EXPLORING NEW PRODUCTS     CAST STUDY  solution

Study the case given below and answer the questions at the end of the case.

 CASE : EXPLORING NEW PRODUCTS Sudesh Alagh is the Marketing Manager of 'MFLfabrics division', a part of the MFL group of companies. The company was doing well and had earned a name in selling reasonable variety and good quality of readymade garments for children and adults in urban markets spread across India. Sudesh received instructions from the Managing Director of the company, to identify target market and work out marketing plans for selling garments in the rural market having a population of minimum 5000 and above. A premarket survey indicated tremendous rural market potential waiting to be tapped. MFL decided to enter the rural market with a new brand of readymade garments tailored to suit the needs of the rural market. The company also decided to advertise the products on radio and T.V. to ensure knowledge about the company and its readymade garments. This was to be supported  with sales promotion programmes including wall posters, organization of melas, mobile vans with loudspeakers and offers of small freebies. For distribution, the company decided to see that the products were available at the local cloth shops with arrangements to have an understanding with the local tailors, who would be trained to make alterations to the ready-tostitch-and -wear garments. It was also decided to price the products reasonably to take care of the competition from the unorganized sector. However, since social sanction plays an important role in rural consumer behaviour, the Marketing Manager, Sudesh Alagh was keen to identify the reference group like the village mukhiya or panchayat head or local bank manager, whose opinion carried a lot of weight among the rural public. The views and facts expressed by such persons can act as a positive word-of-mouth advertising for the company.

 Questions :

 (a) Do you agree with the decision of the company to enter the rural market? Why or why not?

 (b) What according to you would be the major challenges for the company in entering the rural market?

 (c) Evaluate the marketing plan of the company for the rural markets and suggest improvements in the marketing plan, if any.