rural marketing (1)
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• Government agencies like IRDA (Insurance Regulatory and Development Agency and NCAER (National Council for applied Economic Research) define Rural as :
Village with a population <5000 with 75% male population engaged in agriculture etc.
population density <400 sq km
Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics.
Urban & Rural Markets
Per capita Income
Disposable Income
Literacy levels
Infrastructure
Communication
Geographical Spread
Customer has many choices
Key Differences
Scope of Rural Marketing
Reasons for Going Rural
Size of the market
Largely Untapped
Too crowded Urban Market
Income on the rise/disposable income
Income from other than agriculture
Income flow from urban /abroadBetter exposure - mediaGreat success storiesHLL 50%Colgate 50%LG 50%Asian Paints 60%Dabur 40%Videocon 40%Cadbury’s 25%
Move to Rural Market …encouraging Data
Rural India buys Soft Drinks approx 45% of all soft drinksAlmost 50% motor cyclesApprox 55% of cigarettesHalf the total market for TV, Fans, pressure cooker, bicycles Washing soap, tea, blades, salt, toothpowder
Coca Cola is growing over 35% in Rural areas compared to Over 22 % in Urban
According to Hasna Research , a market research farm thatHas published a Guide to Indian Markets 2006Consumer durables in Indian Villages risen sharplyTV Sales up by 200%Motorcycle by 77%There are 3000 households in rural area that earn > 50 lakhs
Low per capita income
Low disposable income
Inadequate fixed income(daily wages)
Majority – depends on AgriculturalIncomeAcute dependence on monsoonConsumption linked to harvest
Infrastructure problemsRoads, power
Low awareness
Communication- difficult & expensive
Too many languages
Geographic Spread
Key
Challenges
4A
Awareness
Affordability
Availability
Acceptability
4 Ps4 As
Promotion Awareness
Price Affordable
Product Acceptable
AvailablePlace
• Marketing Strategy• Distribution Strategy• Promotional Strategy• Sales strategy
• Rural India offers tremendous opportunity for any company to tap.
• Companies face many challenges in tackling the rural markets.
• Important factors being an understanding of the rural customers' needs, a reliable distribution channel, and an effective marketing communication strategy to put their message across to the rural consumer
• The Mantra(four As)