Page 172 - DMGT509_RURAL MARKETING

Unit 8: Rural Product Strategy

the traditional norm of brushing teeth in villages in form of twigs of Neem with its Notes
toothpaste.
While creating a Brand, the company needs to consider some of the following aspects:

 For a rural customer, a branded product is bigger investment than their urban
counterparts. They expect value for money- hence the company should try to exceed
their perceived expectations in quality of Product.
 The biggest influencing factors of Advertisement for Rural consumers are often:
Word of Mouth, Advice of retailer/distributor, Hoardings and Road-shows, TV and
Radio Ads. Depending on product and consumer demographics, this may vary- but
company should try to achieve maximum effective coverage through this mediums.

 Like in case of Shampoos, companies should try to make their products available at
affordable rates or sizes to the rural consumers. E.g.: Chhota Coke, Single use products
like Razors.
 For consumer durables, Aesthetics, warranties and recommendations of Shopkeeper
plays a huge role on consumer decisions.

 Rural households are prone to me more swayed by Brand Ambassadors like Amitabh
Bachchan or Sachin Tendulkar compared to urban households.
 While positioning a product, one has to try to use local beliefs, culture or traditions
to one’s advantage or at least special attention should be given that it is not in
conflict with them.

Thus, while a company might face number of obstacles in creating a successful brand in
rural market, the benefits it will receive in long term will often outweigh the efforts. Also,
one has to take care that after Branding, availability of the product and satisfaction of
consumers are next important steps it fulfils. The Brand Creation in Rural India for most
companies- but especially FMCG will determine where they will stand in next 5 years.
After all, in immortal words of David F. D’Alessandro:
“A business based on brand is, very simply, a business primed for success”

Question
Analyse the case and discuss the case facts.

Source: http://www.mbaskool.com/business-articles/marketing/910-branding-in-rural-india-the-rules-
of-marketing.html

8.16 Summary

 The product concept proposes that consumers will prefer products that have better quality,
performance and features as opposed to a normal product.
 In the 1960’s, the economist Philip Kotler changed the perception of marketing.
 Kotler’s model provides a tool to assess how the organisation and their customers view
their relationship and which aspects create value.
 The Product Life Cycle (PLC) is based upon the biological life cycle.
 Products become more profitable and companies form alliances, joint ventures and take
each other over.

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