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SESSION – III  XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR  4Ps in Rural Markets
Product  ,[object Object],[object Object],[object Object],Source: The Rural Marketing Book- Kashyap. P & Raut. S  Marketing Tools  Marketing Challenge  Product Acceptability  Price  Affordability Place  Availability  Promotion  Awareness
Cont’d
Appropriate Product Strategies  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT Product Levels
Cont’d  Product Level  Characteristics  Example Rural Vs Urban  Core Benefit  Fundamental  benefit/ services  Entertainment  Same  Basic Product  Benefit/service into tangibles  Television Set  Same Expected Product Attributes & conditions buyers normally expect  Digital sound, flat screen  Appearance of differences in expectations  Augmented Product  Exceeding customer expectations  Battery Operated TV  Pleasant surprise for rural customer Potential Product  Encompassing all augmentations & transformations  Jolly Startek TV  Uniquely rural value proposition
Product Development Stages  Stage Marketing Activities  Idea Generation ,[object Object],Idea Screening   ,[object Object],Concept Testing   ,[object Object],Business Analysis   ,[object Object],Product Development   ,[object Object],Test Marketing   ,[object Object],Commercialisation ,[object Object]
FMCG Consumption Trends  Products  Urban( 1000 HH)  Rural ( 1000 HH)  Toilet Soap  998 992 Washing Cake  980 950 Cooking Oil  968 952 Hair Oil/ Cream 897 787  Tea 876 758  Toothpaste  822 449 Washing Powder 819 576 Electric  Bulb  723 394 Shampoo  663 352 Biscuits  579 314 Health Beverages  324 67 Source:  National Council  for Applied Economic Research, 2002
Consumption Ranking  Rank  Rural Product  Urban Product  Rural HH Consumption grams / month  1 Toilet Soap Toilet Soap  268 2 Washing Powder Biscuits  950  3 Packaged Tea Washing Powder 268 4 Biscuits  Packaged Tea 302 5 Detergent Cake  Detergent Cake  893 Source:  A.C Nielsen Retail Audit, MAT, July -2004 & ORG- MARG Retail Consumer Panel, 2001
Rural Durable Usage Trends  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Packaging  ,[object Object],[object Object],[object Object]
Corporate Responses to Fakes  ,[object Object],[object Object],[object Object],[object Object]
Fakes: Some Examples
Cont’d
Pricing
Issues in Pricing  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Price Adaptations ( Indicative)  ,[object Object],[object Object],[object Object],[object Object]
Colgate- Cibaca
Place- Rural Distribution Challenges  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Levels of Distribution  Level Partner  Location  1 Company Depot/ C & FA  National/ State level  2 Distributor/ Van Operator/ Super Stockist/ Rural Distributor  District level  3 Sub Distributor/ retail Stockist/ sub stockist/star seller Tehsil HQ, towns and large villages  4 Wholesaler  Feeder towns, large villages, haats  5 Retailer  Villages, haats
Distribution Adaption( Indicative)  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Promotion- Adaptations for Rural Markets  Conventional Non- Conventional  Personalised  Television Haat and Mela  Direct mailer  Radio  Folk Media( puppet and magic show) POS (demonstration, leaflet)  Press Video Van Word of mouth Cinema  Mandi  Interpersonal communication  Outdoor: Wall Painting, Hoarding  Animator
Melas & Haats  Melas  Haat  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Promotions  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cont’d  ,[object Object],[object Object]
Close of Session  ,[object Object]

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Session iii rural marketing

  • 1. SESSION – III XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR 4Ps in Rural Markets
  • 2.
  • 4.
  • 5. CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT Product Levels
  • 6. Cont’d Product Level Characteristics Example Rural Vs Urban Core Benefit Fundamental benefit/ services Entertainment Same Basic Product Benefit/service into tangibles Television Set Same Expected Product Attributes & conditions buyers normally expect Digital sound, flat screen Appearance of differences in expectations Augmented Product Exceeding customer expectations Battery Operated TV Pleasant surprise for rural customer Potential Product Encompassing all augmentations & transformations Jolly Startek TV Uniquely rural value proposition
  • 7.
  • 8. FMCG Consumption Trends Products Urban( 1000 HH) Rural ( 1000 HH) Toilet Soap 998 992 Washing Cake 980 950 Cooking Oil 968 952 Hair Oil/ Cream 897 787 Tea 876 758 Toothpaste 822 449 Washing Powder 819 576 Electric Bulb 723 394 Shampoo 663 352 Biscuits 579 314 Health Beverages 324 67 Source: National Council for Applied Economic Research, 2002
  • 9. Consumption Ranking Rank Rural Product Urban Product Rural HH Consumption grams / month 1 Toilet Soap Toilet Soap 268 2 Washing Powder Biscuits 950 3 Packaged Tea Washing Powder 268 4 Biscuits Packaged Tea 302 5 Detergent Cake Detergent Cake 893 Source: A.C Nielsen Retail Audit, MAT, July -2004 & ORG- MARG Retail Consumer Panel, 2001
  • 10.
  • 11.
  • 12.
  • 16.
  • 17.
  • 19.
  • 20. Levels of Distribution Level Partner Location 1 Company Depot/ C & FA National/ State level 2 Distributor/ Van Operator/ Super Stockist/ Rural Distributor District level 3 Sub Distributor/ retail Stockist/ sub stockist/star seller Tehsil HQ, towns and large villages 4 Wholesaler Feeder towns, large villages, haats 5 Retailer Villages, haats
  • 21.
  • 22. Promotion- Adaptations for Rural Markets Conventional Non- Conventional Personalised Television Haat and Mela Direct mailer Radio Folk Media( puppet and magic show) POS (demonstration, leaflet) Press Video Van Word of mouth Cinema Mandi Interpersonal communication Outdoor: Wall Painting, Hoarding Animator
  • 23.
  • 24.
  • 25.
  • 26.