6. Contd 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
7. Product Development Stages Stage Marketing Activities Idea
Generation
Searching for new product ideas
Idea Screening
Select the most promising ideas and drop those with only
limited potential. Study the needs and wants of potential buyers,
the environment and competition.
Concept Testing
Describe or show product concepts and their benefits to
potential customers and determine their responses. Identify and
drop poor product concepts. Gather useful information from product
development and its marketing personnel.
Business Analysis
Assess the products potential profitability and suitability for
the market-place. Examine the companys research, development, and
production capabilities. Ascertain the requirements and
availability of funds for development and commercialisation.
Project ROI.
Product Development
Determine technical and economic feasibility to produce the
product. Convert the product idea into a prototype. Develop and
test various marketing mix elements.
Test Marketing
Conduct market testing. Determine target customers Reactions.
Measure its sales performance. Identify Weaknesses in product or
marketing mix.
Commercialisation
Make necessary cash outlay for production facilities. Produce
and market the product in the target market and effectively
communicate its benefits.
Packaging material, size, convenience and aesthetics
Example: Chik Sampoo
12. Corporate Responses to Fakes
Look-alikes- Spell-alikes & Duplicates
Prices range from MRP to 60 % of MRP
Margins range from 60 % to 300 %
Legal action awareness programmes New Package Development
13. Fakes: Some Examples
14. Contd
15. Pricing
16. Issues in Pricing
Internal & external factors
Selecting pricing methods
Pricing adaptations
Low price points Simple packaging utility around packaging
material
Highlighting value
17. Price Adaptations ( Indicative)
Product sharing services, Example: Tractors
Product Bundle pricing, Example: HUL Operation Bharat
Free gifts may sometimes not work in rural areas
Special event pricing- Hero Honda Rs. 500 campaign
18. Colgate- Cibaca
19. Place- Rural Distribution Challenges
Large number of small markets
Dispersed population and trade
Poor connectivity
Low availability of suitable dealers
Inadequate banking/ credit facilities
Poor product display and visibility
Poor communication of offers and schemes
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
21. Distribution Adaption( Indicative)
Hub and Spoke Model, Example: Coca Cola
Use of Affinity groups, Example: Project Shakti
Haat Activation, Example: Colgate
Syndicated distribution, Example: Cavin Care &
Amrutanjan
Use of marketing co-operatives, Example: Warna Bazaar in Rural
Areas
Mobile traders, Example: FMCG companies
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
23. Melas & Haats Melas Haat
25,000 melas
Companies can concentrate on the top 100 melas
Pushkar Mela in Rajasthan
Organised by the state veterinary department
Product sales, promotion, demonstration and database
generation
Cultural activities and rural sports
Periodic markets located in larger villages(> 40,000)
10 50 villages are serviced
Sunday markets are most popular
Average number of outlets is 315 and average daily sales is
about Rs 2 lakhs