LOGO

Making Inroads Into Hinterlands Making Inroads Into HinterlandsRural Marketing

SHOBIT GUPTA

A CLASSIC QUESTION

“Improving the life of billions

of people at the bottom of

economic pyramid is a noble

endeavor. It can also be a

lucrative one”

C.K. Prahlad

Rural supermarkets (haats) in

India 42,000 exceeds the total

number of retail chain stores in

the US (35,000).

LIC sold 55 percent of its

policies in rural India.

50% BSNL connections are

rural.

60% Rediffmail users are from

small towns.

24 million KCC, greater than

urban India(17.4 million).

Some facts of Rural Sector

Government agencies like IRDA &

NCEAR defines Rural as village with a

population less than or equal to 5000

with 75% male population engaged in

agricultural activities.

What is Rural ?

Rural Markets are future Battlegrounds

Objective of Project To study the emergence of

rural markets in the context

of India.

To study the present

scenario of rural marketing

in India.

To study the role of

advertisement in rural

India.

To study the constraints in

marketing communication

in rural India.

To study the challenges

faced by rural marketers in

India.

To study the future

prospects of rural markets.

Secondary Data

METHODOLOGY

Descriptive Research

ATTRACTIVENESS OF RURAL MARKET

Large population

Rising propensity

Growth in consumption

Life cycle changes

Life cycle advantages

Market growth rate higher

than urban

Rural marketing is not

expensive

Remoteness is no longer a

problem

Moving from predictive

to adaptive

Pricing Framework

Cost Competition Demand

Designing Promotion

Determining communication

objectives

Creating message content or

appeals

Evolving message structure

Developing message format

Choosing message source

Selecting the channel

Deciding on promotion mix

Establishing promotion

budget

Communication Objective

To achieve awareness among a

certain percentage of target

audience.

To improve product knowledge

among target customers.

To strengthen liking or

preference to buy the product.

To persuade the consumers to

buy the product.

APPEAL ASPECTS EXAMPLES

 

Rational

 

Benefits: Quality, value, performance,

etc.

 

Hero Honda Fill it, shut it. Forget it. Three rose

tea: color, taste and flavor

 

Emotional

 

Positive: humor, love, pride and joy

 

Prestige pressure cooker: Those who love their

wife cannot say no to Prestige pressure cooker

   

Negative: Fear, guilt, and shame

 

Onida: Neighbors envy, owner’s pride

 

Moral

 

Right behavior, social causes

 

Aids campaign. Fight cancer

Campaign

Message Content

Message Format

Pictures, dramatizing voices, attractive expressions and color have more influence on rural

Message Source

BRAND CELEBRITYCHARACTERISTIC IMAGE

Agni tea

Horlicks

Taj

Sridevi

Couple,

elderly

Ustad

Attractiveness

Trustworthine

ss

Expertise

Energy

Depend

able

Skilled

Selecting Channel Distribute products through

retail outlets

Create opinion leaders

Develop advertising that has

high conversational value

Train middlemen in interacting

with consumers

Establish Tele links for online

transactions

DECIDING ON PROMOTION MIX

Contest and

Demonstrations

Sampling

Installment Schemes

Old Setup

Wholesaler

Retailer

Vans

Weekly haats &

Bazaars

Melas & Fairs

New channels Unofficial Channels

Cooperative Societies

Public Distribution

System

Petrol Pumps

Agricultural Input

Dealers

NGOs

Barefoot Salesman

Syndicated Distribution

Case Studies...

Coca Cola

Invested US$ 1 Billion

27 owned & 17 franchise operations

Using Celebrities

30% revenue from rural sector

“Thanda…” campaign

Different promotion in south

TATA SALT

Story begins in 1983

“Namak Ho Tata Ka, Tata Namak”

15% spends on promotion

2002, “Desh ka Namak”

Television

Wall Painting

Calender

Colgate

Incorporated in 1937 as CPIL

Enjoys 50% market share

“Colgate fresh energy gel”

Use of mass media

Opinion Leader

Strong distribution network

Casper Advertising in local newspaper.

Stressing in trade related activities.

Making mosquito mats machine

available at electronic shops,

painting shops for free gifts.

carried out product distribution

through vans and educate the rural

They also advertise in between

various local events in the rural

areas.

CONCLUSION