MS-611No. of Printed Pages : 6

MANAGEMENT PROGRAMME

Term-End Examination0)wzzr00CDCD

June, 2010

MS-611 : RURAL MARKETING

Time : 3 hours Maximum Marks : 100

(Weightage 70%)

Note :

This paper consists of two sections A and B. Attempt

any three questions from Section-A. Section-B is

compulsory. All questions carry equal marks.

SECTION-A

What are the challenges that face a marketerseeking to enter rural markets in India ? Explainwith reference to the example of an establishedproducer of refrigerators seeking to increase hismarket share by entering rural markets.

(a) Explain the importance of family lifecycle

in influencing buyer behaviour in ruralmarkets, with the help of suitable examples.

(b) Discuss the key differences between urbanand rural marketing research.

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3. Discuss the important product modificationstrategies that marketers use when adopting thenproducts for the rural markets. Explain withreference to the following :

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4. What are the sales promotion techniques that havebeen effective in the context of rural markets ?Explain the key success factors that are requiredfor these techniques to succeed.

5. Write short notes on any three of the following :Factors affecting consumer choice of ruralretail outlet.Thomson's Rural Market Index.Communication concepts relevant to therural market.Dynamics of physical distribution in ruralIndia.

(e) Attitudes and Beliefs of rural customers.

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SECTION-B6. Read the case given below and answer the

questions given at the end of the case.Philips India Limited is a subsidiary of global

electronics giant Philips and a leading player inthe consumer electronics and electrical lightingsegments backed by superior design andtechnology. It also makes domestic appliances,electronic components, telecom equipment, etc.

A major portion of Philips' revenue (86%)is derived from consumer electronics and electricallighting divisions. Domestic appliances, electroniccomponents, industrial electronics, etc., contributethe rest.

One of the most important characteristicsof the Indian market is that it is highly pricesensitive. Opening up of the economy hasattracted a host of global majors, who havelaunched the latest technology products.Increased pressure due to competition andoverzealous capacity creations has resulted inlower margins.

The Rural InitiativeIn view of the rising income levels in the

rural market, the company planned to promoteits audio visual range there.

The Consumer Electronics Division, with anobjective of promoting Philips audio visual rangeof products in rural Tamil Nadu assigned

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Anugrah Madison the responsibility of designingand executing the promotional effort. It wasdecided that the promotional efforts will be firstinitiatives in rural Tamil Nadu.

Anugrah Madison, an agency specializingin rural promotion based in Chennai has beeninvolved for the last 15 years in RuralCommunication. The agency has the ability todevelop communications including creatives in allSouth Indian languages as well as Hindi, and hasthe capacity and plant manage rural events.

The Promotion Plan : Reaching Dealers andConsumers

The agency developed a two pronged mediacampaign targeting dealers and opinion leader aswell as consumers.

In order to educate dealers and opinionleaders about Philips' plans for the rural markets,five Philips Super Shows were held in hotels intowns in Tamil Nadu. The activities includedspecial invitation cards with luck dip numbers, aspecial dealer motivation song, a tele-film, a skitby a leading comedian and distribution of prizes.An exhibition with the latest innovative productsof Philips from the world over was opened to thegeneral public for two days and was heavilypromoted in the local media (regional press, vanannouncements, banners, hoardings, etc.). Aspecial contest was also held to generate adatabase of potential customers.

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To target the rural masses, an extensivecampaign consisting of the regional press, radio,rural cinema and wall paintings wasimplemented. In addition, an extensive audio-visual van operation across 2,000 villages wasdevised. Here activities included a karaoke contestwith prizes, a theatre commercial, a telefilm, apainting contest for children, as well as distributionof prizes such as audio cassettes, t-shirts andchocolates for children. Other activitiesconducted in the village for residual impact werethe distribution of audio cassettes in teashops/grocery shops, etc., the pasting of posters inimportant outlets, and the distribution ofperpetual calendars to panchayat chiefs. Inaddition, a database of 12 opinion leaders fromeach village was collected for follow-up action.

The whole exercise generated a very highlevel of word-of-mouth publicity for the Philipsbrand.

As a result of the complete media campaign,in recessionary market situation, Philips was ableto enjoy substantial sales growth for both its b/wTV and colour TV brands, and a high level ofaudio sales were maintained.

The company is now considering rolling outthe rural promotion activity on a national scale.

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Questions :

Critically evaluate the communicationstrategy utilized. Comment upon bothdealer and consumer promotion giving yourviews of the media used in each case.

Can the same plan be scaled at nationallevels ? Why and why not ?

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