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
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