ONLINE RURAL MARKETINGASSIGNMENT 2The marketer’s strategy changes with reference to four variables; company resources, product variability, PLC stage and market variability.
Explore and study the variables for choosinga coverage strategy of two Indian marketers and two MNCs.Study the variables for choosingcoverage strategy of ITC (Indian)ByNikhil Daga1/7/2018Submitted To:Prof. Rajaram SenapatiPGDM161810152 M2 batchSelecting Market Segments for Market Coverage Strategies Once a growth strategy is identified, the company needs to create a marketing plan for a brand. The marketing plan starts with the choice of a market coverage strategy, which itself will identify the target market for the brand. One of the most important decisions that a company makes is what market coverage strategy to use for a brand. In analyzing any one product, the first thing to consider is the market. For example, the market for Duracell is the battery market. But this market is too broad to segment effectively (since it includes industrial batteries), so it makes sense to narrow the market to what can be called a focus market, in this case the consumer battery market.
In a sense, the focus market rules out products that are not substitutes. For example, a marketing analysis for Gatorade (which has about a 90% market share) should not exclude water since that is a substitute for a sports drink and a possible source of new sales. Otherwise the analysis would be stuck with a market definition of sports drinks and thus virtually no practical way of increasing sales.
A company has three basic choices for market coverage strategy:? Undifferentiated – ignore segmentation variables and go after the whole market with one brand.? Differentiated – operate in all or several segments of the market and design separate brands for each.? Concentrated – operate in one or only a few segments of the larger market following a niche strategy with one brand. Coverage of SegmentsOrganisation has 3 alternative stratergies to suit their segmentation approach._______________________________________________________________________________Segmentation type of marketing Coverage stratergy_______________________________________________________________________________Zero Mass UndifferentiatedSubstantial Segment Differentiated Selective Niche Concentrated _______________________________________________________________________________Market coverage strategy for ITC:Undifferentiated marketing mix:The company decides to ignore differences between market segments and to focus on the whole market with one offer. Therefore, the firm has to focus on what the whole market has in common in terms of the needs of consumers, rather than focusing on what is different.
Products associated with food such asAashirvad’s( Ghee,Staplels ,Instant Mixes) are highly targeted towards adults, the first generation(Gen X) & Second generation(Gen Y).Geodemographics determine the income of people in these areas as well as purchasing power, which makes rural population ineligible for such products.Differentiated marketing mix:A differentiated market targeting strategy means that we decide to target several market segments and also design separate offers for each. The reason of pursuing this market targeting strategy is that higher sales and a stronger position within each segment can be the consequence. Product line of Yipee is targeted towards children and Gen Y.
ITC has further narrowed it down by providing different SKUs. This gives a variety for rural as well urban customers. This same strategy applies for ITC confectionary division. Concentrated marketing mix:The concentrated market targeting strategy, the company focuses on one or a few segments or niches in a market. The aim is then to reach a large share in this segment or niche, instead of going after a small share of a large market. Natural Juices, Sunbean Coffee and Fabelles Chocolates are the two brands which are imported. They fall under premium category and are NOT distributed in given rural areas.
They are highly-priced and there smaller SKUs are found in urban areas. Fabelle’s Chocolate is known for good taste, acceptable worldwide for its quality .It’s a great gift for someone you know.
ADVERTISEMENT TOOLS:? Banner and poster? Catalogue advertisement? Social media? Television commercialsCONCLUSION:For the above it is clearly found that ITC in FMCG industry is very encouraging and their business strategy is highly competitive and innovative.