product planning in rural areas

PRODUCT PLANNING IN RURAL AREAS

presented BY:-

anjali pandey

RITIKA MEHROTR A

batch(2011-2013)

Ibm (3rd semester)

RURAL MARKET “Rural Marketing can be defined as a function

that manages all activities involved in assessing, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.”

PRODUCT CONCEPT IN RURAL AREASThe product is the most vital element in the

market offering.The acceptance of the product in rural

markets is determined not only by, consumer, needs and wants, but also by the physical and social environment.

LEVELS OF A PRODUCT

POTENTIAL PRODUCT

AUGUMENTED PRODUCT

EXPECTED PRODUCT

BASIC PRODUCT

CORE BENEFIT

MICROMAX MOBILE is an example of rural consumer.Which is launched in 2008, targeted the rural India consumer with its feature- packed, economically priced handsets.

RURAL PRODUCT CLASSIFICATION

FMCG’S GOODS CONSUMER DURABLES

SERVICES

AGRICULTURAL GOODS

FAST-MOVING CONSUMER GOODSFMCG’S or consumables comprises all non

durables goods like toiletries, cosmetics, foods and beverages and foot wears.

These products are consumes quickly and purchased frequently.

CONSUMER DURABLES It includes product like home appliances,

automobiles, watches and furniture. The major durables players in rural markets

are USHA,BAJAJ, PHILIPS, TITAN, GODREJ, VIDEOCON, L.G., SAMSUNG, HEROHONDA etc.

SERVICESMajor services in rural India include

healthcare, telecommunication, information communication technology, banking insurance and education.

AGRICULTURAL GOODSThey are tangible goods used in farm

activities.These includes agricultural goods such as,

seeds, fertilizers, pesticides, insecticides and implements.

PRODUCT DECISIONS IN RURAL MARKETSMarketers have to make product decisions at three Levels:- A. INDIVIDUAL PRODUCT DECISIONS:- This involves decisions related to product attributes,

branding, packaging, labeling, and product support services. B. PRODUCT LINE:- It is a group of closely related product priced within a

certain range, targeted at the same customer group and distributed through the same channel.

C. PRODUCT MIX:- It is a set of all product lines and items offered by a

company. This decision is based on their strategies, like width extension; length extension; line pruning; and depth extension.

NEW PRODUCT DEVELOPMENT

DECISION PROCESS

NEW PRODUCT DEVELOPMENT IN RURAL MARKETSOne important aspect for designing products for rural

market is the product fit with the rural life style and environment.

Examples of new products recently introduced in rural markets are:- PUREIT Water purifier by the Hindustan Unilever,TATA SWACH water purifier and the TATA NANO CAR by TATA.

PRODUCT LIFECYCLE

The Product Life Cycle consists of four stages:- INTRODUCTION:- In this phase the product is introduced in the market.

GROWTH:- This is an important stage where the product is either accepted or rejected by the customer.

MATURITY :- The introduction of the product sees a period of rapid growth when the sales increase.

DECLINE:-Despite the company’s best efforts the growth in sales of the product begins to slow down and plateau.

PRODUCT BRANDING IN RURAL MARKETSA quick study of the popular brands in rural

markets reveals and unusual trends. Rural consumers brand association is mainly

with colors, numbers, and visuals and not necessarily with the name of the brands.

COLOURS:- Lal Sabun (Lifebuoy),Red Battery(Eveready), Brooke Bond Red Label Tea.

NUMBERS: Godrej no.1soap, Brook Bond A1 chai.

VISUALS: Ghari Detergent.

FAKE BRANDS IN RURAL MARKETSFakes are rampant in rural India's a visit to

rural haat or market place, where many villagers purchase their daily needs products, would reveal.

Major brands and products are facing huge problem with spurious products.Ex- BOND’S(for pond’s)TALC, FAIR N LONELY(fair n lovely).

4A’s Challenges in Rural MarketThe basic marketing mix tools 4Ps

remains the same in both urban and rural markets, but the challenges of 4As varies:- 4 P’S TOOLS 4 A’S CHALLENGES

PRODUCT ACCEPTABILITY

PRICE AFFORDABILITY

PLACE AVAILABILITY

PROMOTION AWARENESS

Availability : Availability of products E.g.: 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. Videocon’s washer without dryer launched specifically for the rural market, Cost Rs 3000/-

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.

NEW AVENUES FOR RURAL BUSINESS: SPECIAL NEWS Horticulture, Plantation, Vegetable Growing, Floriculture,

Aromatic and Medicinal Plants, Bio-Diesel Plants etc. for high Investment Opportunities

Post Harvest and Food Processing & Logistics Services

Seed Multiplication & Processing

Diversified Activities: Animal Husbandry, Dairy Farming, Sericulture, Aqua-Culture & Others.

Irrigation Projects & Wasteland Developments.

Agro-Forestry Products

Rural Tourism & Other emerging areas.