Rural Marketing by JRD 129

8/12/2019 Rural Marketing by JRD 129

1/13

Presented by: Dr. J.R. Das

8/12/2019 Rural Marketing by JRD 129

2/13

Government agencies likeIRDA (InsuranceRegulatory and

Development Agency and

NCAER National Councilfor applied Economic

Research) define Rural as :

Village with a population

8/12/2019 Rural Marketing by JRD 129

3/13

Rural Markets are defined as thosesegments of overall market of anyeconomy, which are distinct from theother types of markets like stockmarket, commodity markets or Laboreconomics.

8/12/2019 Rural Marketing by JRD 129

4/13

What is Rural Marketing?

According to the National Commission on Agriculture: RuralMarketing is a process which starts with a decision to produce asaleable farm commodity and it involves all the aspects ofmarket structure or system, both functional and institutional,abase on technical and economic considerations and includes

pre and post harvest operations, assembling, grading, storage,transportation and distributions.

RuralMarketing can be defined as a function that manages allactivities involved in assessing, stimulating, and converting thepurchasing power of rural consumers into an effective demandfor specific products and services and moving these products

and services to the people in rural areas to create satisfactionand a better standard of living and thereby achievingorganizational goals.

8/12/2019 Rural Marketing by JRD 129

5/13

Why Rural Marketing is hot?

Rural Push Policy of UPA Government

Four Consecutive years of positivegrowth in rural GDP

40% hike in MSP of Crops over last twoyears

Farm Loan Waiver & NREGS

Growing Industry Demand for land(Overnight Wealth)

Big rise in remittances from Cities Slowing urban demand forcing

corporates to rural markets

8/12/2019 Rural Marketing by JRD 129

6/13

% Annual Change in Rural GDP

Year Change

2003-04 10%

2004-05 -6.7%

2005-06 5.8%

2006-07 4%

2007-08 4.9%

2008-09

(Estimates)

2.6%

51%

Rs. 13,65,000

Crore

49%

Rs 13,17,018

Crore

8/12/2019 Rural Marketing by JRD 129

7/13

Why Rural Marketing

is a New Discipline?

Rural Marketing is a new discipline because:-

India is a predominantly agrarian society. Western Marketing has no experience to

manage it.

Urban markets are saturating in India.

There are immense opportunities at the

bottom of the pyramid. R. M. can change rural business.

Retail boom will also expedite the growthof rural marketing.

8/12/2019 Rural Marketing by JRD 129

8/13

Whether Rural Markets

are Attractive?

Large population

Rising prosperity

Growth in consumption Life-style changes

Life-cycle advantages

Market growth rates higher than Urban

Rural marketing is not expensive Remoteness is no longer a problem.

8/12/2019 Rural Marketing by JRD 129

9/13

Urban & Rural Markets

Per capita Income

Disposable Income

Literacy levels

Infrastructure

Communication

Geographical Spread

Customer has many choices

Key Differences

8/12/2019 Rural Marketing by JRD 129

10/13

PROBLEMS

IN

RURAL

MARKETING

Low per capita income

Low disposable income

Inadequate fixed income

(daily wages)

Majoritydepends on Agricultural

Income

Acute dependence on monsoon

Consumption linked to harvest

Infrastructure problems

Roads, power

Low awareness

Communication- difficult & expensive

Too many languages

Geographic Spread

8/12/2019 Rural Marketing by JRD 129

11/13

Marketing Strategy

Distribution Strategy

Promotional Strategy Sales strategy

8/12/2019 Rural Marketing by JRD 129

12/13

Rural India offers tremendous opportunity for any

company to tap.

Companies face many challenges in tackling the ruralmarkets.

Important factors being an understanding of the rural

customers' needs, a reliable distribution channel, andan effective marketing communication strategy to put

their message across to the rural consumer

8/12/2019 Rural Marketing by JRD 129

13/13

THANK YOU