-
7/29/2019 1543767_634835797546120000
1/27
Prepared by
Rupesh Kumar GuptaProgramme Coordinator
(Management Deptt)
-
7/29/2019 1543767_634835797546120000
2/27
Rural marketing can be define as afunction that manages all
activitiesinvolved in assessing, stimulating and
converting the purchasing power of ruralconsumers into an
effective demand forspecific products and services and movingthese
products and services to the people
in rural areas to create satisfaction and abetter standard of
living and therebyachieving organizational goals.
-
7/29/2019 1543767_634835797546120000
3/27
Because rural India offers to greatest hub to Indianmarkets
seeking growth for their production serviceswith 73 % of Indian
population and 12% of worldpopulation living in villages of
india.
In India--- 28 states
600000 villages
4 major religions
1650 ethnic group
15 major languages
1350 dialects
-
7/29/2019 1543767_634835797546120000
4/27
Proliferation(rapidly change) of brands inurban
High saturation levels in urban
Greater awareness of brands in rural Ever-growing aspirations in
rural
No effects of slow down on rural markets !
Greater opportunities for business Large customer area ( 73 %
customers live in
rural area in India)
Low competition
-
7/29/2019 1543767_634835797546120000
5/27
-
7/29/2019 1543767_634835797546120000
6/27
FMCG Rs.65000 crore Agri-inputs Rs.45000 crore Durables (long
life goods)
Rs.5000 crore Automobiles (2 & 4 Wheelers) Rs.8000 crore
Clothes, footwear etc. Rs.35000 crore
Construction material Rs.15000 crore Total Rs.173000 crore
Source: CII Report (2008)
-
7/29/2019 1543767_634835797546120000
7/27
Very intelligent and clever cannot be easilycheat.
Daily activity is routinised
Plenty of time / No SundaysVery conscious of value for money
Does not like to pay extra for frills he cannot
use.
Eg. Colour TV High involvement in any product purchased
Eg. Durables (LIC)
-
7/29/2019 1543767_634835797546120000
8/27
Perceptions, traditions, values vary from state tostate and in
some cases from region to regionwithin a state.(MRF Bullock Cart
Tyres)
Divisions based on caste, community and otherhierarchical
factors continue to exist.
-
7/29/2019 1543767_634835797546120000
9/27
-
7/29/2019 1543767_634835797546120000
10/27
Keep the communication simple
No scope for gimmicks( tricks)
Take time in communicating the message
Quickies have no impact.
Think in the local language to capture the local
spirit in the communication aimed at specificregion.
Demonstration a key element for success
-
7/29/2019 1543767_634835797546120000
11/27
-
7/29/2019 1543767_634835797546120000
12/27
-
7/29/2019 1543767_634835797546120000
13/27
-
7/29/2019 1543767_634835797546120000
14/27
provided your communication is not gimmicky,suggestive and is
easy to comprehend.
Target the opinion leaders first.( Educated villageyouth as
opinion leaders)
Hence need for different communication
packages focused on rural audience
-
7/29/2019 1543767_634835797546120000
15/27
Build Recognition Rural folks understands symbols and
colours better. Pahelwan Chap MRF
Haathi Beedi Laal Sabun Lifebuoy Peela Powder NirmaWhite paste-
Colgate
This also leads to duplicates and fake products Largely sold in
the Haats (weekly markets) in Rural
India Rs.12000 crore p.a. is the estimated loss to FMCG
sector
-
7/29/2019 1543767_634835797546120000
16/27
-
7/29/2019 1543767_634835797546120000
17/27
Untapped potential: it offers a great chancefor different
branded goods as well as servicesfor large number of customers.It
is estimated by HLL that out of 5 lakh
villages in India , only lakh has been taped sofar , which goes
on to indicate the marketpotentials of the rural market .
Market size and potential :The size ofIndia s rural market is
stated as 12.2 % of the
percentage of the old population this means12.2% of the worlds
consumers leave in ruralIndia.In India, rural household farm about
73 % oftotal household constitutes a huge market byany
standard.
-
7/29/2019 1543767_634835797546120000
18/27
Increasing income :Different programsundertaken have helped to
improve the economic theeconomic situation of the rural areas. The
increase inincome is seen in both absolute values as well as in
the
increase in average number of days of occupation in ayear.
Competition in urban areas :The urban marketis getting saturated
and thus is enable to provide the
much needed market to many companies and insearch of greener
pastures many of these companiesare now targeting the rural
market.
-
7/29/2019 1543767_634835797546120000
19/27
Accessibility markets :Though the roadnetwork has not developed
to the best possibleextent but a fire amount of development has
beenmade in many regions, making these regionsaccessible from the
urban region and making ineasier for supplying products to these
regions
To create brand image
-
7/29/2019 1543767_634835797546120000
20/27
Distribution and logistics: Infrastructurecontinues to be a
challenge in rural India. Moreover,the lack of an efficient
distribution network preventspenetration of products/services into
rural India. Oneof the most innovative models in recent times
has
been the usage of the postal service by mobileoperators to
penetrate scrat
Payment collection: The majority of the ruralpopulation is still
unbanked. Clearly, non-cashcollection becomes rather unlikely. Cash
collections,
on the other hand, are messy and difficult to monitor,especially
since cash cards or technology-enabledcentralized POS (like Suvidha
or Itz World) have stillnot reached rural areas. ch cards to the
villages
-
7/29/2019 1543767_634835797546120000
21/27
Pricing: In rural areas peoples dont purchasehigh price
goods
Social and cultural challenges: The cyber
caf (or kiosk) model has not worked in manyparts of rural India
due to socio-cultural issues.
Education level in rural areas
-
7/29/2019 1543767_634835797546120000
22/27
Consumer behaviour
Income level of consumer
Standard of living
Education of consumer
Cultural environment
Taste and preference of consumer
Consumption criteria of consumer Purchasing pattern of consumer(
cash or borrow)
etc..
-
7/29/2019 1543767_634835797546120000
23/27
They understand the regional ethos better They satisfy a
perceived local need Their communication touches a chord which
helps in brand acceptance
They are flexible Adapt to changing market situations
Eg. Anchor, Gadi, Ajanta, Cavinkare (Chik), Power,Goldwinner,
Swagat baniyans
If you are small with limited budgets start byconcentrating on
smaller areas Outdoor / local Cable TV / Radio / participate in
local festivals etc.
-
7/29/2019 1543767_634835797546120000
24/27
Even Nirma started very small
Today it is a Rs.2000 plus crore company!
-
7/29/2019 1543767_634835797546120000
25/27
-
7/29/2019 1543767_634835797546120000
26/27
Marketers will have to understand therural customers before they
can makeinroads in to rural makers.Indian rural market is
undoubtedly
complex but there are some simple truthsthat we need to accept.
The ruralconsumers are very value-conscious. Theymay or may not
have purchasing power,but they can make a difference to
thecompany's growth if concentrated.So, it is apt to say that The
heart of India
still lies in the villages
..
-
7/29/2019 1543767_634835797546120000
27/27
