THE 4 Ps IN RURALTHE 4 Ps IN RURAL

MARKETING MIX MARKETING MIX CHALLENGESCHALLENGES

FROM THE 4 Ps TO THE 4 A’SFROM THE 4 Ps TO THE 4 A’S

THE 4 PsTHE 4 Ps THE CHALLENGESTHE CHALLENGES

PRODUCTPRODUCT ACCEPTABILITYACCEPTABILITY

PRICEPRICE AFFORDABILITYAFFORDABILITY

PLACEPLACE AVAILABILITYAVAILABILITY

PROMOTIOPROMOTIONN

AWARENESSAWARENESS

PRODUCT CONCEPTSPRODUCT CONCEPTS

Videocon launched a washing machine Videocon launched a washing machine without dryer, priced at Rs. 3000/-. Did without dryer, priced at Rs. 3000/-. Did it succeed ? Why ?it succeed ? Why ?

Cadbury’s Chocobix well accepted in Cadbury’s Chocobix well accepted in rural. Why ?rural. Why ?

Eveready launched plastic torches in Eveready launched plastic torches in several colours. How did it fare in rural several colours. How did it fare in rural ? Why ?? Why ?

Phillips made it’s models 1.5 times Phillips made it’s models 1.5 times larger and louder than the urban ones. larger and louder than the urban ones. What consumer insight led to this ?What consumer insight led to this ?

PRODUCT CONCEPTSPRODUCT CONCEPTS

HP Gas launched a small 5 KG HP Gas launched a small 5 KG cylinder with the option of both a cylinder with the option of both a stove and a lightstove and a light

Vardan biri launched a longer biri Vardan biri launched a longer biri with the thread tied much closer to with the thread tied much closer to the smoking endthe smoking end

Eicher launched a tractor fitted with Eicher launched a tractor fitted with a 3 KW generator running on the a 3 KW generator running on the engine to take care of the electricity engine to take care of the electricity problem. It failed. Why ?problem. It failed. Why ?

Five Levels of ProductFive Levels of Product

CoreBenefit

Basic Product

ExpectedProduct

AugmentedProduct

PotentialProduct

MOBILITY ENTERTAINMENT

MOTORCYCLE TELEVISION

GOOD SHOCKS PICTURE QUALITY FUEL EFICIENCY CLEAR SOUNDLOW MAINTENANCE EASY TO OPERATE

CARRIES LOAD WORKS ON BATTERYMANOUVERABLE LOCAL LANG. DISPLAY

CAN PULL SMALL VOLTAGE TRAILER FLUCTUATION DOES NOT AFFECT SIGNAL

PRICINGPRICING OPTIONAL/ CAPTIVE PRODUCT PRICINGOPTIONAL/ CAPTIVE PRODUCT PRICING

LOW STICKER PRICE FOR TRACTOR & HIGH LOW STICKER PRICE FOR TRACTOR & HIGH FOR SPARE PARTS/SERVICING eg GiletteFOR SPARE PARTS/SERVICING eg Gilette

ECONOMY/LOW PRICE POINTSECONOMY/LOW PRICE POINTSDISCRETE vs CONTINUOUSDISCRETE vs CONTINUOUS

REFILLS/REUSABLE PACKSREFILLS/REUSABLE PACKS PENETRATION PRICING – RUF ‘N TUFPENETRATION PRICING – RUF ‘N TUF DISCRIMINATORY PRICINGDISCRIMINATORY PRICING

CUSTOMER SEGMENT PRICINGCUSTOMER SEGMENT PRICINGLOOSE PIECES – COILS, CIGS, OIL ETC.LOOSE PIECES – COILS, CIGS, OIL ETC.LOCATION PRICING eg HILLSLOCATION PRICING eg HILLS

RURAL RETAIL SYSTEMSRURAL RETAIL SYSTEMSSPREADSPREAD

35 LAKH OUTLETS @ 211/LAKH POPN.35 LAKH OUTLETS @ 211/LAKH POPN.APPOINT DISTRIBUTORS TILL 10-20,000 APPOINT DISTRIBUTORS TILL 10-20,000

POPN. LEVELPOPN. LEVELPREMISESPREMISES

11% SHOPS HAVE ELECCTRICITY11% SHOPS HAVE ELECCTRICITY88% OWNED NOT RENTED88% OWNED NOT RENTEDIN 70% OUTLETS 2-3 PEOPLE WORK IN 70% OUTLETS 2-3 PEOPLE WORK

PART-TIMEPART-TIMEAVG STR IS 1 MONTHAVG STR IS 1 MONTH

TYPES OF RETAIL OUTLETSTYPES OF RETAIL OUTLETS

TYPE OF SHOPSTYPE OF SHOPS %%

Provision StoreProvision Store 6666

Pan/Bidi Pan/Bidi 6060

Ration/Fair PriceRation/Fair Price 3232

Cycle RepairCycle Repair 2828

TextilesTextiles 1414

Vegetables/FruitsVegetables/Fruits 1414

LiquorLiquor 1212

ChemistChemist 88

OthersOthers 1212

Types of Rural Distribution Types of Rural Distribution SystemsSystems

Traditional - direct from companyTraditional - direct from company Traditional - Super stockist drivenTraditional - Super stockist driven Traditional – wholesaler drivenTraditional – wholesaler driven Hub & Spoke - CokeHub & Spoke - Coke Non – traditional :Non – traditional :

Haats incl role of NYKSHaats incl role of NYKS MandisMandis Hawkers for beedi/cigarettesHawkers for beedi/cigarettes Last MileLast Mile SHGsSHGs

RURAL COMMUNICATIONRURAL COMMUNICATION

Challenges in Rural Challenges in Rural CommunicationCommunication

HeterogeneityHeterogeneity2 National Languages2 National Languages16 Schedules languages16 Schedules languages47 languages used in primary education47 languages used in primary education98 languages used in Print Media98 languages used in Print Media71 used on Radio71 used on Radio13 languages in which films are made13 languages in which films are made114 local vernaculars114 local vernaculars

Challenges in Rural Challenges in Rural CommunicationCommunication

SpreadSpreadDispersion of habitationDispersion of habitationLiteracy levels vary (Kerala 90% - Bihar Literacy levels vary (Kerala 90% - Bihar

44%)44%)Electronic media reach varies – (Kerala Electronic media reach varies – (Kerala

63% - Bihar 17%)63% - Bihar 17%)Print Media (Kerala 65% - Bihar 9%)Print Media (Kerala 65% - Bihar 9%)

Challenges in Rural Challenges in Rural CommunicationCommunication

Understanding Rural AudienceUnderstanding Rural Audience2 sets – educated & illiterate2 sets – educated & illiterateDeveloped/underdeveopedDeveloped/underdeveopedImportance of “Touch & Feel” for rural Importance of “Touch & Feel” for rural

audienceaudienceComfort with & belief in oral media due to Comfort with & belief in oral media due to

traditiontraditionPerceptions vary – the black cat syndromePerceptions vary – the black cat syndromeSocial ClassesSocial ClassesRole of Rational, Emotional & Moral Role of Rational, Emotional & Moral

appealsappeals