RURAL MARKETING STRATEGY

New Entrant
Company starts Rural Market first &
then ventures in Urban Market
(eg Cavin Kare Chik & Meera
ENTERINING Shampoo)

THE Mid- Entrant

RURAL Company starts Rural Market after

success in Urban Market
MARKET (eg HLL, LG)

Late - Entrant
Company starts Rural Market after
success in Urban Market for long
(eg Cadbury)
R Retain
Purpose G Grow the market
A Add
 P RURAL MARKETING STRATEGY
L
Profile the Rural Market
A
N
Profile the Consumer
N
1 I
Market Behaviour & MR
N
G
Segmentation Targeting Positioning

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E Rural Product
X
E Rural Pricing
2 C
Rural Distribution
U
T
I Rural Sales Force Management
O
N Rural Communication
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F
E Monitor the Rural Strategy
3 E
D
B Feedback & Control
A
C
K
 DEVELOPMENTAL MARKETING
Developmental marketing is a process through which awareness is created
>could be demonstration
>could be presentation
>Free samples
>could be through up eg tie up with Bank, tie up with Petrol/Diesel pumps
(Hyndai did with IOC and PNB and SBI subsidiaries >30% sale of Hyundai from
Rural/Semi Urban areas)
Awareness

Trial

Purchase

Post-Purchase Satisfaction

Colgate – program Operation Jagruti

Switch from Charcoal to Colgate tooth powder
HLL - Free samples of Lifebuoy
Cavin Kare – Free sample of Chik Champoo
Marico Industries – Parachute coconut oil
“Sudhata ki pehchan” –smell to differentiate between real and spurious
RURAL PRODUCT

RURAL PRICE

RURAL DISTRIBUTION

RURAL SALES FORCE MANAGEMENT

RURAL COMMUNICATION
Rural Product

Product to be marketed with the requirements of the Rural Consumer should not be an extension of
urban offerings
(Philips launched Free Power Radio – does not require Battery/electricity you wind it with a lever and
radio runs For approximately 30 min. FMCG
Classification (HLL, Dabur, Marico, Colgate=Palmolive Coke, Pepsi)
Consumer Durables
Of
TV ,Fridge, Fan, Presssure Cooker, Cycle, Two wheelers,
Sewing machines, watch, mixer grinder, radio, music system,
Rural
Fans, Washing machines (Philips, LG, Videocon, Onida )
Products Services
Telecom, Banking, Health care ,Insurance (Airtel, BSNL, SBI,
PNB,Dena bank,)
Agri-inputs
Seeds, pesticides, tractors (Rallis India, Bayer,)

Product Maturity
Life
Cycle Take Off Decline
(PLC)
Launch
 Points to note

Rural Products

Easy to Use
After sales support
Conveniently packed- success of Sachets
Product literature to be simple
Have a logo – easy to identify eg Thums Up

Rural Packaging
Packaging material –plastics, poly packs, unbreakable materials
Looks - attractive colors (like all tea companies)
Size and convenience- small is beautiful

Rural Branding
1. Brand Name
2 Create Brand Identity
3 Enhance Recognition
4 Build a Brand Image
5 Countering Spurious brands : Look alike/ Spell alike / Duplicates

Enhancing Brand Strategies with Social Perspective

Soaps for Hygiene
Cooking gas for environment
Creating need by more awareness
Partnering with a long term perspective requires total belief and Commitment - to the people, to the processes, to
their own employee. Need to work for a cause – ITC, Hindustan Petroleum, HLL ,
Colgate Palmolive , Several Banks are a few such examples
RURAL PRICE
Pricing In Rural Market plays a key role in the success of a product

RURAL PRICING OBJECTIVES

 Have a long run perspective

Idea is to penetrate first

Increase Volume
Make using the product a habit
Volumes to take care of the Margins
Keep eye on Competition Price

The following may help in addressing the issue

Low cost –less amount (small packages- sachets)
Simple but colorful packaging – eg. success of biscuits
Refill packs
Value engineering – eg soya protein in place of milk protein

METHODS OF PRICING
1. Cost –Plus Pricing = cost of product +distribution +profit
2. Value Pricing (VFM-Value for Money) High Benefit
3. Power Price – eg Re 1, Rs 2, 3, 5,10
4. Penetration Price – Introduce at low and hike price after success
5. Differential Pricing –Different price for different market
6. Price Gap – Comp prices – range
 RURAL DISTRIBUTION

Physical Distribution Channel of Distribution

PHYSICAL DISTRIBUTION

Transportation

Warehousing Communication

Transportation Railways, Roads ,Waterways, Animals

Communication ITC using internet, Mobile users by fisherman

Warehousing (Three Tier Rural Warehousing Set Up)

Central/State Warehousing
Cooperatives
Rural Godowns
WHY CHANNELS OF DISTRIBUTION
Geographical Spread
Dealers are few – hence required to bank on a number of resources
Financial Viability
Inadequate Bank and Credit Facilities
TO ADDRESS THE ABOVE CHALLENGES
Rely on Private Village Shops
Supply Chain Stores
Rural Super Market
Small companies tie up with large companies – Leverage/Syndicate
Distribution network of Marico to sell Tide by P&G D-dealer
Satellite Distribution SD- Sub Dealer
R-Retailer

SD SD
R
D
SD SD
SD SD SD SD

Whole- SD
D Saler D
Town
SD SD
SD SD
SD SD
D
SD SD
PLANNING FOR SALES FORCE MANAGEMENT
SET THE PERSONAL SELLING OBJECTIVES

FORMULATE THE SALES POLICIES

STRUCTURE THE SALES FORCE

SIZE OF THE SALES FORCE

ASSIGNING SALES TARGETS

CREATING SALES FORCE- SELECT, RECRUIT, TRAIN

SALES FORCE COMPENSATION, MOTIVATION, SUPERVISION

SALES COMMUNICATION & REPORTING

SALES COORDINATION/SALES CONTROL

TRAITS OF A RURAL SALESPERSON

Hardworking

Have Empathy
Common to both
Urban & Rural Sales person
Enthusiastic

Perseverance

Knowledge

Attitude

Skills

Additional traits for making it Big in Rural Areas

Willingness to work in Rural Areas

Adopting to cultural differences
Down to earth approach
Fluent in local language
Developmental approach – Create not only Communicate
The Success of Organizations depends on lot on the Sales Force

They are the face of the Organization – the Ambassador

They are the ones who have direct interaction with

The Potential Consumer/Customer

The Users
The Dealers
The Distributors
The Retailers

They are a major link to the chain and establish the link

They are the ones who help in building Trust

They need to break the rigid ideas and preconceived notions

 RURAL COMMUNICATION

Effective Communication goes a long way in establishing the right Messages and thereby
more interaction with Potential Customers Communication, however, is not complete if
there is no feedback It is very important to re enforce messages in Rural areas

Factors Affecting Rural Communication

Literacy level
Media Habits
Traditional approach
High resistance – more so initially
Lavish at occasions (eg Marriage)
Purchasing power also depending on weather- the crops
Inequitable distribution of wealth
Too many languages
Culture
 RURAL MEDIA

Mass Media Traditional Media

(Conventional) (Non Conventional)
T.V /Cable network Puppet Shows
Satellite Channels
Folk Theatre/Opera
Radio
Demonstration
Print
Cinema/ Theatre Haats and Mela
Wall painting
Word of Mouth
Post card and posters
Video on Wheels
Booklets/Calendar
Advantages Advantages
>Excellent Reach >High involvement
Less expensive ,wider coverage High Interest
Disadvantages Localized administered at low cost
At times unnecessary coverage Disadvantages
No customized messages Coverage
Companies using this medium Repeat /Re enforcement
Levers, Onida, Videocon Skill of performer
Mahindra Tractors, Eveready Companies using this medium
Bajaj, Levers, HUL, ITC000