RURAL MARKETING STRATEGIES
RURAL MARKETING STRATEGIES
Product Price Promotion Physical
Marketing Mix
Is a crucial element of any marketing plan as it offers marketers a mix of product, services and prices, utilizes a promotion mix of advertising, sales promotion, direct marketing and personal selling to reach the target customers through distribution of channels
Tools and Challenges
The basic marketing mix tools 4Ps remains the same in both urban and rural markets, but the challenges of 4As varies
4Ps Tools 4As ChallengesProduct AcceptabilityPrice AffordabilityPlace AvailabilityPromotion Awareness
Contd… Availability : availability of products
Eg: FMCG Company HLL (Coca- Cola) has a strong distribution system, auto rickshaw, bullock carts. LG- company depot supplies, twice a week to distributors –has 45 area offices and 59 rural office
Affordability : with low disposable income , products need to be affordable. Eg: Godrej – Cinthol, Fairglow. Videocon’s washer without dryer launched specifically for the rural market, Cost Rs 3000/-
Contd… Acceptability : Gain acceptability for the product.
Need to offer products that suit the rural market. LG Electronics – Sampoorna sold 100,000 sets in the first year. Coca cola provides low cost ice boxes, that is a tin box for new outlets and a thermo Cole box for seasonal outlets.
Awareness : advertising media- television, movies, music. HLL relies on companies media Godrej for soap products
Product Strategies
PRODUCT STRATEGIES
a company plan for marketing its products
Product Strategies
•New Product Designs•Sturdy Products•Brand Name•Small Unit Packing•Low Priced Packing
Components of Product Personality
1. Core of the product
Basic constituent
associated features viz. Design, Quality, Size Color, Odors Performance Safety
2. Brand Name
3. The Package
5.Sales After Service 4. Warranty
1. The core of the Product: Mysore Sandal Soap – combination of luxury & tradition
2. Brand name: Name, Term, Symbol or Design or a combination of them which is intended to identify goods and services of seller and to differentiate with competitors.
Types of Brands
Types Examples 1. Nationality Branded Products Lifebuoy, Lux, Ponds, Nirma,
Colgate
2. Regional Branded Products Nanjangud Tooth Powder in Karnataka, Ponvandu in TN
3. Locally manufactured Rice, Oil, Food grains, Jaggery & Unbranded products
4. Imitation products Lite boy (Life buoy), Polons (Ponds) Narima (Nirma), Friends & Lovely (Fair & Lovely)
5. Store / Distributors brand SVC Coffee, Bakery products, Mothi Bread etc.
3. The Package:
General group of activities in the planning of a product. These activities concentrate on formulating a design of the package and producing an appropriate and attractive container or wrapper for a product.
4. Product Warranty:
An obligation of the producer and seller to stand behind the product and assure the buyer that he will derive certain services and satisfaction from the product.
An assurance of the Quality, Service and Performance.
5.Service after sales :
•For smooth maintenance and repairs at low charges as well as quick availability of spare parts and accessories at reasonable rates. •Important selling point helping the customer to take a quick decision to purchase costly durable goods.
Issues to be resolved in Product plan
Product line Product mix Packaging Labeling Branding Service after Sales
PRODUCT CONCEPTS & CLASSIFICATION
1.Based on tangibility : tangible , intangible
2.Based on purpose : consumption, production
3.Based on functional life : Consumables, Durables
4. Based on habits : Convenience goods Shopping goods, Specialty goods
PRODUCT CONCEPTS & CLASSIFICATION
5. Based on price &quality: Mass product, Premium product
6. Based on product development : Innovations, Imitations
7. Based on brand hierarchy level : Global Brand : Pepsi, CokeNational brand : Godrej, Tata Regional brand : Sun TV Channel Local brands: surya masale, Joy chips Unbranded products: oil, food grainsCommodities: Tamarind, cloves, fish
1 Based on tangibility. Tangible goods -- products Intangible goods --services
Characteristic Product Services
TangibilitySeparabilityVariabilityPerish ability
YesYesSometimes , customizedSome products
NoNoYesYes
Examples: Product : Soft drinks, office furniture, houses etc, Services : Repairs, construction services, legal services
2. Based on purpose of use
Purpose Type User Products
Consumption
Production
Consumer goods
Industrial/agricultural goods
Households
Industries /poultries
Toiletries, cosmetics, beverages, home appliances etc Raw materials, components, agricultural inputs & machinery, animal feeds etc
3. Based on functional life
Type Nature of use Functional life period
Examples
Consumables
Durables
Onetime
Lifetime
Short
Long
Food & beverages , soft drinks
Furniture, computers, cars, camera
4. Based on habits : a. convenienceb. shoppingc. specialty
Goods Product type
Buyer envt.
Buy frequency
Decision Buying place
a.
b.
c.
Consumable
Durables
Durables
Low
Moderate
High
Frequent
Occasion
Once inlife
Simple
Complex
Complex
Paan shop, cooperative stores, fairs, provision store
Fairs, haats, show rooms, chain storesShops in towns ,cities
Concept of Product strategy
Long range competitive plan involving decisions on products, product line and product mix to make proper utilization of resources and achieve marketing goals
Significance
Achieves product- market fit Encourages innovativeness Provides competitive edge Makes better use of resources
Scope Decisions at three levels
Level Strategy1. Product mix Width extension- new product line
Length extension – new product items Depth extension – new product variants
2. Product line Stretching – upward, downwardLine pruning –line modernization
3. Product item Quality, features, design, brand
Augmentations
Contd…2. Product lineLine pruning :
product lines lend to lengthen over time like rational grounds or emotional reasons. Both case dead wood will accumulate. It has to be taken out at periodical reviews.
Pruning may be done when
• It is identified that dead wood is depressing profits• It is found that the production capacity is limited and
cannot handle all the existing products
Contd… Line ModernizationWhen technological developments change the products
This is to be considered when
Timing: Conversion readiness from old to newCompetitors movesProfitability levels
Approach : when the change be total or a part
Contd…3. Product Item
Core product development (need product relationships) Tangible product development
Quality- durability, capacity, efficiency, economy, reliability Features – rational, problem solving, fancy, emotional
Design - arrangements of parts Style - appearance and function
Packaging Branding Augmented product development
Contd…
Packaging
Primary package : to hold the productSecondary package : to hold the primary package : cardboard boxShipping package : carry the products from one place to another
Contd… Three levels of appeal by packages
Level Purpose Characteristics DeterminantsSensory Attention Attractive
DistinctiveVisibility
Easy to identify(shapes, colors)
Emotional Interest desire
AdoptabilityCompatibilityCommunicability
Easy to carryEasy to useEasy to store (milk, tooth pastes, creams)
Rational Evaluation InformativeInteractivePreservativeEconomical
Easy to knowEasy to storeGood to reuseFair price (glass bottles )
Contd…
Branding Brand concept Branding policy: To brand or not to brand
SponsorshipNaming
Branding the need
Contd…Branding arguments for and againstFor : Identify helps processing Image gives competitive advantage Personality convinces consumers Equity enhances valueAgainst
Investment- returns doubtful Image and personality an emotional nonsense Brand equity- sensible but not new
Contd…
Brand sponsoring Manufacturer brand Distributor band
Brand identity Name what Each product to give brand name
individuals with company name: Ponda dream flower talc individuals without company name: Cinthol, Lifebuoy
Family brand name:Raymonds - Raymonds for textiles and Park avenue for shirts, shoes
Associated brand name Usha - fans, sewing machine Name how? Easy to use, understand, distinguish
Contd… Augmented Product : needs of consumersComponents of an offer
Product related Service related Channel
QualityDesign styleFeaturesPackagingBrand image
OrderingDeliver and creditInstallationCustomer trackingRepair & maintenance
ExpertisePerformanceCourtesyAtmosphere
Strategies for marketers Identity strategies
Commodity strategies vegetables, oil, steels Branding strategies brook bond’s red label tea, LG
Sampoorna Customer value strategies
Mass product strategies – Maharaja appliances Ltd, Rajdoot 223
Premium product strategies – Fair &Lovely, Surf Innovation strategies
Rural urban strategies - Bajar electricals, Appollo hospital servicing in rural
Special for rural – Nyle Shampoo, Titan watches
Strategies for marketers Quality strategies
Quality improvement strategies –TVS 50 48 cc to 49.9 cc Spurious goods strategies – Lifebuoy-Love boy
Packaging strategies – Affordability, usage, storability, small, combi packs
Brand strategies Brand extension strategies – New Cinthol Multi band strategy – HLL Soaps- Lifebuoy, Lux Co-branding strategy – IBM and Compaq buys Intel chip
and advertise as ‘Intel’ inside Brand image/ equity management – Onida, Lux
Class discussion
Critically examine the product strategy of the two regional washing soap brands, in comparison to one local brand, in rural markets
Use 4As for analysis
Identify the success and failures of brands in general.
Class discussion
Explain brand image strategies of any two companies operating in rural areas