Professional Documents
Culture Documents
Frugal innovation:
designing the product which are exclusively ment for rural market.
2. Illiteracy:
limitation of rural marketing is : The present data available on rural demographics, there
consumption behavior, there preferences and perceptions are very less. This inhibits rational
sales planning
Literacy rate as per 2011 censesus 68.52%.
Female literacy rate as per rural India is 58.75%(2011 census).
Prominent that Rural Indian Girls don’t have education is domestic help and looking after the
children
3. PERSONAL CHANNEL
3 important personal communication channel
a. Advocate channel/ Push strategy
Where individual tries to push the sales
b. Expert channel/ Pull strategy
c. Social channel- Uses personal strategy
Selling focuses on Push strategy to increase sales.
marketing strategy
Consumer Durables:
White goods
Brown goods
5. Designing an effective message for rural marketing(5 sub problems)
1. What to say Message content
2. How to say it logically Message Structure.
3. How to say symbolically—>Message format structure
4. In what context to say –> Message Context Association
5. Who should say it Message Source.
AICDA Model:
Deciding communication objectives in Rural market:
A Awareness
I Interest
C Conviction
D Desire.
A Action
A Awareness
Create Awareness of your commodity should be immediately told to
During Mela (Fair) Shande is often conducted in rural areas
Individual interactions
Conviction: To give information in their vernacular language.
STEPS TO CONDUCT AICDA MODEL:
Message Effectiveness in Rural Market
1) Language
2) Pictorial Representations
a. Personal communication channel
b. Non-Personal communication channel
3) Form of Message
a. Narrative Approach
b. Utilitarian Approach
4) Source of the Message
a. Advocate channel/ Push Strategy
b. Expert channel/ Pull Strategy
c. Social channel
i. Trust Worthy Source
ii. Likable Source
iii. Expert Source
5) Message context
There are several factors which determines the effectiveness of a message following factors
must be considered for effectiveness
1. Language
The language that is used who will demonstrating ( Accredited social health activists).
Primarily to improve social health they follow feet on feet model in rural area who
Noatis Company started given training program to Those who have basic education, did
this under CSR activity.
ASHA, Colgate Plam olive Project Disha
2. Pictorial Representations
a. Personal communication channel
b. Non-Personal communication channel
Distribution increased, direct interaction pictorial representation using pictures to
enhance the
3. Form of Message
The form of message: there are two formats through which message can be portrayed
a. Narrative Approach
Explain the virtues of commodity in detail.
b. Utilitarian Approach
You don’t convey the detail approach, We talk about the uitility of the commodity
4. Source of the Message
a. Advocate channel/ Push Strategy
b. Expert channel/ Pull Strategy
c. Social channel
i. Trust Worthy Source
ii. Likable Source
iii. Expert Source
5. Message context
Context association: Is important where the you speak and how you talk to them.
Context is important to
Create havoc turmoil
Non personal communication channels pass messeges without personal contact or interaction
it includes advertisement in mass media or organizing events, digital media etc, display media
Non personal media they are called as paid promotional channels, however the reach of this non
personal communication channel is only 30% in rural India because rural areas are called as
media dark environment,
Customer satisfaction level for consumers there are the problem with mass media advertidement
is that they don,t reach to villages
2) Folk media,
FRUGAL INNOVATION:
It is also called DISRUPTIVE INNOVATION.
SACHET REVOLUTION
1) Low Unit Packets (LUP)
2) Coin Age Pricing (CAP)
Sachet revolution took place in our country (LUP- low unit packets) compromising not on
quality but on quantity.
Coin age pricing : Value of commodity is terms of coins.
DISTRIBUTION CHANNELS:
1) Hub & Spoke Model ( Satellite Distribution Network)
2) Syndicated Distribution
3) Strategic Alliances
e-choupal
Syndicated :
Big multinational companies like cocccola;a have their own distribution channel or they can
resort to acquisition
Ccocacola in the year 1994 has acquired the soft drinks units of parle thumbs up and limca for a
price tag of 550 crores.
But small companies cannot afford to buy another company nor they can establish their
distribution network therefore syndicated distribution offers solution to in this syndicated
distribution small companies tie up and enter into collaboration with a leading company that
already has presence in rural market after such collaboration the small company uses
distribution network of large companies the golden rule of such syndicated distribution is, small
companies should not deal with the same product as that of large companies
E.g.; Cavin kare the manufacturer of chick shampoo entered into collaboration with
Amruthanjan balm similarly, P&G tractor and gamble entered into contract with Marico
to sell ariel and tide detergents
Strategic alliance:
Two competing companies joining hands to
E- chopal:
ITC
e-choupal
Wheat choupal(Haryana
Karnataka(coffee coupa)
Anadra Pradesh(shrimp) aqua choupal
Madhya Pradesh and UP(soya cuopal)
Regulated Market:
Most of the advertisement are either made of Hindi or English, but in India more than two
hundred vernaculars are spoken and about 98 languages are used in print media, this limits the
reach of advertisements.
Local resistance:
8. POVERTY:
NSSO:Nationall Sample survey organization: Committee under Suresh D tendulkar In 2010 in
order to estimate poverty of our country MPCE: Monthly per capita consumption expenditure: A
person living in village who cannot spend 816 per month is poor
25.7% is living below poverty line.
Colgate Palmolive
Project Disha:
Distribution increase through systematized haat activity,
Where the young peers can intern and conduct games for the villagers, after learning the skill
they could open Customer service centers.
Colgate: Provided these young people,for doing small
ACCCORDING to 2019 report there are 19000 villages without electricity. Especially from,
Self help groups(SHG) formed for financial needs for the basic needs of the
R1:((risk found)comprises of consumers who will be land lords or zamindars having political
back up or connection, and their consumption and attitude resembles the urban consumers.
These people will be educated, will be having one or the other connection in government offices
and get jobs done because of their their influence there children will be send to near by towns or
cities for education purpose and they possess all basic amenities, comforts and luxuries such as
furniture’s, cars, and will have additional sources of income, these people are technology
adopters and use modern method of farming
R2: (Risk avertors) this categories consists of rich farmers possessing 5 to 10 acres of land, they
themselves to be educated but they their children to be educated, these people will have good
number and relatives settled in cities and will consult them before making any purchase
decisions.
R3: This category comprises of families possessing less then 5 acres of land, they normally have
their own or live in a rented house they survive hand mouth sustenance they don’t possess big
assets or jwellery but live a dignified life they might nor enjoy social status, but lead a socially
conscious life , might not be well educated, but have done basic education and will also possess
basic durables considered to be necessity. This segment compromises people who work as
agricultural laborers, who live in small house whether owned or rented , which is either tiled or
R4: They survive because of cash or kind and depends on public distribution system they live in
below poverty line and generally attached to one or the other land lords house.
MARKETING MIX:
1) PRODUCT
2) PRICE
3) PLACE
4) PROMOTION
promotion Awareness:
Installed free water purifier at mela, and provided free drinking
water.
USP Unique selling proposition.
1.Conventional communication channels.
2.Non conventional communication channels.(Wall painting, Folk
media).
3.
Four divisions:
1]FMCG:
Buying frequency is higher, buying decision is quick and substitutes availability is higher.
Important features:
1}ACCCORDING to a study paper of te associate chambers of commerce and industry of India”
[Assso cham], the FMCG market in India is currently estimated at 5 lakhs crores per annum, per
year, most FMCG companies upbeat about there prospects in rural India as it is contributing a
substantial portion od there revenue, rural market is growing at the rate of 40% per annum,
where as Urban Market is growing at the rate of 25% per annum, the rising income levels healty
agricultural growth, employment throught the year, raising consumerism, Increase literacy rate
Inclination to better quality of Life are responsible for this higher growth, In 2019-18, India’s
Retail market was estimated to be 280 billlion Dollars out of which 112 billion dollars worth of
sales was achieved from rural areas and this trend is xpected to double in another 5 years time,
out of$280 billion revenue 112$ comes from rural market, alone.
If you not taking a risk now, that is the biggest risk you are taking.
According to a marketing research company, “Nielson” FMCG will hit 150US $ by 2025,
Moreover the governments efforts will improve the efficiency of welfare programmers with cash
transfer will further boost rural consumption, therefore a thorough study of rural market, right
market segmentation, and selecting an appropriate segment is needed mere presence is no longer
sufficient in rural market and one requires transformational strategies and deeper market
knowledge as competition intensifies in the rural market quick action is needed as early the
entrants will have an advantage of learning from their own mistakes and since the competition
will be very low initially the company need not to bother about counter moves, or counter
marketing strategies.
2]Consumer durables:
Consumer durables: Purchase is less, shelf life is higher.
Eg for durables:
Consumer or customer: On basis of consumer capacity and standard of living, rural consumers
into four parts:
1} Village elites: Risk takers, opinion leaders, ready to try new products.
2} Young enthusiast: who fall under the age of 18-28.
3} Study climbers: Those who scale up their economic living,
4} Traditionalists: Extreme conservativism.
Pre requisites of market segments:
MADS
M- measurable: Idea of dividing the category.
A –Accesable: It should be easily reachable.
D-diffrentiable: Worth of being able to differentiate the product.
S-Substantial: Whenever you manufacture a product, it must be manufactured for few
customers, it is a niche marketing.
3}Agri goods:
Agricultural inputs:
Sowing seeds, Fertilizer, pesticides, threshers, harvesters, warehouses, kisan credit cards.
Agricultural outputs:
Grains, vegetables, orchards, fodder for animals.
3}Services:
Indian economy is emrging to be third wave economy.
Service sectors is providing 45-50% to the economy.
Market segmentation:
Mass marketing represents absence of segmentation of same value proposition will be offered to
potential consumer without any discrimination, no option of substitute.
Market Segmentation
Niche marketing: Concentrate o particular group of people
Local: Manufacture the product, and focus on selling the commodity to local
Micro/Individual: Targeting the sepecilasation based on individual ciretia
Only when products passes these four stages successfully only then, the product is launched.
The product is not
UPI government in the year 1997 set up a committee with RV Gupta: who gave it’s
recommendations of Kisan credit cards for loan facility, Credit card limit was 10,000 rs.
Thomson Ruiters:
Pricing:
Contrary to urban market the product mix in rural market will be simple and mostly only one
product of a particular company registers it’s availability on rural shelves dominance of the rural
retailer slow movement and replenishment of stock are responsible for the smaller range of
products available at retail shops.
ITC manufactures:
1. Food: sunfeast(yippe, biscut, Ashirvad
2. Tobacco: Gold flakes, kings
3. Hotel: ITC windsoner
4. Education: Paper mate, classmates
Rural packaging:
Pcakging serves two purposes, it helps in protecting the products
It adds to the aesthetics and sales appeal of the product, packaging for the rural product needs to
be special because of poor transportation system.
Difficulties of safe storage: There won’t be any cold storage in rural area.
Poor facilities
Therefore, the product for rural market should be
1. Having longer shelf life, the product for urban market.
2. Be able to withstand extreme whether conditions
3. Be able to with stand sudden and jerky movements on the dusty roads
4. Should have alternative storage arrangements.
Hence a marketer needs to consider the following factors in packaging
1) Packaging material: Most of the products will be packed using plastic because it is light
weight, water proof and provides an effective barrier to vapors.
2) Packet size and convince .
Convenience
Packaging Aethestics: due to lower literacy rate one has has to excersise proper care in
packaging conditions, pictorial representations and images connected to the product must be
used
Price is the value for a particular product, design a product in such manner that the commodity is
affordable.
In this several products or offerings are bundled and are sold at reduced price, it is
an effective marketing strategy during inflation, to attract consumer and to generate sales, this
technique is extensively used during festival and marriage seasons, during which various goods
are bundled, and sold together.
Operation Bharath(1999), one of those pioneers that had products which are ment for hair care,
skin care, dental care, body care.
Penetration pricing:
In which initially low price will be charged, when entering into a new market, or by launching a
new product.
New customers:
Economy pricing: This is a no frill, low price in this the manufacturing and marketing and
manufacturing costs will be kept at bear minimum and normally followed by regional or local
manufacturers, as they have limited investments to make on building brands or develop their
marketing channels.
Economy packs
Value pricing: this approach will be used when external factors such as economic recession or
increased competition forces a company to provide value products and services to introduce and
retain sales.
Coinage pricing:
Psychological pricing:
Pricing such as 99,599,499, In this prices such as 99,199,399 are fixed for the product which
depicts that the product is in the price range of 90 rather than 100, and so on.
The consumer always tend to equate product quality with price charged,
To capture the consumer razor with blade: razor is @ less price and blade is generally priced
@higher price:
Captive pricing policy: this involves setting up price for a product which must be used aling with
the main product, this is also known as two part pricing.
In this commodities which are used together are sold @ considerably lower price and later when
customer wants by add on, it will be sold @ higher price, captive pricing policy.
1. Thomson rural market Index: In 1972, Hindustan Thomson associates Ltd. Developed an
Index to segment the rural market district wise HTA identified 26 variables covering
occupation, agriculture, electricity, electrification, banking facilities, demographics etc,
each variable was assigned a weight and an Index was calculated 383 districts out of 412
districts were used to collect information.
2. The Index is comsidered to be in overall indicator of rural market potential as it has, a
correlation with 10 selected agriculture related variables, such as
a)Agriclutural laborers total cropped area, total irrigated area, area under non food crops,
pump sets,fertilizer usage, tractors availability, rural credit and deposits, number of
villages electrified.
Based on the index number, the districts have been classified as ABCDE market.
HTA:
MICA: HPA , mica rural marketing ratings (MRMR) mica rural market reports: considered, 459
districts for the sake of market segmentation.
42 socio economic indicators were used to rank the districts. Some of the parameters used were,
demography, occupation, communication methods, educational status, shops and other
establishments, existence of banks and other financial institutions, major agricultural crops,
medical facilities etc..
Number of cultivators:
Total irrigated area:
Under ground water: Artificial intelligence,
Place:
Positioning: It is the act of designing, the companies offering and image to occupy a distinctive
place in the minds of target market.
H
igh price
Perceptual map: Different
Positioning errors:
Over positioning:
Under positioning: (yoga) Lack of intrest is called apathy:
Confuse positioning bear shampoo
Doubtful positioning(): parle G- Gfor genius:
Low price
Reverse Innovation:
MPLAD changed to SAGY : Sansand aadarsh government yojana: also known as SAANJI
Pricing strategy:
Product Promotion:
Important commodity, it is considered to be not complete and ensured that the awareness is
created, to create lot of communication strategies, and also trying to achieve sales:
Bundle pricing
Segmentation
Retail out lets
Beyond LPG:
Advertising : Hire someone to talk about the heterogeneity of the product, extremely.
The communication environment plays an Important role and influences the communication
process, sometimes the receiver may not receive the intended message:
Corporate social Responsibility spends time and puts effort to service rendered to NGO’s to
reduce it’s tax burden,
i.e. time and effort = price.
Here place for a tangible product is a distribution system including the warehpuse trucks, sales
force retail out lets
Intangible:
Temples are one of the places, the concept of pricing is fear by products such as threads, rigs
bracelets coconuts becomes a byproducts.
Promotion:
Promotion consists of all the integrated use of advertising, public relations, promotions, personal
sellin and entertainment vehicles. The focus is on creating and sustaining demand for the
product. Public service announcements or paid ads are one.
Promotion:
Marketing wheels:
Plan stratergy;