RURAL MARKETINGREAL MARKETINGAny market that exists in a area where the population is less than10000Marketing focuses to reach its target market.In INDIA mostly target market belongs from rural.(70%) L.G. - All places other than the 7 metros Nabard .- All locations with a population up to 10000considered “rural”
ACCORDING TOLATE C.K PRAHALAD(GURU) FUTURE BELONGS TO THOSE COMPANIES WHO SEE RURAL AND POOR AS THEIR CUSTOMERS.
Size of the market Largely Untapped Too crowded UrbanReasons Market for Income on theGoing rise/disposable incomeRural Income from other than agriculture Income flow from urban /abroad Better exposure - media
GOVERNMENT INITIATIVESCONGRESS :-THEY WORKED FOR “AAM AADMI”MGNREGASHGPMGSYMID DAY MEAL
Low per capita income Low disposable income Inadequate fixed incomePROBLEMS (daily wages) IN RURAL Infrastructure problemsMARKETING Roads, power Low awareness Communication- difficult & expensive Too many languages Geographic Spread
FACTS ABOUT RURAL MARKET The average Monthly per capita Consumer Expenditure (MPCE) for rural areas is Rs 1054 and that for urban areas is Rs 1984. 93% people in Rural Area live in their own houses as comparative to 61% of Urban. Food Expenditure in Rural Area is 57% as in Urban it is 44%. 9 in 10 Rural households use branded washing powder or cakes 2 in 5 uses more than 1 brand of soap
Infrastructure improving rapidlyRural literacy level improved from36% to 59%In fifty years only 40% villages havebeen connected by road
EFFICIENCY IN THE SUPPLY CHAIN 40% of the loss occurs in transportation. Less number of warehouses are there then needed Lack of sufficient storage facility Lack of refrigerated logistic support So there is need to invest in these areas such as Providing refrigerated trucks for transportation Sorting centers and education to the marketers.
MICRO FINANCING It is not that overnight rural India has become prosperous and consumerism is booming. A decade ago India has only 400 MF institutions covering nearly 2 lac customers, today more than a 1000 MF institutions crisscross India’s hinterland and serve over 17 million people. Easy finance availability
PRODUCT CUSTOMIZATION Not only reducing the bottle to the sachet Innovative Product like Godrej’s Chottu Cool TATA’s Swatch Water Purifier Max’s Max Vijay L G sampoorna
OTHER STRATEGIESTwo to Tango: Airtel & NokiaChannel Adaption: Success depends a lot on how you approach your target audiencePricing: HPCL sold value not cheaper BrandsEngaging Rural Sales Force: Hero Motocorp