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    Rural Marketing

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    sumeet
    This document provides an overview of rural marketing in India. It discusses the evolution and characteristics of rural markets, including large population size, low literacy, and traditional outlook. Rural consumers are segmented into affluent, middle class, and poor groups. The rural market potential is large due to population size and improving infrastructure. Challenges include understanding rural consumers and low literacy. Strategies for rural marketing include ensuring availability, affordability, acceptability, and awareness through melas, haats, and local language promotion and distribution. Some successful rural marketing campaigns and initiatives by companies are also highlighted.

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    Rural Marketing

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    sumeet
    128 views28 pages
    This document provides an overview of rural marketing in India. It discusses the evolution and characteristics of rural markets, including large population size, low literacy, and traditional outlook. Rural consumers are segmented into affluent, middle class, and poor groups. The rural market potential is large due to population size and improving infrastructure. Challenges include understanding rural consumers and low literacy. Strategies for rural marketing include ensuring availability, affordability, acceptability, and awareness through melas, haats, and local language promotion and distribution. Some successful rural marketing campaigns and initiatives by companies are also highlighted.

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    This document provides an overview of rural marketing in India. It discusses the evolution and characteristics of rural markets, including large population size, low literacy, and traditional outlook. Rural consumers are segmented into affluent, middle class, and poor groups. The rural market potential is large due to population size and improving infrastructure. Challenges include understanding rural consumers and low literacy. Strategies for rural marketing include ensuring availability, affordability, acceptability, and awareness through melas, haats, and local language promotion and distribution. Some successful rural marketing campaigns and initiatives by companies are also highlighted.

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    128 views28 pages

    Rural Marketing

    Uploaded by

    sumeet
    This document provides an overview of rural marketing in India. It discusses the evolution and characteristics of rural markets, including large population size, low literacy, and traditional outlook. Rural consumers are segmented into affluent, middle class, and poor groups. The rural market potential is large due to population size and improving infrastructure. Challenges include understanding rural consumers and low literacy. Strategies for rural marketing include ensuring availability, affordability, acceptability, and awareness through melas, haats, and local language promotion and distribution. Some successful rural marketing campaigns and initiatives by companies are also highlighted.

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    You are on page 1of 28

    The heart of India still lies in the villages

    Rural
    Marketing
    By Group 7
    Sumeet, Aakash, Sanket, Shashank,Udit
    (97,98,100,101,102)

    CONTENTS
    Introduction
    Evolution of rural market
    Characteristics of rural market
    Rural consumer
    Potential for rural market in India
    Challenges in rural marketing
    Strategies to capture rural market
    Some noteworthy success stories

    What is Rural Marketing?


    Activities involved in assessing, stimulating and converting the
    purchasing power of rural consumers into an effective demand for
    specific products and services.

    Two-way marketing process


    Urban to rural - Major part of rural marketing. Includes transactions of urban marketers
    who sell their goods and services in rural areas pesticides, fertilizers, FMCG products,
    tractors, bicycles, consumer durables, etc.

    Rural to rural - Includes the activities that take place between two villages in close

    proximity to each other like agricultural tools, handicrafts, dress materials, bullock carts,
    etc.

    Rural to urban - Basically falls under agricultural marketing. A rural producer seeks to
    sell his produce in urban market like seeds, fruits and vegetables, forest produce, spices,
    milk and related products, etc

    CHARACTERISTICS
    Large population
    Low literacy level
    Socio-economic position
    Conservative lifestyle
    Traditional outlook
    Medical facilities
    Low standard of living
    Occupation pattern
    Inadequate infrastructure facilities
    Large, diverse and scattered market

    Rural Consumer
    The Affluent Group
    Few Cash rich farmers.
    They have affordability but do not form a demand base large
    enough for marketing firms to depend on.
    Examples

    Wheat farmers in Punjab

    Rice merchants of Andhra Pradesh

    The Middle Class


    Largest segments for manufactured goods.
    E.g. Sugar cane cultivators in UP and Karnataka.

    The Poor

    Huge segment.
    Less purchasing power
    Receive grants from the government
    The farmers of Bihar and Orissa fall under this category.

    Potential In Rural Market


    Large population
    It constitutes about 73% of the Indian population and 12% of the world population.
    Despite the rural urban migration, the rural areas continue to be the place of majority of Indians.

    Growth of market
    The market has been growing at a rate of 3-4% annually adding more than one million new consumers every year.

    Infrastructure is improving rapidly


    In 50 years only, 40% villages have been connected by road, in next 10 years another 30% would be connected.
    More than 90% villages are electrified, though only 44% rural homes have electric connections.
    Rural telephone density has gone up by 300% in the last 10 years.

    Increasing income and purchasing power


    The agricultural development programs of the government have helped to increase income in the
    agricultural sector by increasing the productivity and better price for agricultural products,
    thus enhancing the purchasing power in rural markets.

    Accessibility of markets

    The road network has facilitated a systemized product distribution system to villages. An increasing number of
    companies are supplying village markets directly.
    Increasing direct contacts to villages helps product promotion and availability of the product in the village shop.

    Saturation of urban market

    The urban market is reaching towards saturation point bringing in an urgent need to focus on rural market.

    Rural marketing is not expensive

    It is very cheap to start a firm or any campaign in rural areas and it includes very less investment as compared to
    urban markets

    Challenges In Rural Market

    Understanding the rural consumer


    The biggest challenge is to understand the perceptions, viewpoints and actual needs of the rural people,
    which is dramatically different from urban people.

    Low literacy levels


    There are not enough opportunities for education in rural areas.
    The literacy level is as low (36%) when compared to all-India average of 52%.

    Seasonal Demand

    Demand for goods in rural markets depend upon agricultural situation, as agriculture is the main source
    of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or
    buying
    capacity is not stable or regular.

    Lack of proper infrastructure and other physical facilities


    Low per capita income
    Underdeveloped people and underdeveloped markets
    Many language and Dialects
    Barter system
    Inadequate Media coverage for Promotions
    Availability of duplicate and cheap brands.
    Slow purchasing decision
    Problems related to distribution and channel management

    Vast and scattered market

    STRATEGIES
    4 As Approach

    1.Availability
    Strive to reach villages with a population market penetration.

    2.Affordability
    Introduce small unit packs

    3.Acceptability
    Offers products and services that suit the rural market
    Easy to understand

    4.Awareness
    One on one contact programs are extremely efficient.
    Educate and try to induce trial.

    Melas are places where villagers gather once in a while for shopping.
    Companies take advantage of such events to
    Demonstrate and market their products.
    Haats are a good place to create awareness. There are 42000 rural haats which
    get more than 4500 visitors per haat.

    Marketing strategy
    Marketers need to understand the psyche of the rural consumers.
    Firms should refrain from designing products for the urban markets and then
    pushing them in the rural areas.
    Utilizing various rural folk media to reach them in their own language.

    Distribution strategy
    Using company delivery vans, melas,haats, and mandis/ agri
    markets.

    Promotional strategy

    Rich traditional media forms like


    puppetry, folk dances, audio visuals, etc. should be used to
    convey the right message to the rural folk.

    Forms with which the rural


    consumers are highly comfortable with should be used.

    By communicating and changing quality perception


    Companies are coming up with new technology and they are properly
    communicating it to the customer.
    There is a trade-off between the quality a customer perceives and a company
    wants to communicate.

    By proper communication in local language


    The companies have realized the importance of proper communication in local
    language for promoting their products.
    They have started selling the concept of quality with proper communication.

    By understanding cultural and social values


    Companies have recognized that social and cultural values have a very strong
    hold on the people..
    Moreover, rural people are emotional and sensitive.

    By providing what customer wants


    The rural customers want value for money. They aim for the basic functionality
    of the product rather than the frills associated.
    However, if the seller provide frills free of cost they are happy with that.

    By associating themselves with India


    MNCs are associating themselves with India by talking about India, by
    explicitly saying that they are Indian.
    Companies are picking up Indian models and actors for advertisements and
    promotions.

    By effective media communication


    Companies can either go for the traditional media or the modern media or an
    effective combination of both.
    The traditional media include melas, puppetry, folk theatre etc. while the modern
    media includes TV, radio, and e chaupal.
    LIC uses puppets to educate rural masses about its insurance policies.
    In between such shows, the lights are switched off and a torch is flashed in the
    dark(Evereadys tact).

    Schemes
    BIJLI

    Launched New Refrigrtor for Rural and Semi urban


    market priced at 10,000

    SAMPOOR
    NA

    Range of TVs with Devnagri script on display


    Priced at 12,000

    MAHASAN
    GRAM

    Focusing on rural town with population less than 5000


    with special economy model of color TV priced at 8000

    SAPNO KA
    GHAR

    Road Show in semi urban & Rural with mid priced


    consumer durables to provide Touch & Feel experience

    SHAKTI

    Rural initiative targeted villages population less


    than 2000, providing income generating opportunity
    through shakti vani

    Operation
    JAGRUTI

    OPERATION Jagruti, a village consumer contact


    campaign was launched with the objective of
    massive rural penetration targeted at the non-users
    and
    infrequent
    users
    of
    dentifrices.

    Parachute

    Anti Loose Campaign and Temper proof Packaging in Smaller


    Variants

    ASHA

    Low cost snacks & Beverages


    between 12- 16.

    . Especially for girls

    aged

    Chota
    Coke
    Great
    Value
    Product

    Launched Coca Cola in


    Matlab Coca Cola

    Rs

    5 with tag line

    Thand

    US-based direct seller Amway Corporation, is looking to reverse its


    fortune with the launch of a range of low-priced fast moving
    consumer goods (FMCG) products aimed at rural tier II & III cities.

    Chick

    CavinKare launched an aggressivecampaign to educate


    people on how to use shampoo through live touch and
    feel in Rural Folks

    EChoupal

    A rural shopping mall where farmers can sell their


    commodities and everything including cosmetics,
    garments, electronics, appliances and even tractors. It
    serves as an agri-sourcing centers, shopping centers,
    and facilitation centersa

    Mera
    sapna
    meri
    maruti
    Ghar Ghar
    ke
    pehchan

    After securing its foothold in urban and semiurban markets, it has launched a pan-India
    campaign Mera Sapna Meri Maruti to tap
    the vast potential of the rural market.
    The promotional scheme Ghar Ghar ki
    Pehchaan is aimed at taking highly
    accomplished product like Santro into the depth
    of rural India.

    Panchayat
    scheme

    runs a panchayat scheme wherein it gives Rs


    2,000 as incentive on every buy of a Spark

    Har Gaon
    Har angan

    Har Gaon Har Angan seeks to build an ongoing


    relationship with millions of households in rural
    India through a network of 500 rural sales
    executives

    ASTRA

    Arogya
    parivar

    Hume
    Jitna Hain

    Elvista

    Advance sales training for retail ascendance in rural


    areas

    initiative to build a sustainable, profitable business


    that improves access to healthcare among the
    underserved millions in rural India by creating
    awareness, enhancing local availability, and
    designing appealing and affordable health solutions

    Campaign run rural part of north india , in which


    rural masses and key opinion leader are educated and
    aware about epilepsy

    Elder has launched its new division to reach deep


    pocket of the rural hinterland with separate team of
    sales force

    Samridhi

    Mahindra Samriddhi, an initiative of Mahindra


    Farm Equipment, eyes having 600 Mahindra
    Samriddhi centres and five million farmers
    under its ambit by 2020.

    TATA ACE
    MAGIC

    TATAs Rural Transport Vehicle for Rural and


    Semi Urban Landscape

    Gold Plus

    Titan Industries GoldPlus is designed for the


    jewellery preferences of the semi-urban and
    rural Indian customer.

    Utsav

    A Range of Colour solution intended for the


    Rural Mass & Market

    Miss
    Palampur
    campaign

    Cadbury has rolled out campaign Miss


    Palanpur eyeing to captured Rural Mass
    Market

    Met
    Suvidha

    Met Suvidha (Rural) is a participating flexible


    Endowment Plan that combines savings and
    security to Rural Masses

    Kamdhen
    u
    campaign

    The Kamdhenu campaign, a unique high-impact


    marketing and sales campaign through cattle
    loans to farmers

    SOME SUCCESS STORIES

    Yaara da Tashan ads with Aamir Khan


    created universal appeal for Coca Cola.

    ITC's E-chaupal

    HULs personal products unit initiated Project Bharat


    (1998)

    HUL with its Project Shakti

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