4 ps- rural marketing

8/13/2019 4 Ps- Rural Marketing

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4Ps in Rural Markets


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Product

Anything that has a value in exchange

Product price place promotion

Challenges Availability, affordability, acceptability

& awareness

Marketing Tools Marketing Challenge

Product Acceptability

Price Affordability

Place Availability

Promotion Awareness

Source: The Rural Marketing Book- Kashyap. P & Raut. S


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Contd


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Appropriate Product Strategies

Existing & New Products

Product features service quality price &performance relationship

Simplicity is key Sense & Simplicity Phillips Global Campaign

Urban market successes could be rural marketfailures

Appropriate new product development processes


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CORE BENEFIT

BASIC PRODUCT

EXPECTED PRODUCT

AUGMENTED PRODUCT

POTENTIAL PRODUCT

Product Levels


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Contd

Product Level Characteristics Example Rural Vs Urban

Core Benefit Fundamentalbenefit/ services

Entertainment Same

Basic Product Benefit/serviceinto tangibles

Television Set Same

Expected Product Attributes &conditions buyersnormally expect

Digital sound, flatscreen

Appearance ofdifferences inexpectations

AugmentedProduct

Exceedingcustomer

expectations

Battery OperatedTV

Pleasant surprisefor rural customer

Potential Product Encompassing allaugmentations &transformations

Jolly Startek TV Uniquely ruralvalue proposition


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Product Development Stages

Stage Marketing Activities

Idea Generation Searching for new product ideas

Idea Screening Select the most promising ideas and drop those with only limited potential. Study theneeds and wants of potential buyers, the environment and competition.

Concept Testing Describe or show product concepts and their benefits to potential customers anddetermine their responses. Identify and drop poor product concepts. Gather usefulinformation from product development and its marketing personnel.

Business Analysis Assess the products potential profitability and suitability for the market-place. Examinethe companys research, development, and production capabilities. Ascertain therequirements and availability of funds for development and commercialisation. ProjectROI.

Product Development Determine technical and economic feasibility to produce the product. Convert the productidea into a prototype. Develop and test various marketing mix elements.

Test Marketing Conduct market testing. Determine target customers Reactions. Measure its salesperformance. Identify Weaknesses in product or marketing mix.

Commercialisation Make necessary cash outlay for production facilities. Produce and market the product inthe target market and effectively communicate its benefits.


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Consumption Ranking

Rank Rural Product Urban Product Rural HHConsumption

grams / month

1 Toilet Soap Toilet Soap 268

2 Washing Powder Biscuits 950

3 Packaged Tea Washing Powder 268

4 Biscuits Packaged Tea 302

5 Detergent Cake Detergent Cake 893

Source: A.C Nielsen Retail Audit, MAT, July -2004 & ORG- MARG RetailConsumer Panel, 2001


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Rural Durable Usage Trends

NCAER has classified durables into three categories

Group One( 6000)

In group one the growth is as high as 75 percent

Electrical goods show the highest urban- rural disparity, why ?

Television( B & W) 195/1000HH in rural Vs 490/1000HH inurban

Colour TVs 48/1000 HH in rural Vs 304/1000HH in urban


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Packaging

Associated with affordability - Convenience -

Consumer recognition & product protection

Packaging material, size, convenience and

aesthetics

Example: Chik Sampoo


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Corporate Responses to Fakes

Look-alikes- Spell-alikes & Duplicates

Prices range from MRP to 60 % of MRP

Margins range from 60 % to 300 %

Legal action awareness programmes New

Package Development


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Fakes: Some Examples


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Contd


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Issues in Pricing

Internal & external factors

Selecting pricing methods

Pricing adaptations

Low price points Simple packaging utility aroundpackaging material

Highlighting value


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Price Adaptations ( Indicative)

Product sharing services, Example: Tractors

Product Bundle pricing, Example: HUL OperationBharat

Free gifts may sometimes not work in rural areas Special event pricing- Hero Honda Rs. 500 campaign


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Colgate- Cibaca


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Place- Rural Distribution Challenges

Large number of small markets

Dispersed population and trade

Poor connectivity Low availability of suitable dealers

Inadequate banking/ credit facilities

Poor product display and visibility

Poor communication of offers and schemes


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Levels of Distribution

Level Partner Location

1 Company Depot/ C & FA National/ State level

2 Distributor/ VanOperator/ Super Stockist/

Rural Distributor

District level

3 Sub Distributor/ retailStockist/ sub stockist/star

seller

Tehsil HQ, towns andlarge villages

4 Wholesaler Feeder towns, largevillages, haats

5 Retailer Villages, haats


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Distribution Adaption( Indicative)

Hub and Spoke Model, Example: Coca Cola

Use of Affinity groups, Example: Project Shakti

Haat Activation, Example: Colgate

Syndicated distribution, Example: Cavin Care &Amrutanjan

Use of marketing co-operatives, Example: WarnaBazaar in Rural Areas

Mobile traders, Example: FMCG companies


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Promotion- Adaptations for Rural Markets

Conventional Non- Conventional Personalised

Television Haat and Mela Direct mailer

Radio Folk Media( puppet andmagic show)

POS (demonstration, leaflet)

Press Video Van Word of mouth

Cinema Mandi Interpersonal

communication

Outdoor: Wall Painting,Hoarding

Animator


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Melas & Haats

Melas Haat

1. 25,000 melas

2. Companies can concentrate on

the top 100 melas

3. Pushkar Mela in Rajasthan

4. Organised by the state veterinary

department

5. Product sales, promotion,

demonstration and database

generation

6. Cultural activities and rural

sports

1. Periodic markets located in larger

villages(> 40,000)

2. 10 50 villages are serviced

3. Sunday markets are most popular

4. Average number of outlets is 315 and

average daily sales is about Rs 2 lakhs

5. Traders participate in at least 4 haats

6. 81 percent of the visitors are repeat

customers


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Types of Promotions

Advertising

Sales promotions coupons, contests, demonstrations

and sampling, Example: Tata Shaktee Haat Hungama

Direct marketing, Example: Videocon

Publicity, Example: Project Shakti and AP Online

Using a direct selling through a sales force, Example:

Swasthya Chetna for Lifebouy


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Contd

Push strategy sales force and trade promotion

Pull strategy advertising and consumer

promotion


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Close of Session

Thank You

4 ps- rural marketing

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