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  • 1. WELCOME
  • 2. Course Seminar on : Rural Marketing: Opportunities, Challenges & Strategies
    Presented by : Satish N Nande
    ID No : ABM-08134
    Master of Agribusiness Management
    Department of Economic
  • 3. Contents
    Rural marketing
    Evolution of rural marketing
    What makes rural marketing attractive
    Opportunities of Indian rural marketing
    Myths about Rural Marketing
    Challenges and Strategies for Rural Marketing
    Case Study
    ITC e- Choupal
  • 4. Rural Marketing
    On account of green revolution, the rural area are consuming a large quantity of industrial and urban manufactured products. Thus a special marketing strategy emerged known as Rural Marketing.
    Rural marketing involvedelivering manufactured or processed inputs or services to rural producers or consumers.
  • 5. What Makes Rural Markets Attractive ?
    Untapped rural potential
    - 6,27,000 villages across the country
    - account for 70% of population
    - 60% of national demand for various product categories
  • 6. 41 million kisan Credit Card have been issued
    Of the 20 million Rediffmail sign up, 60% are from small towns. 50% of transaction from these town .
    42 million rural household are avaling banking services in comparison to 27 million HHs in urban HHs.
    Investment in formal saving instruments is 6.6 million HHs and 6.7 million HHs in urban.
  • 7. Opportunities....
  • 8. 1) 60 per cent of the Indian population lives in villages
    2) In the period between 2003-04 and 2008-09, the Indian Government increased Agriculture Budget allocation by a significant 300 per cent.
    3) The RashtriyaKrishiVikasYojana was launched in 2007-08 with an outlay of Rs.25 thousand crore
    4) increase the flow of credit to agriculture gone up from Rs.87 thousand crore in 2003-04 to about Rs.2.5 lakhcrore in 2007-08
  • 9. Improvement in infrastructure
    - In 50 years , 40% villages have been connected by road, in next 10 year another 30% would be connected
    -More than 90%villages are electrified ,through only rural homes have electric connection
    -Rural telephone density has gone up by 300% in the last 10 years
  • 10. Improvement in social indicators between 1981 to 2001
    -No. of “pucca” house doubled from 22% to 41%
    -No. of “Kuccha” house halved from 41% to 27%
    -Percentage of BPL families declined from 46% to 27%
    -Rural literacy level improved from 36% to 59% in past two decades
  • 11. Low Penetration rate
    Low penetration rates in rural areas , so there are many marketing opportunities
  • 12. Myhs about rural market
    1) Rural market is a homogeneous
    2) Disposable income is low
    3) Individuals decide about purchases
  • 13. Myh 1: rural market is a homogeneous mass
    Heterogeneous population
    Various tiers depending on the income
    State wise variation in rural demographics
    Literacy % in ( Kerala 90%, Bihar 44%)
    Population below poverty line (Orissa 48%, Punjab 6%)
  • 14. Myth 2: disposable income is low
    Number of middle class ( annuals income Rs 45000-2,15,000)
    Rural 27.4 million
    Urban 29.5 million
    Per Capita annual income
    Rural Rs 9481
    Urban Rs 19,407
    Total Rs 12,128
  • 15. Myth 3: Individuals Decide About Purchases
    Decision making process is collective
    Purchase process - can all be different
  • 16. Challenges….
  • 17. · Understanding the Rural Consumer
    · Poor Infrastructure
    · Physical Distribution
    · Channel Management
    · Promotion and Marketing Communication
  • 18. 1) Availability (Place)
    2) Affordability (Price)
    3) Acceptability (Product)
    4) Awareness (Awareness)
    4 A’ s approach of Indian rural market
  • 19. 1) Availabiliy
    Regularly reach product to the far-flung villages.
    Indias 627,000 villages are spread over 3.2 millions sq Km ; 700 million indians may live rural areas
    Strive to reach at least 13,113 villages with a population market penetration
    Can reach the market bye the following ways:
  • 20. At Chaupals , Retail Outlet
  • 21. Mandi , Travel
  • 22. Conts…..
    Hindustan lever, to serve remote village ,use auto rickshaws ,bullock-carts and even boats in the backwaters of Kerala.
    Coca-Cola, has evolved a hub and spoken distribution Mosel to reach the village .to ensure full loads ,the company depot supplies ,twice a week, large distributors which who act as hub . These distributors appoint and supply ,once a week, smaller distributors in adjoining areas.
    Challenges :
    To provide at cheaper price
    Strategies :
    Introduce small unit packs.
  • 24. acceptability
    Challenge: To gain acceptability for the product or service
    Offer product or services that suit the rural market
    Easy to understand
    Coca-Cola company because of the lack of electricity and refrigerator in the rural area ,it provide low –cost ice boxes ,a tin box for new outlets and thermocol box for seasonal outlets.
  • 25. Awareness
    Challenges : less exposure to the world , low literacy rate
    Opinion leaders play a key role in popularizing product and influence in rural market so choose the appropriate opinion.
    Can use the following promotional methods:
  • 26. Personal interface
    One on One contact programs are extremely efficient manner to reach the rural consumer.
    Provide an opportunity to
    Induce Trial
  • 27. Event : Melas
    An opportunity to present brand stories using better display tools
    Large screens
    Melas can be used for
    Retail sale points
    Sampling exercise
  • 28. Haats : presence in the market
    42000 rural haats
    Average 4500 +visitors per haats
    Sales per day US $ 5000
    300 + sales outlet per haats
  • 29. Strategies to be Followed
    1) Marketing Strategy
    2) Distribution Strategy
    3) Promotional Strategy
  • 30. Marketing Strategy
    Marketers need to understand the psyche of the rural consumers .
    intensive personal selling efforts
    Firms should refrain from designing goods for the urban markets and subsequently pushing them in the rural areas
    by utilizing the various rural folk media to reach them in their own language
  • 31. Distribution Strategy
    using company delivery van which can serve two purposes
    Annual "melas
    fixing specific days in a week as Market Days (often called "Haats')
    "Mandis" or Agri-markets
  • 32. Promotional Strategy
    the audio visuals must be planned to convey a right message to the rural folk. The rich, traditional media forms like folk dances, puppet shows, etc., with which the rural consumers are familiar and comfortable, can be used for high impact product campaigns.
  • 33. Example……..
    · ITC is setting up e-Choupals, which offers the farmers all the information, products and services they need to enhance farm productivity, improve farm-gate price realization and cut transaction costs. Farmers can access latest local and global information on weather, scientific farming practices as well as market prices at the village itself through this web portal - all in Hindi. It also facilitates supply of high quality farm inputs as well as purchase of commodities at their doorstep.
  • 34. Conclusion
    Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.
  • 35. References
    1. Rural Marketing, Ravindranath V. Badi and Naranyansa V. Badi, Himalaya Publishing, 2004
    2. The Hindu - Business Line
  • 36. THANK YOU