Rural Marketing. RURAL AREA The "rural sector" means any place as per the latest census which meets the following criteria:- A population of less than.

Rural Marketing

RURAL AREAThe "rural sector" means any place as per the latest census which meets the following criteria:-

• A population of less than 5000 people• Density of population less than 400 per sq km and• More than 25% of the male working population is engaged in agriculture pursuers.

RURAL MARKETING

The term can be defined in 3 parts:-• Part 1(Before 1960):- Rural marketing referred to

selling of rural products in rural and urban areas and agriculture inputs in rural markets.

• Part 2(1960-1990):- In this era green revolution started from scientific farming and transferred many of the poor villages into prosperous business centers. Two separate area of activities had emerged during this period‘marketing of agriculture inputs’, ‘agriculture marketing’.

Part 3(After mid 1990’s):-Since 1990’s,India’sindustrial sector had gained in strength and maturity. Its contribution to GNP increasedsubstantially. A new service sector had emerged signifying the metamorphosis ofagricultural society into industrial society.

As a result of the above analysis, we are in a position todefine rural marketing:-“Rural marketing can be seen as a function which manages all those activities 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 for them and thereby achieves the goals of the organization”.

SIGNIFICANCE Of RURAL MARKET

A number of factors have been recognized as responsible for the rural market boom. Some of them are: 1:- Increase in population, and hence increase in demand. The rural population in 1971 was 43.80 crores, which increased to 50.20 crores in 1981, 60.21 crores in 1991 and 72.0 crores in 2011.2:- A marked increase in the rural income due to agrarian prosperity.3. Large inflow of investment for rural development programmes from government and other sources. 4. Increased contact of rural people with their urban counterparts due to development of transport and a wide communication network.5. Increase in literacy and educational level among rural folks, and the resultant inclination to lead sophisticated lives.6. Inflow of foreign remittances and foreign made goods in rural areas.

WHY RURAL MARKETING IS HOT

• On nov. 16th to appraise farmers about the latest technology and machinary ,A FARM MACHINARY MELA was organized by the department of agriculture.

• Four Consecutive years of positive growth in rural GDP

• 40% hike in MSP of Crops over last two years

• 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

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 growth of

rural marketing.

Size of Rural Market

Estimated Annual Size : Rural Market

FMCG Rs. 65000 Crore

Durables Rs. 5000 Crore

Agri-inputs (incl. tractors)

Rs. 45000 Crore

2/4 Wheelers Rs. 8000 Crore

Total Rs. 1,23,000 Crore

Rural v\s Urban

OCCUPATION:Rural: Cultivators n few non –agricultural pursuits.Urban: manufacturing, trade, commerce, professionsDENSITY OF POPULATION:Rural density of population is lower than urban

Mobility:-• Rural: social mobility less.More migration

from villages to town.• Urban: social mobility inreases with urbanity.Size of Community:-• Rural: open farms & small community are –vly

co-related• Urban: urbanity & size of community are +vly

co-related

Various factors which made rural markets viable:-

1. Large population 2. Raising prosperity 3. Growth in consumption4. Life-style changes5. Life-cycle advantages6. Market growth rates higher than urban7. Rural marketing is not expensive8. Remoteness is no longer a problem

Why Agriculture Growth has been slow & tardy?

1. Low priority to Agriculture2. Subsistence Orientation of Agriculture3. Failure of Land Reforms4. Low size of operational Landholdings5. Inadequate Food Supplies6. Sluggish Infrastructural Growth7. Disconnect between Research & Farmers8. Insufficient Availability of Credit9. Inadequate Inputs10. Slowdown of Rural Industrialization

Retail Outlet

Policy Interventions Required

1. Thrust on Land Reforms2. Strengthening the Panchayati Raj Institutions3. Financial Inclusion (Innovative Credit Delivery)4. Development of Rural Infrastructure5. Expansion of Kisan Credit Card Scheme6. Protection of Farmers from natural calamities7. Extensive use of ICT8. Higher Investment in Agriculture & Rural Development.9. Focus on High Value Crops & Non-farm Incomes.

10. Bridging the Gap Between Agri-Research & Farming.

Companies Already Into Rural Marketing

COMPANY RURAL SALES (% OF TOTAL)HULCOLGATEGODREJCAVIN CARE MARICOCADBURYCIPLA

50503033251518

CHALLANGES• Clearly the main challenge that one faces

while dealing with rural marketing is the basic understanding of the rural consumer who is very different from his urban counterpart. Also distribution remains to be the single largest problem marketers face today when it comes to going rural. "Reaching your product to remote locations spread over 6lacs villages and poor infrastructure - roads, telecommunication etc and lower levels of literacy are a few hinges that come in the way of marketers to reach the rural market.

Contin…….

• In 1998 HUL’s personal products unit initiated Project Bharat, the first and largest rural home-to-home operation to have ever been prepared by any company. The project covered 13 million rural households by the end of 1999.

• During the course of operation, HuL had vans visiting villages across the country distributing sample packs comprising a low-unit-price pack each of shampoo, talcum powder, toothpaste and skin cream priced at Rs. 15. This was to create awareness of the company’s product categories and of the affordability of the products.

Some Examples And Strategies Applied For Rural Marketing Khaitan fans' ad on a horse cart

Contd…..

• The greatest challenge for advertisers and marketers continues to be in finding the right mix that will have a pan-Indian rural appeal. Coca Cola, with their Aamir Khan ad campaign succeeded in providing just that.

"Yaara da Tashan...” ads with Aamir Khan created universal appeal for Coca Cola

• "Yaara da Tashan..." ads with Aamir Khan created universal appeal for Coca Cola

• Coca-Cola India tapped the rural market in a big way when it introduced bottles priced at Rs 5 and backed it with the Aamir Khan ads. The company, on its behalf, has also been investing steadily to build their infrastructure to meet the growing needs of the rural market, which reiterates the fact that this multinational has realised the potential of the rural market is going strength to strength to tap the same.

• Amul is another case in point of aggressive rural marketing. Some of the other corporates that are slowly making headway in this area are Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero Honda to name a few.

• Interestingly, the rural market is growing at a far greater speed than its urban counterpart. "All the data provided by various agencies like NCAER, Francis Kanoi etc shows that rural markets are growing faster than urban markets in certain product categories at least. The share of FMCG products in rural markets is 53 per cent, durables boasts of 59 per cent market share. Therefore one can claim that rural markets are growing faster than urban markets

CONCLUSION

Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. a radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural india.