49101376 Product Strategy
Transcript of 49101376 Product Strategy
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Challenges to rural
marketing
Availability
Affordability
Acceptability
Awareness
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AvailabilityChallenge
Regularly making the product reach
to far flung areas Indias 627,000 villages are spread
over 3.2 million square kilometers
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StrategiesReach outat Chaupals, mandis, haats, places of
worship
HUL used bullock carts,auotorickshaws, bicycles & boats in
Kerala backwaters to supply tovillagers
Coca colas hub & spoke approach
(weekly supply to distributors)
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AffordabilityChallenge To provide at cheaper price
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trategy Introduce smaller packages Godrej introduced packages of cinthol
,fair & glow priced at 4-5 Rs. particularlyfor the villagers of M.P., U.P, & Bihar, Chikshampoo, chota coca cola, lifebuoy pricedat Rs.2/- for 50 gms.
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AcceptabilityChallenge To be accepted & adopted
Strategies Better communication (AIDCA model) Demonstrations
Innovative products; thermocoleboxes by coke to counter electricityproblem
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Awareness
Challenge Low literacy rate, less exposure, only
41% villages have access to TV
Strategies Use opinion leaders
One on one trial programs
Melas can be used for: sampling ,demonstrations, retail sale point
HUL uses company organized media
Godre uses re ional radio channels
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Product concept Features & quality
Service mix Appropriateness with price
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Product features Simple
Ease of use
Visually identifiable
Affordable
Relatively longer PLCs
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Some products customized
for rural customers Chocobix by cadburys Ushas big black table fan
LG washing machine with double washcapacity
Videocons Sampoorna television
Jolly TV , capable of running on both250V AC as well as 12V DC battery
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Categories of rural
products-Major players FMCGs ; HUL, Dabur, Marico, Colgate
Palmolive, Nirma, Cavin Care & Godrej
Consumer durables; Usha, Bajaj, Phillips,Titan, Mahindra & Mahindra, Videocon, Tata,LG, Samsung & Maruti
Agri goods; DCM shriram, Rallis India,IFFCO, M&M,Eicher, escorts, Chamabalfertilizers
Services; LIC,BSNL, SBI, Reliance . ITC,
ICICI
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Rural packagingessentials
Packaging material, safety Pack size ( shampoo sachets, Tiger
biscuits at Rs. 2,parachut hair oil,chik shampoo, Rasna concentrate at
Rs. 5 for a pack of 6 glasses) Packaging aesthetics, ease ofidentification ( Lifebuoy-red soap,tiger biscuits
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Branding Product- brand disparity
Using familiar names
Using identifiable packaging
Using familiar endorsers
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Fake brands Lookalikes
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pell-alikes DuplicatesStrategies to tackle lookalikes Packaging made complex Increased dealer interface Increased product margins Govt. intervention