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Unit 8: Rural Product Strategy

Growth Notes

Competitors are attracted into the market with very similar offerings. Products become more
profitable and companies form alliances, joint ventures and take each other over. Advertising
spend is high and focuses upon building brand. Market share tends to stabilise.
Maturity

Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at
a decreasing rate and then stabilise. Producers attempt to differentiate products and brands are
key to this. Price wars and intense competition occur. At this point the market reaches saturation.
Producers begin to leave the market due to poor margins. Promotion becomes more widespread
and use a greater variety of media.
Decline

At this point there is a downturn in the market. For example more innovative products are
introduced or consumer tastes have changed. There is intense price-cutting and many more
products are withdrawn from the market. Profits can be improved by reducing marketing spend
and cost cutting.
Figure 8.2: Product Life Cycle

SALES

Introduction Growth Maturity Decline Withdrawal
TIME

8.4 Rural Product Classification

Rural Products can be classified into four broad categories: Fast moving consumer Goods,
Consumer Durables, Services and Agricultural Goods.

Figure 8.3: Nokia Introduces Nokia 2323 Classic and Nokia 2330 Classic as its first
Handsets for the Emerging and Rural Markets

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