1. RURAL MARKETING STRATEGIES

2. ProductPricePromotionPhysical

3. Marketing Mix Is a crucial element of any marketing plan as it offers marketers a mix of product, services and prices, utilizes a promotion mix of advertising, sales promotion, direct marketing and personal selling to reach the target customers through distribution of channels

4. Tools and Challenges The basic marketing mix tools 4Ps remains the same in both urban and rural markets, but the challenges of 4As varies 4Ps Tools4As Challenges ProductAcceptability PriceAffordability PlaceAvailability PromotionAwareness

5. Contd… Availability : availability of products Eg: FMCG Company HLL (Coca- Cola) has a strong distribution system, auto rickshaw, bullock carts. LG- company depot supplies, twice a week to distributors –has 45 area offices and 59 rural office Affordability : with low disposable income, products need to be affordable. Eg: Godrej – Cinthol, Fairglow. Videocon’s washer without dryer launched specifically for the rural market, Cost Rs 3000 /-

6. Contd… Acceptability : Gain acceptability for the product. Need to offer products that suit the rural market. LG Electronics – Sampoorna sold 100,000 sets in the first year. Coca cola provides low cost ice boxes, that is a tin box for new outlets and a thermo Cole box for seasonal outlets. Awareness : advertising media- television, movies, music. HLL relies on companies media Godrej for soap products

7. Product Strategies

8. PRODUCT STRATEGIES a company plan for marketing its products Product Strategies New Product Designs Sturdy Products Brand Name Small Unit Packing Low Priced Packing

9. Components of Product Personality 1.Core of the product Basic constituent associated features viz. Design, Quality, Size Color, Odors Performance Safety 2. Brand Name 3. The Package 5.Sales After Service 4. Warranty

10. 1. The core of the Product: Mysore Sandal Soap – combination of luxury & tradition 2. Brand name: Name, Term, Symbol or Design or a combination of them which is intended to identify goods and services of seller and to differentiate with competitors.

11. Types of Brands Types Examples 1. Nationality Branded Products Lifebuoy, Lux, Ponds, Nirma, Colgate 2. Regional Branded Products Nanjangud Tooth Powder in Karnataka, Ponvandu in TN 3. Locally manufactured Rice, Oil, Food grains, Jaggery & Unbranded products 4. Imitation products Lite boy (Life buoy), Polons (Ponds) Narima (Nirma), Friends & Lovely (Fair & Lovely) 5. Store / Distributors brandSVC Coffee, Bakery products, Mothi Bread etc.

12. 3. The Package: General group of activities in the planning of a product. These activities concentrate on formulating a design of the package and producing an appropriate and attractive container or wrapper for a product. 4. Product Warranty: An obligation of the producer and seller to stand behind the product and assure the buyer that he will derive certain services and satisfaction from the product. An assurance of the Quality, Service and Performance.

13. 5.Service after sales : For smooth maintenance and repairs at low charges as well as quick availability of spare parts and accessories at reasonable rates. Important selling point helping the customer to take a quick decision to purchase costly durable goods.

14. Issues to be resolved in Product plan Product line Product mix Packaging Labeling Branding Service after Sales

15. PRODUCT CONCEPTS & CLASSIFICATION 1.Based on tangibility:tangible, intangible 2.Based on purpose:consumption, production 3.Based on functional life :Consumables, Durables 4. Based on habits :Convenience goods Shopping goods, Specialty goods

16. PRODUCT CONCEPTS & CLASSIFICATION 5. Based on price &quality:Mass product, Premium product 6. Based on product development:Innovations, Imitations 7. Based on brand hierarchy level : Global Brand : Pepsi, Coke National brand : Godrej, Tata Regional brand : Sun TV Channel Local brands: surya masale, Joy chips Unbranded products: oil, food grains Commodities: Tamarind, cloves, fish

17. 1 Based on tangibility. Tangible goods -- products Intangible goods --services CharacteristicProductServices Tangibility Separability Variability Perish ability Yes Sometimes, customized Some products No Yes Examples: Product : Soft drinks, office furniture, houses etc, Services : Repairs, construction services, legal services

18. 2. Based on purpose of use PurposeTypeUserProducts Consumption Production Consumer goods Industrial/ agricultural goods Households Industries /poultries Toiletries, cosmetics, beverages, home appliances etc Raw materials, components, agricultural inputs & machinery, animal feeds etc

19. 3. Based on functional life TypeNature of useFunctional life period Examples Consumables Durables Onetime Lifetime Short Long Food & beverages, soft drinks Furniture, computers, cars, camera

20. 4. Based on habits : a. convenience b. shopping c. specialty GoodsProduct type Buyer envt. Buy frequency DecisionBuying place a. b. c. Consumable Durables Low Moderate High Frequent Occasion Once in life Simple Complex Paan shop, cooperative stores, fairs, provision store Fairs, haats, show rooms, chain stores Shops in towns,cities

21. Concept of Product strategy Long range competitive plan involving decisions on products, product line and product mix to make proper utilization of resources and achieve marketing goals

22. Significance Achieves product- market fit Encourages innovativeness Provides competitive edge Makes better use of resources

23. Scope Decisions at three levels LevelStrategy 1. Product mixWidth extension- new product line Length extension – new product items Depth extension – new product variants 2. Product lineStretching – upward, downward Line pruning –line modernization 3. Product item Quality, features, design, brand Augmentations

24. Contd… 2. Product line Line pruning : product lines lend to lengthen over time like rational grounds or emotional reasons. Both case dead wood will accumulate. It has to be taken out at periodical reviews. Pruning may be done when It is identified that dead wood is depressing profits It is found that the production capacity is limited and cannot handle all the existing products

25. Contd… Line Modernization When technological developments change the products This is to be considered when Timing: Conversion readiness from old to new Competitors moves Profitability levels Approach : when the change be total or a part

26. Contd… 3. Product Item  Core product development (need product relationships)  Tangible product development Quality- durability, capacity, efficiency, economy, reliability Features – rational, problem solving, fancy, emotional Design - arrangements of parts Style - appearance and function Packaging Branding  Augmented product development

27. Contd… Packaging Primary package : to hold the product Secondary package : to hold the primary package : cardboard box Shipping package : carry the products from one place to another

28. Contd… Three levels of appeal by packages LevelPurposeCharacteristicsDeterminants SensoryAttentionAttractive Distinctive Visibility Easy to identify (shapes, colors) EmotionalInterest desire Adoptability Compatibility Communicability Easy to carry Easy to use Easy to store (milk, tooth pastes, creams) RationalEvaluationInformative Interactive Preservative Economical Easy to know Easy to store Good to reuse Fair price (glass bottles )

29. Contd… Branding  Brand concept  Branding policy: To brand or not to brand Sponsorship Naming  Branding the need

30. Contd… Branding arguments for and against For :  Identify helps processing  Image gives competitive advantage  Personality convinces consumers  Equity enhances value Against  Investment- returns doubtful  Image and personality an emotional nonsense  Brand equity- sensible but not new

31. Contd… Brand sponsoring  Manufacturer brand  Distributor band Brand identity Name what  Each product to give brand name individuals with company name: Ponda dream flower talc individuals without company name: Cinthol, Lifebuoy  Family brand name: Raymonds - Raymonds for textiles and Park avenue for shirts, shoes  Associated brand name Usha - fans, sewing machine Name how?  Easy to use, understand, distinguish

32. Contd… Augmented Product : needs of consumers Components of an offer Product relatedService relatedChannel Quality Design style Features Packaging Brand image Ordering Deliver and credit Installation Customer tracking Repair & maintenance Expertise Performance Courtesy Atmosphere

33. Strategies for marketers Identity strategies  Commodity strategies vegetables, oil, steels  Branding strategies brook bond’s red label tea, LG Sampoorna Customer value strategies  Mass product strategies – Maharaja appliances Ltd, Rajdoot 223  Premium product strategies – Fair &Lovely, Surf Innovation strategies  Rural urban strategies - Bajar electricals, Appollo hospital servicing in rural  Special for rural – Nyle Shampoo, Titan watches

34. Strategies for marketers Quality strategies  Quality improvement strategies –TVS 50 48 cc to 49.9 cc  Spurious goods strategies – Lifebuoy-Love boy Packaging strategies – Affordability, usage, storability, small, combi packs Brand strategies  Brand extension strategies – New Cinthol  Multi band strategy – HLL Soaps- Lifebuoy, Lux  Co-branding strategy – IBM and Compaq buys Intel chip and advertise as ‘Intel’ inside  Brand image/ equity management – Onida, Lux

35. Class discussion Critically examine the product strategy of the two regional washing soap brands, in comparison to one local brand, in rural markets Use 4As for analysis Identify the success and failures of brands in general.

36. Class discussion Explain brand image strategies of any two companies operating in rural areas