MARKETING OF CONSUMER DURABLES

1.RURAL MARKETING SCENARIO2. COMPOSITION OF CONSUMER GOODS3. RELEVENCE OF PRODUCT, PRICE, PLACE AND PROMOTION IN RURAL MARKET4. THE ROLE OF ADVERTISING

INDIA ‘ S MARKETS

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

RURAL MARKET

Two sides of rural marketsImmense opportunitiesIntimidating challenges

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

RURAL MARKETING SCENARIO

1. RURAL INCOME2. EDUCATION3. LACK OF SAVINGS

HABIT4. IRREGULAR DEMAND

COMPOSITION OF CONSUMER GOODS

Consumer goods are divided as durable goods and non durable goods.

Durable goods –Bicycles, electric iron,

Table, chairs, fansCookers, Stove,

GrindersRefrigerators, Washing

machines , TV, Harvesters,

Pump sets, 4 wheelers etc

Non durable goods – Washing powders, bath soaps, Shampoo, shaving

creams,Tea, coffeeFace powder,

Bindi, Cosmetics, Comb,

Bangles, Nail polishpaper, magazines,Dress materials,

Bulbsmedicines, tooth

brush etc

SIZE OF RURAL MARKET

Category Estimated annual size(Rs crore)

FMCG 65000

FMCD 5000

Agri inputs 45000

2/4 wheelers 8000

Total 123000

MARKETING STRATEGY FOR COSUMER DURABLES

STP+ 4P’S=MARKETING STRATEGYS- SEGMENTATIONT-TARGETINGP- POSITIONINGP- PRODUCTP-PRICEP-PLACEP-PROMOTION

RELEVENCE OF PRODUCT, PRICE, PLACE, PROMOTION

PRODUCT----- Product design, features, brand

name, models, styles, appearance Product qualityWarrantyPackage: 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 pricemaintenance

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 etc4. Publicity & public relation

PRODUCT

Smaller packages, low value goods

Change the product attributes Modernize & redesign the

products to satisfy rural buyers

Economy products Keep adequate stocks

PRICE

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.

PLACE

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

PROMOTION

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”

ROLE OF RURAL ADVERTISING

INTRODUCTION OPENION LEADERS LANGUAGE ADVERTISING A

NECESSITY

INTRODUCTION

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

ADVERTISING –A NECESSITY

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.

SUMMERY