Rural marketing by manisha
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Rural marketing involves developing, pricing, promoting, and distributing goods and services to rural customers to meet their needs and the company's objectives. Key aspects of rural marketing include: (1) Goods are offered from urban to rural markets and from rural to urban/rural markets. (2) The rural market has large and scattered populations with low standards of living but also offers market growth and less competition. (3) Effective rural marketing considers the dynamic rural environment and factors like demographics, infrastructure, and traditions. (4) The "4 A's" of rural marketing are acceptability, availability, affordability, and awareness. Companies tailor products, pricing, distribution, and promotion strategies for rural customers.
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This document discusses rural marketing strategies for Hindustan Unilever Limited (HUL) in India. It notes that HUL currently reaches 800 million Indian consumers and 1.7 lakh villages through its Project Shakti initiative, with a goal to reach 5 lakh villages by 2020. The document recommends segmenting the rural market and developing tailored products, packaging, pricing and promotions. It suggests using traditional media, opinion leaders, and local language to promote products in rural areas. Distribution could occur via company vans, festivals, and local markets. The goal is to understand rural values and provide good value and quality products to customers.
Rural marketing in india
The document discusses strategies for reaching rural markets in India. It notes that 2/3 of India's consumers live in rural areas, so rural markets present major opportunities for growth. It outlines some successful rural marketing campaigns, like a campaign by CCI that increased rural village coverage from 81,383 to 1,58,342 between 2001-2003. It also discusses strategies used by companies like HUL's Project Shakti and Roshan Solar Lamp's rural distribution approaches using local promoters and factoring in local customs. Overall, the document advocates tailored rural marketing strategies that consider the communication barriers and social activities important to rural consumers.
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Rural marketing by manisha
- 1. Rural Marketing PRESENTED BY MANISHA MBA FM Student
- 2. Definition Rural marketing is a process of developing, pricing, promoting, and distributing rural specific goods and services leading to desired exchange with rural customers to satisfy their needs and wants, and also to achieve organizational objectives.
- 3. Process of Rural Marketing • FMCG Goods, Agricultural fertilizers, automobiles, etc. are offered by the urban market to the rural market. Urban to Rural • The agricultural supplies viz. Fruits, vegetables, flowers, milk, etc. is offered from the rural market to the urban market Rural to Urban • When a rural manufacturer sells products like cattle, pottery, carts, etc. to other villages, it is called as rural to rural marketing Rural to Rural
- 4. Large and Scattered population Low Standard of living Market Growth and Less Competition Development of Infrastructure Heterogeneous Market Traditional Outlook Different Marketing Strategies Features of Rural Market 1 3 4 5 6 7 2
- 5. Rural Marketing Environment • Dynamic rural market environment forms the basis for consumer decisions ,also for marketers actions. • Demographics, Physical, socio –cultural, political, technological, economical, factors of rural market environment and use it for strategic marketing plans in rural markets • When marketing activities are done in the rural areas, it is necessary to know the conditions of rural markets in terms of environment which is ever changing.
- 6. Rural Marketing Environment environmental factors which influence the trade practices in rural marketing
- 7. Political Changes • government’s intervention in the trade and commerce practices Social Changes • sociological factors • anthropological factors • psychological factors technological Changes • technological advancement • communication and transportation have been improvised Economic Changes • healthy competition • consumer welfare • optimal price Physical Changes • physical distribution of the goods or services into the rural markets. Ethical Changes • moral values of the company
- 8. Employment opportunities Overcrowding of Urban Market Potential of rural Markets Rural Consuming Rate The Large Population Huge Uncaptured Market
- 9. Acceptability Availability Awareness Affordability Rural Marketing 4 A’s of Rural Marketing
- 10. Acceptability They must feel that the product serves its purpose, then they are ready to even spend extra for the product. The first challenge is to gain acceptability for the product or service • LG Electronics : developed customized television christened it Sampoorna. It was a runway hit, selling 1,00,000 sets in the very first year. • Coca-Cola : provides low-cost ice boxes, that is a tin box for new outlets and a thermocole box for seasonal outlets considering lack of electricity and the absence of refrigerators in rural areas
- 11. Availability lesser number of brands available at rural retail outlet. Ensuring the reach of the products at the retailer’s shelf is one of the most critical function • Total 6,38,000 villages in India; 742 million Indians live in rural areas • HUL : strong distribution system to reach the interiors of the rural market • Coca-Cola : evolved a hub-and-spoke distribution model to reach villages • LG has set up 45 area offices and 59 rural / remote area offices
- 12. Affordability Cheaper product, designing products which match the needs of rural consumers, at a price that they feel. Low disposable income, daily wage earners attract small unit packs. • HUL : launched soap brand Lifebuoy, at Rs. 2 for 50gm. Some of the products like Sunsilk, Head & Shoulders, and Colgate cost around Rs. 1 and Rs. 2 for sachets • Coca-Cola : Introduced 200-ml glass bottle at Rs. 5. The Sunfill, a powered soft-drink concentrate, sachet of 25gm priced at Rs. 2
- 13. Awareness they use unconventional media along with commercial media like TV, Radio. Elements like color, logo, slogan Only 41 percent of rural households have access to television— building awareness • HUL : relies heavily on its own company-organized media. These are promotional events organized by stockists • Godrej Consumer Products : uses radio to reach the local people in their own language • Coca-Cola : uses combination of television, cinema and radio to reach 53.6 percent of rural households • LG Electronics : uses vans, local-language advertising and road shows to reach rural customers • Philips India : uses wall writing and radio advertising
- 16. Product Strategies Rural marketers have to conduct market research to identify if a newly launched product will be accepted by them to be successful. Product Launch New Product Design Brand Name Small Unit Low Price Packaging Product Eg: nokia’s1100- customized model for rural. Dust resistant, Small torch, economical.
- 17. Pricing Strategies How much customers pay for a product. Price Differential Pricing Psychological Pricing Create Value for Money Pricing on Special Events Simple Packing Low Price Points Schemes for Retailers Bundle Pricing
- 18. Distribution Strategies • Local Markets • Company Depots • Public Distribution System • Retailers • Redistribution Stockists and Clearing Agents • Delivery Vans, Traders, Sales Person, NGO
- 19. Promotion Strategies • Mass Media • Personalised Media • Local Media • Hiring Models and Actors for Promotion • Advertise Through Paintings