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PRODUCT STRATEGY
Marketers can penetrate rural market by designing
innovative roducts
o LG s Sampoorna TV which facilitated on screen
display in regional languages like Hindi, Bengali, etc.o LGs washing machine with double capacity in Rural
areas (for joint families) and a memory back up to
a ress t e requent e ectr c ty rea owns.o Philips India launched FREE POWER RADIO, which
.
winding. No electricity or battery required.
Chocobix, not chocolates which are expensive and
unaffordable.
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Philips Free Power Radio
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Eveready Plastic Torches not successful in Rural
because Rural consumers preferred brass torches
for resale value of brass as scrap.Rural markets product should be
o Appropriate for the rural environment
o Simple to operateo Visually identifiable
o
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RURAL PRODUCT CLASSIFICATION
Fast Moving Consumer Goods (FMCG)
onsumer ura es
Servicesgr cu ura goo s
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SERVICES
Healthcare, telecommunication, informationcommunication technology (ICT), banking, insurance and
e uca on.
LIC, SBI, Bharat Sanchar Nigam, Airtel, ITC E choupal,,
AGRICULTURAL GOODS Seeds, Fertilisers, Pesticides, Insecticides and implements
(tractors, tillers, threshers, harvesters, pump sets)
Animal feeds, Dairy, Poultry and Fishery equipments.
Major Players Rallis India, Monsanto, DCM, Bayer,
,
Mahindra & Mahindra, Tractors and Farm Equipment
, .
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PRODUCT DECISIONS AND
Product decisions are taken at three levels
o Product Line Decisions
Strate ies to be also made at
o The level of Product Lifecycle.
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INDIVIDUAL PRODUCT DECISIONS
consumers expectations related to durability,
, .
o Important to find out how Rural consumers evaluate
o A Rural consumer thinks that a heavy watch has
better quality, quality of cement is known by its bitter
taste, tractors quality by the sound of the engine.FEATURES
o Adding of additional features based on Customer
value vs. Company cost.o o n eree as a e a power s eer ng o e ow
35 hp tractors to provide efficiency and
.
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DESIGN AND STYLE
DESIGN AND STYLE
o Design includes all features that contribute to a
producto One should look at the Rural environment where
the product is to be used.
Two handles needed for a Pressure CookerHUL covers dish wash bar with a plastic coating below.
Intel PC can handle the heat and dust
o Max Gas
o Godrej Chotu Kool
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A company needs to create an appropriate product
mix for Rural markets.o sua y one pro uc o a par cu ar company
available.
than one product in their rural product basket.
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PLC in Rural areas is longer than in the Urban
areas.ac s age s onger ecause o c a enges n
distribution, communication and adoption of product.
ura mar e s no omogeneouso PLC stage for a product may be different in different.
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PRODUCT BRANDING IN RURAL AREAS
Brand association in Rural Areas is mainly with colours,numbers and visuals, not necessarily with the name of a brand.
Colours
o Lal Dant Manjan
o Lal Sabun Lifebuo
Visuals
o Ghari Detergent
o Rath Vanas ati
o Red Battery (Eveready)
Numbers
o Wagh Bakri Tea
o 3 Roses Tea
.
o 555 detergent bar
o 502 Pataka Chai
coil
o Cycle Agarbati
o Brooke Bond A1 Karak
Chai
.
have low brand awareness.
Paanch Rupaye Waali Chai Dena .
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Wagh Bakri Tea
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BUILDING BRANDS IN RURAL AREAS
ran names raw assoc a on w co our, v sua ornumeric association.
o rma an o ga e are nown y e r names
o Sampoorna (LG TV) cuts across regional linguistic
.
o Ajanta (toothpaste) and Bhoomiputra (tractor) were
chosen for the same reason.
Brand Identityo Tata Shakti Galvanised Corrugated Sheets
o Shree Ultra Jung Rodhak
Building a Brand Imageo Mahindra Bhoomiputra and Sarpanch Series of
tractors.
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BRAND LOYALTY AND BRAND STICKINESS
ura peop e more com or a e w r e an es e ran s.Companies need to
o Educate rural consumers
o Develop interest through interactive communication
o Encourage their desire through own/new products
.
Brand Stickiness - Early Mover Advantage
o If a New brand gives satisfaction to the first user, because of
wor o mou many s ar us ng e same ran .
o Brand stickiness low in low involvement products like toilet soaps
o High in case of Chyawanprash, skin creams, hair oil and shaving
creams.
Companies to understand regional preferences
o Kala Ghoda in Rajasthan
o Local spices added to gain local acceptance.
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FAKE BRANDS
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FAKE BRANDS
Look Alikes: Colour Schemes and packaging are
. .
, , ,
Lonely, Likeboy.
Duplicates: Exact replicas of original brands.
Strategies used:
o Change in Packaging.o Getting the counterfeits by salesman.
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PACKAGING FOR RURAL MARKETS
Packaging in Rural areas needs a special focus because of
o Difficulties of safe storage (rats, moisture, heat, rainwater)
o Poor facilities (erratic power supply, leading to poor cold storagefacilities for food products).
A product for Rural market should
o Have a lon er shelf life than roducts for urban markets
o Able to withstand extreme weather conditionso Able to withstand jerky and sudden movements on dusty roads.
Packaging Material
o Tetra packso Polythene and Plastics
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PACKAGING FOR RURAL MARKETS
Pack Size and Convenienceo Sachet Revolution
Velvet Sham oo for Rs.1/- in late 1970s
Chik Shampoo
Strategy of small packs used by
- .
o Coca Cola
o Godrej Cinthol, Fairglow and Godrej No.1 (Rs.4 to Rs.5)
o Maggie Noodles (Rs. 2/- and Rs. 4/-)o Glaxo SmithKlines ( Horlicks Asha 40% less price)
. -
Convenience
o Col ate with a sachet with ca .o Marico with Parachute (Rs.1/- sachet).
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PACKAGING FOR RURAL MARKETS
Packaging Aestheticso Rural consumer appreciate bright colours
e uoy s re co our soap
Britannia Tiger symbol
Rin Lighting boltTexla
grey and black cabinet TV sets low sales
e ow an r g re se s, rama c ncrease n sa es
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PRODUCT WARRANTY AND AFTER
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PRODUCT WARRANTY AND AFTER
For high value durables, warranty is important for
.
Polar Fans 7 year warranty increase in market
Tractor, motorcycle and auto component companies
o Free check up, spares like oil filters supplied at lowcost
Usage of mobile service vans
Service centres in rural areaso Godrej service centres in rural areas with a police
station.
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NEW PRODUCT DEVELOPMENT (NPD)
Four Stages of NPD
o Concept Testing
o Product Developmento Market Testing
Idea Generation
o Rural Immersion (Dupont, Godrej)Concept Testing
o Changes from place to place
o UNICEF dry toilets accepted in water scarce
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o Frugal Engineering Maximising value to customer
.
o Tata NanoMore storage space instead of radio, one wiper, one rear
view mirror, un adjustable seats.
Godrej ChotuKool Portable refrigerator, size of a small
Nokia Mainly for making calls.
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THANK YOU
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