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
Product
Price
Place
Promotion

4As Challenges
Acceptability
Affordability
Availability
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

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Core of the product

Basic constituent

5. A
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associated features viz.

Design, Quality, Size
Color, Odors
Performance Safety

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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
1. Nationality Branded Products
Colgate

Examples
Lifebuoy, Lux, Ponds, Nirma,

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,

3.Based on functional life

4. Based on habits
Specialty goods

production

Consumables, Durables

: Convenience goods
Shopping 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
Tangibility
Separability
Variability
Perish ability

Product
Yes
Yes
Sometimes , customized
Some products

Services
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

Consumption Consumer
goods
Production

Industrial/
agricultural
goods

User

Products

Households

Toiletries, cosmetics,
beverages, home
appliances etc

Industries
/poultries

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

3. Based on functional life

Type

Nature of use

Functional
life period

Examples

Consumables

Onetime

Short

Food & beverages ,

soft drinks

Durables

Lifetime

Long

Furniture,
computers, cars,
camera

4. Based on habits : a. convenience

b. shopping
c. specialty
Goods

Product
type

Buyer
envt.

Buy
Decision
frequency

Buying place

a.

Consumable

Low

Frequent

Simple

b.

Durables

Moderate

Occasion

Complex

c.

Durables

High

Once in
life

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

1.

Decisions at three levels

Level
Strategy
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

Three levels of appeal by packages

Contd

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

Informative
Interactive
Preservative
Economical

Easy to know
Easy to store
Good to reuse
Fair price (glass bottles )

Evaluation

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

Expertise
Performance
Courtesy
Atmosphere

Ordering
Deliver and credit
Installation
Customer tracking
Repair & maintenance

Strategies for marketers

Identity strategies

Customer value strategies

Commodity strategies vegetables, oil, steels

Branding strategies brook bonds red label tea, LG
Sampoorna
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.

Class discussion

Explain brand image strategies of any two

companies operating in rural areas