Rural Marketing Mix

Rural Marketing Mix

Marketing Mix ‘refers’ to the set

of actions, tactics, tools or
variables that a company uses to
promote and sells its brand or
product in a markets
4 Ps of Rural Marketing
Product :Product’ refers to anything
that is capable of or can be offered to
satisfy need or want?
Price :Price refers to the amount the
customers has to pay in order to
acquire a product or services .
3C’s of Pricing :-
Customer Value
Competitors Prices
Cost of Company
Place : refers to point of sale.

Promotion: This refers to all the

activities undertaken to make the
product or service known to and
preferred amongst the user and
trade.
 Product
Product for rural market must be
built or modified to suit the lifestyle
and needs of the rural consumers .
Product Strategies
1.New/Modified Product.
2.Utility Oriented Product
3.Avoiding Sophisticated Packaging
4.Application of value Engineering.
5.Small unit packaging
 Price
The villagers due to their limited
resources are very price sensitive
by nature.
Pricing Strategies
Large Volume –low merging
Overall Efficiency And passing on
benefits to consumers.
low cost/ value for money product
Low volume-low price.
Godrej recently introduced three brands of
Cinthol, Fair Glow and Godrej in 50-gm packs,
priced at Rs 4-5 meant specifically for Madhya
Pradesh, Bihar and Uttar Pradesh — the so-
called `Bimaru' States.

Hindustan Lever, among the first MNCs to

realise the potential of India's rural market, has
launched a variant of its largest selling soap
brand, Lifebuoy at Rs 2 for 50 gm

Coca-Cola has also introduced Sunfill, a

powdered soft-drink concentrate. The instant
and ready-to-mix Sunfill is available in a single-
serve sachet of 25 gm priced at Rs 2 and
mutiserve sachet of 200 gm priced at Rs 15.
 Place
( A village as a pace for promotion,
distribution, and consumption is very
different from town or city)
Place Strategy
Segmentation
Coverage of villages with 2,000 and
above population
Distribution up to feeder markets/
Mandi towns.
Direct Contact with rural Retail
To service remote village, stockists use
autorickshaws, bullock-carts and even
boats in the backwaters of Kerala. Coca-
Cola, which considers rural India as a
future growth driver, has evolved a hub
and spoke distribution model to reach
the villages

LG Electronics defines all cities and

towns other than the seven metros cities
as rural and semi-urban market. To tap
these unexplored country markets, LG
has set up 45 area offices and 59
rural/remote area offices.
 Promotion
Promotion aspect always creates a challenge in rural
markets because of the fact that village have thin
population density and are widely spread over large
remote areas.

NCAER conducted survey to study the socio

economic effects of advertising ; the India Society
of Advertisers sponsored this survey. It covered
3,836 household in 50 towns and 50 rural district in
10 states. It showed a clean rural –urban divide,
16% or rural and 25% of urban customers felt that
advertising influenced them to frequently or always
buy products they do not really need.
 Media Vehicles
Television
Radio
Print
media
Cinema
Hoarding/Wall Painting
Examples of rural marketing mix
<ul><li>ICICI BANK customized their rural
ATMs, so they can operate biometric
authentication. ICICI rural ATMS are battery
operated so that power failure is not issue.
</li></ul><ul><li>BP energy Sell smoke
less, biomass run stoves
</li></ul><ul><li>(Oorja) for rural
markets, priced attractively Rs.675.
Bank of India introduced Bhumiheen credit
cards for providing credit card facilities to
landless farmers.
Examples of rural marketing mix
<ul><li>Noika develop affordable Mobile
phones for rural markets with unique features
such as local language capabilities, present
time/ call limits etc. </li></ul><ul><li>Philip
develop a TV ‘ Vardaan’ for rural markets. This
TV work on the voltage 90-270 volts.
</li></ul><ul><li>Philips developed ‘ Free
Power radio’ this radio do not require power
and battery also. it run on simple winding of
level provided in the set. The price of this
attractive set is Rs. 995
Examples of rural marketing mix <ul><li>LG
developed CTV called’ CinePlus’ was launched in rural
markets price Rs.5000 </li></ul><ul><li>Hyundai
increases focus on Rural India </li></ul><ul><li>new
promotional scheme titled - ‘Ghar Ghar Ki Pehchaan'.
In this first of its kind initiative, Hyundai Motor would
extend special schemes for government employees in
rural areas and members of Gram Panchayats on the
purchase of the Hyundai Santro
</li></ul><ul><li>Launched on May 1, the ‘Ghar
Ghar Ki Pehchaan' scheme will continue till July 31,
2008. Through this special rural scheme Hyundai
Motor India plans to touch base with at least 58 per
cent of Indian villages with a population of 500 or
more.
AdditionalPs of Rural Marketing
<ul><li>Passion
</li></ul><ul><li>Passion to
earn Goodwill for the company.
</li></ul><ul><li>Passion to
serve and educate the consumer
</li></ul><ul><li>Passion to
give 100% to the rural marketing
effort
4As of Rural Marketing Mix
<ul><li>Affordability
</li></ul><ul><li>Availability
</li></ul><ul><li>Awareness
</li></ul><ul><li>Acceptability
</li></ul>