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PRODUCT STRATEGY

Marketers can penetrate rural market by designing

innovative roducts

o LG s Sampoorna TV which facilitated on screen

display in regional languages like Hindi, Bengali, etc.o LGs washing machine with double capacity in Rural

areas (for joint families) and a memory back up to

a ress t e requent e ectr c ty rea owns.o Philips India launched FREE POWER RADIO, which

.

winding. No electricity or battery required.

Chocobix, not chocolates which are expensive and

unaffordable.

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Philips Free Power Radio

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Eveready Plastic Torches not successful in Rural

because Rural consumers preferred brass torches

for resale value of brass as scrap.Rural markets product should be

o Appropriate for the rural environment

o Simple to operateo Visually identifiable

o

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RURAL PRODUCT CLASSIFICATION

Fast Moving Consumer Goods (FMCG)

onsumer ura es

Servicesgr cu ura goo s

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SERVICES

Healthcare, telecommunication, informationcommunication technology (ICT), banking, insurance and

e uca on.

LIC, SBI, Bharat Sanchar Nigam, Airtel, ITC E choupal,,

AGRICULTURAL GOODS Seeds, Fertilisers, Pesticides, Insecticides and implements

(tractors, tillers, threshers, harvesters, pump sets)

Animal feeds, Dairy, Poultry and Fishery equipments.

Major Players Rallis India, Monsanto, DCM, Bayer,

,

Mahindra & Mahindra, Tractors and Farm Equipment

, .

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PRODUCT DECISIONS AND

Product decisions are taken at three levels

o Product Line Decisions

Strate ies to be also made at

o The level of Product Lifecycle.

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INDIVIDUAL PRODUCT DECISIONS

consumers expectations related to durability,

, .

o Important to find out how Rural consumers evaluate

o A Rural consumer thinks that a heavy watch has

better quality, quality of cement is known by its bitter

taste, tractors quality by the sound of the engine.FEATURES

o Adding of additional features based on Customer

value vs. Company cost.o o n eree as a e a power s eer ng o e ow

35 hp tractors to provide efficiency and

.

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DESIGN AND STYLE

DESIGN AND STYLE

o Design includes all features that contribute to a

producto One should look at the Rural environment where

the product is to be used.

Two handles needed for a Pressure CookerHUL covers dish wash bar with a plastic coating below.

Intel PC can handle the heat and dust

o Max Gas

o Godrej Chotu Kool

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A company needs to create an appropriate product

mix for Rural markets.o sua y one pro uc o a par cu ar company

available.

than one product in their rural product basket.

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PLC in Rural areas is longer than in the Urban

areas.ac s age s onger ecause o c a enges n

distribution, communication and adoption of product.

ura mar e s no omogeneouso PLC stage for a product may be different in different.

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PRODUCT BRANDING IN RURAL AREAS

Brand association in Rural Areas is mainly with colours,numbers and visuals, not necessarily with the name of a brand.

Colours

o Lal Dant Manjan

o Lal Sabun Lifebuo

Visuals

o Ghari Detergent

o Rath Vanas ati

o Red Battery (Eveready)

Numbers

o Wagh Bakri Tea

o 3 Roses Tea

.

o 555 detergent bar

o 502 Pataka Chai

coil

o Cycle Agarbati

o Brooke Bond A1 Karak

Chai

.

have low brand awareness.

Paanch Rupaye Waali Chai Dena .

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Wagh Bakri Tea

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BUILDING BRANDS IN RURAL AREAS

ran names raw assoc a on w co our, v sua ornumeric association.

o rma an o ga e are nown y e r names

o Sampoorna (LG TV) cuts across regional linguistic

.

o Ajanta (toothpaste) and Bhoomiputra (tractor) were

chosen for the same reason.

Brand Identityo Tata Shakti Galvanised Corrugated Sheets

o Shree Ultra Jung Rodhak

Building a Brand Imageo Mahindra Bhoomiputra and Sarpanch Series of

tractors.

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BRAND LOYALTY AND BRAND STICKINESS

ura peop e more com or a e w r e an es e ran s.Companies need to

o Educate rural consumers

o Develop interest through interactive communication

o Encourage their desire through own/new products

.

Brand Stickiness - Early Mover Advantage

o If a New brand gives satisfaction to the first user, because of

wor o mou many s ar us ng e same ran .

o Brand stickiness low in low involvement products like toilet soaps

o High in case of Chyawanprash, skin creams, hair oil and shaving

creams.

Companies to understand regional preferences

o Kala Ghoda in Rajasthan

o Local spices added to gain local acceptance.

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FAKE BRANDS

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FAKE BRANDS

Look Alikes: Colour Schemes and packaging are

. .

, , ,

Lonely, Likeboy.

Duplicates: Exact replicas of original brands.

Strategies used:

o Change in Packaging.o Getting the counterfeits by salesman.

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PACKAGING FOR RURAL MARKETS

Packaging in Rural areas needs a special focus because of

o Difficulties of safe storage (rats, moisture, heat, rainwater)

o Poor facilities (erratic power supply, leading to poor cold storagefacilities for food products).

A product for Rural market should

o Have a lon er shelf life than roducts for urban markets

o Able to withstand extreme weather conditionso Able to withstand jerky and sudden movements on dusty roads.

Packaging Material

o Tetra packso Polythene and Plastics

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PACKAGING FOR RURAL MARKETS

Pack Size and Convenienceo Sachet Revolution

Velvet Sham oo for Rs.1/- in late 1970s

Chik Shampoo

Strategy of small packs used by

- .

o Coca Cola

o Godrej Cinthol, Fairglow and Godrej No.1 (Rs.4 to Rs.5)

o Maggie Noodles (Rs. 2/- and Rs. 4/-)o Glaxo SmithKlines ( Horlicks Asha 40% less price)

. -

Convenience

o Col ate with a sachet with ca .o Marico with Parachute (Rs.1/- sachet).

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PACKAGING FOR RURAL MARKETS

Packaging Aestheticso Rural consumer appreciate bright colours

e uoy s re co our soap

Britannia Tiger symbol

Rin Lighting boltTexla

grey and black cabinet TV sets low sales

e ow an r g re se s, rama c ncrease n sa es

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PRODUCT WARRANTY AND AFTER

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PRODUCT WARRANTY AND AFTER

For high value durables, warranty is important for

.

Polar Fans 7 year warranty increase in market

Tractor, motorcycle and auto component companies

o Free check up, spares like oil filters supplied at lowcost

Usage of mobile service vans

Service centres in rural areaso Godrej service centres in rural areas with a police

station.

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NEW PRODUCT DEVELOPMENT (NPD)

Four Stages of NPD

o Concept Testing

o Product Developmento Market Testing

Idea Generation

o Rural Immersion (Dupont, Godrej)Concept Testing

o Changes from place to place

o UNICEF dry toilets accepted in water scarce

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o Frugal Engineering Maximising value to customer

.

o Tata NanoMore storage space instead of radio, one wiper, one rear

view mirror, un adjustable seats.

Godrej ChotuKool Portable refrigerator, size of a small

Nokia Mainly for making calls.

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THANK YOU

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