Professional Documents
Culture Documents
Rural MKTG Strategy 1
Rural MKTG Strategy 1
New Entrant
Company starts Rural Market first &
then ventures in Urban Market
(eg Cavin Kare Chik & Meera
ENTERINING Shampoo)
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
---------------------------------------------------------------------------------
E Rural Product
X
E Rural Pricing
2 C
Rural Distribution
U
T
I Rural Sales Force Management
O
N Rural Communication
---------------------------------------------------------------------------------
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
RURAL PRICE
RURAL DISTRIBUTION
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
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
Transportation
Warehousing Communication
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
Hardworking
Have Empathy
Common to both
Urban & Rural Sales person
Enthusiastic
Perseverance
Knowledge
Attitude
Skills
They are a major link to the chain and establish the link
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
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