Rural Mktg Strategy 1

8/8/2019 Rural Mktg Strategy 1

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RURAL MARKETING STRATEGY


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ENTERINING

THE

RURAL

MARKET

New Entrant

Company starts Rural Market first &

then ventures in Urban Market

(eg Cavin Kare Chik & Meera

Shampoo)

Mid- Entrant

Company starts Rural Market after

success in Urban Market

(eg HLL, LG)

Late - Entrant

Company starts Rural Market aftersuccess in Urban Market for long

(eg Cadbury)

R

G

A

Retain

Grow

Add

Purpose the market


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RURAL MARKETING STRATEGYPL

A

NN

IN

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XE

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FE

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AC

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Profile the Rural Market

Profile the Consumer

Market Behaviour & MR

Segmentation TargetingPositioning

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Rural Product

Rural Pricing

Rural Distribution

Rural Sales Force Management

Rural Communication

Monitor the Rural Strategy

Feedback & Control

1

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DEVELOPMENTAL MARKETING

Developmental marketing is a process through which awareness is created

>could be demonstration>could be presentation

>Free samples

>could be through up eg tie up with Bank, tie up with Petrol/Diesel pumps

(Hyndai did with IOC and PNB and SBI subsidiaries >30% sale of Hyundai from

Rural/Semi Urban areas)

Awareness

Trial

Purchase

Post-Purchase Satisfaction

Colgate program Operation JagrutiSwitch from Charcoal to Colgate tooth powder

HLL - Free samples of Lifebuoy

Cavin Kare Free sample of Chik Champoo

Marico Industries Parachute coconut oil

Sudhata ki pehchan smell to differentiate between real and spurious


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Rural Product

Product to be marketed with the requirements of the Rural Consumer should not be an extension of

urban offerings

(Philips launched Free Power Radio does not require Battery/electricity you wind it with a lever and

radio runs For approximately 30 min.

Classification

Of

Rural

Products

FMCG

(HLL, Dabur, Marico, Colgate=Palmolive Coke, Pepsi)

Consumer Durables

TV ,Fridge, Fan, Presssure Cooker, Cycle, Two wheelers,

Sewing machines, watch, mixer grinder, radio, music system,Fans, Washing machines (Philips, LG, Videocon, Onida )

Services

Telecom, Banking, Health care ,Insurance (Airtel, BSNL, SBI,

PNB,Dena bank,)

Agri-inputs

Seeds, pesticides, tractors (Rallis India, Bayer,)

Product

Life

Cycle

(PLC)Launch

Take Off

Maturity

Decline


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Points to note

Rural Products

Easy to UseAfter sales supportConveniently packed- success of Sachets

Product literature to be simple

Have a logo easy to identify eg Thums Up

Rural Packaging

Packaging material plastics, poly packs, unbreakable materials

Looks - attractive colors (like all tea companies)

Size and convenience- small is beautiful

Rural Branding

1. BrandName

2 Create Brand Identity

3 Enhance Recognition

4 Build a Brand Image

5 Countering Spurious brands : Look alike/ Spell alike / Duplicates

Enhancing Brand Strategies with Social PerspectiveSoaps for Hygiene

Cooking gas for environment

Creating need by more awareness

Partnering with a long term perspective requires total belief and Commitment - to the people, to the processes, to

their own employee.Need to work for a cause ITC, HindustanPetroleum, HLL ,

ColgatePalmolive , Several Banks are a few such examples


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RURAL PRICE

Pricing In Rural Market plays a key role in the success of a product

RURAL PRICING OBJECTIVES

Have a long run perspective

Idea is to penetrate first

Increase Volume

Make using the product a habit

Volumes to take care of the Margins

Keep eye on Competition Price

The following may help in addressing the issue

Low cost less amount (small packages- sachets)

Simple but colorful packaging eg. success of biscuits

Refill packs

Value engineering eg soya protein in place of milk protein

METHODS OF PRICING1. Cost Plus Pricing = cost of product +distribution +profit

2. Value Pricing (VFM-Value for Money) High Benefit

3. PowerPrice eg Re 1, Rs 2, 3, 5,10

4. Penetration Price Introduce at low and hike price after success

5. Differential Pricing Different price for different market

6. Price Gap Comp prices range


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RURAL DISTRIBUTION

Physical Distribution Channel of Distribution

Transportation

Warehousing Communication

PHYSICAL DISTRIBUTION

Transportation Railways, Roads ,Waterways, Animals

Communication ITC using internet, Mobile users by fisherman

Warehousing (Three Tier Rural Warehousing Set Up)

Central/State Warehousing

CooperativesRural Godowns


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WHY CHANNELS OF DISTRIBUTION

Geographical Spread

Dealers are few hence required to bank on a number of resources

Financial ViabilityInadequate Bank and Credit Facilities

TO ADDRESS THE ABOVE CHALLENGES

Rely on Private Village Shops

Supply Chain Stores

Rural Super Market

Small companies tie up with large companies Leverage/Syndicate

Distribution network of Marico to sell Tide by P&GSatellite Distribution

Whole-

Saler

Town

D

D

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D

SD

SD

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SD

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SDSD

R

D-dealer

SD- Sub Dealer

R-Retailer


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PLANNING FOR SALES FORCE MANAGEMENT

SET THEPERSONAL SELLING OBJECTIVES

FORMULATE THE SALES POLICIES

STRUCTURE THE SALES FORCE

SIZE OF THE SALES FORCE

ASSIGNING SALES TARGETS

CREATING SALES FORCE- SELECT, RECRUIT, TRAIN

SALES FORCE COMPENSATION, MOTIVATION, SUPERVISION

SALES COMMUNICATION & REPORTING

SALES COORDINATION/SALES CONTROL


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TRAITS OF A RURAL SALESPERSON

Hardworking

Have Empathy

Enthusiastic

Perseverance

Knowledge

Attitude

Skills

Willingness to work in Rural AreasAdopting to cultural differences

Down to earth approach

Fluent in local language

Developmental approach Create not only Communicate

Common to both

Urban & Rural Sales person

Additional traits for making it Big in Rural Areas


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The Success of Organizations depends on lot on the Sales Force

They are the face of the Organization the Ambassador

They are the ones who have direct interaction with

The Potential Consumer/Customer

The UsersThe Dealers

The Distributors

The Retailers

They are a major link to the chain and establish the link

They are the ones who help in building Trust

They need to break the rigid ideas and preconceived notions


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RURAL COMMUNICATION

Effective Communication goes a long way in establishing the right Messages and thereby

more interaction with Potential Customers Communication, however, is not complete if

there is no feedback It is very important to re enforce messages in Rural areas

Factors Affecting Rural Communication

Literacy levelMedia Habits

Traditional approach

High resistance more so initially

Lavish at occasions (eg Marriage)

Purchasing power also depending on weather- the crops

Inequitable distribution of wealth

Too many languages

Culture


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RURAL MEDIA

Mass Media

(Conventional)

Traditional Media

(Non Conventional)

T.V /Cable network

Satellite ChannelsRadio

Print

Cinema/ Theatre

Word of Mouth

Video on Wheels

Puppet Shows

Folk Theatre/Opera

Demonstration

Haats and Mela

Wall painting

Post card and posters

Booklets/CalendarAdvantages

>Excellent Reach

Less expensive ,wider coverage

Disadvantages At times unnecessary coverage

No customized messages

Companies using this medium

Levers, Onida, Videocon

Mahindra Tractors, Eveready

Advantages

>High involvement

High Interest

Localized administered at low cost

Disadvantages

Coverage

Repeat /Re enforcement

Skill of performer

Companies using this medium

Bajaj, Levers, HUL, ITC000

Rural Mktg Strategy 1

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