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Rural Market Challenges of india
Citation preview
CHALLENGES OF INDIAN RURAL MARKET
Presented to-Prof. Arpita Srivastava
Presented by-Seema Singh B-08-44Divya Vijay B-08-17
What is RuralGovernment agencies like IRDA (Insurance Regulatory And Development Agency and NCAER(National Council for applied Economic Research) define Rural as villages with a population <5000 with 75% male population engaged in agriculture etc”
Census - Towns are actually rural areas but satisfy.The following criteria Minimum Population< = 5000 75% of the male population engaged in Non –agri activity
NABARD - All locations upto a population of 1000 Will be considered Rural
What is Rural Marketing• rural marketing is promotion of a company's
products in the rural market by using strategies which differs from that of urban market, the rural market is more price sensitive but it has preference for quality. Wiki.answer.com
• rural marketing is concerned with the flow of goods and services from urban to rural arid vice-versa. -world-agriculture.com
Rural Marketing Objective
Objective – Right product at the right price to the right people
at the right time. Exchange between rural and Urban is a
Factor . Could be Urban to Rural: Rural to Urban, Rural to Rural.
Reasons for Going Rural
Size of the market
Largely Untapped
Too crowded Urban Market
Income from other than agriculture
Income flow from urban /abroad
Better exposure - media
PROBLEMS
IN
RURAL
MARKETING
Low per capita income
Low disposable income
Inadequate fixed income(daily wages)
Majority – depends on AgriculturalIncomeAcute dependence on monsoon
Infrastructure problemsRoads, power
Low awareness
Communication- difficult & expensive
Too many languages
Other challenges
PovertyUnemploymentIlliteracyIndebtednessHigh suicide ratesRural communication
Challenges in Agricultural marketing
Transportation and distributionCommunicationScattered villagesWarehousing facilitiesInadequate credit facilitiesSegmentation
Continue..
Middle menLow productivitySeller’s market
Risk in rural marketing..
Natural causes
Man made causes
Reduction value
Natural causes like..
Destructive windHeavy rain-floodsSpoilage pestsFireEarthquake
They are taken to be the act of God
Man made causes like..
Thefts
Strikes
These may be due to social, govt. or market-related reasons
Reduction in value of commodities is due to..
Price variation due to changing consumer preferencePrice variation due to delaysChanges in supply positionChanges in market environmentLow productivitySub-standard grading and packing
Storage..
Storage is done mainly to protect spoilage and pilferage and in some cases, it is done to sell on getting a better price.
In some products , the storage helps to improve quality of products like banana, mango and rice due to ripening and seasoning.
Risk in Rural Storage..
Price risk
Quality risk
Quantity risk
Transportation problems of rural products
Transport Uses
Transshipment Problem
Urban & Rural Markets Key Differences
Per capita Income
Disposable Income
Literacy levels
Infrastructure
Communication
Geographical Spread
Customer has many choices
Key
Challenges
4A
Awareness
Affordability
Availability
Acceptability
Rural India is problem-ridden, but this is one of the phases of the growth process. Every developing country has to through the same. Thus, India should move ahead with development programs, but supplement the same with support from the private sector. This would lead to more equitable and inclusive development.
Sources...
• Marketing Mastermind, Icfai university press (March 2008)
• Rural Marketing Book (R.V Badi & N.V Badi)
• Rural Marketing Book – Pradeep Kashap & Siddhartha Rau