Product innovation for rural marketing

1. RURAL MARKETING -
KADAM
PRN NO - 17050143089
17050143062
17050143053
17050143099
17050143106
17050143115
GROUP 3

2. PRODUCT DESCRIPTION - KADAM
INSIGHT: 70% of rural India still depends on agriculture for livelihood. Farmers spend a
majority of their lives on their feet, working in the fields mostly barefoot because
footwear available in rural India are not waterproof and sturdy enough for farming, this
leads to most farmers having cracks and injured feet. Hence we came up with
“KADAM"
WHAT IS KADAM? - Kadam is a waterproof, abrasion resistant footwear that is farming
friendly. It is specially designed to tackle farming wear and tear. It’s light, long lasting,
waterproof and extremely comfortable to let the bread winners of the nation work
comfortably.
ABOUT THE PRODUCT - The product will be catering to the requirements of the rural
industry. A significant proportion of the rural audience are engaged in agriculture and
farming activities, who lack the necessary footwear to work in extreme
conditions. Flooding is common, and farmers often work for 8-12 hours at a stretch, with
the majority of them working barefoot. Our footwear is designed with Thermoplastic
polyurethane outsole which is long lasting, as well as abrasion-oil and chemical
resisting. It is lighter than rubber footwear and prevents the material from splitting as
well. Water proof : Our footwear comes with waterproof leather combined with a
waterproof membrane lining, which keeps the moisture out while providing air
circulation.

3. 4P'S/4A'S
The product will meet the needs and expectations of the farmers, due to its
functional acceptability factor, The product’s features along with the benefits
offered (durability,comfort), contributes to its functional acceptability.As the
product launched has been towards a social angle and to facilitate farmers, it
will be perceived in a favourable, positive manner by the target group.
Hence being psychologically acceptable as well.
ACCEPTABILITY / PRODUCT
Through mass production, the footwear would be available at an
affordable rate to the rural market.
The product would be priced around 250-300 Rs. Pricing it at a
lower rate might cause the farmers to assume that the footwear to
be of inferior quality, and hence available at a cheaper rate.
As the product meets the requirements of the farmers, the price will
be worth the footwear and affordable as well.
AFFORDABILITY / PRICE

4. 4P'S/4A'S
Sustainable shoes being the product, for the benefit of farmers, we decided to target
villages having a minimum population of 5000 at least. Let’s assume to target the
villages around Kanpur for purpose of understanding. A feeder town will work as a
hub (example: Kanpur) where the product will be sold in exclusive outlets known to
cater to people from rural areas. Using the hub and spoke model primarily, we
decided to ensure the product’s availability in majority of the prominent villages
based on its proximity to the hub, and its population through a well-equipped
distribution network. This is mainly because the closer the village is to a feeder town,
the more its purchasing power. Via rural retailers the product will be distributed to
well stocked outlets in villages known to attract crowds from other less equipped
villages, that are further away from the feeder town. Through the hub and spoke
model, we hope to attract villages up until the last mile as it’s extremely cumbersome
to ensure the product’s presence in every village there is that surrounds the feeder
town. In addition to this, we will also employ a sales force that will travel in distributor
vans to the said villages to educate consumers on the product, while also trying to
push sales.
AVAILABILITY/ PLACE

5. 4P'S/4A'S
There are 2 aspects to be considered while planning promotional activities:
1. Activities to encourage retailers and dealers to keep stock of the product &
2. Activities to encourage consumers to purchase the product.
Under the former, we decided to go with a store optimization strategy that would include:
Branding on in-store desks, head plate of the store, counter, etc, Loyalty programs via texts,
Branding via hoardings, tin plates, etc., Daily contests through which customers could win
something. Ex: Lucky draw, A promotional booklet can be given out at retail stores to
educate consumers about the product in their regional language, Increase the margin %
paid to the distributors or give them incentives to push them to want to stock your product,
Conduct bi monthly meets to engage with distributor networks to identify pain points, how
to better the current network & build camaraderie with them.
Under the latter, we decided to first conduct a pilot testing in one of the hub centers and its
surrounding villages before launching the product across India. A pilot test will help us
identify what works and what doesn’t work before launching the product nationwide. It will
include advertising through channels such as Radio, OOH, Print & Mobile, topped with an
on-ground campaign to conduct product demonstrations. We felt Product Demonstrations
would be essential to increase product consideration levels amongst customers since the
product in questions is a first of its kind. A clear understanding of its benefits is essential to
justify the money spent on the product to the customers. Awareness on the on-ground
campaign will be spread through Mobile, Print & Radio, with Mobile being the main
medium of connect between brand and consumers.
AWARENESS / PROMOTION

6. ADDITIONAL P'S OF
RURAL MARKETING
Pace of the product is also an important factor in terms of rural
marketing. Pace of our product would be according to the consumers
need and also the first to reach the consumers in terms of the durable,
waterproof, rough and tough footwear.
Passion represents an attitude, commitment and seriousness towards
serving the consumers in the rural market place.
The marketers needs to show Passion in three dimensions -
1) Passion to earn goodwill for the company
2) Passion to serve and educate the consumers
3) Passion to give 100% to the rural marketing effort
PACE AND PASSION

7. STP STRATEGY
Geographic
1) Zones - North, West zones
2) States - Punjab, UP, Maharashtra ,
Bihar, Madhya Pradesh
3) Density - Villages with population
more than 5000
SEGMENTATION
Demographics
1) Age - 25 and above
2) Lifestyle - Hard working, few and
simple needs
3) Income -Since it is priced at 250
so farmers with average income of
9000 can buy it
4) Occupation - Farming and other
agriculture related activites
Behavioral
1) Benefit sought -Convenient and
durable
2) Occasions - Purchase according
to income mostly harvest season
3) Usage rate - According to the
nature and volume of farming.
Psychograhics
1) Social class - Lower social class
2) Lifestyle - Affordable and durable
products.
3) Personality - Value for money,
likes to be respected and
appreciated

8. STP STRATEGY
We will target farmers in villages where minimum population is
5000 at least as this segment is worst hit by the floods, sowing
and working in fields so they will need our product the most.
Also there are no competitors who have innovated such a
product for this segment so it is both attractive and profitable
for us. Though there might be some difficulties in educating
this segment about the benefits of the product but customized
and concentrated marketing approaches will resolve those
issues.
TARGETING -

9. STP STRATEGY
Some points of Differentiation and Parity on the basis of:
1) Product type: This product is one of its kind in the market which
deals with a major problems that farmers face.
2) Service or Distribution: Our logistics and distribution strategies
will aim at creating consumer awareness and also educating the
farmers in rural areas about its importance.
Here our Product Differentiation with respect to the segment and
target that we have chosen is both Attractive ( Provides value to
consumers) and Affordable (Consumers willing to pay).
Hence our Positioning Statement will be “ Kadam - a farming
friendly, durable and waterproof footwear, for the farmers who
provide us livelihood.”
POSITIONING -

10. GODREJ
AADHAR
Aadhaar is a joint venture between The Future Group & Godrej Agrovet Ltd which
focuses on retail distribution of and consumer products for personal and
household use in rural and semi-urban India.
Aadhaar is positioned as a rural supermarket & currently has 40 stores across 2
states: Gujarat, Punjab. Aadhaar also operates Cash & Carry store by the name
Aadhaar Wholesale Market.
One of their collaborations include setting up of Apollo Pharmacies at Aadhaar
outlets called Apollo Aadhaar Pharmacy, offering genuine medicine and life saving
drugs, round the clock to nearby villages.
The villages due to their limited resources are very price sensitive in nature and
retailers in many villages charge more than MRP. Hence, the objective of Aadhar is
to make sure products reach farmers in the rural interiors of the country at the
right price.
Promotion aspect always creates a challenge in the rural markets because they
have thin population density and are widely spread across large remote areas. To
tackle this Aadhaar used the High Reach = High Frequency approach ad made use
of Jeep based advertisement, wall paintings, bus stand ads and Direct to Home
ads. .

11. THANK YOU
GROUP 3
END