Transcript FROM THE 4 Ps TO THE 4 A`S THE 4 Ps THE CHALLENGES

THE 4 Ps IN RURAL
MARKETING MIX CHALLENGES

FROM THE 4 Ps TO THE 4 A’S
THE 4 Ps
THE CHALLENGES
PRODUCT
ACCEPTABILITY
PRICE
AFFORDABILITY
PLACE
AVAILABILITY
PROMOTION
AWARENESS
PRODUCT CONCEPTS
Videocon launched a washing machine
without dryer, priced at Rs. 3000/-. Did it
succeed ? Why ?
 Cadbury’s Chocobix well accepted in rural.
Why ?
 Eveready launched plastic torches in
several colours. How did it fare in rural ?
Why ?
 Phillips made it’s models 1.5 times larger
and louder than the urban ones. What
consumer insight led to this ?
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PRODUCT CONCEPTS
HP Gas launched a small 5 KG cylinder
with the option of both a stove and a light
 Vardan biri launched a longer biri with the
thread tied much closer to the smoking
end
 Eicher launched a tractor fitted with a 3
KW generator running on the engine to
take care of the electricity problem. It
failed. Why ?
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Five Levels of Product
Core
Benefit
MOBILITY
ENTERTAINMENT
Basic
Product
MOTORCYCLE
TELEVISION
Expected
Product
GOOD SHOCKS
FUEL EFICIENCY
LOW MAINTENANCE
Augmented
Product
CARRIES LOAD
MANOUVERABLE
Potential
Product
CAN PULL SMALL
TRAILER
PICTURE QUALITY
CLEAR SOUND
EASY TO OPERATE
WORKS ON BATTERY
LOCAL LANG.
DISPLAY
VOLTAGE
FLUCTUATION DOES
NOT AFFECT SIGNAL
PRICING
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OPTIONAL/ CAPTIVE PRODUCT PRICING
 LOW STICKER PRICE FOR TRACTOR & HIGH FOR
SPARE PARTS/SERVICING eg Gilette
ECONOMY/LOW PRICE POINTS
 DISCRETE vs CONTINUOUS
REFILLS/REUSABLE PACKS
PENETRATION PRICING – RUF ‘N TUF
DISCRIMINATORY PRICING
 CUSTOMER SEGMENT PRICING
 LOOSE PIECES – COILS, CIGS, OIL ETC.
 LOCATION PRICING eg HILLS
RURAL RETAIL SYSTEMS
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SPREAD
 35
LAKH OUTLETS @ 211/LAKH POPN.
 APPOINT DISTRIBUTORS TILL 10-20,000
POPN. LEVEL

PREMISES
 11%
SHOPS HAVE ELECCTRICITY
 88% OWNED NOT RENTED
 IN 70% OUTLETS 2-3 PEOPLE WORK PARTTIME
 AVG STR IS 1 MONTH
TYPES OF RETAIL OUTLETS
TYPE OF SHOPS
Provision Store
Pan/Bidi
Ration/Fair Price
Cycle Repair
Textiles
Vegetables/Fruits
Liquor
Chemist
Others
%
66
60
32
28
14
14
12
8
12
Types of Rural Distribution Systems
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Traditional - direct from company
Traditional - Super stockist driven
Traditional – wholesaler driven
Hub & Spoke - Coke
Non – traditional :
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Haats incl role of NYKS
Mandis
Hawkers for beedi/cigarettes
Last Mile
SHGs
RURAL COMMUNICATION
Challenges in Rural Communication

Heterogeneity
2
National Languages
 16 Schedules languages
 47 languages used in primary education
 98 languages used in Print Media
 71 used on Radio
 13 languages in which films are made
 114 local vernaculars
Challenges in Rural Communication
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Spread
 Dispersion
of habitation
 Literacy levels vary (Kerala 90% - Bihar 44%)
 Electronic media reach varies – (Kerala 63% Bihar 17%)
 Print Media (Kerala 65% - Bihar 9%)
Challenges in Rural Communication

Understanding Rural Audience
2
sets – educated & illiterate
 Developed/underdeveoped
 Importance of “Touch & Feel” for rural
audience
 Comfort with & belief in oral media due to
tradition
 Perceptions vary – the black cat syndrome
 Social Classes
 Role of Rational, Emotional & Moral appeals