Download Product Strategies

RURAL MARKETING STRATEGIES
RURAL MARKETING STRATEGIES
Product
Price
Promotion
Physical
Marketing Mix
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Is a crucial element of any marketing plan as
it offers marketers a mix of product, services
and prices, utilizes a promotion mix of
advertising, sales promotion, direct marketing
and personal selling to reach the target
customers through distribution of channels
Tools and Challenges
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The basic marketing mix tools 4Ps remains the
same in both urban and rural markets, but the
challenges of 4As varies
4Ps Tools
Product
Price
Place
Promotion
4As Challenges
Acceptability
Affordability
Availability
Awareness
Contd…
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Availability : availability of products
Eg: FMCG Company HLL (Coca- Cola) has a strong distribution
system, auto rickshaw, bullock carts. LG- company depot supplies,
twice a week to distributors –has 45 area offices and 59 rural office
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Affordability : with low disposable income ,
products need to be affordable.
Eg: Godrej – Cinthol, Fairglow. Videocon’s washer without dryer
launched specifically for the rural market, Cost Rs 3000/-
Contd…
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Acceptability : Gain acceptability for the product.
Need to offer products that suit the rural market.
LG Electronics – Sampoorna sold 100,000 sets in the first year.
Coca cola provides low cost ice boxes, that is a tin box for new
outlets and a thermo Cole box for seasonal outlets.
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Awareness : advertising media- television,
movies, music. HLL relies on companies media Godrej for
soap products
Product Strategies
PRODUCT STRATEGIES
a company plan for marketing its products
Product Strategies
•New Product Designs
•Sturdy Products
•Brand Name
•Small Unit Packing
•Low Priced Packing
Components of Product Personality
1.
Core of the product
Basic constituent
associated features viz.
Design, Quality, Size
Color, Odors
Performance Safety
1. The core of the Product: Mysore Sandal Soap –
combination of luxury & tradition
2. Brand name: Name, Term, Symbol or Design or a
combination of them which is intended to identify goods
and services of seller and to differentiate with
competitors.
Types of Brands
Types
Examples
1. Nationality Branded Products
Lifebuoy, Lux, Ponds, Nirma,
Colgate
2. Regional Branded Products
Nanjangud Tooth Powder in
Karnataka, Ponvandu in TN
3. Locally manufactured
Rice, Oil, Food grains, Jaggery
& Unbranded products
4. Imitation products
Lite boy (Life buoy), Polons
(Ponds) Narima (Nirma),
Friends & Lovely
(Fair & Lovely)
5. Store / Distributors brand
SVC Coffee, Bakery products,
Mothi Bread etc.
3. The Package:
General group of activities in the planning of a product.
These activities concentrate on formulating a design of the
package and producing an appropriate and attractive container
or wrapper for a product.
4. Product Warranty:
An obligation of the producer and seller to stand behind
the product and assure the buyer that he will derive certain
services and satisfaction from the product.
An assurance of the Quality, Service and Performance.
5.Service after sales :
•For smooth maintenance and repairs at low charges as well as
quick availability of spare parts and accessories at reasonable rates.
•Important selling point helping the customer to take a quick
decision to purchase costly durable goods.
Issues to be resolved in Product plan
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Product line
Product mix
Packaging
Labeling
Branding
Service after Sales
PRODUCT CONCEPTS & CLASSIFICATION
1.Based on tangibility
:
tangible , intangible
2.Based on purpose
production
:
consumption,
3.Based on functional life
Durables
:
Consumables,
4. Based on habits
:
Convenience goods
Shopping goods,
Specialty goods
PRODUCT CONCEPTS & CLASSIFICATION
5. Based on price &quality:
product
6. Based on product
development
:
Mass product, Premium
Innovations, Imitations
7. Based on brand hierarchy level :
Global Brand : Pepsi, Coke
National brand : Godrej, Tata
Regional brand : Sun TV Channel
Local brands: surya masale, Joy chips
Unbranded products: oil, food grains
Commodities: Tamarind, cloves, fish
1 Based on tangibility. Tangible goods -- products
Intangible goods --services
Characteristic
Tangibility
Separability
Variability
Perish ability
Product
Yes
Yes
Sometimes , customized
Some products
Services
No
No
Yes
Yes
Examples: Product : Soft drinks, office furniture, houses etc,
Services : Repairs, construction services, legal services
2. Based on purpose of use
Purpose
Type
Consumption Consumer
goods
Production
Industrial/
agricultural
goods
User
Products
Households
Toiletries, cosmetics,
beverages, home
appliances etc
Industries
/poultries
Raw materials,
components,
agricultural inputs &
machinery, animal
feeds etc
3. Based on functional life
Type
Nature of use
Functional
life period
Examples
Consumables
Onetime
Short
Food & beverages ,
soft drinks
Durables
Lifetime
Long
Furniture,
computers, cars,
camera
4. Based on habits : a. convenience
b. shopping
c. specialty
Goods
Product
type
Buyer
envt.
Buy
Decision
frequency
Buying place
a.
Consumable
Low
Frequent
Simple
Paan shop,
cooperative
stores, fairs,
provision store
b.
Durables
Moderate
Occasion
Complex
Fairs, haats,
show rooms,
chain stores
c.
Durables
High
Once in
life
Complex
Shops in
towns ,cities
Concept of Product strategy
Long range competitive plan involving
decisions on products, product line and
product mix to make proper utilization of
resources and achieve marketing goals
Significance
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Achieves product- market fit
Encourages innovativeness
Provides competitive edge
Makes better use of resources
Scope
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Decisions at three levels
1.
Level
Product mix
Strategy
Width extension- new product line
Length extension – new product items
Depth extension – new product variants
2.
Product line
Stretching – upward, downward
Line pruning –line modernization
3.
Product item
Quality, features, design, brand
Augmentations
Contd…
2. Product line
Line pruning :
product lines lend to lengthen over time like rational
grounds or emotional reasons. Both case dead wood will
accumulate. It has to be taken out at periodical reviews.
Pruning may be done when
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It is identified that dead wood is depressing profits
It is found that the production capacity is limited and
cannot handle all the existing products
Contd…
Line Modernization
When technological developments change the products
This is to be considered when
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Timing:
Conversion readiness from old to new
Competitors moves
Profitability levels
Approach : when the change be total or a part
Contd…
3. Product Item
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Core product development (need product relationships)
Tangible product development
Quality- durability, capacity, efficiency, economy, reliability
Features – rational, problem solving, fancy, emotional
Design - arrangements of parts
Style - appearance and function
Packaging
Branding
Augmented product development
Contd…
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Packaging
Primary package : to hold the product
Secondary package : to hold the primary package :
cardboard box
Shipping package : carry the products from one place
to another
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Three levels of appeal by packages
Contd…
Level
Purpose
Characteristics
Determinants
Sensory
Attention
Attractive
Distinctive
Visibility
Easy to identify
(shapes, colors)
Emotional Interest
desire
Adoptability
Compatibility
Communicability
Easy to carry
Easy to use
Easy to store (milk, tooth
pastes, creams)
Rational
Informative
Interactive
Preservative
Economical
Easy to know
Easy to store
Good to reuse
Fair price (glass bottles )
Evaluation
Contd…
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Branding
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Brand concept
Branding policy: To brand or not to brand
Sponsorship
Naming
Branding the need
Contd…
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Branding arguments for and against
For :
 Identify helps processing
 Image gives competitive advantage
 Personality convinces consumers
 Equity enhances value
Against
Investment- returns doubtful
Image and personality an emotional nonsense
Brand equity- sensible but not new
Contd…
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Brand sponsoring
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Manufacturer brand
Distributor band
Brand identity
Name what
 Each product to give brand name
individuals with company name: Ponda dream flower talc
individuals without company name: Cinthol, Lifebuoy
 Family brand name:
Raymonds - Raymonds for textiles and Park avenue for
shirts, shoes
 Associated brand name Usha - fans, sewing machine
Name how?
 Easy to use, understand, distinguish
Contd…
Augmented Product : needs of consumers
Components of an offer
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Product related Service related
Channel
Quality
Design style
Features
Packaging
Brand image
Expertise
Performance
Courtesy
Atmosphere
Ordering
Deliver and credit
Installation
Customer tracking
Repair & maintenance
Strategies for marketers
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Identity strategies
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Customer value strategies
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Commodity strategies vegetables, oil, steels
Branding strategies brook bond’s red label tea, LG
Sampoorna
Mass product strategies – Maharaja appliances Ltd,
Rajdoot 223
Premium product strategies – Fair &Lovely, Surf
Innovation strategies
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Rural urban strategies - Bajar electricals, Appollo hospital
servicing in rural
Special for rural – Nyle Shampoo, Titan watches
Strategies for marketers
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Quality strategies
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Quality improvement strategies –TVS 50 48 cc to 49.9 cc
Spurious goods strategies – Lifebuoy-Love boy
Packaging strategies – Affordability, usage,
storability, small, combi packs
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Brand strategies
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Brand extension strategies – New Cinthol
Multi band strategy – HLL Soaps- Lifebuoy, Lux
Co-branding strategy – IBM and Compaq buys Intel chip
and advertise as ‘Intel’ inside
Brand image/ equity management – Onida, Lux
Class discussion
Critically examine the product strategy of
the two regional washing soap brands, in
comparison to one local brand, in rural
markets
Use 4As for analysis
Identify the success and failures of
brands in general.
Class discussion
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Explain brand image strategies of any two
companies operating in rural areas