4 A’s in Rural Marketing

NOKIA 1100

Acceptabilit
y
Availability 4 A’s Affordabilit
y
Awareness
By:
Ashish Poal – 72
Gazala Shaikh -
86
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 Marketing Mix Challenges
• Price Product - Acceptability
• Price – Affordability
• Place – Availability
• Promotion- Awareness

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 Availability
• First challenge- To ensure the availability of product
or services.
• 638000 villages spread over 3.3 million sq km ; 742
million Indians may live in rural areas but finding
them is not easy.
• Poor state of roads - a greater challenge to send
products to far flung villages on a regular basis.
• Solution strong distribution system.

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 Case.1- Coca – Cola
Strategy: “Coke is available where, even water is not
available”
• Uses hub and spoke model
• Lack of the electricity – Coca - Cola provided low-
cost ice boxes to the small distributors in rural areas

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 Case 2: HUL
Strategy: “HUL product can reach a place, where you can
not reach”
• HUL’s strong distribution system- using unconventional
transport like
Auto-rickshaws
Bullock carts
Tractors and Cycles
 Even boats in the backwaters of Kerala.

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 Suggestions:
• Start the production in rural areas.

• Tie’up with public distribution system (Fair Price

Shops).
• Develop rural shopping malls
• Use a combination of wholesalers and retailers to
penetrate every corner of rural market.

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 Acceptability
• Need to provide product that suit the rural market
 Case 1: Nokia 1100
Strategy: “digital convergence at the bottom of market

 Case 2 : LG sampoorna TV
Strategy: “thinking locally, succeeding globally”

 Case 3: HUL Breeze 2-in-1

Strategy: “value-added product would create a loyal
customer”

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  Case 4: HUL pure-it [a water purifier brand]
Strategy: “Corporate social responsibility means
come up with business models to cater to the
BOP”

 Case 5: TATA Nano

Strategy: “we needed to create a safer journey of
transporting a family”

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 Suggestions:
• Innovative product designs and packaging.
• Application of value engineering
• Using chinese product design strategy and raw
material.
• Be care full on product duplicates and using security
features.
• Understanding rural customer’s needs and
aspirations even better than customers themselves
• Meet the existing and latent needs

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 Affordability
• With low disposable incomes products need to
affordable to rural consumers.
• Most of them are daily wage earners.
• Some companies addressed the problem by
introducing small unit parks.

 Case.1: Nirma

Strategy: “value- for- money”

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  Case 2: Cavinkare’s Chik shampoo
Strategy: “low unit price packs.” (LUP)

• it became the market leader in the rural markets with over

50% market share. It create a ‘sachet revolution’.
 Case 3: P&G price cut strategy
Strategy: bring in the required ‘Economies of Scale’
which would lead to profitability.

• P&G in 2004 started price cut strategy in their detergent

brands

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  Case 4: Britannia Tiger biscuits

Strategy: “low price strategy is begun to appeal

target segment”
 
 Case 5: Nestlé’s Maggi
Strategy: “small pack - lower price”

 Case 6: Marico parachute

Strategy: “consumers to trail out the products with
very little risk”

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 Suggestions:
• Use backward and forward integration
• Using value-based pricing strategy
• Effective total quality management
• focus on creative solutions and product engineering
to reduce their cost.
• the company can design basic models minus frills to
save cost.

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 Awareness
• Large parts inaccessible to conventional media. Only
41 percent got access.
• Outing confined to local fairs and festivals
• Television viewing to state owned channel-
Doordarshan.
• Brand must associate with their culture and
personality

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  Case 1: Idea cellular
Strategy: spreading a social message “each one has
aimed at the changing someone’s life for better”

 Case 2: Coca-cola
Strategy: “Using a renowned celebrity from in rural
background”

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  Case 3: Godrej
Strategy: “low-cost marketing technique to gain
maximum result”
 Case 4: HUL Lifebuoy
Strategy: “lifebuoy has always been positioned on
the platform of health and hygiene”

• ‘Lifebuoy Swasthya Chetana’ campaign, made sales goes up

by 20% in 17,000 villages

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 Suggestions:
• Provide social outlet campaigns
• creates a ‘trust factors’
• Be care full on retail margins
• Face-to-face marketing
• capture the local sprit
• World-of-mouth communication strategy works
better in rural markets

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 Thank You

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