MARKETING OF CONSUMER DURABLES
1.RURAL MARKETING SCENARIO2. COMPOSITION OF CONSUMER GOODS3. RELEVENCE OF PRODUCT, PRICE, PLACE AND PROMOTION IN RURAL MARKET4. THE ROLE OF ADVERTISING
INDIA ‘ S MARKETS
India with population of above 200 million is the word’s second largest fast growing market.
India ‘s growing market is not only by virtue of its population but also on account of Unsatisfied demand for consumer
product Rising income Changing attitudes & life styles The communication revolution
RURAL MARKET
Two sides of rural marketsImmense opportunitiesIntimidating challenges
Now rural consumers constitute a big potential market for consumer goods.
The investment pattern is changing from buying gold to buying tractors, implements & pump sets.
The rich farmers buy all possible modern amenities.
With the speed of literacy, more schools & more rural people getting educated & the usage of consumer goods is bound to increase
RURAL MARKETING SCENARIO
1. RURAL INCOME2. EDUCATION3. LACK OF SAVINGS
HABIT4. IRREGULAR DEMAND
COMPOSITION OF CONSUMER GOODS
Consumer goods are divided as durable goods and non durable goods.
Durable goods –Bicycles, electric iron,
Table, chairs, fansCookers, Stove,
GrindersRefrigerators, Washing
machines , TV, Harvesters,
Pump sets, 4 wheelers etc
Non durable goods – Washing powders, bath soaps, Shampoo, shaving
creams,Tea, coffeeFace powder,
Bindi, Cosmetics, Comb,
Bangles, Nail polishpaper, magazines,Dress materials,
Bulbsmedicines, tooth
brush etc
SIZE OF RURAL MARKET
Category Estimated annual size(Rs crore)
FMCG 65000
FMCD 5000
Agri inputs 45000
2/4 wheelers 8000
Total 123000
MARKETING STRATEGY FOR COSUMER DURABLES
STP+ 4P’S=MARKETING STRATEGYS- SEGMENTATIONT-TARGETINGP- POSITIONINGP- PRODUCTP-PRICEP-PLACEP-PROMOTION
RELEVENCE OF PRODUCT, PRICE, PLACE, PROMOTION
PRODUCT----- Product design, features, brand
name, models, styles, appearance Product qualityWarrantyPackage: design, material, size,labeling etc.
PLACE--------- Cannels of distribution: Design, location of intermediaries, location of outlets,Channel remuneration,Dealer- principal relations etc
Physical distribution: Transportations,
warehousing, Order processing etc
PRICE-------------1. Pricing policies, margins, discounts, & rebates.
2. Terms of delivery, payment terms , credit terms
purchase facilities, resale pricemaintenance
PROMOTION----------- 1. Personal selling:selling expertise, Size & quality of sales force, etc.2. Advertising:Media mix, vehicles, programmes.3. Sales promotion:Gifts, price offs, coupons, contests, prizes etc4. Publicity & public relation
PRODUCT
Smaller packages, low value goods
Change the product attributes Modernize & redesign the
products to satisfy rural buyers
Economy products Keep adequate stocks
PRICE
Sell at lower price or at same price as in the urban market
Reduce price by modifying attributes like package, size, packing etc.
Ensure loyalty of consumers Work on minimum possible
profit margin.
PLACE
Product should made available at convenient places.
Hawker method is preferred in absence of agents to sell daily to rural people.
The bigger companies can arrange for better sales distribution in the rural sector
PROMOTION
It is a backup function for sales force.
Promotion strategy consists of advertising, sales promotion, public relation, publicity& personal selling.
One of the very popular schemes in the rural areas is “ buy 2 soap cakes & get one free”
ROLE OF RURAL ADVERTISING
INTRODUCTION OPENION LEADERS LANGUAGE ADVERTISING A
NECESSITY
INTRODUCTION
Mass media gap in India is as conspicuous as the income gap
Extra basic infrastructure Is needed to reach mass population.
Press, cinema, demonstration vans, puppet shows & theaters may be used to convey product massage
“persuasion by the opinion makers “ also counts
“Word of mouth “ is a powerful medium.
Panchayats can be a useful instruments of mass changes in consumer habits
Opinion leaders generate confidence in the slower & later adopters.
There is a need to advertise in local languages
ADVERTISING –A NECESSITY
Advertising not necessarily creates demand for products in rural market.
Other factors like environmental conditions, price cuts, quality changes, raising income also creates demand.
There is a need to divert some resources from advertising to market research.
Our rural marketers should keep an eye on import substitution & upgrade raw materials on the basis of research.
SUMMERY