Despite the diverse heterogeneous nature of rural markets. why are marketers focusing on rural market ?

Despite the diverse heterogeneous nature of rural markets. Why are

marketers focusing on rural market ?

Group : Ashish Singh

Daksha Yadav Deepal Solanki

Contents : Rural ? Rural India : A Brief Profile Rural Marketing Heterogeneous Market Reasons why Marketers focus on Rural Markets ? A Case Study

Rural ??? The census of India defines rural as –

- Any Habitation with the population density of less than 400 sq/km

- At least 75% of male working population is engaged in agriculture

- There exists no municipality or board .

RURAL INDIA: A BREIF PROFILEVillages are the heart of India. Approximately 75% of India’s

population(equaling 12.2% of the world’s population)lives in 6,38,365 villages spread over 32 lakh square kilometers.

As per the census (2001) rural segments comprises 13.5 crore household which constitute 72% of total households in India with 48 crore adults individuals.

Rural Marketing? Rural marketing is defined as managing all the

activities involved in assessing, stimulating and converting the purchasing power of the rural consumers into effective demand for specific products and services and moving them to the people in rural areas to create satisfaction and a better standard of living and thus achieving organizational objectives.

Rural marketing is a two-way process wherein:

• Urban to rural - Major part of rural marketing. Includes transactions of urban marketers who sell their goods and services in rural areas pesticides, fertilizers, FMCG products, tractors, bicycles, consumer durables, etc.

• Rural to urban - Basically falls under agricultural marketing. A rural producer seeks to sell his produce in urban market like seeds, fruits and vegetables, forest produce, spices, milk and related products, etc.

Heterogeneous Market As many as 20,000 ethnic groups are present rural India and

this poses a formidable challenges to the marketer.

There are 24 languages and 1,642 dialects (boli) varies ever 100 km or so it extremely difficult to develop a uniform promotional message.

Distribution of Population by Age Group (2001)Age Groups Rural Urban0-4 11.5 8.95-14 25.7 21.815-19 9.5 10.620-34 23.1 26.835-54 19.7 22.555+ 10.5 9.4Total 100 100Source: Census of India , 2001

Cont’d…

Per capita income in rural and urban areas.

68867740

9665

37954478

6070

0

2000

4000

6000

8000

10000

12000

1989-90 1994-95 2001-02

Urban

Rural

Cont’d…

Reasons why marketers must focus on rural market :

Rural population has grown by 12% in last decade.

Rural market, accounts for 40% of Indian economy.

Now urban market is saturated so they have chance to exposure to rural markets.

Rural markets account for 30 percent of our volume and it is

growing at a fast pace.

Socio-economic conditions of rural people is increasing so they are focusing on rural markets.

Cont’d

The mindset of divide between urban and rural market has been changed with the tactical promotion of products.

Connectivity from rural to urban or urban to rural is good which encourage marketers to focus on rural areas.

There are various segments of products for different age group.

Rural India has huge, heterogeneous and growing consumer market, which contributes more than 50% to India’s total consumer market size.

in Rural INDIA

CASE STUDY OF :

A humiliating loss of 400 Million USD in the 2000 and a flat 2001 made Coca Cola India (CCI) rethink and reinvent its strategies in India. The flat sales in the urban areas made it clear for the CCI that they would have to shift focus to the untapped rural markets.

200ml Rs. 5

300ml Rs. 10

Coca-cola’s Rural marketing strategy

Coca-cola’s rural marketing strategy is based on 3A’s

1.)  Affordability

2.)  Acceptability

3.)  Availability

Strategies

• AFFORDABILITY

• ACCEPTABILITY

AVAILIBILITY

Advertising Strategies TV Commercials/ Mass Media

Wall Paintings

Hoardings

Print Media

Results37% growth in Rural market in the year 2003

Conclusion

   CCI’s success on India’s vast, rural markets is a lesson on how to grow an untapped market. It is an indication that if an MNC does its home work right and gets the right distribution mix, then it need not restrict itself to India’s urban middle class.

GO RURAL BE RULER

THANK YOU