IJIRCM
Volume 8,
(May, 2014)
(ISSN 2250-3404)
“Impact of Promotional brands of retail marketing in rural areas market”
*Dr. Amit Kumar Srivastava
**Nitesh Kumar
Abstract
Promotion of brands in rural markets requires the special measures. Due to the social and
backward condition the personal selling efforts have a challenging role to play in this regard.
The word of mouth is an important message carrier in rural areas. Infect the opinion leaders
are the most influencing part of promotion strategy of rural promotion efforts. The
experience of agricultural input industry can act as a guideline for the marketing efforts of
consumer durable and non-durable companies. Relevance of Mass Media is also a very
important factor.
The Indian established Industries have the advantages, which MNC don't enjoy in this
regard. The strong Indian brands have strong brand equity, consumer demand-pull and
efficient and dedicated dealer network which have been created over a period of time. The
rural market has a grip of strong country shops, which affect the sale of various products in
rural market. The companies are trying to trigger growth in rural areas. They are identifying
the fact that rural people are now in the better position with disposable income. The low
rate finance availability has also increased the affordability of purchasing the costly products
by the rural people. Marketer should understand the price sensitivity of a consumer in a
rural area. This paper is therefore an attempt to promote the brand image in the rural
market.
*Professor & Director, KIPM, GIDA, Gorakhpur
**Research Scholar, Mewar University, Chottorgarh, Rajsthan
INTRODUCTION
Indian Marketers on rural marketing have two understanding (I) The urban metro products
and marketing products can be implemented in rural markets with some or no change. (ii)
The rural marketing required the separate skills and techniques from its urban counter part.
Marketers have following facilities to make them believe in accepting the truth that rural
markets are different in so many terms.
(i) The rural market has the opportunity for.
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IJIRCM
Volume 8,
(May, 2014)
(ISSN 2250-3404)
(ii) Low priced products can be more successful in rural markets because the low
purchasing, purchasing powers in rural markets.
(iii) Rural consumers have mostly homogeneous group with similar needs, economic
conditions and problems.
(iv) The rural markets can be worked with the different media environment as opposed to
press, film, radio and other urban centric media exposure.
How does reality affects the planning of marketers? Do villagers have same attitude like
urban consumers? The question arises for the management of rural marketing effects in a
significant manner so than companies can enter in the rural market with the definite goals
and targets but not for a short term period but for longer duration. The Research paper will
discuss the role of regard. The strategy, which will be presented in the paper, can be either
specific or universally applicable.
Realities before the Marketers
70% of India's population lives in 627000 villages in rural areas. 90% of the rural population
us concentrated in villages with a population of less than 2000, with agriculture being the
main business. This simply shows the great potentiality rural India has to bring the much needed volume- driven growth. This brings a boon in disguise for the FMCG Company who
has already reached the plateau of their business urban India.
As per the National Council for Applied Economic Research (NCAER) study, there are as
many 'middle income and above' households in the rural areas as there are in the urban
areas. There are almost twice as many' lower middle income' households in rural areas as in
the urban areas. At the highest income level there are 2.3 million urban households as
against 1.6 million households in rural areas. According to the NCAER projections, the
number of middle and high-income households in rural India is expected to grow from 80
million to 111 million by 2007. In urban India, the same is expected to grow from 46 million
to 59 million. Thus, the absolute size India is expected to be doubles that of urban India.
HLL chairman MS Banga Says, "This exercise may not pay in the immediate future, but will
definitely give long-term dividends. Incidentally, over 50 percent of the sales of HLL's fabric
wash, personal wash and beverages are in rural areas. And we see a future in going rural in a
major way".
The improved agricultural growth is expected to boost rural demand, through not at too
sizzling a rate. Moreover, the price drop in personal products, after the recent excise duty
reductions, in also expected to drive consumption. "Better agricultural yields will give
farmers more spending power, making the rural markets bullish," says an analyst.
As a result, HLL has planned a rural marketing program that is expected to result in a
marked growth in the consumption of the company's products in the rural market. HLL will
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IJIRCM
Volume 8,
(May, 2014)
(ISSN 2250-3404)
adopt three-pronged marketing strategy- new price points, sizes and awareness campaigns
for its detergents and soaps segment to augment rural growth.
The Indian established Industries have the advantages, which MNC don't enjoy in this
regard. The strong Indian brands have strong brand equity, consumer demand-pull and
efficient and dedicated dealer network which have been created over a period of time. The
rural market has a grip of strong country shops, which affect the sale of various products in
rural market.
The companies are trying to trigger growth in rural areas. They are identifying the fact that
rural people are now in the better position with disposable income. The low rate finance
availability has also increased the affordability of purchasing the costly products by the rural
people. Marketer should understand the price sensitivity of a consumer in a rural area. The
small sachet packs are the examples of price sensitivity. Colgate has done this experiment
with launching of sachet packs for rural markets.
Companies always try to establish the contact with target market. This is a prestigious status
for company to address the customers. Company wanted to enhance its image in the minds
of common man so that in future, whenever it would be visited to customer court, it would
be having enough matter to communicate the customers. The company presents it's history
products history and even national history. Companies have these processes in all
continuance and consistency. Promotion is a term, which means the moving from one end
to another. In marketing, promotion means all those took that a marketer uses to take his
product from the factory to the customers and it involves the advertising sales promotion,
personal selling, public relations, publicity and merchandising. Promotions are result
oriented. Promotion system works with proper communication system. This has sender,
receivers and feedback system. Feedback is form of action which customer gives bark to the
company about product, advertisement or strategy.
Promotion involves the following steps:
(i) Common Understanding
(ii) Demographic and psychographics profile
(iii) Media habits
(iv) Level of Awareness.
The ultimate expectation of the company is to make the people for purchase of product.
The AIDA Model works in this process.
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Volume 8,
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The sales promotion and advertising functions and stimulate the customer purchase
decision in accordance with this model. Present research paper will examine the
comparative effectiveness issue of Sales promotion and advertising measures
OBJECTIVES
The research paper will highlight the effectiveness and applicability factors of sales
promotion and advertisement techniques. How does these techniques affect the cognitive,
affective and connective stages. The research study consists of empirical nature.
(i) To analyze the present promotion strategy of few brands in rural markets.
(ii) To measure the success of rural marketing campaign of few brands in Terms of consumer
appreciation.
(iii) To study the determinants of specification factors this can decide the success the rural
promotion strategy.
(iv) To evaluate the effects of adopting the specific brand ambassadors in the rural
marketing context.
(v) To present suffocate on above-mentioned objectives.
(ii) To study the effectiveness of Advertising on same purchase decision.
(iii) To compare the effects of both techniques.
(iv) To suggest a balancing role of both the techniques in the promotion of products
Organisations needs to promote their product or services in order to establish a foothold,
increase market share and compete, the choice of promotion depends upon various factors
internal as well as external. A brief look at various promotional strategies would enable us
to understand the concept and benefits of each of these.
Promotional Strategies can be classified broadly into two ways:
1. Pull Strategy
2. Push Strategy
Pull Strategy:
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Volume 8,
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When the promotional activities are aimed at pulling the demand for the product or service
from the consumers by influencing them through advertising or other medium it's called as
a Pull strategy. The ultimate aim is to create a demand for the offering in the marketplace.
The customer or consumer is motivated or influenced in such a manner that he or she
approaches the retailer to inquire about the availability of the product or service, the
retailer in turn is then compelled to approach the wholesaler and finally the wholesaler
approaches the company.
Examples: Mostly FMCG goods like Shampoo, Confectioneries or Cosmetics.
Push Strategy:
Exactly opposite of the pull strategy is the push strategy, wherein the sales takes place by
influencing the retailer or the dealer to push the product on its shelf and recommend the
same to the final consumer. This strategy works well when the company's product has low
visibility or the product buying decision is based highly on the recommendation of the
retailer.
Example: Computers, Automobiles, Medicines etc.
Although these two strategies are extremely opposite to each other the usage of both the
strategies simultaneously for all kind of product in the market place is a common practice.
The choice of strategy may differ with respect to the promotional budget, nature of channel
members and nature of product or service offered. Also some companies apply both the
strategies at the same time aggressively to promote a new product, which needs
penetration in the market.
Sales promotion: is one of theimportant aspect of promotion. Sales promotions are nonpersonal promotional efforts that are designed to have an immediate impact on sales. Sales
promotion is media and non-media marketing communications employed for a predetermined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include:
[1] coupons [2] discounts and sales [3] contests [4] point of purchase displays [5] rebates
Sales promotions can be focusedat either the customer, or to sales staff, or distribution
channel members (such as retailers). Sales promotions targeted at the consumer are
called consumer sales promotions. Sales promotions targeted at retailers and wholesalers
are called trade sales promotions
Consumer Sales Promotion Techniques include:
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IJIRCM
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Volume 8,
(May, 2014)
(ISSN 2250-3404)
Price work: A temporary reduction in the price
cents-off deal: offers a brand at a lowe price. Price decrease may be a percentage
marked on the package
price-pack deal: The packaging presents a consumer a certain percentage more of
the product for the same price (eg: 25% more free)
Coupons: coupons have become a standard dealfor sales promotions.
Free Standing Insert (FSI). A coupon booklet is fixed into the local newspaper for
delivery
on-shelf couponing: Coupons are placedat the shelf where the product is available.
checkout dispensers: On leaving storet the customer is given a coupon based on
products purchased
on-line couponing: Coupons are available on line. Consumers print them out and
take them to the store.
Rebates: Consumers are presented money back if the receipt and packaging is
mailed to the producer.
contests/sweepstakes/games: The consumer is automatically entered into the event
by purchasing the product.
Trade Sales Promotion Techniques include:
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Trade Allowances: short term incentive offered to induce a retailer and stockist to
stock up on a product.
Dealer Loader: An incentive/offer given to induce a retailer to purchase and display a
product.
Trade Contest: A contest or compettion to reward retailers that sell the most
product
Point-of-purchase displays: Extra sales tools given to retailers to boost sales
Training Programs: dealer employees are trained in selling skills the product
Trade Sales Promotion
Techniques Push Policy emphasizes promotions targeted on the next intermediary.
Trade Sales Promotion Techniques-influences distribution members to take products
and to market them aggressively. Producers use sales promotion techniques to
encourage distribution members to carry their products and to promote them more
effectively.
Allowances and Discounts: and Merchandise.
Finance....
Cooperative Advertising: Manufacturer agrees to pay a certain amount of
distribution media.
Training of Sales Staff
Ninth five year plan
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Volume 8,
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It gives importance to :
* Development of infrastructure
* Development of trekking, winter sports, wildlife and beach resorts
* Exploring new source markets in region and countries having cultural affinity
* Environmental protection and cultural preservation of national heritage projects
* Launching of national image buildings and marketing plans
* Providing inexpensive accommodation in different tourist centers
* Streaming of facilitation procedures at airports
* Human resource development
* Creating awareness
* Facilitating private sector participation in development of infrastructure
Research Modus Operation and Design
The research methodology for this research work is based on the survey technique. Few
brands like Coca-Cola, BPL, Asian Paints have been chosen to conduct the research work.
The Gram Panchayat areas have been selected on random basis from the list of available
Gram Panchayat. The four-Gram Panchayat have been short-listed and 60 respondents have
been selected in each Gram Panchayat so the total sample size N = 240.
The respondents were organized in a group and asked about their views on following
advertisement actions and theme.
1) In case of Coca-Cola how does the role of Aamir Khan affect the rural consumers?
2) In case of BPL Television how does Amitabh Bachchan give the impression about BPL
Brand
3) How does the advertisement of Asian Paints with the Slogan "Sunil Babu" influence the
rural consumers..
The research design applied for this purpose is experimental with descriptive. The
experimental design was suitable as the rural consumers fell interest about it and
descriptive design depends on the explanation past about the campaign of these Brands.
Conceptual Framework
Given the Literacy scenario in to consideration the promotion of Brands in rural markets
requires the special measures. Due to the social and backward condition the personal selling
efforts have a challenging role to play in this regard. The word of mouth is an important
International Journal of Innovative Research in Commerce & Management
http://www.managementalert.com
IJIRCM
Volume 8,
(May, 2014)
(ISSN 2250-3404)
message carrier in rural areas. Infect the opinion leaders are the most influencing part of
promotion strategy of rural promotion efforts. The experience of agricultural input industry
can act as a guideline for the marketing efforts of consumer durable and non-durable
companies. Relevance of Mass Media is also a very important factor. Door Darshan had
already acquired high penetration in rural households.
Now the cable and other Channels have also penetrated in rural households. The
newspapers and other printed Media are also gaining strategy but their role is still
secondary in this regard.
Results and Discussions
The field exercise has given the various inputs about the rural consumers. This experience
was unique from a marketer's point of view that the companies must have a proper
understanding of rural marketing environment at a region wise basis. The data has
tabulated in following manner. Advertisement of Coca-Cola (Acceptability pattern)
Contents
Favor
Non-Favor
No Comment
Language and content of Ad.
72%
20%
8%
Back ground effect of Ad.
50%
20%
30%
expressions and communication styles of Aamir 85%
Khan
15%
-
The Ad plays an important role for giving boost to rural consumers feeling. The feeling plays
very important role. The Language and content (72%) and expression style of Aamir Khan
(85%) play significant role.
BPL advertisement
Contents
Non-Favor
No Comment
brand 75%
20%
5%
The Action style of Amitabh Bachchan 65%
30%
5%
The language of Ad.
20%
18%
Amitabh Bachchan
Ambassador
Favor
as
a
62%
Amitabh Bachchan is a leading player in the ad feature. The Action style of Amitabh
Bachchan is a very delighted factor for rural Consumers.
Contents
Favor
Non-Favor
No Comment
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Volume 8,
(May, 2014)
(ISSN 2250-3404)
Style of Presentation
77%
20%
3%
The concept of ad.
65%
20%
15%
Interesting and delightful Ad.
63%
17%
20%
Style of presentation plays an important role. 77% is a high figure as this affects the whole
creativity aspect of any ad. The total concept and delight fulness is a strong factor for this
ad. Different Modes of promotions in rural market.
Modes
Favor
Non-Favor
No Comment
Hats
65%
30%
5%
Wall Paintings
40%
53%
7%
Melas
65%
20%
15%
Hats and Melas play a very important role in this regard. The 65% response in favor of this is
an indicator of this.
Challenges to be faced
* Many of the tourist site environments are unhealthy
* Facilities and services are poor in many sites
* There exists inadequate transportation to reach and continue the journey
* Infrastructure facility is very poor
* There is limited availability of tourism information at limited places
* There are regional conflicts due to which tourism is getting affected in some areas
* There is a lack of adequate security in some areas of the country which makes the tourists
feel insecure
Overcoming challenges
* ITDC have to be enriched so that it can provide adequate facilities at tourist sites like good
environment, tourism information, etc.
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* Present modes of transports are getting strengthened. However, the reaching tourist
spots from the nearby town/city is still a dificult one. Special attention has to be paid by
the Department of tourism so that its recommendation has to be implemented by the
Governemnt at the earliest.
* The Central and state Governments, must have special attention and invest in large to
develop the infrastructure for utilising the tourist spots.
* Tourism information must be updated often. The websites must give enriched in
formations with catchy phrases. Specific toll free numbers can be used for easy access of
information by tourists
* The Government must take action to solve security problems and regional conflicts.
* Liberalizing the visa norms can be made so that more number of tourists can arrive and
stay for more days.
* Involvement of private sector in the field can be made to serve the tourists better
* Investment in HRD programmes relating to travel & tourism industry can help to promote
it better
* There can be focussed promotion of various places to get attention of the travellers by
using aids like short films, photographs, etc.
* Clearly planned, focussed tour packages can be introduced which may attract the travelers
SUGGESTIONS
1) Rural consumer environment must be understood before the creation of ad.
2) Rural mindset accepts the brands easily, which are close to their culture. This point must
be reflected in ad for rural markets.
3) Sponsorships to the Melas and Hats must be considered in a significant manner.
4) Selection of brand ambassadors, lyrics must not be ignored in this regard.
They have a special liking for folk culture so this can be taken in an effective utilization of
brand promotions.
CONCLUSION
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It is clear that there is a wide scope for underdeveloped countries like India to promote
tourism. If India overcomes the challenges by enriching its present strategies, it will emerge
as a best tourist spot and will yield maximum foreign exchange to our country.
The process of communication starts with a clear identification of target receivers. The
target receivers will belong to i.e. potential purchasers, present users, decision makers,
influencers, individual groups, and general citizen. There can be a use of familiarity scale and
favor ability scale.
The following conclusion could be drown:
1) The Language and content must be according to the suitability of rural environment.
2) Background figures are also a deterministic factor. Background figures are also a
deterministic factor.
3) Admissibility of brand ambassadors plays an important role in this regard.
4) Special promotion measures are the strong applicable factors in this regard.
5) Advertising and Sales Promotion play an important role.
6) The Age factor plays and important role for the selection of products advertising and
sales promotion.
7) The Gender factor also plays an important role in the selection of sales promotion and
advertising.
8) The Sales promotions and advertising are not affective at some purchase stages.
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