Rural Marketing | Marketing Mix For The Rural Market


Rural Market

Rural Marketing - The process of planning, and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchange (for rural segments) that satisfy individual and organizational objectives.


Understanding today’s rural consumer

Rural Consumer

• High utility orientation & value-seeking from each purchase.

• Open to be connected through digital channels.

• Price-sensitive but willing to spend on trusted brand.

• Majority shopping is done on special occasions.

• Aspires to mirror his urban counterparts

• Strongly attached to local culture & language

even on social media.


4 A's - The key factors in a rural market


Availability : Planned trade -off between distribution cost & market penetration to ensure product reaches remote areas.

Acceptability : Modifying the product according to the rural conditions and facilitating ease of usage to make user comfortable with using the product.

Awareness : Using traditional ATL marketing activities like TV/Radio ads to improve brand recall & connection.

Affordability : Lower SKUs to prompt low-risk trials, along with convenient loans or money-lending facilities for bigger purchases.


Tweaking the marketing mix for the rural market


Product strategies

• Modifying product design to provide convenience of usage to the rural market.

• Smaller SKUs to improve trials for first-time users.

• Improving sturdiness & power to improve attractiveness to a rural consumer.

• Increasing utility over fancy features to provide maximum ROI.

• Adaptive brand-building according to the audience tastes & preferences.

LG TV

Example: LG Electronics introduced Sampoorna TV aimed at rural audience, India’s first TV with a Devanagari script on screen display for vernacular languages.


Pricing strategies

• Differential/reduced pricing as compared to urban areas.

• Low Unit Price (LUP) packing or “paise packs” of even premium brands.

• No-frills Economy pricing – Coinage pricing, value pricing.

• Discounts for special events according to local festivals & events.

• Schemes for retailers like offers & quantity discounts to increase loyalty.

• Credit facilities & promotional offers according to agricultural cycle.

• Free gifts that provide additional utility.

• Bundled pricing to promote maximum value for money.

Shampoo

Example : CavinKare introduced 4ml sachets of Chik shampoo priced 50 paisa each at a time when other shampoos were sold in Rs.2 packs.