market strategy reference with rural market

MARKET STRATEGY

REFERENCE WITH RURAL MARKET [

TOOPRAN]

14/12/2013 1M.KIRAN KUMAR(leader) GROUP B

14/12/2013 M.KIRAN KUMAR(leader) GROUP B 2

objective1.What is Market.2.Classification of Market on basis of 1)Time 2)Place 3)Competition

3.Rural Market and Varies Aspects in it.

4. 4P”S in market competition.

5.Objectives Related to Seller and Consumer.

6.Casestudy related to Toopran Market [Ideas].

7.Questions Related to Presentation


Market means a place where buyer

and seller meets together in order to

carry on transactions of goods and

services.

"Market refers to arrangement, whereby buyers

and sellers come in contact with each other

directly or indirectly, to buy or sell goods."


Classification of Market


1.Sellers and buyers

Large number of sellers and

buyers

Are in the perfect competition

2.Entry Free entry in perfect

competition

3.Tax Low tax

4.Transport costs No transport cost in perfect

competition

5.Products Number products are available

6.Government Involvement Less Involvement including

permission and low tax

7.Product Differentiation There respective changes from

product to product

8.Economy of scale As per wish of seller


Rural Marketing :-

MeaningPlanning & Implementation of marketing

functions for Rural Areas

DefinitionRural marketing has been defined

as the process of developing, pricing,

promoting, distributing, rural specific goods &

services leading to exchange between urban &

Rural markets, which satisfies consumer

demand & also achieves marketing objectives


Companies will have to innovate profusely if

their product and services have to be acceptable

Rural consumers

Washing machines will have no use for rural consumers when

they do not have either electricity or running water washing

machines will have to be powered differently.

Rural consumers buy diesel in bulk to run their

water pumps, Harvesters and tractors it is helpful

if their vehicles also run on diesel.14/12/2013 8M.KIRAN KUMAR(leader) GROUP B

Consumer durable products and vehicles have to be designed very differently for rural market. Companies who want tomarket in rural areas have to Start on a clean slate through innovation.

There are several grassroots innovators in India with revolutionary Products that people in rural areas want.


The Multi-national companies(MNCs) placing new

demands before the farmers in terms of the crops

varieties and quality required.

If the farmers want to work with them, and make more

money out of farming.

This is being driven through contract farming, joint

ventures, leasing of land, And extension to the loosely

contracted farmers in a given area.

In some crops, MNCs are directly competing with the

farmers, forcing them to become agribusiness men who

use modern and better inputs. 14/12/2013 10M.KIRAN KUMAR(leader) GROUP B

The whole approach to farming is undergoing

change with the globalization of rural production

processes and privatization of various systems.

There is also competition from substitutes like bio-

fertilizers and bio-pesticides in fertilizer and pesticide

market respectively.

Therefore ,competition is to be understood in a more

strategic sense of buyers, suppliers, new entrants,

substitutes and existing competitors


Marketing effort for manufactured consumer goods as

well as agricultural Inputs in rural areas is constrained by

the following:

High distribution costs:

High initial market development expenditure:

Credit facility

Inadequate infrastructural facilities such as

connecting roads,media availability etc.


As part of “Advertising experience” advertisements

influence the Viewers beliefs and attitude and are the

most effective means to Facilitate a positive feeling

about any brand.

As part of “shopping experience” the shopping

environment created while Purchasing a product also

helps form an attitude about the product.

As part of “consumption experience” the feelings during the

consumption of a Product influence the consumer’s post

consumption evaluations. Consumptions are more satisfied if

consumption leads to positive feelings.


5.Objectives Related to Seller and Consumer.

Marketing objectives define what you want to accomplish through your

marketing activities. There are several important factors to consider when establishing effective marketing objectives.

SMART Approach


S=Setting specificM=measurableA= achievable,R=realisticT=time


•Specific - Need to understand the latest preferences of

customers in the identified segments and appropriately target each stationary item such as pens, exercise books, roolers, and calculators to maximize sales volumes

•Measurable - Current market share is 20%, will set a target

of 30% market share, meaning we need an extra 10%, market share amounts can be established based by monitoring the overall value of sales in terms of dollars

•Achievable - Ensuring technical competency and commitment of

all personnel involved in the development and implementation of strategy. This can range from having an experienced and knowledgeable marketing team to capable sales staff. Access to funding is also necessary for the acquisition of extra stock to fulfill increased demand.


•Realistic - The objective is realistic as

the marketing resources are in place to conduct

the segmenting and targeting exercise and

access to the extra stock required

•Time Specific - The increase in market share is to be achieved within 12months, a regular progress update will be taken every month to track level of success


The marketing mix and the 4 Ps of marketing are often

used as synonyms for each other. In fact, they are not

necessarily the same thing.

"Marketing mix" is a general phrase used to describe the

different kinds of choices organizations have to make in

the whole process of bringing a product or service to

market. The 4Ps is one way – probably the best-known

way – of defining the marketing mix, and was first

expressed in 1960 by E J McCarthy.

4P”S in market competition


The 4Ps are:

•Product (or Service).

•Place.

•Price.

•Promotion.


1.Product/Service1.What does the customer want from the product/service? What needs does it satisfy?2.What features does it have to meet these needs?3.Are you including costly features that the customer won't actually use?4.How and where will the customer use it?5.What does it look like? How will customers experience it?6.What size(s), color(s), and so on, should it be?7.What is it to be called?8.How is it branded?10.How is it differentiated versus your competitors?11.What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below).


2.Place•Where do buyers look for your product or service?

•If they look in a store, what kind? A specialist boutique

or in a supermarket, or both? Or online? Or direct, via a

catalogue?

•How can you access the right distribution channels?

•Do you need to use a sales force? Or attend trade fairs?

Or make online submissions? Or send samples to

catalogue companies?

•What do you competitors do, and how can you learn

from that and/or differentiate?


3.Price1.What is the value of the product or service to the buyer?

2.Are there established price points for products or services

in this area?

3.Is the customer price sensitive? Will a small decrease in

price gain you extra market share? Or will a small increase

be indiscernible, and so gain you extra profit margin?

4.What discounts should be offered to trade customers, or to

other specific segments of your market?

5.How will your price compare with your competitors?


4.Promotion•Where and when can you get across your marketing messages

to your target market?

•Will you reach your audience by advertising in the press, or on

TV, or radio, or on billboards? By using direct marketing mail

shot? Through PR? On the Internet?

•When is the best time to promote? Is there seasonality in the

market? Are there any wider environmental issues that suggest

or dictate the timing of your market launch, or the timing of

subsequent promotions?

•How do your competitors do their promotions? And how does

that influence your choice of promotional activity?14/12/2013 23M.KIRAN KUMAR(leader) GROUP B

Strengths (S) Weaknesses (W)

•Excellent sales staff with

strong knowledge of

existing products

•Good relationship with

customers

•Good internal

communications

•High traffic location

•Successful marketing

strategies

•Reputation for innovation

•Currently struggling to

meet deadlines - too much

work?

•High rental costs

•Market research data may

be out of date

•Cash flow problems

•Holding too much stock

•Poor record keeping

Internal environment


External environment

Opportunities (O) Threats (T)

•Similar products on the

market are not as reliable or

are more expensive

•Loyal customers

•Product could be on the

market for Christmas

•Customer demand - have

asked sales staff for similar

product

•Competitors have a similar

product

•Competitors have

launched a new advertising

campaign

•Competitor opening shop

nearby

•Downturn in economy may

mean people are spending

less


1.What is perfect competition.

2.What you understand from and explain the 4Ps in

market strategy.

3.What you understand the SMART Analysis.

4.What you understand the SWOT Analysis.

5.Give any 3 demands are given by any seller in rural

market.

6.Why MNCs are placing various demands before the

farmers.


market strategy reference with rural market

Business

rural market toopran

rural market companies

kiran kumarleader group

market competition

acceptable rural consumers

rural consumers whenthey

rural specific goods

urban rural markets