ileterate

group on the usage of a new product can be challenging.
-Promotional campaigns such as video mounted on trucks &
travelling low cost theaterical productions need to be
undertaken for promotional steps in rural areas.