Transcript
Rural Marketing
Presented By;NEETU.P.S
PGDBM ‘B’ SEC
What is Rural Marketing?
Rural marketing is the study of all the Activity , agency and policy involved in..
The procurement of farm inputs by the Farmers and the movement of rural products from farmers to consumers.
-G.N.
MURTHY
Defn.. According to, T P
Gopalaswamy, “Rural marketing is a two-way process which encompasses the discharge of business activities that direct the flow of goods from urban to rural areas (for manufactured goods) and vice versa (for agriculture produce), as also within the rural areas”
RURAL MARKET IN INDIAIn the India context, the word ‘RURAL’ is so much
associated with agriculture and farmers that rural marketing tends to be seen as a marketing of inputs or outputs related to agriculture.
The rural market in India has great potential, which is just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor as it used to be a decade or so back.
Rural Market Environment
The Rural Consumer
The Rural Demand
Other Aspects
NATURE OF RURAL MARKETING
Large, Diverse and Scattered Market
Major Income of Rural consumers is from Agriculture
Traditional OutlookRising literacy levels Diverse socioeconomic
backgroundInfrastructure Facilities
Importance of rural marketing Size of rural marketRural target populationEmployment Better living Contribution to national income Increase in farm income
Scope of Rural Marketing
Keenly debated topic
Definitions based on organisational/
institutional vision, mission & goals
Need for a comprehensive and modular
understanding
Rural Marketing is a “ work in progress”
Multi – disciplinary approach is necessary for
sharper understanding
Rural products
Rural products are the results of the art of agriculture and allied activities.
In a narrow sense,rural products refer to the products arising out of the cultivation, namely various crops, vegetables and fruits etc.
Types of rural goodsIndustrial goods consumer goodsIndustrial goods:-industrial rural
goods are those use for further industrial processing. e.g. tabacoo, fibre crops like cotton and jute.
Consumer goods:-goods are mean for direct use like all foodgrains, dairy product, poultry products vegetables and fruits.
• Some well established products– Pressure Cooker Artificial
Jewellery– Cooking Utensils ,
Medicines– Batteries
Tobacco Products– Scooters, Motorcycles
Soaps, Detergents– Bicycles Electrical Goods
(fan,light)– Radio T.V– Pesticides, Fertilizers Wrist
Watches– Tea ,Mobile Phones– Sewing Machines
The Rural Demand
Steady Growth from the past 2 decadesWelcome change in the composition of Rural Demand
◦ Several products already well established in the rural market◦ In many products the rural market share is greater than the
urban market◦ In many products rural market has overtaken the urban in
growth rate
Recent Trends
Attractiveness of rural market
Rural markets have become the new targets to corporate enterprises for two reasons :
1. Urban market has become congested with too many competitors.
2. The market have reached a near saturation point.
The Rural Market is being seen as a Growing Opportunity mainly because of the following – ◦ Rural Demand is growing
rapidly◦ Purchasing power has
increased◦ Cut Throat competition in the
Urban Markets◦ Rural market is largely
unexplored and untapped◦ There would be opportunities
for new entrants as compared to urban population being loyal to specific brands
◦ The volume and the strength of the rural population
Rural Market becomes attractive to Corporate
Company Rural Sales (% of
total) HUL 50 Colgate 50 Godrej 30 Cavinkare 33 Marico 25 Cadbury 25 Cipla 18
Companies already into Rural Area
Current Scenario Of Rural India
& Govt. Initiatives
Rural Market
700 million potential consumers, over 40 per cent of the Indian
middle-class, and about half the country's disposable income
68% population of India is in Rural
India.
More than 10 Government schemes Running.
Main Target is to Increase Rural income by generating employment.
SGSY, MNREGA, SHG’s – Step towards Generating Employment.
Budget Allocation up from INR 10,000 Crs. to 58,000 Crs. for rural development.
As per BCG and CII reports Rural Customers will be 36% of House Holds by 2025.
This market will be open for retail sector.
Ten Fold growth In rural Market by 2025 to reach USD 100 Bn Mark. - HUL
Marketing In Rural India
Rural Marketing is Less Liquidity Demanding.
Village Meals, Nukkad Natikas, Mobile Vans, Wall Paintings Can do the trick.
These marketing attempts have been very effective.
Khaitan fans' ad on a horse cart
Typical shop in rural India stocked with sachets, etc
In 2000, ITC took an initiative to develop
direct contact with farmers who lived in far-flung villages in Madhya Pradesh. ITC's E-choupal was the result of this initiative
Satellite dish antennas reach rural India
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