RURAL MARKETING

PRESENTED BY Viral Jani

RURAL MARKETING
} } } } } }

Rural marketing is the promotion of a companys product in the rural market By using strategy which is different from urban market Rural market is more price sensitive Rural market preference good quality product Involves an urban to rural activity Deals with delivering manufactured goods/services to rural producers

WHY RURAL MARKETING IS REQUIRED ?

} Urban

markets have become congested with too many competitors. } Urban markets have reached near his saturation point. } Rural market has a great potential for development. } Rural market has the emerging market.

Aspects which make rural market attractive

742 million people } 200 million households } In 2003-04 LIC sold 55% of its policies in rural India } In 2 million BSNL mobile connection 50% are in rural areas } 41 million kisan credit has issued } 42 million households are available for banking service
}

Opportunities of the rural market

} Infrastructure

is improving rapidly. } More than 90% villages are electrified. } Most of the villages are connected by roads. } Rural telephone density has gone up by 300% in the last 10 years. } Rural literacy level improve from 36% to 59%.

Rural marketing strategy of different companies

Tata Nano
} } }

Hub and spoke model to market nano in rural areas. Smaller showroom to set up in suburbs and rural areas. Company believes: Majority sales would come from rural India.

Airtel
} } } } }

Offering customized services to target the farmers Airtel connection information to farmers Other services which helpful to rural peoples Weather report Rural health initiatives

Maruti Suzuki
} } } }

Launched a PAN INDIA campaign to tap the vast potential of the rural market. Conducted a 6 month pilot project to increase sales. Aimed to position itself as the first mover in the village It roped in large number of rural banks to increase the finance penetration.

Hyundai Santro
} } } }

Launched a marketing initiative GHAR GHAR KI PEHCHAN tor tapping rural market. Rolled out special scheme for govt. employees in rural INDIA on purchase of the car. Planned to touch 58% of Indian village Promoted the scheme through road shows, posters etc.

Nokia
}

Nokia outlined initiatives in areas microfinance distribution and value added services mainly targeting the farmers. Looking to launch entry level handsets to cater to the rural consumer.

Himalaya
} } }

Launched SBU for expanding into smaller towns Rural share of Indias pharma market rose from 18% to 21% . The districts covered up would rise to 400 from 250.

PROBLEMS
} Rural

market share is not increase rapidly } Product is not reach very interior place in the rural India. } Rural people are not much attracted with the brand. } Competition in the rural market.

SUGGESTIONS
} Innovative

product designs and packaging. } Avoid the marketing myopia. } Using value based pricing strategy. } Using psychological tricky pricing strategies. } Using effective total quality management. } Provide social outlet campaigns. } Be careful on retail margins. } Develop rural shopping malls.