43955454 co operative and rural markets

8/3/2019 43955454 Co Operative and Rural Markets

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Introduction From the strict marketing point of view,

the market structure in India isdichotomous having rural and urbanmarkets. But many do not concur with

this view as they contend thatconsumer everywhere is a consumerand hence their needs, aspirations,beliefs and attitudes will also be the

same. The fact, however, remains thatthere are certain unique characteristicfeatures which call for separatemarketing strategies to be distinctively

developed to suit the rural and urban


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Secondly, competition is becoming

tough in urban markets compellingmany firms to incur heavy costs inpromotional expenditure. Thirdly, theawareness level of urban consumersis high and hence product featureshave to be changed often. Needlessto say this process needs a huge

investment which will have a negativeimpact on profitability. Thus, exceptperhaps for easy reach the urban

markets have become as oasis.


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Significance of Rural Markets The rural markets are estimated to be

growing fastly compared to the urbanmarkets. The potentiality of ruralmarkets is said to be like a 'woken upsleeping giant'. These facts aresubstantiated in a study of marketgrowth conducted by variousresearches. In recent years, rural

markets have acquired significance incountries like China and India, as theoverall growth of the economy hasresulted into substantial increase in thepurchasing power of the rural


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A number of factorshave been recognized

as responsible for therural market boom to

come into existence


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1. Increase in population and henceincrease in demand.

2. A marked increase in the ruralincome due to agrarian prosperity.3. Standard of living is also increasing

in rural areas.4. Large inflow of investment for ruraldevelopment programmes fromgovernment and other sources.5. Increased contact of rural peoplewith their urban counterparts due todevelopment of transport and wide

communication network.


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What makes rural

marketsattractive?


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* 742 million people* Estimated annual size of the ruralmarket

- FMCG Rs. 65,000 Crores- Durables Rs. 5,000 Crores- Agri-inputs (incl. tractors) Rs. 45,000

Crores- 2 / 4 wheelers Rs. 8,000 Crores* In 2001-02, LIC sold 55 % of its

policies in rural India.* Of two million BSNL mobileconnections, 50% in smalltowns/villages.* Of the six lakh villa es, 5.22 lakh

t t


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ro ems re ate to ruramarketing

Barter system


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Underdeveloped people and market


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Lack of proper physicalcommunication facilities


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Inadequate media coverage for ruralcommunication


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Many languages and dialects

Other influencing factors


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The major weakness andchallenges Traditional mind not to react new

minds

Agricultural income mostly invested in

gold ornaments and weddings. Low rural literature.

Not persuading new thinking and

improved products.


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STRATEGIES

Client and Location specific promotion

Joint or co-operative

promotion


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Bundling of inputs


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Developmental marketing


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Media


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Unique Selling Propositions (USP)

Extension Services


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Partnership for sustainability

Ethics in Business

Selection of sales force


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ExtensionEg. Parle-G

Adaptation


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Adaptation

Small packs or sachets

Rural Product Development

The rural market is a fast growing oneand has a huge population with agreat level of disposable income. Toencash this, products have to bespecifically developed to meet theneeds of rural markets. Sometimes,existing products might have to be

modified to suit these markets too


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Example

Tata sumo first in white and thenturned into yellow, red and blue.


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Innovation

LGs CCTV named Sampoorna

Rural gatherings like temple festivals,melas, cinema halls and so on can be

used as venues to promote brands.Direct Marketing and events like roadshows; film shows, melas, street

theatre can also be used to promotebrands.


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Example

In 2002 2003, LIC sold 50 percent ofits policies in rural India by doingstreet plays


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How do brands positionthemselves in the Rural Market ?

Coca Cola Conquered Rural India

ICICI Prudential Life Insurance

3 As of rural marketing Coca


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3 A s of rural marketing- CocaColaAffordability

Acceptability

Availability


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Affordability:

The first A focuses on productpricing

Coca Cola launched a 200 ml bottle

for just Rs.5, a affordable amount onthe pockets of the rural audience.


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Acceptability :

The advertisement with the tag line -'Thanda Matlab Coca-Cola ' wastargeted at rural and semi-urbanconsumers. The series of Amir Khan

Ads on hill station acting like a nepaliand those in a Punjabi Yaara da

Tashan were a great success and an

important aspect focusing onacceptability. Except TV ads, CCI alsoconcentrated on 47,000 hatts (weekly

markets) and 25,000 melas ( fairs )


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An Unwise Saying:

the traditional village..

where life stands still

waiting..


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but..


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the winds of change approach..

sounding the drums of tomorrow, today!


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wake up to new world


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start a new revolution.

In your lives


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change today

for a better tomorrow


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A Wise Saying:

Badli Zarooratein, Badle KhwaabBadli Duniya, Badle Aap,


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B d j t h t b i ibl i th


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Brands just have to be visible in theright place many brands are doingwell without much advertising support Ghadi, a big detergent brand inNorth India, is an example.


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RECENT TRENDS IN

RURAL MARKETING

1) Online Rural Market (Internet, Nicnet)

2) Product differentiation

3) Use of technology


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4) Think differently(need based

production)

5) Supply ChainManagement

6) Communicate intheir language


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SALES PROMOTIONAL STRATEGIESUSED IN RURAL MARKET

1) Dabur ASTRA

2) Brooke Bond

Lipton India Ltd(BBLIL)

3) HLL's OperationBharat


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4) Philips India Ltd:'Philips SuperShows

5) ITC MangaldeepAgarbatti


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The Promotion Media

1) Newspaper

2) Television

3) Radio

4) Cinema


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Some forms of advertising used in ruralmarket

1) OutdoorAdvertisement

2) Farm to Farm /House to House

3) Group Meeting

4) Opinion Leaders


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1) The Melas

2) Haats

3) Audio Visual Van

M l


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Mela


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Haat


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Hoardings


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Brands Modes of Transport


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Brand Modes of Transport


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CONCLUSION

43955454 co operative and rural markets

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