Rural Marketing, Environment

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Rural Marketing, Environment
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings

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Rural Marketing, Environment

  1. 1. Rural Marketing RURAL MARKETING ENVIRONMENT RAJENDRAN ANANDA KRISHNANhttps://www.facebook.com/ialwaysthinkprettythings
  2. 2. Topics to be covered Rural Marketing Environment : Population, occupation Pattern, income generation, location of rural population Expenditure pattern, literacy level, land distribution, land use pattern, irrigation Development programs, infrastructure facilities, rural credit institutions, rural retail outlets, print media in rural areas Rural areas requirement, problems in rural marketing, rural demand, rural market index.https://www.facebook.com/ialwaysthinkprettythings
  3. 3. A Caselet The life of a farmer, K.T. Srinivasa, has changed recently, though the two dirt roads near his home about 40 miles from India‟s high-tech capital of Bengaluru, his house without toilet facility, farm without tractor support and the way in which his family threshes rice by crushing it with a massive stone roller, have remained the same. How? The change has been brought about by a cell phone. The little, attractive gadget is helping him make decisions related to farming. When to plant and harvest, at what price to sell the produce and how and when to transport and sell-all these intriguing questions are now resolved intelligently. Idea Cellular, Mr. Srinivasa‟s service provider, has effectively utilized its first mover advantages.https://www.facebook.com/ialwaysthinkprettythings
  4. 4. Contd. Close to half the 800 people in the village, including Mr. Srinivasa, have become its subscribers. Most of the villagers make voice calls as they don‟t know how to text message or download e-mails. On an average, rural Indians use their phones around 8.5 hours a month, up by 10 percent over the past year. The villagers are very amused with their new found connectivity with the world. They are now aware of the people and events affecting the rest of India and the world. They can answer quiz questions such as who is America‟s President and why there is an economic slowdown. They have understood that recession is hurting their hi-tech neighbours in Bengaluru much more and that the Indian economy is able to absorb the shocks much better than other developed nations. “After the global crises,” says Mr. Srinivasa, the farmer, “I think we are in better shape”. This is an example of one of the many changes in the rural environment that we have had a profound impact on rural lives.https://www.facebook.com/ialwaysthinkprettythings
  5. 5. Study of Rural environment Consumer decisions and actions can be properly comprehend only when the force field in which they are operating is understood. Study of environmental factors is important for marketers to realize the developments and trends rather than know the static picture of the environment. Today‟s decisions are not only for current problems but also for future opportunities, performance nad results.https://www.facebook.com/ialwaysthinkprettythings
  6. 6. Rural Environment Social Environment – Population and households, education and literacy levels, social groups, festivals and melas, entertainment and arts. Technological Environment – Power and energy sources, postal services, telecommunications, information and communication technology, appropriate technology and innovations. Economic environment – Occupations, land distribution, land use pattern, irrigation, asset holding, income, consumption, savings, disposable incomes, rural lifestyles and sales potential, rural credit institutions, rural retail outlets, micro financing and rural industry. Political Environment – Development initiatives and administrative bodies.https://www.facebook.com/ialwaysthinkprettythings
  7. 7. Marketing decisions and environment 1. Demographics (size and distribution 1. Demand Estimation of population by age, gender, occupation, education, geographic areas, income, savings and investment. 2. Demographics, lifestyle indicators, 2. Segmentation and target purchase and usage of inventories. marketing 3. Income, quality consciousness, brand awareness, preference of consumers and competition. 3. Product decision 4. Disposable incomes, propensity to consume, competition, demand etc. 5. Availability of trade channels, 4. Price decision physical distribution facilities, competition and location. 5. Place decision 6. Media availability and costs, media habits of target customers, 6. Promotion decision competition etc.https://www.facebook.com/ialwaysthinkprettythings
  8. 8. Population Country‟s population : 1027 million Share of rural population : 68 percent No. of households : 205.9 million (30% are in urban areas and 70% in rural areas.) Average family size in the country – 5 members Rural Family size – 5.08 Low income states: Assam, Bihar, Madhya Pradesh, Meghalaya, Orissa, Rajasthan, Uttar Pradesh, Chattisgarh, Uttaranchal and Jharkhand. Middle Income States : Andhra Pradesh, Himachal Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal High Income States : Goa, Gujarat, Haryana, Maharashtra, Punjab, Pondicherry, Chandigarh and Delhihttps://www.facebook.com/ialwaysthinkprettythings
  9. 9. Distribution of Populationfactors rural urban All IndiaPopulation (mn) 732 295 1,027households 144.5 61.4 205.9household size ( 5.08 4.81 5.00number ofmembers )Number of earning 1.43 1.34 1.40membershttps://www.facebook.com/ialwaysthinkprettythings
  10. 10. Distribution of population across statesfactors LI states MI states HI states All India statesEstimated 493 314 220 1027populationEstimated 91.7 69.6 44.3 205.6householdsAverage 5.38 4.51 4.97 5household sizePer capita 9749 14543 18172 13018incomeShare of rural 80.7 68.2 54.5 71.2populationhttps://www.facebook.com/ialwaysthinkprettythings
  11. 11. Gender-wise Ratio Sex Ratio for India is 933 females per 1000 males. Women and men are almost in equal number in many of the states. The male population is larger in Union Territories like Dadra and Nagar Haveli, Chandigarh, Andaman & Nicobar Islands, Delhi and many of the Northern States such as Bihar, Rajasthan, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Nagaland and Punjab. In almost all the southern states, male and female population are almost in equal number except Kerala, where female population dominates the male population.https://www.facebook.com/ialwaysthinkprettythings
  12. 12. Demographic Environment Though the rural proportion in population has come down moderately over the years, there has been a considerable increase in absolute number of people living in rural areas. With the increased working population, the purchasing power of the rural population has gone up from 40% in 1991 to 45% in 2011. For marketers, the largest age group shapes the marketing environment. In the case of rural, it is school going children and young adults who define the consumption patterns of consumables and lifestyle products. The potential for marketers in the rural sector can be assessed by the fact that 48% of the rural population is below the age of 20.https://www.facebook.com/ialwaysthinkprettythings
  13. 13. Distribution of Population by Age groupsAge groups Rural Urban0-4 11.5 8.95-14 25.7 21.815-19 9.5 10.620-34 23.1 26.835-54 19.7 22.555+ 10.5 9.4https://www.facebook.com/ialwaysthinkprettythings
  14. 14. Education in IndiaEducation Level Rural UrbanBelow Primary 31.7 18Primary but below middle 29.5 22.9Middle but below 16.9 16.3MatriculationMatriculation but below 18.4 29.6GraduateGraduate and above 3.5 13.2https://www.facebook.com/ialwaysthinkprettythings
  15. 15. Education and the level of demand Lower levels of education in the rural sector lead to little or low demand for a range of products such as literary books, magazines, notebooks, pens, pencils, drawing instruments, calculators, computers etc. But change is taking place because literacy rate in the rural sector has risen 23% over the last 20 years. This has contributed significantly to an improvement in the socio-economic status of the people. With this growth, the demand for educational products has increased.https://www.facebook.com/ialwaysthinkprettythings
  16. 16. Education and the level of demandRural Literacy 1991 2001 2011% of literates 45 59 69https://www.facebook.com/ialwaysthinkprettythings
  17. 17. Distribution of households by Occupation of the HeadHead’s Urban Rural AllOccupationHousewife 0.84 1.01 0.96Cultivator 3.45 40.86 29.99Wage Earner 20.93 35.28 31.12Salary Earner 40.72 11.28 19.84Professional 3.59 0.73 1.56Artisan 6.90 3.41 4.42Petty Shopkeeper 16.05 4.97 8.19Businessman 3.68 0.46 1.4Others 3.85 1.98 2.52https://www.facebook.com/ialwaysthinkprettythings
  18. 18. Occupation Pattern The occupational pattern of people in a segment naturally affects their buying behavior. A daily wage earner has to account for variations in income, whereas a salary earner brings home an assured fixed amount and therefore can plan expenses in a better way. Three-fourths of rural household heads are either cultivators or wage earners, whereas three-fourths of urban household heads are salary earners, petty shopkeepers and wage earners. The cultivator‟s disposable income is highly seasonal, with more disposable income available immediately after the harvesting season. This is therefore the time when he is more inclined to make purchases, especially of durables and high-involvement products.https://www.facebook.com/ialwaysthinkprettythings
  19. 19. Occupation PatternBasic occupations that exist and help directly agro-related works are: Farm Labourer – The farm labourer helps a village through his agricultural activity directly. The labourer works by tilling, weeding out, sowing, reaping, cleaning the produce, guarding the field at harvest time and many other odd jobs related to agriculture. Priest – He reads horoscopes, arranges poojas, tells villagers regarding auspicious dates for marriages, house warming, sowing in addition to his duties in the temple. Blacksmith – The agricultural implements are made and repaired by the village blacksmith. Carpenterhttps://www.facebook.com/ialwaysthinkprettythings
  20. 20. Contd. Washerman Barber Shoe maker Potter Milk manhttps://www.facebook.com/ialwaysthinkprettythings
  21. 21. Household Pattern (Family Structure) Rural households have grown by 26 million during the last decade. The average size of the rural family has decreased due to movement of more families from the joint to the nuclear structure. The traditional households in rural were joint families, in which a group of people lived under one roof, ate food from common chulha, held income and property in common and were related to each other by bonds of kinship. But with rise in population and resulting pressure on land and several other socio-economic factors, joint families are now breaking apart and moving towards nuclear family culture.https://www.facebook.com/ialwaysthinkprettythings
  22. 22.  With the increasing number of „individualised joint‟ (families stay in the same house, but use separate kitchens) and nuclear families, the range and number of branded products coming into the family can increase. Size of Household Rural Urban 1-2 members 11.1 10.7 3-4 members 30.4 38.8 5-6 members 34.0 32.8 7 and above 24.5 17.7 Household sizehttps://www.facebook.com/ialwaysthinkprettythings
  23. 23. Rural Housing Pattern The types of houses in rural areas are a very strong indicator of economic growth. Over the last twenty years, the trend in house types has changed dramatically from less permanent semi- pucca or kuccha to more permanent pucca types. Today, 40 percent of rural houses, i.e. 50 million are pucca, which is growing at a rate of almost 5% annually. Statistics indicate that the owners of such houses possess sufficient disposable income.https://www.facebook.com/ialwaysthinkprettythings
  24. 24. House Type 1981 1991 2001 Pucca 22 31 41 Semi-Pucca 37 36 36 Kuccha 41 33 23https://www.facebook.com/ialwaysthinkprettythings
  25. 25. Estimates of Incomes Urban Rural All IndiaNo. of earners per 1.34 1.43 1.4householdIncome 95,827 51,922 65041(Rs/annum/household)Poverty Ratio 18.7 21.7 20.8Per capita income 19,935 10,227 13018Population below 55.2 159.0 214.2poverty linehttps://www.facebook.com/ialwaysthinkprettythings
  26. 26. Rural Income DispersalConsumer Class Annual Income 1995-96 2006-07Very Rich Above Rs. 215000 0.3 0.9Consuming Class Rs. 45001-2,15000 13.5 25.0Climbers Rs. 22001 – 31.6 49.0 45000Aspirants Rs. 16001 – 22000 31.2 14.0Destitutes Rs. 16000 & below 23.4 11.1https://www.facebook.com/ialwaysthinkprettythings
  27. 27. Income Generation By sale of agricultural produce By sale of animal produce By service – Rendered by teacher, doctor or nurse. By interest on investment Government subsidies and grants By mortgage of properties and gold By charities and donations By labour and wages – Labourers do jobs in construction of roads, bridges and buildings.https://www.facebook.com/ialwaysthinkprettythings
  28. 28. Rural Income Pattern Income of Rural Sector is rising at a considerable rate. Percentage of Very Rich, Consuming Class, and Climbers are rising whereas Aspirants and Destitutes are declining. The structure of Rural Income depicts the following trends:1. On the income ladder, the top two slots are occupied by the non-farm sector, whereas the farmer is at the third place and wage earner is at the bottom.2. The highest per capita income in rural comes from the formal segment of the non-farm sector at Rs. 19514 which is higher than the urban per capita income at Rs. 19407.https://www.facebook.com/ialwaysthinkprettythings
  29. 29. Rural Income Rs 7006 billion Agriculture Non-agriculture 53% 47% Informal Wage Formal 31% 16% Self employed earner 43% 10%https://www.facebook.com/ialwaysthinkprettythings
  30. 30. Rural population – 742 million Proportion of rural employed – 312 million Non- Agriculture agriculture 73% 27% Formal Informal Self Wage 15% 12% employed earner 33% 40%https://www.facebook.com/ialwaysthinkprettythings
  31. 31. Per Capita (Per Annum) Incomes Rural : Rs 9481 Agriculture Rs Non-agriculture 6855 Rs 16464 Self Wage Formal Informal Employed Earner Rs 19514 Rs 12595 Rs 10,150 Rs2860https://www.facebook.com/ialwaysthinkprettythings
  32. 32.  Overall, the rural per person spending of Rs. 5830 per annum is a little above half of the urban spending of Rs. 10,260. The gap between rural and urban spending widens as we move from poor households to rich households. But as the total number of the rural population is three times larger than the urban, the overall spending in rural is much higher than in urban. The rural rich and middle classes present a great opportunity for marketers to sell their products.https://www.facebook.com/ialwaysthinkprettythings
  33. 33. Changing Consumption Patterns Monthly per capita Percentage value of consumptionFood 289 59Non-food 197 41https://www.facebook.com/ialwaysthinkprettythings
  34. 34. Monthly per capita consumption expenditure on non food items Rural Percentage Urban Percentage Amount AmountPan+Tobacco 13.97 7 16.23 4Fuel and Light 36.56 18 66.25 15Clothing & 33.27 17 51.71 12BeddingFootwear 5.37 3 10.05 2Education 9.37 5 37.05 8Medical 29.58 15 43.28 10Toiletries 12.96 6 29.09 6Sundry 10 5 17.98 4Consumer 14.51 8 40.43 9ServicesConveyance 14.28 8 47.19 11Rentals 2.96 1 44.02 10Durables 12.72 6 30.85 7 https://www.facebook.com/ialwaysthinkprettythiEntertainment ngs 2.02 1 9.88 2
  35. 35. Rural Spending Analysing the consumption patterns of non-food items of rural consumers, we find that the major share of spending goes to clothing, medical services and fuel needs, whereas urban consumers spend much more on rentals, education and conveyance.https://www.facebook.com/ialwaysthinkprettythings
  36. 36. Khabar Lahariya – A weekly Newspaper in Bundeli A group of women from various sections of the society from the interiors of Chitrakoot and Banda in UttarPradesh were in the news for winning the prestigious Chameli Devi Jain Award for Outstanding Women Media Person. The recognition was given to them for running a weekly newspaper in Bundeli (the local dialect of Bundelkhand) that provided infotainment for the people in the nearby villages. It was in the year 2008 that the Khabar Lahariya group registered themselves as an independent organization, Pahal drawing inspiration from Nirantar, an acclaimed centre for gender and education.https://www.facebook.com/ialwaysthinkprettythings
  37. 37. Contd. The eight page newsletter focuses on issues of importance to the masses, youth and women. Accordingly, it has sections presenting current affairs, national and international news, cases of violence against women, problems of Dalits, school education, marriage, health care and more. The teamwork of the women is impressive. They divide the research and writing works among themselves and work to contribute to the different items of the paper. They go all the way to the nearest city of Allahabad for printing. The women are tech-savvy too. The offices of KL have computers with broadband connections.https://www.facebook.com/ialwaysthinkprettythings
  38. 38. Three Major Revolutions in the Rural Technological EnvironmentGreen Revolution in the Agricultural SectorPeriod from 1967 to 1978 heralded a technological thrust into rural areas aimed at improving food grain production in the country and hence achieving food self-sufficiency.Green Revolution generated some notable economic results:1. Crop areas under high-yield varieties required fertilizers, pesticides, fungicides and other inputs. Farm equipments like tractors with farm implements, diesel pump sets etc. introduced mechanization into the farm sector for the first time.2. The increase in farm production also introduced mechanized processing, spurring growth of the local manufacturing sector.The modernization and mechanization of the farm sector boosted farm productivity, triggered industrial growth, created jobs and initiated a change in the quality of life in villages.https://www.facebook.com/ialwaysthinkprettythings
  39. 39. White Revolution Initiated by the government with the aim of achieving self-sufficiency in the area of milk production. Cornerstone of the government dairy development policy was producing milk in rural areas through producer cooperatives and moving processed milk to urban-demand centres. Gave a boost to dairy development and initiated the process of establishing the much-needed linkages between rural producers and urban consumers. Formation of producer‟s cooperatives has played a significant role in institutionalizing milk production and processing.https://www.facebook.com/ialwaysthinkprettythings
  40. 40. Contd. Socio-economic and demographic factors such as urbanization and changing food habits and lifestyles have also reinforced the growth in demand for dairy products (ice creams, chocolate, yoghurt, butter, flavoured milk etc.). Milk production has increased from 17 million tonnes in 1950-51 to 84.6 million tonnes in 2001-02. Most successful story in dairy development has been in Gujarat, Punjab, Haryana, Uttar Pradesh and Andhra pradesh.https://www.facebook.com/ialwaysthinkprettythings
  41. 41. The NGO Movement Important in providing assistance at the grassroots level assimilation of technological extensions in rural areas. Stepped in to create awareness, build skills, introduce technology and develop capacities for maintenance and sustainability. Government programmes implemented through NABARD, CAPART, KVIC and others are given shape by these organizations. Introduction of low-cost spindles, weaving machinery, technology for leather processing, food processing, natural resources management etc have been some contributions in bringing about change at the grassroots. NGO‟s have been also active in providing basic health and child care services, running homes for destitutes and the distressed and providing education and training opportunities.https://www.facebook.com/ialwaysthinkprettythings
  42. 42. Land Distribution India has a large geographical land area of 3.288 million square kms.Land Classification based on Use: Forest Land : Area covered by forest Uncultivable Land : The land which includes land with tree crops, cultivable waste or permanent pastures are not fit for cultivation. Land not available for Cultivation : Land area used for human dwelling, industry areas, transportation roads, military establishment roads, railways etc. Cultivable Land : Consists of area under cultivation or sown. This includes irrigated land.https://www.facebook.com/ialwaysthinkprettythings
  43. 43. Classification of Land based on Topography Mountains : High lands above 7000 ft in altitude. This forms 10.7 percent in India. Hills : Weathered high lands upto an altitude of 7000 ft. They form 18.6 percent in India. Plateaus : Flat land with an elevation between 1000 ft and 3000ft. They constitute 27.7 percent in India. Plains : Flat land upto an elevation of 1000 ft. This forms 43 percent in India.https://www.facebook.com/ialwaysthinkprettythings
  44. 44. Land Use Pattern Land Management is gaining importance because of increasing demands on land and growth of the population. Forest area and cultivable land percentages have increased. Forest has increased from a level of 14% to 22%. Area sown has increased from 20% to 43%. Area not available for cultivation has reduced and Change of mindset of common man towards ecology, increasing greenery and that every square meter of land be used gainfully. Multi-storeyed buildings form part of the city‟s landscape.https://www.facebook.com/ialwaysthinkprettythings
  45. 45. Increase of Irrigated Land in India In last four decades, the irrigated area has doubled. For centuries, Indian agriculture has depended on rains. The special programmes launched by Government of India to increase the irrigation facilities along length and breadth of India have yielded results and reduced dependence on rain. There is considerable difference in irrigation patterns from state to state in India. States like Punjab and Haryana, where there are enough natural water resources have a good percentage of gross irrigated area to total crop area. If a farmer owns many patches scattered at distances, it makes the entire efforts in agriculture less remunerative. Mechanical farming or agricultural methods cannot be adopted for small land holdings.https://www.facebook.com/ialwaysthinkprettythings
  46. 46. Cropped Area and Irrigated Area Net Area Gross Net area Gross Gross Sown Cropped Irrigated Area Irrigated Area Irrigated as % of Cropped Area1999-2000 142.9 185.7 48 63.2 34.02000-2001 142.2 186.6 53.4 71.4 38.32001-2002 142.8 189.5 55.1 73.3 38.72002-2003 142 190.8 54.6 76.4 39.7 https://www.facebook.com/ialwaysthinkprettythi ngs
  47. 47. Rural infrastructureRoad Connectivity Good road connectivity, particularly in rural areas, between sub-divisional towns and district headquarters is often the primary means of supplementing public efforts directed at providing basic health and educational services, as well as infrastructural support for production and trade and commerce at the local village level. It is particularly relevant in the Indian context where over 70% of the population continues to live in rural areas and where over 50% of villages with population of less than 1000 have yet to be connected by roads.https://www.facebook.com/ialwaysthinkprettythings
  48. 48.  Among the major states, Kerala has the highest road length per hundred square kilometres (375 km in 1997). Population Population Population less than between 1000 more than 1000 & 1500 1500 1991-92 36.52% 72.32% 89.82% 1997-98 37.45% 76.54% 91.72% 2005-06 49.18% 74.58% 78.04% Road connectivity at the village levelhttps://www.facebook.com/ialwaysthinkprettythings
  49. 49. Post Offices India with its 1,55,279 post offices as on 31 March 2002 (138756 post offices are in rural areas) has a postal network that is the largest in the world. On an average, a post office serves an area of 21.17 km and a population of 6614 persons. For providing postal services, the whole country has been divided into 22 postal circles. Each circle is further divided into regions. A postmaster general who is the postal manager of the area heads each region. Post offices in the country are categorized as head, sub and branch post offices.https://www.facebook.com/ialwaysthinkprettythings
  50. 50. Radio From six radio stations at the time of Independence, All India Radio today has 208 radio stations. All Stations of All India Radio broadcast farm programmes and home programmes directed at rural audience. The thrust of the broadcast is on increasing production of agri-products and various programmes adopted by the Government of India.https://www.facebook.com/ialwaysthinkprettythings
  51. 51. Television DD-1 operates through a network of 1042 terrestrial transmitters of varying powers reaching over 87% of the population. Over the years, the viewership of Doordarshan as increased enormously, reaching 7.5 crore homes. Community television sets have been introduced under various schemes operated by Central and State Government.https://www.facebook.com/ialwaysthinkprettythings
  52. 52. Telecom Services By 2004, over 80% of all villages had been connected through 5.4 lakh Village Public Telephones. Similarly, 1.42 crore telephone connections had been given in rural areas. People who are unable to afford a telephone facility of their own can now have access to VPTs in rural areas in addition to Public Call Offices.https://www.facebook.com/ialwaysthinkprettythings
  53. 53. Rural Health Services Sub-centres : The health Sub-Centre is the contact point between the primary health care system and the community. The Staff at health Sub-Centres are assigned tasks related to interpersonal communication in order to bring about behavioral change in relation to maternal and child health, family welfare, nutrition, immunization, control of diarrhoea and control of communicable diseases. Primary health Centres : First contact point between the village community and a medical officer. These are established and maintained by the State Government under the Minimum Needs / Basic Minimum Services Programme. Manned by a medical officer and is supported by 14 paramedical and other staff. Activities include curative, preventive and promotive health care as well as family welfare services.https://www.facebook.com/ialwaysthinkprettythings
  54. 54. Contd. Community Health Centres : Established and maintained by the State Governments under the MNP/BMS programme. Four medical specialists, i.e. surgeon, physician, gynaecologist and paediatrician supported by 21 paramediacal and other staff. 30 indoor beds, with X-ray, labour room, operation theatre and laboratory facilities.https://www.facebook.com/ialwaysthinkprettythings
  55. 55. Print Media The total number of newspapers and periodicals being published in the year 2000 was 49,145. Newspapers were published in as many as 101 languages and dialects during 2000. The reach of newspapers in rural areas are very poor, only 15% of the copies of newspapers reach rural areas. Newspapers normally reach the feeder market or small towns and are read in shops or road side hotels. People sometimes buy newspapers in small towns and take back home, where it is read at home or at common gathering or social gathering.https://www.facebook.com/ialwaysthinkprettythings
  56. 56. Thomson Rural Market Index Market Research is done by market research companies and experts in the field to provide data about consumption patterns, purchase preferences and rural market potential. Hindustan Thompson Associates Limited, a market research and advertising company in India studied the rural areas in India in year 1972. HTAL made its report in 1972 and developed overall indicators of rural market potential in India. These are known as Thompson Rural Market Index. HTAL compiled data of 335 districts based on 26 measurable scale variables. HTAL collated data regarding agricultural details of output in each district.https://www.facebook.com/ialwaysthinkprettythings
  57. 57. Contd.Indicators considered in developing TRMI are: Agricultural Labourers Gross Cropped Area Gross Irrigated Area Area under non food crops Pump sets Fertilizer consumption Tractors Rural Credit Rural Deposits Villages electrifiedhttps://www.facebook.com/ialwaysthinkprettythings
  58. 58.  TRMI has become a useful guide in segmenting and targeting rural markets. Based on TRMI data, the districts have been classified A,B,C,D and E classes. The classification is given: Class of Index Range No. of districts Percentage of Markets Markets A 60.00-100.00 22 17.80 B 40.00-59.99 39 20.5 C 30.00-39.99 54 20.4 D 20.00-29.99 86 23.00 E Below 20 154 18.30https://www.facebook.com/ialwaysthinkprettythings
  59. 59. Contd. The TRMI data needs regular updating due to changes that are continuously taking place in rural India. This is particularly true due to globalisation and changes in government policies and WTO policy issues. TRMI give a comparative analysis for qualitative decision making in rural marketing areas.https://www.facebook.com/ialwaysthinkprettythings
  60. 60. Problems in Rural marketing Unevenly Scattered Population – The spread of population in about 4000 cities and towns is to the extent of 25% and the balance is in six lakh villages. Only 6300 villages have a population of more than 500. This makes the marketers go through a lot of difficulty to reach out to the rural masses effectively. Underdeveloped People and Underdeveloped Market – Since 1947 a number of initiatives have been taken to improve the quality of life in rural areas. In 1947 the rank of India in terms of poverty, unemployment and level of development was 86 in the world but in 1991 it reached the level of 123. The situation has further worsened and the 1996 report on Human Development Index shows that India ranks 136th in 156 countries of the world. Lack of proper Physical Communication Facilities – In India only 50% of the road length is provided with a proper surface. About 36% of the villages in the country do not have road connection and over 65% of our villages are without all-weather road. Thus the road grid makes distribution cost higher , as the road grid as a whole suffers from serious capacity constraints, delays, congestions, fuel wastage and higher vehicle operating costs, marketers face a lot of problems in distribution of products.https://www.facebook.com/ialwaysthinkprettythings
  61. 61. Contd. Low per capita incomes – Share of rural income accounted for 55.6 percent with 74.6 percent of country‟s population, thus reducing the demand of expensive products. Many Languages and Dialects – In India, the number of languages and dialects vary widely from state to state , region to region. The number of languages spoken are only 16, the total number of dialects is estimated to be around 850. The messages to be delivered in the local languages and dialects is a big problem to the marketers. Low level of literacy – This leads to the problem of communication for promotion purposes. In this case, print medium becomes less effective and the dependence on audio visual messages is more relevant in rural areas. Logistics Problems – The rural markets have few selling points like retailers, co-operatives, haats and melas. Lack of infrastructure for storage and handling and limited transport facilities act as a constraint for marketing action. Low Exposure to Market Stimuli – In rural areas, the rural people have low exposure to branded products, low product exposure, limited sources of information and learning which creates big challenge to the marketers to stimulate the rural consumers.https://www.facebook.com/ialwaysthinkprettythings
  62. 62. Contd. Less Retail Outlets – Due to less capital, the shops in the villages have limited availability of stock and limited or a few range of branded products to sell to rural people and these shops keep only fast moving items with a number of fake brands. Seasonal Demand – As 70% of rural population depends on agriculture and most of them with small land holdings highly dependent of natural environment that is rain, if the rains and weather conditions are good and on time the farmers will get good harvest which leads to good income, otherwise, if there is shortage of water the demand may be minimal. Traditional Life – Life in rural areas is still governed by customs and traditions and people do not easily adopt new practices. For eg. Even rich and educated class of farmers do not wear jeans or branded shoes in most of the rural areas.https://www.facebook.com/ialwaysthinkprettythings
  63. 63. Rural Areas RequirementConsidering the importance of agriculture and rural majority the nine five year plans have made considerable progress in improving the agriculture sector and the rural farmer. The rural requirements vary from state to state and the priorities also change. Rural requirements are listed under: Improved seeds and fertilisers Increased means and methods of irrigation Multipurpose farming Use of modern farming equipments and methods Warehousing and preservation of agri-produce. Marketing development and remunerative prices for the produce Improvements in pest control and preservation of crops.https://www.facebook.com/ialwaysthinkprettythings
  64. 64. Contd. R & D work and benchmarking with the best agricultural practices, yields in the world Training of Farmers Increased investments and credit facilities Small land holdings to be consolidated and improvements in tenancy. Animal heath and veterinary facilities. Literacy of farmers and families. Develop village agro-based industries/cottage and village industries Population control Crop insurance Health of farmers Environment friendly agriculture methods Water availability management Remunerative price for milk and milk products and Provision for subsidiary occupations and incomeshttps://www.facebook.com/ialwaysthinkprettythings
  65. 65. Thank youhttps://www.facebook.com/ialwaysthinkprettythings

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