Rural and Urbanmarketing Comparetive Analysis

8/13/2019 Rural and Urbanmarketing Comparetive Analysis

1/19

RURAL AND URBAN MARKETING

COMPARATIVE ANALYSIS

By Aashish Soni And Trupti Kambli


2/19

Definition Of Markets

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 achievesorganizational objectives.

Urban Marketing-

Urban is fully integrated firm which present comprehensive level of

services, offering pre- development guiding , branding , marketing and the most

effective sales agents in the area.


3/19

Difference Between Rural And Urban

Population

Standards of living

Wide economic gap

New product awareness

EducationElectrified

Channel of communication

Channel of distribution


4/19

The Rural And Urban Consumer

A Detailed Profile

Size of Rural and urban Consumer Group

Rural population is about 73% and urban population is 27% of the

total population of India

A Scattered market the comparison below shows the same* Urban Population is spread over 3,200 cities

* Rural population is spread across 5,70,000 villages


5/19

MARKET PROCESS

URBAN RURAL

RURAL

RURALRURAL

URBAN

URBAN URBAN


6/19

Reasons For Selecting Market

Rural Marketing-

Size of the market

Largely Untapped

Income on the rise/disposable income

Income from other than agriculture

Income flow from urban /abroad

Great success stories of some famous companies-

Asian Paints 60%

Dabur 40%

Videocon 40%

Colgate 50%


7/19

Urban Market-

Large number of customers

Awareness about the product

Effective distribution channel

Rise to competition

Source of new ideas.

Great success stories of some famous companies-

Future group 80%

DMart 65%

Globus 59%


8/19

4 Ps Of Market

Product

Price

Place

Promotion

Urban+

Rural


9/19

Marketing Strategies

Rural and urban marketing

Marketing

strategies

Distribution

strategies

Promotion

strategies

Feeder

town

Direct

selling

Personal

selling

All types

of media

Familiar

shows

Near

market


10/19

Urban Vs. Rural Status

TOTAL

PPLTN.

(MLN)

%

PPLTN.

GROWTH

RATE %

SEX

RATION

LITERACY

RURAL 318.74 1.79 916.44 55.61

URBAN 248.17 1.48 927.78 72.58


11/19

Occupation of Head of Household

(IN %)

Urban Rural All Housewife 0.84 1.01 0.96

Cultivator 3.45 40.86 29.99

Wage earner 20.93 35.28 31.22

Salary earner 40.72 11.28 19.84

Professional 3.59 0.73 1.56

Artisan 6.90 3.41 4.42

Petty shopkeeper 16.05 4.97 8.19

Businessman 3.68 0.46 1.40

Others 3.85 1.98 2.52 Total 100.00 1 00.00 100.00

(Source: NCAER, 2003)


12/19

Rural Vs Urban Marketing

No Aspects Urban rural

1.

philosophy Marketing & Social

concept

Development &

Relationship marketing

2.

Market

Demand

high low

3. Competition organized sector Unorganized sector

4. Literacy High Low

5. Income High Low


13/19

6. Needs High level Low level

7. Adoption Faster Slow

8. Producta) Awareness

High Low

b)Concept Known Unknown

c)Quality Good Moderate

9. Price

a)Sensitive

Yes Very much

b)level desired Medium-high Medium-low

10. Transportation Good Average

11. Advertising Print, audio

visual, outdoors.

etc

TV, Radio, print

media in many

languages

12. Personal selling Door-to door,

frequently

Occasionally


14/19


15/19

Distribution of Monthly Per Capita

expenditure

Urban Rural

Food 51.5 63.7

Consumer goods 19.6 13.1

Fuel, clothing & foot we 13.9 14.8

Medical 5.5 5.5

Education 5.1 2.5

Rent & taxes 4.5 0.4Source: Household Consumer Expenditure

Survey, JanuaryJune 2004


16/19

Analysis Of Markets

The annual consumer durable market for products like colour

t.vs,washing machines, refrigerators and air conditioners is growing

at 7-10 %.

While the rural market is zooming at 25 % .

HAVE A LOOK..

F.m.c.gRs.65000 crores (53 % share in total revenues)

Rs.5000 cr.for agri inputs.


17/19

50 % of Indias national income is generated in rural India.

HUL,Colgate Palmolive ,Toyoto50 % revenues coming from rural

and 50% from urban area.

Hero Honda- 40 % from rural and 60% urban area.

Kinetic Motors30 % from rural and remaining from urban area.

Godrej- 30% from rural70% from urban sector.


18/19

Challenges

Rural Marketing

Traditional Life.

Transportation.

Literacy.

Promotion and Marketing Communication.

Urban marketing

Urban market flooded with low demand.

High degree of competition.

Large expenses.


19/19

Questions ????

Documents

Rural and Urbanmarketing Comparetive Analysis