Alkesh Dinesh Mody Institute for

Financial and Management Studies.

Sr.no Group name Roll.
. no.
1 Asha Narayankar 57
1 Pravin Ramakrishna 65
2 Soniya Rahate 68
3 Swapnil Shah 82
4 Karthik Shastri 85
6 Jasmin Shaikh 86
7 Pooja Soni 93
.
Project topic: Case study on M&M.

Submitted to: Prof.Sushmita Mukherji.

Subject: Marketing Management.

Nov -2004
Case study

Tractor is the major farm equipment marketed under agriculture and agriculture
durable category to rural India. Apart from is utility in farming activities, tractor is
considered as states symbol in rural area and is also used as means of conveyance
and transportation.

The tractor industry in India is segmented by horsepower (HP) into the lower
segment of 25HP and higher segment of 45HP and above. The market has
gradually shifted to medium and higher segments of HP category. Previously, the
sale of tractor was concentrated in area like Punjab, Haryana and Western Utter
Pradesh, which enjoyed the benefits of green revolution and required low power
tractors for tilling as the soil in these states is alluvial in nature.

The recent studies show this region-wise tractor sales have shifted from northern
states to other part of the counter. With an increase in irrigated cropped area, the
population of tractors started increasing in other states like the ounces situated in
west and south India. Tractor sale have also gained considerable momentum in
states like Madhya Pradesh, Maharashtra, Gujarat and Rajasthan during the past
few years. The studies also suggest fresh demand will be driven by states in the
west and south and high powered segment of the country, while Punjab, Haryana
and western Uttar Pradesh, will witness more replacement demand. The demand
will concentrate on the medium and high HP segment.

Mahindra and Mahindra (M&M) is the leader in tractor marketing in rural India
with more then 38per cent market share. M&M has a widespread and excellent
dealers and servicing network in northern part of country. Other players are Punjab
tractors, escorts, TAFE and Eicher and the competition is likely to intensify further
due to increasing presence of global players.

Some of the recent trends in rural marketing are as under:

Tractor now a day is not only considered as farm equipment in rural India,
but also perceived as family car/vehicle and transportation means in rural India.
• Opinion leaders and users play an important role in agriculture and
agriculture durable products.
 • Financing/ credit facilities, local presence and after sale service are crucial
factors for success of agricultural durable items because of huge investment
by farmers.
• All the decisions related to agriculture and agriculture durables are a
prerogative of the head of the family or the elders of the village. However,
rural youth are major decision influencers.
• In agricultural durable items, rural consumers are very alert to the value of a
product and are willing to research extensively by comparing the product
features, quality and price with option available to them.
• Apart from the use of melas, mandis, haats and vans to decimate product in
formation and increase awareness , agri-mills (such as sugar mills), rural
tournaments, service camp, factories, electricity boards and local brand
ambassadors are good vehicle to promote the agricultural durables as farmer
has ample time to spare and listen to product details and watch live
demonstrations. Considering the above points, intensifying competition,
demand in other parts of the country and future expected demand, M&M
want to re-devise its marketing strategies to retain its market leadership
throughout the country.

As a marketing consultant, please give your innovative suggestions for:

1) What strategy should the company adopt in terms of product mix

innovation/modification, pricing, distribution, after sales service and
promotion to retain its leadership?
2) Should the company rely on local youth and dealers for sales and after sales
services? What are the advantages of the same?
3) Discuss the effects of liberalization and WTO on agriculture input market in
India?

Rural marketing
 Facts

• 1982: Mahindra brand of tractors launched.

• 1983: Mahindra & Mahindra became market leader in the Indian tractor
market, a position it has retained till date.
• 2003 :
• Mahindra & Mahindra Tractors awarded the prestigious Deming Prize for
excellence in quality, making it the first tractor company in the world to
receive the award.
• India's first Turbo tractor launched - Mahindra Sarpanch 595 DI Super
Turbo
• Mahindra Group's Farm Equipment Sector is the largest producer of
agricultural tractors in India. It has enjoyed an unparalleled market
leadership in the domestic market for the last 23 years.
• With a 30% market share, the Bhoomiputra, Sarpanch and Arjun brands of
tractors give the Group's Farm Equipment Sector a presence in all the major
tractor segments in India.
• It has a large customer base of 11,00,000 satisfied customers and the
deepest distribution reach.

Case study 2004

Summary

Tractor is an agricultural durable also considered as status symbols in rural India.

Tractor is segmented by horsepower (HP) there are basically three level segments.
• Lower level i.e. of 25HP.
• Mid-level segment i.e. of 35HP.
• Higher level segment i.e. of 45HP.
Before the sale of tractors were more in area like Punjab, Haryana due to green
revolution but now it has been shifted from north to west and south part of India
like Rajasthan , Maharashtra etc. the studies shows that now-a-days demand for
mid segment and higher segment HP have increased more.
Mahindra and Mahindra (M&M) was leader in tractor marketing and
occupied 35% of market and considers has market leader and have excellent
serving network in northern part of country. their is cut threat competition between
M&M and Punjab tractors , Escorts, TAFE which is likely intensify further due to
the present of global market.

Some of the recent trends in rural markets are as under.

 In rural India tractor is used as farm equipment as well as family car/ vehicle
and transportation mean.
 Opinion leader and users play important role in agriculture and durable
produce where all the decision are taken by head of the family.
 Financing / credit facilities, local presence and after sale service are crucial
factors for success of agricultural durable items because of huge investment
by farmers.
 In agricultural durable items, rural consumers are very alert to the value of a
product and are willing to reaches extensively by comparing the product
features, qualities and price with optimum available to them.
 Apart from the use of meals, mandis, haats and vans to decimate product
information and increase awareness, agri-mills, rural tournament, services
camps, factories, electricity boards and local brands.

Q1 What strategy should the company adopt in terms of product mix

innovation/modification, pricing, distribution, after sales service and promotion to
retain its leadership?
Ans: In terms of product mix innovation / modification the company should adopt
the following strategies.

• The tractors should be designed in direct response to the customers' needs.

The company should consider increasing horse powers and corresponding
axle and transmission changes which will enable the customers to increase
their productivity and success."
• The tractors should be tough, economical and reliable.
• The products should be a complete package of a large capacity engine,
heavy-duty transmission, high lift capacity hydraulics and a very robust cast
iron chassis. These machines must perfectly suit almost all kinds of farming
operations ranging from basic chores to commercial landscaping.
• They should be loaded with a high performance engine, easy shift
transmission, advantageous single speed PTO and big lift capacity.
• Apart from farming activities they should perform operations like material
handling and transport efficiently.
• Ensure long-term structural stability.
• Better fuel efficiency
• Ergonomically designed seats.
• Comfortable rides for long hours.
• Lower engine noise.

Pricing Strategies
• Deeper penetration of market- rural markets adopted for deeper penetration
and expansion because of its size.
• Long run profit maximization- a company that enter the rural market should
not anticipate profit in the short run but wait for success in the long run.
• Recover profit through distribution cost- a company thinking of going rural
should prepare its pricing objectives in such a way that it can recover the
cost involved in distribution, production and dealer margin too.
• Competitive pricing- rural marketers study the pricing strategy of
competitors and accordingly fixed the price of the product.
• Increase sales volume and market share- one of the main objective will be to
increase the sales volume. Pricing will play an important role in order to
increase the sale volume.
Network & Distribution.

• M&M should gear up its network to satisfy and delight the customer by
providing Timely and Quality service near to the customer.
 • To address the problem of ‘DISTANCE’ traveled by customer to avail
services, the service network should be expanded by appointing
Neighborhood Service points (NSP) and Mahindra Authorized Service
Points (MASP) apart from Dealerships and their branches
• Currently, the customer can get service & Spare parts from any of the 650+
dealerships, their 413 branches, 68 MASPs and 480 NSPs. The customer
saves his valuable time and money.

After sales services of M&M.

CUSTOMER CARE
• At M&M, Customer care efforts should be put in to make Customer’s
Mahindra tractor ownership – a memorable experience.
• Programs and practices must be incorporated to enhance this experience
which must be practiced by both Dealers and M&M employees.
• Key parameters which are of prime importance to Customers like “Good
quality service in minimum time” must be taken care of by increasing
Network and Doorstep service.
• This network should also take care of Genuine Mahindra Parts
availability.
• Dealers should be geared up with equipped workshops and skilled
manpower to handle the product.
• Various innovative programs like Swasth Tractor Swasth Chalak,
Padyatra, Installation – must be encouraged & promoted to build
emotional bond and further improve Company – Customer relationship.
• The idea is to give the best experience every time Customer visits the
dealership or interacts with the company.
• Regular feedback must be taken from the customers on product and
services offered and changes in systems should be incorporated to take up
Customer experience to the next levels.

Promotion.

1. In The Year 1999, M&M went into rural Haryana with Bits New 25 HP
BLUE TRACTOR MODEL- Mahindra 255-di (all its other tractors are red).
 It has used the positioning statement “ Bade ka Faida Chhote Main”
designed to win the small farmer over on the basis of superior performance,
it avoid print and electronic media advertising and went on for on fields
activities . Philosophy: instead of waiting for the customer to approach them,
they have taken the brand to the farmers door step, it was an innovation in
delivering customer values to rural India .(Gupta 1999)

2. A study bought wide ranging customers requirements into force it realized

that farmers didn’t care about aesthetics , comfort and speed on roads beside
reliability it therefore introduced quieter tractors with more comfortable
seats and higher speed ---Ramnath & Bhardwaj 1998.

3. Mahindra Kisan Mitra - a Mahindra Initiative

Mahindra and Mahindra Ltd., Farm Equipment Sector of the Mahindra

Group brings to you MahindraKisanMitra.com, a place for the Indian farmers to
access wealth of information which is updated on a daily basis. Farmers can
check daily mandi prices, read weather updates, latest crop advisories, and agri
related news. Farmers can also read and benefit from the success stories of other
fellow farmers. The site also provides information under various other sections
such as crop information, loans, insurance, Mandi database, cold
storages/warehouses and agri events.

Q 2.Should the company rely on local youth and dealers for sales and after sales
services? What are the advantages of the same?
Ans: Advantages to Rely on local youth and dealers for sales and
after sales service.

Local youth are major influencers as they are the actual user
of the product .

Secondly the rural consumers may trust the local youth and
dealers regarding a certain product as they are one of them and
the comfort level is better as compared to appointing a person
from outside. The local dealers are within the rural areas thus
the company has better reach to the rural consumer

By employing rural youth and dealers they will work hard as

there will be increase in their standard of living and their families
thus the company will also get a good public image within the
rural areas and rural consumers will have trust in the product and
the organization. There are many examples where the rural youth
and dealers have proved to be efficient and skillful.

Rural people were unaware of renewable technologies and

would not spend their hard earned money on a technology, which
did not have efficient after sales services at the local level and no
opportunity to earn an income.

Examples are
Grameen Shakti has always emphasized community participation and
motivation as the basis of all its activities. It has employed local youth as
technicians, trained users on home based trouble-shooting, and provided
scholarships for children of its clients. Particularly it has focused on ensuring the
participation of women. This includes training women from user families on repair,
maintenance, employing local women as technicians, etcetera. GS has been pro-
active in promoting the benefits of renewable energy technologies to rural women
through demonstrations, house-to-house contacts, etc. However, GS had to
convince the rural people that renewable energy technologies provided a workable
solution to their energy problems before its financial strategy would work. To do
this, GS was pro-active in involving local communities in promoting and
implementing its programs. Local teachers and elected leaders helped GS to
explain the benefits of renewable technologies to the rural people. GS trained and
employed locals as GS certified technicians. Local employment was created and
users dealt with technicians whom they knew and trusted. GS trained users,
especially the women of the households, to take care of their systems. This also
had financial benefits. GS was able to provide repair and maintenance services at
reduced costs locally, helping it to further scale up its program. The installed
systems were in good condition, creating good will and reducing GS’s overhead
cost. In this way, a synergy between market forces and social forces was created
and sustained.

Q3. Discuss the effects of liberalization and WTO on agriculture input market
in India?

Ans: Effects of liberalization

Indirect

1] Positive

• Making agricultural market access conditions more transparent,

predictable and competitive;
• Establishing or strengthening the link between national and
international agricultural markets, and thus relying on the market for
allocating scarce resources to most productive uses.

2] Negative

• Increase in imports of crops and oil seeds

• Domestic market for certain commodities does not grow
• A comparison price of domestic and international crops, oil
seeds and food grains A comparison of international and domestic
prices sometimes does not indicate trade possibilities since freight, insurance
and related charges can make a significant difference to price. Accordingly,
prices were compared using the CIF price for importable commodities and
the FOB price for exportable commodities.

E.g. Rapeseed, mustard oil, chickpea

Comparison of domestic wholesale prices with CIF world prices for importables
and FOB world prices for exportables relevant to India reveals that liberalization of
agricultural trade would lead to an increase in export of rice and maize. On the
other hand, trade liberalization would lead to large-scale import of rapeseed-
mustard oil. Thus, one can expect that domestic prices of rice and maize would go
up and that of rapeseed mustard oil would go down because of trade liberalization.
This may have further adverse effects on rapeseed mustard.

Area, output and its producers, whereas rice and maize area, output and
producers may be affected favourably. In the case of chickpea, it appears that trade
liberalization would not xvii have significant impact on domestic prices and
production. Import would continue to fill the gap between domestic demand and
supply without seriously affecting domestic production. The country would be a
net winner in some commodities and it would be a net loser in some other
commodities.

Direct effects.

Direct effects on agricultural input are the input subsidies are cut down due to
which the Indian agricultural sector has difficulties in growing as the cost
increases and the returns are less and prices have to be kept competitive as per
global standards thus it is difficult fulfill the domestic demand with domestic
supply thus importing of agricultural products increases.

The better side of this is that the agricultural input industry has chances of growing
as it can recover its cost and earn profits. Thus these industries can go ahead export
their products and match themselves with international standard.

For e.g Mahindra & Mahindra.

The negative effects are that due to globalization many international

agricultural input industries have entered the Indian market thus there is more
competitiveness. Some subsidies that were introduced to motivate Indian farmers
to use advanced technology has adversely affected the agricultural input industry.
The supply of inputs like fertilizers, irrigation, power and credit at prices that do
not fully cover their cost. Due to which there is economic imbalance, reductions of
public investments in agricultural sector, inefficient use of resources, degradation
of environment. Total increase in the input subsidies in agriculture in 1980-81 was
2680million while it increased 27040 million such great increase has been
controlled by the liberalization policy but still domestic agriculture cannot grow
without these subsidies.

Conclusion : Liberalization of trade in agriculture will create

challenges and opportunities. Good governance and adoption of
appropriate policies, including regional cooperation, will minimize
costs and maximize benefits

Q 7: How do leading companies like Hindustan Lever Limited (HLL) &

Colgate Palmolive market their products in Rural India?

Marketing strategies of HLL

1. Traditionally, HLL uses both wholesalers & retailers to penetrate the rural
markets. A fleet of motor vans covered small towns & villages. These vans
induce retailers to stock HLL products & display advertising material in their
shops.

2. HLLL paid special attention to logistics to distribute its products to far-flung

rural markets. To meet the increase in demand effectively to rural markets,
HLL set up 10 new factories in India. It developed a channel design to make
the product available to widespread rural population.
3. In 1998, ‘Project streamline’ played an important role to enhance HLL’s
control on supply chain – a very important component desired by all
marketers. This project enabled itself to reach even unapproached villages. It
started as a pilot project in Uttar Pradesh & now being used to cover many
new villages. Each of the 450 districts in India has as many as hundreds
villages connected to them, at times even thousands. HLL appoints
redistribution stockists who approach district stockists often turned as
wholesalers, some people in remote villages are appointed as ‘Star Sellers’.
They take the stocks on credit from the redistributors & sell them in the
remote villages. As soon as the stock gets exhausted they approach the
redistributors in the district again. In this way HLL is able to penetrate
deeper & deeper into the rural market.

4. Project SHAKTI: Under this project a woman from the SHG is selected as a
shakti entrepreneur & she receives stocks of HLL products like ponds,
lifebuoy, clinic plus, lux, 3 roses tea etc. she sells these products directly to
the consumers & small merchants in & around her village. In this way she
serves 6 to 10 villages whose population range is 1000 – 2000 people. The
company gives proper training & for the first 3 months the company holds
the stocks & delivers as requirement. She begins her door – to- door selling.
Normally she earns a profit of Rs 800 – 2000 a month if she has a turnover
of Rs 10,000 -25,000 per month.

5. HLL took proper care of channel members by providing credit facility & in-
time availability.

6. HLL further developed a self – sufficient & self – supportive distributive

system within a social perspective through Self-Help Groups (SHG). SHG’s
are helpful to sell products to their own people. HLL was able to convince
villagers to buy products through this initiative.

7. The company put in effective workable efforts to increase the awareness

level of its products in the rural markets.

8. The company focused mainly on “face-to-face” approach or direct

interactions between rural consumers & company officials. To tap the rural
 market for VIM utensil cleaning bar, HLL conducted live demonstrations of
vessels cleaning with vim bar.

9. HLL took a wider & social-oriented approach to reach rural consumers

besides focusing only on the promotion of its own product. It tied up with
various NGO’s & voluntary organizations to increase the awareness about
general issues of health & hygiene.

10. HLL has achieved 20% increase in rural consumptions in the regions where
it piloted “Project Shakti “- a marketing initiative involving women
belonging to micro credit self help groups (SHGs). Going by the success of
the initiative, this was launched in Andhra Pradesh in 2001. HLL is now
looking at expanding project shakti, to Gujarat followed by Maharashtra &
Madhya Pradesh. The model consists of 15 -20 villagers below the poverty
line (Rs 750 /month) taking micro credits & using that to buy HLL products
which they then directly sell to consumers.. the co believes that through
project Shakti it would be in a position to penetrate the rural interiors which
cud prove expensive if done thro a direct or indirect distribution network.

Marketing strategies of Colgate- Palmolive.

1. Colgate stepped up its rural promotion drives along with IDA (Indian dental
association), where promotional vans do the rounds of the villages & educate
the rural folks on oral hygiene & its products like tooth pastes, tooth brushes,
tooth powders etc.
2. They have also launched programmes like “Young India Bright Smiles –
Bright Futures” school dental programmes. And various such programmes in
villages where they provide free dental check ups.
3. The roving Colgate vans after screening 22-minute film on oral hygiene that
explains how to use the products, offer sampling at stalls set up near the
vans.

In Dec 2000, the center for industrial & Economic Research conducted a survey
called “Emerging market trends” & following was the findings in the field of
creating brand awareness & penetration in the rural marketing.

HLL had the highest penetration in the above product categories.

Company Household penetration (%)

HLL 88
Nirma chemical works 56
Colgate -Palmolive 33

Q8.While ‘think local’ is the mantra for driving sales in India, ‘Act local’
could just be the new formula for connecting with the hinterland in terms of
distribution, sales force / after sale management and promotion strategies.
Elaborate with examples?

Ans: Act local

1 BY COMMUNICATING AND CHANGING QUALITY PERCEPTION

Companies are coming up with new technology and they are

properly communicating it to the customer. There is a trade-
offered between Quality a customer perceives and a company
wants to communicate.

2) BY PROPER COMMUNICATION IN INDIAN

LANGUAGE

The companies have realized the importance of proper

communication in local language for promoting their products.
They have started selling the concept of quality with proper
communication.

3) BY TARGET CHANGING PERCEPTION

If one go to villages they will see that villagers using Toothpaste,

even when they can use Neem or Babool sticks or Gudakhu,
villagers are using soaps like Nima rose, Breeze, Cinthol etc. even
when they can use locally manufactured very low priced soaps.
Villagers are constantly looking forward for new branded
products. What can one infer from these incidents, is the
paradigm changing and customer no longer price sensitive?
Indian customer was never price sensitive, but they want value for
money. They are ready to pay premium for the product if the
product is offering some extra utility for the premium.
4) BY UNDERSTANDING CULTURAL AND SOCIAL VALUES

Companies have recognized that social and cultural values have a

very strong hold on the people. Cultural values play major role in
deciding what to buy. Moreover, rural people are emotional and
sensitive. Thus, to promote their brands, they are exploiting social
and cultural values.

5) BY PROVIDING WHAT CUSTOMER WANT

The customers want value for money. They do not see any value
in frills associated with the products. They aim for the basic
functionality. However, if the seller provides frills free of cost they
are happy with that. They are happy with such a high technology
that can fulfill their need. As "Motorola" has launched, seven
models of Cellular Phones of high technology but none took over.
On the other hand, "Nokia" has launched a simple product, which
has captured the market.

6) BY PROMOTING PRODUCTS WITH INDIAN

MODELS AND ACTORS

Companies are picking up Indian models, actors for

advertisements as this helps them to show themselves as an
Indian company. Diana Hyden and Shahrukh Khan are chosen as a
brand ambassador for MNC quartz clock maker "OMEGA" even
though when they have models like Cindy Crawford.

7) BY ASSOCIATING THEMSELVES WITH INDIA

MNCs are associating themselves with India by talking about

India, by explicitly saying that they are Indian. M-TV during
Independence Day and Republic daytime make their logo with
Indian tri-color. Nokia has designed a new cellular phone 5110,
with the India tri-colour and a ringing tone of "Sare Jahan se
achcha".

8) BY PROMOTING INDIAN SPORTS TEAM

Companies are promoting Indian sports teams so that they can

associate themselves with India. With this, they influence Indian
mindset. LG has launched a campaign "LG ki Dua, all the best".
ITC is promoting Indian cricket team for years, during world cup
they have launched a campaign "Jeeta hai jitega apna
HindustanIndia India India". Similarly, Whirlpool has also launched
a campaign during world cup.

9) BY TALKING ABOUT A NORMAL INDIAN

Companies are now talking about normal India. It is a normal

tendency of an Indian to try to associate himself/herself with the
product. If he/she can visualize himself/herself with the product,
he /she becomes loyal to it. That is why companies like Daewoo
based their advertisements on a normal Indian family.

10) BY DEVELOPING RURAL-SPECIFIC PRODUCTS

Many companies are developing rural-specific products. Keeping

into consideration the requirements, a _rm develops these
products. Electrolux is working on a made-for India fridge
designed to serve basic purposes: chill drinking water, keep
cooked food fresh, and to withstand long power cuts.

11) BY GIVING INDIAN WORDS FOR BRANDS

Companies use Indian words for brands. Like LG has used India
brand name "Sampoorna" for its newly launched TV. The word is a
part of the Bengali, Hindi, Marathi and Tamil tongue. In the past
one year, LG has sold one lakh 20-inch Sampoorna TVs, all in
towns with a population of around 10,000. By the end of 1999,
roughly 12Thats Rs 114 crore worth of TV sets sold in the villages
in a year.
12) BY ACQUIRING INDIAN BRANDS

As Indian brands are operating in India for a long time and they
enjoy a good reputation in India. MNCs have found that it is much
easier for them to operate in India if they acquire an Established
Indian Brand. Electrolux has acquired two Indian brands
Kelvinator and Allwyn this has gave them the well-established
distribution channel as well as the trust of people, as people
believe these brands. Similarly Coke has acquired Thumps up,
Gold Spot, Citra and Limca so that they can kill these brands, but
later on they realized that to survive in the market and to
compete with their competitor they have to rejuvenate these
brands.

13) BY EFFECTIVE MEDIA COMMUNICATION

Media Rural marketing is being used by companies. They can

either go for the traditional media or the modern media. The
traditional media include melas, puppetry, folk theatre etc. while
the modern media includes TV, radio, e-chaupal. LIC uses puppets
to educate rural masses about its insurance policies. Govt of India
uses puppetry in its campaigns to press ahead social issues.
Brook Bond Lipton India ltd used magicians electively for launch
of Kadak Chap Tea in Etawah district. In between such a show, the
lights are switched o_ and a torch is ashed in the dark
(EVEREADYs tact). ITC's E-chaupal (chaupal is the common place
where villagers gather) has been the most elaborate and
extensive venture in this _eld so far. Conceived by ITC's
international business division and launched in 2000, the E-
chaupal project has since grown to around 2,700 chaupals
covering a population of around 1.2 million in _ve states { Madhya
Pradesh, Karnataka, Andhra Pradesh, Uttar Pradesh and
Maharashtra.

Rural marketing requires the understanding of the

complexities and this article reviews some of the key issues.
Indian agricultural industry has been growing at a tremendous
pace in the last few decades. The rural areas are consuming a
large number of industrial and urban manufactured products. The
rural agricultural production and consumption process plays a
predominant role in developing the Indian economy. This has
designed a new way for understanding a new process called Rural
Marketing. The concept of rural marketing has to be distinguished
from Agricultural marketing. Marketing is the process of
identifying and satisfying customers needs and providing them
with adequate after sales service. Rural marketing is deferent
from agricultural marketing, which signifies marketing of rural
products to the urban consumer or institutional markets. Rural
marketing basically deals with delivering manufactured or
processed inputs or services to rural producers, the demand for
which is basically a derived outcome. Rural marketing scientists
also term it as developmental marketing, as the process of rural
marketing involves an urban to rural activity, which in turn is
characterized by various peculiarities in terms of nature of
market, products and processes. Rural marketing defers from
agricultural or consumer products marketing in terms of the
nature of transactions, which includes participants, products,
modalities, norms and outcomes. The participants in case of Rural
Marketing would also be deferent they include input
manufacturers, dealers, farmers, opinion makers, government
agencies and traders. The existing approach to the rural markets
has viewed the markets as a homogeneous one, but in practice,
there are significant buyers and user deference’s across regions
as well as within that requires a deferential treatment of the
marketing problems. This deference’s could be in terms of the
type of farmers, type of crops and other agro-climatic conditions.
One has to understand the market norms in agricultural input so
as to devise good marketing strategies and to avoid unethical
practices, which distort the marketing environment. Many of the
inputs used for production process have implications for food,
health and environmental sectors. Rural marketing needs to
combine concerns for product with a concern for the society,
besides being titled towards product. Rural market for agricultural
inputs is a case of market pull and not market push. Most of the
jobs of marketing and selling is left to the local dealers and
retailers. The market for input gets interlocked with other markets
like output, consumer goods, money and labor. The importance of
rural marketing can be understood from the fact that today
modern inputs i.e. diesel, electricity,
 Fertilizers, pesticides, seeds account for as much as 70Green
Revolution areas. Further the percentages were higher at 81of
land. Strategic aspects Rural marketing in India is not much
developed there are many hindrances in the area of market,
product design and positioning, pricing, distribution and
promotion. Companies need to understand rural marketing in a
broader manner not only to survive and grow in their business,
but also a means to the development of the rural economy. One
has to have a strategic view of the rural markets so as to know
and understand the markets well. In the context of rural
marketing one has to understand the manipulation of marketing
mix has to be properly understood in terms of product usage.
Product usage is central to price, distribution, promotion,
branding, company image and more important farmer economics,
thus any strategy in rural marketing should be given due attention
and importance by understanding the product usage, all elements
of marketing mix can be better organized and managed.

14) BY ADOPTING LOCALISED WAY OF DISTRIBUTING

Proper distribution channels are recognized by companies. The

distribution channel could be a Big scale Super markets, they
thought that a similar system can be grown in India. However,
they were wrong, soon they realized that to succeed in India they
have to reach the nook and the corner of the country. They have
to reach the "local Paan wala, Local Baniya" only they can
succeed. MNC shoe giants, Adidas, Reebok, Nike started with
exclusive stores but soon they realized that they do not enjoy
much Brand Equity in India, and to capture the market share in
India they have to go the local market shoe sellers. They have to
reach to local cities with low priced products.

15) BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES

MNCs have realized that in India celebrities enjoyed a great

popularity so they now associate themselves with Indian
celebrities. Recently Luxor Writing Instruments Ltd. a JV of Gillette
and Luxor has launched 500 "Gajgamini" range of Parker Sonnet
Hussain special edition fountain pens, priced at Rs. 5000. This pen
is signed by Mr. Makbul Fida Hussain a renowned painter who has
created "Gajgamini" range of paintings. Companies are promoting
players like Bhaichung Bhutia, who is promoted by Reebok, so
that they can associate their name with players like him and get
popularity.

16) MELAS

Melas are places where villagers gather once in a while for

shopping. Companies take advantage of such events to market
their products. Dabur uses these events to sell products like
JANAM GHUTI(Gripe water). NCAER estimates that around half of
items sold in these melas are FMCG products and consumer
durables. Escorts also displays its products like tractors and
motorcycles in such melas.

17) PAINTINGS

A picture is worth thousand words. The message is simple and

clean. Rural people like the sight of bright colours. COKE, PEPSI
and TATA traders advertise their products through paintings.