Rural Marketing Mix

Marketing Mix ‘refers’ to the set of actions,

tactics, tools or variables that a company uses to
promote and sells its brand or product in a
markets
 4 Ps of Rural Marketing

Every Product and promotion, which is a hit in cities , might not

work in rural areas

Product Price

Promotion
Place
• Product :Product’ refers to anything that is capable of or
can be offered to satisfy need or want?

• Price :Price refers to the amount the customers has to

pay in order to acquire a product or services
3C’s of Pricing
Customer Value
Competitors Prices
Cost of COmpany
 • Place : refers to point of sale.

• Promotion: This refers to all the activities

undertaken to make the product or service
known to and preferred amongst the user
and trade.
 Product
Product for rural market must be built or
modified to suit the lifestyle and needs of the
rural consumers .
Product Strategies
1. New/Modified Product.
2. Utility Oriented Product
3. Avoiding Sophisticated Packaging
4. Application of value Engineering.
5. Small unit packaging
 Price
• The villagers due to their limited resources
are very price sensitive by nature.
Pricing Strategies
• Large Volume –low merging
• Overall Efficiency And passing on benefits
to consumers.
• low cost/ value for money product
• Low volume-low price.
• Godrej recently introduced three brands of Cinthol, Fair Glow
and Godrej in 50-gm packs, priced at Rs 4-5 meant specifically
for Madhya Pradesh, Bihar and Uttar Pradesh — the so-called
`Bimaru' States.

•
Hindustan Lever, among the first MNCs to realise the potential of
India's rural market, has launched a variant of its largest selling
soap brand, Lifebuoy at Rs 2 for 50 gm

• Coca-Cola has also introduced Sunfill, a powdered soft-drink

concentrate. The instant and ready-to-mix Sunfill is available in a
single-serve sachet of 25 gm priced at Rs 2 and mutiserve sachet
of 200 gm priced at Rs 15.
 Place
( A village as a pace for promotion, distribution, and consumption is
very different from town or city)

Place Strategy
• Segmentation
• Coverage of villages with 2,000 and above
population
• Distribution up to feeder markets/ Mandi
towns.
• Direct Contact with rural Retail
• To service remote village, stockists use autorickshaws,
bullock-carts and even boats in the backwaters of Kerala.
Coca-Cola, which considers rural India as a future growth
driver, has evolved a hub and spoke distribution model to
reach the villages
• LG Electronics defines all cities and towns other than the
seven metros cities as rural and semi-urban market. To tap
these unexplored country markets, LG has set up 45 area
offices and 59 rural/remote area offices.
 Promotion
• Promotion aspect always creates a challenge in rural markets
because of the fact that village have thin population density and
are widely spread over large remote areas.
• NCAER conducted survey to study the socio economic effects of
advertising ; the India Society of Advertisers sponsored this
survey. It covered 3,836 household in 50 towns and 50 rural
district in 10 states. It showed a clean rural –urban divide, 16%
of rural and 25% of urban customers felt that advertising
influenced them to frequently or always buy products they do not
really need.
 Media Vehicles
• Television
• Radio
• Print media
• Cinema
• Hoarding/Wall Painting
•
Examples of rural marketing mix
• ICICI BANK customized their rural ATMs, so
they can operate biometric authentication. ICICI
rural ATMS are battery operated so that power
failure is not issue.
• BP energy Sell smoke less, biomass run stoves
(Oorja) for rural markets, priced attractively
Rs.675.
• Bank of India introduced Bhumiheen credit
cards for providing credit card facilities to
landless farmers.
Examples of rural marketing mix
• Noika develop affordable Mobile phones for rural
markets with unique features such as local
language capabilities, present time/ call limits
etc.
• Philip develop a TV ‘ Vardaan’ for rural markets.
This TV work on the voltage 90-270 volts.
• Philips developed ‘ Free Power radio’ this radio
do not require power and battery also. it run on
simple winding of level provided in the set. The
price of this attractive set is Rs. 995.
Examples of rural marketing mix
• LG developed CTV called’ CinePlus’ was
launched in rural markets price Rs.5000
Hyundai increases focus on Rural India
new promotional scheme titled - ‘Ghar Ghar Ki Pehchaan'. In this
first of its kind initiative, Hyundai Motor would extend special
schemes for government employees in rural areas and members of
Gram Panchayats on the purchase of the Hyundai Santro
Launched on May 1, the ‘Ghar Ghar Ki Pehchaan' scheme will
continue till July 31, 2008. Through this special rural scheme
Hyundai Motor India plans to touch base with at least 58 per cent of
Indian villages with a population of 500 or more.
Additional Ps of Rural Marketing
Passion
• Passion to earn Goodwill for the company.
• Passion to serve and educate the
consumer
• Passion to give 100% to the rural
marketing effort
Pace
 4 As of Rural Marketing Mix
• Affordability
• Availability
• Awareness
• Acceptability