Rural marketing


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Rural marketing

  1. 1. SEGMENTING RURAL CONSUMERS Rural consumers are heterogeneous and so Segmentation is requiredReasons for market Segmentation• Understanding the needs of consumers• Better position to spot marketing opportunities• Allocation of marketing Budgets• Meeting the competition effectively• Effective marketing programmes 1
  2. 2. SEGMENTING RURAL CONSUMERS• Choosing of Advertising media• Increasing sales volume• Benefits the consumers• Better utilization of marketing resources• Discovering marketing opportunities• Specialized marketing• Provision of Information 2
  3. 3. SEGMENTING RURAL CONSUMERS• Evaluation of marketing activities• Marketing efficiency• Formulation of marketing mix• Making of suitable adjustments 3
  4. 4. SEGMENTING RURAL CONSUMERS Requirement for Effective Segmentation• Substantiality (Sufficiently large)• Measurability (Changes in the behaviour)• Accessibility (Promotion and distribution possible)• Representability(Individuality)• Effective demand• Responsiveness ( For Changes) 4
  5. 5. SEGMENTING RURAL CONSUMERSBASES FOR SEGMENTATIONI Socio economic factors• Sex- Male, Female• Age- Children, young, adults, old• Income- High, middle, low• Education level- educated, semi educated, uneducated• Size of family- large, medium, small• Caste and Religion• Business or Profession 5
  6. 6. SEGMENTING RURAL CONSUMERSBASES FOR SEGMENTATIONII Geographical factors• Rural• Urban• Regional• State• National• International• Plain• Hot• Cold 6
  7. 7. SEGMENTING RURAL CONSUMERSBASES FOR SEGMENTATIONIII Psychographic or Personality factors• Thinking• Attitudes• Buying motives• Prestige and status• Usefulness 7
  8. 8. SEGMENTING RURAL CONSUMERSBASES FOR SEGMENTATIONIV Consumer Behaviour factors• Usage rate: non users, light users, middle users, heavy users• Buying motives: quality of goods, reliability of goods, prestige• Brand loyalty 8
  9. 9. SEGMENTING RURAL CONSUMERSRural consumers are heterogeneous as far as• Literacy• Economic condition• Life style• Buying behaviour 9
  10. 10. BASES OF SEGMENTATION OF RURAL MARKETS I GEOGRAPHIC SEGMENTATIONa. Climate Favourable climate- Areas are prosperous Unfavourable climate- Areas are handicappedb. Level of Irrigation Irrigated areas- prosperous Dry land areas- are notc. Nearness to feeder town Closer to feeder town- frequent visit Away from feeder town- rare visit 10
  11. 11. II DEMOGRAPHIC SEGMENTATIONa.Population- Spread or Concentratedb.Age of rural population- youth more buyingc.Literacy leveld.Income of rural people- Regular Income group Seasonal Income groupIII BUYING BEHAVIOUR SEGMENTATIONa.High priced branded goodsb.Low priced non branded goods 11
  12. 12. IV SOCIOLOGICAL FACTORSa. Landlordb. Small farmersc. TenantsV Occupational Factorsa. Farmersb. Craftsmenc. Artisansd. Salaried employees 12
  13. 13. MARKETING MIX FOR RURAL MARKETS1.Segmentation and Targeting Rural consumers are not homogeneous2.Product Mix Smaller Packages Sturdy Utility products3.Price Mix Low cost 13
  14. 14. 4. Distribution Mix It should be strong because less population density poor transport and communication scattered outlets5. Promotion Mix TV Radio Print media – Not advisable Films with mobile vans 14
  15. 15. RURAL MARKETING STRATEGIES• Fertilizers• Agro chemicals• Seeds• Feeds• Tractors and Tillers• Irrigation Equipments• Other farm machinery and inputs 15
  16. 16. RURAL MARKETING STRATEGIES1. Product Strategies2. Price Strategies3. Physical Distribution Strategies4. Promotion Strategies 16
  17. 17. 1.PRODUCT STRATEGIES It is a company plan for marketing its products. The various issues involved in the product strategy are• Product line and product mix• Branding• Packaging• Product Warranties• After Sales Service 17
  18. 18. PRODUCT LINE AND PRODUCT MIX• Different Products• Different Models• Different Product Designs• Sturdy Products• Products of high utility• Colour, shape, Safety, Size• Quality of performance 18
  19. 19. BRANDING• National Brand• Regional Brand• Local Brand• Imitation products• Rin- Run• Nirma- Narima• Lifebuoy- Liteboy, Lifejoy• Fair and Lovely- Friends and Lovely 19
  20. 20. BRANDING- Popular in Rural Area• Nirma girl in frock• Dettol sword• Aravind Mills Ruff and Tuff• HUL Lifebuoy• Britannia Tiger• Tata Sonata• Godrej toothpaste• Dalda Vanaspathi 20
  21. 21. PACKAGING Small Packets Sachets Simple packets Polythin packets 21
  22. 22. PRODUCT WARRANTYConsumer durables AFTER SALES SERVICEConsumer durables 22
  23. 23. 2. PRICING STRATEGIESNo costly productsAffordable priceQuality commensuration valid Eveready Hero Honda CD 100- More mileage and less maintenanceRajdooth 23
  24. 24. 3.DISTRBUTION STRATEGIESMainly distribution through the distributors in the large townsEfficient distribution system Covering villages with a population of 2000 and above Use of cooperative societies Use of PDS Utilization of Petrol pumps Use of agricultural users Use of sandys, jathras and melas Use of Vans Joining of two or more marketers 24
  25. 25. 4.PROMOTION STRATEGIES Word of mouth Opinion leaders TV, Radio and Cinemas Press media Hoardings and Wall paintings Puppet shows and street plays Personal selling and Salesmanship 25
  26. 26. PROMOTION TOOLS IN THE RURAK MARKET TV- Doordarshan and Regional channels Radio- AIR, Vividha Bharathi Cinema- Tent Cinema and Temporary cinema houses Newspaper- Local Packaging- Local language communication Outdoor Print- Stones, Trees POP displays- PDS, local retail outlets Sales force- Door to Door 26
  27. 27. PROMOTION TOOLS IN THE RURAL MARKET Exhibition and Demo- Fairs, Sandys, Mandis, Melas Price offs- Mansoon season Event sponsoring- Puppet shows, folk events, magic shows, village sports. Free Magazine- Agricultural Community Relationship- Free Medical camps, Participation in village festivals Infrastructure- Construction of rural roads, dams, bridges. 27
  28. 28. THOMPSON RURAL MARKET INDEX Attempt to assess the potential of rural markets has been made by Hindustan Thompson Associates Ltd.Districts considered : 383.Rural Market Index for : 355 districts.Factors considered for Rural Market Index : 26.I. Demographics1. Area of districts in Sq. Kms.2. Population- Rural in numbers3. Males- in numbers4. Females- in numbers5. Density per Sq. Kms. 28
  29. 29. THOMPSON RURAL MARKET INDEX6.Percentage distribution of population by population strata7.Number of Villages8.Percentage distribution of villages by population strata9. Literates – Rural (in numbers)10. Percentage of literacy11. Literacy males (in Numbers)12. Literacy females (in Numbers) 29
  30. 30. THOMPSON RURAL MARKET INDEXII Occupation Pattern13. Cultivators (Total Numbers)14. Agri-labourers15. Non- Agri-labourersIII Agriculture Related data16. Gross crop area in hectares17. Gross Irrigated area in hectares18. Area under non-food crops in hectares19. Average size of operational holdings in hectares 30
  31. 31. THOMPSON RURAL MARKET INDEXIV. Agricultural Inputs data20. Pump sets and Tube well (Numbers)21. Fertilizers consumption in metric tonnes22. Number of TractorsV. Rural Electrification Data23. Percent of village electrifiedVI. Commercial Banks Data24. Rural Branches number25.Deposits in Rupees26. Advances in Rupees 31
  32. 32. THOMPSON RURAL MARKET INDEX After collecting the data, statistical correlation analysis was conducted with 10 selected variables related to agriculture. Following are those variables.1. Agricultural labourers2. Gross cropped area3. Gross irregated area4. Area under non-food crops5. Pump sets6. Fertilizer consumption7. Tractors8. Rural credit9. Rural deposit10.Villages Electrified 32
  33. 33. THOMPSON RURAL MARKET INDEX Based on the statistical analysis the districts have been classified as A B C D and E class markets. Classification of MarketsClass of Markets Index Range No.of Districts Percentage of Mkt A 60 to 100 22 17.80 B 40 to 59.9 39 20.50 C 30 to 39.9 54 20.40 D 20 to 29.9 86 23.00 E Below 20 154 18.30 TOTAL 355 100 33
  34. 34. THOMPSON RURAL MARKET INDEX40% of the districts have high potential (A&B)20% of the districts have medium potential (C) 40% of the districts need more time to develop(D&E)This Index can be used for evolving strategies formarketing agricultural inputs and consumable anddurable items. 34
  35. 35. THANK YOU 35