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Submitted To:
Prof. Rajesh Verma
Submitted By:
Ram Niwas
Program: PGPM
Roll No.: 2K8/PGPM/H-46
2008-2010
RAMNIWAS
PGPMH-46
TABLE OF CONTENTS
EXECUTIVE SUMMARY 04
RESEARCH METHODOLOGY O6
REVIEW OF LITERATURE 09
INTRODUCTION 13
CONCLUSIONS 128
APPENDIX 132
BIBLIOGRAPHY 138
EXECUTIVE SUMMARY
India’s way is not Europe’s. India is not Calcutta and
Bombay. India lives
in her seven hundred thousand
villages.....................Mahatma Gandhi, 1926
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY:
Any task without sound objectives is like Tree without roots.
Similarly in case of any research study undertaken, initially
the objectives of the same are determined and accordingly
the further steps are taken on. A research study may have
many objectives but all these objectives revolve around one
major objective which is the focus of the study. In this study,
the focus is on the emergence of rural markets as the most
happening market on which every marketer has an eye. And
so this study will be based on studying the emergence of
rural market in various contexts.
Data collection
Sample unit:
1. Working people (including men &women), basically
farmers.
2. College students
3. School students
4. Senior citizen
Sample size:
1. Working people: 32%
2. College students: 29%
3. School students: 23%
4. Senior citizens: 16%
Sampling region:
I have selected, of Haryana as the area of study.
•
I have chosen Bhuratwala,Poharka , Chilkani Dhab and
•
Kumthala as areas of research.
The population status of these areas can be shown in a
tabulated manner, which is given as follows:
Area Population
Questionnaire design:
As the questionnaire is self administrated one, the survey is
kept simple and user friendly. Words Used in questionnaire
are readily understandable to all respondent. Also technical
jargons are avoided to ensure that there is no confusion for
respondents.
2. Secondary data: it will be collected with the help of
books, research papers, magazines, news papers, journals,
Internet, etc.
Review of Literature
Rural market is one of the best opportunities for the FMCG
sector. In some sense we can say that rural market is future
of FMCG.
INTRODUCTION
“India lives in her villages”.
As described by Adi Godrej, Chairman, Godrej
Group – “The rural consumers are discerning and the
rural market is vibrant. At the current of growth, it
will soon outstrip the urban market. The rural market
is no longer sleeping but we are”.
Before gamboling into issues like where the Indian
rural market stands and the opportunities for corporate’s to
explore there... let's look at the definition of urban and rural
India. The Census defined urban India as - "All the places
that fall within the administrative limits of a municipal
corporation, municipality, cantonment board etc or have a
population of at least 5,000 and have at least 75 per cent
male working population in outside the primary sector and
have a population density of at least 400 per square
kilometer. Rural India, on the other hand, comprises all
places that are not urban!"
In our country over 70%of the total population live in
villages. There are states like U.P, M.P, Bihar, Rajasthan and
Orissa where rural population varies form 8 to
Now for some facts and figures The Indian rural market
today accounts for only about Rs. 8 billion (53 per cent -
FMCG sector, 59 per cent durables sale, 100 per cent
agricultural products) of the total ad pie of Rs. 120 billion,
thus claiming 6.6 per cent of the total share. So clearly there
seems to be a long way ahead.
Time and again marketing practitioners have waxed
eloquent about the potential of the rural market. But when
one zeroes in on the companies that focus on the rural
market, a mere handful names come to mind. Hindustan
Lever Limited (HLL) is top of the mind with their successful
rural marketing projects like 'Project Shakti' and 'Operation
Bharat'. The lynchpin of HUL's strategy has been to focus on
penetrating the market down the line and focusing on price
point. Furthermore, activating the brand in the rural market
through activities, which are in line with the brand itself, is
what sums up HUL's agenda as far as the rural market is
concerned informs Mindshare Fulcrum general manager R
Gowthaman. Amul is another case in point of aggressive
rural marketing. Some of the other corporates that are
slowly making headway in this area are Coca Cola India,
Colgate, Eveready Batteries, LG Electronics, Philips, BSNL,
Life Insurance Corporation, Cavin Kare, Britannia and Hero
Honda to name a few.
Khaitan fans' ad on a horse Wheel's wall
cart painting
We can safely say that until some years ago, the rural
market was being given a step-motherly treatment by many
companies and advertising to rural consumers was usually a
hit and miss affair. More often than not, the agenda being to
take a short-cut route by pushing urban communication to
the rural market by merely transliterating the ad copy.
Hence advertising that is rooted in urban sensitivities didn't
touch the hearts and minds of the rural consumer. While,
this is definitely changing, the process is slow. The greatest
challenge for advertisers and marketers continues to be in
finding the right mix that will have a pan-Indian rural appeal.
Coca Cola, with their Aamir Khan Ad campaign succeeded in
providing just that.
Lifebuoy's wall painting in rural India
Clearly the main challenge that one faces while dealing with
rural marketing is the basic understanding of the rural
consumer who is very different from his urban counterpart.
Also distribution remains to be the single largest problem
marketers face today when it comes to going rural.
"Reaching your product to remote locations spread over
600,000 villages and poor infrastructure - roads,
telecommunication etc and lower levels of literacy are a few
hinges that come in the way of marketers to reach the rural
market," says MART managing director Pradeep Kashyap.
Citing other challenges in rural marketing, Patankar says,
"Campaigns have to be tailor made for each product
category and each of the regions where the campaign is to
be executed. Therefore a thorough knowledge of the
nuances of language, dialects and familiarity with prevailing
customs in the regions that you want to work for is essential.
The other challenge is the reach and the available means of
reaching out to these markets, hence the video van is one of
the very effective means of reaching out physically to the
rural consumers."
The fact of the matter remains that when compared to the
Indian urban society, which is turning into a consumerism
society; the rural consumer will always remain driven by his
needs first and will therefore be cost conscious and thrifty in
his spending habits. "Decision-making is still conscious and
deliberated among the rural community. But nevertheless,
the future no doubt lies in the rural markets, since the size of
the rural market is growing at a good pace. There was a time
when market predictions were made on the basis of the
state of the monsoon but this trend has changed over the
years; there is a large non farming sector, which generates
almost 40 per cent of the rural wealth. Hence the growth in
the rural markets will be sustained to a large extent by this
class in addition to the farmer who will always be the
mainstay of the rural economy," affirms Patankar.
Ultimately, the ball lies in the court of rural marketers. It's all
about how one approaches the market, takes up the
challenge of selling products and concepts through
innovative media design and more importantly interactivity.
INDIA INFRASTRUCTURE
The best barometer of country’s economic standing is
measured by its GDP. India, the second most populated
country of more than 1100 million has emerged as one of
the fastest growing economies. It is a republic with a federal
structure and well-developed independent judiciary with
political consensus in reforms and stable democratic
environment .In 2008-09 India’s economy-GDP grew by 6.5%
due to global recession. In the previous four years,economy
grew at 9%.The Indian economy is expected sustain a
growth rate of 8% for the next three years upto 2012. With
the expected average annual compounded growth rate of
8.5%, India's GDP is expected to be USD 1.4 trillion by 2017
and USD 2.8 trillion by 2027. Service sector contribute to
50% of India‘s GDP and the Industry and agriculture sector
25% each.
The market for input gets interlocked with other markets like
output, consumer goods, money and labor.
green
revolution)
II Mid-
Sixties
Marketing Agricultur Urban Rural
(Green
Of al
revolution
to Pre- Agricultur Inputs
liberalizati al Inputs
on period)
III Mid- Consuma
Nineties bles And
Rural Urban Rural
(Post-
Durables &
liberalizati Marketing
For Rural
on period
on 20th Consumpt
RURAL INFRASTRUCTURE:
1) 46 percent of villages are connected by all weather roads.
In the early 2000s, around 700 million people, i.e. 70% of the
Indian population lived in 6,27,000 villages, in rural areas. Of
this, 90% were concentrated in villages with population less
than 2000.3 According to a study conducted in 2001 by the
National Council for Applied Economic Research (NCAER),
there were as many "middle income and above" households
in rural areas as there were in urban areas. There were
almost twice as many "lower income households" in rural
areas as in urban areas. There were 2.3 million "highest
income" households in urban areas as against 1.6 million in
rural areas. NCAER projections indicated that the number of
"middle income and above" households was expected to
grow to 111 million in rural India by 2007, compared to 59
million in urban India. Gone were the days when a rural
consumer had to go to a nearby town or city to buy a
branded product. The growing power of the rural consumer
was forcing big companies to flock to rural markets. At the
same time, they also threw up major challenges for
marketers.
FMCG
There was a time when the FMCG companies ignores rural
market, they took no any interest to produced or sell
products in rural market in India. It was the initial stage of
FMCG companies in India. As per as the time had
passed, the strategy and marketing style of FMCG
companies had been changed.
The rural market is the one of the best opportunity for the
FMCG sector in the India. It is wider and less competitive
market for the FMCG. As the income level of the rural
consumers increasing, the demand of FMCG is
increasing continuously.
Top Players in FMCG Sector
1. Hindustan Unilever limited (HUL)
2. ITC (Indian Tobacco Company)
3. Nestle India
4. GCMMF (AMUL)
5. Dabur India
Secondary Players
1. Colgate-Palmolive (India)Ltd.
2. Godrej Consumers Product Ltd.
3. Nirma Ltd.
4. Tata Tea Ltd.
5. Parle Agro
Retail
The rural retail market is currently estimated at US$ 112
billion, or around 40 per cent of the US$ 280 billion retail
market. Major domestic retailers like AV Birla, ITC, Godrej,
Reliance and many others have already set up farm linkages.
Hariyali Kisan Bazaars (DCM) and Aadhars (Pantaloon-Godrej
JV), Choupal Sagars (ITC), Kisan Sansars (Tata), Reliance
Fresh, Project Shakti (Hindustan Unilever) and Naya Yug
Bazaar are established rural retail hubs.
Telecommunication
A Gartner forecast revealed that Indian cellular services
revenue will grow at a compound annual growth rate (CAGR)
of 18.4 per cent to touch US$ 25.6 billion by 2011, with most
of the growth coming from rural markets. Also, a joint
Confederation of Indian Industries (CII) and Ernst & Young
report reveals that of the next 250 million Indian wireless
users, approximately 100 million (40 per cent) are likely to
be from rural areas, and by 2012, rural users will account for
over 60 per cent of the total telecom subscriber base in
India.
Consumer durables
A survey carried out by RMAI has revealed that 59 per cent
of durables sales come from rural markets.
Samsung has also rolled out its 'Dream Home' road show
which was to visit 48 small towns in 100 days in an effort to
increase brand awareness of its products. Samsung expects
that its rural revenues would increase to US$ 287.7 million in
2009 from US$ 164.4 million last year. The company also
plans to expand its sales channel by 25-30 per cent in rural
India.
Group 01 -06 09
Above Rs. 1.6 3.8 5.6
100,000
Rs. 77,001- 2.7 4.7 5.8
100,000
Rs. 50,001- 8.3 13.0 22.4
77,000
Rs. 25,001- 26.0 41.1 44.6
50,000
Rs.25,000 & 61.4 37.4 20.2
below
• Growth in consumption:
Per capita household expenditure (in
Rs.)
2001 – 02 2006 – 07
Income Rural Rural
groups Tot Tot
No. % No. %
al al
High 0.26 0.0 26 0.52 0.1 23
7 .9 2 .1
Middle 12.0 7.7 64 16.7 10. 61
4 3 .2 2 32 .8
Low 5.7 5.0 88 3.68 3.5 95
9 .7 2 .7
Total 18.0 12. 71 20.9 13. 66
4 89 .4 0 96 .7
Rate %
Popular Maturit 2 Growth
soaps y
Premium Late 11 Early
soaps growth growth
Washing Late 6 Early
powder growth growth
Skin Maturit 1.1 Growth
creams y
Tea Maturit 4 Growth
y
Selling frequently
PURCHASE BEHAVIOR:
Rural people can buy only from three places includes:
• From the shop in the same village
• Weekly bazaar
• From the shop of nearby town.
• Availability
The first challenge is to ensure availability of the product or
service. India's 627,000 villages are spread over 3.2 million
sq km; 700 million Indians may live in rural areas, finding
them is not easy. However, given the poor state of roads, it
is an even greater challenge to regularly reach products to
the far-flung villages. Any serious marketer must strive to
reach at least 13,113 villages with a population of more than
5,000. Marketers must trade off the distribution cost with
incremental market saturation. Over the years, India's
largest MNC, Hindustan Lever, a subsidiary of Unilever, has
built a strong distribution system which helps its brands
reach the interiors of the rural market. To service remote
village, stockiest use autorickshaws, bullock-carts and even
boats in the backwaters of Kerala. Coca-Cola, which
considers rural India as a future growth driver, has evolved a
hub and spoke distribution model to reach the villages. To
ensure full loads, the company depot supplies, twice a week,
large distributors which who act as hubs. These distributors
appoint and supply, once a week, smaller distributors in
adjoining areas. LG Electronics defines all cities and towns
other than the seven metros cities as rural and semi-urban
market. To tap these unexplored country markets, LG has
set up 45 area offices and 59 rural/remote area offices.
• Affordability
• Acceptability
• Awareness
The key dilemma for MNC’s ready to tap the large and fast-
growing rural market is whether they can do so without
hurting the company's profit margins.
EDUCATION
CUSTOMIZATIONN
Product
Pricing
marketers need to step into the shoes of the rural folk while
creating product promotion campaigns. Another unique
feature of rural markets is that the Decision making process
is collective. The persons involved in the purchase process -
influencer, decider, buyer, one who pays can all be different.
So marketers must address brand messages in their
campaigns at several levels. Apart from regular household
goods, several agribusiness companies have also started
providing gift schemes with offers for free jewellery that
influences the ladies to pressure the farmers to purchase
agricultural inputs from select companies. This promotion
strategy thus makes women influence purchase decisions
that they would ordinarily not be involved in.
• Television.
• Cinema.
• Radio
Place
Significance of Distribution
No matter how well devised a company’s product, pricing or
promotion strategy, the most crucial link in ensuring the
success of rural marketing efforts is distribution. Distribution
must be strengthened and this would raise investment cost
barriers for new entrants. In Rural India, the selection and
use of distribution channels is a nightmare. The reason for
this is very clear when we consider that on an average,
Urban and Rural India both have approximately 3 million
retail outlets. However, Urban India has only 4,000 towns
where these outlets are located. On the other hand, Rural
India’s 3 million outlets are located in 6.3 lakh villages. Thus,
marketers are faced with the problem of feeding 3 million
shops located in vastly diverse areas each of which records
an average sale of only Rs.5,000 per outlet. Further
compounding this problem is the fact that even this meager
sale is mostly on credit. The diversity in the distribution of
shops is the self-limiting factor in terms of servicing the rural
distribution network.
The distribution of outlets however shows that a marketer
need not be present in all markets at all times. Being present
in 6 lakh villages is virtually impossible for an organization of
any size. Rural wealth and demand is concentrated typically
at satellite towns, district headquarters, assembly markets
and such central locations. Rural distribution has a rigid
hierarchy of markets that make channel decisions relatively
structured.
It is essential for rural marketing companies to understand
this hierarchy. Rural folk are habituated to traveling once a
week for their weekly purchases to a satellite town. They do
not expect such items to be present in every village. For
durables where the outlay involved is typically large, the
purchase would be made in an assembly market for reasons
of choice and availability of adequate cash flow. This is due
to the fact that it is at assembly markets that auction yards
are present where the farmers congregate to sell their
output. After such sale of produce, they are cash rich and
can afford to make such purchases. It is therefore not
necessary for a marketer of TV sets to take their distribution
channel all the way down to the village shop. A TV will not be
sold there as the cash flow does not exist at that point in the
hierarchy of markets. A television distributor must be
present at assembly markets which are much smaller in
number, more controllable, easier to reach and service.
Keeping the hierarchy in mind will help decide the optimum
level of penetration required to reach a critical mass of rural
consumers.
• BY DEVELOPING RURAL-SPECIFIC
PRODUCTS
Many companies are developing rural-specific products.
Keeping into consideration the requirements, a firm develops
these products. Electrolux is working on a made-for India
fridge designed to serve basic purposes: chill drinking water,
keep cooked food fresh, and to withstand long power cuts.
• MELAS
Melas are places where villagers gather once in a while for
shopping. Companies take advantage of such events to
market their products. Dabur uses these events to sell
products like JANAM GHUTI (Gripe water). NCAER estimates
that around half of items sold in these melas are FMCG
products and consumer durables. Escorts also display its
products like tractors and motorcycles in such melas.
• PAINTINGS
A picture is worth thousand words. The message is simple
and clean. Rural people like the sight of bright colors. COKE,
PEPSI and TATA traders advertise their products through
paintings.
Product Strategies
The specific strategies, which can be employed to develop or
modify the products to targets the rural market, can be
classified as follows:
Nirma made a peeli tikki especially for those peeli tikki users
who might have experienced better cleanliness with the
yellow colored bar as compared to the blue one although the
actual difference is only of the color. e.g.: Coca-Cola
targeted the whole Indian rural market with the positioning
of “Thanda Matlab Coca-Cola” advertisements because most
of the villagers say when wanting a drink refer to it as
Thanda…… so Coca-cola used that word.
Pricing strategies
1. Low cost/ cheap products: This follows from the
product strategy. The price can be kept low by low unit
packaging’s like paisa pack of tea, shampoo sachets, vicks 5
grams tin, etc. this is a common strategy widely adopted by
many manufacturing and marketing concerns.
Merits:
• Wholesalers
The Indian wholesaler is principally a Galla – Kirana (food-
grain) merchant who sustains the belief that business is
speculative rather than distributive in character.
• Retailers
There are different kinds of retailers.
• CREDIBILITY: -
He enjoys the confidence of the villagers.
His views are accepted and followed by the rural
people whose awareness and media exposure
levels are low.
The urban retailer is not trusted.
He is seen as a businessman with profit motto.
His view points are evaluated with other sources of
information.)
• INFLUENCE LEADER: -
• RELATIONSHIP MARKETER
Village retailer practices relationship marketing.
He caters to a set of buyers who have income from
immovable land resources and would be static
over a much longer time span.
The relationship could extend beyond three
generations, backed by historical credibility of the
retailer as a product referral.
• HARBINGER OF CHANGE
In an environment relatively isolated from
external developments, he has been harbinger of
change.
He is one of the main sources of information and
opinion as well as supplier of product and
services.
(As against this, we find urban retailer, wielding
limited influence in changing the product choices
and quality of life of consumers.)
• Vans
Mobile vans long since, have an important place in
distribution and promotion of the products in villages.
Media Vehicles
Video Vans
Folk Media
Animal Parade
Transit Media
• Formal media
It includes Press and print, TV, Cinema, Radio, and Point of
purchase and Outdoor advertisement. Reach of formal media
is low in rural households (Print: 18%, TV: 27%, Cinema:
30%, and Radio: 37%) and therefore the marketer has to
consider the following points:
• Television:
It has made a great impact and large audience has been
exposed to this medium. HLL has been using TV to
communicate with the rural masses. Lifebuoy, Lux, Nihar
oil etc are some of the products advertised via television.
Regional TV channels have become very popular
especially in Southern states. Examples: SUN TV is very
popular even in rural areas in Tamil Nadu and Asianet is a
preferred regional channel in Kerala. Many consumer
goods companies and fertilizer companies are using these
TV channels to reach the rural customer.
• Radio:
Radio reaches large population in rural areas at a relatively
low cost. Example: Colgate, Jyoti Labs, Zandu Balm, Zuari
industries are some of the companies using radio
communication programme. There are specific programmes
for farmers like Farm and Home/Krishi Darshan in regional
languages. The farmers have a habit of listening to regional
news/agricultural news in the morning and the late evening.
The advertisement has to be released during this time to get
maximum coverage in rural areas. Another advantage is that
the radio commercial can be prepared at short notice to
meet the changing needs of the rural folk. Example: Release
of a pesticide ad at the time of outbreak of a pest or disease
in crops.
• Cinema:
About 65% of the earnings from cinema are from rural
markets. Film viewing habits is high in certain states like
Tamil Nadu, Karnataka and Andhra Pradesh. Village
theatres do roaring business during festivals by having
four shows per day. The monthly charge for showing an ad
film is within Rs.500. Local distributor or dealer who has
good contacts with cinema houses in villages can easily
monitor this activity. Examples: Films on products like
Vicks, Lifebuoy and SPIC fertilizers are shown in rural
cinema halls. Apart from films, Ad slides can also be
screened in village theatres.
• Outdoor advertisements:
This form of media, which includes signboards, wall
painting, hoarding, tree boards, bus boards, dealer
boards, product display boards etc, is cost effective in
rural areas. Symbols, pictures and colours should be used
in POPs meant for rural markets so that they can easily
identify the products. Generally rural people prefer bright
colours and the marketer should Utilize such cues.
• Point of purchase:
Display of hangings, festoons and product packs in the
shops will catch the attention of prospective buyers.
However a clutter of such POP materials of competing
companies will not have the desired effect and is to be
avoided.
• Wall paintings:
It is an effective and economical medium for communication
in rural areas, since it stays there for a long time depending
upon the weather conditions. The cost of painting one
square foot area is just Rs.10. Retailers welcome painting of
their shops so that the shop will look better. Walls of farm
houses, shops and schools are ideal places for painting and
the company need not have to pay any rent for the same.
The walls have to be painted at least one or two feet from
ground level. It is better to take permission of the owner.
Very often the owner takes responsibility for taking care of
the wall painting. Painting to be avoided during election time
and rainy season. The matter should be in the form of
pictures, slogans for catching the attention of people.
Companies marketing TV, fans, branded coffee/tea,
toothpaste, pesticides, fertilizers etc. use wall painting as
promotion medium in rural areas.
• Tree boards:
These are painted boards of about two square feet in
dimension having the picture or name or slogan of the
product painted on it. The cost of such a painted board is
about Rs.80. These boards are fixed to the trees on both
sides of the village road at a height of about 10 feet from
ground level. These boards attract the attention of slow
moving vehicles like cycles, bullock carts and tractors and
people walking on the road. Considering the poor condition
of roads, even the buses move at slow speed through village
road. Fertilizer and pesticide companies in rural areas
extensively use tree boards. These are low priced promotion
items and can be used by consumer goods companies too.
• Group meeting:
Group meetings of rural customers as well as prospects are
an important part of interpersonal media. The company is
able to pass on the message regarding benefits of the
products to a large number of customers through such
meetings. Group meeting of key customers are conducted by
banks, agricultural inputs and machinery companies in rural
areas. The bankers visit an identified village, get the village
people in a common place and explain the various schemes
to the villagers. Such meetings could be organized in
prosperous villages for promoting consumer durables and
two wheelers also. Example: MRF Tyres conduct tractor
owners meet in villages to discuss repairs and maintenance
of tractors.
• Opinion leaders:
Villagers place more emphasis on the experience of
others who have used a product/brand to make purchase
decision. Opinion leader is a person who is considered to be
knowledgeable and is consulted by others and his advice is
normally followed. Such opinion leaders could be big
landlords, bank official, panchayath-president, teachers,
extension workers etc. Examples: a) Mahindra Tractors use
bankers as opinion leaders for their product. b) Asian Paints
promoted its Utsav brand of paint by painting the village
Sarpanch’s house a few months prior to the launch if the
branch to demonstrate that the paint does not peel off.
• The Melas:
Melas are of different types i.e. commodity fairs, cattle fairs
and religious fairs and may be held only for a day or may
extend over a week. Many companies have come out with
creative ideas for participating in such melas. Examples: a)
Britannia promotes Tiger Brand Biscuits through melas. b)
The mahakumbh at Allahabad is the biggest mela in India.
HLL has put up 14 stalls in the mela grounds for promoting
Lifebuoy. Handcarts have been deployed for increasing
access.
• Folk dances:
These are well-appreciated form of entertainment
available to the village people. The folk dance “Kuravan
Kurathi” is popular in Tamil Nadu. The troupe consists of
dancers, drummers and musicians and they move in a
well-decorated van from one village to another village
singing and dancing. In a day the troupe covers about 8-
10 villages. As soon as the van reaches a village, film
songs are played to attract the attention of the villages.
This is followed by folk dances. Mike announcement is
made about the company’s products and leaflets are
distributed. After the dance programme, queries, if any,
about the products are answered by the sales person. Folk
dance programme costs about Rs.5000 per day and
therefore these programmes are conducted during the
peak season in selected villages. Examples: Fertilizer and
pesticide companies organize folk dance programmes
during peak season in selected markets. Thumps Up has
sponsored Lavnis, the folk dance programme of
Maharashtra and over 30 programmes have been
arranged in selected rural markets.
• Field demonstration:
This is based on the extension principle “seeing is believing”
and is one of the most effective methods to show the
superiority of the company’s products to the customers. A
progressive farmer who is an opinion leader is selected and
the demonstration is conducted in his field in the presence of
a group of farmers in the village. The farmers observe the
results in the field and the local dealer calls on them in their
farms and persuades them to buy the particular brand of
pesticide or fertilizer. Examples: a) Spraying a particular
brand of an insecticide against insect pests and showing the
farmer how effectively the insects are controlled. b)
Demonstrating the use of tractor/implements for different
agricultural operations. c) Hawkins pressure cooker has
demonstration representatives who carry out demos in rural
households. The representative receives 1% commission for
every customer who approaches the dealer via
demonstrations. e) Similarly effectiveness of detergents,
pressure cookers, vacuum cleaners and mosquito coils could
be promoted by demonstrations in selected markets.
• Field days:
These are extension of field demonstrations. One of the main
objectives of following modern agricultural practices is to
increase the yield. The company organizes demonstrations
in a piece of land belonging to progressive farmers. All the
fertilizers, pesticides, nutrients etc. are applied after making
field observations. Just before harvest, all the important
farmers are invited to see demonstration plot and see for
themselves how the yields are better in the plot compared to
other fields. Field demonstrations/field days consume lot of
time and efforts and therefore have to be planned well.
• Information centers:
They provide latest information on cultivation of crops,
fertilizer application, weed, management and control of
pests and diseases. Experienced agricultural graduates who
make frequent visits to the field and advice farmers on
modern agricultural practices manage the centers. They also
provide information on farm implements, seeds, fertilizers,
pesticides, diesel engines, sprayers and tractors etc. Many
consumer goods companies have opened show rooms in
prosperous rural areas. Example: Hero Honda has opened
extension counters with show room facilities in major rural
markets.
• Life-style marketing:
Each rural market segment has certain special features i.e.
they share common life-style traits. They include village
sports, religious events, prominent personalities and role
models. Examples: Textile mills maintaining community
gardens, Mineral water companies supplying clean drinking
water during summer festivals in villages and Consumer
goods companies sponsoring Kabaddi.
Suggestions
&recommendations
The researcher would like to suggest the
following points, so that the organizations can easily sell
their products to their consumers:
APPENDIX
1. Some Facts about the rural market
70 % of India’s population lives in 627000 villages in
rural areas. 90 % of the rural population is concentrated in
villages with a population of less than 2000. According to the
NCAER projections, the number of middle and high-income
households in rural India is expected to grow from 80 million
to 111 million by 2007. In urban India, the same is expected
to grow from 46 million to 59 million.
Toiletries
Safety Razor Blades 48%
Premium Soaps 24%
Tooth Paste 20%
Hair Oil 20%
OTC products
Medicated dress 25%
Cold Analgesic 42%
Antiseptic Creams 28%
Amazing innovator
With a queer psychology of purchase and usage, Indian rural
market is still a puzzle to marketers. In many a case, it
stretches its imagination to find surprisingly different uses of
some of the products. And the red-faced marketers admit
that they actually sell their products in areas they would
otherwise find difficult, simply because there are other uses
for them. For instance,
Questionnaire
• Name:
• Occupation:
• Monthly salary:
• a. less than 10,000
• b.10,000 –25,000
• c.25,000 –50,000
• d.More than 50,000
• Address:
Lux
Lifebuoy
Dettol
Others
Medium pack
Family pack
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n
&
q=india+infrastructure+report+200
9
&
meta
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