Rural marketing

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Rural marketing

  1. 1. Rural Marketing Presented By; NEETU.P.S PGDBM „B‟ SEC
  2. 2. What is Rural Marketing? Rural marketing is the study of all the Activity , agency and policy involved in.. The procurement of farm inputs by the Farmers and the movement of rural products from farmers to consumers. -G.N. MURTHY
  3. 3. Defn.. According to, T P Gopalaswamy, “Rural marketing is a two-way process which encompasses the discharge of business activities that direct the flow of goods from urban to rural areas (for manufactured goods) and vice versa (for agriculture produce), as also within the rural areas”
  4. 4. RURAL MARKET IN INDIA  In the India context, the word ‘RURAL’ is so much associated with agriculture and farmers that rural marketing tends to be seen as a marketing of inputs or outputs related to agriculture.  The rural market in India has great potential, which is just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor as it used to be a decade or so back.
  5. 5. Rural Market Environment The Rural Consumer The Rural Demand Other Aspects
  6. 6. NATURE OF RURAL MARKETING Large, Diverse and Scattered Market  Major Income of Rural consumers is from Agriculture  Traditional Outlook  Rising literacy levels  Diverse socioeconomic background  Infrastructure Facilities 
  7. 7. Importance of rural marketing  Size of rural market Rural target population Employment Better living  Contribution to national income  Increase in farm income
  8. 8. Scope of Rural Marketing  Keenly debated topic  Definitions based on organisational/ institutional vision, mission & goals  Need for a comprehensive and modular understanding  Rural Marketing is a “ work in progress”  Multi – disciplinary approach is necessary for sharper understanding
  9. 9. Rural products Rural products are the results of the art of agriculture and allied activities. In a narrow sense,rural products refer to the products arising out of the cultivation, namely various crops, vegetables and fruits etc.
  10. 10. Types of rural goods Industrial goods  consumer goods Industrial goods:-industrial rural goods are those use for further industrial processing. e.g. tabacoo, fibre crops like cotton and jute. Consumer goods:-goods are mean for direct use like all foodgrains, dairy product, poultry products vegetables and fruits. 
  11. 11. • Some well established products – Pressure Cooker Artificial Jewellery – Cooking Utensils , Medicines – Batteries Tobacco Products – Scooters, Motorcycles Soaps, Detergents – Bicycles Electrical Goods (fan,light) – Radio T.V – Pesticides, Fertilizers Wrist Watches – Tea ,Mobile Phones – Sewing Machines
  12. 12.   Steady Growth from the past 2 decades Welcome change in the composition of Rural Demand ◦ Several products already well established in the rural market ◦ In many products the rural market share is greater than the urban market ◦ In many products rural market has overtaken the urban in growth rate
  13. 13. Attractiveness of rural market Rural markets have become the new targets to corporate enterprises for two reasons : 1. Urban market has become congested with too many competitors. 2. The market have reached a near saturation point.
  14. 14.  The Rural Market is being seen as a Growing Opportunity mainly because of the following – ◦ Rural Demand is growing rapidly ◦ Purchasing power has increased ◦ Cut Throat competition in the Urban Markets ◦ Rural market is largely unexplored and untapped ◦ There would be opportunities for new entrants as compared to urban population being loyal to specific brands ◦ The volume and the strength
  15. 15. Companies already into Rural Area                 Company Rural Sales (% of total) HUL 50 Colgate 50 Godrej 30 Cavinkare 33 Marico 25 Cadbury 25 Cipla 18
  16. 16. Current Scenario Of Rural India & Govt. Initiatives
  17. 17. Rural Market
  18. 18. 700 million potential consumers,  over 40 per cent of the Indian middleclass, and about half the country's disposable income 
  19. 19.  68% population of India is in Rural India.  More than 10 Government schemes Running.  Main Target is to Increase Rural income by generating employment.  SGSY, MNREGA, SHG‟s – Step towards Generating Employment.
  20. 20.  Budget Allocation up from INR 10,000 Crs. to 58,000 Crs. for rural development.  As per BCG and CII reports Rural Customers will be 36% of House Holds by 2025.  This market will be open for retail sector.  Ten Fold growth In rural Market by 2025 to reach USD 100 Bn Mark. -
  21. 21. Marketing In Rural India    Rural Marketing is Less Liquidity Demanding. Village Meals, Nukkad Natikas, Mobile Vans, Wall Paintings Can do the trick. These marketing attempts have been very effective.
  22. 22. Khaitan fans' ad on a horse cart
  23. 23. Typical shop in rural India stocked with sachets, etc
  24. 24.  In 2000, ITC took an initiative to develop direct contact with farmers who lived in far-flung villages in Madhya Pradesh. ITC's E-choupal was the result of this initiative
  25. 25. Satellite dish antennas reach rural India

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