Product Rural

PRODUCT
Acceptability
 Challenge: to gain acceptability for the product or

service
 Strategies:
 Offer products or services that suit the rural market
 Easy to understand
Contd..
 Because of the lack of electricity and refrigerators in the rural

areas, Coca-Cola provides low-cost ice boxes — a tin box for
new outlets and thermocol box for seasonal outlets.
 HDFC tied up with non-governmental organizations and

offered reasonably-priced policies in the nature of group
insurance covers.
 LG- developed customized TV called SAMPOORNA.

The Rural Market Window
Company Products What they are doing
Bajaj Home Pricing basic models closer to
Electronics Appliances products made by small scale
sector
Electrolux Freez, Test marketing urban models in
Washing Rural Punjab
machines
Eveready Batteries New campaign for white batteries,
India increasing van coverage
Hero Honda Motorcycles, Distributing by using sub dealers

Motors Mopeds in villages
HLL Personal Door to door selling to penetrate
products, villages
Detergents
Maharaja Home Starting dedicated distribution
appliances channel for low end appliances
Marico Hair oil Selling low price sachet

Industries
Titan Watches Launching pilot project for low

priced models
United Pesticides Targeting farmers, hiring
phosphor advertising agency for campaign
us
Videocon Consumer Pushing walkmans into markets
durables
Classification of Product
Goods Product Buyer Buy Buy Buying

type involve- frequency decision place
ment evaluation
1. Consuma- Low Frequent Simple Pan Shop,
Convenience bles Kirana
Goods Shop,
Cooperative
stores,
Fairs,
mandis,
Melas etc.
Classification of Product
Goods Product Buyer Buy Buy Buying

type involve- frequency decision place
ment evaluation
2. Durables Moderate Occasional Complex Fairs, hats,

Shopping Mandis,
Goods Show
Rooms in
semi urban
3. Durables High Once in life Complex Shops in

Specialty town and
goods cities
Significance of product strategy
1. Achieves product market fit
2. Encourages innovativeness
3. Provides competitive edge
4. Makes better use of resources

New product
Cadbury launched CHOCOBIX a chocolate flavored biscuit,
based on the consumer insight that rural mothers opt for
the more affordable biscuits rather than the more expensive
Chocolate bars for their children
Eveready industries found that plastic torches response in

very good in urban not in rural bcoz farmers preferred
heavy brass torches such as “Jeeven sathi”bcoz of
salvage value.
HPCL- 5 kg Gas Cylinder
Because new connection cost and refilling cost is very high,
so HPCL introduced 5 kg LPG cylinder in rural India
Product strategy for rural market
1. Identity Strategy
2. Customer Value Strategy
3. Innovation strategy
4. Quality Strategy
5. Packaging Strategy
6. Brand Strategy
1. Identity Strategy
1. Commodity Strategy- Unbranded

Ex.- 75 % loose coconut oil consumed in Rural India
2. Branding Strategy- giving brand name

Ex- Castrol Branded lubricants- It is targeting no
conventional outlets like automobiles and mechanical
shops and building awareness
1. Mass product Strategy-

Ex.- Bonus washing machine of Maharja Home appliances
cost Rs. 2990/- only
Ex.- TATA Agni Tea- low priced tea Rs. 130/- per kg
Ex.- Escorts launched Rajdoot 223

2. Premium product Strategy-

Ex.- Fair n lovely, Surf and Ariel detergent, Pantene
Shampoo, Denim talcum powder
Ex.- Toyota Kirloskar Motor Ltd. has launches “QUAILS” a

multipurpose vehicles targeted to urban and semi urban
market
3. Innovation Strategy
1. Rural urban Common Strategy-
1. Sampoorna of LG sold in Rural as well as urban
2. Telecom Services Same package in rural and urban
3. GE countrywide services
4. Electrolux is test marketing urban models of Freeze and

washing machines in rural Punjab
3. Innovation Strategy
2. Special for Rual
1. Rural Transporter- like Escorts, M&M
2. Nyle Shampoo- know as green color shampoo in rural market
3. Hero Cycles
4. Kissan Credit cards and other financial scheme for farmers

4. Quality Strategy
1. Quality improvement strategy
Ex.- From TVS- 50 (48 cc engine) to TVS-50 XL (53.3 cc engine)

4. Quality Strategy
2. Spurious goods strategy (Copy cats )

Marketing Strategy
1. Product resemblances
a) Brand :
Loveboy- Lifebuoy
Nirbha- Nirma
Teta- Tata
Kurmure- kurkure
Pearl G- Parle G
b) Package: same packaging, color
c) Quality
4. Quality Strategy
2. Spurious goods strategy (Copy cats )

Marketing Strategy
2. Low Prices :
3. Silent promotion:
4. Limited distribution
5 . Packaging Strategy
1. Small packs
 Affordability
 Usage: heavy usage product in larger packs and light usage
in small packs
 Storability
 Benefits to retailer
 Display
2.Combi packs
 Ex. Colgate- Toothbrush with toothpaste

 Vim dish wash bar with scrubber
 Red label tea with herbal tea
3. See-through packs (transparent)
Ex.
 Colgate Palmolive
 Nyle shampoo
 Ayur shampoo
 Coconut oil
 Hair n care
 Almond oil
6. Brand Strategy
1. Brand extension
Classification of brand extension
Related Unrelated
Category Related Image Related

1. Brand and Category
Related
SURF SURF EXCEL
INTERNATIONAL
LUX
LUX
COLGATE CREAM COLGATE GEL

1. Brand and Category
Related
VIM POWDER VIMBAR
NIRMA POWDER NIRMA CAKE
COLGATE CREAM COLGATE GEL

2. Brand and Image Related
Close up Toothpaste Close up Toothbrush
Amul Milk Amul Cheese
Dettol Antiseptic liquid Dettol Soap
Lakme Nail polish Lakme Moisturizers
Britania Biscuits Britania Bread
Keo Karpin hair oil Keo Karpin Baby oil

3. Brand Unrelated
There is no relationship except the brand name
TATA Steel TATA Salt
Godrej Almirahs Godrej Hairdye
Reliance Infocom Reliance Retail
JK Tyers JK Cement
6. Brand Strategy
2. Protecting Brand Identity
Brand names depicting numbers of animals or symbols like-
555 soap
Monkey brand toothpowder
Gemini Tea (with elephant)
Chetah light matches
Sheru beedi
Tiger Mark cigarettes
3 Roses Tea
Tortoise Mosquito Coil etc.
After Sales Services and Product
Warranty
 Polar Fans offers 7 year warranty
 Tractor servicing- organizes service camps
 Videocon- company mechanics go twice in a
week to village, Videocon employs 1800
engineers and mechanics for this purpose
 Exide – launched Project Kisan Campaign to
give after sales services for Battery .
 Godrej- set up service centers
Hindustan Petroleum’s Rasoi
Ghar
 Business model worked for urban can not
replicate in rural
 Supplying gas in mini cylinders is
uneconomical for gas company
 Other hand rural consumers lacked the
financial capability to pay for large cylinders
 HPCL innovated Rasoi Ghar concept in 2002
 Charge Rs. 6 for one hour
 Now it is operating in over 1500 villages
Hindustan Petroleum’s Rasoi
Ghar
“MAX VIJAY” From Max New York
Life Insurance
 For consumer with cyclical income flows
 Targeted lower income group
 Initial payment of Rs. 10000 followed up with
minimum premium amounts as low as rs.10,
covers the policy holders against any eventuality
 If customer relocates to a different place in
search of work, he can still make payments at
collection centers such as local Kirana stores.
 Max Vijay is available in three premium payment
options – Max Vijay Rajat, Max Vijay Swarna
and Max Vijay Heera
“MAX VIJAY” From Max New York
Life Insurance
VILLGRO Rural Retail Chain
 Started in Jan 2001 in Tamil Nadu

 Objective is enhanced livelihood assets of
rural people through adoption and innovation
 Focuses on 4 sectors Agriculture, Dairy,
Energy and Water and major products
include Oorja stoves, organic fertilizers like
Super Hume, Bio Phos, Bio Potash etc.
Operation Bharat by HLL in 1997
 Increased Brand awareness in rural areas

 Combo pack of Rs. 5, 10, 15, 20 each
compromising clinic Plus, Pepsodent, Fair n
lovely and Pond’s Talc in different sizes.

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PRODUCT

 Challenge: to gain acceptability for the product or

 Offer products or services that suit the rural market

 Because of the lack of electricity and refrigerators in the rural

 HDFC tied up with non-governmental organizations and

 LG- developed customized TV called SAMPOORNA.

Hero Honda Motorcycles, Distributing by using sub dealers

Marico Hair oil Selling low price sachet

Titan Watches Launching pilot project for low

Goods Product Buyer Buy Buy Buying

Goods Product Buyer Buy Buy Buying

2. Durables Moderate Occasional Complex Fairs, hats,

3. Durables High Once in life Complex Shops in

1. Achieves product market fit

3. Provides competitive edge

4. Makes better use of resources

Eveready industries found that plastic torches response in

2. Customer Value Strategy

1. Commodity Strategy- Unbranded

2. Branding Strategy- giving brand name

1. Mass product Strategy-

Ex.- Escorts launched Rajdoot 223

2. Premium product Strategy-

Ex.- Toyota Kirloskar Motor Ltd. has launches “QUAILS” a

1. Rural urban Common Strategy-

1. Sampoorna of LG sold in Rural as well as urban

2. Telecom Services Same package in rural and urban

4. Electrolux is test marketing urban models of Freeze and

2. Special for Rual

1. Rural Transporter- like Escorts, M&M

2. Nyle Shampoo- know as green color shampoo in rural market

4. Kissan Credit cards and other financial scheme for farmers

1. Quality improvement strategy

Ex.- From TVS- 50 (48 cc engine) to TVS-50 XL (53.3 cc engine)

2. Spurious goods strategy (Copy cats )

2. Spurious goods strategy (Copy cats )

 Ex. Colgate- Toothbrush with toothpaste

3. See-through packs (transparent)

Classification of brand extension

Category Related Image Related

SURF SURF EXCEL

COLGATE CREAM COLGATE GEL

VIM POWDER VIMBAR

NIRMA POWDER NIRMA CAKE

COLGATE CREAM COLGATE GEL

Close up Toothpaste Close up Toothbrush

Amul Milk Amul Cheese

Dettol Antiseptic liquid Dettol Soap

Lakme Nail polish Lakme Moisturizers

Britania Biscuits Britania Bread

Keo Karpin hair oil Keo Karpin Baby oil

There is no relationship except the brand name

TATA Steel TATA Salt

Godrej Almirahs Godrej Hairdye

Reliance Infocom Reliance Retail

2. Protecting Brand Identity

Brand names depicting numbers of animals or symbols like-

 Started in Jan 2001 in Tamil Nadu

 Increased Brand awareness in rural areas