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Source: http://www.nationmaster.com/graph/peo_per_liv_in_rur_are-people-percentage-living-rural-areas
24/07/2014 1
Total Indian Population Living in Rural Areas
IMC Strategies: Issues and Challenges
in Reaching Out And
Retaining Customers in Rural India
24/07/2014 2
24/07/2014 3
Agenda
• What is IMC?
• Why Rural India???
• Challenges of IMC in Rural
India!
“IMC is the integrated management of all
communications to build positive and lasting
relationships with customers and other stakeholders. It
is a customer-centric, data-driven approach to marketing
and branding that stresses communicating to consumers
through multiple forms of media and technology”.
24/07/2014
Dr. Rob Westervelt,
Professor- Northwestern University
4
24/07/2014 5
Agenda
• Why Rural India???
24/07/2014 6
"The future lies with those companies
who see the poor as their customers."
C. K. Prahalad
Statistics
24/07/2014 Rendition-2011 7
• LIC sold 55% of its policies in rural India, Within
2001-02
• 50% Of two million BSNL mobile connections in
small towns/villages
• 42 million rural households (HHs) availing banking
services in comparison to 27 million urban HHs
• Investment in formal savings instruments is 6.6
million HHs in rural and 6.7 million HHs in urban
India
Contd…
24/07/2014 Rendition-2011 8
• More than 90% villages are electrified, though
only 44% rural homes have electric connections.
• In 55 years post independence only, 40%
villages had been connected by road, in next 10
years another 30% were connected.
• Percentage of BPL families declined from 46%
to 27%
• Rural literacy level improved from 36% to 59%
• Bank Branches 32,000
Contd…..
24/07/2014 9
Agenda
• Challenges of IMC in Rural
India!
24/07/2014 Rendition-2011 10
IMC’s
Challenges
Developing
Inorganic Scale
Pricing/Disposable
Income
Scaling Across
Geographies
Distribution And
Logistics
24/07/2014 Rendition-2011 11
Challenges
Payment
collection
Social and
cultural
challenges
Low
literacy
rate
Seasonal
Sales
24/07/2014 Rendition-2011 12
Spurious/Duplicate
Products
Low Penetration Of
Media Channels
High Initial
Investment
24/07/2014 Rendition-2011 13
• Small Retailers To Carry Out Stock Without
Adequate Credit Facility
• Wholesale And Network Dealer Problems
• Market Research Problems
• Price sensitivity, Low Brand-Awareness
• Highly Dispersed And Scantily Populated
Markets
• Banking And Credit Problems....
Epilogue/Conclusion
24/07/2014 14
Rural India- A “Blue-ocean” Of Opportunities
IMC A Potent Tool But….
Demons Of Diversity, Low Literacy Rate, High Initial
Investment, Price Sensitivity, Other Socio-cultural
Factors, Week Brand-awareness Pose Major Threats
Answer To These Problems: Evolution Of IMC In India
Annexure:
Books:
1) Gopal Swamy, T. P. 1997 Rural Marketing, Environment-Problems and
Strategies, Allahabad, Wheeler Publishing.
2) Badi R.V & Badi N.V. 2004 Rural Marketing, Mumbai, Himalaya
Publishing House
Magazines, Journals and News Articles:
1) Prahalad C.K. and Allen Hammond, September 2002 Serving the World's
poor profitably, Harvard Business Review
2) Dobhal Shailesh, June 21, 2006 Marketing the BOP in India, The Economic
Times
3) At the Bottom of the Pyramid: Responsible Design for Responsible
Business, By Nirmal Sethia, Design Management Review, June 1, 2005
24/07/2014 15
24/07/2014 16
4) C.K. Prahalad & Stuart L. Hart January, 2002 (Issue 26, First Quarter 2002) The
Fortune at the Bottom of the Pyramid, Strategy+Business
5) Gupta Dipankar, February 2005, pp. 751-758 Whither the Indian Village:
Culture and Agriculture in 'Rural' India', Economic and Political Weekly
6) Bali Monish, August 23, 2000 The rural market likes it strong, The Economic
Times, [Interview by An Awasthi]
7) Jha Neeraj, June 19, 2000 Gung-ho on rural marketing, The Financial Express
8) Chothani Pritesh Y. & Sud Ritesh, May 26, 2010 Rural India: Challenges and
Opportunities, coolavenues.com
9) Katiyar Ruchi, June 15, 2010 Rural Marketing: Challenges in Distribution and
Channel Management, coolavenues.com
24/07/2014 17
Websites:
1) www.indiainfoline.com/Markets/News/Rural-India.../482490523
2) http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4472
3) http://www.indianmba.com/faculty_column/fc1079/fc1079.html
4) http://censusindia.gov.in/2011-prov-results/indiaatglance.html
5) http://www.multimediamarketing.com/mkc/marketingcommunications/
6) http://www.pluggd.in/indian-rural-market-challenges-297/
7) http://www.samparkrural.co.in/infra
8) http://www.wdi.umich.edu/ResearchInitiatives/BasePyramid/Resources/Regions
SouthAsia
9) http://www.usq.edu.au/course/material/mkt2001/imc_mix.htm
10)http://ubrander.wordpress.com/2006/09/05/what-is-imc/
thank
you
24/07/2014 18
????Doubts????24/07/2014 19

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IMC (Integrated Marketing Communications) Strategies In Rural India: Issues and Challenges in Reaching Out And Retaining Customers

  • 2. IMC Strategies: Issues and Challenges in Reaching Out And Retaining Customers in Rural India 24/07/2014 2
  • 3. 24/07/2014 3 Agenda • What is IMC? • Why Rural India??? • Challenges of IMC in Rural India!
  • 4. “IMC is the integrated management of all communications to build positive and lasting relationships with customers and other stakeholders. It is a customer-centric, data-driven approach to marketing and branding that stresses communicating to consumers through multiple forms of media and technology”. 24/07/2014 Dr. Rob Westervelt, Professor- Northwestern University 4
  • 6. 24/07/2014 6 "The future lies with those companies who see the poor as their customers." C. K. Prahalad
  • 7. Statistics 24/07/2014 Rendition-2011 7 • LIC sold 55% of its policies in rural India, Within 2001-02 • 50% Of two million BSNL mobile connections in small towns/villages • 42 million rural households (HHs) availing banking services in comparison to 27 million urban HHs • Investment in formal savings instruments is 6.6 million HHs in rural and 6.7 million HHs in urban India Contd…
  • 8. 24/07/2014 Rendition-2011 8 • More than 90% villages are electrified, though only 44% rural homes have electric connections. • In 55 years post independence only, 40% villages had been connected by road, in next 10 years another 30% were connected. • Percentage of BPL families declined from 46% to 27% • Rural literacy level improved from 36% to 59% • Bank Branches 32,000 Contd…..
  • 9. 24/07/2014 9 Agenda • Challenges of IMC in Rural India!
  • 10. 24/07/2014 Rendition-2011 10 IMC’s Challenges Developing Inorganic Scale Pricing/Disposable Income Scaling Across Geographies Distribution And Logistics
  • 11. 24/07/2014 Rendition-2011 11 Challenges Payment collection Social and cultural challenges Low literacy rate Seasonal Sales
  • 12. 24/07/2014 Rendition-2011 12 Spurious/Duplicate Products Low Penetration Of Media Channels High Initial Investment
  • 13. 24/07/2014 Rendition-2011 13 • Small Retailers To Carry Out Stock Without Adequate Credit Facility • Wholesale And Network Dealer Problems • Market Research Problems • Price sensitivity, Low Brand-Awareness • Highly Dispersed And Scantily Populated Markets • Banking And Credit Problems....
  • 14. Epilogue/Conclusion 24/07/2014 14 Rural India- A “Blue-ocean” Of Opportunities IMC A Potent Tool But…. Demons Of Diversity, Low Literacy Rate, High Initial Investment, Price Sensitivity, Other Socio-cultural Factors, Week Brand-awareness Pose Major Threats Answer To These Problems: Evolution Of IMC In India
  • 15. Annexure: Books: 1) Gopal Swamy, T. P. 1997 Rural Marketing, Environment-Problems and Strategies, Allahabad, Wheeler Publishing. 2) Badi R.V & Badi N.V. 2004 Rural Marketing, Mumbai, Himalaya Publishing House Magazines, Journals and News Articles: 1) Prahalad C.K. and Allen Hammond, September 2002 Serving the World's poor profitably, Harvard Business Review 2) Dobhal Shailesh, June 21, 2006 Marketing the BOP in India, The Economic Times 3) At the Bottom of the Pyramid: Responsible Design for Responsible Business, By Nirmal Sethia, Design Management Review, June 1, 2005 24/07/2014 15
  • 16. 24/07/2014 16 4) C.K. Prahalad & Stuart L. Hart January, 2002 (Issue 26, First Quarter 2002) The Fortune at the Bottom of the Pyramid, Strategy+Business 5) Gupta Dipankar, February 2005, pp. 751-758 Whither the Indian Village: Culture and Agriculture in 'Rural' India', Economic and Political Weekly 6) Bali Monish, August 23, 2000 The rural market likes it strong, The Economic Times, [Interview by An Awasthi] 7) Jha Neeraj, June 19, 2000 Gung-ho on rural marketing, The Financial Express 8) Chothani Pritesh Y. & Sud Ritesh, May 26, 2010 Rural India: Challenges and Opportunities, coolavenues.com 9) Katiyar Ruchi, June 15, 2010 Rural Marketing: Challenges in Distribution and Channel Management, coolavenues.com
  • 17. 24/07/2014 17 Websites: 1) www.indiainfoline.com/Markets/News/Rural-India.../482490523 2) http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4472 3) http://www.indianmba.com/faculty_column/fc1079/fc1079.html 4) http://censusindia.gov.in/2011-prov-results/indiaatglance.html 5) http://www.multimediamarketing.com/mkc/marketingcommunications/ 6) http://www.pluggd.in/indian-rural-market-challenges-297/ 7) http://www.samparkrural.co.in/infra 8) http://www.wdi.umich.edu/ResearchInitiatives/BasePyramid/Resources/Regions SouthAsia 9) http://www.usq.edu.au/course/material/mkt2001/imc_mix.htm 10)http://ubrander.wordpress.com/2006/09/05/what-is-imc/

Editor's Notes

  1. The urban market is saturated no doubt…..