Rural marketing strategies

RURAL MARKETING STRATEGIES

PRESENTED BY:

NIPANKAR GUHANITIN GUPTA

SUMIT KUMAR

Rural Marketing

Rural marketing is the process of developing , pricing, promoting , distributing rural specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organizational objectives.

Constituents :

Agricultural and allied activities, Poultry farming, Fishing, Animal husbandry, Cottage Industries, Panchayat office etc.

Products :

Consumables, seeds, Fertilizers, Pesticides, Petrol,diesel etc.

Durables :

Tillers, Tractors, Pump sets, Generators, Boat etc.

SERVICES MARKET

• Individuals,• Households, • Offices• Production firms.

Constituents:

• Repairs, • Transport, • Banking credit, • Insurance,• Education, • Communications etc

Services :

SEGMENTATION OF RURAL MARKET: THE FIRST STEP IS THE APPROPRIATE SEGMENTATION OF RURAL MARKET

FOCUS ON SELECT MARKETS

FOCUS ON SELECT MAKES

FOCUS ON SELECT VILLAGES

Small size packings- low per capita , non availability of regular pay forces the rural consumer to buy small packets of various products

Low priced product

Rough, tough and loud

Usable products

PRODUCT STRATEGIES

Brand image

LOW PRICING

COST SAVING IN PACKING-ORDINARY PACKING ETC..

CONVERSIONS

PRICING STRATEGIES

Mass media (Radio, Cinema, Press and TV)

Local media (Haats and Melas, Wall painting,Leaflets, Video vans, Folk media, Animal parade)

Personalised media includes direct communication, dealers, sales persons and researches

BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS

a) company depot

b) Redistribution stockiest, clearing agents

c) Semi wholesalers and retailers

d) Itinerant traders, Vans, Sales people, NGOs and garment agencies

DISTRIBUTION STRATEGIES

Distribution Channel Includes:

BY COMMUNICATING AND CHANGING QUAL- ITY PERCEPTION

BY PROPER COMMUNICATION IN INDIAN LANGUAGE

BY TARGET CHANGING PERCEPTION

Communication Strategies

BY DEVELOPING RURAL-SPECIFIC PRODUCTS

BY ACQUIRING INDIAN BRANDS

BY GIVING INDIAN WORDS FOR BRANDS

BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES

Other Strategies

CASE STUDIES

This washing powder adopted a market penetration strategy based on price which was 40%.

lower than the highest priced product in the market.

Its distribution efforts were highly concentrated in Western and Northern zones.

It made the industry leader lose its market share substantially in those zones.

Nirma is possibly the largest detergent brand in the world with sales of 700,000 tonnes a year.

PROMISE TOOTHPASTE

The Company, Balsara, decided to "against position" the new product and aimed at No.2 position.

The advertisements were framed so as to offer all the benefits being claimed by No.1 in a positive sense.

The product became a success with growth rate of 30% in a market expanding at the rate of 7%.

LIFEBUOY SOAP

Success of this soap can be attributed to the right market focus.

The market segment is clearly identified as the lower income segment and price sensitive.

Recently HUL introduced a new segment "Fighting sweat", for relatively higher incomes.

This culminated in "Lifebuoy Plus" a pink coloured deodorant soap at a price higher than Lifebuoy.

They entered the exterior decorative segment with "ace", focusing on non-metro markets. "Utsav“ and "Opal PuB followed.

Advertisements in TV and cinema are resorted to before festivals like Pongal in Tamilnadu and other festivals elsewhere when demand for outdoor decorative paints.

It is recognized that turnover and volume growth will come from rural markets.

Mobile vans and demonstration cum sales techniques are used to flog "Utsav" brand.

A ready to stitch jeans for the first time users priced at Rs.195/- as against the unorganized sector's range of Rs.150-3501-

Arvind mills, India's leading denim manufacturer created this new product specifically for the rural market.

The kit included a denim trouser length with specific tailoring instruction and the branded zipper, rivets and buttons that distinguish jeans in the consumer's mind.

The product was made available in villages with a population as small as five thousand.

Local cloth shops were used as retail outlets.

Seminars were organized to train tailors in denim fits and inform them about the changes required in sewing machines for stitching jeans.

The additional machine accessories were initially provided free of cost and later at a subsidized rate.

USE OF INTERNET FOR RURAL MARKETING

ITC has launched three web-based initiatives (E-Choupals in company speak) as part of its strategies to vertically integrate its sourcing operations. Aqua Choupal.com in Andhra Pradesh, Soyachoupal.com in M.P and Planters net.com in Karnataka.

ITC - .has setup 235 Internet kiosks, which cater to 10,000 farmers and cover 2,50,000 hectares of land.

ITC Info Tech structured the entire virtual interaction model and Meta markets for inputs like fertilizers, pesticides etc. that the farmers in different states can use.

Its plan was to set up 3000 kiosks to cover 100000 farmers. The idea is to use this network as a distribution channel for other products

It recognized the fragmented and rural nature of milk production in India.

It organized a very efficient milk collection network and supported small dairy farmers with a variety of extension services.

It installed very modem processing and packaging facilities.

Used mass advertising very effectively to build high levels of brand awareness and preference for its products.