Page 16 - DMGT509_RURAL MARKETING

Unit 1: Rural Marketing – An Introduction

Bajaj Auto has quietly launched the Boxer 150 in India. The Boxer BM150 is powered by a 150cc Notes
engine (no DTSi or the likes here) and tuned for more torque, rather then outright power. Priced
at 42,000/- (ex-showroom, Pune), the Boxer's only USP is its loading carrying capacity. All
drum brakes, electric start and an analog speedometer adorn this 'Bharat' bike. The Boxer is
designed for use and abuse in all kinds of terrain. The Boxer's 150 cc engine produces 12 PS of
power and 12.26 Nm of torque, almost 50% more than the standard 100 cc bikes. Bajaj claims that
the Boxer features a rugged frame, swing arm and chassis. The all metal body parts, twin spring
SNS suspension, bigger tyre and a heavy duty carrier ensure the Boxer is at home in most
terrains.

Figure 1.2: Boxer is Aimed at the Rural Market and is a Tractor on 2-wheels
according to Rajiv Bajaj

The differentiation in any or several of these areas needs to be highlighted for the customer to
take notice. Products have to be categorized as distinctive, affordable, showcasing buyers’ life
style as an intelligent and experienced buyer.
Companies need to plan marketing strategies all through the product life cycle, at the introductory
stage, at early growth, late growth, maturity and finally at the decline stage. In India most
products are in growth stage as the economy of the country is poised for growth with continuous
increase in its GDP and GNP. However, products such as VCR have reached the decline stage
because of the big increase in satellite channels available on the TV. Introductory stage gives big
profits for the first arrivals on the scene as with no competition skimming prices can be charged.
The selling power devolves around the channel members, as they are closer to the customers
than the new players. Product specifications are also in a fluid state waiting for total customer
acceptance. Companies, however, need to have a cautious approach as when others see large
profit margins, they too jump in the fray, creating competition. In growth stage competition
increases while the selling power starts shifting to the manufacturers from the channel members
because by this time the brand gets established and companies start having direct bonding with
the customers with their promotional plans. In the maturity stage, price wars start, brands sell
and promotions become commonplace. Some late entrants with little foothold in the market

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