ruralmarketing sem 04

8/18/2019 Ruralmarketing SEM 04

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Unit I

Introduction to rural market : Ruralmarket- profle- characteristics o a

rural consumer – Opportunities andchallenges rom rural markets- ake

encounters in rural areas..


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Rural marketing

• It is oten said that markets aremade, not ound. This is especiallytrue or the rural market o India


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Uran and rural market

• !hat di"erentiates the t#o markets isnot mere income, ut a host o otherinrastructural and socio- cultural actors.

• Thus, the rural market cannot e tappedsuccessully #ith an uran marketingmindset and #ould defnitely re$uire the

thorough understanding• In India rural marketing has emerged asan important in marketing discipline


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%eaning o Rural

• &ollin's couild dictionary descriesthe #ord rural as (places or a#ayrom to#ns or cities)

• *ociology point o +ie# rural isdefned as a group o people #ho aretraditionalists inout look, rooted in

the land and #ho resist change.


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• The census o India defnes rural as

that #hat is not uran and uran is – locations #ith in a municipalitycorporation

– other location that satisy the ollo#ing

criteria• .minimum population o ,///

• 0. at least 12 o male #orkorce engagedin non- agricultural acti+ities

• 3. a population density o o+er 4// personper s$.km.


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• 5ach e6perts comes #ith di"erent defnition

• Rural to 7industan le+er may not necessarilye rural to 8hilips or 5lectrolu6 or someodyelse in terms o marketing and marketingcommunications

• 9 electronics defnes all cities other thanthe se+en metros or rural semi-uran areas.

• Thereore, it +arious rom company to

company and is also ased on thecalculation o market potential +al+e ;%8


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Rural marketing

• In simple #ords, is planning andimplementation o marketing unctionor the rural areas.

• It is a t#o-#ay marketing process#hich encompasses the discharge ousiness acti+ities that direct the >o#

o goods rom uran to rural areas;ormanuactured goods= and +ice-+ersa;or agriculture produce=


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• R.%arketing has also een defned asthe process o de+eloping, pricing,promoting, distriuting rural specifc

goods and ser+ices leading toe6change et#een uran and ruralmarkets, #hich satisfes consumer

demand and also achie+esorganisational o?ecti+es ;Iyer=

t t t


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actors erent at ng ruramarketing rom uran

marketing• Inrastructure a+ailaility :electricitysupply, fnance acility, educationle+el, roads connecti+ity

• Income streams : in rural areas in isseasonal and highly unreliale,consumption pattern is $uite di"erent

• 9ie style: daily routine o consumersis di"erent


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• &onte6t : ecause o +ariation in

inrastructure and income , an indi+iduale6ists in rural areas is di"erent

• *ocio – cultural ack ground :+aluesystem, goodsser+ices and

consumption in general is $uite di"erent

• Accessiility : the cost and logistics ishigh

• %edia reach and haits: di"erent typeso promotional strategy in these t#omarkets.


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• Bature o competition : the natureand intensity o competition amongstthe rands is +ery di"erent in the

t#o markets

• &onsumer eha+iour : theconsumer's response to marketing

stimulate di"ers #idely in t#omarkets


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Rural India : A Crie profle

• Adi odre?, chairman, odre? group . (the rural consumer is discerning and therural market is +irant. At the current

rate o gro#th, it #ill soon outstrip theuran market. The rural market is nolonger sleeping ut #e are)

» &ont..


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•


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• Cut the rural market is not

homogeneous across the country• The consumer #illingness to accept

inno+ation also +aries among the

rural market• A rie description o rural India

– Rural income distriution

– %agnitude o po+erty in rural India – 8o+erty alle+iation programmes and

rural de+elopment


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– Rural consumption

– Relationship et#een agriculture, ruralincome and consumption

– 9iteracy in rural india

– 5lectricity a+ailaility in rural india – 5lectricity a+ailaility in rural india

– Ge+elopment indicators in rural india


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• A) Rural income distribution

• In generating more than hal o thenational income

• .D2 contriution to the national

income y 14.D crore rural population• Cut per capita income is lo#

• The annual household income or

rural areas in 0//0 #as Rs D,D3/ ascompared to Rs ,/0,FD3 in uranarea


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8er capita income in ruraland uran areas


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• Gi"erent economic profle ordi"erent regions, districts and +illage

• There cannot e a single

generalisation on the asis o incomeor the entire rural India

• The marketer has to segment this

huge market according to his productprofle and then select his targetmarket.


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• B) Magnitude of poverty in rural india

• Analyses the phenomenon o po+ertyand its spread in rural india

• 8o+erty is measured in terms oproportion o population li+ing elo# thepo+erty line

• 8o+erty line is de+eloped y putting aprice on the minimum re$uired

consumption le+el o ood, clothing,shelter, uel and health care

• I&%R FE


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• 0,// calories or uran areas

• 8er capita monthly e6penditure#orked out to Rs 4F./F rural and RsD.D4 or uran ;F13-14=

• As o decemer 0//, monthly amilye6penditure is Rs ,E4/ or a amily of+e in rural areas and Rs 0,1F inuran areas

• 30. crore Indians li+ed elo# po+ertyline -3 o the country population


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• The percentage o C89 population+aries signifcantly rom one state toother ;e6= orissa 4E2, 8un?a D2

• Thereore ormulating strategies orthe rural market cannot ede+eloped on the asis o all India

fgures

• Regional +ariations must e taken


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• C) Poverty alleviation programmes

• These include (gram sadak Ho?na'-pro+iding uran amenities in ruralareas

• Bational rural employment guaranteeact

• a#ahar roJgar yoJra schemes

preerence to *& and *T ,and 3/2employment opportunities arereser+ed or #omen


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• D)Rural consumption

• @%& Rs D,/// crore

• 8er capita e6penditure on education yuran households #as 4, times y rural

households• Uran spend t#ice on health compare to

rural

• Uran rental house f+e times more that

rual area

• 40 million, rural, - 01 million, uran – a+ailanking ser+ices


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• E) relationship between agriculture

rural income and consumption• The agriculture sector's a+erage

annual gro#th ell to .F42, ut the

@%& gro#th #as around 02• etting less depended on agriculture

income


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• !iteracy in rural india"

• The rural literacy le+el has impro+ed inthe recent past rom 3D2 to F2

• 2reported at least secondary education

• Electricity availability#---• Almost D2 had an electricity connection

in 0//

• F/2 o rural households in pun?a andgoa are electrifed

• 02 ?harkhand, /.32 in Cihar


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• $) development indicators in ruralindia

• Cringing do#n the po+erty le+el rom2 to 3D2

• Ranked 3Eth as per the humande+elopment report


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• Number of Towns and Villages inIndia

• %tem &ear 'umber

• Bo. o to#ns 0// ,D

• Bo. o +illages 0// KD4/,///

• (ource Census of %ndia *++,-• 'ote . Appro/imate


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'ature and characteristics of therural mar0et

= large and scattered mar0et

• 1 crore rural consumers #ho li+e inappro6imately – D,3E,3D +illages

• 032 ha+e population less than 0//

• 02 ha+e population et#een 0// and//

• *o #idely scattered- raisetransportation costs, a"ects the +iailityo the distriution system


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• 0 ) 1eterogeneous mar0et

• Bot a homogeneous• 04 languages and D40 dialects- +aries

e+ery // km

• GiLcult to de+elop uniorm message –caste, community, tradition +alues ;romstate to state, region to region di"er=

• 8un?a Cihar;per capita income=• 0,/4E4DD

• D0 330;FD=


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• uence

• 9iteracy rate in rural south India is

higher than rural north• Rural consumers in the south are

more rand conscious

• *o, +ariations in eha+iour due to theconsumer en+ironment –geographical, occupational


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2) %ncome from agriculture

• 2 o rural income comes romthe agriculture sector

• 7ence rural prosperity is tied #ithagricultural prosperity

» &ontM


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• Recently- gradual reduction in the soledependence on agriculture; other sectorsplays signifcant role in the rural economy=

3) (tandard of living

• 9o#er standard o li+ing

• 1/2 rural population is employed in small –

scale agricultural and related occupation• *easonality'

• As it is unreliability in income# rural

consumers are e6tremely conscious in theirpurchase eha+iour

• 9o# literacy, social ack#ardness, lo#sa+ings


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4) infrastructural facilities

• Road, #arehouse, communication systemand fnancial acilities are inade$uate inrural area

• Roads donot connect nearly /2 +illages inthe country

• Inade$uate inrastructure is single mostimportant actor distinguishes uran and

rural

• 8romotion and physical distriution thusecomes +ery diLcult


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!ife style of rural consumer

• 7aryana that had tele+ision;32=sets #as more than the numer ohouseholds that had toilets;44.=

= rural consumer is very religious

• The promotional material uiltaround religious themes is not onlygoing to last longer, ut #ill e kept#ith care y the +illager


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• Gaur de+eloped religious calender

• Rapid success o the (ganga) randtoilet soap ;contained milk and it #asmade rom the #ater o ganga=- the

rand register a good response• o+inda, a cine star – amous or

rural audience


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*) rural consumers prefer to wor0 hardthemselves

• !ould not like to e replaced y amachine

• They are less likely to spend onproducts making lie a it easier


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• 2) strong family ties and respect forfamily values

• %ore conser+ati+e in their approachto#ard the di"erent socio, economic

issues

• The loose, ree >o#ing hair o a girlin a shampoo or hair oil

ad+ertisement may actually act asarrier in the rural market.


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• 4= likes to play cards and hangs out atchoupal

• !hate+er promotional message isdeli+ered to the opinion leaders in a+illage, gets transmitted

• 9o+e chatting #ith riends

• !ord o mouth stories de+elop aroundeasily and ast

• IT& #hich has created an e-choupal-using the internet to ring do#n anyarrier #ith regard to technology


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8rofle o rural consumer

• ,) traditional outloo0

•


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• The lo#er literacy le+els in the ruralmarkets increase the importance o+isual in>uence

• 2) less e/posure to mar0eting stimuli

• 9o# e6posure to randed product• Ad+ertisement

• *ource o inormation and learning

• 9o# con+enient uying• 4=conscious o +alue or money


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• 4) realistic aspiration : he can reach

out and stretch the udget ut that isdone #ith in limits only

• Gual uasge 2 o sur and 02 o

ariel using amilies also use nirmadetergent

• E2 o pantene using households also

used clinc plus shampoo• 6)concept of 7uality -+alues or long

lasting (solid=, lo# – cost maintenance


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• 8)attitude towards prestige products

• Het they are interested in productsadding to his prestige ut the price oa product ?ustifes the +alue e$uation

&h ll i l


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&hallenges in ruralmarketing

• Rural markets remain untappedecause o three G's

• .distance

• 0.di+ersity

• 3.dispersion


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The challenges are..

• ,-distribution: the prolems o physicaldistriution o channel mgt ad+erselya"ect the ser+ice as #ell as the cost

aspect- it is not commensurate #iththe returns that the marketers e6pect.;poor inrastructure=

• reatest challenges is reaching out tothe remotest destinations and ha+ing anumer o +endors at the retailing end.


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• 0.understanding the psyche o the rural

consumer•


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• 3- communication: comm..arrier due to

language or icons used or ad+ertising

• Gi"erent interpretation in rural market

• Guing – not a right solution or rural

audience• The conte6t, story line, narration, idiom,

symols, appeal need to e6amined

#hile de+eloping an ad+ertisement• 56plain directly and clearly

• Uran –symolism,emotional appeal

Nindirect


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• 4- cost per contact

• &ompare the rural promotional cost #iththe uran - is the iggest challenge

• Renting a +an per day cost Rs 3// and

there are D lakhs +illages spending //dialects to co+er

• One e6posure may not e suLcient

• Cy simple calculation – #e can kno#nthat the total cost #ill e much more toreach the entire rural market.


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• 6- sale of fa0es and spurious product

• The retailer pushes imitation products – asthey get etter margins ;retailer=

• A research undertake y A.&. Beilsenreported that the sales +alue o the ake o8N's +icks rand #ere almost e$ual tothe sale o the rand

• *eiJed products #orth Rs 3 lakh

• *econdly , selling ace goods in not acriminal o"ense in India and it is underci+il la#


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• The only practical #ay to deal #ith ake

is to impro+e the distriution and makethe products a+ailale in as many places

• 9riginal products imitation

• .pond polons• 0.rin run

• 3./ ar /F ar

• 4. rooke ond paisa enson randpaisa

• . lieuoy lie?oy, liteoy


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• 8-budgetary allocation

• (&orporate sector lo+es the ruralmarkets, ut #hen it comes to

allocations, the amount o in+estmentin rural marketing is +ery limited),oser+es R. opalakrishna e6ecuti+e

director, Tata sons 9td.• Allocate at least respectale amount o

the udget or research and promtion


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• :-urban orientation and bias

• Rural people are ?ust like uran ones• They too ha+e the same needs,

desires and aspirations

• %ost o the marketer apply minormodifcations ;o the indian uranmarket=

• Cut, these paradigms ;patterns= ail


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• ;-lac0 of right competence andcommitment at frontline level

• %ost o the rontline sta" is rom theuran areas

• They are not +ery comortale totra+el and interact #ith the +illager

• *olution is recruiting rontline sta"rom the rural parts o india

Opportunities in rural


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Opportunities in ruralmarkets

• As per I. Batara?an, chie economist –( The rural marketer has tremendousopportunity and he stated clearly

that, it #as not the uying po#er utthe distriution , #hich #as theiggest hindrance in realising the

potential o the rural market• lakh ruraliter ha+e gone aroad-

sending remittances


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• 799 gets /2 o its sales turno+er o

R* ,1// crores roms r.india• 9I& sells /2 o its policies in rural

india

• @%&'s market #orth Rs D4E// croreare selling in R.india

• &aronated sot drinks #orth Rs E//

crore are selling in R.india• &learly states that rural market is not

as poor as it is percei+ed


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• .rising rural prosperity

• %onsoons #ere normal or out o 3 years

• %a?or drought year #as FE1-EE

• The ratio o rural per capita income to uran

per capita income is increasing• The rural consuming class is increasing y

aout 3-42 per annum

• The go+ernment also spends hundreds o

thousands o crores o rupees in rural area

• &ontM.


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• Rural 7aryana had more super rich

than not ?ust the uran 7aryana• Rural 7aryana- 4E0

• Uran - 34/

• Cangalore - 31

• 7yderaad - 00D ;0//-0//0=


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• *- lesser dependence on agriculture

and monsoon• There is a time #hen market

predictions #ere made on the asis

o the state o the monsoon• &hanged o+er the year, large non-

arming sector-#hich generate

almost 42 o the rural #ealth• Rakesh kalra, &5O 5icher moto


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• Rakesh kalra, &5O 5icher motor agreed (as long as the rain defciency duringmonsoon is not more than 0/2 the long– term a+erage there is n't a signifcant

negati+e impact on the commercial+ehicle sales.)

• 2- increasing rural consumption

•%ore than uran• *ales o @%&'s is 32

• Gurale goods F2


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• @%&'s R* D//// crore out o a total

market Rs ,03,/// crore

• ust a 2 rise in rural incoem translatesinto Rs /,/// crore o uying po#er

• Among the se+en high consumptionstate – pun?a is the lead position

• 9o# e6penditure- ihar, madhy pradesh,

assam• A+erage-karnataka, uttar pradesh, T.B,

orissa


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• Ta6- e6emption on rural income too has

een enhanced rural purchasing po#er• 3- rural mar0eting e


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• D. large popualtion

• The population is +ery large and itsgro#th rate is also high

• &.. 8rahlad,) the uture lies #ith

companies #ho see the poor as theircustomer

• There is an opportunity to make a lot o

money in rural india. Cut, there areostacle too – i.e rural consumers isstill e+ol+ing.


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Rural products


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Unit III

• Rural Cuyer Ceha+iour: Rural uyereha+iour – @actors determining ruralconsumption – Rural uying process –

&urrent trends in rural uyingeha+iour.


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&onsumer eha+iour

• Gynamic – eha+iour and theen+ironment y #hich human eingsconduct

• It can e understood, y thestatistical report

• &ontinuous study should e there

• no#ledge o uyer eha+iour is +italor marketing strategic

Gefnition consumer


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Gefnition – consumereha+iour

• *chi"man and kanuck – ( the eha+iourthat consumers display in searching or,purchasing, using, e+aluating and

disposing o products and ser+ices thatthey e6pect #ill satisy their needs. It isthus a study o ho# indi+iduals makedecisions to spend their a+ailale

resources – like time, money, e"ort- onconsumption related items.

@undamentals o consumer


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@undamentals o consumereha+iour

• @our types o uying eha+iour,ased on the ollo#ing t#oparameter

• = degree o uyer in+ol+ement; high and lo#=

• 0.degree o di"erences among

rands ;signifcance and nonsignifcance=


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Highinvolvement

Lowinvolvement

*ignifcantdi"erencesamongrands

&omple6 uyingeha+iour;e6pensi+e, maydi"erence inrands likecomputer,automoile=


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time spent, purchase

eha+iour can e classifes• 8lanned purchase eha+iour• 5mergency purchase eha+iour;to

a+oid stock-out=

• Impulse purchaseeha+iour;purchase spontaneously,taking decision on the spot=

e consumer passes


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pthrough a series o steps

#hile purchase• *tep . need identifcation prolema#areness

• *tep 0. inormation gathering

• *tep 3. e+aluation o alternati+esolution

• *tep 4. selection o appropriate solution

• *tep . post purchase e+aluation odecision


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Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluationof Alternatives

Evaluationof Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural SocialCultural SocialIndividual andIndividual andPs!chologicalPs!chological

"actors"actorsaffectaffect

all stepsall steps

Cultural SocialCultural SocialIndividual andIndividual andPs!chologicalPs!chological

"actors"actorsaffectaffect

all stepsall steps


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8ost purchase eha+iour

#Cognitive $issonanceCognitive $issonance

#$id I ma%e a good decision#$id I ma%e a good decision#$id I &u! the right product#$id I &u! the right product#$id I get a good value#$id I get a good value#

#


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• *our rapes–

• a story o

• cogniti+e dissonance Mater eing

unale to reach the grapes the o6 said,(these grapes are proaly sour, and iI had them I #ould not eat them.)

• --Aesop

actors # c n uence


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rural consumers during

purchase o a product• Acceptance o #ashing machines andre?ection o dish #ashers

• Acceptance o maggi noodle and

re?ection o kellogg's corn>ake

• &an only understood in terms oconsumer eha+iour #ith regard to

the positioning and marketing mi6 othe organisation


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• ,-social = cultural factors

• In>uenced y social customs,traditions and elies

• &aste in>uences are direct and strong

• &onser+ati+e in their outlook, take alonger time to e in>uenced

• Giscuss the issue o purchase-

important and kno#ledgeale• Rural youth are more open


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• *-group

• &onsumers are part o a group to #hichthey elong

• Opinion leader- a teacher, ank manager,+GO, etc

• The acceptaility o an idea y the groupand y the leader is critical in rural areas.

• 2-family

• @amily siJe and the role played y amilymemers ;?oint amily=


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•3- Role and status• Role reers to the eha+ioure6pected o an indi+idual

• *tatus reers to the respect gi+en tothe indi+idual y the society

• 7ead master – demonstration-

opinion leaders can e useul intransorming the opinion o others


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• 4- sociability

• In rural areas, indi+idual are kno# andidentifed etter

• Accepted y the group makes them

agreeale• 6-economic factors

• %ore than 1/2 o the people are in

small-scale agricultural occupation• These actors a"ect the purchase

decision


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• 8- political factors

• 8rogrammes or sel-employment likethe prime minister's Ro?gar Ho?ana;R%RH=o the cental go+t.

• &%5H- chie minister employment

yo?ana program in Andhra pradesh –increase the potential o the ruralmarket

• The IT, telecom and inrastructurepolicy, #hich is ringing connecti+ity to+illage is empo#ering the consumer


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• :- factors which in5uence the >nal

choice• Attitude o other

• Ad+ice o the retailer

• 56perience at the retail outlet• Gemonstration o product

• Unanticipated situational actors

• %ood s#ing

• 8ercei+ed risk

e6amples


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e6amples

• Creating Rural-speci c essages• Bot all commercials are accepted y rural olk. *ocial #orkers

• recount stories o ad+ertisements that conuse or scandalise rural

• +ie#ers. @or instance, memers o some rural communities in

• Ra?asthan #ere o"ended y the 7alo shampoo spot, eaturing emale

• models #ith eautiul, ouncy hair. The reason #as that here it is• considered indecent or #omen to let do#n their hair in pulic.

• The same +illagers #ere emused y the *trepsils ?Bahut Ma@aa aya

• ad+ertisement. In their dialect, the #ord ma@aa has a strong se/ual

• connotation and they could not understand ho# anyone could get

• corporeal pleasure rom a cough loJenge ;hosh, FF4=.

Rural consumer's increasing


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Rural consumer s increasingtrend to#ards consumption

• Until FE/-E, per capita o india #as ?ust under R* 0/// ut e+en thenhousehold sa+ing rate #as E-0/2

• A dramatic change is in progress-charcoal- cleaned teeth are a rare sight-use o t#igs o neem and aool tree

• 7ousehold are upgrading romindigenous teeth cleaning ingredients totoothpo#der and tooth paste


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• *hiting rom lo# priced rands to premiumrands

• Today, the right shine o colgate or someother international rand o tooth pasteholds more appeal than the traditionalmethods o cleaning teeth

• At a seminar on rural marketing, organisedin Be# Gelhi , y the internationalde+elopment enterprise, ( the Indian ruraltastes are changing fast! thereb"re#ecting a mar$ed improvement in thepurchasing power of village household)


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• In FF/-FF0 lo#est end o ruralmarket earned around Rs 4/// peryear, today – segment's annual

earning Rs 04,///• Rural uyer's disenchantment #ith

second – hand item , thank to

competition –increasingly purchasingne# product.

& l i


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&onclusion

• The siJe o the rural market is$uantitati+e and $ualitati+e

%r. kartik raina o dalmia consumer

care- toacco ree eedi called(+ardaan)

% the rural mar$et in not for all! but

for those with the guts! the s$inof an elephant and the mind of anevangelist .)


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• ost successful brand HeroHonda is no more

• y khalid on E00// in

CaJaar Talk,Intresting Be#s

• 7ero 7onda is the most successulrand name in India. It is the largest

player in the market in t#o #heelersegment

&aluting the spirit of women empowerment

@ i N 9 l @ d ti " h d

http://bellthebull.com/category/bazaar-talk/http://bellthebull.com/category/intresting-news/http://bellthebull.com/category/intresting-news/http://bellthebull.com/category/bazaar-talk/


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@air N 9o+ely @oundation o"ers honoured.


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• &aluting the spirit of womenempowerment

• @air N 9o+ely @oundation o"ers

scholarships to 00 meritorious girls.@i+e #omen achie+ers honoured.

Unile+er *ustainale 9i+ing 8lan Un+eiled' t d d f t iti


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'e meet ever"da" needs for nutrition!h"giene and personal care with brands that

help people feel good! loo$ good and getmore out of life(

http://www.hul.co.in/mediacentre/news/2010/UnileverSustainableLivingPlanlaunchednews.aspx


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• H)L brands top India*s ost Trusted +rand &urve"

• 3/-/E-0//: Once again this year 7U9rands ha+e topped the PIndia,sost Trusted +rands &urve",

ran$ings( &i. H)L brands ;9u6,9ieuoy, &linic 8lus, 8onds, @air N9o+ely and 8epsodent= eature in thetop / and eight in the top 0/.

http://www.hul.co.in/mediacentre/news/2010/HULbrandstopIndiaMostTrustedBrandSurvey.aspxhttp://www.hul.co.in/mediacentre/news/2010/HULbrandstopIndiaMostTrustedBrandSurvey.aspxhttp://www.hul.co.in/mediacentre/news/2010/HULbrandstopIndiaMostTrustedBrandSurvey.aspxhttp://www.hul.co.in/mediacentre/news/2010/HULbrandstopIndiaMostTrustedBrandSurvey.aspx


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case


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case

• ar$et /evelopment &trateg" of HLL• In FFF, the soaps, detergents, and personal product segments

• o 799 o#ed their gro#th strategy to a strong rural thrust. 799

• launched its POperation Charat', a 0/ million household national

• sampling e6ercise or its personal products portolio. As part o the

• campaign, lo# priced sample packets o toothpastes, airnesscreams,

• shampoos ;&linic 8lus= and talcum po#der ;8onds= #ere handed

• out to 0/ million households.

• According to Galip *ehgal, 7ead o %arketing ;8ersonal 8roducts=

• in 799, PThe siJe o the pie #ill increase rom the rural segment, not• the uran segment. *o the ocus should e more on market

de+elopment

• rather than market share at the moment' ;Saheer, FFF=.

3 n4conomical and best


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4conomical and best

edia in Rural ar$eting

3 n46ective wa" of

http://1.bp.blogspot.com/_0z-1KaqvnPY/SgxPZOlqJaI/AAAAAAAAAEY/rQpth8JUiHQ/s1600-h/100_1563.JPG


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46ective wa" of

Communication

e6amples


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e6amples

+ehaviour Variations of 'atch +u"ers• The demand or #atches is high in rural areas and it increases

• during the marriage season. This is true throughout the country. The

• +ariation is, ho#e+er, in the type o #atch and rand that is preerred

• y the consumers. In the +illages o the north, P#inding' #atches are

• preerred #hich are ought rom large eeder +illages neary. They

• f nd it con+enient to get it ser+iced at a neary place. The a#areness

• o $uartJ rand o #atch is limited. The a#areness o a rand is usually

• rom ne#spapers in addition to #ord o mouth.

• In the south, the preerence is or a $uartJ #atch and is purchased

• rom a sho#room in the to#n. In some o the +illages, tele+ision has

• created a high degree o product a#areness. As the purchase o $uartJ

• #atches is e6pensi+e, the +illager preers to uy it rom the to#n and

• is #illing to take it ack to the sho#room in to#n in the e+ent there

• is a prolem #ith the #atch.

• 5ccupation

e6amples


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e6amples

• &trateg" to Re# ect the &ocial-Cultural In# uences on +ehaviour• In rural areas the houses are painted during esti+al season. The

• demand or distemper paints is thereore +ery large. This demand is

• met y local rands, #hich are o lo# $uality. Asian 8aints de+eloped a

• product #ith right colour shades ;preerred y the rural consumers=

• or rural markets and #hich had greater duraility than the local

• rands. It launched the product in a pouch orm and #ith the rand

• name Utsa+ ;meaning esti+al=. Utsa+ #as promoted as a good $uality

• economy rand. It used #all paintings and point-o-purchase displays

• to create a#areness. It identif ed dealers and su-dealers #ho had the

• potential to stock and sell Utsa+. To demonstrate the $uality o Utsa+

• the company painted the headman's house or post oL ce. The rand• #as #ell accepted y the rural consumer.

• The social-cultural in> uences on eha+iour need understanding

• or de+eloping an e"ecti+e marketing strategy

Unit I


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Unit I<

• 8roduct and pricing or ruralmarket:marketing mi6 or ruralmarkets- de+eloping a ne# product

or rural market- product lie cycle-inno+ations in product design ruralmarket- randing products or rural

markets price determination or ruralmarket- pricing methods or ruralmarket.

Rural marketing mi6


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Rural marketing mi6

• Introduction

• Indepth understanding- rural lie style,identiy needs o rural consumers

• The success o a product like shampooin the rural market – acting upon theconsumer insight- made ca+inkare's

chik sampoo;market leader in a market#hich #as not using shampoo at all)=

%arketing mi6


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%arketing mi6

• A series o interconnected andinterdependent marketing issues that needto e considered together

• @irst de+eloped y (Beil Corden) in F/

• FD/s ?erome %ccarthy ;7ar+ard=elaorated the concept o the our 8's

• %arketing mi6 reers to the set o actions,

tactics tools or +ariales that a companyuses to promote and sell its rand orproduct in a market


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• 48's o marketing

• Gecisions aout the controlledmarketing +ariales

• 48's : product! price! promotion!

and place 7distribution8• *e+eral other 8s: 1ac$aging!

positioning! people! pace!

passion! publics and evenpolitics as well


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• Gecisions e taken ater assigning a+alue to each +ariale some +ariales

could e

• 9(price- price le+el, credit terms, pricechanges and discounts

• :( product – eatures, packaging,$uality and range

• ;( promotion: ad+ertising, pulicity,

sales promotion and personal selling•


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• Cy choosing the appropriate le+el ,the right marketing mi6 can ede+eloped

• The marketing tools and the possile+ariations are top end lu6ury model,medium range product and +alue or

money lo# end product.

• =product – anything that is capale o or


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=product anything that is capale o orcan e o"ered to satisy a need or #ant-

include tangile and intangile ser+ice• 7o#e+er, a product must deli+er a

minimum le+el o perormance, other#isee+en the est #ork on the other elements

o marketing mi6 #on't do any good in thelong run

• 0=8rice – (reers to the amount the

customer has to pay inorder to ac$uire aproduct or ser+ice)

• &ontM

G d d t


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• Gepended actors are:

– &ost o production

– *egment targeted

– Aility o the market to pay

– Gemand and supply o competing

products and sustitutes

– 8ricing o?ecti+e o the frm

– Other direct and indirect actors

4 &'s o pricing


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4 & s o pricing

• ;a=costumer +alue- +alue the customerpercei+es that the product deli+ers

• ;= competitor's prices

• ;c= cost to the company- comination of6ed and +ariale cost

• ;d= strategic and pricing o?ecti+es o the

company- the fnancial, marketing andstrategic o?ecti+es that the organiJationhas decided to achie+e rom a product.

8ricing o?ecti+es


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8ricing o?ecti+es

• To ma6imise long run proft

• To ma6imise short run proft

• To increase market share

• To match competitors prices

• To sur+i+e in the short run

case


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case

• T"pical &trateg" in Rural ar$ets= Crane Supari • &rane etel nut po#der is a leading rand o etel nut po#der

in

• *outh India. It is kno#n or its $uality and has a +ery strongconsumer

• loyalty. The packs are sold in con+enient price slots o / paise,Re ,

• Rs 0 and Rs . The pack siJes include, apart rom +ery smallpacks,

• packs o 0 gms, / gms, // gms, 0/ gms and hal kg. There

are si6• +arieties o arecanut and rand uilding is through maintaining

the

• taste. The product range includes oth spicy and s#eet supari-


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• The channel includes distriutors, su-distriutors, #holesalers• and retailers. The distriutors are reached through company +ehicles

• #ithin three days o the receipt o re$uisition along #ith a drat or

• ad+ance payment. In the case o rural markets, the distriution is

• once a month through trucks that ollo# an itinerary. In the case o

• smaller and interior areas, transporters are used. In addition to this,

• the company pro+ides +an support to distriutors or deli+ering to

• rural markets. The company makes a+ailale to the rural distriutors

• small +ans #ith the condition that they carry only the &rane rand.

• The day's e6penditure or the +an is orne y the distriutor #ho

• uses it.


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• The media used in rural markets include cale tele+ision, stickers• and danglers, painting the sides o uses, #all paintings and shop

• paintings. %imicry and dance drama #ere used in the early Bineties,

• ut no longer.


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• The rand has a good image in the rural market ut thepresence

• o a large numer o local and small rands competing onprice

• restrict the market share. The rural market is large ut

ecause o • price competition its ma?or share is rom the uran market.

It is

• the leader in *outh India ut its leadership is ecause o theuran

• market.


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8ricing process


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8ricing process

• *tep - de+eloping the marketingstrategy: perorming the segmentation,targeting and positioning unctions

• *tep 0- making the marketing mi6decision-determining the other 38s:product, place and promotion

• *tep 3 – estimating the demand cur+e –analysing ho# the demand is likely to+ary #ith the price

• *tep 4- calculating the cost – determining


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*tep 4 calculating the cost determiningthe f6ed and the +ariale cost likely to e

associated• *tep de+eloping an understanding o the

en+ironmental actors- the competiti+e as#ell as the legal en+ironment scenario

• *tep D – fnalising the pricing o?ecti+es –ma6imise long run proft, short run proft

• *tep 1 – determining the price – selecting

the price method, determine the marginsand discounts

8ricing methods


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8ricing methods

• A= cost plus pricing- organisations add certainproft margin o+er the cost o the product

• C= target – return pricing – targeted return on itsin+estment

• &= +alue – ased pricing – ased on customer'sperception o +alue

• G= psychological pricing- already e6istingreerence or psychological prices in the mind o

customer

• 8ricing through the product or ser+ice lie cycle

l


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8lace

•Reers to the point o sale• The main aim o distriution or placestrategy- (catching the eye o theconsumer and making it easy or to uy a

product)• ( ideal alance et#een the cost to the

organisation and conse$uent con+enience

to the customer)• In act, the mantra o a successul retail

usiness is Plocation'

Gistriution


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Gistriution

• %eans ensuring the spread o the

product throughout the market place ina manner ,so that a large numer opeople can uy it.

Gistriution channels• @lo# o products rom the site o

manuacture to the point o sale

• &on+entional channel : actory- cN-distriutors- retailers;most commonchannel or the most goods=

• Uncon+entional channels like- Internet


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Uncon+entional channels like Internetportals or a net#ork o salespersons

8romotion• to make the product or ser+ice kno#n to

and preerred amongst the user and trade.

• Ad+ertising, #ord o mouth, press,incenti+es , commission, a#ards to thetraders, consumer schemes, directmarketing, contest and priJe mass media

• I%& –integrated marketing communication –promoting the company's goal to its targetaudiences

• Clearing and Forwarding Agent (C&F)


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g g g ( )

• The clearing and or#arding agent is the

representati+e o the manuacturer. The &N@manages the companys #arehouse andhandles distriution on ehal o the company.

The goods that the &N@ deals in is the propertyo the company he is representing. The &N@gets a small commission or his ser+ices. The&N@ deals #ith the #holesalers - including thesuper-stockist, stockists and distriutors.

e6amples


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• Comple. Communication as +arriers to Reception• It is rele+ant to share our recent e6perience on a market sur+ey on

• pesticides. 7ere #e ha+e a serious communication prolem. Though

• there are local names o pests, ut all the material released y all the

• pesticides companies mostly identiy the pests y their 5nglish and

• academic nomenclature. There are generic names used or pesticides• #hich again are in 5nglish. *ome o these names are diL cult

• to pronounce. @or e6ample, %onocrotophos, the rand name such

• as Bu+acron. The choice or the consumers increases in comple6ity

• ecause o additional dimensions. Additional dimensions are the

• manuacturers, ormulation strength, product orm and +aryingpercentages

• o technical material content. &ontM


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• The entire e6ercise is so complicated that the marketingorganisations

• are not ale to e"ecti+ely communicate #ith the armer on

• the rand name o the pesticide or a gi+en pest. The result is not

• only an improper and #rong selection o pesticide ut also that

the• recommended dosages are not eing used, and the armer lames

• the pesticide and the manuacturer or the ine"ecti+e treatment. The

• ertiliser manuacturers ha+e introduced simple symols andrands

• like *tar rand, &rescent rand, etc. *uch sign language needs toe

• de+eloped in case o pesticides also ; ain, FE3=.

&i d & b l i R l $ t


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• &igns and &"mbols in Rural ar$ets

• A numer o successul rands in rural markets ha+e rand names or

• symols #ith numers or animals. These include soap, %onkey• rand toothpo#der, emini Tea ;#ith an elephant=, &heetah f ght

• matches or P*heru' ;tiger= beedi and iger cigarettes- he association

• o symols #ith these rands helps recollection. The 3-Roses rand

• o tea makes the rural consumer Pthink and eel resh'. The symol

• helps associate the product eatures #ith the rand o tea. The

• symols that make the consumer eel and think aout eatures that

• are rele+ant or the product are critical or rand uilding in the

• rural market ;rishnamurthy, FFF=.

&ase


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• )sha International Ltd(

• Usha International 9imited ;UI9= o the *iddharth *hriram group

• proposes to increase its ocus on the rural market, #hich contriutes

• / per cent o its total income. It plans to increase the penetration

• le+el o its ans in rural areas rom the current per cent yintroducing

• ans ;oth ceiling and tale= designed to unction under

• se+ere conditions o +oltage > uctuations. They #ill e priced 3/ per

• cent less than normal. It also plans to increase the penetration le+el

• o its se#ing machines in rural areas rom the current per cent

• y introducing lo# cost models. UI9 intends to route its products

• or the rural market through its diesel engine dealers, completing

• its strtategy to make use o product design and pricing decision to

• deli+er +alue to the rural consumer

Rural marketing mi6


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Rural marketing mi6

• %arketing mi6 conceptually remains+alid or the rural market

• 5+ery product and promotion, #hich is

a hit in cities, might not #ork in ruralareas

• It doesn't mean, Indian +illages elongsto restricted Jone

• They are di"erent as consumers andhence, market di"erently

8roduct


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• %odifed to suit the liestyle and needs

o the rural consumers• Rural consumers like to uy products or

need ased consumption

• Recycling and putting a product to allpossile practical uses eore discarding

• !hile designing a product- consider

reuse and recycle• The product to e useul and easy to

use

• Appear tough and rugged outlook


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• Appear tough and rugged- outlook

• As less educated – ne# technologyacceptance is also less

• &ellular phone-#ashing machines –

not accepting• Acceptance- sol+e their prolems,suits their culture and their pocketand #orth the price

Cranding


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Cranding

• %aking them change their product orrand is +ery diLcult

• 7igher rand loyalty among the +illager

• Once a rand is accept;+ill, state, region=

+ery diLcult to replace• According to 7arish %ana#ani ,the +ice

president 799, ( international rands need

to e rele+ant interms o percei+ed image,perormance +alue i they are t succeed inthe Indian market)

8ackaging


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8ackaging

• The decision o packaging isin>uenced y the characteristics oconsumers – i.e a"ordaility, culturalpreerences, usage conditions andaility to read

• %inimum $uantity o the product or#eaker section;fnancially poor=

• The prolem o dust, heat or umpyroads – special stress on packaging

• 8ackaging siJe – store- another prolem


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8ackaging siJe store another prolemor customer or retailer

• &olgate put a cap on the sachet orcon+enience o storage

• Attracti+e, decorati+e and

synchronisation #ith local culture-should not e costly

• !riting products name in the locallanguage- consumer a#areness

• &olour and con+enience o package are+ery important

• Illiterate – not ale to ask or a rand-


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ad+ertised – recognise the product y its

packaging• This is #hy ;imitating the packaging = is

a+ailale in +illage shops

*U• *tock keeping unit

• Organisations should maintain a smallernumer o *U or the rural market

• As the rural retailer has a limited #orkingcapital

8roduct strategies


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g

• In rural marketing• = ne#modifed product designs

– A= research and marketing department think –ne# design according to their ;rural= lie style

– C=rural en+ironment- product tough- roughhandling, rough roads and re$uent po#er>uctuation

– &= nokia's//- customised model or rural – G=dust resistant, small torch, economically

etc.

• 0=sturdy product- sturdy enough to stand


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0=sturdy product sturdy enough to standrough handling, transport and storage

• 3= utility oriented product- more concerned#ith the unctional utility o the productthan its appearance and sophistication

• 4=a+oiding sophistication packaging• = refll packs reusale packaging

• D= application o +alue engineering-sustituting the costly ra# material #iththe cheaper one- cheaper ut etter$uality

• 1=rand name- rand a#areness in the


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rural areas is airly high. The only issue is

that the rands are kno#n di"erently thanthey are kno#n in the uran market ;akeproduct=

• E= small unit packaging

• 9o# per capita income – single ser+epackets or sachets are enormously popular

• The use o / p or 1 ml sachets is declining

in the rural areas y /2• Cigger packs or ?am and milk po#der are

doing #ell e+en smaller is a+ailale

8rice


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8rice

• 8rice is the most importantphenomena a"ecting rural market

• 9ittle e6tra or etter $ualilty-

cheaper +ersion• *ome retailers in the interior +illages

charge more than the ma6imum

retail price;mrp=-to etch – spendtime and money – rom distriutors

8rices o sustitutes also must e


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• 8rices o sustitutes also must e

studied along #ith the pricing o thecompetitors

• As coca cola ound out that it #as not

?ust pepsi that they #ere competing#ith in the rural market, ut alsonimu paani, ?al ?eera and others

8ricing strategies


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8ricing strategies

• As per capita income o india #aslo#

• 56tremely price sensiti+e

• ;a=large +olume- lo# margin : rapidor slo# penetration strategy

• To ocus on generating large +olumes

• Bot ig proft margins

• ;=o+er all eLciency and passing on


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; = y p genefts to consumer

• The strategy should e to cut do#nthe production distriution andad+ertising cost

• 8assing the enefts to the customersto urther increase the turno+er

• Oser+ed that ad+ertising has less to

do#ith product sales in the ruralareas

• lo# cost+alue or money products


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lo# cost+alue or money products

• The price can e kept lo# y smallerunit packaging

• ;d= lo# +olume – lo# price strategy

• Reducing the package siJe- morea"ordale especially in fnance

• ;e= ensuring price compliance

• Rural retailers most o the time, chargemore than the %R8

• %anuactures has to ensure price

1lace


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• Third P8'

•


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*ignifcance o distriution

• The est product, price, promotion andpeople come to nothing i the productis not a+ailale or sale at the point

• ood distriution system- companyhas greater chance o sellling it sproduct more than its competitors

• In the @%& industry in india –

companies ha+e to distriute to o+er/ lakh retail outlets or point o sale

• Bo# a days – direct marketing – through


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internet- easile or the smaller +illages

8lace strategy

• ;a= segmentation

• 56amine the market potential odi"erent +illages and target the +illagesthat can e ser+ed ina fnancially +iale

• Bot +iale to contact and ser+e all the+illage

• ;=co+erage o +illages #ith 0,/// and


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;=co+erage o +illages #ith 0,/// andao+e population

• Gistriution net#ork in aout ///+illages – ha+e population o 0/// personand ao+e

• can co+er aout 0 crore rural consumers• ood to egin #ith lesser populations

• distriution up to eeder marketsmandito#ns

• The eeder markets and mandi to#n o"ere6cellent scope or distriution

• The rural consumers +isit these to#ns at


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regular inter+als, not only or selling

their agricultural product ut also orpurchase

• ;d=?oint distriution y non-competing

companies• As distriution +ans can e un+iale or

a single company

• Gi"erent non- competing companies cancome together to ?ointly operatedistriution +ans

• ;e=direct contact #ith rural retail

Al ith th " t h l l


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• Along #ith the e"orts o #holesalers

and dealers, companies need to ha+edirect points o contact, #ith retailersand su- retailers

• ;= shandieshaats• 7eld on a particular day o e+ery

#eek

• Gistriutors in the area can utilisemoile tractors to sell the products

• ;g= agricultural input dealers


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• As per the essential commodities

act,ertiliJers should e made a+ailale tothe armers #ith ina range o 4 to %rom their residence

• Aout 0 lakh ertiliJer dealers in the country

• Coth in coopertati+e and pri+ate sectors

• These outlets can e used to market

• ;h= use o co operati+e societies

• At least one cooperati+e society o one ormor the other, or e+ery or 0 +illages

• ;i=utilisation o pulic distriutionsystem


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system

•;?= multi-purpose distriution centers ypetroleum companies

• The petroleum retail outlets no# #ill eseen stocking some non-petroleum

retail outlets no# #ill e seen stocking

• ;k= post and telegraph department

• ;l= alternate retail distriution channels

• %ilk man, +egetale +endor, entry ande6it point o +illage


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• ;m= personel selling net#ork• Residents o the +illage or

community

• ;n= e- marketing• 5-choupals, direct contact #ith the

rural consumer

8romotion


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• As it is thin population- promotion

aspect is challenge

• P%edia dark'- inaccessile to tele+isionsignals- not only denied to access to

product ut also kno#ledge aout it.• 8rolem in mass media

communication- time gap et#een the

point o e6posure and the time opurchase

• The memoraility o the message –


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The memoraility o the message –

#hile it last till the time o purchase• *ur+ey – D2o rural and 02 o

uran consumer elt that ad+ertising

in>uenced them to re$uently oral#ays to uy products they donotreally need

• F2 rural and 3/2 uran –ad+ertisements are re$uentlymisleading

case


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• Responses to Consumer +ehaviour• 7industan 9e+er ound that retailers in

+illages #ere cutting its large

• // gm 9ieuoy soap into smallerpieces and selling these. *o it

• introduced a smaller 1 gm pack. It

also introduced !heel detergent• in a // gm pack ;oshi, FF=.

%edia +ehicles and ruralmarket


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market

• 9(mass media• In rural market, 0 out o indians are not

reached y any media : t+, press, radio

and cinema together• ;a= tele+ision

• T+ penetration in rural homes #as aout0D2 in 0//0 , DD2 o uran area

• In FF3 it #as 32 and 4F2 in uranarea

• Although the numer o television


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g

channels have increased from >

channels in 9??9 to ;@@ b" theend of :@@<

• As o no# doordarshan telecast

net#ork nearly co+ers the entirecountry

• 2 reach in FF1 GG's

• *ince, one third o india is notco+ered y GG

• ;= radio: primary source o entertainment inrural market


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rural market

• listenership stands in the 0/2 range or othuran and rural

• 0/2 listenership is a good numer in terms opopualation

• print media• 9iteracy le+el is lo# in rural areas

• Through dailies, periodicals, pamphlets,ooklets

•

• Cut reading hait in the rural areas


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does not appear to e +ery good

• Reaches the rich amilies o the+illages- so #ork o mouth

• *hould not ignored – ecause it reachthe opinion leaders

• ;d= cinema

• o rural adult population +ie#cinema in the southern region – soe"ecti+e media


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• ;e=hoarding #all paints• !alls o shops and other place are

easily a+ailale

• Relati+ely longer span than othermass medis

Uncon+entional media

• As media does not co+er as much as


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• As media does not co+er as much as

432 o rural india• 5+ents like air, esti+als, cinema +an,

shop ront

• &tic$ers on hand pumps, #all o #ells,putting on tin plates on all the trees,pond- inno+ati+e media used y 799or lu6, lie oy and #heel

• @olk media – $uite popular in di"erentregions and state


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High freAuenc" Low freAuenc"

7igh reach eep, #all painting,us stand , haat,

hoarding

ets,posters andanners , danglers

8romotion strategies


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• .Think gloal act local• Rural population is di+erse

• Cut the commonalities o their ethos

and simple li+ing haits need to eunderstood or ad+ertising tosucceed; conte6t, story line, languageand idioms=

• 0. think in local idiom

• Pthanda matla coca cola'


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• 3.simplicity and clarity• 4.Barrati+e story style

• .&hoice o rand amassadors

• go+inda in the mirinda ad oostedthe sales o the drink in rural market.

Additional 8's o ruralmarketing


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marketing

• . passion – it represents an attitudeo three dimension

• a= passion to earn good#ill or

the company• = passion to ser+e and

educate the consumer

• c= passion to gi+e //2 to therural marketing e"ort.


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• 0= pace ;step y step=• Rural market need to e launched into

the heart o the customer

• !orking capital and storing space donotallo# rural retailer to store numerousrand

• 7e can sell #hate+er he is stocking

• Thus companies ha+e to reach theretailer early

4 A's o rural marketing mi6


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• . a"ordaility : not cheaper product,designing products #hich match theneeds o rural consumers, at a pricethat they eel

• 0. a+ailaility: lesser numer o randsa+ailale at rural retail outlet

• 5nsuring the reach o the products atthe retailer's shel is one o the mostcritical unction

• 3.a#areness : they use uncon+entional


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ymedia along #ith commercial medialike T< , Radio

• 5lements like colour, logo, slogan –designed according to the rural

consumer

• 4. Acceptaility

• They must eel that the product ser+es

its purpose, then they are ready toe+en spend e6tra or the product

e6amples


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5scar Television,s 56ering to the Rural ar$ets

the leading tele+ision rands. Arpita hurana, the director o the

Oscar tele+ision competed e"ecti+ely in the rural markets against

company e6pects a oom in the rural market #ith gro#th o nearly

E/ per cent.

Oscar tele+ision competes in the rural market y pro+iding a no rill

+alue or money product. @or instance, Oscar, #hich deri+es 4/ per

cent o its sales rom the semi-uran and rural sectors, has launched

a attery-operated tele+ision model in the 4V segment to cater to

parts o 5astern U8 and Cihar. This has oosted the company's sales

y per cent to 1 per cent. It is planning to come out #ith a similar

0V model in the near uture. *ays hurana, P*ince electricity is a

prolem in these areas, #e elt the model #ould e a success'.

(ource hosh and erma *++2)-

cases8roduct Gesign that Responds to Consumer 1erceptions

Union &aride ound that its slick plastic torches, #hich #ere all


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the rage in the metros, had no takers in the +illages. @armers preerred

hea+y rass torches. *ays Union &aride %anaging director,


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• Bot in+ention- minor modifcation – e6isting product• 5bBectives

• .*atisy customer demand

• 0.&ompetitors launch ne# product

• 3.56pand strategy• 4.&hanges in technology

• .Increase in sales and proft

• D.*ingle product usiness +ulnerale to multi

product usiness• 1.%aturing stages and decline stage

Be# product de+elopmentprocess


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p

• A= e6ploration stage:• Ideas or ne# products is #ithin a company itsel

• D/2 o industrial and 4D2 o consumer ne#product ideas came rom the research sta"

engineers , sales people• 3/2 o consumer product ideas came rom the

user

• %arket eed ack and research- key role to play

• Team - assimilate all ne# product ideas on asingle ormat

• e+aluation

• C= screening stage

5li i ti hi h


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• 5limination process- #hich carry

unacceptale le+el o risk•


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e sc ee g o y e a e e oconsideration

• Time or detail product specifcation – needsatisying, simple and easy, con+enient store,tough and solid appearance, a"ordale, ruralproduct usage, en+ironment

• 5lectrolu6's i?lee rerigerator can store po#eror 0 hours as ack up

• Uran imagery ;eel and comort=- %ahindras

%a66- styles and fnish• &hassis is designed to keep the mother oard

cool at tem 4deg c

• G= usiness alnalysis

9ik l tW 8 t ti l d dW


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• 9ikely costW 8otential demandW

Reco+eredW. ROIW

• 5= product de+elopment

• Appro+es particular product

• 56ecuted in research la – stage –concept on the paper is transormedin to a product in hand

• @= de+elopment o marketing mi6

• 8roduct : packaging, colour, logo and


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8roduct : packaging, colour, logo and

rand name taken at this stage• Psampoorna' chosen as a rand name

or tele+isions y 9, is a #ord rom

the our leading languages spoken inrural 7indi, Tamil, %arathi, Cengali.

• 8romotion : selecting media, punch

line – TATA A&5


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• 8rice : retail price, dealer and retailermargins are taken at this stage

• TATA A&5 slightly higher price that three#heeler – it enaled the customer to clim

the ladder y paying a slightly higher price

• 8lace: TATA %OTOR* concei+ed a conceptcalled st outlets or the distriution o

A&5. st

retail out lets that handle onlysales o A&5

• = product Testing :


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– = product testing : eore it is ormally

launched in the market Intel took thepersonal computer designed or ruralmarket

– Test in pilot pro?ect – changes madeaccordance to it

– 0= concept testing : entire product conceptsis presented to the customer –to ha+e their

reaction – it might e successul or not – 3= test marketing – done y selling theproduct in limited

• 7= commercialisation or launch :

• Be# product is actually launched in its target market


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p y gplace : do some e"ort

– 8romotion strategy – TATA Ace road sho#,demonstrated test- dri+e, using themetaphor o an elephant – ay elephant TATA TRU& – mother elephant

– 8ricing strategy : tied up #ith auto fnancerin uran areas #ho o"er f+e year fnancingor the +ehicle ;three – #heelers get only

t#othree year fnancing – @inance companies comort le+el #ithsalary slip than the agricultural income


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– 8lace strategy : nine state, 3//e6clusi+e sales outlets across India, #ithin a range o / to // km rom their+illage, tied up #ith local garages apart

rom its e6isting dealers, – Training to the sta" o these local

garages

Rural market and productlie cycle


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y

• The our stages o 89& – Introduction,gro#th, maturity and decline

• This act remains true or the rural

market as #ell• Introduction to decline +aries rom

one product to another


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• 89& determined y the ollo#ingactors

market condition

gro#thtrends in uyer's spending

technological

company policy

aracter st cs o erentstages o 89& and marketing

mi6 strategies


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mi6 strategiesIntroduction stages:• ro#th , sales +olume is lo#,

• 8roduct a#areness is limited

• 8roft is unlikely

• @ocus on to uild a#areness

• 5stalish distriution net#ork

• %arketing strategies or introductorystage


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g

• A=product strategies : small trial pack• C=place strategies: encourage to stock the

product, o"er scheme

•&=promotion strategies : generate greatera#areness, y educating and reaching theopinion leader, targeting the inno+ators

• As competition is less, highlight the

eneft o the product concept


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• G= pricing strategy : go orintroductory price o"er,

• Rapid or slo# penetration can e

taken on the asis o the resources.

ro#th stage


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• Cecomes a#are o the product o itsenefts

&haracteristics :

• rapid gro#th in sales and proft ,• economies o scales,

• lo#er prices are possile,

• the competitors mo+e in the market


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• *o ocus :• To uild rand preerence,

• To increase market share

%arketing strategies or gro#th stages

• A=product strategies :

• i= rand reinorcement – educatingthe customer aout enefts


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• ii=modifcation or +alue addition inthe product

• iii= making the product more

rele+ant or the customer• i+= launching medium packaging –

799 created ule pack's shampoo-

neither sachets nor ottle

• C= pricing strategies – option to eithermaintain or lo#er the price e+en


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maintain or lo#er the price e+en

urther – economies o scale due to thesignifcant increase in sale

• &=place strategies-strengthening

relationship #ith distriutor, deepeningthe penetration – tapping some o therural segment

• G=promotion strategies- increase inpromotional udget, highlighting the$uality or perormance o the product

%aturity stage

• &ompetition ecomes e+en more


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• &ompetition ecomes e+en more

intense

• %ost o the product remains in thisstage gloally or a consideraly long

time&haracteristics o maturity stage

• %a6imum sales and proft

• Intense competition• @ace tough competition - #ithdra#


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• @ocus : deending the market share,ma6imising the proft, tractors andchemical ertiliser- entered maturitystage like in pun?a

• A= elongate the maturity stage :

• Imperati+e to sustain the customer'sinterest

• *o sa+es the product rom entering intodecline stage

• C= product strategies : y addinginteresting eatures


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interesting eatures,

• Update the product

• Ceing decided to market its ketchupin di"erent colour

• Organisation need to strengthen theperception that their product isetter and di"erent rom others, so Rand G to enhance eatures


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• &= promotion strategies• Appear no+el in product promotion

• Crand repositioning – add ne# market

segments, promote ho# their o"eringsare di"erent and etter romcompetitors

• 8romotion needs to e made roadased – potential consumers – due totheir conser+ati+e attitude.


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• G=place strategies : deepen thedistriution net#ork

• Incenti+es to channel partners

• 5=price strategies• 9o#ering prices

• Gecline stage

• It is not possile to e6tend the maturity


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s o poss e o e e d e a u y

stage• Tooth paste- maturity stage- ut still they

cannot e considered immune romdeclining stage

• !ashing soaps taken o+en y detergent

• &haracteristics

• *ales drop, demand diminishes, marketor product shrinks, in+entories startpiling up, proft decline


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• %arketing strategies• A=re?u+enate the product

• i= re+i+e the product y additional

eatures• ii= har+est the product

• *ell their manuactured product at

reduced prices

Cranding product or ruralmarket


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• Gespite create an a#areness o theirgoods and ser+ices – still un tapped

• 9ieuoy- one o the frst soaps #ith

rural areas as the key target market-create rand loyalty

• &olgate, Ca?a?, Tata – adopts right set

o rand uilding tools- or long term

Crand

O i i B i d d


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• Origin- Bor#egian #ord- randr-means Pto urn'

• A rand is defned as a name , term,sign, symol or special design orsome comination o these elementsthat is intended to identiy ordi"erentiate the goods or ser+ice o

one seller or a group o sellers;American %arketing Association=

• I %ercedes CenJ is a rand name- the staris a rand mark.

• All trade marks are rands and include oth


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• All trade marks are rands and include oth

the rand name and 8ictorial designs- #hichare legally protected

• 56clusi+e rights to use rand – granted y

trademark la#, unlike patents and copyrights – #hich ha+e e6piry date

• Crand- attriutes, +alue, personality, culture

• Crand is a comple6 symol- not ?ust a name-

identity and uilds a personality arounditsel.

Cranding process

• Cranding is a process, a tool, astrategy and an orientation


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strategy and an orientation

• The process o creating a rand stemrom research that starts #ith theconcept o #hat the product is and

#hat its unctions and o?ecti+es are

• Crand uilding is usually a long,tedious and methodical #ork

• It is not static- continuous change inproduct appearance and perormance

• Crands is some thing #hich isdesigned y the marketer, ut #hich


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designed y the marketer, ut #hich

is uilt o+er time y the consumer

Crand loyalty

• (the degree o consistency in uyingparticular rands as a unction o cognition


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particular rands as a unction o cognition,emotion , satisaction, commitment, haitand positi+e attitude to#ards rand)

• &onsumer loyalty reers to the

un#illingness on part o consumer tos#itch o+er to the other products, rands,or stores

• &onsumer loyalty is a oard term

encompassing rand loyalty and storeloyalty.

@actors determining rand loyalty


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.5motion- emotional ond et#eenthe customer and the rand

0.O?ecti+ity- people #ho constantlyreassess their uying decisions ono?ecti+e purchase parameters

3.Inertia – rarely reassess their

purchase decisions- out oin+ol+ement or high s#itching costs

• *atisaction, customer relationshipmanagement- not only this


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management not only this

• Recency, re$uency, and monetary+alue- regard as good measure ocustomer loyalty.

• Indian consumers tried on a+erageD.0 rands o the same packagedgood product in one year, compared

#ith 0./ rands or Americanconsumers.

Cenefts o rand loyalty or theorganisation


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.9oyal customer are typically lessprice sensiti+e than other

0.8ro+ides frms #ith a +aluale time

to respond to competiti+e action3.&ost- attracting – ne# customer – si6

times higher – than the cost o

retaining current customer.

*ignifcance o rands

• %arket place teeming #ith thousands o


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product and ser+icing• A rand di"erentiates a product rom

similar other products

• !orld's top three rand – representenormous capital +alue

•


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p g

• 7o#e+er, should not e conused #ith anational rand

• %ass consumption product like tea, soap,detergent and dish #ashing po#der ha+e

se+eral regional rands #ith loyal customers.

• and chhokra soap – strong regionalrands in pun?a

• Arun ice cream o 7atsun oods- third omarket share

Reasons or the success o regionalrands

*pread o cale and satellite tele+ision


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.*pread o cale and satellite tele+ision

0.Understanding o the need o regionalconsumers

3.9o# o+erheads- regional rands can

o"er the promise o +alue ecause otheir lo# o+erheads.

4.9egacy

.9arge regional markets- airlyhomogeneous

D. One to one relationship #ith channelpartners


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partners.

The personal touch that theentrepreneurs are ale to pro+ide issomething that the national le+el

companies fnd it diLcult to replicate.1. 5ntrepreneurial spirit

Cecause o small- take $uick decision – in

any change in the consumer demand

Regional rand: success stories


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• Anchor toothpaste- +egetariantoothpaste

• 8arakh oods- gemini oil- sun>o#er or

• hari – anpur ased detergentpo#der , no 3 ?ust ehind nirma andle+ers

Regional rands : competiti+e response onational rands


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• The national rands are not serious- tomo+es o the regional player

• Cut once reach – threatening to the gro#thand market share o the national rand

• 8rice cut, promotional e"orts and randuilding initiati+es

• 7al o 0//3 national rand sur, colgate,

tide- attle #ith regional rands likehadi, Anchor, A?anta etc,

• %ost o the cases national rands managedto snatch market share rom the regionalrand


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rand

• One +ie# is that the regional rand shouldnot try to emulate national leaders

• *$ueeJed y large Indian companies on

one side and cheap imports on the other,only a e# regional rands make it ig.

• Regional rands can not fght the attle#ith price alone- inno+ation, +alue system,

aster response, entrepreneurial spirit, leanorganisational, Rand G etc.

Crand uilding in rural market

&ustomisation


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• @ind out the needs, #ants and aspirations orural consumers y directing contacting them

• Reengineering the product- according to needo rural consumers

• Then the entire rand uilding e"orts has toe uilt on the asis o their needs andaspiration

•Bokia's // promoted #ith caption o (%adeor India)

Rele+ance

The rand name or the punch line is in


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The rand name or the punch line is in+ernacular language

The same logic applies to the colour,logo and slogan

&elerity – not only the randa#areness spread ut it also has agood impact on o+er all sales

+olume gro#th.

%edia

• The media selected to promote the randis +ery important


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• As the con+entional mass media may notpro+e to e +ery e"ecti+e #hen usedalone – select other elo# the line media-li+e demonstration, contests

• Gemonstration +ans #ith audio +isuale$uipments – ha+e deep rooted impact,than the short commercial on T<

• 7aats can e an e"ecti+e medium orrural marketing

%essage

• %essage should meet the rural


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g

sensiilities• !ith emotion touch and story line

are most e"ecti+e

• &ommercials #ith gimmicky hi-techstory- not #ork #ell

• Rural consumers ha+e strong +isual

sense.


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Recongnition• 5ither does not understand english or

e+en illiterate

• &a+inkare strategy – emptysachets o chic shampoo – contest –y the consumer conscious that he is

uying only the chic shampoo

!ord o mouth pulicity

• Target the right set o opinion leaders-


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• Target the right set o opinion leaders-de+elop the rand recall than the f+eor ten seconds commercial on the T+

• The stories they hear rom others aremore elie+ale or rural

• &rores o rupees in+ested in randuilding – e"orts can go #aste- i not

a+ailale at the retailer shel.

Cranding and rural uyereha+iour


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• !hat is the response o ruralconsumer to#ards the randsW

• In eighteen product categories

consumption o randed itemsaccounted or aout E/2 o the salesin 0// – not only national rands –also include regional and locallymanauactured


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• (randed goods comprise D2 o sale in+illages today and the share o non-randed goods is shrinking dramatically)

• *ign that a market or premium goods is

emerging /.F2 denum talc, /.12shampoo using pantene

• Rural consumers recognises 8arle's pack

o iscuits y its yello# stripes and theay


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• Houth in the amily uy nationalrands

• *enior memers use regional or local

or lo# +alue national rand• T#o di"erent detergents, shampoo,

tooth paste and talcum po#der

might e ound in a single home

8roduct inno+ation anddesign


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• 8roduct are classifed in to 0 categoriesased on nature o inno+ation- original,no+el product and imitation.

• Original, no+el product

• An inno+ati+e frm #ill surely succeed

• 7o#e+er, it should e careul inmaking technical inno+ation . 56 –tractors, pesticides, ertiliJers


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• Imitation• Imitations may result in t#o types

• A poor imitator #ill end up in producing

decepti+e, spurious , ake, copycatproducts.

• On the other hand, a competentimitator may e+en produce an

impro+ed +ersion o the originalproduct

8roduct design decision


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• A product or a ser+ice is an o"ermade y a marketer, #hich has theaility to satisy the needs and #antso customers

• It can e physical and tangile

• *er+ice are intangile- soil testing,

retailer ad+ice, training.

The key consideration in indi+idualproductser+ice o"ers is the


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de+elopment o the product at threele+els

• . core product de+elopment

• 0. Tangile product de+elopment• 3. Augmented product de+elopment

&ore product

• A core product pro+ides enefts that


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correspond to the need specifed yconsumers

• !hat are the needs o consumersW

• !hat kind o orm and unctional utilities are

consumer demandingW

• A core product is one that pro+ides importantorm utility and ensure perormance o theasic unction

• &an the tooth po#der e used to keep theteeth cleanW

Tangile product

• The product concept ecomes +isile andoperational #hen psy

ruralmarketing sem 04

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