RURAL

MARKETS AND
DECISIONS
RURAL
MARKETING
STRATEGIES
Product strategies in
Rural Markets :
■ Sturdy Products :
– Royal Enfield sells about 65% of two wheelers
in semi urban and rural areas
■ Designing Products :
– Nokia Phone, Voltas  Reffriegrator
■ Small Unit Packing :
– Ponds talcum Powder, Rasna, chik shampoo
■ Utility Products :
– Philips Radio, HMT Watches
Pricing Strategies
Distribution Strategies
Promotion Strategies
Marketing Mix in
Rural Markets
Segmentation
– Heterogeniety
■ Population size variances
■ Socio cultural differences
■ Infrastructural differences
■ Media exposure and reach
■ Literacy variations
■ Income levels
■ Family structure
– Differences in food habits
■ Milk, water
– Development Levels
■ Mosquito coils, batteries
– Variations in Climate
■ Ex: Dabur Chavan Prash , Deodarants
Basis of Segmentation

■ Geographic
■ Demographic
■ Psychographic
■ Behavioral
Degrees of Segmenting
■ Mass Marketing
– Considers all customers as homogenous
■ Ex: HUL : Surf (urban & Rural) | Nirma (Rural)
■ HUL  Wheel (Rural)
■ Segment Marketing
– Identifies customers as different groups
■ Niche Marketing
– Selective few groups
■ Micro Marketing
– Individuals or very small groups
■ Ex: Dabur Anmol Oil (Northen States)
Example: FMCG
Target
■ Evaluation - growth, size, accessibility
■ Selection
■ Coverage
– Undifferentiated Strategy - Same for Rural &
Urban
– Differentiated - Tractors/Fertilizers
– Concentrated
■ Single Segment - Lifebuoy Active, Hamam,
Medimix
■ Brooke Bond Case
Positioning

■ USP
– Visual Map
– Product attributes - Colgate Herbal
– Service differentiation - Reliance
– People - Aamir Khan
– Image
4 A’s of Rural Marketing
■ Availability:
– The first challenge is to ensure availability of products
and services. India‟s 627,000 villages spread over 3.2
million sq. km, given the poor state road; it is not easy
to reach 700 million rural Indians.
■ Affordability:
– The second challenge is to ensure affordability of the
products and services. With low disposable income
products need to be affordable to the rural
consumers. Some companies consider it by
introducing small unit packs, e.g. Godrej introduced
Fair glow in 50 gm packs.
■ Acceptability:
– The third challenge is to gain acceptability for the
products and services. Therefore there is a need to
offer products that suites the rural consumer needs and
customs. E.g. LG developed a customised TV for the
rural market and promoted „Sampoorna”.
■ Awareness:
– Events like fairs, festivals, haats etc. are to be used for
brand communication. Ideas like putting sticker on the
hand pumps, walls of the wells, tin palates on trees
surrounding the ponds etc. are some of the innovative
media used by soap companies like Lux, Lifeboy, Rin
and Wheel. The idea is to advertise at the time of
consumption.
Designing the
Communication Mix
Strategy**
■ Advertising
■ Sales promotion
■ Direct Marketing
■ Publicity
■ Personal Selling
Role of Central State and
other institutions in Rural
Marketing
IMC in Rural Marketing
■ Rural Communication has recently emerged as a key
concern for communicators of both profit-oriented
corporations exploring rural areas to expand
marketing their products, as also by those in social
service institutions trying to reach social (especially)
health related messages in rural, tribal and far-flung
areas in the countryside.
■ Media is of two types:
– (i) Mass Media, and (ii) Traditional Media.
– The utility of mass-media in rural
communications is enormous. However, non-
conventional media is often seen to be more
effective among the rural audience.
■ Effectiveness of the media to be used for rural
communication is important.
– Factors that affect media effectiveness are: (i)
Communicating using
non-conventional media
■ Communicating using non-conventional media is
effective in rural settings.
■ Wall Paintings: Wall paintings are an effective
way to communicate to rural consumers. Wall
paintings present an cost effective options but are
limited to creating only a visual impact as literacy
is low. Nirma makes extensive use of wall paintings.
■ Folk Theatre: These are mainly short and
rhythmic in form. The simple times help in
informing and educating the people in an informal
and interesting manner.
– Burrakatha, Veethi Natakah of Andhra, Bharai
of Gujarat, Tamasha, Soudha, Dashavatar of
Maharashtra are different types of folk theatre
prevalent in India. Brook
– Bond Lipton India Ltd. (BBLIL) used magicians
quite effectively for launch of ‘Kadak’ Chhap
Tea in Etawah district of U.P.
– Government of India uses folk theatre to sell a
wide variety of seeds and fertilizers as also for
its FamilyWelfare Campaigns, and for anti-AIDS
campaigns.
■ Banners placed on elephant parading through
main bazaars: Messages on camels, horses,
and elephants during exhibitions and fairs have
proved to be an effective medium
■ Puppetry: Puppetry creates interest and grasp the
attention of the rural audience. It is thei ndigenous
theatre of India. It has been the most popular form
of entertainment available to the rural people. It is
an inexpensive activity. The manipulator uses the
puppets as a medium to express and communicate
ideas, values and social messages. Life Insurance
Corporation of India (LIC) uses puppets to
educate rural masses about it’s insurance policies.
■ Processions, tableaus, floats, etc.:
Excitement-oriented activities such as
processions, tableaus, floats, etc., are common
place in rural markets, e.g., HLL dressing up a
propagandist as ‘Superman’ to demonstrate the
superwashing power of Rin
■ Contests to promote the products: Contests
involving products and the consumers
■ Audio-Visual Vans:
– important method to reach the rural audience
and are to be treated separately. This vehicle
goes to selected villages on market day. Each
van is festooned with as banner are painted in
gray colours. It uses display boards whenever it
stops to address the populace and it’s
repertoire includes audio- video, film playback
equipment, microphones and other
demonstration facilities
■ Stalls, hoardings and audio-visual publicity at
local fairs:
– Some of the points of contact with the
audience can be during fairs and festivals,
‘haats’, ‘mandis’, folk performance, local fairs,
and at other events at banks, post offices,
schools, and village wells
■ Point-of-purchase channels: This comprises a
series of audio-visual sites located in shops in rural
feeder towns. A typical installation consists of a
colour television, a video cassette recorder (VCR)
Effective Messages
■ The rural environment has a lot of influence on the receiver and
therefore he or she may not receive the intended message
■ Languages: The message has to be understood. This requires
communicating in a language that is meaningful to the consumer.
This suggests:
– – a message that is simple
– – the use of appropriate words
– Message should reflect culture and religion of
audience, taking into account religion, festivals and
local sentiments.
– Dabur distributed religious texts or calendars with
religious themes with their products.
– A soil conditioner used figures of mythological image
to market their product in rural areas.
■ Pictorial Presentation: The use of visuals as part of the
message is important in rural markets as literacy levels are low.
This includes:
– – use of pictures and colours
■ Message Content :
■ Rational Appeal
– Quality, economy, performance.
– Ex: Nylon cord breaking MRF Tyres . Pehelwan
Chaap
– Babool paisa wasool
– Tata Shaktee Sheet - Sardi Garmi ……
■ Emotional Appeal
– Stir up emotions. Ex: Kayam Churna
■ Moral Appeal
– Right & Wrong
■ Message form: The effective communication to rural
consumer should be:
– – utilitarian
– – narrative
– Rural consumers prefer utilitarian message that link
benefits that they can derive out of products.
Messages can also be narrative in form. Use of
storybased commercials is an example of narrative
messages.
■ Source of the Message: Credibility of the source is
critical for rural markets. Message source can be a
person communicating to rural consumers. Persons can
be (a) a likeable source: (b) a trustworthy source; (c) an
expert source.
– Likeable source: Can be film-star representing ‘son
of the soil’ image marketing a product.
– Trustworthy source: Can be friends, relatives or
neighbours having used/possessed the product
– Expert source: Are opinion leaders consulted by
rural buyers.
■ Context Association: Associations create interest, hold
Effectiveness of the
media
Haats
Mandis