RURAL MARKETING STRATEGIES

RURAL MARKETING STRATEGIES

Product Price Promotion Physical

Marketing Mix

Is 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 channels

Tools and Challenges

The basic marketing mix tools 4Ps remains the same in both urban and rural markets, but the challenges of 4As varies

4Ps Tools 4As ChallengesProduct AcceptabilityPrice AffordabilityPlace AvailabilityPromotion Awareness

Contd… Availability : 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. Videocon’s washer without dryer launched specifically for the rural market, Cost Rs 3000/-

Contd… Acceptability : 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 Strategies

PRODUCT STRATEGIES

a company plan for marketing its products

Product Strategies

•New Product Designs•Sturdy Products•Brand Name•Small Unit Packing•Low Priced Packing

Components of Product Personality

1. Core of the product

Basic constituent

associated features viz. Design, Quality, Size Color, Odors Performance Safety

2. Brand Name

3. The Package

5.Sales After Service 4. Warranty

1. 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.

Types of Brands

Types Examples 1. 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 brand SVC Coffee, Bakery products, Mothi Bread etc.

3. 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.

 

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.

  

Issues to be resolved in Product plan

Product line Product mix Packaging Labeling Branding Service after Sales

PRODUCT CONCEPTS & CLASSIFICATION

1.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 & CLASSIFICATION

5. 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, fish

1 Based on tangibility. Tangible goods -- products Intangible goods --services

Characteristic Product Services

TangibilitySeparabilityVariabilityPerish ability

YesYesSometimes , customizedSome products

NoNoYesYes

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

2. Based on purpose of use

Purpose Type User Products

Consumption

Production

Consumer goods

Industrial/agricultural goods

Households

Industries /poultries

Toiletries, cosmetics, beverages, home appliances etc Raw materials, components, agricultural inputs & machinery, animal feeds etc

3. Based on functional life

Type Nature of use Functional life period

Examples

Consumables

Durables

Onetime

Lifetime

Short

Long

Food & beverages , soft drinks

Furniture, computers, cars, camera

4. Based on habits : a. convenienceb. shoppingc. specialty

Goods Product type

Buyer envt.

Buy frequency

Decision Buying place

a.

b.

c.

Consumable

Durables

Durables

Low

Moderate

High

Frequent

Occasion

Once inlife

Simple

Complex

Complex

Paan shop, cooperative stores, fairs, provision store

Fairs, haats, show rooms, chain storesShops in towns ,cities

Concept of Product strategy

Long range competitive plan involving decisions on products, product line and product mix to make proper utilization of resources and achieve marketing goals

Significance

Achieves product- market fit Encourages innovativeness Provides competitive edge Makes better use of resources

Scope Decisions at three levels

Level Strategy1. Product mix Width extension- new product line

Length extension – new product items Depth extension – new product variants

2. Product line Stretching – upward, downwardLine pruning –line modernization

3. Product item Quality, features, design, brand

Augmentations

Contd…2. 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 profits• It is found that the production capacity is limited and

cannot handle all the existing products

Contd… Line ModernizationWhen technological developments change the products

This is to be considered when

Timing: Conversion readiness from old to newCompetitors movesProfitability levels

Approach : when the change be total or a part

Contd…3. Product Item

Core 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 development

Contd…

Packaging

Primary package : to hold the productSecondary package : to hold the primary package : cardboard boxShipping package : carry the products from one place to another

Contd… Three levels of appeal by packages

Level Purpose Characteristics DeterminantsSensory Attention Attractive

DistinctiveVisibility

Easy to identify(shapes, colors)

Emotional Interest desire

AdoptabilityCompatibilityCommunicability

Easy to carryEasy to useEasy to store (milk, tooth pastes, creams)

Rational Evaluation InformativeInteractivePreservativeEconomical

Easy to knowEasy to storeGood to reuseFair price (glass bottles )

Contd…

Branding Brand concept Branding policy: To brand or not to brand

SponsorshipNaming

Branding the need

Contd…Branding arguments for and againstFor : Identify helps processing Image gives competitive advantage Personality convinces consumers Equity enhances valueAgainst

Investment- returns doubtful Image and personality an emotional nonsense Brand equity- sensible but not new

Contd…

Brand sponsoring Manufacturer brand Distributor band

Brand identity Name what Each product to give brand name

individuals with company name: Ponda dream flower talc individuals without company name: Cinthol, Lifebuoy

Family brand name:Raymonds - Raymonds for textiles and Park avenue for shirts, shoes

Associated brand name Usha - fans, sewing machine Name how? Easy to use, understand, distinguish

Contd… Augmented Product : needs of consumersComponents of an offer

Product related Service related Channel

QualityDesign styleFeaturesPackagingBrand image

OrderingDeliver and creditInstallationCustomer trackingRepair & maintenance

ExpertisePerformanceCourtesyAtmosphere

Strategies for marketers Identity strategies

Commodity strategies vegetables, oil, steels Branding strategies brook bond’s red label tea, LG

Sampoorna Customer value strategies

Mass product strategies – Maharaja appliances Ltd, Rajdoot 223

Premium product strategies – Fair &Lovely, Surf Innovation strategies

Rural urban strategies - Bajar electricals, Appollo hospital servicing in rural

Special for rural – Nyle Shampoo, Titan watches

Strategies for marketers Quality strategies

Quality improvement strategies –TVS 50 48 cc to 49.9 cc Spurious goods strategies – Lifebuoy-Love boy

Packaging strategies – Affordability, usage, storability, small, combi packs

Brand strategies Brand extension strategies – New Cinthol Multi band strategy – HLL Soaps- Lifebuoy, Lux Co-branding strategy – IBM and Compaq buys Intel chip

and advertise as ‘Intel’ inside Brand image/ equity management – Onida, Lux

Class discussion

Critically 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 discussion

Explain brand image strategies of any two companies operating in rural areas