RURAL MARKETING STRATEGIES

RURAL MARKETING STRATEGIES

Product Price Promotion Physical
Marketing Mix
Is a crucial element of any marketing plan as
it offers marketers a mix of product, services
and prices, utilizes a promotion mix of
advertising, sales promotion, direct marketing
and personal selling to reach the target
customers through distribution of channels
Tools and Challenges
The basic marketing mix tools 4Ps remains the
same in both urban and rural markets, but the
challenges of 4As varies


4Ps Tools 4As Challenges
Product Acceptability
Price Affordability
Place Availability
Promotion Awareness
Contd
Availability : availability of products
Eg: FMCG Company HLL (Coca- Cola) has a strong distribution
system, auto rickshaw, bullock carts. LG- company depot supplies,
twice a week to distributors has 45 area offices and 59 rural office

Affordability : with low disposable income ,
products need to be affordable.
Eg: Godrej Cinthol, Fairglow. Videocons washer without dryer
launched specifically for the rural market, Cost Rs 3000/-

Contd
Acceptability : Gain acceptability for the product.
Need to offer products that suit the rural market.
LG Electronics Sampoorna sold 100,000 sets in the first year.
Coca cola provides low cost ice boxes, that is a tin box for new
outlets and a thermo Cole box for seasonal outlets.

Awareness : advertising media- television,
movies, music. HLL relies on companies media Godrej for
soap products

Product Strategies
PRODUCT STRATEGIES

a company plan for marketing its products

Product Strategies

New Product Designs
Sturdy Products
Brand Name
Small Unit Packing
Low Priced Packing



Components of Product Personality
1. Core of the product
Basic constituent
associated features viz.
Design, Quality, Size
Color, Odors
Performance Safety
1. The core of the Product: Mysore Sandal Soap
combination of luxury & tradition


2. Brand name: Name, Term, Symbol or Design or a
combination of them which is intended to identify goods
and services of seller and to differentiate with
competitors.

Types of Brands

Types Examples

1. Nationality Branded Products Lifebuoy, Lux, Ponds, Nirma,
Colgate

2. Regional Branded Products Nanjangud Tooth Powder in
Karnataka, Ponvandu in TN

3. Locally manufactured Rice, Oil, Food grains, Jaggery
& Unbranded products

4. Imitation products Lite boy (Life buoy), Polons
(Ponds) Narima (Nirma),
Friends & Lovely
(Fair & Lovely)

5. Store / Distributors brand SVC Coffee, Bakery products,
Mothi Bread etc.
3. The Package:

General group of activities in the planning of a product.
These activities concentrate on formulating a design of the
package and producing an appropriate and attractive container
or wrapper for a product.

4. Product Warranty:

An obligation of the producer and seller to stand behind
the product and assure the buyer that he will derive certain
services and satisfaction from the product.

An assurance of the Quality, Service and Performance.






5.Service after sales :

For smooth maintenance and repairs at low charges as well as
quick availability of spare parts and accessories at reasonable rates.

Important selling point helping the customer to take a quick
decision to purchase costly durable goods.




Issues to be resolved in Product plan
Product line
Product mix
Packaging
Labeling
Branding
Service after Sales
PRODUCT CONCEPTS & CLASSIFICATION
1.Based on tangibility : tangible , intangible

2.Based on purpose : consumption,
production

3.Based on functional life : Consumables,
Durables

4. Based on habits : Convenience goods
Shopping goods,
Specialty goods

PRODUCT CONCEPTS & CLASSIFICATION
5. Based on price &quality: Mass product, Premium
product

6. Based on product
development : Innovations, Imitations

7. Based on brand hierarchy level :
Global Brand : Pepsi, Coke
National brand : Godrej, Tata
Regional brand : Sun TV Channel
Local brands: surya masale, Joy chips
Unbranded products: oil, food grains
Commodities: Tamarind, cloves, fish
1 Based on tangibility. Tangible goods -- products
Intangible goods --services
Characteristic Product Services
Tangibility
Separability
Variability
Perish ability

Yes
Yes
Sometimes , customized
Some products

No
No
Yes
Yes

Examples: Product : Soft drinks, office furniture, houses etc,
Services : Repairs, construction services, legal services

2. Based on purpose of use
Purpose Type User Products
Consumption


Production
Consumer
goods

Industrial/
agricultural
goods
Households


Industries
/poultries
Toiletries, cosmetics,
beverages, home
appliances etc

Raw materials,
components,
agricultural inputs &
machinery, animal
feeds etc

3. Based on functional life
Type Nature of use Functional
life period
Examples
Consumables


Durables
Onetime


Lifetime
Short


Long
Food & beverages ,
soft drinks

Furniture,
computers, cars,
camera
4. Based on habits : a. convenience
b. shopping
c. specialty
Goods Product
type
Buyer
envt.
Buy
frequency
Decision Buying place
a.



b.


c.

Consumable



Durables


Durables
Low



Moderate


High
Frequent



Occasion


Once in
life
Simple



Complex


Complex
Paan shop,
cooperative
stores, fairs,
provision store
Fairs, haats,
show rooms,
chain stores
Shops in
towns ,cities
Concept of Product strategy
Long range competitive plan involving
decisions on products, product line and
product mix to make proper utilization of
resources and achieve marketing goals
Significance
Achieves product- market fit
Encourages innovativeness
Provides competitive edge
Makes better use of resources
Scope
Decisions at three levels
Level Strategy
1. Product mix Width extension- new product line
Length extension new product items
Depth extension new product variants

2. Product line Stretching upward, downward
Line pruning line modernization

3. Product item Quality, features, design, brand
Augmentations
Contd
2. Product line
Line pruning :

product lines lend to lengthen over time like rational
grounds or emotional reasons. Both case dead wood will
accumulate. It has to be taken out at periodical reviews.

Pruning may be done when

It is identified that dead wood is depressing profits
It is found that the production capacity is limited and
cannot handle all the existing products
Contd
Line Modernization
When technological developments change the products
This is to be considered when

Timing: Conversion readiness from old to new
Competitors moves
Profitability levels
Approach : when the change be total or a part
Contd
3. Product Item
Core product development (need product relationships)
Tangible product development
Quality- durability, capacity, efficiency, economy, reliability
Features rational, problem solving, fancy, emotional
Design - arrangements of parts
Style - appearance and function
Packaging
Branding
Augmented product development
Contd
Packaging

Primary package : to hold the product
Secondary package : to hold the primary package :
cardboard box
Shipping package : carry the products from one place
to another
Contd
Three levels of appeal by packages

Level Purpose Characteristics Determinants
Sensory Attention Attractive
Distinctive
Visibility
Easy to identify
(shapes, colors)
Emotional Interest
desire
Adoptability
Compatibility
Communicability
Easy to carry
Easy to use
Easy to store (milk, tooth
pastes, creams)
Rational Evaluation Informative
Interactive
Preservative
Economical
Easy to know
Easy to store
Good to reuse
Fair price (glass bottles )
Contd
Branding
Brand concept
Branding policy: To brand or not to brand
Sponsorship
Naming
Branding the need

Contd
Branding arguments for and against
For :
Identify helps processing
Image gives competitive advantage
Personality convinces consumers
Equity enhances value
Against
Investment- returns doubtful
Image and personality an emotional nonsense
Brand equity- sensible but not new
Contd
Brand sponsoring
Manufacturer brand
Distributor band
Brand identity
Name what
Each product to give brand name
individuals with company name: Ponda dream flower talc
individuals without company name: Cinthol, Lifebuoy
Family brand name:
Raymonds - Raymonds for textiles and Park avenue for
shirts, shoes
Associated brand name Usha - fans, sewing machine
Name how?
Easy to use, understand, distinguish
Contd
Augmented Product : needs of consumers
Components of an offer

Product related Service related Channel
Quality
Design style
Features
Packaging
Brand image
Ordering
Deliver and credit
Installation
Customer tracking
Repair & maintenance

Expertise
Performance
Courtesy
Atmosphere
Strategies for marketers
Identity strategies
Commodity strategies vegetables, oil, steels
Branding strategies brook bonds red label tea, LG
Sampoorna
Customer value strategies
Mass product strategies Maharaja appliances Ltd,
Rajdoot 223
Premium product strategies Fair &Lovely, Surf
Innovation strategies
Rural urban strategies - Bajar electricals, Appollo hospital
servicing in rural
Special for rural Nyle Shampoo, Titan watches
Strategies for marketers
Quality strategies
Quality improvement strategies TVS 50 48 cc to 49.9 cc
Spurious goods strategies Lifebuoy-Love boy
Packaging strategies Affordability, usage,
storability, small, combi packs
Brand strategies
Brand extension strategies New Cinthol
Multi band strategy HLL Soaps- Lifebuoy, Lux
Co-branding strategy IBM and Compaq buys Intel chip
and advertise as Intel inside
Brand image/ equity management Onida, Lux
Class discussion
Critically examine the product strategy of
the two regional washing soap brands, in
comparison to one local brand, in rural
markets

Use 4As for analysis

Identify the success and failures of
brands in general.