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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




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