CBE -batch(A) - rural marketing (1)

8/7/2019 CBE -batch(A) - rural marketing (1)

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Rural Market & IndianRural Market & Indian

EconomyEconomyMarketing Channels

Business modelsCapturing the left out areas


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What is rural market ?What is rural market ?

Difference b/w rural an urban market ?


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The concept ofRural Marketing in India

Economy has always played an influential role inthe lives of people. In India, leaving out a fewmetropolitan cities, all the districts and industrialtownships are connected with rural markets.

The rural market in India is not a separate entity initself and it is highly influenced by the sociologicaland behavioural factors operating in the country.

The rural population in India accounts for around627 million, which is exactly 74.3 percent of thetotal population.


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Rural Marketing in India Economy covers two broadsections, namely: -

Selling of agricultural items in the urban areas Selling of manufactured products in the ruralregions.

Scope :

The rural market in India is vast and scattered andoffers a plethora of opportunities in comparison to

the urban sector.

The social status of the rural regions is precariousas the income level and literacy is extremely lowalong with the range of traditional values


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The steps taken by the Government of India toinitiate -

Proper irrigation

Infrastructural developments

Prevention of flood

Grants for fertilizers

Various schemes to cut down the poverty


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FMCGFMCG


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Income wise distribution

India is now seeing a dramatic shift towardsprosperity in rural households.

NCAER projections, by 2009 10, the lowest

income class (i.e.Rs.2500 and below) will shrink bymore than 60%

National Council of Applied Economics and Research


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What is rural market comprises of :-

Growth Market


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Effectiveness of communication

A rural consumer is brand loyal and understands

symbols better.

The rural audience has matured enough tounderstand the communication developed for the

urban markets.

Television has been a major effectivecommunication system for rural mass.

Advertisements touching the emotions of the ruralfolks, it is argued, could drive a quantum jumpin sales.


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Challenges :

The biggest mistake a FMCG company can makewhile entering the rural India is to treat it as anextension to the existing urban market.

The rural Indian consumer is economically, socially,

and psychographically different from his urbancounterpart

The kind of choices that an urban customer takes

for granted is different from the choices availableto the rural counterparts.

Low disposable incomes


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Case of COSMOSCase of COSMOS


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Cosmos Ignite has developed cheapest solar chargedlamps.

Gives 50 times brighter light than a kerosene lamp

y and can also provide power for water purification,

y radios, mobile phones and even fans and insect

y

exterminators.

Plan to market these lamps to rural poor of India.


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If market channel can help achieveIf market channel can help achieveits goals??its goals??


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Factors Affecting Market ChannelFactors Affecting Market Channel

y

Customer Financingy BUSINESS STRATEGY:- Segmentation of Rural

India on the basis of access to electricity, incomelevels and geographical locations.

y MARKETING STRATEGY:- Target Higher disposable

income. Product

Price

Promotion

Place


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y COMPETITIVE STRATEGY

Framework to assess marketing channels Sales via microfinance institutions

Sales via mobile handset distribution channel

Sales via Mobile network operators Distribution

channel Small independent networks

Direct Sales to large donor organizations, CSR,Governments to support the poorest

Direct sales to smaller (donor) organizations

Regarding location


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TelecomTelecom

Rural Telecom Poised for Explosive Growth


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OpportunitiesOpportunities

y Disposable income in rural areas areincreasing.

y With the increase in agricultural incomeand improving standards Indian Ruralmarket is becoming a large untappedmarket.


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y It is expected that of the next 250 million

Indian wireless users, approximately 100

million (40 percent) will be from rural areas.

y Operators have demonstrated they achievedprofitability in spite of Average Revenue Per User

(ARPU) of less than $6 per month by reducingfixed costs.

y Operators are driving down the handset costs to

aid access in rural areas.


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BangladeshBangladesh GrameenGrameen PhonePhone

y Use of GSM Technologies.

y Effective use of the Microfinance network

for promoting Grameen Phone.y Significant subsidy being given to the

service


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PhilippinesPhilippines Smart CommunicationsSmart Communications

y Use of Innovative over the air paymentsystem to overcome the availabilityproblems

y Developed smaller options of recharge

y Use of used handsets reduced barriers toownership.

Documents

CBE -batch(A) - rural marketing (1)