Page 158 - DMGT509_RURAL MARKETING

Unit 8: Rural Product Strategy

(ii) Length Product mix length refers to the total no. of items the Co. carries within its products Notes
lines. Procter & Gamble typically carries many bands within each lines, for example, it
sells eleven laundry detergent, eight hand soap, six shampoo and four dishwashing
detergent.
(iii) Depth Product mix depth refers to the no. of versions, offered of each product in the line.
Thus Procter & gamble’s Crest Tooth Paste comes in three size and two formulation (paste
& Gel)

(iv) Consistency of product mix refers to how closely related the various product lines are in
end use, production requirements, distribution channels, or some other way.

8.8 Product Life Cycle Strategies in Rural Markets

Every living thing and those which are created by a living being has a life span. Entire life span
of the creation (Product) is divided into a number of stages - Introduction, Growth, Maturity and
Decline as in the case of human being - child, adolescent, adult and aged. The time span of the
product in each of these stages will differ from product to product depending on various factors.
Analysis of these stages of the product is technically known as “Product Life Cycle”. The present
paper is an attempt to analyze the product life cycle in the Rural Market.
For the purpose of analyzing the concept of product life cycle in rural market the rural market
segment is to be divided in to three viz., developed, developing and under developed rural
segments. This is because rural is not a single homogeneous market, it is scattered and a product
which is at its introduction stage in underdeveloped market may be at the growth stage in the
developing market and at the saturation stage in the developed market. This classification is
highly significant as the marketing manager can plan marketing strategy for each segment
depending on the stage of PLC. Many products that enter rural markets without serious planning
die out either soon after the introduction or during the growth stage, e.g. AIM tooth paste from
HLL or Ruf–n–Tuf ready to stitch Jeans. Only companies that focus on brand building and those
that continue to innovate constantly can sustain themselves in the rural markets.

Product Life Cycle – Some Cases in the Rural Market

A product is normally developed for urban market and then pushed to the rural market. Recently
companies have recognized the importance of rural market and started customizing products
for rural markets. Some examples are LG’s Television, Philip’s hand-wound free power radio
and Dabur’s Red Tooth Paste. It has also been observed that Product life cycle in the rural market
is often longer than it is in the urban market. All stages – of introduction, growth, maturity and
decline – last for longer periods in rural markets due to multiple challenges involved in the
distribution, communication and adoption of the product.

Product Life Cycle of Wheel

Introduction Stage: The Product was in the introduction stage from 1987 to 1994 and the company
was adopting various strategies to establish its product in the rural market.

1987: Wheel launched in 1987 against Nirma with the Slogan “Maine maangi thi safaai, aur tu ne
di haathon ki jalan” The term “Wheel” was not strategic; rather it was a matter of compulsion.
HUL wanted Wheel to be a stand alone business of its own to dominate the low price segment.

1988-1990: Wheel’s Marketing Strategies: Compared to other high end detergents low Price, low
urban focus, and attractiveness of package just sufficient to promote the product in the market,
mass media advt. was the lowest and door to door programme was used for promotion of the
product in the villages.

LOVELY PROFESSIONAL UNIVERSITY 153