Strategies on product, Price, Promotion and Distribution

Strategies on Product, Price, Promotion, and Distribution for Rural Markets

Rural marketing strategies encompass tailored approaches to product design, pricing, distribution, and promotion to address the specific needs and constraints of rural consumers. Here’s a detailed look at these strategies:

Product Strategies

• Small Unit and Low-Priced Packing:
• Objective: Make products affordable and accessible for rural consumers who often have limited disposable income.
• Implementation: Offer smaller pack sizes at lower prices. For example, shampoos, biscuits, and pickles are available in small, affordable packs. This strategy helps rural consumers try new products without a significant financial commitment.

• New Product Designs:
• Objective: Adapt products to suit the rural lifestyle and conditions.
• Implementation: Modify existing products or create new ones tailored to rural needs. This might involve redesigning household items to be more practical and durable. For instance, durable and easy-to-use products can cater to the rough handling typical in rural settings.

• Sturdy Products:
• Objective: Address the need for durability and utility.
• Implementation: Develop products that can withstand rough handling and have practical uses. Rural consumers often prefer products with sturdy construction and bright, flashy colors which they associate with durability. Examples include robust agricultural tools or durable household appliances.

• Brand Name:
  • Objective: Enhance recognition and trust.
  • Implementation: Create memorable brand names and logos that resonate with rural consumers. A strong brand helps in distinguishing products and building consumer confidence. For example, recognizable brands like Amul or Nirma leverage their established names to gain acceptance in rural markets.

Pricing Strategies

• Low Cost/Cheap Products:
• Objective: Make products affordable for price-sensitive rural consumers.
• Implementation: Use small unit packs and avoid sophisticated packaging to keep costs down. For example, offering smaller packs of essential goods like biscuits and shampoos at lower prices makes them more accessible.

• Avoid Sophisticated Packing:
• Objective: Reduce packaging costs and pass savings on to consumers.
• Implementation: Employ simple, cost-effective packaging solutions. For instance, packaging technology innovations that lower costs can be beneficial, as seen in basic biscuit packaging that appeals to rural consumers.

• Refill Packs/Reusable Packaging:
• Objective: Enhance cost-efficiency and sustainability.
• Implementation: Introduce refillable or reusable packaging options. This reduces overall packaging waste and cost. An example is the use of LDPE or HDPE sacks for fertilizers, which are reusable and tamper-proof.

• Application of Value Engineering:
  • Objective: Reduce product costs without compromising quality.
  • Implementation: Use cost-effective materials or methods to maintain product functionality at a lower price. For instance, substituting soya protein for milk protein in food products allows for lower costs while preserving nutritional value.

Distribution Strategies

• Co-operative Societies:
• Objective: Leverage existing local organizations for efficient distribution.
• Implementation: Use co-operatives to distribute products in rural areas. These societies can enhance market reach but may need to improve service quality to compete with private trade.

• Public Distribution System:
• Objective: Utilize government-run distribution channels.
• Implementation: Distribute products through public distribution systems to ensure accessibility, particularly for essential goods.

• Multi-purpose Distribution Centres:
• Objective: Centralize distribution to improve efficiency.
• Implementation: Establish centers that serve multiple functions, including storage and distribution, to streamline supply chains.

• Feeder Markets/Mandi Towns:
• Objective: Reach smaller, local markets.
• Implementation: Distribute products through local markets, shanties, hats, jathras, and melas to cover remote areas effectively.

• Agricultural Input Dealers:
  • Objective: Leverage existing channels.
  • Implementation: Use dealers who supply agricultural inputs to also distribute consumer goods, benefiting from their established networks.

Promotion Strategies

• Mass Media:
• Objective: Reach a broad audience through various channels.
• Implementation: Use television, cinema, print media, and radio to promote products. In rural areas, effective media may include local language radio stations or regional newspapers.

• Hoardings/Wall Paintings:
• Objective: Utilize local advertising methods.
• Implementation: Employ hoardings and wall paintings in strategic locations to increase product visibility.

• Shanties/Hats/Melas:
• Objective: Engage with local events and marketplaces.
• Implementation: Participate in or sponsor local fairs and markets to directly reach rural consumers.

• Non-Price Competition:
• Objective: Differentiate products through value rather than price.
• Implementation: Focus on unique selling points such as product quality, durability, or innovation.

• Special Campaigns:
• Objective: Drive awareness and sales through targeted efforts.
• Implementation: Run campaigns around festivals or harvest seasons with special offers, discounts, or new product introductions.

• Government Pamphlets:
  • Objective: Disseminate information through official channels.
  • Implementation: Use government offices or schools to distribute informational pamphlets about agricultural products and other goods.

Summary

Effective rural marketing requires tailored product, pricing, distribution, and promotion strategies. By addressing the specific needs of rural consumers—through affordable and practical products, cost-effective pricing, strategic distribution, and targeted promotions—companies can successfully penetrate and thrive in rural markets.