Professional Documents
Culture Documents
Reg. No.
, .rurio,rs culrural factors that influr:,rce consumer behavior in rural India with the
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help of an example.
12. Describe the stages in the buyer decision prDcess a rural consumer may go through whrln
buying a motorcycle.
13. Discuss the bases for seg.menting rural consuflner markets for refrigerators'
that
14. Discuss the problems of-f'ake products in rrral markets. What zrre the different strategies
a rural marketer should adopt to overcome this problem ?
15. Discuss IIULs project Shakti in detail'
P.T.O.
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SECTION _ D
16. Case study: Compulsory: .t0
Philips a leading brand in the light bulbs segm€nt in India ryas facing stiffcompetition fr6m
regional players in small towns and villages in lndia in the early 2000s. Consumers in ru::al
markets purchased light bulbs'by wattage irastead of brand name, which resulted in low
brand association and negligible brand
foyalqy. Philips was rapidly losing its market share to
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local players. In addition to luring consumers rvith low prices,the local pluyr,r, were offeri.ng
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i attractive margins to retailers who play a critical role irpushing producis in.rural markets. In
this case, retailers pushed llocal brands by offering personal guarantees and assuring replaceme:nt
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to customers. Hence the rnarket share of Philips, an established brand, was declining steadily.
This forced Philips to relook at its marketing sitrategies for its rural markets. l
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To regain the lost market share Philips launched a new marketing campaigr in the rural markets
of Gujarat, Madhya Pradesh and Uttar Pradesih for a period of one - and - a half years, 'fo
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li promote brand recall, vaRs were used to carry ouf the campaign in small towns for consumer
and retailer contacts. Consumer contacts were made in marketplaces and residential areas and
engaged through interactive games and lucky draws. Innovative POPs such as tong-lasting
inflated bulb shaped balloons at retail points, retailer get-togethers and one-to-one contaLct
with regular follow ups were used for retail activation. Apart from traditional retailers, non-
electrical shops were also included in the carnpaign as new selling points. The Campaign
achieved phenomenal success and resulted in an annual sales growth of 120 per cent.
Questions :
1) Discuss the prbblems faced by Philips in the rural markets. 5
2) Why do you think that the new marketing campaign launched by Philips achieved
phenomenal success ? s