Page 167 - DMGT509_RURAL MARKETING
P. 167
Rural Marketing
Notes This has prompted FMCG players to devise ways to act on units that manufacture these products.
Emami, for instance, has a separate cell headed by an ex-assistant commissioner of police, whose
job is to investigate leads provided by the in-house sales force on places where counterfeit
products of its popular brands are made.
Once these are identified, the team and local authorities raid these factories. “On an average, we
do at least two to three raids per month,” says Aditya Agarwal, director.
Figure 8.7: Some Common Fakes Found in Rural Market
Strategies for Counter Fakes for Chocolate/Toffee Companies in Rural Marketing
Product: Without compromising on quality, the leading chocolate companies can reduce their
size to match the rural demand.
Pricing: As the rural consumers are bothered about economy pricing the leading chocolate
companies can follow the strategy of “penetration pricing”.
Promotion: The traditional method of promotions has to be changed by the MNCs and National
Companies in attacking the fake products. A portion of the ad budget can be allocated for
retailers’ margin. Through ad campaigns, the companies can also create awareness among
consumers regarding the evils of fake products.
Physical Distribution: Sales professionals of the local region who have familiarity in the local
(regional) language can be appointed to look after the sales of rural areas, so that they can easily
converse with the retailers and can build goodwill.
8.14 Packaging for Rural Markets
Lower prices/smaller packaging has been the most common strategies adopted by FMCG
companies to penetrate rural markets. HLL initiated Operation Bharat to tap rural market by
rolling out low priced sample packets of its toothpaste, fairness cream, shampoo, cream and
other products. Similarly LPG companies have introduced small sized cylinders ensuring that
price remains in the affordable range for its rural consumers. When developing products in any
category, marketers must identify the typical rural specific needs. Urban products cannot be
dumped into rural markets without modifications. The rural audience better receives tailor-
made products as the consumers feel empowered and tend to identify with the offering. For
instance, shampoos or soaps with distinctive, strong rose or jasmine perfumes are very with the
rural women in South India. The urban women do not identify as strongly with these perfumes.
Packaging Material
Refills/Reusable Packaging: The refill packs benefits the consumers in terms of price. Such
measures can have significant impact too, since the price can be reduced to the advantage of
162 LOVELY PROFESSIONAL UNIVERSITY