Rural Marketing Ppt

RURAL MARKETING OFCOCA-COLAPRESENTED BYAJEET PRATAP SINGHM.B.A (AGRIBUSINESS)3RD SEMESTER

RURAL MARKETING Rural marketing is the promotion of a company’s

product in the rural market By using strategy which are differ from urban

market Rural market is more price sensitive Rural market preference good quality product Involves an urban to rural activity Deals with delivering manufactured goods/services

to rural producers

RURAL MARKETING Rural marketing involves delivering

manufactured or processed input or services to rural producers or consumers.

WHY RURAL MARKETING IS REQUIRE Urban markets have become congested

with too many competitors. Urban market reached near his

saturation point. Rural market has a great potential for

development. Rural market has the emerging market. It require a large quantity of industrial

and urban manufactured products.

Aspects which make rural market attractive 742 million people 200 million households Annual size of rural market

FMCG - Rs 65000 crore Durables – Rs 5000 crore Agri-inputs – Rs 45000 crore Two wheelers & four wheelers – Rs 8000 crore In 2003-04 LIC sold 55% of its policies in rural india In 2 million BSNL mobil connection 50% are in rural areas 41 million kisan credit has issued 42 million households are avilable for banking service

Opportunities of the rural market Infrastructure is improving rapidly. More than 90% villages are electrified. Most of the villages are connected by

roads. Rural telephone density has gone up by

300% in the last 10 years. Rural literacy level improve from 36% to

59%.

Marketers use available infrastructure of rural areas Post offices 1,38,000 Haats (periodic market) 42,000 Melas (exhibitions) 25,000 Mandis (agri-markets) 3,80,000 Bank branches

32,000

Rural retail stores DSCL Haryali store. M&M Shubh labh store. TATA/Rallis Kisan Kendras. Escorts rural store.

Rural marketing strategy of different companies TATA NANO “Hub and spoke model” to market neno in rural areas. Smaller showroom to set up in surburbs and rural areas. Company believes: Majority sales would come from rural india.

AIRTEL offering customised services to target the farmers Airtel connection information to farmers Other services which helpful to rura peoples

Weather report Farming techniques Rural health initiatives Animal husbandry etc

Cont…….. SANTRO Launched a marketing initiative “GHAR GHAR KI PEHCHAN” tor tapping

rural market. Rolled out special scheme for govt. employees in rural INDIA on

purchase of the car. Planned to touch 58% of Indian village Promoted the scheme through road shows, posters etc.

Maruti Launched a PAN INDIA campaign to tap the vast potential of the rural

market. Conducted a 6 month pilot project to increase sales. Aimed to position itself as the first mover in the village It roped in large number of rural banks to increase the finance

penetration.

Cont………. Nokia Nokia outlined initiatives in areas microfinance

distribution and value added services mainly targeting the farmers.

Looking to launch entry level handsets to cater to the rural consumer.

Himalaya Launched SBU for expanding into smaller towns Rural share of India’s pharma market rose from 18% to

21% . The districts covered up would rise to 400 from 250.

COCA-COLA It is the world’s largest beverage company. It is the largest manufacturer, distributor and marketer of

non-alcoholic beverage concentrates and syrup in the world. The Coca-Cola formula is invented by pharmacist john stith

pemberton in 1886. Coca-Cola company incorporated by asa Candler in 1892. It is currently offers nearly 400 brands in over 200 countries

or territories and serves 1.5 billions each day. It is the best selling soft drink in the most countries. Coca-Cola India is among the country’s top international

investor having invested more then US $3 billion in India. Coca-Cola India produce soft drink, packed mineral water and

fruit juice.

COCA-COLA INDIA’S BRAND COCA-COLA THUMS-UP SPRITE FANTA LIMCA MINUTE MAID PULPY ORANGE MAAZA KINLY

RURAL MARKETING STRATEGIES OF COCA-COLA Rural marketing concept is a customer

centered” sense and respond” philosophy.

Coca-Cola tapped local forms of entertainment like annual haats and fair to increasing it brand image and sell.

Coca-Cola adopt 4p’s marketing strategies for increasing his share in rural market.

PRICE STRATEGY The rural consumer is very conscious about

getting “value for money” Low price, high quality and multiple uses is the

basic principal of rural product design. Coca-Cola launch 200ml bottle at a low price Rs 8

for rural market. The quality of 200ml bottle is similar like the

300ml or 1 liter bottle. It target the rural youth who not effort high rate

of 500ml or 1 L bottle. Unique taste at low price

PRODUCT STRATEGY Rural market are very sensitive about the quality

of the product and popularity of the product. Rural people well known about the brand name. It is very sensitive market compare to the urban

market. Coca-Cola is well known name in the soft drink

field. It make a good image in rural market. They provide quality product at a reasonable price. Quality product at reasonable price

PROMOTION STRATEGY The challenge is in the rural market to create a communication

with rural consumer. In rural market a brand must associate with their culture and

personality. Coca-Cola ad “thanda matlab Coca-Cola” caught the attention

of the rural consumer. Coca-Cola India launched television commercials targeted at

rural consumers. It ensured that all its rural marketing initiatives were well

supported by TVC’s. The commercial was shot in a rural setting. The commercial aimed at making coke a generic name for

“thanda” Using a renowned celebrity in rural background.

PLACE STRATEGY Planning physical distribution, managing logistics and controlling

marketing communication are major impediments for entering rural markets.

The distribution structure involves stock point in feeder towns to service these retail outlets at the village levels.

Coca-Cola is a pioneer company in distribution network. It has evolved a “hub and spoke” distribution model for effectively

reaching and serving rural markets. Coca-Cola provides low cost ice boxes to the small distributors in rural

areas. To reaching out to rural India, coke started out by drawing up a hit list of

high potential villages from various districts. Full load supplies were offered twice weekly against payment by demand

draft. Smaller distributors undertook fixed journey plan on a weekly basis. Coke is available where even water is not available.

PROBLEMS Rural market share is not increase

rapidly Product is not reach very interior place

in the rural India. Rural people are not much attracted

with the brand. Competition in the rural market.

SUGGESTIONS Innovative product designs and packaging. Avoid the marketing myopia. Using Chinese product design strategy and raw material. Using value based pricing strategy. Using psychological tricky pricing strategies. Using effective total quality management. Provide social outlet campaigns. Be careful on retail margins. Develop rural shopping malls. To capture the local sprit in the communication. Use a combination of wholesalers and retailers to

penetrate every nook and corner of rural market.

Thank you