PowerPoint Presentation

RURAL MARKETING STRATEGIES1RURAL MARKETING STRATEGIESProductPricePromotionPhysical2Marketing MixIs 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 channelsTools and ChallengesThe basic marketing mix tools 4Ps remains the same in both urban and rural markets, but the challenges of 4As varies

4Ps Tools4As ChallengesProductAcceptabilityPriceAffordabilityPlaceAvailabilityPromotionAwarenessContdAvailability : 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/-

ContdAcceptability : 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 StrategiesPRODUCT STRATEGIES

a company plan for marketing its products

Product Strategies

New Product DesignsSturdy ProductsBrand NameSmall Unit PackingLow Priced Packing

8Components of Product Personality Core of the product Basic constituentassociated features viz. Design, Quality, Size Color, Odors Performance Safety 2. Brand Name3. The Package5. After Sales Service4. Warranty91. 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. 10Types of Brands

Types Examples1. 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 brandSVC Coffee, Bakery products, Mothi Bread etc.113. 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.12

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.

13Issues to be resolved in Product planProduct lineProduct mixPackagingLabelingBrandingService after SalesPRODUCT CONCEPTS & CLASSIFICATION1.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 & CLASSIFICATION5. Based on price &quality:Mass product, Premium product

6. Based on product development:Innovations, Imitations

7. Based on brand hierarchy level : Global Brand : Pepsi, CokeNational brand : Godrej, Tata Regional brand : Sun TV Channel Local brands: surya masale, Joy chips Unbranded products: oil, food grainsCommodities: Tamarind, cloves, fish1 Based on tangibility. Tangible goods -- products Intangible goods --servicesCharacteristicProductServicesTangibilitySeparabilityVariabilityPerish ability YesYesSometimes , customizedSome products

NoNoYesYes

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

2. Based on purpose of usePurposeTypeUserProductsConsumption

ProductionConsumer goods

Industrial/agricultural goodsHouseholds

Industries /poultriesToiletries, cosmetics, beverages, home appliances etc Raw materials, components, agricultural inputs & machinery, animal feeds etc

3. Based on functional lifeTypeNature of useFunctional life periodExamplesConsumables

DurablesOnetime

LifetimeShort

LongFood & beverages , soft drinks

Furniture, computers, cars, camera4. Based on habits : a. convenienceb. shoppingc. specialtyGoodsProduct typeBuyer envt.Buy frequencyDecisionBuying placea.

b.

c.

Consumable

Durables

DurablesLow

Moderate

HighFrequent

Occasion

Once inlifeSimple

Complex

ComplexPaan shop, cooperative stores, fairs, provision storeFairs, haats, show rooms, chain storesShops in towns ,citiesConcept of Product strategyLong range competitive plan involving decisions on products, product line and product mix to make proper utilization of resources and achieve marketing goalsSignificanceAchieves product- market fitEncourages innovativenessProvides competitive edgeMakes better use of resourcesScopeDecisions at three levelsLevelStrategyProduct mixWidth extension- new product line Length extension new product items Depth extension new product variants

Product lineStretching upward, downwardLine pruning line modernization Product item Quality, features, design, brand AugmentationsContd2. Product lineLine 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 profitsIt is found that the production capacity is limited and cannot handle all the existing productsContdLine ModernizationWhen technological developments change the products This is to be considered when

Timing: Conversion readiness from old to newCompetitors movesProfitability levelsApproach : when the change be total or a partContd3. Product ItemCore 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 developmentContdPackaging

Primary package : to hold the productSecondary package : to hold the primary package : cardboard boxShipping package : carry the products from one place to anotherContdThree levels of appeal by packages

LevelPurpose CharacteristicsDeterminantsSensoryAttentionAttractiveDistinctiveVisibilityEasy to identify(shapes, colors)EmotionalInterest desireAdoptabilityCompatibilityCommunicabilityEasy to carryEasy to useEasy to store (milk, tooth pastes, creams)RationalEvaluationInformativeInteractivePreservativeEconomicalEasy to knowEasy to storeGood to reuseFair price (glass bottles )ContdBrandingBrand conceptBranding policy: To brand or not to brandSponsorshipNamingBranding the need

ContdBranding arguments for and againstFor :Identify helps processingImage gives competitive advantagePersonality convinces consumersEquity enhances valueAgainst Investment- returns doubtfulImage and personality an emotional nonsenseBrand equity- sensible but not newContdBrand sponsoringManufacturer brandDistributor bandBrand identity Name whatEach product to give brand name individuals with company name: Ponda dream flower talc individuals without company name: Cinthol, LifebuoyFamily brand name:Raymonds - Raymonds for textiles and Park avenue for shirts, shoesAssociated brand name Usha - fans, sewing machine Name how?Easy to use, understand, distinguishContdAugmented Product : needs of consumersComponents of an offer

Product relatedService relatedChannelQualityDesign styleFeaturesPackagingBrand imageOrderingDeliver and creditInstallationCustomer trackingRepair & maintenanceExpertisePerformanceCourtesyAtmosphereStrategies for marketersIdentity strategiesCommodity strategies vegetables, oil, steelsBranding strategies brook bonds red label tea, LG SampoornaCustomer value strategiesMass product strategies Maharaja appliances Ltd, Rajdoot 223Premium product strategies Fair &Lovely, SurfInnovation strategiesRural urban strategies - Bajar electricals, Appollo hospital servicing in ruralSpecial for rural Nyle Shampoo, Titan watchesStrategies for marketersQuality strategiesQuality improvement strategies TVS 50 48 cc to 49.9 ccSpurious goods strategies Lifebuoy-Love boyPackaging strategies Affordability, usage, storability, small, combi packsBrand strategiesBrand extension strategies New CintholMulti band strategy HLL Soaps- Lifebuoy, LuxCo-branding strategy IBM and Compaq buys Intel chip and advertise as Intel insideBrand image/ equity management Onida, LuxClass discussionCritically 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 discussionExplain brand image strategies of any two companies operating in rural areas