Product strategy in Rural Markets

Individual Product Decisions

• Quality
Capacity
Reliability
Efficiency
Economy
Durability
• Features
• Design and style
• Packaging
• Branding
 Strategy guidelines
• Should be focussed on tailoring goods to meet the
needs of the rural consumers
• Delivering value
An affordable price
A convenient purchase
• Product line and product mix decisions
One or two products, limited SKUs
Versus
Extensive product lines with limited SKUs
• Product Life Cycle decisions
 Branding
• Increased awareness and affordability
• Low literacy levels
Generic Brand Names
Reliance on colours, numbers, visuals
• Competition from regional as well as national brands
Catering to a specific region
Catering to specific districts
• Fake brands and products
Fake Products and Brands
 Brand Loyalty vs stickiness
• Tendency to stick to one brand
Lesser information processing
Risk reduction
First mover advantage works positively
• However media exposure has led to variety seeking
Loyalty is low in categories with little or no differentiation
and brand building activities
• Product customization (mainly regional brands) can
help in such cases
 Packaging Strategies
• Colour schema in line with the community beliefs
• The size should be in line with the basic needs and
requirements
Small pack sizes:
Affordability
Easy display
Individual use products
 Agricultural Products
• Little differentiation
• May be highly technical
Emphasis on the points of differentiation
• The importance of learning by doing and seeing is
believing (live demonstrations)
• Trialability may be important
• Large dependence on retailers
• Bundling in case of durables like tractors