Page 316 - DMGT509_RURAL MARKETING

Unit 16: Marketing in Small Towns

Notes
Example: In the early 1960’s Volkswagen was the leader in small car sales. Until that
time most American automobiles had been “small tanks” with fins and lots of chrome. Ford’s
challenger to Volkswagen had been the Ford Falcon. Ford was concerned because Falcon sales
had begun to decline. Ford could have assumed that customers just didn’t want small American
cars. Two other American manufacturers were experiencing the same kind of sales decline.
Ford turned to market research and found some surprising facts. While Falcon sales were on the
decline, young adults were requesting sport options such as bucket seats and special interiors.
There was a marked increase in the sales of these options. So market research led a young Ford
engineer to design and introduce, in 1965, ... the Ford Mustang. This car crushed all existing sales
records up to that time. Who was that young engineer who headed up the Mustang project? Lee
Iacocca.

Example: McDonalds. What would I do for bad marketing examples if it wasn’t for these
guys? Do any of the following ring a bell? The McLean burger, salad bar, McDLT, The Arch
Deluxe? All were dismal failures. I can’t begin to guess what types of market research they were
using.

McDonalds market is kids...period! If the kids come so will their parents. They have spent the
past 40 years establishing a kids market. Playgrounds out front. Disney movie promotions.
Happy Meals with toys. The list goes on and on.

The last major success for this company was the Egg McMuffin breakfast sandwich and possibly
the McRib in some areas. Compare McDonald’s marketing to Wendy’s. No playgrounds at
Wendy’s. No kids in Wendy’s commercials (rarely anyway). Adult fare at low prices. Wendy’s
has successfully identified its’ market (through market research) and is successfully capitalizing
on it.

Canon Image Express in Small Towns

Figure 16.2: Image Express Campaign helped canon to reach out its
Customers in Small Towns

Canon India Pvt. Ltd, India's No 1. Complete Digital Imaging Company rolled out the Canon's
Image Express from Ahmedabad. This yearlong mobile campaign will further leverage Canon's
brand image in small towns. The caravan had stationed in Ahmedabad for 3 days from 23rd
April to 25th April 2010. Using two caravans and 2800 square feet of floating showroom space,
the Image Express will display products like cameras, camcorders, photo printers, inkjet and
laser printers, scanners, projectors etc. The company will spend about 10 crores on this unique
campaign.
It will cover 16 states and 38 cities under this project. This is yet another strategic, innovative
initiative to reach out to the tier 2 and 3 markets which has been Canon's focus to garner greater

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