3. Ruralmarketing Reading Material

7/23/2019 3. Ruralmarketing Reading Material

http://slidepdf.com/reader/full/3-ruralmarketing-reading-material 1/59

CHAPTER- 1. INTRODUCTION TORURAL MARKETING

Definition:-

Rural marketing can be defined as a function which manages all those activities in

asserting, stimulating and converting the purchasing power of rural people into an

effective demand for specific products and services and there by achieving the

goals of the organisation.

Rural areas:-

Rural areas are large and isolated areas of an open country with low population

density a country side refers to rural areas that are open.

Meaning of Rural marketing:-

Rural marketing is promotion of a company’s products in the rural markets

by using strategies which differ from that of urban market. The rural market

more price sensitive but it has preference quantity.

Nature of Rural market:-

. Large, diverse and scattered market:-

Rural marketing in !ndia is large, and scattered into a number of

regions. There may be less number of shops available to market

products.". Major income of rural consumers is from agriculture:-

Rural prosperity is tied with agriculture prosperity. !n the event of

crop failure, the incomes of masses is directly affected.

#. Traditional outlook :-

$illages develop slowly and have a traditional outlook. %hange is a

continuous process but rural people accept change gradually. This is

gradually changing due to literacy especially in the youth who have begun

to change the outlook in the villages.

&. Standard of living and rising disposable income of te rural

customers:-

!t is known that ma'ority of the rural population lives below poverty

line and has low literacy rate, low savings etc. Today the rural customers

spends money to get value and is aware of the happening around him.

(. Rising literar! levels:-

!t is documented that appro)imately &(* of rural !ndians are literate.

1 | P a g e



+ence awareness has increase and the formats are well informed about

the world around them. They are also educating themselves on the new

technology for a better life style.

. Diverse socio economic background:-

ue to differences in geographical areas and uneven land fertility, rural

people have different socio economic background, which ultimately affectsthe rural markets.

. "nfrastructure facilities:-

The infrastructure facilities like warehouses, communications systems

and financial facilities /or0 inadequate in rural areas physical distribution

is a challenge to marketers who has found innovative ways to market

their products.

Scope of marketing:-

. Large population:-

1ccording to "2 census, rural population is "* of total population

and it is scattered over a wide range of geographic area.

". Rising rural prosperit!:-

1verage income level has unproved due to modern farming practices,

contract farming industrialisation, migration to urban areas etc.

#. #ro$t in consumption:-

There is a growth in purchasing power of rural consumers. The

average per capita house hold e)penditure is #3" Rs&. %ange in life st!le:-

4ife style of rural consumer changed

considerably. (. Market gro$t rate iger

tan urban:-

The growth rate of fast moving consumer goods 567%89 market and

durable market is high in rural areas. The rural market share is more than

(2* for products like cooking oil, hair oil etc.

. Life c!cle advantage:-

The products which have attain the maturity stage in urban market is

still in growth stage in rural market.

. Rural marketing is not e&pensive:-

To promote consumer durable inside a state costs croreRs while in

urban areas it will costs in millions.

Meaning of rural market:-2 | P a g e



n account of green revolution, the rural areas are consuming a large quality

of industrial and urban manufactured products. !n this conte)t a special

marketing strategy namely rural marketing has emerged. ;ut often rural

marketing is confused with agricultural marketing < The letter denotes

marketing of produce of rural areas to the urban consumers or industrial

consumers, were as rural marketing involves delivering manufactured or processed inputs or services to rural producers of consumers.

"mportance of rural market:-

. Large market:-

1ppro)imately (* of !ndian’s population resides around ,#3,#(

villages of !ndia spread over #",22,222 =q. kilometre &* of !ndian’s

middle class resides in rural areas. The !ndian rural consumer leaves in

,22,222 villages across the country and they account for over 2* of

population of the country. 6or several product categories, rural markets

account for over 2* of the national demand.

". 'iger purcasing capacit!:-

1ccording to >N%()R ?5@ational %ouncil for 1pplied Aconomic

Research9. 1s per @%1AR study there are many middle income and

above households in the rural areas. 1s there are in the urban areas there

are almost twice as many lower middle income households in rural areas

as in the urban areas. ;ecause of this purchasing power of power of rural

people is on rise.

#. Market gro$t:-

>+ariyali kissan ba'ar? was set up by sri ram consolidated limited to

facilitates scale of agriculture inputs such as fertiliBers, pesticides

forming equipment, seeds etc. =hakti- though the state governments and

8’= involved in microfinance women entrepreneurs in villages are

identified to act as local distribution and sales point for +C4 products.

4. "T%:-

!tc’s internet enabled rural interface to help scale of agricultural outputs

is presently operational in states market is growing at a rate of #-&*

p.a.

Si*e of rural market in "ndia

3 | P a g e









(spect rban Rural

Ihilosophy7arketing Dsocial conceptsD relationship market

7arketing D social conceptsdevelopmentmarketing

emand +igh 4ow

%ompetition 1mong units in organiBedsector

1mong unorganised sector

%onsumers:‐4ocation4iteracy!ncomeA)penditure

@eeds!nnovations

%oncentrated+igh+ighIlanned Deven+igh level6aster

Hidely spread4ow4ow=easonal Dvariations4ow level=low

Iroduct awareness +igh 4ow

%oncept Jnown 4ess known

Iositioning Aasyifficult

Csage method Aasy grasped ifficult to grasp

Kuality preference 8ood7oderate

Irice sensitive Les $ery much in rural

istribution channels

Hhole seller, retailers,supermarkets, specialitystores, authorised storerooms

$illage shops

Transport facility 8ood 7oderate

Iroduct availability +igh 4imited

1dvertisingIrint, audio, visual media,outdoors, e)hibitions etc T.v, radio, print media to some e)t

Iersonal sellingoor ‐to‐door ccasionally

=ales promotion %ontest, gifts, price discount8ifts D price discount

Iublicity 8ood opportunity 4ess opportunity

7 | P a g e



roblems of rural marketing

The problems of rural marketing are continuing in spite of efforts to improve in a Eth

five year plan. The position is improving but slowly the rural marketer has many

challenges. ;ut the vast D e)panding markets call for good marketing strangers to

create win situations to all parties in the chain of rural marketing.

The problems of rural marketing are as follows:-

¾ Cnder developed people

¾ Cnder developed market

¾ !mproper communication facilities

¾ 7any languages

¾ $astness D uneven spread

¾ 4ow per capita income

¾ Ioor infrastructure facilities

¾ =easonal demand

¾ 4ess distribution channel

. nder developed people:-

Rural society is found by tradition, old customs, practices etc. The

impact of modern science D technology has made very less impact of the

old beliefs are still continuing.

". nder developed market:-

Rural markets are not developing because of inadequate banking D

credit facilities. Rural market needs banks to enable remittance, to

transact on credit basis and to obtained credit support from the bank. 1t

present every &3th

village in !ndia only has bank.

#. oor or improper communication facilities:-

7ost villages even today largely depends on telegrams and phones for

their communication needs print media and visual media5Television

cinema9 etc reaches only about "2* of rural !ndians.

&. Man! languages:-

!ndia is a country of many languages. 4anguage becomes a barrier in

effective communication in the marketing efforts. The languages vary

from state to state, place to place, district to district there are now 3

schedule national languages.

8 | P a g e



(. .astness + unevenl! spread:-

!ndia is a vast time D ma'or appro)imately #"&km from @orth to

=outh D"E##km from Aast to Hest.

Rural market consists of appro)imately ( cores rural consumers

spread across appro)imately ,#3,#( villages. espite the urban

migration, the rural areas continue to be the place of living for a vast

ma'ority !ndians.

9 | P a g e



. Lo$ per capital income:-

7ost farmers has small lands and many villages are brought prone,

this result in low per capita income.

4ow per capita income Results in low consumption pattern as

compared to the urban population.

The marketers faces challenges in rural marketing to decide aboutquantities, frequency of distributions, package siBe etcM due to the low

per capita income of the rural people.

. oor infrastructure facilities:-

!nfrastructural facilities like roads, ware houses, powers etcM are

inadequate in rural areas. !nfrastructural cost are very high and impact

adversely in the rural market activities.

3. Seasonal demand:-

Rural economic is seasonal, rural people have two seasonal namely

khariffDrabi. $illages have money mostly in these seasons. 1s village

incomes are seasonal demands are also.

10 | P a g e



11 | P a g e







01S/%"(L %'(N#)S:- The social factor consists of three factors,

02 Sociological factor:-

%onsumer society or the community is

important. The consumer life style is influenced by the social setup. The

social constitution and changes influence customer habits, taste, and

lifestyles.

32 (ntropological factors:-

The reasonable cultures and subcultures and

living patterns influence advertising sales promotion, selling strategies

and packing. The consumers in east !ndia have different taste.

42 s!cological factors:-

%onsumer behavior attitudes personality and

mental make ups are unique. The study of behavior is vital to evolve

marketing mi).

2. )conomic factors:-

1) %ompetition:-

1 good and healthy competition brings in good and

overall improvement in economic activities. !t also brings good quality,

good quantity and price.

32 %onsumers:-

The consumer today is quite knowledgeable and

choosy. +is progress and well being should be the aim of any economic

activity.42 rice:-

Iricing is a delicate issue where it should be market

friendly, not too high or to little. The marketers has to keep in mind to

get descent returns on investment and effects of producers and

marketers.

52 )tical forces:-

;usiness minus ethical values brings degeneration. !n

the long run it brings problems. @o standardiBation, e)ploitation and

falsification are main ethical values in such organiBation.

62 olitical forces:-The government polices towards trade and commerce,

internal ta)ation and preferential treatments have a influence on the

marketing strategies. The marketing environment has to meet the

political frame work in which a government is made to work.

72 !sical forces:-

The infrastructure availability for movement and storage

of goods play an important role in the physical distribution of goods and

reaching the consumers. Afficient and cheaper logistics helps the market



in a big way.

82 Tecnological force:-

The fast changing science and technology gives a cutting

edge to the marketing of products. The changes warrant changes in

marketing , inputs and



strategies. 6aster and efficient communication and transport systems

have speeded up marketer. The capital is made to work faster and

harder .=o in the case with the marketer, +e has to use these new

marketing tools and facilities in designing and implementing his

marketing strategies which are adaptive to the change inenvironment and ensure success.

9actors influencing rural consumer beavior

(NS:- The various factors that affect buying behaviour of in rural !ndia are:

1) )nvironment of te consumer:- the environment or the

surroundings in which the consumer leaves has a very strong

influence on the buyer behavior. A.g.:-electrification, water supply

effects demand for durables.

2) #eograpic influence:- the geographic location in which the rural

consumer is located also speaks about the thought process of the

consumer. 6or instance, villages in south !ndia accept technology

quicker than in other parts of india.Thus, +7T sells more winding

watches in the north while they sell more quartB watches in the south.

3) "nfluence of occupation:- The land owners and service can buy

more of category" D category# durables than agricultural laborers.

4) lace of purcase:- %ompany’s need to access the influence of

retailer on both consumers at village shops.

5) %reative use of product:- The study of product and provides

indicators to the company on the need for education and also for new

product ideas.

)1g1:- godre' hair dye being used as a pain to the color horns of o).

Hashing machine being used for making lassie.

6) rand preference and lo!alt!:- the people in rural market will not

give preference for brand products but they give importance for loyalty of the product. 32* of the sale is branded items in product category.

;42 $at are te factors influencing Rural marketing operations<

(NS: - (ll business operations revolve around understanding customer

needs, desires likes and preference and offering products and services that

will give desired satisfaction to the consumers.



9(%T/RS "N9L)N%"N# /R %/NTR"T"N# %/NSM)R

)'(."/R:-

a) Anvironmental

c) %ultural

d) =ocial

e) Iersonal

f) Isychological

a) )nvironmental :-

"1 )conomic factors:-

The agricultural and rural development has

enabled our country to achieve self sufficiency in food

production and we are now e)porting a variety of agricultural

commodities to foreign countries. 6avorable monsoons duringthe last 2 years have let to increase in crop yields and rural

income. !n addition, diversification of a agriculture, development

of village industries, migration of rural people into cities,

remittance of money, family members settled abroad have

increased income level and buying power of villagers.

II. olitical factors:-

The government have taken initiative for

economic development of rural areas and have invested heavily

in agriculture, irrigation, electricity, khadi and village industries

and infra structure facilities such as roads, communication,hospitals, school, and banking. The initiatives certainly let to

rural prosperity and opportunities for the marketers.

III. Tecnological development:-

The rapid e)pansion of telecommunication facilities

and mobile phone has provided opportunities for rural people to

keep in touch with men and markets. evelopment of T$

networks and reasonable channels has enabled the marketers to

pass on message about product and services to rural people. !n

rural areas especially in large villagers and villagers near totowns and cities, children and youth have accused to information

such as 'ob opportunities, national news, weather conditions,

bank loans etc..!T and internet are sure to spread up e)change of

information in rural india though at a slower rate compare to

urban market

!$. Legal :-

The government has come out with legislative

measures to protect the interest of consumers some of the



important ones are:-

a1 Mone! lenders:-

The money lenders advance long term loans against

security of land over period of time manipulate the records and seiBe the

land. The government protects the assets of farmers from money

lenders.

b1 %onsumer protection act:-

%onsumer protection act provides protecting the

rights and interest of consumers and we have a quasi 'udicial machinery

operating at # levels i.e. district forum, state and national forum.

V. %ultural factors:-

a2 %ulture and sub culture :-

%ulture represents an overall heritage a distinctive

form of environmental adaption by whole society of people culture is a

system of shared beliefs and customs that influence the behavior of

consumers. Traditional life, traditional occupation, traditional beliefs arethe features of rural life.

%ulture provides people with a sense of identity and

an acceptable behavior with in a society. Technological advances

education and travel have considerable influence on culture and change

the rural life style. %ulture offers direction and guidance to the members

of a society in all facets of life. !t provides methods of satisfying

physiological, personal and social needs.

b2 Sub culture:-

!t e)ists within the dominant culture, with its own setof values, beliefs and attitudes and behavior pattern. The pattern of

behavior would vary between north and south even in rural areas.

c2 Social class:-

%onsumer behavior is determine by social class to

which they belong and is determine by a combination of factors like

education, occupation, income and assets. !t is seen that over a period of

2years there has been considerable reduction in the per culture of

destitute and increase in other social classes in rural areas. This is a

positive indication of the growing rural market in our country.

."1 Social

factors:-a2

9amil!:-

6amily is a group of persons related by blood, marriage or

adoption who reside together. !t is basic social group and consists of

individual known as members. The #rd

generation family is very

common in rural areas. The head of the family provides economic

security to family members. The members of family play different roles

such as influencer decider and purchaser is the buying process. Iersonal



values, attitudes and buying habits have been shaped by family

influences. 6amily life cycle also influences.

b2 Reference group:-

!t includes family and friends with whom an

individual interacts on a face to face basis. Hord of mouth

communication is a process by which the messages are passed within

group from one member to another member. The consumer develops

positive opinion towards a product or service based on admiration

/cricket players0, aspiration /film stars0 or empathy. The consumer thinks

that if he uses it, it must be good if use it, ! will be like him.

.""1 ersonal factors:-

a2 (ge and life

c!cle:-

4ife cycle of a person began with child birth, move to

infancy, teenage, adult, middle age, old, and then ends with death. Cnder

each stage buying behavior is different.

b2 /ccupation:-1bout (22 millions of population depends upon agriculture

for a living. !ncome from agriculture is a seasonal and therefore demand

particularly consumer durables is high during post harvested period and

festivals. 7any farmers have diversified into fish culture and small scale

industries in order to reduce their dependence on forming and to ensure

regular income. This leads to increase the demand for consumer

durables.

c2 )conomic circumstance:--

Rural income is seasonal compare to an urban consumer

who receives regular income regarding saving habits, traditionally rural people prefer to invest in 'ewelry and fi)ed deposits in banks and posts

offices. 1 farmer would like to invest these funds for development of

agriculture and buying lands. 1nother interesting observation is that for

the same income level, a rural consumer has relatively high disposable

income.

d2 Life st!le:-

4ife style studies how people spend their money and time in

day to day activities. The life style dimensions are activities and

demographic features such as age, gender, occupation, education, and

income. Rural consumes prefer to spend, spare time, in activities. =uch

as visiting meals i.e. commodity and religious fairs, company’s can use

such meeting places for product promotion.

e2 ersonalit! and self concept:-

Iersonality is a unique combination of different

individual characteristics. He find that many individuals are similar in

terms of one or more characteristics, but they are not alike in all

characteristics. Iersonality is a combination of factors such as

sociability, self confidence and dominance. Iersonality influences in

many ways.





the case of rural consumers. nce he is convinced, he will continue to

use the product and become a loyal consumer.

2) 7a'ority of lower and middle income group continue to use lifeboy and

soap and about 2* of the sales of the life boy is in rural and semi urban

areas.



CHAPTER-. RURAL MARKETSEGMENTATION

7arket segmentation means dividing heterogeneous market into homogeneoussub units into homogenous sub units here heterogeneous means consider the

market as a whole and refers mass marketing. +omogeneous sub units means

which have similar tastes and preferences but not the same tastes and

preferences.

Rural market segmentation is mainly based on demographic factors. The

division is based on the premises the different people have different preferences.

The following are the basic market preferences:-

¾ +omogeneous preferences where consumers have roughly the same preferences.

¾ iffused preferences where consumers are scattered throughout the

market by their preferences.

¾ %lustered preferences were consumers are found in distinct preferencegroups.

Degree of segmentation:-

The segmentation is considered as a process with two polar points from Bero

to complete, four distinct segment approaches are identifiable as follows

o.s Pero

Type 7ass marketing =egment @iche 7icro marketingmarketing marketing

1pproach %onsiders all !dentity’s people =erves very few 6ocus on people as a differing groups of individualsas a bunch group people are very small

groups

Mass marketing:-

!n the early period of the "2th

century many companies practiced mass

production and mass distribution as economics evolved as economy evolved andsocieties became civilised, consumer choice and requirements came into focus

until now the rural market was considered as homogeneous mass as worse the

!ndian market till some "2 years ago. =ome companies depend on mass

marketing while many do not.

Segment marketing:-

The principle of segment marketing rests on the realisation that buyer’s differ

in their needs, wants, demands and behaviours. The need for segment marketing





Nice marketing:-

1 niche is very small group with a different set of traits, who seek a special

combination of benefits. @iche marketing identifies special sub groups within

larger segments and offers different products and services.

Micro marketing:-

7icro marketing involves tailoring products and programs to suet the taste of

specific locations and individuals. !t includes local marketing and individual

marketing.

4ocal marketing:- !t involves in the programs to suit the taste of specific

locations and wants of local group’s on a geographical bases.

!ndividual marketing:- !ndividual market is customiBed marketing or one

to one marketing. Tailoring unitshotels, tourist operators provide

individualised services for e)ample building contractors builds houses of flats to specific requirements of customers.

T!pes of rural market segmentation:-

Demograpic factors:-

emographic factors are taken into detailed consideration for market

segmentation of consumer goods and fast moving consumer goods /67%80. !n

case of rural marketing i.e. to sell outside goods in rural areas, demography

came into the picture. +owever the categories are much reduced. =ome of the

segmentations are as below.

/ccupational segmentation=or2sociological segmentation:-

This segmentation is based on economy vice categorisation. This reflects the

purchasing power of a farmer and therefore the purchase power of his family

they are

¾ 1rtisans, farm labourers

¾ =mall farmers

¾ Tenant farmers¾ 7edium level farmers

¾ 4arge farmers

¾ $ery large farmers, Bamindars

1rtisans and others

This covers carpenters, blacksmiths, handy-crafts, people are unemployed.

Tenant farmers



Horking on rented land to share the crops with owners of the land.







L"N;)ST

This method is software developed by initiative media on data along

the following parameters

¾ emographic¾ 1griculture

¾ !ncome.

¾ 4iteracy D

¾ %ivic amends.

1s per the product to be launched, the marketer would be interested in

certain parameters like literacy levels, income levels, bank deposits,

accessibility /rail, road, and schools etc0. in the software the marketer can give

weighted average to different factors for Ag:- To launch new audio cassette

recorders, parameters could be villages above 222 population and monthlyincome "222 and distance from nearest towns within #2kms.



CHAPTE! 4" PO#C$T%TETE&'

R/D%T STR)T)#> 9/R RR(L M(R?)TS 01 Small nit ackaging

=mall packs are preferred due to the following reasons:

1. =mall packs help the rural consumer to pick the product at affordable price.

2. !ndividual use products like shampooO toilet soaps, etc. are bought insmaller siBe.

3. =mall packs are easy to display and they increase the visual appeal.

4. =mall packs are convenient to retailer to do his business.

Example:

1. %avin Jare introduced shampoo in & ml sachets at 2.(2 paise.

2. Rasna is now available in sachet at Re.

3. Ionds introduced "2 gm talcum powder

4. Tiger biscuit is available in four biscuits pack at Re.

31 Ne$ roduct Design

The products are designed as per the rural lifestyle.

Example:

1. I$% shoes and chappals are designed to work in adverse conditions.2. 48 electronics launched >=ampoorna? T$ that can withstand power

fluctuations.

3. Ihilips introduced small refrigerators especially for rural consumers.

41 Sturd! roducts

=turdiness of a product is an important factor for rural consumers. The ruralconsumers believe that heavier the, higher he power and durability.

Example:

1. ;ullet motorcycle is popular in village due to its ruggedness.

2. Ascorts has positioned their motorcycle >Ra'doot? as a tough vehicle.

3. Rural consumer prefer dry battery cell, which are heavy.

51 tilit! /riented roducts

Rural consumers are more concerned with the utility of the product and itsappearance.

Example:



1. Ihilips introduced low cost radio >;ahadur? with only medium wavereceiver, which was failed and fund that rural consumer purchaseradio not only for news but also for entertainment.

61 rand Name

Rural consumers are more brand loyalists than urban consumer. The brandname should instantly be understood by the rural consumers. Ruralconsumers are unfamiliar with Anglish and absurd names. 7ore preferablyrural brand is a symbol, logo or color.

Example:

1. Averyday battery with a cat symbol < rural consumers remember it asQbilli wali battery’.

2. 4ifebuoy soap < rural consumers remember it as Qlal saboon’

3. 7ahindra tractor’s brand Q;humiputra’

4. =logan of Red 4abel Tea >'iyo mere lal? proved very effective to promote sale.

DL"%(T) (ND %/NT)R9)"T R/D%TS "N RR(L

M(R?)T

=purious products are the copy of established brand name at a cost of few

thousand rupees and sold it in the rural market. This duplication takes place

in all sectors and especially in 67%8, food items and medicines.

%ounterfeiting is a kind of duplication where the fake products bear the

identical name of the original product, its packaging, graphics, color pattern,

design and even same name and address as the genuine manufacturer. 1

pass-off product is one that comes with a few minor changes from the

original product. The slight changes are made to avoid legal problems.

Example:

+ead and =hower < +ead and =houlder

Iantane < Iantene

=unmilk < =unsilk

4ifebuoy < 4oveboy

%limik Ilus < %linic Ilus

Iarla 8 < Iarle 8

$ikas < $icks

CHAPTE 5" P(C()& %TATE&' R"%"N#

01 Lo$ %ost roducts

Rural customer is price conscious manly because of low income. The pricecan be kept low, by low unit packaging. This is a common strategy adopted





1. iscriminatory Iricing < charging different customer groupsdifferently.

2. =kimming pricing < %harging high prices at initial level, A.g. ID8launched Tide detergent at high price and then reduced it lower thanother brands.

1. Value Conscious Customers < They are of middle class and aremainly concerned with functional benefits and value for money

Iricing 7ethods:

1. Ienetration Iricing < %harging low prices at initial level thenincreasing gradually when brand name has been established. A.g.7aggie noodles, $icks, Rin detergent.

2. $alue Iricing < =etting the price reasonably lower than thecompetitor’s price.

1. rice Conscious Customers < They are climbers, aspirants anddestitutes. They watch for promotional offers and purchase cheap or

fake products.Iricing 7ethods:

1. Isychological Iricing < Isychological pricing is one that ends in anodd number e.g. Rs. EE.E(. !t conveys two notions to consumer thatthere is a discount or bargain and it belongs to lower price category.

2. Iromotional Iricing < !t includes mini packs, price-off, specialdiscounts, credit facilities etc.

CHAPTE" 6 POMOT(O)A*%TATE&(E%

;ualities ReBuired for a Rural Sales erson

1. !no"ledge of local language

2. #illingness to get located in villages

3. Cultural Congruence: Rural salesman must have properacquaintance with the cultural pattern of rural life.

4. $ttitudes: Rural salesman must have patience as their customers aretraditional and conscious, it will not be possible to clinch the salesquickly. +e may have to spend lot of time with customer and makeseveral visits to gain favourable response.



5. Capacity to handle number of products lines: Rural salesmanusually does not generate economic value of business if he handlesfew products. +e is required to handle much large number of products lines as compared to urban salesman.

6. %reater Creativity: Rural marketing involves greater creativity. !f the product is very new in the rural conte)t, +e has to introduce it using

consumption pioneers and opinion leaders.

(LT)RN(T".) M)D"( 9/R RR(L %/MMN"%(T"/N

(C 9ormal /rganised Media

1. &e"spapers and 'aga(ines: 4ocal language newspapers andmagaBines are popular among educated rural families. A.g. inaThanthi in Tamilnadu, Iun'ab Jesri in @orth and 4oksatta in7aharashtra.

2. )V: 1bout * of villages receive T$ transmission and "* of rural people actually watch T$. Regional channel is very popular like =C@T$ in Tamilnadu and 1sianet in Jerala.

3. Cinema: 1bout "E* of rural people watch cinema as regularlifestyle. =hort feature films with advertisement message, 1d-filmsand documentaries that combine knowledge and advertisement areuseful for rural communication.

4. Radio: !t is a well-established medium in rural areas. Radio reacheslarge rural population at low cost.

5. * oint +f urchase: Ioint of purchase or point of sale is popular promotional tool used in rural market. IIs should be especiallydesigned to suit rural requirements. IIs. %olors, symbols and

pictures should be used more than the written words.6. +utdoors: utdoors such as hoardings, wall paintings, illuminations

and other displays are also now being used for rural communication.

C Rural Specific Media

1. 'usic Records: !t is an ine)pensive medium. n complete languagegroup can be reached on a low budget through cassettes that can be played in the place where rural people gathered.

2. *uppetry: Iuppetry is the indigenous theatre of !ndiaO it has beenmot popular form of entertainment available to the village people.The performer uses puppets as a medium to communicate, ideas,

values and social messages. A)ample:1. =ounds and drama division of the government of !ndia used

puppets to promote various government pro'ects.

2. 4!% used puppets to educate rural masses about Q'eevan beema’ in 4ucknow.

Types of Iuppet Theatre in !ndia

=tates T!pe of uppet %ontent

Ra'asthan Jathputli Irithvi Ra' %hauhan, 1mar =ingh



Rathod

rissa =tring Iuppet Radha Jrishna

;engal Rod Iuppet 7ahabharat, Radha Jrishna

%hennai D 1ndhra Iradesh =tringNRod Iuppet 4athakali

rissa, Jerala, Jarnataka =hadow Iuppet Ramayana

1. ,olk )heater: 6olk theatre is mainly short and rhythmic in form. !thas been used as an effective medium for social protest againstin'ustice and e)ploitation.

2. Interpersonal 'edia: !n many cases, rural people prefer face-to-facecommunication than mass communication. 1 firm can contact withaudience through fairs D festivals, folk, etc.

3. %roup 'eeting: !t is a component of interpersonal media. =alesmancan effectively convey the product message at these meetings.emonstration of products can also be carried out.

4. -ouse.to.-ouse Campaign: !n these campaigns, promotional staffmakes house-to-house visits in rural areas. This is different fromdoor-to-door selling campaigns. Iromotion staff does not sell the products, they only propagate the products.

5. *,ield Demonstrations:

6. *$V Vans: 1$ van is a comprehensive mobile promotion station. Thevan can be used for sales campaign in addition to promotioncampaigns. 1$ van e)hibits films, audiovisual presentations, slideshows etc. !t is very popular with rural marketing firms particularlyagro business firms. 1$ van is very effective tool in ruralcommunication but its cost is very high as the target population is

very high.

7. */yndicated $V Vans: !t is an 1$ van publicity service provided bythe independent agencies. 6irms, which cannot afford to have theirown publicity van, can utilise the syndicate van services.

8. /talls0 -aats0 'eals: These are useful media of rural communicationto spread the message and to induce brand trials.

9. #all aintings: The speech or the film comes to an end but the paintings stay as long as whether allows it to stay. The retailer usually paints its shops wall and name board which acts as a status symbol

10. 1se of Logos and /ymbols: !lliterate villagers would remember brands only by picture, symbols more than the name.

11. 1se of Information )echnology: !T% developed a web portal inregional languages to provide information to the farmers about the products and services which they need in order to enhance farm productivity, information on whether, scientific practices, market prices etc.

12. ,ocus on Reference %roups: They are the opinion leaders and arethe key persons of the village e.g. =ir Iunch, 8ram =evak, Teachers,



octors etc. These people should be taken into consideration whilechalking the rural communication.

%onstraints in Rural %ommunication

1. Lo" Literacy Rate: ue to low literacy level, the written words havelimited use in rural communication.

2. Lo" /pending Capacity: ue to low disposable income, they cannot buy radio D T$

3. 2oint ,amilies and /trong !inship )ies: Rural people live in 'ointfamilies where females depend on their males for informationregarding various products. =o it becomes difficult to reach femaleconsumers directly.

4. Linguistic and /ocio.cultural Differences: @umber of languagesand different cultural and social norms creating problems formarketers in designing the messages, as mass media in one particularlanguage doesn’t work for entire rural population.

5. 1ni3ue 'edia -abits: 7edia habits of villagers are such that thenewspapers are found mostly at groceries shop, tea stall etc.7agaBines are not read at all. The household press subscription isalmost absent.

6. /ituation 4ased Leisure )ime $ctivities: 6armers has to work duringnighttime and odd hours also. !t is difficult to find the leisure time for communication.

7. 5xpensive Communication: 6or rural communication to be effective,repeat e)posure is a must otherwise the message loss its effect duringgap periods. This makes rural communication more e)pensive.

8. oor Infrastructure: ue to the lack of roads and telecom facilitiesreaching rural audience is very difficult. T$ viewer-ship is affected by uncertain supply of electricity.

9. Lack of Research Data: ecisions regarding messages and mediami) for rural communication depends only on sales force anddistributors, which is insufficient.

10. /elective $ttention: Rural people select the messages that are have intheir interest and ignore others.





2. #arehousing roblems: (from Constraints in Rural Marketing)

3. Communication roblems: (from Constraints in Rural Marketing)

4. &on.$vailability of Dealers: (from Constraints in Rural Marketing)

5. %reater Dependence on Dealers: =cope of manufacturers directoutlets in rural market is limitedO it is e)pensive as well as

unmanageable. Thus firms have to depend on large network ofintermediaries, controlling of which is a difficult task.

6. -igher Cost and $dministrative roblems: istribution chain in therural conte)t requires large number of tires including village levelshopkeeper, mandi level distributor and wholesaler in town. =uchmultiple tiers and scattered outfits increase the costs and makechannel management difficult.

7. oor Viability of Retail +utlets: Retail outlets suffer from poorviability because the business volume is not adequate enough tosustain the profitability.

RR(L R)T("L)R )'(."/R 1. /easonal attern: There is particular seasonal pattern in stock

holding of rural retailer. uring the harvest he stocks variety ofconsumer goods, because the main buying season in rural areas isduring harvest.

2. )ransfer of Capital: Hhen the harvest is over and cash is realiBed,the retailers invest in inventories for his shop.

3. Credit attern: %redits offered to consumers by retailers is differentfrom area to area. @ormally consumers have a running credit with a part of outstanding is paid every month and the balance is paid during

the harvest.4. urchasing Cycle: !n high turnover feeder villages, the retailers

make purchases # to & times a week from urban wholesaler. !n othervillages they buy once a week or fortnightly.

Multiplier )ffect of Rural Demand

nce a product gains acceptance in rural markets, the rural retailer put thisitem on his shopping list when visiting the wholesaler in the nearby town.This action by the rural retailer starts a chain reaction with the urbanwholesalerO once the urban wholesaler knows that for such a product a ruraldemand is possible, he will start stocking this product and will recommend

and push this product to other rural retailers. These rural retailers will in turn,sell to smaller retailers of smaller villages. !n this way a multiplier effectcreate in rural demand.



CHAPTER - 0RANDING

;randing is a practise of giving specified name the specified name createsindividuality in the product and it can be easily recognised from rival product

the term brand is broadly applied to all identifying such as trade names,

trademarks trade symbols etcM e.g.:- pepsi, lifeboy are brand names it is

recognisable by sight but he’s not normally pronounceable.

The rural consumer likes to stick to brands that give value for money

"mportance of branding

1. ;randed product can be easily recognised by the customer in the retail

shop it offers protection to the consumer as it identifies the firm behindthe product.

2. ;randing enables the firm assured control over market. !t creates an

e)clusive market for the product.

3. !f a firm has one or more lines of branded goods it can had a new item to

its list easily D the new item can en'oy all the advantages of branding

immediately.

%aracteristic of branding

1ttributes Dbenefits:-

;rands of a product plays an important role to attract the rural customers

because they mostly believe in the brands, 'ust by seeing branded products they

will purchase assuming that they will be satisfied by product.

$alues :-

;y seeing the brand the customers will consider the performance of the

product and the safety of the product some customers felt that prestige while

purchasing the branded products.



%ulture:-

;y seeing the brand the customer assumes the product is efficient and they

also assumes high quality.

Iersonality:-

The person who is using that product



T!pes of brands

01 "ndividual brand name

Aach product has a special and unique brand name the manufacturer

has to promote each individual brand in the market separately this

creates a practical difficulty in promotion otherwise it is best marketingstrategy eg:- surf, cinthol, chik shampoo etcM.

31 9amil! brand name

6amily name is limited to one line of a product i.e. products which

complete same cycles family brand name can help combined advertising

and sales promotion however if one member of the family brand is

re'ected by the consumers or customers the prestige of all under the

family brand may be adversely affected. The manufacturers have to take

e)traordinary care to guard against the danger family brand name

enables creation of strong shelf. !t helps to secure quick popularity it is

preferable to have separate brands for each product for eg:-amul for milk products, pounds for cosmetics etcM

41 mbrella brand name

He may all products such as chemicals, engineering goods,

automobiles etc. 7anufactured by the Tata concerns will have the Tata

as one umbrella brand such a device will also obtain low promotion cost

and minimise however e)perience in any of the line of products, a

solitary failure may be very dangerous to the rest of the products sold by

a particular business house under umbrella brand.

51 %ombination device

ata house is using combination device each product has individualname to indicate the business house producing the product eg:- Tata

!ndica, side by side with the product image we have the image of the

organisation also many companies use this device profitably.

61 rivate or middlemans brand

;randing can be done by manufacturers or distributors such as

wholesalers, large retailers. !n !ndia this practise is popular in the

wooden, sport goods and searches other industries it helps small

manufacturers who have to rely on the middlemen for marketing. !t is

also used by big manufacturers the manufacturer merely produce goods

as per specifications and requirements of distributors and he need notworry about marketing. 7anufacturers make both national and private

or middleman brands. %onsumers of the private or dealers brand.





local culture for easier acceptance and reach to the customers. ;esides mass and

outdoor media rural







an opportunity for these companies. 1ccording to one study the penetrationlevel of consumer product is very less in rural areas. %ompanies shouldtake this as a marketing opportunity. 6or e)ample, only three out of 2

people in rural areas of !ndia use toothpaste or talcum powderO or shampooand skin care productsO and only si) use washing powder. Aven incategories with high penetration, such as soaps, consumption is one per

five bathing occasions. Till EEE, +44 was able to reach # million villagehouseholds. To succeed in !ndia, consumer goods companies will need toeffectively market to the large and currently under penetrated rural

population.

The !ndian rural market with its vast siBe and demand base, offers ahuge opportunity that companies cannot afford to ignore. Hith "3 millionhouseholds, the rural population is nearly three times the urban. 1s a result of the growing affluence, fuelled by successive good monsoons and the increasein agricultural output to "22 mmillion tonnes in EE, rural !ndia has a large consuming base with & per centof !ndia’s middle-class and (3 per cent of the total disposable income. Theimportance of the rural market for some 67%8 and durable marketers isunderlined by the fact that the rural market accounts for close to 2 per cent of toilet-soap users and #3 per cent of all two-wheelers purchased.

ne third of the premium lu)ury goods are now sold in the ruralmarket. Two thirds of the middle-income households are now in the ruralmarket. 1ccording to one study, if the rural income in !ndia goes up by *,there would be a corresponding increase of about Rs. 2,222 crores in the

buying power.

.(L) );(T"/N

Ierceived value S %ore benefit delivered by the product

Iroduct price

1s per above equation the companies can increase value by twomethods< one by increasing the product benefit and charging some premiumon price, but it is observed that particularly in urban market as the competitionis intense customers can switch to alternative cheap products that will affectthe margins. 7any companies now-a-days are adopting second strategy i.e.cutting down the product prices, the question of volume can be solved bytargeting the rural market where the product penetration is very low. =o in thelong run the margin of the product may be affected but that can becompensated by

)"N# "NN/.(T".) 9/R 9(ST)R )N)TR(T"/N

Though rural market growth rate is high and backed by low level of product penetration, yet the companies have to adopt innovative marketing



strategies for faster market penetration. =econdly, as the rural customers aredifferent in their behaviour than their urban counterpart, companies have toadopt innovative strategies. %ompanies who adopted same strategies asadopted in the urban market, miserably failed in the rural market.

%+1R1%TAR!=T!%= 6 !@!1@ RCR14 71RJAT: !@!1’=%@=C7!@8

%41==

Astimated households =tructure of the !ndian consumer market

by annual income /EE(-E0

1nnual 1nnual @umber of

income @o. of income households /in

/in Rs.0 at households /in Rs.0 at %lassification million0

EE&-E( /in million0 EE&-E(Crban Rural Total

prices prices

"(,222 32. ,222 estitute (.# ". ##.2

"(,22-(2.&

,22-1spirants . #.E &&.2

(2,222 "",222

(2,22-E.

"",22-%limbers .3 #.# (&.

,222 &(,222



,22-3."

&(,22-%onsumers . (.E #".(

2,222 "(,222

U(.3

UThe rich 2.3 2.& ."

2,222 "(,222

Total no.of

households: &.E

Total no.ofhouseholds &. 3." &.3

million

=ource: @ational council of applied Aconomic Research /@%1AR0. The above presentation has been slightly modified by indiaonestop.com

The @%1AR study also highlights that the key to growth lies in therural areas, where over 2* of !ndians live. The chart above indicates thatrural >consumers? and >climbers? together, make up over 2* of totalhouseholds in !ndia. The rise of the rural market in !ndia has been the mostimportant marketing phenomenon of the nineties, providing volume growth toall leading consumer goods companies. +igher rural incomes driven byagricultural growth, increasing enrolment in primary education, and high

penetration of television and other mass media, have induced the propensity toconsume branded and value-added products in rural areas.

"NN/.(T".) M(R?)T"N# STR(T)#")S 9/R RR(L

M(R?)T"N#

=trategic marketing decision /Hhat to doV0

01 Strategies regarding product positioning: Iroduct positioning plays a very crucial role. 7arketer has to position their products after understanding the unique characteristics of the rural market environment in

!ndia. These are broadly as follows:

• 4ow per capita income

• 4ack of formal retail and distribution network

• Relative cheapness of labour

• Iositioning involves three tasks-





%olgate’s 2 gm sachets of toothpaste were designed keeping the rural consumer inmind.

• !A designed a low cost manual pump, branded J; /Jrishna ;antu0 priced at

'ust about Rs. &22 to Rs. (22 as against a minimum of Rs. #222 for adieselNelectric pump. !t is for up to an acre of irrigation need of marginal or even small farmer.

R/D%T S)#M)NT(T"/N (ND T(R#)T"N#

Right segmentation and targeting policies are key to success in rural market.=egmentation can be done with one or more variables viB., demographic, geographic, psychographic and behavioral.

A. 8eographic: 1s the rural market is spread over a large area companies candivided the market area into small sectors having some geographic similarityto consolidate their distribution network.

B. emographic: 7arket can be divided on the basis of income, education,lifestyle, gender, marital status, family siBe, occupation and religion. ue tounequal distribution of income, the !ndian market for detergents is structurallyshown like a pyramid /from base to top-laundry soap, low price detergent mid priced detergent and premium powders0 +44 has wheel as a laundry soap, bluewheel power and international wheel active power at the base, Rin =hakti powder and bar, =unlight powder and =uper (2 bar at mid-price level andinternational surf e)cel at the top end.

C. Isychographic: 7arket is divided into different segments like social class, life

style and personality. A.g. in some parts of 8u'arat it is reported that farmersare smaller, typically "( hp to #2 hp ones. The reason, on further investigationwas the compulsion to >keep up with the neighbours?.

D. ;ehavioural: 6ollowing factors play important role to segment the marketOoccasions, benefit sought, user status, usage rate, loyalty status, place and product possession category.

"NN/.(T".) M(R?)T"N# STR(T)#"% D)%"S"/N ='/E T/ D/<2

01 roduct

Iroduct plays an important role in strategic marketing decisions. Iroductinnovation is in fact key to success in rural market, developing indigenous productsthat cater to the needs of rural consumers who demand quality products at anaffordable cost. This requires substantial R D and marketing research to better understand consumer behaviour and preference.

%ase of marketing of sampoo in rural areas1 +air products were introducedto rural !ndia in an attempt to capitaliBe on a culture where women take hair grooming









consumers to get access to credit. 1 few companies, however, proved it wrong. Hay back in E"2s, +enry ford increased the wages of his employees to increase the salesof his 6ord cars and he was successful.

+industan 4ever 4td. /+440 the !ndian subsidiary of unilever has started a programme targeting villages with a population of less than "222. Cnder the program,the company provides self employment opportunities to villagers through =elf-+elp

groups /=+8s0. =+8s operate like direct to home distributors wherein groups of (-"2villagers who are below the poverty line /Rs. (20 are provided with an opportunity totake micro-credit from banks. Hith the help of this money, villagers are able to buy+44’s products and sell them to other villagers, thereby generating employment andincome for themselves and also increasing the reach of +44’s products.

8enerally, the poor have difficulty in getting access to commercial credit, asthe traditional banking system does not normally lend money without collateralsecurity. +owever, some institutions, like the 8rameen ;ank in ;angladesh, arehelping the poor to access money through innovative solutions such as micro lending.!n the 8rameen ;ank model, one group of rural women took out a loan for as little as

[ "( to start a business. nly when she repaid could the ne)t woman in the group borrow.

The success of 8rameen ;ank has helped to spread the idea of micro-lendingthroughout the world. !n ;angladesh alone, there are now around 2 million peoplewho have taken the help of micro-finance to start business. !t is now planning toreplicate the success in rural !ndia. The success of 8rameen ;ank had also led to itsoffshoot, 8rameen Ihone, a provider of village phone service. 1s mentioned in thearticle serving the Horld’s Ioor, Irofitably by Irahalad %. J. and +ammond 1llen,under the 8rameen Ihone, a single entrepreneur in a village borrows money from8rameen ;ank to buy a mobile phone /8=7 standard0, which is being used by the

entire village generating an average monthly revenue of around [E2 for theentrepreneur.

41 lace

Lack of formal sales and distribution net$ork: eveloping the distributionnetwork in the rural market is not an easy task, due to low per capita incomecompounded by the need to maintain low operating costs. !n a rural market formalsales and distribution networks are largely non-e)istent and difficult to obtain withoutsubstantial capital or local guidance unlike developed market where large retaildistribution chains are commonplace. This poses a tremendous challenge to consumer

goods companies, which have traditionally used large retailers as their primary channelof distribution. Retail chains have not flourished in rural areas of !ndia becauseeconomies of scale do not e)ist. Rural consumers live in small homes with littlestorage space, lack refrigeration and do not own vehicles. 1s a result, daily purchasesat the neighbourhood store are frequently preferred by consumers and may be the onlyavenue to buy goods in smaller rural towns.

To compete successfully with incumbents, new consumer goods companies areforced to build an e)tensive distribution network to reach !ndia’s rural population. Thisdistribution network relies first, on gaining shelf space in the small independently



owned stores that drive the ma'ority of retail sales and then on establishing arelationship with wholesalers and distributors to further e)pand the distributionnetwork.

@otwithstanding the direct sales force and working capital costs, somecompanies have succeeded in building a distribution network, and in doing so, created

a substantial barrier to entry. +industan 4ever boasts a network that reaches 322,222stores directly and relies on wholesalers and distributors to reach another #.( million.

ther foreign companies have overcome the sales and distribution obstacles byentering into 'oint ventures with local partners. This was an important motivation behind Irocter D 8amble’s decision to collaborate with the 8odre' group in the earlyEE2s. Irocter D 8amble was able to immediately tap a well established sales anddistribution network rather than spending time and money to go it alone.

Retailer o$er: Hhile independent retailers are a fragmented group, theyhave a substantial amount of power in driving consumer purchases, particularly in

rural areas. 7ost rural stores are cramped, providing little opportunity for consumersto browse. The consumer interacts directly with the retail salesperson /usually theowner0 and services often include informal lines of credit and home delivery inaddition to personal opinions on goods. !n rural areas, retailers tend to carry only asingle brand in a product category. !n such a retailing environment, being first on theshelf and developing a privileged relationship with the retailer is e)tremely importantand a competitive advantage to consumer goods companies.

Relative cheapness of labour: The low cost of labour in rural areas hasimplications on the consumer goods industry. Cnlike developed markets where it has been cost-efficient to replace human labour with machines, labour intensive

manufacturing and distribution remains economical in rural areas. 1 soft drink vendingmachine, which is used e)tensively in urban market, may not be much effective inrural area as the cost of supplying and maintaining an ending machine probablyoutweigh the cost of employing the salespeople. =econdly it also generates the muchneeded employment for rural population and results into increase in purchasing power of the community as a whole.

The low cost of labour also e)plains the difficulty large chain retailers have hadin implementing their developed market strategy of replacing human labour withcapital in !ndia. =cale economies are difficult to achieve with the higher capital costand often result in higher priced goods than the local owner-operated shops. 6or

consumer goods companies, independently owned stores in towns and villages will bethe primary form of distribution, at least for the near future.

Improving access

7any consumers in Tier & are in locations that make distribution e)tremelydifficult. To make sure that the consumers in the tire & segment have access to the products, the distribution system followed by the companies should be different fromthat of their e)isting systems. 4ack of motor able roads in !ndia makes the distribution





"nnovative advertising programs: %onsumer good companies cannot rely onconventional advertising techniquesO particularly in !ndia’s rural areas where only onein every three households owns a television set and more than half of all villagers areilliterate. !nstead, companies need to turn to more innovative methods of advertising toreach their potential customer base.

!n this kind of a scenario some companies are using consumer video vans,which carry infomercials to rural villages. 1 marketer invites people to the van to viewthe infomercial, which incorporates the new product into an aspect of daily life. These potential customers are subsequently given a demonstration of the product, for e)ample, toothpaste and toothbrush, and then provided free samples. The van returnsthe following month to reinforce the sales pitch and to make sales.

1nother strategy consumer goods companies have used to reach the ruralmass-market is to market at large festivals. 6ew years ago, many companiescongregated at the 8anges River for the Jumbh 7ela festival where appro)imately #2million people were e)pected to attend over the span of a month. %ompanies provided

>touch and fell? demonstrations and free sample for consumers, the ma'ority of whichwere from rural areas. %olgate-Ialmolive distributed free tubes of herbal toothpaste atthe festival to villagers who traditionally used a neem tree branch to clean their teeth.+industan 4ever marketed its 4ifebuoy soap and handed out glasses of ;rooke ;ondtea. This marketing strategy proved to be e)tremely effective in advertising to themass rural market.

!n many villages, people might not see ads that appear in newspapers or on T$.=o dealers drive vans filled with products from village to village, and set up stands atweekly town markets. thers equip their cars with loudspeakers and cruise throughlarger towns, toutin their products and stores. Ihilips also looked for new ways to

e)tend its reach into every nook and corner of !ndia, driving its distributors to locate aslew of new retailers to carry their products, including scores of one-stop shops in tinyhamlets like abli, a village of terraced fruit and vegetable farms cut into the mountainalong the =himla highway in +imachal Iradesh, set in the foot hills of the +imalayas.

Role of a leader 8'ukhia9

The local or a group leader plays a crucial role in the promotion of a product because these leaders act as an opinion builder or act as a role model for them. +erewe want to quote an interesting e)ample:

1 team of +yundai car salesmen takes his van into a tiny town’s dusty primaryschool, and turns it into a temporary car dealership. Hhile a group of village mendressed in turbans and loose kurta pa'amas gathers around a big television set in the back of the van to watch +yundai advertisements, the chief sales rep talks with villageheadman, the +yundai folks were here the previous night, giving a local communityhead an e)clusive test drive and arranging this village visit.

1 village headman is an opinion leader, whose advice is sought on everythingfrom marriages to crops. !n the past few years, villagers have started to ask what T$set or car to buy, too. 6our years ago, there were 'ust ( T$ sets in this villageO now,



there are (2, he says. 6our people even have mobile phones. >!f ! tell them ! like a particular brand, they’ll go out and get it?.

/haping aspirations

1s already mentioned, the consumers at the bottom of the pyramid are mostly

uneducated and illiterateO the companies need to spend time and resources to educatethe consumers.

+44, under its QIro'ect ;harat’, visits villages where company salesrepresentatives e)plain to the rural people the benefits of +44’s products with the helpof video shows. This creates awareness of +44’s product categories and addresses theissues of attitude and habits of the rural people.

!n "22", !T%, one of !ndia’s largest consumer product and agri-businesscompanies, launched QIro'ect =ymphony’, under which e-choupals are launched invillages in some !ndian states. Through these e-coupals, farmers could use computers

and access the internet to conduct their business. @ormally, the illiterate and gullibleagri-farmers in !ndia are also forced to sell their produce at low prices to the traders,who act as middlemen and cite the reasons of poor quality or weak demand for low price. The farmers also face the problems of small regional markets and no standardgrading systems for their produce. The lack of storage, handling and transport facilitiesaggravates the situation resulting in huge wastage /3-*0 and low processing yields.Hith e-choupals, farmers access the daily market prices of their crops in addition toinformation on best practices in farming and weather forecasts. The farmers then selltheir produce at collection centers taken on lease by !T%, at a higher price than theyused to get before and at the same time, the transaction costs involved in selling farm produce are also reduced.

61 eople: =Role of >out2

!t is a fact that unlike a few years ago, the rural youth today are playing a far more significant role in influencing the purchases of radios, television /black andwhite as well as colour0. Ienetration levels of consumer durables in the rural sector

have risen dramatically in the last decade or so. !t is observed that rural women are outof the closet completelyMbut unlike ten years ago /when she had probably aninsignificant or no role to play0 today, she is e)ercising her choice in select categories-the choice of brands may still be with the males of the household. ;ut yes, in thisconte)t the youth have certainly begun to play a role in selecting a brand in certain product categories.

+ere it is often observed that there is a tendency to follow the trends of nearestmetro. ust like so many youth in 7umbai aspire to be in C.=.1., the rural youth aspireto be in 7umbai, %hennai or %alcutta and so on. This is like a yardstick- the city plays





Documents

3. Ruralmarketing Reading Material