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Rural Marketing

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Making Inroads into the Hinterland

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Rural Marketing

  1. 1. Making Inroads Into Hinterlands<br />Rural Marketing<br />SHOBITGUPTA<br />
  2. 2. A CLASSIC QUESTION<br />“Improving the life of billions of people at the bottom of economic pyramid is a noble endeavor. It can also be a lucrative one”<br />C.K. Prahlad<br />
  3. 3. Some facts of Rural Sector<br /><ul><li>Rural supermarkets (haats) in India 42,000 exceeds the total number of retail chain stores in the US (35,000).
  4. 4. LIC sold 55 percent of its policies in rural India.
  5. 5. 50% BSNL connections are rural.
  6. 6. 60% Rediffmail users are from small towns.
  7. 7. 24 million KCC, greater than urban India(17.4 million).</li></li></ul><li>What is Rural ? <br />Government agencies like IRDA & NCEAR defines Rural as village with a population less than or equal to 5000 with 75% male population engaged in agricultural activities.<br />
  8. 8. Rural Markets are future Battlegrounds<br />
  9. 9. Objective of Project<br /><ul><li>To study the emergence of rural markets in the context of India.
  10. 10. To study the present scenario of rural marketing in India.
  11. 11. To study the role of advertisement in rural India.
  12. 12. To study the constraints in marketing communication in rural India.
  13. 13. To study the challenges faced by rural marketers in India.
  14. 14. To study the future prospects of rural markets.</li></li></ul><li>METHODOLOGY<br />Descriptive Research<br />Secondary Data<br />
  15. 15. Attractiveness of Rural Market<br />
  16. 16. <ul><li>Large population
  17. 17. Rising propensity
  18. 18. Growth in consumption
  19. 19. Life cycle changes
  20. 20. Life cycle advantages
  21. 21. Market growth rate higher than urban
  22. 22. Rural marketing is not expensive
  23. 23. Remoteness is no longer a problem</li></li></ul><li>Moving from predictive<br />to adaptive<br />
  24. 24. Pricing Framework<br />
  25. 25. Cost Competition Demand <br />
  26. 26. DesigningPromotion<br />
  27. 27. <ul><li>Determining communication objectives
  28. 28. Creating message content or appeals
  29. 29. Evolving message structure
  30. 30. Developing message format
  31. 31. Choosing message source
  32. 32. Selecting the channel
  33. 33. Deciding on promotion mix
  34. 34. Establishing promotion budget</li></li></ul><li>Communication Objective<br /><ul><li>To achieve awareness among a certain percentage of target audience.
  35. 35. To improve product knowledge among target customers.
  36. 36. To strengthen liking or preference to buy the product.
  37. 37. To persuade the consumers to buy the product.</li></li></ul><li>Message Content<br />
  38. 38. Message Format<br />Pictures, dramatizing voices, attractive expressions and color have more <br />influence on rural <br />
  39. 39. Message Source<br />
  40. 40. Selecting Channel <br /><ul><li>Distribute products through retail outlets
  41. 41. Create opinion leaders
  42. 42. Develop advertising that has high conversational value
  43. 43. Train middlemen in interacting with consumers
  44. 44. Establish Tele links for online transactions</li></li></ul><li> DecidingonPromotionMix<br /><ul><li>Contest and Demonstrations
  45. 45. Sampling
  46. 46. Installment Schemes </li></li></ul><li>OldSetup<br /><ul><li>Wholesaler
  47. 47. Retailer
  48. 48. Vans
  49. 49. Weekly haats & Bazaars
  50. 50. Melas & Fairs</li></li></ul><li>New channels <br /><ul><li>Unofficial Channels
  51. 51. Cooperative Societies
  52. 52. Public Distribution System
  53. 53. Petrol Pumps
  54. 54. Agricultural Input Dealers
  55. 55. NGOs
  56. 56. Barefoot Salesman
  57. 57. Syndicated Distribution</li></li></ul><li>Case Studies...<br />
  58. 58. Coca Cola <br /><ul><li>Invested US$ 1 Billion
  59. 59. 27 owned & 17 franchise operations
  60. 60. Using Celebrities
  61. 61. 30% revenue from rural sector
  62. 62. “Thanda…” campaign
  63. 63. Different promotion in south </li></li></ul><li>TATA SALT<br /><ul><li>Story begins in 1983
  64. 64. “Namak Ho Tata Ka, Tata Namak”
  65. 65. 15% spends on promotion
  66. 66. 2002, “DeshkaNamak”
  67. 67. Television
  68. 68. Wall Painting
  69. 69. Calender</li></li></ul><li>Colgate<br /><ul><li>Incorporated in 1937 as CPIL
  70. 70. Enjoys 50% market share
  71. 71. “Colgate fresh energy gel”
  72. 72. Use of mass media
  73. 73. Opinion Leader
  74. 74. Strong distribution network </li></li></ul><li>Casper<br /><ul><li>Advertising in local newspaper.
  75. 75. Stressing in trade related activities.
  76. 76. Making mosquito mats machine available at electronic shops, painting shops for free gifts.
  77. 77. carried out product distribution through vans and educate the rural
  78. 78. They also advertise in between various local events in the rural areas. </li></li></ul><li>CONCLUSION<br />

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