Description
In other words, Rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.
? Rural Marketing is defined as any marketing
activity in which one dominant participant is from a
rural area.
? In other words, Rural marketing consists of
marketing of inputs (products or services) to the
rural as well as marketing of outputs from the rural
markets to other geographical areas.
What is Rural Marketing??
? Population of India: 1.2 billion and
increasing.
? Population of Rural India : 85Crore (Approx.)
“72% OF THE INDIAN POPULATION IS RURAL.”
? Individuals earn as low as 4$ per day.
? Minimum Infrastructure.
? Language changes every 170kms
? Struggling Literacy
? Dependent on mostly on Agriculture
STRENGTH
? 647 Million population largely uncovered.
? 72% population contributes to half on India’s GDP.
? Size of rural market is 124000 Crore
approximately.
WEAKNESS
? Low literacy rate.
? Lack of facilities like uninterrupted or
sustainable power, roads and logistics etc.
? No common language.
? The mass resists change due to a traditional
outlook.
OPPURTUNITIES
? Government Interest:
? 41 Million Kisan credit cards providing 977 Billion to Rural
India.
? Bharat Nirman & Grameen Sadak Yojna has resulted in
increased rural connectivity.
? 87% villages have been electrified, providing a possibility to
industrial, marketing & other business activities in wider
scale.
? Less exposure to various brands, meaning less competition.
? Resistance to change gives established brands a preferred
leverage.
? Rural literacy improved from 36% to 59%.
? Percentage of B.P.L families declined from 46% to 27%.
THREAT
? Creating products for Rural areas can be tricky.
? Corporate houses with deeper pockets(Large
Capital) can enter and perform since a huge
infrastructure is required.
? Communication is a challenge;
Miscommunication-A Threat.
? Low availability of infrastructure can cause loss
on investment.
? Product Differentiation:
Variety:size,price,feel. (CONCENTRATING ON THE 4 A’s)
? Use of Technology:
? Smart cards for villagers for accessing bank accounts.
? ITC E-Chaupal, where farmers keep in touch with
latest prices of food grain ,manure,fertilizers etc.
? Communicate in their Language:
Message should be Comprehensive & Clear.
for Example: Lifebuoy Swasthya Chetna Program
? USP: Unique Selling Proposition: The product
should have a definite as well as purposeful U.S.P to be
Salable in a rigid brand adhered Rural market.
? PUSH-PULL STRATEGY
? DOWNWARD STRETCHING
? Thinking Differently:
Companies should come up with New concepts to
reach & serve the rural mass to create a market space &
gradually sell the products.
For example:
? Grameen Bank introduced Micro finance & Micro
Credit for the poor.
? Bajaj Allianz’s Micro Insurance.
? Supply Chain Management:
? H.U.L Shakti- Used Rural Women as
distributors of its Products.
? TATA used NGO network In U.P, to supply its
products in villages.
? RELIANCE retail procuring from local villages
to supply in neighboring cities.
? Some upcoming innovative ideas for Rural
India:
? Hybrid Rural Transporter: Mahindra &
Mahindra.
? Sampoorna T.V by L.G
? Sturdy Wrist Watches by Titan.
? Godrej’s “CHOTUKOOL”
? L.I.C sold 55% of its policies in Rural areas.
? Of 2 million BSNL mobile connections, 52% are
from small towns & villages.
? Hero Honda’s(Now Hero Moto Corp) 43% sales
come from villages.
? H.U.L’s 45% sales are originated from villages &
small township.
? L.G sold 55% of its televisions in Rural Market, in
2009.
? Out of 20 Million Rediffmail signups, 60% are from
small towns, 50% transactions in these areas are
through Rediff’s online shopping sites.
? 42 million Rural households availing banking
services in comparison to 27 million Urban
household.
? PRODUCT STRATEGY:
?Small Unit Packaging.(Sachets Availability Etc.)
?Tough Products to endure rough use, wear and tear
etc. (For eg-Nokia 1100,Samsung Marine etc.)
?Utility Oriented( Purposeful, Effortless yet Effective
Products)
?Brand Name( Nirma’s “PEELI TIKKI” & Coca Cola’s
“THANDA”)
? PRICING STRATEGY:
?Low cost/Cheap products achievable through low
unit packaging.
?Refill packs/Reusable packaging.
?Practice of a “Large volume Low Margin Strategy”.
? PLACING STRATEGY:
? Allocation of products in common Haats.
?Classification of Low-High foot fall areas.
?Good terms with the local Retailers “Kirana Shops”
?Development of wholesale facilities for sufficient
supply of products.
? PROMOTION:
?Think global act local.
?Simplicity & Clarity(Highlight in functional value of
product along with some extra benefits)
?Choice of Brand Ambassador.
?CHOOSING MEDIA VEHICLES:
? To be selected according to the area reachability.
IN HIGH REACH AREAS IN LOW REACH AREAS
o Jeep based
advertisement
o Wall Painting
o Bus-Stands, Stops etc.
o Haats
o Hoardings
o Tin Paints on Trees/Shops
o Leaflets
o Posters/Banners
o Danglers
? Rural Marketing offers challenges as well as
opportunities.
? Very promising future for those who CAN.
? ONE DEMAND IN PARTICULAR-
“SASTA,SUNDAR,MAZBOOT”
? www.thehindubusinessline.com/nic/073/index.html
? www.coolavenues.com/know/mktg/
? www.indianmba.com/facultycolumn/fc658.html
? www.freembanotes.in
doc_972484205.pptx
In other words, Rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.
? Rural Marketing is defined as any marketing
activity in which one dominant participant is from a
rural area.
? In other words, Rural marketing consists of
marketing of inputs (products or services) to the
rural as well as marketing of outputs from the rural
markets to other geographical areas.
What is Rural Marketing??
? Population of India: 1.2 billion and
increasing.
? Population of Rural India : 85Crore (Approx.)
“72% OF THE INDIAN POPULATION IS RURAL.”
? Individuals earn as low as 4$ per day.
? Minimum Infrastructure.
? Language changes every 170kms
? Struggling Literacy
? Dependent on mostly on Agriculture
STRENGTH
? 647 Million population largely uncovered.
? 72% population contributes to half on India’s GDP.
? Size of rural market is 124000 Crore
approximately.
WEAKNESS
? Low literacy rate.
? Lack of facilities like uninterrupted or
sustainable power, roads and logistics etc.
? No common language.
? The mass resists change due to a traditional
outlook.
OPPURTUNITIES
? Government Interest:
? 41 Million Kisan credit cards providing 977 Billion to Rural
India.
? Bharat Nirman & Grameen Sadak Yojna has resulted in
increased rural connectivity.
? 87% villages have been electrified, providing a possibility to
industrial, marketing & other business activities in wider
scale.
? Less exposure to various brands, meaning less competition.
? Resistance to change gives established brands a preferred
leverage.
? Rural literacy improved from 36% to 59%.
? Percentage of B.P.L families declined from 46% to 27%.
THREAT
? Creating products for Rural areas can be tricky.
? Corporate houses with deeper pockets(Large
Capital) can enter and perform since a huge
infrastructure is required.
? Communication is a challenge;
Miscommunication-A Threat.
? Low availability of infrastructure can cause loss
on investment.
? Product Differentiation:
Variety:size,price,feel. (CONCENTRATING ON THE 4 A’s)
? Use of Technology:
? Smart cards for villagers for accessing bank accounts.
? ITC E-Chaupal, where farmers keep in touch with
latest prices of food grain ,manure,fertilizers etc.
? Communicate in their Language:
Message should be Comprehensive & Clear.
for Example: Lifebuoy Swasthya Chetna Program
? USP: Unique Selling Proposition: The product
should have a definite as well as purposeful U.S.P to be
Salable in a rigid brand adhered Rural market.
? PUSH-PULL STRATEGY
? DOWNWARD STRETCHING
? Thinking Differently:
Companies should come up with New concepts to
reach & serve the rural mass to create a market space &
gradually sell the products.
For example:
? Grameen Bank introduced Micro finance & Micro
Credit for the poor.
? Bajaj Allianz’s Micro Insurance.
? Supply Chain Management:
? H.U.L Shakti- Used Rural Women as
distributors of its Products.
? TATA used NGO network In U.P, to supply its
products in villages.
? RELIANCE retail procuring from local villages
to supply in neighboring cities.
? Some upcoming innovative ideas for Rural
India:
? Hybrid Rural Transporter: Mahindra &
Mahindra.
? Sampoorna T.V by L.G
? Sturdy Wrist Watches by Titan.
? Godrej’s “CHOTUKOOL”
? L.I.C sold 55% of its policies in Rural areas.
? Of 2 million BSNL mobile connections, 52% are
from small towns & villages.
? Hero Honda’s(Now Hero Moto Corp) 43% sales
come from villages.
? H.U.L’s 45% sales are originated from villages &
small township.
? L.G sold 55% of its televisions in Rural Market, in
2009.
? Out of 20 Million Rediffmail signups, 60% are from
small towns, 50% transactions in these areas are
through Rediff’s online shopping sites.
? 42 million Rural households availing banking
services in comparison to 27 million Urban
household.
? PRODUCT STRATEGY:
?Small Unit Packaging.(Sachets Availability Etc.)
?Tough Products to endure rough use, wear and tear
etc. (For eg-Nokia 1100,Samsung Marine etc.)
?Utility Oriented( Purposeful, Effortless yet Effective
Products)
?Brand Name( Nirma’s “PEELI TIKKI” & Coca Cola’s
“THANDA”)
? PRICING STRATEGY:
?Low cost/Cheap products achievable through low
unit packaging.
?Refill packs/Reusable packaging.
?Practice of a “Large volume Low Margin Strategy”.
? PLACING STRATEGY:
? Allocation of products in common Haats.
?Classification of Low-High foot fall areas.
?Good terms with the local Retailers “Kirana Shops”
?Development of wholesale facilities for sufficient
supply of products.
? PROMOTION:
?Think global act local.
?Simplicity & Clarity(Highlight in functional value of
product along with some extra benefits)
?Choice of Brand Ambassador.
?CHOOSING MEDIA VEHICLES:
? To be selected according to the area reachability.
IN HIGH REACH AREAS IN LOW REACH AREAS
o Jeep based
advertisement
o Wall Painting
o Bus-Stands, Stops etc.
o Haats
o Hoardings
o Tin Paints on Trees/Shops
o Leaflets
o Posters/Banners
o Danglers
? Rural Marketing offers challenges as well as
opportunities.
? Very promising future for those who CAN.
? ONE DEMAND IN PARTICULAR-
“SASTA,SUNDAR,MAZBOOT”
? www.thehindubusinessline.com/nic/073/index.html
? www.coolavenues.com/know/mktg/
? www.indianmba.com/facultycolumn/fc658.html
? www.freembanotes.in
doc_972484205.pptx