The document discusses rural marketing in India. It outlines the evolution and opportunities of rural marketing, noting that 60% of India's population lives in rural areas. It discusses myths and challenges around rural marketing, including infrastructure, distribution, and promotion. Strategies discussed to overcome challenges include last-mile distribution using auto rickshaws or boats, introducing small pack sizes for affordability, and using opinion leaders and folk media for promotion. The case study of ITC e-Choupal is presented as an example of effective rural marketing.

2. Presented by : Satish N Nande
ID No : ABM-08134
Master of Agribusiness Management
Department of Economic

3.  Rural marketing
 Evolution of rural marketing
 What makes rural marketing attractive
 Opportunities of Indian rural marketing
 Myths about Rural Marketing
 Challenges and Strategies for Rural
Marketing
 Case Study
 ITC e- Choupal
 Conclusion

4.  On account of green revolution, the rural area
are consuming a large quantity of industrial
and urban manufactured products. Thus a
special marketing strategy emerged known as
Rural Marketing.
 Rural marketing involve delivering
manufactured or processed inputs or services
to rural producers or consumers.

5.  Untapped rural
potential
 - 6,27,000 villages
across the country
 - account for 70% of
population
 - 60% of national
demand for various
product categories

6.  41 million kisan Credit Card have been issued
 Of the 20 million Rediffmail sign up, 60% are
from small towns. 50% of transaction from
these town .
 42 million rural household are avaling banking
services in comparison to 27 million HHs in
urban HHs.
 Investment in formal saving instruments is 6.6
million HHs and 6.7 million HHs in urban.

7. Opportunities....

8. 1) 60 per cent of the Indian population lives in
villages
2) In the period between 2003-04 and 2008-09, the
Indian Government increased Agriculture Budget
allocation by a significant 300 per cent.
3) The Rashtriya Krishi Vikas Yojana was launched in
2007-08 with an outlay of Rs.25 thousand crore
4) increase the flow of credit to agriculture gone up
from Rs.87 thousand crore in 2003-04 to about
Rs.2.5 lakh crore in 2007-08

9.  - In 50 years , 40% villages have been connected
by road, in next 10 year another 30% would be
connected
 -More than 90%villages are electrified ,through
only rural homes have electric connection
 -Rural telephone density has gone up by 300%
in the last 10 years

10.  -No. of “pucca” house doubled from 22% to
41%
 -No. of “Kuccha” house halved from 41% to
27%
 -Percentage of BPL families declined from
46% to 27%
 -Rural literacy level improved from 36% to 59%
in past two decades

11.  Low penetration rates in rural areas , so there
are many marketing opportunities
Urban Rural
Durable
CTV 30.4
Refrigerater 33.5
FMCGs Urban Rural
Shampoo 66.3 35.4
Toothpaste 82.2 55.6

12. 1) Rural market is a homogeneous
2) Disposable income is low
3) Individuals decide about purchases

13.  REALITY
 Heterogeneous population
 Various tiers depending on the income
 State wise variation in rural demographics
 Literacy % in ( Kerala 90%, Bihar 44%)
 Population below poverty line (Orissa
48%, Punjab 6%)

14.  REALITY
 Number of middle class ( annuals income Rs 45000-
2,15,000)
 Rural 27.4 million
 Urban 29.5 million
 Per Capita annual income
 Rural Rs 9481
 Urban Rs 19,407
 Total Rs 12,128


15.  Reality:
 Decision making process is collective
 Purchase process - can all be different

16. Challenges….

17. · Understanding the Rural Consumer
· Poor Infrastructure
· Physical Distribution
· Channel Management
· Promotion and Marketing Communication

18. 1) Availability (Place)
2) Affordability (Price)
3) Acceptability (Product)
4) Awareness (Awareness)

19.  Challenges
 Regularly reach product
to the far-flung villages.
 Indias 627,000 villages are
spread over 3.2 millions sq
Km ; 700 million indians
may live rural areas
 Strategies
 Strive to reach at least
13,113 villages with a
population market
penetration
 Can reach the market bye
the following ways:

22.  Hindustan lever, to serve remote village ,use
auto rickshaws ,bullock-carts and even boats in
the backwaters of Kerala.
 Coca-Cola, has evolved a hub and spoken
distribution Mosel to reach the village .to
ensure full loads ,the company depot supplies
,twice a week, large distributors which who act
as hub . These distributors appoint and supply
,once a week, smaller distributors in adjoining
areas.

23. AFFORDABILITY
 Challenges :
 To provide at cheaper price
 Strategies :
 Introduce small unit packs.

24.  Challenge: To gain acceptability for the product or
service
 Strategies:
 Offer product or services that suit the rural market
 Easy to understand
 Coca-Cola company because of the lack of
electricity and refrigerator in the rural area ,it
provide low –cost ice boxes ,a tin box for new
outlets and thermocol box for seasonal outlets.

25.  Challenges : less exposure to the world , low
literacy rate
 Strategies :
 Opinion leaders play a key role in popularizing
product and influence in rural market so
choose the appropriate opinion.
 Can use the following promotional methods:

26.  One on One contact
programs are
extremely efficient
manner to reach the
rural consumer.
 Provide an
opportunity to
 Demonstrate
 Induce Trial
 Educate

27.  An opportunity to
present brand stories
using better display
tools
 Large screens
 Animations
 Melas can be used for
 Retail sale points
 Sampling exercise
 Demonstration

29. 1) Marketing Strategy
2) Distribution Strategy
3) Promotional Strategy

30. 1) Marketers need to understand the psyche of
the rural consumers .
2) intensive personal selling efforts
3) Firms should refrain from designing goods for
the urban markets and subsequently pushing
them in the rural areas
4) by utilizing the various rural folk media to
reach them in their own language

31. 1) using company delivery van which can serve
two purposes
2) Annual "melas
3) fixing specific days in a week as Market Days
(often called "Haats')
4) "Mandis" or Agri-markets

32. the audio visuals must be planned to convey a
right message to the rural folk. The
rich, traditional media forms like folk
dances, puppet shows, etc., with which the
rural consumers are familiar and
comfortable, can be used for high impact
product campaigns.