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Targeting, Segmenting and Positioning in Rural Marketing

This document discusses segmentation, targeting, and positioning in rural Indian markets. It begins by outlining the large size and purchasing power of rural populations in India. It then discusses segmenting rural markets based on measurable, accessible, differentiable, and substantial criteria like geography, demographics, and psychographics. Examples are given of mass, segment, niche, and micro marketing approaches in rural India. Key aspects of rural populations like income sources, occupations, education levels, and household types that influence segmentation are also outlined. The document concludes by discussing evaluation and selection of target segments as well as coverage strategies like undifferentiated, differentiated, and concentrated marketing.

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12K views52 pages

Targeting, Segmenting and Positioning in Rural Marketing

This document discusses segmentation, targeting, and positioning in rural Indian markets. It begins by outlining the large size and purchasing power of rural populations in India. It then discusses segmenting rural markets based on measurable, accessible, differentiable, and substantial criteria like geography, demographics, and psychographics. Examples are given of mass, segment, niche, and micro marketing approaches in rural India. Key aspects of rural populations like income sources, occupations, education levels, and household types that influence segmentation are also outlined. The document concludes by discussing evaluation and selection of target segments as well as coverage strategies like undifferentiated, differentiated, and concentrated marketing.

Uploaded by

m_dattaias
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Targeting, Segmenting and

Positioning
Potential of rural market
• Large population
• 70% of India’s population lives in rural areas
• Purchasing power
• Increasing
• Effective communication
• IT penetration
• Impact of globalization
• Saturated urban market
Segmentation
• Dividing heterogeneous market into sub –
markets

• Heterogenity
• Population size, socio – cultural difference
between regions, difference in income level, family
structure
Requisites for effective
segmentation
 Measurable
 Accessible
 Differentiable
 Substantial

 Example:- Bajaj Auto Ltd


Degrees of segmentation
1.Mass marketing:
• Most marketers used this in rural markets
• All consumers being treated the same
• company could target maximum no. of
consumers
• First step in marketing-less market
knowledge
• Eg 1:
• HLL offered Surf to all consumers.Then
Nirma entered,seized the market share of
low income households.Then HLL
introduced Wheel
Eg 2;
Colgate palmolive successfully marketed
same toothpaste to all consumers in urban
and rural market. Recently they introduced
Cibaca when the rural market became
more demanding
2.Segment marketing
• Identifies customers as different groups
• Eg1 :Colgates 10gm sache in 2000 aimed
rural consumer
• Eg2:LG’s low cost television Sampoorna
(1999)
• Britannia introduced smaller pack sizes of
Tiger biscuits in 1998,Rs4,Rs 2 Rs 1 pack
3.Niche marketing
• Serves selctively one or a few customer
groups
• Niche marketing is used when there is a
small group with specific need .Our rural
amrket is not matured to this level
Eg: Hero Honda bikes, Nokia mobiles
4.Micro marketing
• Focus on individuals or very small groups
• To satisfy a particular taste or need
Eg: Dabur launched Anmol,a mustard and
amla based hair oil to target rural
consumers in northern markets who used
loose mustard oil.50 ml
pack worth Rs 10.
Micromarketing is divided
into 2
i)Local marketing
• This involves designing brands and
promotions to suit the needs of local
customers on the basis of geography and
demography.
Eg:Philips promotion programme in Tamil
Nadu Engavetta superstar.In TN
Rajnikanth is the superstar
• In Andra pradesh they launched the
campaign maa inti megastar. In AP
Chiranjeevi is the megarstar
• This strategy helped them to increase their
television sales by 25-30%
Eg 2. MRF introduced nylon bullock cart
tyres.They used the muscleman symbol as
well as their leadership in tyres.Finally the
communication revolved around the brand
name and its meaning viz., Pahalwan –
Muscleman.MRF became the leader.
ii)Individual marketing
• Individual can get the product made
exactly to his need
Eg: carpentary,tailoring
Segmentation
Process of diving a heterogeneous
market into several sub markets or
segments, each of which tends to be
homogeneous in all aspects.
• Geographic
• Demographic
• Psychographic
• Behavioral
Geographic Segmentation.
Commercial North Emotionally
Aggressive expressive
Dominant
Big is beautiful Generous
Open to new products

East
West Sensual
Geographic Segmentation.. Assertive Women
Leisure
Simple life Men
Money is god Socialistic,idealistic
Democratic

Family centric
South
Simplicity Sensual, rational Health Conscious
Diligent
Cleanliness/Hygiene
Culturally Conscious
• Village Population and Density
size of population- a major factor
that determines the overall potential
demand for a product/service.
Class I- population over 5000.
Class II- population between 1000- 5000
Class III- population less than 1000.
• Climate
– Climatic conditions play an important role.
Eg: talcum powder in hot and humid regions,
and health tonics in winter.
• Culture
– Society and culture provide insights into the
attitudes of people and their needs.
Demographic Segmentation
• Age and Life Cycle
– Pre Independence
– Pain of Nation Building(Post Independence)
– Pain of Liberalization(1985 onwards)
– Liberalization Children( 1990 onwards)
– Millennium Children( 1997 Onwards)
Marketers target the age group of 8 – 15,
exposed to urban markets; education;
Old age and above the age of 35- influenced by
traditional customs.
Demographic Segmentation
• Family Structure
– Joint family and large families still
predominate.
– Increase in family size- increase in
consumption.
– Also leads to multi brand consumption.

– Increasing nuclear families- greater demand


of products, esp. consumer durables like TV,
cooker, LPG connection.
Demographic Segmentation

• Income
– Income is seasonal( post harvest for farmers)
or Weekly/daily( Wage Earners) .
– Multiple sources of income( agriculture, dairy
etc)
– Agricultural income is not taxable.
Demographic Segmentation
• Landownership
– 55% of income in rural areas coming from
agriculture.
• Marginal Farmers- holding upto 1 Hect
• Small Farmers- 1-2 hect
• Semi-medium Farmer- 2-4 hect
• Medium Farmer- 4- 10 hect
• Large Farmer- 10 hect and more
Demographic Segmentation
• Occupation
– Farm based occupations.
– Cultivators: farm owners, marginal farmers.
– Agri and non agri labour.
– Poultry, dairy
– Salary earners: doctors, teachers.
– Traders, micro entrepreneurs.
Demographic Segmentation
• Education and House types
– Education: Illiterate, Below SSC, SSC/HSC,
College
– Houses: Pucca, Semi -Pucca, Kuccha.
• Religion and castes
– Differences in religion and caste visible in
terms of settlement patterns in villages.
– Village shops are demarcated along similar
lines.
Psychographic Segmentation
In Rural India.
Psychographics include
personality traits, lifestyle & value
system.
Rural India.
• The slowdown experienced by India on
account of the IT (information technology),
real estate, financial services and
automobile sectors was an urban
phenomenon .
• 15.6 million middle class house holds in
rural India.(http://madisonindia.com/rural_middle_class.pdf )
• Rural households form 72% of the total
households.
Over 400 school children from the city and
different rural areas across the country
gathered in New Delhi in April 2008 for a
unique three-day fun-filled interaction.
‘Pratibimb’ (source : IBEF)
Some Examples
• Affordability -- Godrej introduced three brands of Cinthol, Fair Glow
and Godrej (soap) in 50-gram packs, priced at 10 cents; Adidas and
Reebok increased their sales by 50% in rural markets by reducing
prices.

•  Size and design changes -- Videocon introduced a washing


machine without a drier for US$60; Philips launched a low-cost
smokeless chulha(stove); DCM Shriram developed a low-cost water
purifier especially for rural areas.

• Improving product acceptance -- LG Electronics developed a


customized TV (cheap and capable of picking up low-intensity
signals) for the rural markets and christened it Sampoorna. It sold
100,000 sets in the first year; Coca-Cola provided low-cost iceboxes
as regular power outages meant families could not depend on
refrigerators.
MRUC and IRS classification of
social class.
• Education of the chief wage earner.

• Ownership of durables.

• Type of house.
Lifestyles
• Trendsetters

• Adopters

• Traditionalists
Behavioral segmentation
• Occasions
• Benefits sought
• User status
• Usage rate
• Loyalty status
• Place of purchase
Targeting
• Targeting involves evaluating and
selecting various segments.
Steps
1. Evaluation and Selection of segments
2. Coverage
Evaluation and Selection
• While evaluating market segments, two broad
factors are considered:
1.Overall attractiveness of each segment
Size, Growth rate, Accessibility, Profitability, Low risk

2. Companies objectives and resource


competencies.
Long term and short term objectives of companies
Its resources and capabilities should also
considered
Coverage strategies
1. Undifferentiated Marketing
It take into consideration what is common
requirements among consumers, and try to
include it in the offer
Ex : Medimix---claims it as a beauty care
ayurvedic family soap.
Coverage strategies
2. Differentiated / Targeted Marketing

Differentiated marketing strategy investigates


and identifies the difference between
segments and tries to match the market offer
to the desire and expectations of each
segment.

Ex : Tractors 25 - 30HP for small/marginal and


50HP for large farmers
Coverage strategies
3. Concentrated Strategy
- Concentrate on single segment, also
known as niche marketing
- Risk of changing preference of
customers
HUL dominate the mass market in the rural with a series
of niche brands, each aimed at small section of
customers.
Ex-Lifebuoy, Lifebuoy Active, Lifebuoy Gold
CHOOSING A COVERAGE
STRATEGY

Variables Strategy

Undifferentiated Differentiated Concentrated

Company resources Moderate Large Limited

Product variability Less More Less

Product lifecycle stage Introduction Growth Introduction/Maturity

Market variability Less High High


POSITIONING
• It is the act of designing the company’s
offering and image so that it occupies a
distinctive place in mind of the target
segment.
• It serves as a platform for the brands to
reach target customers.
POSITIONING INVOLVES
Identifying the USP of the product as well
as that of the competitors.

Selecting the differences that have greater


competitive advantage.

Communicating those advantages to the


target customers.
PERCEPTUAL MAP
SUPERIOR
QUALITY

VIDEOCOM

LG

BPL
SAMSUNG
ECONO
EXPEN
MICAL
SIVE

SALORA

JOLLY

INFERIOR QUALITY
Identifying the Positioning
Concept
The marketer has to understand the
consumer’s motive when he purchases a
product. This will help in identifying the
positioning them. The marketer can adopt
several approaches in positioning the
product in order to develop or enhance its
value to customer.
PRODUCT DIFFERENTIATION
Products can be differentiated on the basis of
attributes like form, features, durability and
quality.

Example- Chota Pepsi, Hero Honda(Dawn)


SERVICE DIFFERENTIATION
Service may be differentiated in respect of
delivery, installation and maintenance.

Long warranty periods, free service


coupons,24 hours service, emergency
care, etc are some example.
PEOPLE
Celebrities who are widely respected and
admired by consumers bring a
differentiation to the image of products and
services.
Example-Idea
IMAGE
Image is built by advertisements, symbols,
signs, colors, logos and the general
reputation of the company.
A glance at Rural India:
* 46 percent of soft drinks
* 49 percent of motorcycles
* 59 percent of cigarettes
* 18 million TV Sets
* 50 percent of 2 million BSNL mobile
connections
* 53 percent of FMCG products 
* 59 percent of consumer durables are
sold in rural India.
Selecting the Positioning
Concept.
• Marketers has to select a positioning
concept that serves as a bridge between
the product and the target customers.
• Critical factors that should be kept in mind
are:
< Attractiveness-: Does it provide value
to the customers?
< Distinctiveness-: Is it different from
that of the competitors?
< Pre-emptive-: Is it very difficult for the
competitors to copy it?
< Affordability-: Can buyers pay for it?
< Communicability-: is the product
difference easily visible and expressed?
DEVELOPING THE CONCEPT
• The marketers should try to bring
positioning concept as close as possible to
the target customers, to ensure it appeals
them.

• With the help of various media and


advertising strategies.
Communicating the Concept.
• Deciding how many ideas/ differences to
promote.

• Deciding on which position to promote.


Conclusion

• “ Rural people may be old fashioned but it


takes modern and innovative marketing
strategies to win them.”
R.V.RAJAN

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