Segmentation in Rural - Sent

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    RURAL MARKETS

    Segmenting,Targeting &

    Positioning

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    Pre-requisites for effective

    segmentation Measurable

    Accessible

    Differentiable

    Substantial

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    Degrees of segmentation

    Mass marketing

    Segment marketing

    Niche marketing

    Micro marketing Local marketing

    Individual marketing

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    Bases of Segmentation in rural

    market

    Segmentation criteria Relevant variables

    Geographic RegionVillage size & densityClimate

    Demographic AgeGenderIncomeLand ownershipEducation (SEC Classification)

    Occupation (SEC Classification)Type of house (SEC Classification)

    Psychographics Lifestyle- Rural, Urban, RurbanPersonality

    Behavioral OccasionsBenefits sought

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    Consumer driven segmentation

    Indian tractor industry Previously had product centric approach

    segmented market on the basis of power of thetractors.

    For consumer centric approach through extensiveresearch variables studied were:

    Soil type

    Landholding

    Climate

    Age Family size

    Application of tractor

    Horsepower of tractor

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    Targeting

    Evaluation of segments

    Selection of segments

    Coverage of segments

    Choosing a coverage strategy

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    Effective segmentation

    targeting

    In 2000, one of worlds leading agri-businesscompany entered India to market its hybridseeds and crop protection products.

    Segmented market using variables like

    Geography

    Adoption behaviour Crop economics

    Usage pattern

    Farmer attitude & behaviour

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    Effective segmentation

    targeting The company identified 3 main segments-

    Optimal farmers

    sub optimal farmers marginal farmers

    -Optimal farmers comprise 1/3rdof total market

    -Residing in agriculturally rich states of Punjab,

    Haryana, Tamil Nadu & Maharashtra-Were first to have capitalised on the Green

    Revolution.

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    Effective segmentation

    targetingProfile of the segment

    Early adopters of any new farming technology

    Use preventive rather than curative cropprotection methods

    Information seekers

    Self dependent for knowledge on the latest

    products

    Greater access to agricultural markets

    Have business outlook towards farming

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    Effective segmentation

    targetingThe company found the best fit with this

    segment of optimal farmers and targeted them

    for its existing products.

    This segmented approach helps companies to

    expand their market and also help them sell the

    right products to the right customers.

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    Positioning

    Identifying the positioning concept

    Selecting the positioning concept

    Developing the concept

    Communicating the concept

    HimanisSona Chandi Chyawanprash positioned

    on 2 platforms a healthy body and a sharpmind.

    Tata Ace as Indias first Mini Truck Small is Big.Chota Hathi.

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    Identifying the Positioning

    Concept Product differentiation

    Service differentiation

    People differentiation

    Image differentiation

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    Selecting the Positioning

    Concept Attractive

    Distinctive

    Pre emptive

    Affordable

    Communicable

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    Segmenting, Targeting,

    Positioning

    Decision Actions

    Segmentation Identifying various bases forsegmenting marketsDeveloping profiles of market

    segments

    Targeting Evaluating the market segments fortheir attractivenessDeciding the market coveragestrategy

    PositioningIdentifying a set of possible

    competitive advantages of the brandSelecting the right competitiveadvantageCommunicating the chosencompetitive advantage to the target

    group.