Rural Product Strategy - CRM

8/4/2019 Rural Product Strategy - CRM

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Rural Product Strategy



Introduction



– A re-look from the rural

perspective

Product

Availability

Acceptability

Affordability

Awareness



va a

ty



or a

ity

With low disposable incomes products need to affordable to ruralconsumers.Most of them are daily wage earners.

Some companies addressed the problem by introducing small unit parks

50gm pack for

Rs 2

200ml cokebottle for Rs 9

A cheaper

substitute ofRASNA forvillagers at Rs5



ccepta

lityThere is a need to offerproducts that suit the rural

market.LG Electronics reaped richdividends by doing so.Launched a customized

television“

Sampoorna”

Coca Cola provides low costice-boxes as lack of electricityin rural areas



waren

essLarge parts are inaccessible toconventional media. Only 41% haveaccess to television.

Outing confined to local fairs andfestivals.Television viewing to state ownedchannel- Doordarshan.

HUL relies on its own companyorganized media.Godrej uses radio to reach people intheir own language.



• Toiletries,Cosmetics,foods andbeverages,footwear etc (Consumable goods)

• HLL,Dabur,Marico,Colgate-Palmolive,Nirma,CavinCare and Colgate are themajor players in FMCG

FMCG

• Durable goods includes products like home

appliances , automobiles , watches , furniture etc.• Usha,Bajaj,Philips,Titan,Onida,heroHonda,Mahindra & Mahindra are major playersof consumer durables .

ConsumerDurables• Goods used for farm activities such as

seeds,fertilizers,pesticides,insecticides andimplements.

• Rallis India , Monsanto , DCM Shriram , IFFCOare the major players in rural sector.Agri Goods

• Telecomms,Transport,Healthcare,banking,insurance and education.

• LIC , SBI , BSNL , ICICI are major players of

this segment.

Services



A Rural market is ready to develop after carefullysegmented to launch appropriate new products.Product development involves four stages :

• Idea generation• Concept testing• Product development and finally• Test marketing



ProcessAdoption is slow due to lack of awarenessabout the new products and resistance to

trying new product due to lack ofdemonstration.

The sarpanch , School Teacher , andSalaried people who get access to media

become the opinion leaders to thepotential buyers.



Product Life Cycleo Many products that enter rural markets without serious

planning die out soon.o The strategies remain same but customer

acceptance,innovations,price propsition and the natureof the product affect the demand.

o The decline of products in rural is slow; It hashastened sometimes due to technological advancement.

Product MixThe product mix in rural market is Simple , mostlyonly one product of a particular company registers itsavailability on rural shelves due to ;• limitations of investments in stocks,• slow movement and replenishment of stocks,• dominance of retailer in the rural marketExceptions- HUL, Dabur



PackagingPlays significant role as it is

associated with• Affordability• Ability To Recognize• Convenience Of Usage• Product AppealNeeds special focus becauseof

• Poor transport system• Difficulties of safe storage•

Poor facilities



Consideration While

Packaging



Packaging Aesthetics



Branding in Rural



ran u ng n

Rural India



Fake Brands



Market• Colour scheme on the

packaging material closelyresembles packaging of a

popular brand.• Eg. Shagun for Lifebuoy , Lalita

Amla for Dabur Amla.

• Package Color and Design isvery similar to the originalbrand.

• Names are cleverly and subtlymisspelled.

• Eg . Paracute forParachute.Poms for Ponds.

• Exact Replicas of the OriginalBrand.

• All the details mentioned in thewrapper are exactly the same.



Fake Brands Images



ES



There is a trade-off between Quality a customer perceives and acompany wants to communicate.A rural Indian customer always wants value for money with thesatisfactory perception made by them.

It is important to sell the concept of quality with propercommunication .Hence it is delivered in respected languages .



Villagers are constantly looking forward for new brandedproducts. What can one infer from these incidents, is the paradigmchanging and customer no longer price sensitive? Indian customerwas never price sensitive, but they want value for money.

Cultural values play major role in deciding what to buy.Moreover,rural people are emotional and sensitive.



Due to lack of awareness of media penetration , Companies should usethe heads or the Sarpanch for Print ads in their respective villages.

Penetrating product in deep down villages can be helpful if theproduct Is given a local languaged name ,Brand name being same.



Rikshaws , Cartwheels ,BiCycles ,Tricycles etc can be used to penetratefrom small town wholesale outlets to far flung villages.

Melas are places where villagers gather once a while for recreation andamusement.A good platform to introduce new products.Paintings of product with attractive bright colors .



Conclusion

Rural Product Strategy - CRM

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