1.Issues and challenges of Rural
Meaning of Rural Marketing-
“Rural marketing can be seen as a function which manages all
those activities involved in assessing, stimulating and
converting the purchasing power into an effective demand
for specific products and services, and moving them to the
people in rural area to create satisfaction and a standard of
living for them and thereby achieves the goals of the
Features of Rural Market :-
Agriculture is main source of income. •
The income is seasonal in nature.
Though large, the rural market is geographically scattered.
It shows linguistic, religious and cultural diversities and
The market is undeveloped, as the people who constitute it
still lack adequate purchasing power.
Challenges of Rural Marketing
Seasonal Nature of Demand.
Buying Decision slow.
Four Main Hurdles (Four A’s)
Availability –Make the product available at right
time and place.Reach and Distribution of Utmost
Affordability – Value for money.economical and
Acceptability- Convert potential to actual
Awareness – Customer specific campaign,More
Medium of communication ,connect to the rural
Rural market is a gold mine which
the companies needs to tap.
Companies need recognise and
respond to the challenges.
Companies need to invest time and
money to reap long term dividends.
2.Screening of the employees –The need of the
It refers to researching the histories and stated
capabilities of employees (Potential /current).
Organisations need to mitigate the risks.
Many recent instances show frauds committed by the
employees by providing wrong details about their
qualifications ,fake documents and certificates etc.
Hence Companies need to do the screening before
appointing new employees.
Why screening is needed:-
• To follow norms.
• For own security and safety.
• Secure data.
• Avoid corporate spying.
• Minimize the possibility of violence.
• Check criminal records.
• Reduce turnover.
• History absenteeism,poorperformance
Avoid long term costs.
• Safety of the employees.
Trust within the
• Check the qualification.
• Proper references ,experience check.
Hiring the best
All the employees–prospective/current,
/high level need to be screened.
It pays to know and helps the company
to save itself form bad hire.
3.Direct marketing-reasons for the growth.
Social and technical
Proliferation of mass
Consumer wants to be
Drawback of traditional
Drop in computer
can be measured.
Shop from home.
4.Moment of truth-Customer Experience
It is the experience that the customer gets every
time when there is an interaction between him & the
organisation during the customer lifecycle
An Organisation should Think Win-Win.
It should think like a customer, be a consultant,
trusted partner, give information.
From customer’s point of view:-
Perception – What customer thinks / feels.
Interaction - Viewing marketing message.
Actual use of product.
Post purchase service.
Customer Survey Feedback
Around 22% customers where happy/satisfied with CRM of
companies like banking, air travel, electronics etc. For the
customers quality of interaction is equally important as
quality of product.
90% of the customers are not happy with offshoring
services & IVR.
Employee training & internet based selling has positive
Post sales service is the most memorable experience
Customer with good experience recommended company
to their friends & colleagues & increased their purchases.
Well trained & helpful employees are top attribute of
companies. They provide excellent customer experience.
5.The big 5 personality traits
Traits are consistent pattern of thoughts,
feelings or action that distinguish people
from one another. It is an internal
In psychology big 5 personality traits are
know as Five Factor Model (FFM) also
know as OCEAN.
Beneath each factor, a cluster of specific
traits is found.
AllPort & Odbert listed 4500 words describing
the personality, they considered observable &
relatively permanent trait.
Barrick & Mount co-related personality traits
of FFM & job performance in may jobs.
Big 5 Traits
Openness to experience
1.OMNI-CHANNEL IS THE NEW BUZZWORD FOR
A perfect omni-channel strategy would mean an optimal
integration of all retail channels based on efficient analytics.
Today’s customer is not only well informed but also always
connected to some device or the other. Browsing and shopping are
done at their own convenience and on the channel of their choice.
It’s a reality that marketers have to live with. The wise ones have
developed or are in the process of developing hybrid models which
combine the best benefits of physical retail, online retail and direct
The surge in online retail made the retailers
like Future Group, Shoppers’ Stop etc take a
step back to rethink their strategies and
Omni-channel emerged as the best solution
for this brigade.
The increasing threat from online players,
limitations to the space available for
physical stores are all pushing brands to
adopt technology solutions for an omni-
channel retail strategy.
2.E-RETAIL: SMALLER CITIES LAP UP OFFBEAT GOODS
FROM SNAPDEAL, EBAY, FLIPKART
Online retail has revolutionized the way Indians shop.
Penetration of FMCG products and consumer durables are very high
across India. But in smaller towns and cities, people don't have
access to many categories that are easily available in metros.
So the only option for people there is to shop online because, for
many categories, the reach of online players is greater than that of
their brick and mortar counterparts.
We have seen faster e-commerce growth in non-metros due to the
advent of low priced smartphones and internet access
Consumers in non-metros are not only buying mainstream products
but also unique items such as DJ turn tables, body-piercing
jewellery, dashcams, temporary hair colour styling gel.
Apart from the regular goods like FMCG and Electronics,E-Retailers
are also seeing growth in the demand for Off-Beat products like
adult diapers , blood glucose meters and solar lanterns.
Trends of major Online Retailers
Bar accessories , while
Nagaland sees a high demand
for camping gear. Bike
accessories are a big hit in
Daman & Diu, while Chandigarh
sees big purchases of
networking and wireless
devices, and Goa fuels the
demand for hats.
Coimbatore and Tirupur have become
apparel hubs . , Pudducherry and
Panipat have emerged as major hubs
for categories such as home,
consumer electronics and apparels.
Demand for leather and sports goods
is growing among smaller city
customers with Ludhiana and
3.MALLS ARE LOSING THEIR MOST LUCRATIVE
In the last four years, more than two dozen malls have shut down. Another 60
malls are on the brink of death, The New York Times reported.
Women are visiting the mall about eight times per year, down from 18 times
annually in 2014, according to a new Piper Jaffray survey.
Meanwhile, teen mall traffic has dropped 30% to 29 visits per year since 2007.
women are choosing to shop at discount and specialty stores over malls when it
comes to purchases for their homes.
For teens, restaurants have replaced shopping malls as a favorite hang-out
4.BEYOND BOUNDARIES: HOW RURAL MARKETING HAS
TRANSFORMED FINANCE COMPANIES
Challenges for banks:-
In the last few months, over 115 million new zero balance
bank accounts have been opened to bring in a larger chunk
of the population under the ambit of the financial services.
Banks need to create physical (brick & mortar) infrastructure,
invest in managing cash and recruit/retain competent
employees willing to work in these remote locations, engage
with reliable business-correspondents and ensure high levels
Volatile income patterns make financial discipline a difficult
task for rural populations.
Simplicity of product design is another key requirement to
attract rural population .
Methods of communication by banks .
The communication approach is therefore completely different. IndusInd
relies on audio-visual campaigns in the vernacular language and group
meetings as opposed to distributng pamphlets. Entertainment (like
puppet show/ folk dance), free medical camps or promoting a beneficial
government programme are one of the best ways to connect with them.
During haats and at religious centres, the bank tries to make the
audience aware of government sponsored schemes like the Pradhan
Mantri Jan Dhan Yojana and the Kisan Credit Card.
Highlights of Axis Bank's three year old campaign include using local
entertainment dance and drama forms like Jhumar in Punjab or Bhavai
in Gujarat; slipping in banking information on the back of Krishi
Pragatishala, an agri expert programme and finally comic books
published in multiple languages.
5.DO CONTINUING CAMPAIGNS DELIVER
An engaging story unfolding in parts, keeping
viewers coming for more. 'What's next?' remained
the question on people's minds.
More recently came Tata Sky's love story for its daily
recharge option, with each chapter of the story
unveiled in a new TVC.
Continuing campaigns do build engagement because
you want the customer to have the connect.
There is great merit in continuing campaigns and
extending the campaign over a period of time.
The biggest requirement for a serialised campaign is money. It’s only
the advertisers who have a high exposure and production budget
who can afford to do this. This is just another form of storytelling and
at times the idea could be more conducive to a serialised story. But
it’s a risky proposition. It presupposes huge engagement from the
audience and if that engagement is not there, it becomes an exercise
where only the people who have written the story feel good while the
general audience couldn’t care less. Unless the story is dramatically
gripping, this format is bound to have a lower return on investment.”
If people are entertained by the messaging, it does not really matter
what format you use in your messaging. It also largely depends on the
objective of the campaign. A connected campaign can backfire if the
idea is boring.
If the idea is fresh and relevant and the execution is authentic and
engaging, it will work. It may be a standalone film, or a campaign or
movement idea that's ongoing."
The overall view is that digital would most definitely see a lot more of
this kind of advertising. TV may not be flexible enough for this form of
storytelling to become a mainstay.
6.SMART SHOPPING LIST CONCEPT DEBUTS
Smart brands are quickly moving beyond
simple eCommerce, using omni-channel
retail to maximise their sales and customer
They can then either pop in for a closer look
or make the purchase and simply visit the
shop to collect it.
To create an effortless consumer
experience and break down barriers
between digital and physical retail
Booodl is a smartphone app that notifies
consumers when they come in close proximity
to products from their digital wish list. To
begin, users create their list adding ‘wants’
online. Then, when they are out and about, the
app notifies the customer when one of their
‘wants’ is stocked nearby: the user can then
get directions to the shop, message the store
or even order an Uber to the location, all within
7.HOW WOMEN ENTREPRENEURS ARE GAINING BIG FROM
THE ONLINE RETAIL REVOLUTION
As India sees a revolution in its $300 billion retail
industry with the emergence of online marketplaces
such as Amazon, Snapdeal and Flipkart, thousands
of women are gaining financial independence by
These women now constitute about 20% of the 1
million sellers on platforms that form the $12 billion
online retail industry
It gives women the advantage of Minimum
investment, Maximum profit guaranteed, Make
money from home
Women have become micro-entrepreneurs
But on Flipkart, of the 30,000-odd sellers, about 20% are
women. Interestingly, about 15% of these women are
customers-turned-sellers. "These women have identified the
gap and launched their own brands offering regional
handicrafts, antique pieces, and designer wear.
Some of the success stories highlighted:-
Namita Jain, a former homemaker who saved about Rs 4 lakh
to invest in starting Neerav Stores on Delhi-based online
Arti Goel, 47, started the experiment of selling online three
years ago as an addendum to her husband's home furnishing
supply business to hospitals and hotels. Within three years,
the online business has taken over the offline.
8.CUSTOMER LOYALTY: THAT’S WHERE SAMSUNG BEATS APPLE
A new survey suggests that Samsung enjoys
markedly more customer loyalty than Apple.
Customers’ perceived value, brand trust,
customers’ satisfaction, repeat purchase
behavior, and commitment are found to be the
key influencing factors of brand loyalty.
Customer loyalty goes a long way in defining
how a company is being received by its
customers over a period of time and is
indicative of the brand value.
The SurveyMonkey defines industry benchmarks
to help companies judge where brands stand.
Samsung scored a 35 for customer loyalty, while
Apple managed a 28. Both scores were above the
industry benchmark of 19.
Where Apple did better, was in customer service
satisfaction. There, it scored a 41 percent positive
rating, while Samsung managed only 25. Both
companies may still have much to do. The industry
benchmark for customer service satisfaction is 75
9.MAHINDRA RETAIL EYES E-COMM FOR
In a bid to turn around its business, Mahindra Retail is adopting a three-
pronged strategy — shut down unviable stores under the Beanstalk chain;
strengthen ecommerce operations through the recently acquired Babyoye;
and expand the Mom & Me retail chain through the franchise route.
The company is also in the process of shutting down unviable and under-
As part of this, Beanstalk stores will be shut or merged with Mom and Me
The company has merged its own online venture Momandme shop.in with
Babyoye to offer a single website for its customers
The retailer is also integrating its e-
commerce operations with its physical
stores to expedite sales of products
especially those stock-keeping units and
variants, which may not be readily
available at stores.
The company will also be selling its private
label products through other online
marketplaces such as Flipkart and Amazon.
10.MAKE IN INDIA: FOREIGN FIRMS PRODUCING
IN INDIA MAY GET TO SELL ONLINE
The government is keen to raise the share of manufacturing in the country's
GDP, for which the prime minister has launched a dedicated programme
'Make in India' to attract investments to the sector.
Foreign investors setting up manufacturing facilities in India will be able to
access the country's rapidly growing online market as part of the Narendra
Modi-led government's plan to attract overseas capital in the languishing
The move will give a big boost to foreign funded home-grown entities such as
Fabindia that are engaged in manufacturing as well as retailing and are keen
to expand to online platforms while making the sector lucrative for foreign
To ensure consistency in policy and prevent tax issues later, the government
will pick up what constitutes manufacturing from the income tax law
Allowing manufacturers to sell directly to consumers
through ecommerce is seen as a big incentive to
attract foreign investment in the sector.
The move could also open the doors for entities that
are engaged in third-party manufacturing and
outsource part of production to local producers to
widen their customer base through online selling.
Mr. Govind is a graduate in textile from VJTI and has done
MBA from Symbiosis,Pune.
He has worked for companies like Mafatlal,Arrow ,Bombay
Dyeing and has been associated with many turnarounds.
He joined Shopper’s stop owned by Raheja Group as VP –
Buying and Merchandising.
He opines that there is a huge change in retail scenario
due to advent of digital technology.
Online selling is impacting brick and mortar shops.
the strategy adopted by Shopper’s stop is take the omni-
Their future plan includes investing in online assets and
They expect to earn 10%of their total revenue from online
Globally department stores format has suffered
a setback as more people are preferring online
and speciality stores.
But he states that departmental format provide
the convenience to the whole family to shop
under one roof. So this format is bound to grow.
They have to concentrate on customer
experience and product assortment.
Talking about the work culture at Shopper’s
Stop ,he informs that they are customer driven
organisation. Each employee is a customer care
Employee retention is a challenge. Attrition
rate is at 48% annually.
Key drivers for growth would be online
selling,beauty segment and exclusive
Future challenges are from momand pop
stores, FDI policy restrictions in multi-brand
retail, infrastructure , taxation policies and
disrupotions from online sector.
MR. Ramesh gives a brief about his career graph
of over 20 years.
He has industry experience of over 20 years and
is industry speaker at various forums.
He started his career with Garware,Grasim
,Draft FCB-Ulka advertising before finally
moving to Godrej.
He is a Physics graduate and has an MBA .
His love for communication got hi into
marketing and sales.
He says that every job we take up teaches us something.it is great
experience full of learning.
He got an opportunity to work with stalwarts of the industry.
His stint at Ulka advertising gave him a great exposure.
He feels that person wanting to make career in marketing should
start by selling at grass root level.
He feels that every opportunity teaches you something.
One should join the company that one wants to work in.
He states that people don’t quit the companies but they quit the
But its about how you deal with your seniors and how you learn
from them as they have more experience.
One should always balance work and personal life.find pockets to
spend time with kids.
He feels that future of today’s business is E-
commerce and has plans envisaged for his own
company on similar lines.
Mr. Damodar is the most admired grocery retailer. He is the
author of the book Super Marketwala. He is an IIM-B alumni.
He has worked in top companies like HUL, Future group and is a
co-founder of D-mart.
He learnt the ropes of business from Mr.Kishore Biyani and
He learnt not to believe in precedence and rely on customer
feedback for your business.
Reliance retail was set up in 2006 . Its core growth strategy is
backward integration and developing a strong value chain starting
It believes in the philosophy of farmer’s welfare, fair practise and
to give platform to small and new brands.
He states that customers are emerging in assertive way ,they will
have their way.
He states that one should develop the habit of winning customers
,observe customers and work with customer in the centre.
This will reduce learning cost as well as cost of error.
Rising aspirations of the customers, physical mobility as well as
the digital mobility have empowered the customers.
So companies have to be nimble footed and think ahead of the
India is the best place to be right now due to consumption
growth,economic growthand confidence of the customer.