Rural MarketingRural marketing is the process ofdeveloping , pricing, promoting ,distributing rural specific goods andservices leading to exchange betweenurban and rural markets, which satisfiesconsumer demand and also achievesorganizational objectives.
STRATEGIESSEGMENTATION OF RURAL MARKET:THE FIRST STEP IS THE APPROPRIATESEGMENTATION OF RURAL MARKETFOCUS ON SELECT MARKETSFOCUS ON SELECT MAKESFOCUS ON SELECT VILLAGES
PRODUCT STRATEGIESSmall size packings- low per capita , non availability of regular pay forces the ruralconsumer to buy small packets of various productsLow priced productRough, tough and loudUsable products Brand image
PRICING STRATEGIESLOW PRICINGCOST SAVING IN PACKING-ORDINARY PACKINGETC..CONVERSIONS
PROMOTION STRATEGIESMass media (Radio, Cinema, Press and TV)Local media (Haats and Melas, Wall painting,Leaflets,Video vans, Folk media, Animal parade)Personalised media includes direct communication,dealers, sales persons and researchesBY PROMOTING PRODUCTS WITH INDIAN MODELSAND ACTORS
DISTRIBUTION STRATEGIES Distribution Channel Includes:a) company depotb) Redistribution stockiest, clearing agentsc) Semi wholesalers and retailersd) Itinerant traders, Vans, Sales people, NGOs and garment agencies
Communication StrategiesBY COMMUNICATING AND CHANGING QUAL-ITY PERCEPTIONBY PROPER COMMUNICATION IN INDIANLANGUAGEBY TARGET CHANGING PERCEPTION
Other StrategiesBY DEVELOPING RURAL-SPECIFIC PRODUCTSBY ACQUIRING INDIAN BRANDSBY GIVING INDIAN WORDS FOR BRANDSBY ASSOCIATING THEMSELVES WITH INDIANCELEBRITIES
NIRMAThis washing powder adopted a market penetration strategy basedon price which was 40%.lower than the highest priced product in the market.Its distribution efforts were highly concentrated in Western andNorthern zones.It made the industry leader lose its market share substantially inthose zones.Nirma is possibly the largest detergent brand in the world with salesof 700,000 tonnes a year.
PROMISE TOOTHPASTEThe Company, Balsara, decided to "against position"the new product and aimed at No.2 position.The advertisements were framed so as to offer all thebenefits being claimed by No.1 in a positive sense.The product became a success with growth rate of30% in a market expanding at the rate of 7%.
LIFEBUOY SOAPSuccess of this soap can be attributed to the right marketfocus.The market segment is clearly identified as the lower incomesegment and price sensitive.Recently HUL introduced a new segment "Fighting sweat",for relatively higher incomes.This culminated in "Lifebuoy Plus" a pink coloureddeodorant soap at a price higher than Lifebuoy.
ASIAN PAINTSThey entered the exterior decorative segment with "ace", focusing on non-metromarkets. "Utsav“ and "Opal PuB followed.Advertisements in TV and cinema are resorted to before festivals like Pongal inTamilnadu and other festivals elsewhere when demand for outdoor decorativepaints.It is recognized that turnover and volume growth will come from rural markets.Mobile vans and demonstration cum sales techniques are used to flog "Utsav"brand.
RUF AND TUF JEANSA ready to stitch jeans for the first time users priced at Rs.195/- as against the unorganizedsectors range of Rs.150-3501-Arvind mills, Indias leading denim manufacturer created this new product specifically forthe rural market.The kit included a denim trouser length with specific tailoring instruction and thebranded zipper, rivets and buttons that distinguish jeans in the consumers mind.The product was made available in villages with a population as small as five thousand.Local cloth shops were used as retail outlets.Seminars were organized to train tailors in denim fits and inform them about the changesrequired in sewing machines for stitching jeans.The additional machine accessories were initially provided free of cost and later at asubsidized rate.
USE OF INTERNET FOR RURAL MARKETINGITC has launched three web-based initiatives (E-Choupals in company speak) as partof its strategies to vertically integrate its sourcing operations. Aqua Choupal.com inAndhra Pradesh, Soyachoupal.com in M.P and Planters net.com in Karnataka.ITC - .has setup 235 Internet kiosks, which cater to 10,000 farmers and cover 2,50,000hectares of land.ITC Info Tech structured the entire virtual interaction model and Meta markets forinputs like fertilizers, pesticides etc. that the farmers in different states can use.Its plan was to set up 3000 kiosks to cover 100000 farmers. The idea is to use thisnetwork as a distribution channel for other products
AMULIt recognized the fragmented and rural nature of milk productionin India.It organized a very efficient milk collection network andsupported small dairy farmers with a variety of extension services.It installed very modem processing and packaging facilities.Used mass advertising very effectively to build high levels of brandawareness and preference for its products.