Products in Rural Marketing

For rural markets, marketers classify products in four major categories which are:

Rural Product Categories

FMCG

All consumables that people buy on a regular basis fall under the FMCG category. Toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged meals and domestic accessories are among the most prevalent items on the list. Companies such as HUL, Dabur, Marico, Colgate Palmolive, Nirma, CavinKare and Godrej are major players offering FMCG goods in the rural markets. According to ASSOCHAM’s analysis, companies such as Hindustan Unilever Ltd. and Dabur India get almost half of their revenues from rural India. Colgate Palmolive India and Marico account for roughly 37% and 37% of the market, respectively. Rural markets accounts for nearly 25% of revenues for companies such as Nestle India Ltd. and GSK.

Consumer Durables

The price of consumer durables such as refrigerators, TVs, air coolers and fans is a crucial element in purchase decisions in rural areas. Televisions, refrigerators, air coolers, ceiling fans are among the key durable products and appliances sold in the rural markets. LG, Samsung, Voltas, Blue Star, Whirlpool and other important international and local firms are represented in the industry.

Agricultural Goods

The rural folks continue to be interested in agricultural products and marketing. Due to the greater access to agricultural land which can be used for production, majority of agricultural produce comes from the rural market. Agricultural products have distinct characteristics, which are as follows: ‰‰

• Uncertainty: Because the agricultural produce in the country is entirely dependent on rainfall, there is a great deal of uncertainty. Forecasting the volume and output is quite challenging. The cultivator can only plan the production of a specific crop; nevertheless, the final output is determined by factors such as weather, disease, pests, fertilisers and other factors over which has no control. As a result, things are uncertain when it comes to agricultural produce.
  
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• Heterogeneity of produce: Agricultural output cannot be controlled in the same way that other items can. A lack of quality consistency makes gradation and assortment extremely challenging for marketers.
  
  
• Perishability: Agricultural items have a higher perishability than industrial goods. However, some crops, such as rice and wheat, can keep their quality for a long time till the time they reach the final customer. As a result, the marketer must keep it appropriately and make it available to consumers as soon as possible.
  
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• Seasonality: Seasonal agriculture is a problem in itself and it is impossible to eliminate because production cannot be modified to meet demand. As a result, a consistent supply of agricultural produce throughout the year need enough and vast storage capacity.

Services

The activities which supports business yet does not deliver any tangible commodity are called services.

Characteristics of Business Services are:

• don’t have their physical presence
• no consistency in the services as like in physical products
• Inseparability as production and consumption are simultaneous
• cannot be stored
• provided according to the requirement

Rural Packaging

Product packaging decision is a major challenge for marketers in rural areas. Since rural customers have their own criteria of evaluating and choosing brands, it is important to understand how they select their brands and what factors are associated with it. Research shows that the size of the pack plays a vital role while choosing a brand. Apart from that, rural consumers select a particular brand based on affordability, brand image, personal usage experience, opinion of the retailers, storability, contents display, logo, colour, etc.

Hence, the issue of packaging is crucial when it comes to marketing of brands in rural areas. In fact in rural markets, brand recognition generally happens through its colours, logos, shape and size. A brand name in the rural area facilitates easy brand recall and in drawing any colours, visual or numeric association.

In rural areas, there exist readability issues with customers. Thus, it is important for companies when packing consumer products for rural markets to use prominent symbols and colours in order to ensure that illiterate consumers will be able to recognise the products Therefore, communicating brand values through the package rather than with words.

Branding in Rural India

A brand is something that differentiates a product from others. With its insignia and motto, it has its own commercial identity. When we think of brands in rural markets, we think of Rajdoot Bikes, Ghari Detergent, Dolly TV and trendy shampoo, to name a few. According to the findings, in rural India, good quality, value for money and a feeling of brand identity are likely to be major determinants of an FMCG brand.

In rural India, better finish and excellent aesthetics, as well as retailer recommendations, are found to be major predictors of a consumer durable brand. Let us also discuss agricultural inputs such as pesticides, fertilisers, manure, seeds, tractors, harvesters, pumps and threshers. Marketers are implementing a market specialisation strategy in this regard. Farmers are also getting more interested in HYV seeds.

It is a well-known truth in rural areas that price plays an essential influence in the purchase of products in rural markets. The Rural India scenario is evolving as a result of the New Era of Marketing. The rural customer has now grasped the benefits of branding, thanks to Coca-Cola firms accessing these regions with low costs (chota coke). With reference to research articles, however, no evidence is available to demonstrate a relationship between the extent of branding and customer approval.

Marketers recognise that standard means of market penetration and brand promotion used in urban India are frequently not practicable in a market where life revolves around deeply ingrained communal values, joint families and societal norms and taboos (women, for example, are not allowed to wear trousers). However, over the years, rural India has undergone a transformation. With media exposure and increased literacy levels, people in rural India also want a better lifestyle.

Direct media promotions have aided in the development of product knowledge and the modification of long-held lifestyle habits. Colgate-Palmolive, a leading oral hygiene product maker, entered the rural market at a period when “Neem” twigs were becoming increasingly popular. When it comes to creating brands in rural regions, Colgate and CavinKare have demonstrated the importance of communication.

Although price is crucial, quality is also vital to rural consumers. A purchase is a larger investment for rural consumers than it is for urban, seasoned buyers. As a result, a brand will only be rewarded if it earns the trust of rural consumers through continuous product quality. However, once converted, rural consumers are fiercely devoted to the brand. This will be a difficult issue for corporations to address as they plan their brand entry strategy and determine how to balance pricing and brand quality.

In rural India, personalised and inexpensive products, effective distribution and targeted marketing campaigns are all important aspects in establishing brand reputation. Brand knowledge and trust will be crucial in resisting the onslaught of local imitation businesses that pose a serious threat.

Fake Name

Fair & Lonely, Daily Milk and Lifebody soap are well-known brands in India’s hinterlands. They sound similar to Dairy Milk, Life Buoy and Fair & Lovely, don’t they? They not only sound, but they also appear such as the real brands. These brands are formed by companies who make low-cost knockoffs of well-known names. Fake brands can be found in both the rural and the urban areas. However, the problem is more acute in rural areas, particularly in deep pockets where access is limited and people have little understanding of original brands. Fake brands are identified under two broad categories, namely

• Counterfeit products: Counterfeit products are those that have the same product name, packaging, graphics and colour scheme as the original manufacturer, as well as the same name and address. Except for the legal owner of the real products and trademarks, they look perfectly as real products.
  
  
• Pass-off products: Pass-off products are those that have a similar sounding name or spelling, as well as comparable packaging and design. These items are designed to deceive clients who are ignorant or in a rush to make a purchase.

Most FMCG firms have been unable to establish an effective distribution network in such locations. Local entrepreneurs are well aware of the difficulties they face. As a result, they take advantage by producing low-cost knockoffs of authentic brands, deceiving rural buyers. These producers benefit from the fact that they are local and thus arrive in stores before the original brands. In general, brands suffer not only in terms of money, but also in terms of brand image, which cannot be tolerated in any case. As a result, numerous businesses have devised distinct tactics to overcome their inadequacies in rural markets and combat the spread of counterfeit goods.

Companies such as Coca-Cola have devised a sophisticated strategy to combat the threat of duplicate manufacturing by rewarding informants. The company has consumer response coordinators spread across the country who work with their teams to proactively address consumer issues such as overcharging and bogus bottling.

It also has a big network of route salesmen who have one-on-one relationships with the stores on their beat and keep their ears to the ground for new information. They alert company officials when they notice suspect activities. Stopping the counterfeit market is a slow process, but it is more vital for businesses to educate consumers about the negative consequences of such counterfeit products and the dangers they bring.