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    4 Ps - Rural Marketing

    Uploaded by

    Rahul Vijaykumar
    This document discusses strategies for marketing products in rural markets across the 4Ps - product, price, place, and promotion. It notes key challenges in rural areas around availability, affordability, acceptability, and awareness. For products, it emphasizes simplicity, developing appropriate new products, and different product levels for rural vs urban customers. For pricing, it discusses adapting prices through lower price points and highlighting value. For distribution, it discusses challenges and adapting through hub-and-spoke models and mobile traders. For promotion, it discusses adapting conventional approaches like TV/radio to non-conventional methods like haats, melas, folk media, and word-of-mouth through animators.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    4 Ps - Rural Marketing

    Uploaded by

    Rahul Vijaykumar
    317 views26 pages
    This document discusses strategies for marketing products in rural markets across the 4Ps - product, price, place, and promotion. It notes key challenges in rural areas around availability, affordability, acceptability, and awareness. For products, it emphasizes simplicity, developing appropriate new products, and different product levels for rural vs urban customers. For pricing, it discusses adapting prices through lower price points and highlighting value. For distribution, it discusses challenges and adapting through hub-and-spoke models and mobile traders. For promotion, it discusses adapting conventional approaches like TV/radio to non-conventional methods like haats, melas, folk media, and word-of-mouth through animators.

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    4 p's of rural marketing

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    4 Ps- Rural Marketing

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    This document discusses strategies for marketing products in rural markets across the 4Ps - product, price, place, and promotion. It notes key challenges in rural areas around availability, affordability, acceptability, and awareness. For products, it emphasizes simplicity, developing appropriate new products, and different product levels for rural vs urban customers. For pricing, it discusses adapting prices through lower price points and highlighting value. For distribution, it discusses challenges and adapting through hub-and-spoke models and mobile traders. For promotion, it discusses adapting conventional approaches like TV/radio to non-conventional methods like haats, melas, folk media, and word-of-mouth through animators.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    317 views26 pages

    4 Ps - Rural Marketing

    Uploaded by

    Rahul Vijaykumar
    This document discusses strategies for marketing products in rural markets across the 4Ps - product, price, place, and promotion. It notes key challenges in rural areas around availability, affordability, acceptability, and awareness. For products, it emphasizes simplicity, developing appropriate new products, and different product levels for rural vs urban customers. For pricing, it discusses adapting prices through lower price points and highlighting value. For distribution, it discusses challenges and adapting through hub-and-spoke models and mobile traders. For promotion, it discusses adapting conventional approaches like TV/radio to non-conventional methods like haats, melas, folk media, and word-of-mouth through animators.

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    4Ps in Rural Markets

    Product
    Anything that has a value in exchange Product price place promotion Challenges Availability, affordability, acceptability

    & awareness
    Marketing Tools Product Price Place Promotion Marketing Challenge Acceptability Affordability Availability Awareness

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

    Contd

    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 market failures Appropriate new product development processes

    Product Levels

    CORE BENEFIT

    BASIC PRODUCT

    EXPECTED PRODUCT

    AUGMENTED PRODUCT POTENTIAL PRODUCT

    Contd
    Product Level Characteristics Example Rural Vs Urban

    Core Benefit
    Basic Product Expected Product

    Fundamental benefit/ services


    Benefit/service into tangibles Attributes & conditions buyers normally expect Exceeding customer expectations Encompassing all augmentations & transformations

    Entertainment
    Television Set Digital sound, flat screen Battery Operated TV Jolly Startek TV

    Same
    Same Appearance of differences in expectations Pleasant surprise for rural customer Uniquely rural value proposition

    Augmented Product Potential Product

    Product Development Stages


    Stage
    Idea Generation Idea Screening
    Searching

    Marketing Activities
    for new product ideas

    Select

    the most promising ideas and drop those with only limited potential. Study the needs and wants of potential buyers, the environment and competition.
    Describe or

    Concept Testing

    show product concepts and their benefits to potential customers and determine their responses. Identify and drop poor product concepts. Gather useful information from product development and its marketing personnel.
    Assess

    Business Analysis

    the products potential profitability and suitability for the market -place. Examine the companys research, development, and production capabilities. Ascertain the requirements and availability of funds for development and commercialisation. Project ROI.
    Determine technical and

    Product Development

    economic feasibility to produce the product. Convert the product idea into a prototype. Develop and test various marketing mix elements.
    Conduct

    Test Marketing

    market testing. Determine target customers Reactions. Measure its sales performance. Identify Weaknesses in product or marketing mix.
    Make

    Commercialisation

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

    FMCG Consumption Trends


    Products Toilet Soap Washing Cake Cooking Oil Hair Oil/ Cream Tea Toothpaste Washing Powder Electric Bulb Shampoo Biscuits Health Beverages Urban( 1000 HH) 998 980 968 897 876 822 819 723 663 579 324 Rural ( 1000 HH) 992 950 952 787 758 449 576 394 352 314 67

    Source: National Council for Applied Economic Research, 2002

    Consumption Ranking
    Rank Rural Product Urban Product Rural HH Consumption grams / month 268 950 268

    1 2 3

    Toilet Soap Washing Powder Packaged Tea

    Toilet Soap Biscuits Washing Powder

    4
    5

    Biscuits
    Detergent Cake

    Packaged Tea
    Detergent Cake

    302
    893

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

    Rural Durable Usage Trends


    NCAER has classified durables into three categories Group One( <Rs. 1000) Group Two( Rs.1000- 6000) Group Three( >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 in

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

    Packaging
    Associated with affordability - Convenience -

    Consumer recognition & product protection


    Packaging material, size, convenience and

    aesthetics
    Example: Chik Sampoo

    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

    Fakes: Some Examples

    Contd

    Pricing

    Issues in Pricing
    Internal & external factors Selecting pricing methods Pricing adaptations

    Low price points Simple packaging utility around

    packaging material Highlighting value

    Price Adaptations ( Indicative)


    Product sharing services, Example: Tractors Product Bundle pricing, Example: HUL Operation

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

    Colgate- Cibaca

    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

    Levels of Distribution
    Level Partner Company Depot/ C & FA Distributor/ Van Operator/ Super Stockist/ Rural Distributor Sub Distributor/ retail Stockist/ sub stockist/star seller Wholesaler Retailer Location National/ State level District level

    1 2

    Tehsil HQ, towns and large villages Feeder towns, large villages, haats Villages, haats

    4 5

    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: Warna Bazaar in Rural Areas Mobile traders, Example: FMCG companies

    Promotion- Adaptations for Rural Markets

    Conventional
    Television Radio

    Non- Conventional
    Haat and Mela Folk Media( puppet and magic show) Video Van Mandi

    Personalised
    Direct mailer POS (demonstration, leaflet)

    Press Cinema

    Word of mouth Interpersonal communication Animator

    Outdoor: Wall Painting, Hoarding

    Melas & Haats


    Melas 1. 25,000 melas 2. Companies can concentrate on the top 100 melas 3. Pushkar Mela in Rajasthan Haat 1. Periodic markets located in larger villages(> 40,000) 2. 10 50 villages are serviced 3. Sunday markets are most popular

    4. Organised by the state veterinary


    department 5. Product sales, promotion, demonstration and database generation 6. Cultural activities and rural sports

    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

    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

    Contd
    Push strategy sales force and trade promotion Pull strategy advertising and consumer

    promotion

    Close of Session

    Thank You

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