Segm enting,Targeting &

Positioning
R U R A L M A R K ETS

Pre-requisites for effective

segmentation
Measurable
Accessible
Differentiable
Substantial

Degrees of segmentation
Mass marketing
Segment marketing
Niche marketing
Micro marketing
Local marketing
Individual marketing

Bases of Segmentation in rural

market
Segmentation
criteria

Relevant variables

Geographic

Region
Village size & density
Climate

Demographic

Age
Gender
Income
Land ownership
Education (SEC Classification)
Occupation (SEC Classification)
Type of house (SEC
Classification)

Psychographics

Lifestyle- Rural, Urban,

Rurban
Personality

Behavioral

Occasions
Benefits sought

Consumer driven segmentation

Indian tractor industry
Previously had product centric approach

segmented market on the basis of power of the

tractors.
For consumer centric approach through
extensive research variables studied were:
Soil type
Landholding
Climate
Age
Family size
Application of tractor
Horsepower of tractor

Targeting
Evaluation of segments
Selection of segments
Coverage of segments
Choosing a coverage strategy

Different coverage strategies

Segmentati
on

Zero

Substantial

Selective

Coverage
strategy

Undifferentiate Differentiated
d

Concentrated

Type of
marketing

Mass
marketing

Segmented
marketing

Niche
marketing

Example

Nirma

Lifebuoy

Multiple
brands of
soaps of HUL

Effective segmentation &

targeting
In 2000, one of worlds leading agri-business

company entered India to market its hybrid

seeds and crop protection products.
Segmented market using variables like
Geography
Adoption behaviour
Crop economics
Usage pattern
Farmer attitude & behaviour

Effective segmentation &

targeting
The company identified 3 main segments Optimal farmers
sub optimal farmers
marginal farmers

-Optimal farmers comprise 1/3rd of total market

-Residing in agriculturally rich states of Punjab,
Haryana, Tamil Nadu & Maharashtra
-Were first to have capitalised on the Green
Revolution.

Effective segmentation &

targeting
Profile of the segment
Early adopters of any new farming
technology
Use preventive rather than curative crop
protection methods
Information seekers
Self dependent for knowledge on the latest
products
Greater access to agricultural markets
Have business outlook towards farming

Effective segmentation &

targeting
The company found the best fit with
this segment of optimal farmers and
targeted them for its existing products.
This segmented approach helps
companies to expand their market and
also help them sell the right products to
the right customers.

Positioning
Identifying the positioning concept
Selecting the positioning concept
Developing the concept
Communicating the concept

Himanis Sona Chandi Chyawanprash

positioned on 2 platforms a healthy body
and a sharp mind.
Tata Ace as Indias first Mini Truck Small
is Big. Chota Hathi.

Identifying the Positioning

Concept
Product differentiation
Service differentiation
People differentiation
Image differentiation

Selecting the Positioning

Concept
Attractive
Distinctive
Pre emptive
Affordable
Communicable

Segmenting, Targeting,
Positioning
Decision

Actions

Segmentation

Identifying various bases for

segmenting markets
Developing profiles of market
segments

Targeting

Evaluating the market

segments for their
attractiveness
Deciding the market coverage
strategy

Positioning

Identifying a set of possible

competitive advantages of the
brand
Selecting the right competitive
advantage
Communicating the chosen
competitive advantage to the