Professional Documents
Culture Documents
Session III - Rural Marketing
Session III - Rural Marketing
Product
y Anything that has a value in exchange y Product price place promotion y Challenges Availability, affordability, acceptability
& awareness
Marketing Tools Product Price Place Promotion Marketing Challenge Acceptability Affordability Availability Awareness
Contd
performance relationship Simplicity is key Sense & Simplicity Phillips Global Campaign Urban market successes could be rural market failures Appropriate new product development processes
Product Levels
CORE BENEFIT
BASIC PRODUCT
EXPECTED PRODUCT
Contd
Product Level Core Benefit Basic Product Expected Product Characteristics Fundamental benefit/ services Benefit/service into tangibles Attributes & conditions buyers normally expect Exceeding customer expectations Encompassing all augmentations & transformations Example Entertainment Television Set Digital sound, flat screen Battery Operated TV Jolly Startek TV Rural Vs Urban Same Same Appearance of differences in expectations Pleasant surprise for rural customer Uniquely rural value proposition
Marketing Activities
for new product ideas
Select the most promising ideas and drop those with only limited potential. Study the needs and wants of potential buyers, the environment and competition. Describe or
Concept Testing
show product concepts and their benefits to potential customers and determine their responses. Identify and drop poor product concepts. Gather useful information from product development and its marketing personnel. products potential profitability and suitability for the market-place. Examine the companys research, development, and production capabilities. Ascertain the requirements and availability of funds for development and commercialisation. Project ROI.
Business Analysis
Assess the
Product Development
technical and economic feasibility to produce the product. Convert the product idea into a prototype. Develop and test various marketing mix elements.
Conduct
Determine
Test Marketing
market testing. Determine target customers Reactions. Measure its sales performance. Identify Weaknesses in product or marketing mix.
Commercialisation
Make necessary cash outlay for production facilities. Produce and market the product in the target market and effectively communicate its benefits.
Consumption Ranking
Rank Rural Product Urban Product Rural HH Consumption grams / month 268 950 268 302 893
1 2 3 4 5
Source: A.C Nielsen Retail Audit, MAT, July -2004 & ORG- MARG Retail Consumer Panel, 2001
urban
y Colour TVs 48/1000 HH in rural Vs 304/1000HH in urban
Packaging
y Associated with affordability - Convenience -
aesthetics
y Example: Chik Sampoo
Package Development
Contd
Pricing
Issues in Pricing
y Internal & external factors y Selecting pricing methods y Pricing adaptations y Low price points Simple packaging utility around
Bharat y Free gifts may sometimes not work in rural areas y Special event pricing- Hero Honda Rs. 500 campaign
Colgate- Cibaca
Levels of Distribution
Level Partner Company Depot/ C & FA Distributor/ Van Operator/ Super Stockist/ Rural Distributor Sub Distributor/ retail Stockist/ sub stockist/star seller Wholesaler Retailer Location National/ State level District level
1 2
4 5
Amrutanjan y Use of marketing co-operatives, Example: Warna Bazaar in Rural Areas y Mobile traders, Example: FMCG companies
Non- Conventional Haat and Mela Folk Media( puppet and magic show) Video Van Mandi
Press Cinema
Types of Promotions
y Advertising y Sales promotions coupons, contests, demonstrations
Contd
y Push strategy sales force and trade promotion y Pull strategy advertising and consumer
promotion
Close of Session
Thank You