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Posted in Community :

Rural Marketing |

Pepsi Co India

 
Started by : Vipin Tripathi, Sales/BD Manager, Target   09 20 2008 06:09:32 +0000
Industry : FMCG/Foods/BeverageFunctional Area : Consumer Sales(Sales & Marketing)
Activity:  235 views;  last activity : 07 06 2010 20:18:09 +0000

With urban markets flooded with all types of products and intense competition between all big players, But the real opportunity lies in Rural market which is untapped till yet. So what strategy you will follow to get into rural market.

 
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1 2 3 4 5
1 Focus on their requirements
2 Communities
3 Perception Building and Breaking
4 Strategies for entering into rural market
5 Customisation of voice, VAS and data with total end to end service
6 strategies to enter into rural area
7 strategies for entering rural market..
8 Price is the key
9 At very 1st we need to understand the need of consumers.
10 Adjusting to local needs
11 End-to-end service delivery
12 how to enter rural market
13 They Earn We Make Profit
14 Tie up with a CSR program of a huge MNC

Focus on their requirements

idea posted by Prarthana Business Analyst

Strategies ofr entering rural market:

1. Low pricing

2. Less quantity packing

3. No brands

4. Educating rural people

5. Understanding their needs & requirements

6. Easy accessibility

 

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I'll also agree on focussing on their requirements. To add further:

1. Identify the need

2. Study and analyse demographics to arrive at the best possible selling price

3.   Work backwards and develop a scaleable prototype to fit the above 2

4. Rope in opinion leaders for introducing the product among the target segment

5. Ensure proper feedback to make changes, if any

6. Replicate and distribute

7. Ensure a strong servicing and replenishment mechanism

Our rural counterparts are looking for products that could help them ease/ upgrade their current conditions. The thing to be kept in mind is that the product should be appealing in price and utility and follow the adage as is for all markets: value for money

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it is very much clear that rural market is highly untapped market with less competition but maximum production is from there only. After analysing that market the basic problem which i got is loaning.If somehow after contacting them or by providing them inputs, we are able to provide them the platform for output which can be further converted into a rural business hub or an open air mall.

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by Yash Singh, Coresspondent, Star  | 08 11 2009 11:04:41 +0000

Yes Prarthana is right. The requirement and affordability of Rural people is not as equal to that of urban people. they even don't know anything about new products. Before launching any products into the market, we should know every details about these things.

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Communities

idea posted by Sheetal Jadhav Sales/BD Manager, Future Group
Rural people live as communities or extended families. You need to align with local communities following the trick, “trust is transferable”.
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Well said Sheetal "Trust is Transferable" and it works really well with rural people. The elder "tau" when talks about certain things people hear and in there personal lives as well these "educated tau'z"  "town returned dude'z"  ideas and suggestion matters a lot. I would like to definelty include the Seth Godins idea of "Tribes & Tribe marketing" when it comes to targeting rural market as the rural people tend to rely & make decision in groups.

0
  

Well said Sheetal "Trust is Transferable" and it works really well with rural people. The elder "tau" when talks about certain things people hear and in there personal lives as well these "educated tau'z" & "town returned dude'z"  ideas and suggestion matters a lot. I would like to definelty include the Seth Godins idea of "Tribes & Tribe marketing" when it comes to targeting rural market as the rural people tend to rely & make decision in groups.

0
  

Well said Sheetal "Trust is Transferable" and it works really well with rural people. The elder "tau" when talks about certain things people hear and in there personal lives as well these "educated tau'z" & "town returned dude'z"  ideas and suggestion matters a lot. I would like to definelty include the Seth Godins idea of "Tribes & Tribe marketing" when it comes to targeting rural market as the rural people tend to rely & make decision in groups.

Add your argument:

Perception Building and Breaking

idea posted by Vivek Bohra Marketing Manager, Mahindra and Mahindra

Rural people build perceptions and are difficult to convince, Need to break thier perception and build new once with Product Demos or experiences (sweet/ tough) and create hype/ educate thru media

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by James Masih, Product/Brand Manager, FedEx  | 04 27 2009 07:55:59 +0000

Mr.Vivek i agree with you.Its difficult to enter and become successful instantly in the rural market as compared to urban market because the people in urban areas have their own perceptions and they are used to do the same thing over and over again.So if you want to make them aware of your product you first need to break their perections and build trust for your product.Then only you can make use of the huge potential for growth that it offers.

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Strategies for entering into rural market

idea posted by Himanshu Gupta Sales/BD Manager, Vega Foods Pte LTD

The success of entering the rural market depends on how you bring all the beliefs, culture and traditions together into a package that gives the consumers the value for the price he is going to spend. Still today the rural consumer wants a soap and not lux... The whole idea is how you reach them i.e. the ease of access & price... If a consumer wants to buy a soap he asks for the lowest priced soap and then whatever is available he buys.... My personal experience in Gujarat where the middle aged rural consumer has money to buy still doesnot associate with a brand as for him the brand doesnot carry any image but this is different for a yound lad who is going to college in the near by town who clearly will boast around telling his friends that he has used a lux today....If you look at the rural market after 3-4 yrs where the consumer will be this yound lad will definitely like to associate himelf with a brand... Though it all depends on how fast the communication flows to him in the near future... So it is imperative now that more and more cheaper and effective ways of communicating the brand to these young consumers are devised which will in near future definitely help to make inroads for the brands and new products....

1
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Customisation of voice, VAS and data with total end to end service

idea posted by Manish Sinha Vice President Customer Operations Service Delivery, Reliance Communications Ltd

Rural markeet is a totally different ball game. The ARPU's going to be less in these markets. hence follwoing are the key to revenue:

1. packet comprising of Voice and data

2. Community centre to run by educated youths.

3. VAS as supplement towards increasing ARPU

4. End to end service delivery.

1
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strategies to enter into rural area

idea posted by pramod Suresh Vishwakarma An Indivisual with passion, vision and belief

the marketer should understant the need of of consumer. to make them buy a branded product is difficult task thogh hll has succeded by marketing products according to consumer behaviour of rural area.the demand in RA is seasonal so we have to consider that as well.

low price

effective packaging

awareness through mobile media and local media is important.

as the literacy level has gone up recent year, in west bengal, BIhar, UP and maharashtra. people has started realising to associate them selve with a brand.

we should have effective marketing strategy to tapp it.

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i completely agree with the idea ,'coz people residing in rural areas want things 1.)to be economical .2.) easily available .3) in small/easy to use packings.today b'coz of cable tv reaching in villages ,brands need to communicate well ,hence to give it a universal appeal .

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strategies for entering rural market..

idea posted by Abhijeet Yadav Student, Jaipuria Institute Of Management

1.Awareness, 2.Economical, 3.Quality, 4.Accesibility, 5.Understanding their needs, 6.Above the Line Advertisements

1
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Price is the key

idea posted by sujit Kumar Marketing Manager, Wipro Peripherals

Price is the key there. Because  of limited income, everything like bramd and all comes after price. Once you establish brand with price next you can keep them abreast with your brand awareness.

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Yes sujit you are right. Definitely price holds a position but if they associate with some pride and respect its an added advantage.

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At very 1st we need to understand the need of consumers.

idea posted by manoj kushwaha Area Manager, ROCHE DIAGNOSTICS INDIA Pvt. Ltd.

At very 1st we need to understand the need of consumers.

Once we are able to find out the needs, then very nxt we will think of solution with the

Best attraction (attraction*)

 

*

In rural market we need to take care of few things:

  1. Language for batter communication.
  2. There traditions.*
  3. There concept of Business.
  4. Nearest Business hub from where they got the inspiration so that we can get the clear picture of market.

 

If we have these tools we can grape the market potential/prospects very easily

 

 

 

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Adjusting to local needs

idea posted by Vipin Tripathi Sales/BD Manager, Target
Rural India represents varied cultures, traditions, languages etc. So your model should be sufficiently flexible to adapt to local needs.
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End-to-end service delivery

idea posted by Souvik Karmakar Sales/BD Manager, Reliance Retail
You need to make sure that the consumer gets service-as-a-whole delivered. For example, if you just collect a resume and charge the customer rupees twenty for feeding into computer- this may not be scalable. However, if you collect a villagers’ resume, provide him a job earning him rupees 5000 a month and collect rupees 20000 for your efforts - this would definitely work with rural people.
1
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how to enter rural market

idea posted by sajin george Recruitment Manager, persuing mba from malla reddy institute of management hyd, exp of one year in visage media services ar customer relation

as said the rural market is still not in action because the people in villages do not emphasise on quality of a product or they do no know the actual value about a product. wit a strategy of a good quality of product n good sample test can give us a brief about the reaction of the rural public. based on the product the rural people must be educated in the form of surveys and hence it can be a starting step to enter a rural market.

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They Earn We Make Profit

idea posted by Ashish Gandhi CEO/MD/Director, Creative Director, PostBox Communications

The days of cheap price, "Sasta, Sundar, Tikaau" have gone. these days people dont look for only cheap, they also look for cheap and profitable. the product which will fulfill something more than just its function. e.g. if a soap is introduced in the market with a Katrina Kaif as its ambasador, the soap would surely work but if we have to make the same soap work in the rural market, Katrina Kaif's Poster along witht he Soap will surely help. and if you say that Katrina Kaif's Poster would be signed by her personally for 1 out of every 1000, that will definitely bring in more buzz in the crowd.


in the same manner, if treditions are targetted and sentimental promotions are done, they would also find good response. e.g. the advertisments which are produced by AirTel are quite touching and they are reached all over. but more than television, its the mouth publicity which would do the best in rural areas as its a discussion which gets people thinking than just an advertisment.


in my opinion, if a product is launched to be marketed in rural areas, its best if one of the localites is hired to market it in a particular fashion (may be given a frenchise for free and the more he seels the more he earns.) run a campaign to give out a frenchise of a particualr product for free to 1 person out of each village or small town. this would bring in a lot of business minded people to come together and try see the product through the assigned area.

 

Ideas can be just thought over, brainstorming is what makes it perfect.

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Tie up with a CSR program of a huge MNC

idea posted by Makrand Bhave Marketing & MICE, WIZCRAFT International

Generally MNC's or even our own companies like HLL,  Mahindra's have a CSR. That program is for the benefit of the underprivileged or somehow linking their products to reach the rural mass.

Linking yourself with such a program is definitely beneficial as the CSR is an year round activity and Corporates have to ensure that it takes place all the time. It is a definite plan to reach the TA and it also involves product being sold albeit at discounted costs. The only thing to make sure of is to tie up with a company where your TA and theirs have a fit.

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