Rural marketing

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PRESENTED BY:-

RAHUL KURMISOURAV LAHIRI

MECHANICAL ENGINEERING SEVENTH SEMESTER C.S.I.T (DURG)

“RURAL MARKETING- A SHINY STREAM AHEAD”

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What to be called as RURAL???Definitions of Rural

Census Village: Basic Unit for rural areas is the revenue village, might

comprise several hamlets demarcated by physical boundaries.

Town: Towns are actually rural areas but satisfy the following criteria.

Minimum Population >=5,000 Population density>= 400/ sq. km. 75% of the male population engaged in non- agri

activity.

RBI Locations with population up to 10,000 will be considered as rural

and 10,000 to 100,000 as semi-urban.

Nabard All locations irrespective of villages or town, up to a population of

10,000 will be considered as ‘rural’.

Planning Commission

Towns with population up to 15,000 are considered as rural.

Sahara Locations having shops/ commercials establishments’ up to 10,000

are treated as rural.

LG Electronics

The rural and semi urban area is defined as all other than the seven

metros.

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WHAT DOES MARKETING STANDS FOR???

Marketing may aptly be described as theprocess of defining, anticipating andknowing customer needs, and organizing allthe resources of the company to satisfy them.

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RURAL MARKETTING Rural marketing is a function which manages all

those activates involved in assessing, stimulating

and converting the purchasing power into an

effective demand for specific products and services,

and moving them to the people in rural area to

create satisfaction and a standard of living to them

and thereby achieves the goals of the organization.

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DEVELOPMENT OF RURAL MARKETING

In earlier times the term rural marketing was used to

define the people who dealt with the rural people in one another way. But gets it separate meaning and

Importance after the economic revaluation INDIA in

1990.

The development of rural marketing can be segmented into three phases which are described as follow:-

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Phase I (Before 1960):Rural marketing referred to selling of

rural products in rural and urban areas

and agricultural inputs in rural markets.

It was treated as synonymous to

‘agricultural marketing

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Part II (1960 to 1990):During this period green revolution resulted from scientific

farming and transferred many of the poor villages into

prosperous business centres. As a result, the demand for

agricultural inputs went up especially in terms of wheat's

and paddies. Better irrigation facilities, soil testing, use of

high yield variety seeds, fertilizers, pesticides and machinery etc.

Two separate areas of activities had emerged- during this

period ‘marketing of agricultural inputs’ and the

conventional“ Agricultural Marketing”

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Phase III (After Mid 1990s):The products which were not given attention so far

duringthe two earlier phases were that of marketing ofhousehold consumables and durables to the rural

marketsdue to obvious reasons. The economic conditions of thecountry were as such that the rural people were not in aposition to buy these kinds of products. Since 1990s,India’s industrial sector had gained in strength andmaturity. The economic reforms further accelerated the

process by introducing competition in the markets. Steadily, the rural market has grown for household consumables and durables.

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WHAT’S A RURAL MARKET Rural Markets are defined as those segments of overall

market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labour economics.

Rural areas of the country or countryside are areas that are not urbanized, though when large areas are described country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture

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Why Rural Marketing is hot:-Rural Push Policy of UPA GovernmentFour Consecutive years of positive growth in

rural GDP40% hike in MSP of Crops over last two yearsFarm Loan Waiver & NREGSGrowing Industry Demand for land (Overnight

Wealth)Big rise in remittances from CitiesSlowing urban demand forcing corporate to

rural markets

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The Rural Consumer: A Detailed Profile

•SIZE OF RURAL CONSUMERI. Rural population about 73% of total population.II. Acc to 2011 census, 80crore population.III.12 crore households- 70 % of total

• LOCATION PATTERN: A scattered market-1. Urban population in 3200 cities2. Rural population in 6,27,000 villages Up to 5000 <1.1% Up to 500 >55% Up to 200 >25%

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SOCIO-ECONOMIC POSITIONLow purchasing per capita income.Bounded by tradition, culture, religion and community.Varied regional preferences.70 percent income from agriculture.• more than 50% have income <Rs 25,000.•About 14% have income >Rs 50,000.In recent years , 70% rural households started saving their income (service class, non farmers like shopkeepers etc.)

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•Culturally a Diverse and heterogeneous MarketIn terms of religious, linguistic , social and cultural factors.

•State to state variation in extent of development-from study conducted by IMRB ( Indian market research institute) provides development index points for each stage on:-Health and education.Availability of public sectorElectricity.Communications.Banks and post offices.Water supply.•Average villages have 33 index points.I. Kerala have 88 index points.II. Bihar having 22 index points.III. UP, MP, Rajasthan close to 22 pointsIV. Maharashtra, Haryana, Karnataka 40-50 points.

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LITERACY LEVELRural India has literacy level rate of 30% compared to 59% of the whole country.Scenes have changed since last few years. Literacy rates increased from 20% to 29%.Every year 8 million people get added to rural India's literate population.Adult literacy program being successful to a good extent.

LIFESTYLEConservative and traditional bounds has changed to a good extent due to:•Increase in income.•Educational growth.•Enlarged media reach.•Growing interaction with urban areas.•Marketers efforts to reach rural areas.

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RECENT TRENDS:Steady growthWelcome change in the composition of Rural

demadSeveral products already well in the rural marketIn many products, rural consumption accounts for a

larger share than urbanIn many products, rural market has overtaken the

urban in growth rate-detergent powder, washing soaps, Analgesics

Position of durables (bicycle-53,celing fan -19 radio-42)

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YEAR 1971 1981 1991 2001

Total population (million) 548.2 683.3 848.3

1026.9

Rural population (million) 524.0 628.8

741.6

Rural Proportion to total population (%)

80.1 76.7 74.3 72.2

Decadal Variation - 19.8 16.7 15.2

Source: Census of India 2001

DEMOGRAPHIC DATA

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DISTRIBUTION OF OCCUPATION AND INCOME IN RURAL MARKET

DISTRIBUTION OF HOUSEHOLD BY ANNUAL INCOME

<=35,00035,001-70,00070,001-105,00105,001-140>140,000

3%

10%

4%

48%

35%

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4 A’s approach to Indian rural marketing mgmt.

1.AVAILIBILITY (PLACE)

2.AFFORDABILITY (PRICE)

3.ACCEPTABILITY (PRODUCT)

4.AWARENESS (COMMUNITY)

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MARKETING STRATEGIES:-Marketers need to understand the psyche of the rural consumers.

Intensive personal selling efforts at the community level.

Firms should refrain from designing goods for the urban markets and subsequently pushing them in rural areas. Focus particularly on rural market based products would give an edge to manufacturers.

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DISTRIBUTION STRATEGY:-

Using company delivery van which can serve two purposes

Annual mela’s and fair’sFixing specific days of a week as a MARKET

DAYS termed as HAAT’SThrough MANDI’S or agri-markets

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Promotional strategy:-

The audio videos must be planned convey a right

message to rural folks. The rich traditional media forms

like street drama, folk dances and puppet shows

should be conducted these are the channels of

marketing with which the rural consumer’s are familiar

and comfortable with.

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RURAL COMMUNICATION AND ADVERTISEMENT:-

Keep the communication simple…(No scope for gimmicks)

Take time in communicating the message (anything quick and short has no impact)

Think in the local language to capture the local spirit in the communication aimed at specific region.

By giving the brands and products an Indian name

By understanding the cultural and social values of the particular rural region and communicate accordingly

Rural consumer’s want value of their money so providing what they want increase the outcomes, they stick to basic functionality

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Demonstration:-

The demonstration may prove a key element to success in rural advertisements as the rural folks don’t suffer shortage time in their day to day life and took a keen interest in the street demonstration of a product it provides a touch and feel concept and a better understanding of the product.

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By keeping the advertisements Indian hiring Indian models bollywood personalities or the faces they are familiar with

Relating it with their religious ethics and belief’sBy developing rural specific products and talking about

a normal common Indian how the product fulfills his need

Providing a glimpse or rural locality whenever possible to the advertisements

By advertising through wall paintings and colourful hording

Associating with INDIAN SPORTS specially with CRICKET

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OPTIMAL PROCEDURE TO SELL YOUR PRODUCT AT RURAL MARKET:-

THINK WISE,ACT SMART

ANALYSE BY CULTURE

PAY ATTENTION

PRICE AND DEDICATION

QUALITY PRODUCT

AFTERSALE SERVICES

CREATE RELAIABILITY

REACH ASAP

HAVE A BRAND IMAGE

REGULAR FEEDBACKS

ENJOY THEIR HAPPINESS

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THANK YOU

HAVE QUERIES, CLEAR THE DOUBTS.