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Rural Marketing
- 1. â Rural Marketingâ Submitted By: Vimal Dhar
- 2. Contents ďś Introduction ďś EvolutionOf Rural Marketing ďś Rural Marketing Mix ďś Rural Marketing Strategies ďś Problem Of Rural Marketing ďś Examples
- 3. Introduction ďś India isan agro-based economy and the growth of most of the other sectors of economy is driven by rural demand. Urban market is reaching towards the saturation point, thus bringing in and urgent need to focus on rural development. Moreover, more than 70% of India's population lives in villages. ďś In comparison to just 5,161 towns in India there are 6,40,867 villages in India (According to latest census). This in itself is an indicator where the real India resides. Companies are realizing slowly but surely that the key to gain true market leadership lies in tapping the rural potential. ďś In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities.
- 4. Rural Marketing ⢠Ruralmarketing is defined as the process of developing, pricing, promoting, distributing rural-specific goods and services leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organizational objectives.
- 5. Estimated Annual SizeOF Rural Marketing ďśFMCG Rs. 65,000 Crore ďśDurables Rs. 5,000 Crore ďśAgri-Inputs Rs. 45,000 Crore ďś2 / 4 Wheelers Rs. 8,000 Crore
- 6. Rural Employment Pattern SECTOR% SHARE IN EMPLOYMENT (1987) % SHARE IN EMPLOYMENT (2015) Agriculture 75 65 Transport and communication 5 10 Trade and hotels 4 7 Construction and other 9 7 Manufacturing 7 11
- 7. PHASE ORIGIN FUNCTIONMAJOR PRODUCT SOURCE MARKET DESTINATION MARKET Phase I Before mid1960(From independence to Green revolution) Agricultural marketing Agricultural produce Rural Urban Phase II Mid sixties (Green revolution to Pre- liberalization period) Marketing of agricultural inputs Agricultural inputs Urban Rural Phase III Mid nineties(Post- liberalization period in 20th century) Rural marketing Consumables and durables for consumption and production Urban and rural Rural Phase IV 21st century Development al marketing All products and services Urban and rural Urban and rural EVOLUTION
- 8. Rural Marketing Mix MarketingMix ârefersâ to the set of actions, tactics, tools or variables that a company uses to promote and sells its brand or product in a markets.
- 9. Marketing strategies ⢠Tosucceed in rural market, companies need to adapt the 4Pâs of marketing and the 4Aâs in their strategy.
- 10. 4 Ps ofRural Marketing Mix Every Product and promotion, which is a hit in cities, might not work in rural areas Product Price Place Promotion
- 11. The features andappearance of goods and services. Product Eg: nokiaâs1100- customized model for rural. Dust resistant, Small torch, economical.
- 12. How much customerspay for a product. Price
- 13. The point whereproducts are made available to customers. Place
- 14. How customers areinformed about products. Promotion
- 15. 4 Aâs ofrural marketing mix ďś Affordability : Cheaper product, designing products which match the needs of rural consumers, at a price that they feel. ďś Availability: lesser number of brands available at rural retail outlet. Ensuring the reach of the products at the retailerâs shelf is one of the most critical function
- 16. ďś Awareness :they use unconventional media along with commercial media like TV, Radio. Elements like color, logo, slogan. ďś Acceptability : They must feel that the product serves its purpose, then they are ready to even spend extra for the product.
- 17. Problem Of RuralMarketing ďś Under developed people ďś Under developed market ďś Poor communication facilities ďś Many languages ďś Vastness & uneven spread ďś Low per capita income ďś Poor infrastructure facilities ďś Seasonal demand
- 18. Under Developed People ďśRural society is found by tradition, old customs, practices etc. The impact of modern science & technology has made very less impact . Old beliefs are still continuing. Under Developed Market ďś Rural markets are not developing because of inadequate banking & credit facilities. At present every 48th village in India only has bank
- 19. Poor communication facilities ďśMost villages even today largely depends on telegrams and phones for their communication needs. Print media and visual media(Television, Cinema) etc reaches only about 20% of rural Indians. Many Languages ďś India is a country of many languages. Language becomes a barrier in effective communication in the marketing efforts. The languages vary from state to state, place to place, district to district. There are now 18 schedule national languages.
- 20. Vastness & Unevenspread ďś India is a vast. Rural market consists of approximately 75 cores rural consumers spread across approximately 6,38,365 villages. Despite the urban migration, the rural areas continue to be the place of living for a vast majority Indians. Low per capita income ďś The marketers faces challenges in rural marketing to decide about quantities, frequency of distributions, package size etc
- 21. Poor Infrastructure Facilities ďśInfrastructural facilities like roads, ware houses, powers etc are inadequate in rural areas. Seasonal Demand ďś Rural people have two seasonal crops namely Khariff and Rabi. Villages have money mostly in this seasons. As village income are seasonal demand are also.
- 22. BIJLI SAMPOORNASAMPOORNA MAHASANGRAM SAPNO KA GHAR Launched NewRefrigerator for Rural and Semi urban market priced at 10,000 Range of TVâs with Devnagri script on display Priced at 12,000Range of TVâs with Devnagri script on display Priced at 12,000 Focusing on rural town with population less than 5000 with special economy model of color TV priced at 8000 Road Show in semi urban & Rural with mid priced consumer durables to provide Touch & Feel experience
- 23. SHAKTI Operation JAGRUTI Operation JAGRUTI Parachute Rural initiative targetedvillages population less than 2000, providing income generating opportunity through shakti vani ASHA OPERATION Jagruti, a village consumer contact campaign was launched with the objective of massive rural penetration targeted at the non-users and infrequent users of dentifrices. OPERATION Jagruti, a village consumer contact campaign was launched with the objective of massive rural penetration targeted at the non-users and infrequent users of dentifrices. Anti Loose Campaign and Temper proof Packaging in Smaller Variants Low cost snacks & Beverages . Especially for girls aged between 12- 16.
- 24. E- Choupal Chick Chota Coke Arural shopping mall where farmers can sell their commodities and everything including cosmetics, garments, electronics, appliances and even tractors. It serves as an agri-sourcing centers, shopping centers, and facilitation centersa Launched Coca Cola in Rs 5 with tag line âThand Matlab Coca Colaâ CavinKare launched an aggressivecampaign to educate people on how to use shampoo through live âtouch and feelâ in Rural Folks
- 25. Har Gaon Har angan GharGhar ke pehchan Ghar Ghar ke pehchan Mera sapna meri maruti After securing its foothold in urban and semi-urban markets, it has launched a pan-India campaign â Mera Sapna Meri Maruti â to tap the vast potential of the rural market. The promotional scheme Ghar Ghar ki Pehchaan is aimed at taking highly accomplished product like Santro into the depth of rural India. The promotional scheme Ghar Ghar ki Pehchaan is aimed at taking highly accomplished product like Santro into the depth of rural India. Har Gaon Har Angan seeks to build an ongoing relationship with millions of households in rural India through a network of 500 rural sales executives
- 26. Samridhi TATA ACE MAGIC TATA ACE MAGIC GoldPlus Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes having 600 Mahindra Samriddhi centres and five million farmers under its ambit by 2020. Titan Industriesâ GoldPlus is designed for the jewellery preferences of the semi-urban and rural Indian customer. TATAâs Rural Transport Vehicle for Rural and Semi Urban LandscapeTATAâs Rural Transport Vehicle for Rural and Semi Urban Landscape
- 27. Utsav Met Suvidha Kamdhenu campaign A Rangeof Colour solution intended for the Rural Mass & Market Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security to Rural Masses The Kamdhenu campaign, a unique high-impact marketing and sales campaign through cattle loans to farmers
- 28. Conclusion The rural marketsand the consumers are scattered over a wide geographical area. Considering low income of consumers, low density of population, poor conditions of roads, it becomes a difficult and uneconomical to individually service all the villages. The marketers have to follow a selective approach based on market potential in developing a network of distributors and retailers in rural markets.