Structure of Competition in

Rural India, Product

Warranty & After-Sales
Service

- Ramkrishna
 The structure of competition in rural India is very
complex and non-uniform. The competition dynamics
change from one village to another, visible in the form
of a new local or regional brand on the shelf
competing with the national brands.

The structure of the competition can be classified

as follows:
 The
The structure
structure
of competition
of competition
in
in rural
rural India
India

Indirect
competition
from
substitutes

Competition
Competition Competition
from
from unbranded
unbranded from the other
products
products of
of aa urban national
particular
particular village
village brands

Competition Competition
from other from other
unbranded regional
urban products brands
Other Urban National Branded Products:
In certain villages, the proliferation of national
products is quite evident in the villages that are on the
periphery of larger towns because of the spillover of
the urban centres. There are exceptions to this rule;
certain national brands have reached the remotest
villages due to the consistent efforts of the
manufacturers.
Examples – Surf, Red Label, LG, Nokia, ITC
cigarettes.,etc.
Regional Urban Branded Products:
In some villages, the regional brands or the brands
of unorganized sector are quite common. These
brands are popular locally in the urban areas, having
their reach in the rural markets also. They give a
competition for the rural products.
Example – Santoor soap, Medimix, Tractors like
Mahindra in south India, Kissan in Punjab., etc.
Other Unbranded Urban Products:
The unbranded urban products also give a
competition to the products in the rural market. The
fakes are available at a much lower price than the
originals & thus give a tough competition.
Example – Nirma – Nima
Parle G – Parlo G
Nokia – Nokla etc.
Unbranded Products of Different Village:
The village markets, melas, haats have the people
coming from neighbor village for trade for the
products produced in the other village. They too give
competition to the rural products of the host village.
Example – Soaps, Beedies, Toothpastes, Agarbattis.,
etc.
Indirect Competition from Substitutes:
The substitute products also indirectly give a stiff
competition for the rural products. The substitute
products in the market may replace the usage of the
regular product in a rural market.
Example – tea – coffee,
toothpowder – toothpaste., etc
Product Warranty and After-Sales Service:
A warranty is a written statement agreeing to
maintain the said property in good working
condition for the period mentioned in the
warranty agreement. It indirectly shows the
worthiness and utility
of the product or goods
as only when the goods
are good quality
producers will
undertake its upkeep for certain period.
 In the case of high-value durable products, rural
customers attach a great deal of value to the warranty
offered on the products. The warranty is an effective
selling plank in the rural markets.

Example – Polar fans offer 7 years warranty, which has

helped increase its market share in the rural market.
 After sales service is the periodic or 'as required'
maintenance or repair of equipment by its
manufacturer or supplier, during and after a warranty
period.
 The increased usage of machinery, appliances &
equipment has increased the demand for the after
sales service in rural areas too. The customer expects a
smooth hassle-free maintenance, repairs at low
charges and quick & easy availability of spares &
accessories at an economical rates.
But companies are not taking this issue seriously as
most of the service centres are located in urban places.
The rural customers end up servicing the product
locally as the cost of getting the spares from urban
places is uneconomical & inconvenient.
THANK YOU