MARKETING OF CONSUMER DURABLES

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Transcript MARKETING OF CONSUMER DURABLES

1.RURAL MARKETING SCENARIO
2. COMPOSITION OF CONSUMER
GOODS
3. RELEVENCE OF PRODUCT, PRICE,
PLACE AND PROMOTION IN RURAL
MARKET
4. THE ROLE OF ADVERTISING
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India with population of above 200 million is
the word’s second largest fast growing
market.
India ‘s growing market is not only by virtue
of its population but also on account of
 Unsatisfied demand for consumer product
 Rising income
 Changing attitudes & life styles
 The communication revolution
Two sides of rural markets
 Immense opportunities
 Intimidating challenges
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Now rural consumers constitute a big
potential market for consumer goods.
The investment pattern is changing from
buying gold to buying tractors, implements &
pump sets.
The rich farmers buy all possible modern
amenities.
With the speed of literacy, more schools &
more rural people getting educated & the
usage of consumer goods is bound to increase
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RURAL INCOME
EDUCATION
LACK OF SAVINGS HABIT
IRREGULAR DEMAND
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Consumer goods are divided as durable
goods and non durable goods.
Durable goods –Bicycles, electric iron,
Table, chairs, fans
Cookers, Stove, Grinders
Refrigerators, Washing
machines , TV, Harvesters,
Pump sets, 4 wheelers etc
Non durable goods – Washing powders, bath
soaps, Shampoo, shaving
creams,
Tea, coffee
Face powder, Bindi,
Cosmetics, Comb,
Bangles, Nail polish
paper, magazines,
Dress materials, Bulbs
medicines, tooth brush
etc
Category
Estimated annual size(Rs crore)
FMCG
65000
FMCD
5000
Agri inputs
45000
2/4 wheelers
8000
Total
123000
STP+ 4P’S=MARKETING STRATEGY
S- SEGMENTATION
T-TARGETING
P- POSITIONING
P- PRODUCT
P-PRICE
P-PLACE
P-PROMOTION
PRODUCT----- Product design, features, brand
name, models, styles,
appearance
Product quality
Warranty
Package: design, material, size,
labeling etc.
PLACE---------
Cannels of distribution: Design,
location of intermediaries,
location of outlets,
Channel remuneration,
Dealer- principal relations etc
Physical distribution:
Transportations, warehousing,
Order processing etc
PRICE-------------1. Pricing policies, margins,
discounts, & rebates.
2. Terms of delivery, payment
terms, credit terms
purchase facilities, resale
price maintenance
PROMOTION----------- 1. Personal selling:
selling expertise, Size
& quality of sales
force, etc.
2. Advertising:
Media mix, vehicles,
programmes.
3. Sales promotion:
Gifts, price offs,
coupons, contests,
prizes etc
4. Publicity & public
relation
Smaller packages, low value
goods
 Change the product attributes
 Modernize & redesign the
products to satisfy rural buyers
 Economy products
 Keep adequate stocks
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Sell at lower price or at same
price as in the urban market
 Reduce price by modifying
attributes like package, size,
packing etc.
 Ensure loyalty of consumers
 Work on minimum possible
profit margin.
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Product should made available at
convenient places.
Hawker method is preferred in
absence of agents to sell daily to
rural people.
The bigger companies can arrange
for better sales distribution in the
rural sector
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It is a backup function for sales
force.
Promotion strategy consists of
advertising, sales promotion,
public relation, publicity&
personal selling.
One of the very popular schemes in
the rural areas is “ buy 2 soap cakes
& get one free”
INTRODUCTION
 OPENION LEADERS
 LANGUAGE
 ADVERTISING A NECESSITY
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Mass media gap in India is as
conspicuous as the income gap
Extra basic infrastructure Is needed to
reach mass population.
Press, cinema, demonstration vans,
puppet shows & theaters may be used
to convey product massage
“persuasion by the opinion makers “
also counts
“Word of mouth “ is a powerful
medium.
 Panchayats can be a useful
instruments of mass changes in
consumer habits
 Opinion leaders generate
confidence in the slower & later
adopters.
 There is a need to advertise in
local languages
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Advertising not necessarily creates demand
for products in rural market.
Other factors like environmental conditions,
price cuts, quality changes, raising income
also creates demand.
There is a need to divert some resources from
advertising to market research.
Our rural marketers should keep an eye on
import substitution & upgrade raw materials
on the basis of research.