Group members :Group members :Mareena 1

Sagar 2

Mrunal 14

Surekha 16

Khushal 53

IntroductionIntroduction From the strict marketing point of

view, the market structure in India is dichotomous having rural and urban markets.  But many do not concur with this view as they contend that consumer everywhere is a consumer and hence their needs, aspirations, beliefs and attitudes will also be the same.  The fact, however, remains that there are certain unique characteristic features which call for separate marketing strategies to be distinctively developed to suit the rural and urban market behaviour. 

Secondly, competition is becoming tough in urban markets compelling many firms to incur heavy costs in promotional expenditure.  Thirdly, the awareness level of urban consumers is high and hence product features have to be changed often.  Needless to say this process needs a huge investment which will have a negative impact on profitability.  Thus, except perhaps for easy reach the urban markets have become as oasis.

Significance of Rural Significance of Rural Markets Markets The rural markets are estimated to

be growing fastly compared to the urban markets.  The potentiality of rural markets is said to be like a 'woken up sleeping giant'.  These facts are substantiated in a study of market growth conducted by various researches. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities.

A number of factors have been

recognized as responsible for the

rural market boom to come into existence

1. Increase in population and hence increase in demand.2. A marked increase in the rural income due to agrarian prosperity.3. Standard of living is also increasing in rural areas.4. Large inflow of investment for rural development programmes from government and other sources. 5. Increased contact of rural people with their urban counterparts due to development of transport and wide communication network.

What makes What makes rural markets rural markets attractive?attractive?

* 742 million people* Estimated annual size of the rural market - 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 mobile connections, 50% in small towns/villages.* Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)

Problems related to rural Problems related to rural marketing marketing Barter system

Underdeveloped people and market

Lack of proper physical communication facilities

Inadequate media coverage for rural communication

Many languages and dialects

Other influencing factors

The major weakness and The major weakness and challengeschallengesTraditional mind not to react new

mindsAgricultural income mostly

invested in gold ornaments and weddings.

Low rural literature. Not persuading new thinking and

improved products.

STRATEGIES Client and Location specific

promotion

Joint or co-operative promotion

Bundling of inputs

Developmental marketing

Media

Unique Selling Propositions (USP)

Extension Services

Partnership for sustainability

Ethics in Business

Selection of sales force

Extension Extension Eg. Parle-G Eg. Parle-G

Adaptation Adaptation Small packs or sachets

Rural Product Development The rural market is a fast growing

one and has a huge population with a great level of disposable income. To encash this, products have to be specifically developed to meet the needs of rural markets. Sometimes, existing products might have to be modified to suit these markets too accordingly.

ExampleExampleTata sumo first in white and then

turned into yellow, red and blue.

Innovation Innovation LG’s 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 road shows; film shows, melas, street theatre can also be used to promote brands.

ExampleExampleIn 2002 – 2003, LIC sold 50

percent of its policies in rural India by doing street plays

How do brands position How do brands position themselves in the Rural themselves in the Rural Market ?Market ?Coca Cola Conquered Rural India ICICI Prudential Life Insurance

3 A‟s of rural marketing- 3 A‟s of rural marketing- Coca Cola Coca Cola Affordability

Acceptability

Availability

Affordability:Affordability:The first “A‟ focuses on product

pricing Coca Cola launched a 200 ml

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

Acceptability :Acceptability :The advertisement with the tag line -

'Thanda Matlab Coca-Cola ' was targeted at rural and semi-urban consumers. The series of Amir Khan Ads on hill station acting like a nepali and those in a Punjabi „ Yaara da Tashan‟ were a great success and an important aspect focusing on acceptability. Except TV ads, CCI also concentrated on 47,000 hatts (weekly markets) and 25,000 melas ( fairs ) held annually in various parts of the country.

Availability :Availability :The third „A‟ focused on strengthening its

distribution network there. Rural India meant reaching 6,27,000 villages spread over 32,87,263 square kms; it meant getting distributors to travel 200 kms to reach five shops.

Large distributors (Hubs) were appointed, and they were supplied from the company's depot in large towns. On their part, the hubs appointed smaller distributors (Spokes) in adjoining areas. The smaller distributors undertook fixed journey plans on a weekly basis. The distributors also hired rickshaws (cycle operated vans) that travelled to villages daily.

An Unwise Saying:

the traditional village..

where life stands still

waiting……..

but…..

tthe winds of change approach..he winds of change approach..

sounding the drums of tomorrow, sounding the drums of tomorrow, ttodaodayy!!

wake up to new worlwake up to new worldd……

start a new revolution….

In your lives

change today…

for a better tomorrow

A Wise Saying:A Wise Saying:

Badli Zarooratein, Badle Khwaab Badli Duniya, Badle Aap,

Brands just have to be visible in the right place many brands are doing well without much advertising support — Ghadi, a big detergent brand in North India, is an example.

RECENT TRENDS IN RECENT TRENDS IN RURAL MARKETINGRURAL MARKETING

1) Online Rural Market (Internet, Nicnet)

2) Product differentiation

3) Use of technology

4) Think differently (need based production)

5) Supply Chain Management

6) Communicate in their language

SALES PROMOTIONAL STRATEGIES SALES PROMOTIONAL STRATEGIES USED IN RURAL MARKETUSED IN RURAL MARKET

1) Dabur ASTRA

2) Brooke Bond Lipton India Ltd (BBLIL)

3) HLL's ‘Operation Bharat’

4) Philips India Ltd: 'Philips Super Shows’

5) ITC Mangaldeep Agarbatti

The Promotion MediaThe Promotion Media

1) Newspaper

2) Television

3) Radio

4) Cinema

Some forms of advertising used in Some forms of advertising used in rural marketrural market

1) Outdoor Advertisement

2) Farm to Farm / House to House

3) Group Meeting

4) Opinion Leaders

1) The Melas

2) Haats

3) Audio Visual Van

MelaMela

HaatHaat

HoardingsHoardings

Brands Modes of Brands Modes of Transport Transport

Brand Modes of Transport

CONCLUSIONCONCLUSION