RURAL MARKETING WITH SPECIAL RURAL MARKETING WITH SPECIAL STRATEGY TO SEGMENTATION , STRATEGY TO SEGMENTATION , TARGETING AND POSITIONINGTARGETING AND POSITIONING

MADE BY: BHUVNESH VIGMADE BY: BHUVNESH VIG

MBA(M&S) 3MBA(M&S) 3RDRD SEM SEM

SEGMENTATIONSEGMENTATION

PROCESS OF DIVIDING A HETEROGENEOUS MARKET PROCESS OF DIVIDING A HETEROGENEOUS MARKET INTO SEVERAL SUB MARKETS OR SEGMENTS, EACH OF INTO SEVERAL SUB MARKETS OR SEGMENTS, EACH OF WHICH TENDS TO BE HOMOGENEOUS IN ALL ASPECTS. WHICH TENDS TO BE HOMOGENEOUS IN ALL ASPECTS.

• GEOGRAPHIC GEOGRAPHIC

• DEMOGRAPHICDEMOGRAPHIC

• PSYCHOGRAPHICPSYCHOGRAPHIC

• BEHAVIORALBEHAVIORAL

GEOGRAPHIC SEGMENTATION. GEOGRAPHIC SEGMENTATION.

NorthAggressive Dominant

Big is beautiful

East Sensual

Assertive Women

Men Socialistic,idealis

tic

SouthSensual, rationalDiligent

West Leisure

Simple lifeMoney is godDemocratic

Commercial

Open to new products

Emotionally expressive

Generous

Family centric

Health Conscious

Culturally Conscious

Simplicity

Cleanliness/Hygiene

Geographic Segmentation..

• VILLAGE POPULATION AND DENSITYVILLAGE POPULATION AND DENSITY

SIZE OF POPULATION- A MAJOR FACTOR THAT SIZE OF POPULATION- A MAJOR FACTOR THAT DETERMINES THE OVERALL POTENTIAL DEMAND FOR A DETERMINES THE OVERALL POTENTIAL DEMAND FOR A PRODUCT/SERVICE. PRODUCT/SERVICE.

CLASS I- POPULATION OVER 5000. CLASS I- POPULATION OVER 5000.

CLASS II- POPULATION BETWEEN 1000- 5000CLASS II- POPULATION BETWEEN 1000- 5000

CLASS III- POPULATION LESS THAN 1000. CLASS III- POPULATION LESS THAN 1000.

• CLIMATECLIMATE

• CLIMATIC CONDITIONS PLAY AN IMPORTANT ROLE. CLIMATIC CONDITIONS PLAY AN IMPORTANT ROLE.

EG: TALCUM POWDER IN HOT AND HUMID REGIONS, AND HEALTH EG: TALCUM POWDER IN HOT AND HUMID REGIONS, AND HEALTH TONICS IN WINTER. TONICS IN WINTER.

• CULTURECULTURE

• SOCIETY AND CULTURE PROVIDE INSIGHTS INTO THE SOCIETY AND CULTURE PROVIDE INSIGHTS INTO THE ATTITUDES OF PEOPLE AND THEIR NEEDS. ATTITUDES OF PEOPLE AND THEIR NEEDS.

DEMOGRAPHIC SEGMENTATION DEMOGRAPHIC SEGMENTATION

• AGE AND LIFE CYCLEAGE AND LIFE CYCLE

• PRE INDEPENDENCEPRE INDEPENDENCE

• PAIN OF NATION BUILDING(POST INDEPENDENCE) PAIN OF NATION BUILDING(POST INDEPENDENCE)

• PAIN OF LIBERALIZATION(1985 ONWARDS) PAIN OF LIBERALIZATION(1985 ONWARDS)

• LIBERALIZATION CHILDREN( 1990 ONWARDS) LIBERALIZATION CHILDREN( 1990 ONWARDS)

• MILLENNIUM CHILDREN( 1997 ONWARDS) MILLENNIUM CHILDREN( 1997 ONWARDS)

MARKETERS TARGET THE AGE GROUP OF 8 – 15, EXPOSED TO URBAN MARKETERS TARGET THE AGE GROUP OF 8 – 15, EXPOSED TO URBAN MARKETS; EDUCATION; MARKETS; EDUCATION;

OLD AGE AND ABOVE THE AGE OF 35- INFLUENCED BY TRADITIONAL OLD AGE AND ABOVE THE AGE OF 35- INFLUENCED BY TRADITIONAL CUSTOMS. CUSTOMS.

DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION

• FAMILY STRUCTUREFAMILY STRUCTURE

• JOINT FAMILY AND LARGE FAMILIES STILL PREDOMINATE. JOINT FAMILY AND LARGE FAMILIES STILL PREDOMINATE.

• INCREASE IN FAMILY SIZE- INCREASE IN CONSUMPTION. INCREASE IN FAMILY SIZE- INCREASE IN CONSUMPTION.

• ALSO LEADS TO MULTI BRAND CONSUMPTION. ALSO LEADS TO MULTI BRAND CONSUMPTION.

• INCREASING NUCLEAR FAMILIES- GREATER DEMAND OF PRODUCTS, INCREASING NUCLEAR FAMILIES- GREATER DEMAND OF PRODUCTS, ESP. CONSUMER DURABLES LIKE TV, COOKER, LPG CONNECTION. ESP. CONSUMER DURABLES LIKE TV, COOKER, LPG CONNECTION.

DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION

• INCOMEINCOME

• INCOME IS SEASONAL( POST HARVEST FOR FARMERS) OR INCOME IS SEASONAL( POST HARVEST FOR FARMERS) OR WEEKLY/DAILY( WAGE EARNERS) . WEEKLY/DAILY( WAGE EARNERS) .

• MULTIPLE SOURCES OF INCOME( AGRICULTURE, DAIRY ETC) MULTIPLE SOURCES OF INCOME( AGRICULTURE, DAIRY ETC)

• AGRICULTURAL INCOME IS NOT TAXABLE. AGRICULTURAL INCOME IS NOT TAXABLE.

DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION

• LANDOWNERSHIPLANDOWNERSHIP

• 55% OF INCOME IN RURAL AREAS COMING FROM AGRICULTURE. 55% OF INCOME IN RURAL AREAS COMING FROM AGRICULTURE.

• MARGINAL FARMERS- HOLDING UPTO 1 HECTMARGINAL FARMERS- HOLDING UPTO 1 HECT

• SMALL FARMERS- 1-2 HECTSMALL FARMERS- 1-2 HECT

• SEMI-MEDIUM FARMER- 2-4 HECTSEMI-MEDIUM FARMER- 2-4 HECT

• MEDIUM FARMER- 4- 10 HECTMEDIUM FARMER- 4- 10 HECT

• LARGE FARMER- 10 HECT AND MORELARGE FARMER- 10 HECT AND MORE

DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION

• EDUCATION AND HOUSE TYPESEDUCATION AND HOUSE TYPES

• EDUCATION: ILLITERATE, BELOW SSC, SSC/HSC, COLLEGEEDUCATION: ILLITERATE, BELOW SSC, SSC/HSC, COLLEGE

• HOUSES: PUCCA, SEMI -PUCCA, KUCCHA. HOUSES: PUCCA, SEMI -PUCCA, KUCCHA.

• RELIGION AND CASTESRELIGION AND CASTES

• DIFFERENCES IN RELIGION AND CASTE VISIBLE IN TERMS OF DIFFERENCES IN RELIGION AND CASTE VISIBLE IN TERMS OF SETTLEMENT PATTERNS IN VILLAGES. SETTLEMENT PATTERNS IN VILLAGES.

• VILLAGE SHOPS ARE DEMARCATED ALONG SIMILAR LINES. VILLAGE SHOPS ARE DEMARCATED ALONG SIMILAR LINES.

DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION

• OCCUPATIONOCCUPATION

• FARM BASED OCCUPATIONS. FARM BASED OCCUPATIONS.

• CULTIVATORS: FARM OWNERS, MARGINAL FARMERS. CULTIVATORS: FARM OWNERS, MARGINAL FARMERS.

• AGRI AND NON AGRI LABOUR. AGRI AND NON AGRI LABOUR.

• POULTRY, DAIRYPOULTRY, DAIRY

• SALARY EARNERS: DOCTORS, TEACHERS. SALARY EARNERS: DOCTORS, TEACHERS.

• TRADERS, MICRO ENTREPRENEURS. TRADERS, MICRO ENTREPRENEURS.

PSYCHOGRAPHIC PSYCHOGRAPHIC SEGMENTATIONSEGMENTATIONIN RURAL INDIA.IN RURAL INDIA.

PSYCHOGRAPHICS INCLUDE PERSONALITY TRAITS, LIFESTYLE & PSYCHOGRAPHICS INCLUDE PERSONALITY TRAITS, LIFESTYLE & VALUE SYSTEM.VALUE SYSTEM.

BEHAVIORAL SEGMENTATIONBEHAVIORAL SEGMENTATION

• OCCASIONSOCCASIONS

• BENEFITS SOUGHTBENEFITS SOUGHT

• USER STATUSUSER STATUS

• USAGE RATEUSAGE RATE

• LOYALTY STATUSLOYALTY STATUS

• PLACE OF PURCHASEPLACE OF PURCHASE

REQUISITES FOR EFFECTIVE REQUISITES FOR EFFECTIVE SEGMENTATIONSEGMENTATION

MEASURABLE MEASURABLE

ACCESSIBLEACCESSIBLE

DIFFERENTIABLEDIFFERENTIABLE

SUBSTANTIALSUBSTANTIAL

EXAMPLE:- BAJAJ AUTO LTDEXAMPLE:- BAJAJ AUTO LTD

DEGREES OF SEGMENTATIONDEGREES OF SEGMENTATION1.MASS MARKETING:1.MASS MARKETING:

• MOST MARKETERS USED THIS IN RURAL MARKETSMOST MARKETERS USED THIS IN RURAL MARKETS

• ALL CONSUMERS BEING TREATED THE SAMEALL CONSUMERS BEING TREATED THE SAME

• FIRST STEP IN MARKETING-LESS MARKET FIRST STEP IN MARKETING-LESS MARKET KNOWLEDGEKNOWLEDGE

EG 2;EG 2;

COLGATE PALMOLIVE SUCCESSFULLY MARKETED COLGATE PALMOLIVE SUCCESSFULLY MARKETED SAME TOOTHPASTE TO ALL CONSUMERS IN SAME TOOTHPASTE TO ALL CONSUMERS IN URBAN AND RURAL MARKET. RECENTLY THEY URBAN AND RURAL MARKET. RECENTLY THEY INTRODUCED CIBACA WHEN THE RURAL MARKET INTRODUCED CIBACA WHEN THE RURAL MARKET BECAME MORE DEMANDINGBECAME MORE DEMANDING

2.SEGMENT MARKETING2.SEGMENT MARKETING

• IDENTIFIES CUSTOMERS AS DIFFERENT GROUPSIDENTIFIES CUSTOMERS AS DIFFERENT GROUPS

• EG1 :COLGATES 10GM SACHE IN 2000 AIMED RURAL CONSUMEREG1 :COLGATES 10GM SACHE IN 2000 AIMED RURAL CONSUMER

• EG2:LG’S LOW COST TELEVISION SAMPOORNA (1999)EG2:LG’S LOW COST TELEVISION SAMPOORNA (1999)

3.NICHE MARKETING3.NICHE MARKETING

• SERVES SELCTIVELY ONE OR A FEW CUSTOMER GROUPSSERVES SELCTIVELY ONE OR A FEW CUSTOMER GROUPS

• NICHE MARKETING IS USED WHEN THERE IS A SMALL GROUP WITH NICHE MARKETING IS USED WHEN THERE IS A SMALL GROUP WITH SPECIFIC NEED .OUR RURAL AMRKET IS NOT MATURED TO THIS SPECIFIC NEED .OUR RURAL AMRKET IS NOT MATURED TO THIS LEVELLEVEL

EG: HERO HONDA BIKES, NOKIA MOBILESEG: HERO HONDA BIKES, NOKIA MOBILES

4.MICRO MARKETING4.MICRO MARKETING

• FOCUS ON INDIVIDUALS OR VERY SMALL GROUPSFOCUS ON INDIVIDUALS OR VERY SMALL GROUPS

• TO SATISFY A PARTICULAR TASTE OR NEEDTO SATISFY A PARTICULAR TASTE OR NEED

EG: DABUR LAUNCHED ANMOL,A MUSTARD AND AMLA BASED HAIR EG: DABUR LAUNCHED ANMOL,A MUSTARD AND AMLA BASED HAIR OIL TO TARGET RURAL CONSUMERS IN NORTHERN MARKETS WHO OIL TO TARGET RURAL CONSUMERS IN NORTHERN MARKETS WHO USED LOOSE MUSTARD OIL.50 ML PACK WORTH RS 10.USED LOOSE MUSTARD OIL.50 ML PACK WORTH RS 10.

MICROMARKETING IS DIVIDED INTO 2MICROMARKETING IS DIVIDED INTO 2

TARGETINGTARGETING

• TARGETING INVOLVES EVALUATING AND SELECTING TARGETING INVOLVES EVALUATING AND SELECTING VARIOUS SEGMENTS.VARIOUS SEGMENTS.

STEPS STEPS

1. EVALUATION AND SELECTION OF SEGMENTS1. EVALUATION AND SELECTION OF SEGMENTS

2. COVERAGE2. COVERAGE

EVALUATION AND SELECTIONEVALUATION AND SELECTION

• WHILE EVALUATING MARKET SEGMENTS, TWO BROAD FACTORS WHILE EVALUATING MARKET SEGMENTS, TWO BROAD FACTORS ARE CONSIDERED:ARE CONSIDERED:

1.OVERALL ATTRACTIVENESS OF EACH SEGMENT1.OVERALL ATTRACTIVENESS OF EACH SEGMENT

SIZE, GROWTH RATE, ACCESSIBILITY, SIZE, GROWTH RATE, ACCESSIBILITY, PROFITABILITY, LOW RISKPROFITABILITY, LOW RISK

2. COMPANIES OBJECTIVES AND RESOURCE 2. COMPANIES OBJECTIVES AND RESOURCE COMPETENCIES.COMPETENCIES.

LONG TERM AND SHORT TERM OBJECTIVES LONG TERM AND SHORT TERM OBJECTIVES OF COMPANIESOF COMPANIES

ITS RESOURCES AND CAPABILITIES ITS RESOURCES AND CAPABILITIES SHOULD ALSO CONSIDEREDSHOULD ALSO CONSIDERED

COVERAGE STRATEGIESCOVERAGE STRATEGIES

1.1. UNDIFFERENTIATED MARKETINGUNDIFFERENTIATED MARKETING

IT TAKE INTO CONSIDERATION WHAT IS COMMON REQUIREMENTS IT TAKE INTO CONSIDERATION WHAT IS COMMON REQUIREMENTS AMONG CONSUMERS, AND TRY TO INCLUDE IT IN THE OFFERAMONG CONSUMERS, AND TRY TO INCLUDE IT IN THE OFFER

EX : EX : MEDIMIX---CLAIMS IT AS A BEAUTY CARE AYURVEDIC FAMILY MEDIMIX---CLAIMS IT AS A BEAUTY CARE AYURVEDIC FAMILY SOAP. SOAP.

2. DIFFERENTIATED / TARGETED MARKETING2. DIFFERENTIATED / TARGETED MARKETING

DIFFERENTIATED MARKETING STRATEGY INVESTIGATES AND DIFFERENTIATED MARKETING STRATEGY INVESTIGATES AND IDENTIFIES THE DIFFERENCE BETWEEN SEGMENTS AND TRIES TO IDENTIFIES THE DIFFERENCE BETWEEN SEGMENTS AND TRIES TO MATCH THE MARKET OFFER TO THE DESIRE AND EXPECTATIONS MATCH THE MARKET OFFER TO THE DESIRE AND EXPECTATIONS OF EACH SEGMENT.OF EACH SEGMENT.

EX : TRACTORS 25 - 30HP FOR SMALL/MARGINAL AND 50HP FOR EX : TRACTORS 25 - 30HP FOR SMALL/MARGINAL AND 50HP FOR LARGE FARMERSLARGE FARMERS

COVERAGE STRATEGIESCOVERAGE STRATEGIES

3. CONCENTRATED STRATEGY3. CONCENTRATED STRATEGY

- - CONCENTRATE ON SINGLE SEGMENT, ALSO KNOWN AS CONCENTRATE ON SINGLE SEGMENT, ALSO KNOWN AS NICHE MARKETINGNICHE MARKETING

- RISK OF CHANGING PREFERENCE OF CUSTOMERS- RISK OF CHANGING PREFERENCE OF CUSTOMERS

HUL DOMINATE THE MASS MARKET IN THE HUL DOMINATE THE MASS MARKET IN THE RURAL WITH A SERIES OF NICHE BRANDS, RURAL WITH A SERIES OF NICHE BRANDS, EACH AIMED AT SMALL SECTION OF EACH AIMED AT SMALL SECTION OF CUSTOMERS.CUSTOMERS.

EX-LIFEBUOY, LIFEBUOY ACTIVE, LIFEBUOY EX-LIFEBUOY, LIFEBUOY ACTIVE, LIFEBUOY GOLDGOLD

POSITIONINGPOSITIONING

• IT IS THE ACT OF DESIGNING THE COMPANY’S OFFERING IT IS THE ACT OF DESIGNING THE COMPANY’S OFFERING AND IMAGE SO THAT IT OCCUPIES A DISTINCTIVE PLACE IN AND IMAGE SO THAT IT OCCUPIES A DISTINCTIVE PLACE IN MIND OF THE TARGET SEGMENT.MIND OF THE TARGET SEGMENT.

• IT SERVES AS A PLATFORM FOR THE BRANDS TO REACH IT SERVES AS A PLATFORM FOR THE BRANDS TO REACH TARGET CUSTOMERS.TARGET CUSTOMERS.

POSITIONING INVOLVESPOSITIONING INVOLVES

IDENTIFYING THE USP OF THE PRODUCT AS WELL AS THAT IDENTIFYING THE USP OF THE PRODUCT AS WELL AS THAT OF THE COMPETITORS.OF THE COMPETITORS.

SELECTING THE DIFFERENCES THAT HAVE GREATER SELECTING THE DIFFERENCES THAT HAVE GREATER COMPETITIVE ADVANTAGE.COMPETITIVE ADVANTAGE.

COMMUNICATING THOSE ADVANTAGES TO THE TARGET COMMUNICATING THOSE ADVANTAGES TO THE TARGET CUSTOMERS.CUSTOMERS.

IDENTIFYING THE POSITIONING IDENTIFYING THE POSITIONING CONCEPTCONCEPT

THE MARKETER HAS TO UNDERSTAND THE CONSUMER’S THE MARKETER HAS TO UNDERSTAND THE CONSUMER’S MOTIVE WHEN HE PURCHASES A PRODUCT. THIS WILL HELP MOTIVE WHEN HE PURCHASES A PRODUCT. THIS WILL HELP IN IDENTIFYING THE POSITIONING THEM. THE MARKETER IN IDENTIFYING THE POSITIONING THEM. THE MARKETER CAN ADOPT SEVERAL APPROACHES IN POSITIONING THE CAN ADOPT SEVERAL APPROACHES IN POSITIONING THE PRODUCT IN ORDER TO DEVELOP OR ENHANCE ITS VALUE PRODUCT IN ORDER TO DEVELOP OR ENHANCE ITS VALUE TO CUSTOMER.TO CUSTOMER.

PRODUCT DIFFERENTIATIONPRODUCT DIFFERENTIATION

PRODUCTS CAN BE DIFFERENTIATED ON THE BASIS OF PRODUCTS CAN BE DIFFERENTIATED ON THE BASIS OF ATTRIBUTES LIKE FORM, FEATURES, DURABILITY AND ATTRIBUTES LIKE FORM, FEATURES, DURABILITY AND QUALITY.QUALITY.

EXAMPLE- CHOTA PEPSI, HERO HONDA(DAWN)EXAMPLE- CHOTA PEPSI, HERO HONDA(DAWN)

A GLANCE AT RURAL INDIA:A GLANCE AT RURAL INDIA:

* 46 PERCENT OF SOFT DRINKS* 46 PERCENT OF SOFT DRINKS* 49 PERCENT OF MOTORCYCLES* 49 PERCENT OF MOTORCYCLES* 59 PERCENT OF CIGARETTES* 59 PERCENT OF CIGARETTES* 18 MILLION TV SETS* 18 MILLION TV SETS* 50 PERCENT OF 2 MILLION BSNL MOBILE * 50 PERCENT OF 2 MILLION BSNL MOBILE CONNECTIONSCONNECTIONS* 53 PERCENT OF FMCG PRODUCTS * 53 PERCENT OF FMCG PRODUCTS * 59 PERCENT OF CONSUMER DURABLES ARE SOLD IN * 59 PERCENT OF CONSUMER DURABLES ARE SOLD IN RURAL INDIA.RURAL INDIA.

SELECTING THE POSITIONING CONCEPT.SELECTING THE POSITIONING CONCEPT.

• MARKETERS HAS TO SELECT A POSITIONING CONCEPT THAT MARKETERS HAS TO SELECT A POSITIONING CONCEPT THAT SERVES AS A BRIDGE BETWEEN THE PRODUCT AND THE SERVES AS A BRIDGE BETWEEN THE PRODUCT AND THE TARGET CUSTOMERS.TARGET CUSTOMERS.

• CRITICAL FACTORS THAT SHOULD BE KEPT IN MIND ARE:CRITICAL FACTORS THAT SHOULD BE KEPT IN MIND ARE:

< ATTRACTIVENESS-: DOES IT PROVIDE VALUE TO THE < ATTRACTIVENESS-: DOES IT PROVIDE VALUE TO THE CUSTOMERS?CUSTOMERS?

< DISTINCTIVENESS-: IS IT DIFFERENT FROM THAT OF < DISTINCTIVENESS-: IS IT DIFFERENT FROM THAT OF THE COMPETITORS?THE COMPETITORS?