recent innovations in rural marketing
TRANSCRIPT
Presented by:
Puri Chandan
MBA(AB) 1st Year
IABM, Bikaner
Introduction
Facts about rural market
Meaning of rural marketing
The evolution of rural marketing
Meaning of innovation
Innovations in rural marketing
Conclusion
References
Flow of Presentation
4/19/2015 Institute of Agri Business Management, Bikaner 2
4/19/2015 Institute of Agri Business Management, Bikaner 3
Organization Definitions of Rural
Census Village: Basic unit for rural areas is revenue village, which might comprise of several hamlets demarcated by physical boundaries.Town: Towns are actually urban areas that can satisfy the following criteria;• Minimum population >= 5000• Population density >= 400/sq.km• 75% of the population engaged in non-agricultural activities
RBI Rural with population up to 10,000 will be considered as rural and 10,000 to 1,00,000 will be considered as semi-urban
Planning Commission
Towns with population up to 15,000 are considered rural
Sahara Locations With shops/ commercial establishment up to 10,000 population size are treated as rural
LG Electronics All population centres other than the 7 metros are considered rural or semi-urban
Introduction
Source: Pradeep Kashyap Rural Marketing, Second edition
4/19/2015 Institute of Agri Business Management, Bikaner 4
Large Cities
Small Towns
Villages
Where Does India Live
25%
25%
50%
12%
18%
70%
1 Million+
<1 Million
<10,000
GDP
sharePopulation
48
Large cities
7,834Towns
6,38,000Villages
Source: Pradeep Kashyap Rural Marketing, Second edition
4/19/2015 Institute of Agri Business Management, Bikaner 5
Rural market comprises 70% of the country’s population,
41% of its middle class, 58% of its disposable income and
a large consuming class
Around 700 million people, or 70% of India's population,
live in near about 6,38,000 villages in rural areas
90% of the rural population is concentrated in villages
with a population of less than 2000
Rural India is the largest Rural Market in the World
Facts About Rural Market
Source: http://www.ibef.org/industry/indian-rural-market.aspx Contd…
4/19/2015 Institute of Agri Business Management, Bikaner 6
Rural India buys :
Soft Drinks approx 45% of all soft drinks
Almost 50% motor cycles
Approx 55% of cigarettes
Half the total market for
TV
Fans
Pressure cooker
Bicycles
Washing soap
Tea
Blades
Salt
Toothpowder
Source: http://www.ibef.org/industry/indian-rural-market.aspx
4/19/2015 Institute of Agri Business Management, Bikaner 7
Size of Indian Rural Market
Source: http://www.ijarcsse.com/docs/papers/Volume_3/1_January2013/V3I1-0207.pdf
65000
45000
80005000
0
10000
20000
30000
40000
50000
60000
70000
FMCG Agri-Inputs 2/4 Wheelers Durables
Market size is 1,23,000 ₹ crores
₹
4/19/2015 Institute of Agri Business Management, Bikaner 8
Rural Marketing
Rural marketing is the process of marketing in rural areas, it includes the adoption
of various marketing strategies and policies in rural market with a view to convert
the needs and wants of rural people into demand
Rural marketing is planning and implementation of marketing function for the
rural areas
4/19/2015 Institute of Agri Business Management, Bikaner 9
Evolution of Rural Marketing
3 Phase Three( 1990-2000 )
• Demand for consumables and durables rise• Indian corporations with customized offerings for rural
markets
4 Phase Four( after 2000 )
• Government pro-rural initiatives take place• Several FMCG increase visibility in rural market• Durables companies like LG and Samsung have
employed rural thrust• Several MNC started entering rural market
Sr. No. Time Frame Key Events & Trends
1 Phase One( Pre 1960’s )
• Marketing of rural products in rural and urban areas• Agricultural inputs in rural markets• Agricultural Marketing• Farming methods were primitive and mechanization was low• Markets unorganized
2 Phase Two( 1960-1990 )
• Green revolution• Companies like Mahindra & Mahindra, Sri Ram Fertilizers,
IFFCO emerge• Rural products are also marketed through agencies like KVIC• A new area, ‘marketing of agricultural inputs’ emerge• Nirma became the first company to initiate and produce products for
rural market
Source: Pradeep Kashyap Rural Marketing, Second edition
4/19/2015 Institute of Agri Business Management, Bikaner 10
A marketing innovation is the implementation of a
new marketing method involving significant changes in
product design or packaging, product placement, product
promotion or pricing
4/19/2015 Institute of Agri Business Management, Bikaner 11
Key imperatives for profitable and sustainable growth in rural markets
(Percent of survey respondents)
49
46
39
38
35
39
26
38
30
36
9
13
18
26
23
0
6
6
3
4
3
9
2
2
1
SUPPLY CHAIN AND DISTRIBUTION
EFFEICIENCY
PRODUCT LOCALISATION AND
INNOVATION
PRICING
CUSTOMER SERVICES
COLLABRATIVE BUSINESS MODELVery Important
Important
Less Important
Very Less Important
Not at all Important
Why Innovation?
Source: http://www.accenture.com/Global/Research_and_Insights/Outlook/By_Issue/Y2013/APassageToIndia.htm
4/19/2015 Institute of Agri Business Management, Bikaner 12
Innovation in Rural Markets
Innovation
Innovation in
Product
Innovation in Price
Innovation in
Promotion
Innovation in Place
Innovations in Packaging
4/19/2015 Institute of Agri Business Management, Bikaner 13
The Rasoi Ghar is a community kitchen sharedby several households of one village
Centrally located in a target cluster of a selectedvillage
Each Rasoi Ghar is equipped with an adequatewater supply, a cooking slab, basic cookingutensils and a minimum of 2 stoves connected toreplaceable LPG cylinders
Video
HPCL Rasoi Ghar
Source: Pradeep Kashyap Rural Marketing, Second edition
4/19/2015 Institute of Agri Business Management, Bikaner 14
ICRISAT has recently launched "Green PHABLET powered by
the Green SIM” with NUNC a Hyderabad-based company
This will help farmers purchase inputs at lower price, get a better
price for their produce, and link them to markets, thus putting
them on the path to prosperity
GreenSIM is a special SIM card created by ICRISAT, Airtel, and
the IFFCO Kisan Sanchar Limited (IKSL).
ICRISAT Green PHABLET
Source: http://www.ruralmarketing.in/industry/innovation/icrisat-launched-greensim-powered-greenphablet
4/19/2015 Institute of Agri Business Management, Bikaner 15
A brainchild of Nikhil Jaisinghani, an alumniof University of Virginia, which builds andoperates low cost solar powered micro grids
It offers consumers a lower cost lightingservices
Impact
By the end of March 2014, MGP hasconnected 20,000 households with its microgrid in the villages of Uttar Pradesh, providingelectricity to 1,00,000 people
Mera Gao Power
Source: http://www.ruralmarketing.in/industry/innovation/ideating-innovative-india
4/19/2015 Institute of Agri Business Management, Bikaner 16
Ampere Vehicle Pvt. Ltd., has launched‘E-Vehicle’ a light electric vehiclecompany based in south India
The range of products comprises ofbicycle to scooter which can be used on anaverage of 60 kms when the battery ischarged for 6-8 hours
Impact:
Ampere sells about 10,000 light E-vehicles, ranging from scooters tomotorbikes, annually in South India
E-Innovation For a Cleaner Future
Source: http://www.ruralmarketing.in/tag/e-innovation-for-a-cleaner-future
4/19/2015 Institute of Agri Business Management, Bikaner 17
FMCG Companies:
Coca-Cola: 200ml for 5 ₹
Gillette: Gillette Guard was launched to provide high-quality shave at an affordable price
Free Price Coupons Scheme:
This scheme launched by companies like Sinochem, DuPont, Syngenta for dealers and distributors
Innovation in Price
4/19/2015 Institute of Agri Business Management, Bikaner 18
Dabur launched Project Double in 2010
The project’s goals were to double rural market
revenue and increase penetration of non-passive
distributed categories
Impact:
Within a year and a half, Project Double has reached
24,000 of the targeted 33,000 villages with
populations of more than 3,000 in the top 10 states
Dabur: Project Double
4/19/2015 Institute of Agri Business Management, Bikaner 19
Flipkart with Common Service Centre's (CSCs) offer rural
artisans the opportunity to build and establish their brand
nationally, access to financial, marketing and supply chain
support and at the same time will generate employment
and enhance rural economy
This provide the rural artisan and MSME community the
support needed to market their products across the country
Flipkart, Snapdeal plans to tap 50 lakh low-income
households in villages across the country
Flipkart “Karigaar ke Dwaar”
Source: http://www.ruralmarketing.in/industry/advertising-and-marketing/flipkart-joins-hands-with-csc-e-governance-services
4/19/2015 Institute of Agri Business Management, Bikaner 20
ITC’s e-Choupal:
It offers the farmers all the information, products andservices they need to enhance farm productivity,improve farm, gate price realization and cut transactioncosts
Farmers can access latest local and global informationon weather, scientific farming practices as well asmarket prices at the village itself through this webportal - all in Hindi
It also facilitates supply of high quality farm inputs aswell as purchase of commodities at their doorstep
e-Rural Marketing
4/19/2015 Institute of Agri Business Management, Bikaner 21
1. ITC’s Choupal Sagar:
It offer multiple services under one roof
2. TATA Kisan Sansar:
The centres offer farmer a host of
products and services ranging from
agri-inputs, financing to advisory
services
Organised Rural Retailing
4/19/2015 Institute of Agri Business Management, Bikaner 22
3.Godrej’s Aadhaar
The centres retails agri-inputs, animal feeds
along with FMCGs and services
4. 3A BAZZAR:
It is mobile retailing initiative launched for rural
areas
Every day, the van stuffed with 1300 items
ranging from FMCGs, cosmetics, garments and
stationery covers three to five villages
Contd…
4/19/2015 Institute of Agri Business Management, Bikaner 23
1. Google’s Bus:
The internet bus launched by Google to
educate the offline population in India about
the benefit of the internet
2. TATA Shakti: Haat Hungama Campaign:
Interactive brand games in the form of a set
flash cards created an edutainment platform
for the audience
It result in 37% increase in sales
Innovations in Promotion
4/19/2015 Institute of Agri Business Management, Bikaner 24
TML launched Project Neev (literally means ‘foundation’ in Sanskrit), with an eye on gaining a first-mover advantage in rural markets
This projects aims to tap the rural segment by selling small commercial vehicles & creation of rural entrepreneurship opportunities through vehicle ownership
Impact:
The rural business has seen addition of over 20 percent to TML’s SCV vehicle sales
TATA Motors: Project Neev
4/19/2015 Institute of Agri Business Management, Bikaner 25
1. Packing a Punch: S-pac:
The revolutionary new packaging design, S-pac of
Syngenta delivers customers benefits of improved safety,
ease-of-use and counterfeit protection as well as
strengthening the Syngenta brand image with customers
2. DuPont Dual Compartment Pouch MixPack:
3. PI Industry's Nominee Gold
Innovations in Packaging
4/19/2015 Institute of Agri Business Management, Bikaner 26
Rural Market have untapped potential
Rural India can be one of the most feasible market for the development of the FMCG
and Agri-input companies
With proper planning and use of new strategies and technologies, the rural India
market can be captured and a great margin of profit can be earned by the FMCG
companies, Agri-input companies, Automobile companies etc.
There is vast scope for e-Marketing of agricultural produces
Conclusions
4/19/2015 Institute of Agri Business Management, Bikaner 27
Pradeep Kashyap: Rural Marketing, Second Edition
Balram Dogra and Karminder Ghurman: Rural Marketing, Concepts and Practices
Global Journal of commerce and management perspective, Nov.2013
http://www.ruralmarketing.in
http://www.irjmsh.com
http://ijmcr.com
http://www.ibef.org/industry/indian-rural-market.aspx
Retrieved fromhttp://www.ijarcsse.com/docs/papers/Volume_3/1_January2013/V3I1-0207.pdf
Retrieved from http://www.accenture.com/inen/landingpages/ Documents/ Rural Market-15/pdf
Retrieved fromhttp://www.accenture.com/Global/Research_and_Insights/Outlook/ By
Issue/Y2013/APassageToIndia.htm
References
4/19/2015 Institute of Agri Business Management, Bikaner 28