Structure of Competition in Rural

India, Product Warranty & After-Sales Service

- Ramkrishna

The structure of competition in rural India is very complex and non-uniform. The competition dynamics change from one village to another, visible in the form of a new local or regional brand on the shelf competing with the national brands.

The structure of the competition can be classified as follows:

The structure of

competition in rural India

Competition from the other urban national

brands

Competition from other regional brands

Competition from other unbranded

urban products

Competition from unbranded

products of a particular

village Indirect competition

from substitutes

Other Urban National Branded Products:

In certain villages, the proliferation of national products is quite evident in the villages that are on the periphery of larger towns because of the spillover of the urban centres. There are exceptions to this rule; certain national brands have reached the remotest villages due to the consistent efforts of the manufacturers.Examples – Surf, Red Label, LG, Nokia, ITC cigarettes.,etc.

Regional Urban Branded Products:In some villages, the regional brands or

the brands of unorganized sector are quite common. These brands are popular locally in the urban areas, having their reach in the rural markets also. They give a competition for the rural products.Example – Santoor soap, Medimix, Tractors like Mahindra in south India, Kissan in Punjab., etc.

Other Unbranded Urban Products:The unbranded urban products also give

a competition to the products in the rural market. The fakes are available at a much lower price than the originals & thus give a tough competition.Example – Nirma – Nima

Parle G – Parlo G Nokia – Nokla etc.

Unbranded Products of Different Village:

The village markets, melas, haats have the people coming from neighbor village for trade for the products produced in the other village. They too give competition to the rural products of the host village.Example – Soaps, Beedies, Toothpastes, Agarbattis., etc.

Indirect Competition from Substitutes:

The substitute products also indirectly give a stiff competition for the rural products. The substitute products in the market may replace the usage of the regular product in a rural market.Example – tea – coffee,

toothpowder – toothpaste., etc

Product Warranty and After-Sales Service:A warranty is a written statement

agreeing to maintain the said property in good working condition for the period mentioned in the warranty agreement. It indirectly shows theworthiness and utilityof the product or goodsas only when the goods are good quality producers will undertake its upkeep for certain period.

In the case of high-value durable products, rural customers attach a great deal of value to the warranty offered on the products. The warranty is an effective selling plank in the rural markets.

Example – Polar fans offer 7 years warranty, which has helped increase its market share in the rural market.

After sales service is the periodic or 'as required' maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty period.

The increased usage of machinery, appliances & equipment has increased the demand for the after sales service in rural areas too. The customer expects a smooth hassle-free maintenance, repairs at low charges and quick & easy availability of spares & accessories at an economical rates.But companies are not taking this issue seriously as most of the service centres are located in urban places. The rural customers end up servicing the product locally as the cost of getting the spares from urban places is uneconomical & inconvenient.

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