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    Rural Marketing in India: By-Ankit Pawar (5) Astha Savyasachi (7) Mba (Gen), Sec-A, Sem-2

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    asthasachi
    This document discusses rural marketing in India. It covers topics such as the definition of rural marketing, types of rural transactions, evolution of rural marketing, nature and attractiveness of the rural market, classification of rural consumers, and strategies for rural marketing such as the 4A's approach, developmental marketing, and adapting the marketing mix for rural areas. Key aspects of rural marketing include large and diverse rural populations, rising incomes and standards of living in rural areas, and tailoring products, pricing, promotion, and distribution to rural needs and infrastructure.

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    Rural Marketing in India: By-Ankit Pawar (5) Astha Savyasachi (7) Mba (Gen), Sec-A, Sem-2

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    asthasachi
    41 views30 pages
    This document discusses rural marketing in India. It covers topics such as the definition of rural marketing, types of rural transactions, evolution of rural marketing, nature and attractiveness of the rural market, classification of rural consumers, and strategies for rural marketing such as the 4A's approach, developmental marketing, and adapting the marketing mix for rural areas. Key aspects of rural marketing include large and diverse rural populations, rising incomes and standards of living in rural areas, and tailoring products, pricing, promotion, and distribution to rural needs and infrastructure.

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    This document discusses rural marketing in India. It covers topics such as the definition of rural marketing, types of rural transactions, evolution of rural marketing, nature and attractiveness of the rural market, classification of rural consumers, and strategies for rural marketing such as the 4A's approach, developmental marketing, and adapting the marketing mix for rural areas. Key aspects of rural marketing include large and diverse rural populations, rising incomes and standards of living in rural areas, and tailoring products, pricing, promotion, and distribution to rural needs and infrastructure.

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    41 views30 pages

    Rural Marketing in India: By-Ankit Pawar (5) Astha Savyasachi (7) Mba (Gen), Sec-A, Sem-2

    Uploaded by

    asthasachi
    This document discusses rural marketing in India. It covers topics such as the definition of rural marketing, types of rural transactions, evolution of rural marketing, nature and attractiveness of the rural market, classification of rural consumers, and strategies for rural marketing such as the 4A's approach, developmental marketing, and adapting the marketing mix for rural areas. Key aspects of rural marketing include large and diverse rural populations, rising incomes and standards of living in rural areas, and tailoring products, pricing, promotion, and distribution to rural needs and infrastructure.

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    RURAL MARKETING IN

    INDIA

    BY-ANKIT PAWAR (5)


    ASTHA SAVYASACHI (7)
    MBA(GEN), SEC-A,SEM-2
    RURAL MARKETING

    Rural marketing involves the process of developing,


    pricing, promoting, distributing rural specific
    product and a service leading to exchange between
    rural and urban market which satisfies consumer
    demand and also achieves organizational objectives.

    URBAN RURAL
    RURAL URBAN
    RURAL RURAL
    It is a two-way marketing process wherein the
    transactions can be:

    Urban to Rural:A major part of rural marketing


    falls into this category. It involves the selling of
    products and services by urban marketers in rural
    areas. These include:Pesticides, FMCG Products,
    Consumer durables, etc.
    Rural to Urban:Transactions in this category
    basically fall under agricultural marketing where a
    rural producer seeks to sell his produce in an urban
    market. An agent or a middleman plays a crucial role
    in the marketing process. The following are some of
    the important items sold from the rural to urban
    areas: seeds, fruits and vegetables, milk and related
    products, forest produce, spices, etc.
    Rural to Rural:This includes the activities that
    take place between two villages in close proximity to
    each other. The transactions relate to the areas of
    expertise the particular village has. These include
    selling of agricultural tools, cattle, carts and others to
    another village in its proximity.
    EVOLUTION OF RURAL MARKETING
    PHA ORIGIN FUNCTION MAJOR SOURCE DESTINA
    SE MARKET MARKET TION

    1 BEFORE MID- AGRICULTURAL AGRICULTURAL RURAL URBAN


    1960 MARKETING PRODUCE

    2 MID 60’S MARKETING OF AGRICULTURAL URBAN RURAL


    AGRICULTURAL INPUTS
    INPUTS

    3 MID 90’S RURAL CONSUMABLES URBAN & RURAL


    MARKETING AND DURABLES RURAL

    4 21 CENTURY DEVELOPMENT ALL PRODUCTS URBAN & URBAN &


    MARKETING & SERVICES RURAL RURAL
    NATURE OF RURAL MARKETING

    Large, Diverse and Scattered Market.


     Major Income of Rural consumers is from
    Agriculture.
    Standard of Living and rising disposable
    income of the rural customers.
    Rising literacy levels.
    Diverse socioeconomic background.
    Infrastructure Facilities.
    CLASSIFICATION OF RURAL CONSUMERS

    The Affluent Group:They are cash rich farmers


    and a very few in number. They have affordability
    but not form a demand base large enough for
    marketing firms to depend on. Wheat farmers in
    Punjab and rice merchants of Andhra Pradesh fall in
    this group.
    The Middle Class:This is one of the largest
    segments for manufactured goods and is fast
    expanding. Farmers cultivating sugar cane in UP and
    Karnataka fall in this category.
    The Poor:This constitutes a huge segment.
    Purchasing power is less, but strength is more. They
    receive the grants from government and reap the
    benefits of many such schemes and may move
    towards the middleclass. The farmers of Bihar and
    Orissa fall under this category.
    ATTRACTIVENESS OF RURAL MARKETING

     Large Population.
    Rising Rural Propensity.
    Growth in consumption.
    Life style changes.
    Market growth rates higher.
    Rural marketing is not expensive.
    Remoteness is no longer a problem.
    4 A’S APPROACH OF INDIAN RURAL MARKET

    AVAILABILITY:
    1-The total number of inhabitated villages in India are
    593,731. 700 million Indians may live in rural areas, finding
    them is not easy. However, given the poor state of roads, it is
    an even greater challenge to regularly reach products to the
    far-flung villages.
    2-Coca-Cola, which considers rural India as a future growth
    driver, has evolved a hub and spoke distribution model to
    reach the villages. To ensure full loads, the company depot
    supplies, twice a week, large distributors which act as hubs.
    These distributors appoint and supply, once a week, smaller
    distributors in adjoining areas.
    AFFORDABILITY:
    1-With low disposable incomes, products need to be
    affordable to the rural consumer, most of who are on
    daily wages.
    2-Fair and lovely was launched in a smaller pack.
    3- Colgate toothpaste launched its smaller packs to cater to
    the travelling segment and the rural consumers.
    4-Godrej introduced three brands of Cinthol, Fair Glow and
    Godrej in 50-gm packs, priced at Rs 4-5 meant
    specifically for Madhya Pradesh, Bihar and Uttar
    Pradesh.
    ACCEPTABILITY:
    1-There is a need to offer products that suit the rural
    market.
    2-Because of the lack of electricity and refrigerators in
    the rural areas, Coca-Cola provides low-cost ice
    boxes — a tin box for new outlets and thermocol box
    for seasonal outlets.
    AWARENESS:
    1-Fortunately, the rural consumer has the same likes as the
    urban consumer — movies and music — and for both the
    urban and rural consumer, the family is the key unit of
    identity.
    2-Coca-Cola uses a combination of TV, cinema and radio to
    reach rural households. It doubled it’s spend on advertising
    on Doordarshan.It has also used banners, posters and
    tapped all the local forms of entertainment. Since price is a
    key issue in the rural areas, Coca-Cola advertising stressed
    its `magical' price point of Rs 5 per bottle in all media.
    MARKETING STRATEGIES FOR RURAL
    MARKETING

    Client and location specific promotion


    Joint or cooperative promotion.
    Bundling of inputs
    Developmental marketing
    Unique selling proposition (USP)
    Business ethics
    Partnership for sustainability
    DEVELOPMENTAL MARKETING

    It is a process through which awareness is created. It can


    be done through:
    i) demonstration
    ii) presentation AWARENESS
    iii) free samples.
    Eg-Colgate Operation Jagruti TRIAL
    Switch from Charcoal to Colgate
    tooth powder.
    PURCHASE
    HUL - Free samples of Lifebuoy
    Cavin Kare – Free sample of POST –PURCHASE
    Chik Champoo SATISFACTIO N
    NEW MARKETING MIX FOR SELLING TO RURAL
    INDIANS
    RURAL PRODUCTS

    1-Product to be marketed with the requirements of the Rural


    Consumer should not be an extension of urban offerings.
    (Philips launched Free Power Radio – does not require
    Battery/electricity you wind it with a lever and radio runs
    For approximately 30 min.)
    2-Rural Products
    i)Easy to Use
    ii)After sales support
    ii)Conveniently packed- success of Sachets
    iv)Product literature to be simple
    CLASSIFICATION OF RURAL PRODUCTS

    FMCG(HUL,
    MARICO etc.)

    CONSUMER
    DURABLES(TV,
    RURAL PRODUCTS Fridge, Fan etc.)

    SERVICES(Telecom,
    Banking)

    AGRI-
    INPUTS(Seeds,
    Pesticides)
    PRODUCT STRATEGIES

    Small unit packing


    New product designs
    Sturdy products
    Utility oriented products.
    RURAL PRICING

    The consumer understands and demands value for


    money in every purchase that he makes. Pricing
    therefore is a direct function of factors including cost-
    benefit advantage and opportunity cost.
    Buying cheap is not the primary objective. Rather, it is
    “buying smart”.
    It must be remembered that the rural consumer does
    not have a budget problem. He has a cash flow
    problem. This is because the village folk receive funds
    only twice a year. At these times, he is capable of
    making high volume purchases.
    PRICING STRATEGIES

    Low cost products


    Refill packs or reusable packaging
    Application of value-engineering.
    Large volume –low margin strategy.
    Overall efficiency and passing of benefits to the
    consumers.
    PROMOTION AND ADVERTISING

    The rural consumer likes to touch and feel a product before making a
    choice. Demonstrations are undoubtedly the most effective promotional
    tool that shapes purchase decisions of the rural population.
    Intermediaries are the foundation to rural distribution. If the
    intermediary understands and is constantly reminded about your
    product, then the end user will not be allowed to forget.
    Consumer and Trade schemes that Incentivise Spending using discount
    coupons, off season discounts, free samples, etc. encourage spending.
    The use of local idioms and colloquial expressions are an excellent way
    to strike a rapport with the rural
    consumer and must be borne in mind when developing media plans and
    public relations programmes.
    Social messaging:
    Social messaging to reach the hearts and minds of rural India.
    1-Very ‘political activist’ in its theme to strike a chord with rural
    audiences. Abhishek Bachchan- presented as a humble public
    servant, an agent of change.

    2-Amir Khan in ad of Coca-Cola as a jatt.


    RURAL MEDIA

    CONVENTIONAL NON-CONVENTIONAL

    1-Includes TV, radio, print 1- Includes puppet


    Cinema, media etc. Shows, haats,
    demonstration,mela
    2-Adv.: excellent reach, 2- high involvement,
    less expensive. High interest.
    3-Disadv.: no customised 3- coverage, repeat.
    messages.
    PROMOTION STRATEGIES

    Think global , act local.


    Think in “Local Idiom”.
    Simplicity and Clarity.
    Narrative story style.
    Choice of brand ambassador.
    RURAL PLACE

    Reaching the right place is the toughest part in today’s rural


    marketing, as most of the products reach up to the nearest
    townships of any village, but due to higher distribution costs, these
    products fails to reach the village as the distribution channel fails to
    put in the required efforts.
    Distribution must be strengthened and this would raise investment
    cost barriers for new entrants.
    Haats are the nerve centre of Rural India. They are a readymade
    distribution network embedded in the fabric of rural society for
    over 1000 years.
    The other most important factor to consider while developing rural
    distribution strategy is that the move from transactional marketing
    to relationship marketing is most evident in the village market.
    RURAL DISTRIBUTION

    RURAL DISTRIBUTION

    PHYSICAL CHANNEL OF
    DISTRIBUTION DISTRIBUTION

    Physical distribution:
    1-Transportation-railways, roads, waterways etc.
    2-Communication-Mobile usage by fisherman etc.
    3-Warehousing-three tier warehousing setup.
    DISTRIBUTION STRATEGIES

    Segmentation
    Use of co-operative societies.
    Utilization of public distributory system
    Distribution upto feeder markets or mandi towns.
    Haats and Melas.
    Joint distribution by non-competing companies.
    Personal selling network.
    REFERENCES

    Kannan, S. Rural market – a world of opportunity.


    Dawar, N. & Chattopadhyay, A. -Rethinking
    marketing programs for emerging markets.

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