Description

Rural Marketing
June 2024 Examination
Q1. Please help the marketing manager of a leading cosmetic company to launch a new
product in the rural markets for skin care, what steps are needed for the launch of the
product. (10 Marks)
Ans 1.
Introduction:
Launching a skincare product in rural markets requires a strategic approach that
acknowledges the unique characteristics and challenges of these areas. With the burgeoning
potential of rural markets and the growing awareness of skincare among rural consumers,
tapping into this segment presents an opportunity for significant growth for cosmetic
companies. However, the diversity in socio-economic backgrounds, cultural nuances, and
accessibility constraints necessitates a tailored strategy to ensure a successful product launch.
This introduction will outline key considerations and strategies essential for penetrating rural
markets with a new skincare product. From market research and product localization to
distribution network optimization and targeted communication, each aspect plays a crucial
role in navigating the complexities of rural markets and establishing a strong presence in
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Q2. Pricing is a sensitive issue in Rural Markets, how does a company plan their pricing
policy keeping the market share and profitability aspects in mind. (10 Marks)
Ans 2.
Introduction:
Pricing strategy is a pivotal aspect of marketing that holds particular significance in rural
markets. Rural areas present a unique set of challenges and opportunities for companies
aiming to penetrate these markets effectively. With lower income levels, limited access to
infrastructure, and distinct consumer behaviors shaped by cultural and economic factors,
pricing decisions become inherently complex. This introductory essay aims to explore the
intricacies of pricing in rural markets, shedding light on how companies navigate this terrain
to strike a balance between gaining market share and ensuring profitability. Understanding
the dynamics of rural markets, including consumer preferences, competitor strategies, and
regulatory frameworks, is essential for formulating effective pricing policies. By delving into
these nuances and leveraging innovative pricing strategies tailored to the specific needs of
Q3. Case Study
India Fertilizers
India Fertilizers was a leading company based in north India with two plants
producing fertilizers and other agro inputs in state of Rajasthan and UP ,the company
had a strong brand equity and is known for delivering quality products in the market.
As a part of their marketing and distribution strategy they have around 500 retail shops
in the states of Punjab ,Haryana Rajasthan and UP the shops are located in almost the
major towns of the above states and cater to the local population by selling multi brand
agro inputs.
The company as a part of the CSR program have installed soil testing facilities in almost
most of the shops where farmers can test the soil and the company advises them on the
nutrients required for enhancing the fertility.
The shops are open seven days a week with no holidays and have long working hours
from 8 am to 8 pm.
Mr Sharma the marketing manager was observing that the sales of around 300 shops
was less than Rs 10 lacs per year and for 100 shops 12 lacs per year and the balance Rs
15 lacs per year.
The 300 shops having sales of 10 lacs per annum was a loss making and 12 lacs was
break even and Rs 15 lacs had some minimum profits.
Mr Sharma wanted to increase the sales and profits of the 400 units as the management
had advised him to close the shops if they do not increase sales and profits.
a. What actions Mr Sharma will take in increasing market share, sales and profits for
India Fertilizers from the loss-making retail shops? (5 Marks)
Ans 3a.
Introduction:
In the competitive landscape of agro inputs, India Fertilizers stands as a prominent player
renowned for its quality products and extensive retail network across Punjab, Haryana,
Rajasthan, and UP. However, the observation by Mr. Sharma, the marketing manager, reveals
a concerning trend of low sales in a significant portion of the retail shops, jeopardizing
profitability. This case study delves into the strategic actions Mr. Sharma can undertake to
revitalize the sales and profitability of the underperforming retail units, aligning with the
b. What in your view are the reasons of the loss-making units? (5 Marks)
Ans 3b.
Introduction:
The observation of loss-making units within India Fertilizers’ retail network raises concerns
about the underlying reasons behind their underperformance. This analysis aims to delve into
the factors contributing to the financial losses incurred by these units, shedding light on
potential issues affecting their profitability.
Concept and application
1. Market Saturation and Competition: One possible reason for the loss-making units