Rural Marketing Mix- by MCC college,mulund (prashant)

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CO-OPERATIVE & RURAL MARKET SUBJECT Guidence Teacher: M/S. Archana Kadam ACADEMIC YEAR 2010 - 2011

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TABLE OF CONTENT Session 1.0 RURAL MARKETING ……. 1 a) FEATURES OF RURAL MARKET b) FACTORS TO CHANGE IN RURAL DEMAND Session 2.0 WHAT IS MARKETING MIX & IT’S 4 ‘P’S …….. 2 a) PRODUCT MIX : 1. Types Of Product 2. Product Lifecycle 3. Product strategy 4. Branding & Packaging b) PRICE MIX : 1. Pricing Methods 2.Objectives c) PLACE MIX : 1. Physcal Distribution 2. Channels of Distribution d) PROMOTION MIX : 1. Formal Media 2. Informal Media Session 3.0 CASE STUDY – Mapro Foods Pvt. Ltd. ……….. 3 Session 7.0 Conclusion ……………………………. 4

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To understand Rural Market Micro Manner Trying to Grasp Rural Indian Psyche For understanding the Manufacturer power to reach towards URBAN to RURAL India The various strategies adopted by companies to satisfied the consumers in the Rural Market

What is actually rural marketing mix?:

What is actually rural marketing mix? According to Thomson , “The mix of controllable marketing variables that the firm uses to pursue the desired level of sales in the target market with setting up different strategy for different market.” DEFINITION

Features of Rural Marketing in India :

Features of Rural Marketing in India Large and scattered market Large number of consumers Major income from agriculture Low standard of living Traditional outlook Diverse Socio-Economic background

Features of Rural Marketing in India :

Features of Rural Marketing in India Changing demand pattern Infrastructural facilities Saving habits Media research

Why companies go Rural?:

Why companies go Rural? Large population Rise in rural prosperity Growth in consumption Change in lifestyle Lifecycle advantages Market growth rate higher than urban Rural marketing is not expensive

Factors contributing to change in rural demand:

Factors contributing to change in rural demand Organized agencies of marketing Warehousing facilities Market information Development of television network Rising aspirations of rural people and attraction of higher standard of living

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Affordable prices Favorable government policies Agricultural education and research Transport system Factors contributing to change in rural demand

What is Marketing mix?..:

What is Marketing mix?.. DEFINITION OF MARKETING MIX: According to William Stanton , “ Marketing mix is the term used to describe the combination of four inputs which constitute the core of the companies marketing system: the product, the price structure, the promotional activities and distribution system.”

4 P’s of marketing mix:

4 P’s of marketing mix

What is a Product mix?:

What is a Product mix? Philips Kotler “A PRODUCT MIX is anything that can practices by marketer for attention, acquisition, use, or consumption and that might satisfy a want or need. It includes physical objects, services, persons, places, organizations and ideas.”


RURAL PRODUCT CATEGORIES Rural Product FMCG’s Consumer Durables services Agri-Inputs


FAST MOVING CONSUMER GOODS (FMCG’S) Goods which are used in day to day life Which are more useful

Consumer Durables:

Consumer Durables Tangible goods that normally survive long with a lot of usage Normally require more personal selling and service, Command a higher margin “Onida” CTV’s “Videocon” washing machine


SERVICES companies are harnessing the potential of the hireand by launching a plethora of services like, 1) Telecommunication, 2) Banking & Insurance, 3) Internet,etc.


AGRI- INPUTS Product which are used for agricultural outputs are agri inputs


PRODUCT LIFE CYCLE Seeding stage (Introduction Stage) Sapling stage (Growth Stage) Harvest stage (maturity Stage) Withering stage (Decline Stage)


SEEDING STAGE DEMAND RISE Introduce TATA Spacio LG Product usually enters the market as a new born Demerits of the product Sampoorna Cine Plus Launched

Sapling stage:

Sapling stage Product gained susbstantial recognition & it’s sales are shooting up Rivals 1 st launch Competitive Launch

Harvest stage:

Harvest stage Stage signifies a saturation point in terms of demand with heightened supply from several competitive source Price Competition & Product differentiation E.g. Age Old Mandi system of ITC

Withering stage:

Withering stage This stage shows falls in the sales volume because of falling demand E.g HUL’s FALLING SALES DUE TO DISTRIBUTION COST

Rural product strategy:

Rural product strategy Product has to be simpler and easy to use Packaging should be convenient for low price and use Instructions to use should be easy to understand Brand logo should create brand identity


Growing concern about environmental degradation Some companies showing increasing sensitivity to these issues Using more environment friendly alternatives & packaging materials like jute. RURAL PRODUCT PACKAGING

Rural packaging strategy:

Rural packaging strategy Packaging material Packaging aesthetics Package size and convenience

Rural branding:

Rural branding Brand name development eg: LG sampoorna Creating brand identity eg: TATA shakti

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Rural branding Enhancing recognition eg: Billi wala cell(ever ready batteries) Building a brand image eg: sarpanch tractors of mahindra

Threats in rural branding:

Threats in rural branding Look-alikes: eg Spell-alikes: Duplicates:

Pricing mix:

Pricing mix Generates revenue to the particular product Determine profitability of the business E.g.videocon radio

Rural pricing objectives:

Rural pricing objectives Profit maximisiation in long run eg : chik shampoo Minimum returns on sales turnover Deeper penetration of market e.g Vim Bar For Urban 15 rs . (400gm) For Rural 4rs. (200gm) Keeping up with the competition Increasing sales volumes and market shares

Rural pricing strategies:

Rural pricing strategies Low cost /cheap product Avoid sophisticated packing Refill packs/reusable packing Value engineering

Methods of pricing:

Methods of pricing Cost-plus pricing eg: onida tv igo series Value pricing eg: lifebouy

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Methods of pricing Power price point eg: marico Penetration pricing eg: chota munch Differentiation pricing eg: videocon Introduce worth rs.2

Rural distribution :

Rural distribution 1)Physical distribution 2)Channels of distribution

Physical distribution:


Channels of distribution :

Channels of distribution Old set up for distribution Wholesaler retailer mobile van weekly haats & bazar melas & fair Method of distribution Stokist vans & company own vehicle Hired vehicle. Selling through bullock cart and camel. Appointment of primary leader.

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PROBLEMS OF RURAL CHANNELS OF DISTRIBUTION Multiple tier, Hiigher cost and Administartive problem Non-availability of Dealers Poor vaibility of Retail Outlets Inadiquet Bank facilities Inadiquet Credit facilities Relying on private village shops


PROMOTION MIX FORMAL MEDIA : Local language newspapers: eg: loksatta in Maharashtra. Television: eg: DD national Radio: eg : regional radio

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PROMOTION MIX OTHER INFORMAL MEDIA : Farm to Farm/House to House Group meeting : eg: MRF tyres Opinion leaders: eg: asian paints(house painting) Melas: eg: asian paints(horn painting) Folk dances: eg: Thums-up sponsors Lavnis

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CASE STUDY MAPRO Foods Private Limited About Marketing Mix Strategies

Field Research on marketing mix of mapro foods private ltd.:

Field Research on marketing mix of mapro foods private ltd. ABOUT MAPRO FOODS PVT. LTD. : Established in 1959,almost 50 years ago at Panchagani, Mahabaleshwar Founder- Kishore Vora Products- Jams, Jellies, Juices, Concentrics and preservatives 15 th largest food producer in Maharashtra


achievements The company has obtained ISO 9001:2000 certification ISO 22000 Certification is currently under implementation and the implementation of B. R. C. Standards is being planned in the near future. Mapro has established widespread distribution channels to reach its customers in West, North and South India.


Annual TURNOVER YEARS TURNOVER IN CRORES * = expected growth

Product mix of mapro food ltd.:

Product mix of mapro food ltd. Product Category : FMCG (Fast Moving Consumer Goods) PRODUCTS JAM JELLY JUICES

Product strategy of mapro:

Product strategy of mapro Product with different flavours Attractive packaging Various product Lines e.g Jams, Juices, Choclates, Crush Easy acceseble Raw Material from Domestic Market

Product Packaging of mapro:

Product Packaging of mapro Outer lot packaging done with Sugarcane Molases Using Technique Making BEST out of WASTE PACKAGING STRATEGY : Size Convinience Plastic Bottles Wrapping Pack worth Rs. 18 Big Pack Worth Rs. 70

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Use ‘UR’ packaging as like, U : Urban Packaging - Safety, Secure, Attractive R : Rural Packaging - Standard Packing Way of Packaging..

Mapro’s branding strtegy:

Mapro’s branding strtegy Company Started it’s Journey in Rural Market itself with name MAPRO Initially they introduced Juice product By reaching huge success they starting with Crush

Mapro’s branding strategy:

Mapro’s branding strategy As natural availability of Strawberry at Mahableshwar Mapro statrted with Strawberry Jams & Jelly Choclates i.e. Falero They creat their Brand Recognition in their choclates as, “MAPRO KA STRAWBERRY WALA CHOCLATE”

Pricing strategy adopted by mapro:

Pricing strategy adopted by mapro Introduce new product with Low Cost Penetration Pricing They recover low cost at begining by purchasing Cheaper cost Higher quality Raw Material

Place mix of mapro food ltd.:

Place mix of mapro food ltd. There is Direct physical distribution in market Personal Transportation Services Domestic Markets involve Hill Station Target Audience: Rural, Urban, Local Peoples Personal warehousing Service

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No use of Media Advertisement Provision of free Samples to visitors Use of Hoarding & Banners promotion mix of mapro food ltd.

promotion mix of mapro food ltd.:

Preference given to Direct Marketing i.e. Word of Mouth Retail stores at various places Road Marketing promotion mix of mapro food ltd.

Primary fact Findings:

Primary fact Findings

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If they are more advertising through media so as profitability should be more As mapro is popular in the all over the world but they not provide different variety of product. Especially for Rural consumer there should be consumer council so as they can posted their complaints in Posted manner

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Agricultural & Rural market Author: Ramkishen Y. By Jaico Publishing House Page No. 151-155 Co-operatives & rural market Authors: V.D.Varkey. V.G.Vartak By Himalaya publication Page No. 153-157



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