Rural Marketing<br />Aurora’s School of Business<br />www.adhyaapan.in<br />
Rural Marketing<br />www.adhyaapan.in<br />
Expand NABARD<br />Name any two objectives of NABARD<br />What is the function of NABCONS?<br />What is the function of NA...
Government Interventions<br />Bharat Nirman<br />NREGA<br />NABARD<br />Corporate Initiatives<br />Project Shakti<br />e-C...
<ul><li>Villages
638,365
Population
742 million (72%)
Sex ratio
Females per 1000 males
Overall – 933
Urban – 900
Rural – 946
1161 people / village</li></ul>Some facts and figures<br />www.adhyaapan.in<br />* Census of India<br />
<ul><li>FMCG consumption
Rs. 3230/HH(‘95) to Rs. 3384/HH(‘99)
Population BPL
Rural – landholding, type of house, clothing, food security, sanitation, consumer durables, literacy status, labour force,...
Urban - roof, floor, water, sanitation, education level, type of employment, and status of children in a house
1983-1994-2000
252-244-193million
46-37-27%
Human Development Index
Life Expectancy at birth, Knowledge & Education, Standard of Living
1981-1991-2001
0.30-0.38-0.47</li></ul>Why Rural Marketing?<br />www.adhyaapan.in<br />* Census of India<br />
Demographic<br />Infrastructure<br />Occupation<br />Housing<br />Income<br />Education<br />Rural vs. Urban<br />www.adhy...
<ul><li>Rural = Population density < 400/sq.km
India stats
Overall density
325/sqkm
New Delhi – 9340
Bangalore – 8231
Mumbai – 21880
Hyderabad – 16988
Nalgonda – 227
Ranga Reddy District – 468
Prakasam – 173</li></ul>Src: Census of India 2001, APOnline<br />“Rural”<br />www.adhyaapan.in<br />
“Rural”<br />www.adhyaapan.in<br />
Pre 1960s<br />Agri inputs in rural markets<br />Agri products in urban markets<br />1960s to 1990s<br />Green Revolution<...
<ul><li>Definition
Rural to Urban
Urban to Rural
Rural to Rural
Evolution
Green Revolution
Origin?
Norman Borlaug(1943)
Results?
High-yielding wheat, rice
Fertilizers
Pesticides
Farm Equipment</li></ul>Rural Marketing<br />www.adhyaapan.in<br />
<ul><li>Market Environment
Demographic
Age
~48% < 20 yrs
Education
1981-1991-2001
35-45-59%
Housing / Infrastructure
Type of houses
Economic
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Rural marketing

  1. 1. Rural Marketing<br />Aurora’s School of Business<br />www.adhyaapan.in<br />
  2. 2. Rural Marketing<br />www.adhyaapan.in<br />
  3. 3. Expand NABARD<br />Name any two objectives of NABARD<br />What is the function of NABCONS?<br />What is the function of NABFINS?<br />Mention any 3 thrust areas of NABARD<br />NABARD<br />www.adhyaapan.in<br />
  4. 4. Government Interventions<br />Bharat Nirman<br />NREGA<br />NABARD<br />Corporate Initiatives<br />Project Shakti<br />e-Choupal<br />India Agriline<br />SKS Microfinance<br />Focus Areas<br />www.adhyaapan.in<br />
  5. 5. <ul><li>Villages
  6. 6. 638,365
  7. 7. Population
  8. 8. 742 million (72%)
  9. 9. Sex ratio
  10. 10. Females per 1000 males
  11. 11. Overall – 933
  12. 12. Urban – 900
  13. 13. Rural – 946
  14. 14. 1161 people / village</li></ul>Some facts and figures<br />www.adhyaapan.in<br />* Census of India<br />
  15. 15. <ul><li>FMCG consumption
  16. 16. Rs. 3230/HH(‘95) to Rs. 3384/HH(‘99)
  17. 17. Population BPL
  18. 18. Rural – landholding, type of house, clothing, food security, sanitation, consumer durables, literacy status, labour force, means of livelihood, status of children, type of indebtedness, reasons for migrations(score 0:4, total < 15/52)
  19. 19. Urban - roof, floor, water, sanitation, education level, type of employment, and status of children in a house
  20. 20. 1983-1994-2000
  21. 21. 252-244-193million
  22. 22. 46-37-27%
  23. 23. Human Development Index
  24. 24. Life Expectancy at birth, Knowledge & Education, Standard of Living
  25. 25. 1981-1991-2001
  26. 26. 0.30-0.38-0.47</li></ul>Why Rural Marketing?<br />www.adhyaapan.in<br />* Census of India<br />
  27. 27. Demographic<br />Infrastructure<br />Occupation<br />Housing<br />Income<br />Education<br />Rural vs. Urban<br />www.adhyaapan.in<br />
  28. 28. <ul><li>Rural = Population density < 400/sq.km
  29. 29. India stats
  30. 30. Overall density
  31. 31. 325/sqkm
  32. 32. New Delhi – 9340
  33. 33. Bangalore – 8231
  34. 34. Mumbai – 21880
  35. 35. Hyderabad – 16988
  36. 36. Nalgonda – 227
  37. 37. Ranga Reddy District – 468
  38. 38. Prakasam – 173</li></ul>Src: Census of India 2001, APOnline<br />“Rural”<br />www.adhyaapan.in<br />
  39. 39. “Rural”<br />www.adhyaapan.in<br />
  40. 40. Pre 1960s<br />Agri inputs in rural markets<br />Agri products in urban markets<br />1960s to 1990s<br />Green Revolution<br />Agri inputs – including technology<br />Post 1990s<br />Durables<br />Consumables<br />Urban focus due to globalisation<br />Rural Marketing<br />www.adhyaapan.in<br />
  41. 41. <ul><li>Definition
  42. 42. Rural to Urban
  43. 43. Urban to Rural
  44. 44. Rural to Rural
  45. 45. Evolution
  46. 46. Green Revolution
  47. 47. Origin?
  48. 48. Norman Borlaug(1943)
  49. 49. Results?
  50. 50. High-yielding wheat, rice
  51. 51. Fertilizers
  52. 52. Pesticides
  53. 53. Farm Equipment</li></ul>Rural Marketing<br />www.adhyaapan.in<br />
  54. 54. <ul><li>Market Environment
  55. 55. Demographic
  56. 56. Age
  57. 57. ~48% < 20 yrs
  58. 58. Education
  59. 59. 1981-1991-2001
  60. 60. 35-45-59%
  61. 61. Housing / Infrastructure
  62. 62. Type of houses
  63. 63. Economic
  64. 64. Income / Type of expenditure
  65. 65. Income type</li></ul>“Rural” Market<br />www.adhyaapan.in<br />
  66. 66. “Rural”<br />www.adhyaapan.in<br />
  67. 67. Income Type<br />www.adhyaapan.in<br />
  68. 68. Income Type<br />www.adhyaapan.in<br />
  69. 69. Income Pattern<br />www.adhyaapan.in<br />
  70. 70. Income Pattern<br />www.adhyaapan.in<br />
  71. 71. 92% of wage earners < Rs. 70,000/- pa<br />75% of cultivators < Rs. 70,000/- pa<br />41% of professionals > Rs. 105000/- pa<br />74% of shopkeepers < Rs. 70,000/pa<br />Occupation vs. Income Level<br />www.adhyaapan.in<br />
  72. 72. Rural Market – Physical Environment<br />www.adhyaapan.in<br />
  73. 73. Market Influencers<br />Socio-Cultural<br />Caste<br />Technological<br />Green Revolution<br />White Revolution<br />“Rural” Market<br />www.adhyaapan.in<br />
  74. 74. Rural Infrastructure<br />www.adhyaapan.in<br />
  75. 75. Communication<br />Post Offices<br />Radio<br />Television<br />Print Media<br />Telecom<br />Mobile / Fixed Line<br />Rural Infrastructure<br />www.adhyaapan.in<br />
  76. 76. Health<br />3-tier Primary Healthcare<br />Sub-Centre(SC)<br />Primary Health Centre(PHC)<br />4-6 beds<br />14 staff – paramedics, etc.<br />Community Health Centre(CHC)<br />Rural Infrastructure<br />www.adhyaapan.in<br />
  77. 77. Marketing / Distribution<br />Mandi<br />Agri markets by state govts to procure farm produce<br />Agriculture Cooperative<br />Network of cooperatives<br />Haats / Melas / Jataras<br />Seasonal / periodic markets<br />Rural Infrastructure<br />www.adhyaapan.in<br />
  78. 78. Infrastructure: Bharat Nirman, PradhanMantriGramodayaYojana(rural housing – 2001-02)<br />Employment: PradhanMantriRozgarYojana, Swarnajayanti Gram SwarojgarYojana(self-employment)<br />Food Security: SampoornaGrameenRozgarYojana<br />Finance: NABARD(Kisan Credit Cards)<br />Govt. Interventions<br />www.adhyaapan.in<br />
  79. 79. Consumer Behaviour<br />Calvin and Hobbes<br />www.adhyaapan.in<br />
  80. 80. <ul><li>What is consumer behaviour?
  81. 81. How individuals decide how to spread their resources to consume goods / services
  82. 82. What they buy
  83. 83. Why they buy it
  84. 84. When they buy it
  85. 85. Where they buy it
  86. 86. How often they buy it
  87. 87. How they use it
  88. 88. How often they use it</li></ul>Consumer Behaviour<br />www.adhyaapan.in<br />
  89. 89. Consumer Behaviour<br />The Buying Process<br />www.adhyaapan.in<br />
  90. 90. <ul><li>Stimuli
  91. 91. Visuals, ads, packaging, etc
  92. 92. Perception
  93. 93. Awareness of stimuli
  94. 94. Interpretation of stimuli
  95. 95. Attitudes
  96. 96. Beliefs, feelings, values, etc.
  97. 97. How to change attitudes?
  98. 98. Change effect
  99. 99. Classical conditioning / Pavlov’s dog
  100. 100. Change belief
  101. 101. How can marketing change beliefs?
  102. 102. Coke
  103. 103. Tide
  104. 104. Surf
  105. 105. Pepsodent
  106. 106. Axe
  107. 107. Change behaviour</li></ul>Influences on Consumer Behaviour<br />www.adhyaapan.in<br />
  108. 108. <ul><li>Needs & Motives
  109. 109. Types / Levels
  110. 110. Basic
  111. 111. Security
  112. 112. Social
  113. 113. Esteem
  114. 114. Self Actualisation
  115. 115. Social Class
  116. 116. Influence Group
  117. 117. Reference Groups
  118. 118. Opinion Leaders
  119. 119. Innovations
  120. 120. Crossing the chasm</li></ul>Influences on Consumer Behaviour<br />www.adhyaapan.in<br />
  121. 121. Stages of Influence<br />Stimuli, Perception, Attitudes(Change behaviour, effect, belief), Needs, Social Class, Influence Group(Reference, Opinion Leaders, Innovations)<br />Buying Roles<br /><ul><li>Initiator
  122. 122. Influencer
  123. 123. Decider
  124. 124. Buyer
  125. 125. User</li></ul>www.adhyaapan.in<br />
  126. 126. Buyer's Remorse<br /><ul><li>An emotional condition whereby a person feels remorse or regret after a purchase
  127. 127. What goods / services?
  128. 128. Why?
  129. 129. Wrong product
  130. 130. Wrong time
  131. 131. Wrong price
  132. 132. Could have waited for a newer version
  133. 133. Purchase considered unacceptable
  134. 134. Pre & Post Purchase
  135. 135. Pre – Wide range of choices
  136. 136. Post – Stuck with what has been bought</li></ul>Post Purchase Behaviour<br />www.adhyaapan.in<br />
  137. 137. Post purchase behaviour<br />Price comparison<br />With other products / models<br />With other buyers<br />Opportunities for marketers<br />Post purchase service call<br />Buyer’s Remorse<br />www.adhyaapan.in<br />
  138. 138. Targets / Guidelines<br />40 litres potable drinking water per capita per day for humans<br />30 litres for animals in hot/cold deserts<br />One hand pump(12 litre/ min) for every 250 people<br />Issues<br />Excess ground water extraction, insufficient recharge<br />Continuous / Online monitoring – Panchayat level<br />Training, financial assistance, and water-testing kits<br />Bharat NirmanProject – Water<br />www.adhyaapan.in<br />
  139. 139. Bharat Nirman Project – Water Quality<br />www.adhyaapan.in<br />
  140. 140. Programme Evaluation Organisation<br />“Evaluation Study on Rural Roads Component of Bharat Nirman” – PEO Report No. 210, May 2010<br />Bharat Nirman – Roads<br />www.adhyaapan.in<br />
  141. 141. Overall Satisfaction – 91.1%<br />Bihar – 34%<br />Assam – 16%<br />Overall Achievement – 66%<br />“Completed In Time” – 20%<br />PGMSY – 7.25%<br />Reasons for Delay<br />Weather conditions<br />Land Acquisition<br />Labour & Material<br />Incomplete Roads – 8%<br />Bharat Nirman – Roads<br />www.adhyaapan.in<br />
  142. 142. Impact<br />Access to Educational Institutions<br />Access to Health Care<br />Bharat Nirman – Roads<br />www.adhyaapan.in<br />
  143. 143. <ul><li>What is?
  144. 144. Market research is the process of gathering, recording and analyzing information about the market
  145. 145. Traditional Market Research techniques
  146. 146. Questionnaires / Surveys
  147. 147. Focus Groups
  148. 148. Interviews
  149. 149. Observation
  150. 150. Trials</li></ul>Market Research<br />www.adhyaapan.in<br />
  151. 151. <ul><li>Identify the problem
  152. 152. Define the problem
  153. 153. Determine research design
  154. 154. Exploratory, Descriptive, Causal
  155. 155. Identify data types & sources
  156. 156. Design data collection form / questionnaire
  157. 157. Define sample
  158. 158. Collect data
  159. 159. Analyse data
  160. 160. Draw inference / insights & prepare report</li></ul>Research Process<br />www.adhyaapan.in<br />
  161. 161. <ul><li>The Market
  162. 162. Lack of knowledge about MR & techniques
  163. 163. Lower literacy levels
  164. 164. Social / Cultural
  165. 165. Poor awareness / media exposure
  166. 166. The Researcher
  167. 167. Insufficient understanding of the rural market
  168. 168. Demographics
  169. 169. Density / Sparsity</li></ul>Challenges in the Rural Market<br />www.adhyaapan.in<br />
  170. 170. Simplicity<br />Rapport / Relationship<br />Interviews – Individuals vs. Crowds<br />Words of Caution<br />www.adhyaapan.in<br />
  171. 171. Research Techniques<br />Faces<br />www.adhyaapan.in<br />
  172. 172. <ul><li>Colour Wheel
  173. 173. Green?
  174. 174. Healthy crop
  175. 175. Red?
  176. 176. Danger
  177. 177. Black?
  178. 178. Death / Misforture
  179. 179. Dark brown?
  180. 180. Fertile soil
  181. 181. Primary Colours</li></ul>Research Techniques<br />*MART: www.martrural.com<br />www.adhyaapan.in<br />
  182. 182. Dice<br />Associate each face of die to items<br />Confusing – not all faces visible at once<br />Distribution technique – Ranking<br />Coins<br />Distribute a limited set of coins among items<br />Assign different stacks to different items<br />Research Techniques<br />www.adhyaapan.in<br />
  183. 183. Ladder – Ranking<br />Higher rung ~ higher / better rank<br />Research Techniques<br />www.adhyaapan.in<br />
  184. 184. Playing Cards – Ranking<br />Ace vs. King<br />Research Techniques<br />www.adhyaapan.in<br />
  185. 185. <ul><li>Segmentation – What is?
  186. 186. Dividing a heterogeneous group / market into homogenous clusters with significantly similar characteristics
  187. 187. Why segment?
  188. 188. Identify & fulfill similar needs
  189. 189. Communicate effectively
  190. 190. Segmentation requirements
  191. 191. Viable, Measurable, Distinguishable, Accessible</li></ul>Segmentation, Targeting & Positioning<br />www.adhyaapan.in<br />
  192. 192. <ul><li>Geographic
  193. 193. Demographic
  194. 194. Age, occupation, Income, Education, Religion
  195. 195. Psychographic
  196. 196. Relating to lifestyle, class
  197. 197. SEC(Education of bread-winner, ownership of durables & type of dwelling)
  198. 198. R1 / R2 / R3 / R4
  199. 199. Behavioral
  200. 200. Occasions, etc</li></ul>Segmentation Techniques<br />www.adhyaapan.in<br />
  201. 201. <ul><li>Choice of segment / target based on
  202. 202. Attractiveness
  203. 203. Ability / Competence to target
  204. 204. Positioning
  205. 205. What is?
  206. 206. Positioning the product / service offering in the mind of the consumer
  207. 207. Develop / Decide Positioning
  208. 208. Develop communication strategy</li></ul>Targeting & Positioning<br />www.adhyaapan.in<br />
  209. 209. Product<br />Price<br />Place<br />Promotion<br />Marketing Mix<br />www.adhyaapan.in<br />
  210. 210. Challenges in the rural context<br />Marketing Mix<br />www.adhyaapan.in<br />
  211. 211. Product Category<br />A range of products with an objective to fulfill the same need(s) of the consumer<br />Rural Product Categories<br />FMCG<br />Durables<br />Agri Goods / Inputs<br />Services<br />Product<br />www.adhyaapan.in<br />
  212. 212. Graphical Representation?<br />Product Development<br />Product Introduction / Seeding<br />Product Growth / Sapling<br />Product Maturity / Harvesting<br />Product Decline / Withering<br />Product Lifecycle<br />www.adhyaapan.in<br />
  213. 213. Purposes of packaging?<br />Protecting<br />Quantifying<br />Cosmetic / Aesthetic<br />Packaging Considerations<br />Size<br />Material<br />Aesthetics<br />Product Packaging<br />www.adhyaapan.in<br />
  214. 214. <ul><li>Look alike
  215. 215. Similar / Identical logo & packaging material, but different name
  216. 216. E.gAquifinA – AquafinA
  217. 217. Spell alike
  218. 218. Vesoline – Vaseline
  219. 219. Duplicates
  220. 220. Spurious product in original packaging
  221. 221. Nokia</li></ul>Challenges – Product<br />www.adhyaapan.in<br />
  222. 222. <ul><li>Price – The odd one out in the marketing mix!
  223. 223. Why?
  224. 224. Pricing Objectives?
  225. 225. Profit
  226. 226. Market share
  227. 227. Break-even
  228. 228. Pricing Challenges
  229. 229. Income Levels
  230. 230. Income patterns
  231. 231. Discounts / Beneficiaries(Communication)</li></ul>Pricing<br />www.adhyaapan.in<br />
  232. 232. <ul><li>Challenges
  233. 233. Infrastructure – roads, energy, electricity
  234. 234. Scattered population
  235. 235. Low shop density
  236. 236. Channel costs
  237. 237. Impact on consumer behaviour
  238. 238. Innovations
  239. 239. Retail
  240. 240. Go-Mobile
  241. 241. Existing channels</li></ul>Place<br />www.adhyaapan.in<br />
  242. 242. Message<br />Medium<br />Source<br />Promotion / Communication<br />www.adhyaapan.in<br />
  243. 243. What are the 6 areas of development undertaken in the Bharat Nirman Project? – Name at least 4<br />Irrigation, Roads, Electricity, Housing, Drinking Water, Telephone Connectivity<br />Bharat Nirman requires a hand pump for how many persons? – i.eone hand pump for every ____ persons<br />250<br />Bharat Nirman targets road connectivity to habitations. What is the minimum population of these habitations?<br />1000; for hilly terrain – 500<br />Who funds the programmes under Bharat Nirman? In what ratio?<br />Centre : State :: 75 : 25<br />Name at least 2 types of projects / works to be undertaken under NREGA<br />Quiz 1<br />www.adhyaapan.in<br />
  244. 244. Water Conservation, Water Harvesting<br />Drought Proofing<br />Irrigation Canals / Irrigation Works<br />Irrigation to SC/ST owned land / Indira AwasYojana beneficiaries<br />Water-body renovation / De-silting<br />Land Development<br />Flood Control / Protection – Drainage systems<br />All weather rural roads<br />Any other work notified by Central govt<br />Quiz 1<br />www.adhyaapan.in<br />
  245. 245. Water supply<br />Housing <br />Telecommunication and IT<br />Roads<br />Electrification<br />Irrigation<br />Q1<br />www.adhyaapan.in<br />
  246. 246. water conservation, irrigation, land development, rural roads<br />Q5<br />www.adhyaapan.in<br />

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