Page 90 - DMGT509_RURAL MARKETING

Unit 4: Rural Consumer Behaviour

4.8 Role Play Module Notes

The company CEO discusses product planning with his team.
CEO: “We are interested in starting rural marketing and hence would like to know from you
regarding the suitability of our detergent powder Sirf. What do you have to say?”
Marketing Director: “Since we enjoy a good market share in the urban markets, I am sure the
rural customers must have heard about our Sirf. However, I am not confident that the rural
buyers can afford our Sirf.”
Finance Director: “Sir, may be the marketing director is right, but there is no way we can even
think of reducing the product price. As you are fully aware our margins have been totally
eroded since the competitors introduced the Blue band in the market.”

HR Director: “My cousin who lives in the nearby village of Shapur is using the Blue Band and the
competitors have already gone into the village markets.”
CEO: “See if a new comer can do it why cannot we do the same or even better? You need to look
at the price structure, especially the packaging element and the transportation costs. Find out
how the Blue band is doing in these two areas.”
Marketing Director: “Sir, they are using low cost but attractive cardboard box for packing and
they are using their contract carriers. If we also hire carriers on hire and plan a low cost but
attractive package we should get a good market share even though we are starting a little later
than our major competitors.”
CEO: “This time I will accept your suggestions and I am giving you the green signal. In future,
please be alert to market opportunities to take advantage of the same, before competition does it.
In other words please be proactive rather than remain in the reactive mode to competitive action.”
The meeting ended on the decision taken by the CEO.

Plan a similar dialogue that focuses on the point of entry in the rural markets, with regards to
product selection.



Case Study Empowering Rural India

ndia’s President has shown his anxiety as well as satisfaction on the developmental
activities connected with the country’s rural development. Given below is what he
Ihad to say on the various pertinent issues.
The country is facing immense growth in the economic areas and foreign exchange reserves.
With reduction in inflation rates, India is being recognised as a technically competent
country. It has the energy of 540 million youth, 20 million NRIs, and the interest of
developed countries in investing in Indian engineers and scientists and our research
laboratories. The President wants scheme that would bridge the urban rural divide and
these schemes have been designated PURA (putting rural on equal footing as urban India).

The government has planned growth at the rate of 7-8 percent annually to increase the
welfare of farmers, workers with entrepreneurs and engineers going full steam for progress.
He believes that the time has come to bridge the urban-rural divide. The President wants
to empower rural India. President’s approach is divided in five parts:
Contd...

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