Rural Marketing

1. SESSION – III XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWAR 4Ps in Rural Markets

3. Cont’d

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

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

13. Fakes: Some Examples

14. Cont’d

15. Pricing

18. Colgate- Cibaca

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

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