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RURAL INDIA…a new dawn

India needs creative solutions to start a revolution which
can take its villages fast forward in time – converting them
into economically viable units and growth engines,
harnessing the power of the villagers, and opening up new
horizons with the promise of a better tomorrow.
Sr No Topic Page No.

1 Introduction 5
2 Rural Marketing - Concept 10
3 What makes rural markets attractive? 11
4 Rural Consumer Insight 12
5 Some Myths about Rural Market 13
6 Why Different Strategies? 14
6 Opportunities 15

Company 1 – TATA Tea

7 Company Profile 17
8 Products & Brands 18
9 4P’s of Marketing 20

Company 2 – Society Tea

10 Introduction 25
11 Company profile 26
12 Mission Statement 26
13 Benefits of Society Tea 27
14 4P’s of Marketing 29

New Company Launched

Parivar Tea Limited

15 Company Profile 32
16 Why Go Rural 32
17 4P’s of Marketing 34
18 STP of Parivar Tea 35
19 Cases & Conclusion 36,37

Before gamboling into issues like where the Indian rural market
stands and the opportunities for corporate’s to explore there... let's
look at the definition of urban and rural India. The Census defined
urban India as - "All the places that fall within the administrative limits
of a municipal corporation, municipality, cantonment board etc or
have a population of at least 5,000 and have at least 75 per cent
male working population in outside the primary sector and have a
population density of at least 400 per square kilometer. Rural India,
on the other hand, comprises all places that are not urban!"

Now for some facts and figures The Indian rural market today
accounts for only about Rs 8 billion (53 per cent - FMCG sector, 59
per cent durables sale, 100 per cent agricultural products) of the total
ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share.
So clearly there seems to be a long way ahead.

Time and again marketing practitioners have waxed eloquent about

the potential of the rural market. But when one zeroes in on the
companies that focus on the rural market, a mere handful names
come to mind. Hindustan Lever Limited (HLL) is top of the mind with
their successful rural marketing projects like 'Project Shakti' and
'Operation Bharat'. The lynchpin of HLL's strategy has been to focus
on penetrating the market down the line and focusing on price point.
Furthermore, activating the brand in the rural market through
activities, which are in line with the brand itself, is what sums up
HLL's agenda as far as the rural market is concerned informs
MindShare Fulcrum general manager R Gowthaman. Amul is another
case in point of aggressive rural marketing. Some of the other
corporates that are slowly making headway in this area are Coca
Cola India, Colgate, Eveready Batteries, LG Electronics, Philips,
BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero
Honda to name a few.

Wheel's wall
Khaitan fans' ad on a horse cart

We can safely say that until some years ago, the rural market was
being given a step-motherly treatment by many companies and
advertising to rural consumers was usually a hit and miss affair. More
often than not, the agenda being to take a short-cut route by pushing
urban communication to the rural market by merely transliterating the
ad copy. Hence advertising that is rooted in urban sensitivities didn't
touch the hearts and minds of the rural consumer. While, this is
definitely changing, the process is slow. The greatest challenge for
advertisers and marketers continues to be in finding the right mix that
will have a pan-Indian rural appeal. Coca Cola, with their Aamir Khan
ad campaign succeeded in providing just that.

Corporates are still apprehensive to "Go Rural." A

few agencies that are trying to create awareness
about the rural market and its importance are
Anugrah Madison, Sampark Marketing and
Advertising Solutions Pvt Ltd, MART, Rural
Relations, O&M Outreach, Linterland and RC&M,
to name a few. Also, the first four agencies
mentioned above have come together to form The
Rural Network. The paramount objective of the
Lifebuoy's wall Network is to get clients who are looking for a
painting in rural national strategy in rural marketing and help them
India in executing it across different regions.

Interestingly, the rural market is growing at a far greater speed than

its urban counterpart. "All the data provided by various agencies like

NCAER, Francis Kanoi etc shows that rural markets are growing
faster than urban markets in certain product categories at least. The
share of FMCG products in rural markets is 53 per cent, durables
boasts of 59 per cent market share. Therefore one can claim that
rural markets are growing faster than urban markets," says Sampark
Marketing and Advertising
Solutions Pvt Ltd managing
director R A Patankar.

Coca-Cola India tapped the rural

market in a big way when it
introduced bottles priced at Rs 5
and backed it with the Aamir
Khan ads. The company, on its "Yaara da Tashan..." McCann
behalf, has also been investing Erickson's ads with Aamir Khan
steadily to build their created universal appeal for
infrastructure to meet the growing Coca Cola
needs of the rural market, which
reiterates the fact that this multinational has realised the potential of
the rural market is going strength to strength to tap the same.

Clearly the main challenge that one faces

while dealing with rural marketing is the
basic understanding of the rural consumer
who is very different from his urban
counterpart. Also distribution remains to be
the single largest problem marketers face
today when it comes to going rural.
In 2000, ITC took an "Reaching your product to remote locations
initiative to develop spread over 600,000 villages and poor
direct contact with infrastructure - roads, telecommunication etc
farmers who lived in and lower levels of literacy are a few hinges
far-flung villages in that come in the way of marketers to reach
Madhya Pradesh. ITC's the rural market," says MART managing
E-choupal was the director Pradeep Kashyap.
result of this initiative.
Citing other challenges in rural marketing,
Patankar says, "Campaigns have to be tailor made for each product
category and each of the regions where the campaign is to be
executed. Therefore a thorough knowledge of the nuances of

language, dialects and familiarity with prevailing customs in the
regions that you want to work for is essential. The other challenge is
the reach and the available means of reaching out to these markets,
hence the video van is one of the very effective means of reaching
out physically to the rural consumers."

The fact of the matter remains that when compared to the Indian
urban society, which is turning into a consumerism society; the rural
consumer will always remain driven by his needs first and will
therefore be cost conscious and thrifty in his spending habits.
"Decision-making is still conscious and deliberated among the rural
community. But nevertheless, the future no doubt lies in the rural
markets, since the size of the rural market is growing at a good pace.
There was a time when market predictions were made on the basis of
the state of the monsoon but this trend has changed over the years;
there is a large non farming sector, which generates almost 40 per
cent of the rural wealth. Hence the growth in the rural markets will be
sustained to a large extent by this class in addition to the farmer who
will always be the mainstay of the rural economy," affirms Patankar.

"Although the melting of the urban - rural divide will take a while, this
is not for want of the availability of the means but for want of the rural
consumer's mindset to change; which has its own logic, which is
driven by tradition, custom and
values that are difficult to shed,"
he points out.

Fulcrum's Gowthaman says, "The

biggest impending factor or
deterrent on rural monies going
up is that there is a general
sense of trying to benchmark cost
per contact (CPC). The television Satellite dish antennas reach
CPC is going to anyways be rural India
cheaper to rural CPC and unless
and until the volume - value equation turns the other way round, you
will not be able to spend disproportionate monies in the rural market."

For HLL, a one rupee or a five rupee sachet
or the Kutti Hamam (the small Hamam)
helps in giving the consumers a trial
opportunity. While it does help in generate
volume but not in terms of values. "Till the
time that volume - value equation is
managed better, the CPC is preventing
anybody to look at rural at a large scale
activation programme," reiterates
Typical shop in rural Gowthaman.
India stocked with
sachets, etc Ultimately, the ball lies in the court of rural
marketers. It's all about how one
approaches the market, takes up the challenge of selling products
and concepts through innovative media design and more importantly

Anugrah Madison's chairman and managing director RV Rajan sums

up, "There is better scope for language writers who understands the
rural and regional pulse better. I also see great scope for regional
specialists in the areas of rural marketing - specialists like Event
Managers, Wall painters, folk artists, audio visual production houses.
In fact all those people who have specialised knowledge of a region
are bound to do well, thanks to the demands of the rural marketers."

So the fact remains that the rural market in India has great potential,
which is just waiting to be tapped. Progress has been made in this
area by some, but there seems to be a long way for marketers to go
in order to derive and reap maximum benefits. Moreover, rural India
is not so poor as it used to be a decade or so back. Things are sure a

Rural Marketing - Concept

In recent years, rural markets have acquired significance, as the

overall growth of the economy has resulted into substantial increase
in the purchasing power of the rural communities. On account of
green revolution, the rural areas are consuming a large quantity of
industrial and urban manufactured products. In this context, a special
marketing strategy, namely, rural marketing has emerged. But often,
rural marketing is confused with agricultural marketing – the latter
denotes marketing of produce of the rural areas to the urban
consumers or industrial consumers, whereas rural marketing involves
delivering manufactured or processed inputs or services to rural
producers or consumers.

What makes Rural Market
Rural market has following arrived and the following facts
substantiate this:

 742 million people

 Estimated annual size of the rural market
o FMCG Rs 65,000 Crore
o Durables Rs 5,000 Crore
o Agri-inputs (incl. tractors) Rs 45,000 Crore
o 2 / 4 wheelers Rs 8,000 Crore
 In 2001-02, LIC sold 55 % of its policies in rural India.
 Of two million BSNL mobile connections, 50% in small
 Of the six lakh villages, 5.22 lakh have a Village Public
Telephone (VPT)
 41 million Kisan Credit Cards issued (against 22 million credit-
plus-debit cards in urban) with cumulative credit of Rs 977
billion resulting in tremendous liquidity.
 Of 20 million Rediffmail signups, 60 % are from small towns.
50% transactions from these towns on Rediff online shopping
 42 million rural HHs availing banking services in comparison to
27 million urban HHs.
 Investment in formal savings instruments: 6.6 million HHs in
rural and 6.7 million in urban

Rural Consumer Insight
 Rural India buys:
o Products more often (mostly weekly)
o Buys small packs, low unit price more important than
 In rural India, brands rarely fight with each other; they just have
to be present at the right place
 Many brands are building strong rural base without much
advertising support
o Chik shampoo, second largest shampoo brand
o Ghadi detergent, third largest brand
 Fewer brand choices in rural: number of FMCG brand in rural is
half that of urban
 Buy value for money, not cheap products

Some Myths about Rural Markets

I. Myth-1: Rural Market Is a Homogeneous Mass

Reality: It’s a heterogeneous population. Various Tiers are present

depending on the incomes like Big Landlords; Traders, small farmers;
Marginal farmers: Labors, artisans. State wise variations in rural
demographics are present viz. Literacy (Kerala 90%, Bihar 44%) and
Population below poverty line (Orissa 48%, Punjab 6%)

II. Myth-2: Disposable Income Is Low

Reality: Number of middle class HHs (annual income Rs 45,000- 2,

15,000) for rural sector is 27.4 million as compared to the figure of
29.5 million for urban sector. Rural incomes CAGR was 10.95%
compared to 10.74% in urban between 1970-71 and 1993-94.

III. Myth-3: Individuals Decide About Purchases

Reality: Decision making process is collective. Purchase process-

influencer, decider, buyer, one who pays can all be different. So
marketers must address brand message at several levels.Rural youth
brings brand knowledge to Households (HH).

Why Different Strategies?
Rural markets, as part of any economy, have untapped potential.
There are several difficulties confronting the effort to fully explore
rural markets. The concept of rural markets in India is still in evolving
shape, and the sector poses a variety of challenges. Distribution
costs and non availability of retail outlets are major problems faced by
the marketers. The success of a brand in the Indian rural market is as
unpredictable as rain. Many brands, which should have been
successful, have failed miserably. This is because, most firms try to
extend marketing plans that they use in urban areas to the rural
markets. The unique consumption patterns, tastes, and needs of the
rural consumers should be analyzed at the product planning stage so
that they match the needs of the rural people. Therefore, marketers
need to understand the social dynamics and attitude variations within
each village though nationally it follows a consistent pattern. The
main problems in rural marketing are:

 Understanding the rural consumer

 Poor infrastructure
 Physical Distribution
 Channel Management
 Promotion and Marketing Communication

Dynamics of rural markets differ from other market types, and

similarly rural marketing strategies are also significantly different from
the marketing strategies aimed at an urban or industrial consumer.


 Infrastructure is improving rapidly.

o In 50 years only 40% villages connected by road, in next
10 years another 30%
o More than 90 % villages electrified, though only 44% rural
homes have electric connections
o Rural telephone density has gone up by 300% in the last
10 years; every 1000+ pop is connected by STD
 Social Indicators have improved a lot between 1981 and 2001
o Number of “pucca” houses doubled from 22% to 41% and
“kuccha” houses halved (41% to 23%)
o Percentage of BPL(Below Poverty Line) families declined
from 46% to 27%
o Rural Literacy level improved from 36% to 59%
 Low penetration rates in rural so there are many marketing
Durables Urban Rural Total (% of rural HH)
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0
Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6
 Marketers can make effective use of the large available
o Post offices 1,38,000
o Haats (periodic markets) 42,000
o Melas (exhibitions) 25,000
o Mandis (agri markets) 7,000
o Public distribution shops 3,80,000
o Bank branches 32,000

 Proliferation of large format rural retail stores which have been
successful also.
o DSCL Haryali stores
o M & M Shubh Labh stores
o TATA/Rallis Kisan Kendras
o Escorts rural stores
o Warnabazaar, Maharashtra (annual sale Rs 40 crore)

Company Profile

Set up in 1964 as a joint venture with UK-based James Finlay and

Company to develop value-added tea, the Tata Tea Group of
Companies, which includes Tata Tea and the UK-based Tetley
Group, today represent the world's second largest global branded tea
operation with product and brand presence in 40 countries. Among
India's first multinational companies, the operations of Tata Tea and
its subsidiaries focus on branded product offerings in tea but with a
significant presence in plantation activity in India and Sri Lanka.

The consolidated worldwide branded tea business of the Tata Tea

Group contributes to around 86 per cent of its consolidated turnover
with the remaining 14 per cent coming from Bulk Tea, Coffee, and
Investment Income. The Company is headquartered in Kolkata and
owns 27 tea estates in the states of Assam and West Bengal in
eastern India, and Kerala in the south.

Products & Brands

The company has five major brands in the Indian market - Tata Tea,
Tetley, Kanan Devan, Chakra Gold and Gemini -- catering to all major
consumer segments for tea. The Tata Tea brand leads market share
in terms of value and volume in India and the Tata Tea brand is
accorded "Super Brand" recognition in the country. Tata Tea's
distribution network in the country with 38 C&F agents and 2500
stockists caters to over 1.7 million retail outlets (ORG Marg Retail
Audit) in India.

The company has a 100% export-oriented unit (KOSHER & HACCP

certified) manufacturing Instant Tea in Munnar, Kerala, which is the
largest such facility outside the United States. The unit's product is
made from a unique process, developed in-house, of extraction from
tea leaves, giving it a distinctive liquoring and taste profile. Instant
Tea is used for light density 100% Teas, Iced Tea Mixes and in the
preparation of Ready-to- drink (RTD) beverages.

With an area of approx 15,900 hectares under tea cultivation, Tata

Tea produces around 30 million kg of Black Tea annually.

4P’s of Marketing of


Bulk Tea

All grades of CTC Teas

All grades of Orthodox Teas

Organic Tea - Orthodox grades Teas

are supplied in packaging as per ISO norms as well as customer

requirements viz. 4-ply Kraft Paper Sacks, Multiwall Paper Sacks,
Rigid T--Sacks, Polywoven Sacks, Currugated Fibre Carlons,
Polylined Jute Bags etc.

Instant Tea

Instant Tea Division caters to customer specific product and are used
for light density 100% Teas, Iced Tea Mixes and in the preparation of
Ready to Drink (RTD) beverages. Instant Tea powder is packed in
bulk packages of 20/25/35 kg each.

Intant tea powder - heavy density

Instant tea powder - institutional density

Instant tea powder - grocery density
Micro milled instant tea powder


Marketers need to understand the psyche of the rural consumers and
then act accordingly. Rural marketing involves more intensive
personal selling efforts compared to urban marketing. Firms should
refrain from designing goods for the urban markets and subsequently
pushing them in the rural areas. To effectively tap the rural market a
brand must associate it with the same things the rural folks do. This
can be done by utilizing the various rural folk media to reach them in
their own language and in large numbers so that the brand can be
associated with the myriad rituals, celebrations, festivals, “melas” and
other activities where they assemble.

All the prices of the products depend upon the package ie 50gms or

Normally a Penetrating Strategy is used frequently


Place: (Distribution)
One of the ways could be using company delivery vans which can
serve two purposes- it can take the products to the customers in
every nook and corner of the market and it also enables the firm to
establish direct contact with them and thereby facilitate sales

However, only the bigwigs can adopt this channel. The companies
with relatively fewer resources can go in for syndicated distribution
where a tie-up between non-competitive marketers can be
established to facilitate distribution. Annual “melas” organized are
quite popular and provide a very good platform for distribution
because people visit them to make several purchases. According to
the India n Market Research Bureau, around 8000 such melas are
held in rural India every year.

Rural markets have the practice of fixing specific days in a week as

Market Days (often called “Haats’) when exchange of goods and
services are carried out. This is another potential low cost distribution
channel available to the marketers. Also, every region consisting of
several villages is generally served by one satellite town (termed as
“Mandis” or Agri-markets) where people prefer to go to buy their
durable commodities. If marketing managers use these feeder towns
they will easily be able to cover a large section of the rural population.


Firms must be very careful in choosing the vehicle to be used for
communication. Only 16% of the rural population has access to a
vernacular newspaper. So, the audio visuals must be planned to
convey a right message to the rural folk. The rich, traditional media
forms like folk dances, puppet shows, etc with which the rural
consumers are familiar and comfortable, can be used for high impact
product campaigns.


"Time for you and time for me,

And time yet for a hundred in decisions,
And for a hundred visions and revisions,
Before the taking of a cup of tea"

An aromatic story

It's happening slowly, surely and smoothly.

People of the world are now waking up

To the pleasures of SOCIETY TEA

It comes from the people who have been giving the

World some of the finest blends of tea, since

1933 - Hasmukhrai & Co. The Company

launched Society Tea to meet

the ever-increasing demands from

distant shores such as yours.

Wherever tea is a tradition, Society Tea

Is always welcome, because here is a blend

Of such fine flavour, freshness and consistency,

That meets your expectations.

It's everything your cup of tea should be.

Company Profile
Tea is a tradition in our country. As, no doubt, it is in yours as well.
But slowly, surely, people all over are being a little more conscious
about the tea that they drink. Slowly but surely, tea is being referred
to as SOCIETY TEA. Surely, one more delightful indication of the
world growing smaller. And in a way, of people coming closer. Now
let's raise our cups, to this cheerful tradition and to our little world of
big-tasting teas.

Mission Statement

The objective is to create new blends for the world.

Teas of a superlative quality that taste buds had never known

To extend its reach, cross geographical and cultural boundaries and

reaching the hearts of the people.

Benefits of Society Tea –
Health Benefits
Want the least expensive answer to memory problem? Drink tea,
every few hours a day, say recent findings by Unilever Research
Laboratories. After much experiment with combinations of various
kinds of drugs that supposedly enhanced memory power, the findings
seek to subtly suggest that the most affordable remedy, without
medical expenses involved, was already available and yet ignored.

Findings by Unilever point to a strong link between tea and an

increase in mental alertness and other mental and physical attributes.
Drinking tea every few hours can help prevent a decline in mental
alertness and performance throughout the day.

Tea is a rich source of flavonoids. The flavonoids in tea are found to

be effective in improving blood circulation and skin health. Research
in Japan and Netherlands also indicate that tea prevents strokes and
heart attacks, certain cancers, check cholesterol levels and inhibit
formation of dental plaque.

Studies have shown that black tea consumption reduces the risk of
heart disease and stroke. It maintains a healthy circulatory system of
arteries and veins.

Today researchers are finding that a steaming cup of tea can relieve
more than just the stress of a harried day. Drinking the brew has
been linked with a lowered risk of everything from tooth decay to
heart disease to stroke.

In a study of more than 1000 Japanese men, the more green tea they
drank, the lower their concentrations of blood cholesterol dropped.
And recently, University of Minnesota researchers found a link
between tea consumption and a decreased risk for cancers of

digestive and urinary tract organs in women. Study on humans on tea
and heart health, revealed that drinking more than five cups of black
tea had the lowest risk of severe atherosclerosis.


4P’s of Marketing of



Available in 50, 100, 250 &

500 grams respectively.

Available in 250, 500 grams

and 1 Kg. only.

In Packs of 25, 50 & 100


Available in 250 grams Jars on

Request. only.

Available in 250 & 500 grams

Jar only.

Available on request only.



The Pricing strategy used by Society Tea is somewhere in between
penetrating and skimming, but the major part is occupied by

Prices of Tea are as per the product packages.

Eg;- 100 gms are @ Rs.20/-


Place: (Distribution)
Rural markets have the practice of fixing specific days in a week as
Market Days (often called “Haats’) when exchange of goods and
services are carried out. This is another potential low cost distribution
channel available to the marketers. Also, every region consisting of
several villages is generally served by one satellite town (termed as
“Mandis” or Agri-markets) where people prefer to go to buy their
durable commodities. If marketing managers use these feeder towns
they will easily be able to cover a large section of the rural population.

Distribution of Society is all around the Urban and Rural Market.

The Manufacturer gives it to the wholesaler, wholesaler in turn gives

it to the retailer and then finally to the customers.


They arrested the eyes. There was something different about them.
Something fresh. Something elegant. Little wonder then, that tea-
lovers felt persuaded to pick them up and take them home. Yes,
we're talking about the package.

As a matter of fact, everything was designed to appeal to the senses.

From the packaging to the point-of-sales attractions. From the press
advertisements to the posters. From radio jingles to TV commercials.
The jingle "Tea. Tea. Tea…………." caught on so much that people
we heard humming it, while walking into stores, waiting for trains,
watching a cricket-match or generally to ease out their boredom.

Even children were heard singing it. One felt a freshness, a newness,
a sense of contentment similar to the feeling one gets after each sip
of Hasmukhrai & Co.'s teas. You couldn't expect any less from them.
After all, they take so much trouble to create such exquisite blends of
tea. Each of these pieces of communication was an invitation in every
sense of the word. In fact, the first ad for SOCIETY Tea said
"Welcome to the Society….". It was an invitation well accepted, for
the society of tea lovers is growing larger, day by day. We're tempted
to say " Tea cheers for the design."

Parivar Tea Limited

Company Profile:

• A newly established company in the tea & coffee industry

• Board of Directors are the group members and is a partnership
• Manufacturing Plant is at Vashi and head office is at Malad

Why go Rural?

Little has changed in the villages of India in the past decades.

Schools have been built, but many still lack teachers and appropriate
teaching methods. There are phone lines in many villages, but getting
a dial tone is still a challenge. Electricity supply is at best intermittent.
Health care is still limited in its availability.

India’s villages are dependent on agriculture for much of their

sustenance. Drought is a common occurrence across much of India.
As a result, villagers, for the most part, remain a poor lot - the per
capita income of India’s villages is perhaps no more than Rs 12-
18,000 (USD 240-360, USD1 = INR50) per annum, as compared to
the national average of Rs 25,000 (USD 500).

Perhaps, most importantly, the opportunities available to villagers are

not dramatically different from what they were many years ago.
Villages in India are where you live if you have no other option.
And yet, India is in its villages. 70% of Indians live there. Even as one
India races ahead with optimism towards the future, there is another
India which seems to be stuck in the past. If India as a nation has to

progress, there is little doubt that India’s villages too have to

Parivar Tea Limited

4P’s of Marketing of


There are 2 types of tea:

• General Tea
• Herbal Tea


Prices are set according to the rural market / village. Prices are set
after considering whether it is a general tea or a herbal tea. Prices will
be a bit high for herbal tea, as It contains herbs which are costlier.
Also as per the packages of tea



The distribution pattern of our product will be different form the usual
pattern. The first this is that the company will have a company outlet
in each and every village which will eliminate the problem releting
with middlemen. Along with this tea pouches will be available at every
shop in villages.


Initially we will be giving free sampling for the first user, thereby
promoting the brand

 Wall painting at different places

 Mouth to Mouth Publicity
 Mobile Publicity with the use of vans and bicycles
 Free tea at festivals and other occasion and also at our outlets

S T P of Parivar Tea Limited

Segmenting / Targeting / Positioning

1. Segmenting: Buyers behavioral segmentation

All variables are in some way or the other related to buyers behavior,
which vary often confuses marketers. There is a difference between
the buyers characteristics reflected in there geographic,
demographics and psychographic profiles, and there buying behavior.
Buyer behavior involves many elements like purchasing occasion
benefits, user status, rate of product usage, loyalty rate, and attitude
towards the product

2. Targeting: -

The company targets the whole family ie anyone in the family can
drink the tea. Also special for farmers as it also contains herbs which
will refresh farmers

3. Positioning

A Marketer can position his product in various ways to develop or
enhance it’s value to the consumer. He also do it according to :

• Product Characteristics / Consumer Benefits

• Price Quality
• Use or Application
• Product User
• Product Class
• Culture Symbols
• Competitors

Your company positions it’s products as a Quality product at fare

prices and consumer benefits which is a herbal tea

Some Live Examples

1. One very fine example can be quoted of Escorts where
they focused on deeper penetration. They did not rely on T.V or
press advertisements rather concentrated on focused approach
depending on geographical and market parameters like fares,
melas etc. Looking at the ‘kuchha’ roads of village they positioned
their bike as tough vehicle. Their advertisements showed
Dharmendra riding Escort with the punch line ‘Jandar Sawari,
Shandar Sawari’. Thus, they achieved whopping sales of 95000
vehicles annually.

2. HLL started ‘Operation Bharat’ to tap the rural markets.

Under this operation it passed out low–priced sample packets of
its toothpaste, fairness cream, Clinic plus shampoo, and Ponds
cream to twenty million households.

3. ITC is setting up e-Choupals which offers the farmers all
the information, products and services they need to enhance farm
productivity, improve farm-gate price realization and cut
transaction costs. Farmers can access latest local and global
information on weather, scientific farming practices as well as
market prices at the village itself through this web portal - all in
Hindi. It also facilitates supply of high quality farm inputs as well as
purchase of commodities at their doorstep.

4. BPCL Introduced Rural Marketing Vehicle (RMV) as their

strategy for rural marketing. It moves from village to village and fills
cylinders on the spot for the rural customers. BPCL considered
low-income of rural population and therefore introduced a smaller
size cylinder to reduce both the initial deposit cost as well as the
recurring refill cost.

Thus looking at the challenges and the opportunities which rural
markets offer to the marketers it can be said that the future is very
promising for those who can understand the dynamics of rural
markets and exploit them to their best advantage. A radical change in
attitudes of marketers towards the vibrant and burgeoning rural
markets is called for, so they can successfully impress on the 230
million rural consumers spread over approximately six hundred
thousand villages in rural India.


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