Presentation on Segmenting & targeting the Rural Market

Presented by. Mr. Prashantkumar Mr. Anand Mr. Simon. Mr. Kothari Mr. Sagar

What is Rural

What is Urban?

SEGMENTATION
Segmentation is the sub-division of a market into homogeneous subsets of Consumers where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix.

Heterogeneity in Rural markets

Socio-cultural difference Variation in population size & population density of village Difference in level of infrastructural development (developed Vs Developing states) Media exposure level Variation on literacy level Difference in income level & pattern of incomr flow Family structure

Pre-requisites for effective Segmentation

Measurable Accessible Differentiable Substantial 1. Homogeneity. 2. Size.

Degrees of Segmentation
Mass Marketing Segment Marketing Niche Marketing Micro Marketing 1. Local marketing 2. Individual Marketing

Bases of Rural Consumer Markets

On the bases of Geographic Segmentation On the bases of Demographic Segmentation On the bases of Psychographic Segmentation On the bases of Behavioral Segmentation On the bases of Multi-attribute Segmentation

Targeting
Once segmentation has been done, one needs to evaluate each segment to decide which segment to target. Targeting involves steps 1. Evaluating the segment attractiveness 2. Selecting the segment for targeting 3. Choosing the coverage strategy

Evaluation of segments
Overall attractiveness 1. Size 2. Growth rate 3. Accessibility 4. Profitability 5. Scale economies 6. Low risk

Evaluation of segments
Company objective & resource competencies Marketer should evaluate the segment opportunities with the reference to their short term & long term objectives. If Cos objectives are to achieve long-term sustainable sales volume by expanding consumer base. For Ex. Asian Paints, HUL, & Colgate Palmolive

Selection of Segments
After evaluating segments according to the mentioned factors, segments can be selected by rating them on a pre-determined scale(low, medium, high) with respect to the evaluation factors. Finally, segments can be ranked on the score obtained, & those with the highest scores can be selected as target segment to enter the rural market

Coverage of Segment
Undifferentiated differentiated Concentrated

Mass marketing (Nirma)

Segmented marketing (Lifebuoy)

Niche marketing (Multiple brands soaps of HUL)

Choosing Coverage strategies

The marketers approach towards strategy selection changes with the reference to the state 4 variables 1. Company resource 2. Product variability 3. PLC stage 4. Market variability

For Example
Mahindra & Mahindra as well as other tractor Companies have adopted a differentiated strategies as these Companies have large source & more product variability also, the products is in the growth stage in the market, & has a market viability.

THANK YOU