V Rural marketing

V Evolution of rural marketing

V What makes rural marketing attractive
V Opportunities of Indian rural marketing
V Myths about Rural Marketing
V Challenges and Strategies for Rural
Marketing
V Case Study
V ITC e- Choupal
V Conclusion
V On account of green revolution, the rural area
are consuming a large quantity of industrial
and urban manufactured products. Thus a
special marketing strategy emerged known as
Rural Marketing.
V Rural marketing involve delivering
manufactured or processed inputs or services
to rural producers or consumers.
V Ontapped rural
potential
V R

 villages
across the country
V - account for 70% of
population
V - 60% of national
demand for various
product categories
V J million kisan Credit Card have been issued
V Of the 20 million Rediffmail sign up, 60% are
from small towns. 50% of transaction from
these town .
V J2 million rural household are avaling banking
services in comparison to 27 million HHs in
urban HHs.
V Investment in formal saving instruments is 6.6
million HHs and 6.7 million HHs in urban.
Opportunities....

60 per cent of the Indian population lives in
villages
2
In the period between 2003-0J and 2008-09, the
Indian Government increased Agriculture Budget
allocation by a significant 300 per cent.

3
The Rashtriya Krishi Vikas Yojana was launched in

2007-08 with an outlay of Rs.25 thousand crore
J
increase the flow of credit to agriculture gone up
from Rs.87 thousand crore in 2003-0J to about
Rs.2.5 lakh crore in 2007-08
V - In 50 years , J0% villages have been connected
by road, in next 0 year another 30% would be
connected
V -More than 90%villages are electrified ,through
only rural homes have electric connection
V -Rural telephone density has gone up by 300%
in the last 0 years
V -No. of ´puccaµ house doubled from 22% to
J %
V -No. of ´Kucchaµ house halved from J % to
27%
V -Percentage of BPL families declined from
J6% to 27%
V -Rural literacy level improved from 36% to 59%
in past two decades
V Low penetration rates in rural areas , so there
are many marketing opportunities
Urban Rural
urable
CTV 30.J

Refrigerater 33.5

FMCGs Orban Rural

Shampoo 66.3 35.J

Toothpaste 82.2 55.6


Rural market is a homogeneous

2
Disposable income is low

3
Individuals decide about purchases

V REALITY

V Heterogeneous population
V Various tiers depending on the income
V State wise variation in rural demographics
V Literacy % in ( Kerala 90%, Bihar JJ%

V Population below poverty line (Orissa J8%,
Punjab 6%

V REALITY
V Number of middle class ( annuals income Rs J5000-
J5000-
2, 5,000

V Rural 27.J million
V Orban 29.5 million

V Per Capita annual income

V Rural Rs 9J8
V Orban Rs 9,J07
V Total Rs 2, 28
V
V Reality:

V Decision making process is collective

V Purchase process - can all be different

Challenges«.
  Onderstanding the Rural Consumer

  Poor Infrastructure

  Physical Distribution

  Channel Management

  Promotion and Marketing Communication


Availability (Place

2
Affordability (Price

3
Acceptability (Product

J
Awareness (Awareness

V ` allenges
V Regularly reach product
to the far-
far-flung villages.
V Indias 627,000 villages are
spread over 3.2 millions sq
Km ; 700 million indians
may live rural areas

V @trategies
V Strive to reach at least
3, 3 villages with a
population market
penetration
V Can reach the market bye
the following ways:
V Hindustan lever, to serve remote village ,use
auto rickshaws ,bullock-carts and even boats in
the backwaters of Kerala.
V Coca-Cola, has evolved a hub and spoken
distribution Mosel to reach the village .to
ensure full loads ,the company depot supplies
,twice a week, large distributors which who act
as hub . These distributors appoint and supply
,once a week, smaller distributors in adjoining
areas.
 AFFORABILITY

V Challenges :

V To provide at cheaper price

V Strategies :

V Introduce small unit packs.

V allenge: To gain acceptability for the product or
` allenge:
service
V @trategies::
@trategies
V Offer product or services that suit the rural market
V Easy to understand
V Coca--Cola company because of the lack of
Coca
electricity and refrigerator in the rural area ,it
provide low ²cost ice boxes ,a tin box for new
outlets and thermocol box for seasonal outlets.
outlets.
V ` allenges : less exposure to the world , low
literacy rate

V @trategies :
V Opinion leaders play a key role in popularizing
product and influence in rural market so
choose the appropriate opinion.
V Can use the following promotional methods:
V One on One contact
programs are
extremely efficient
manner to reach the
rural consumer.
V Provide an
opportunity to
V Demonstrate
V Induce Trial
V Educate
V An opportunity to
present brand stories
using better display
tools
V Large screens
V Animations
V Melas can be used for
V Retail sale points
V Sampling exercise
V Demonstration
a Marketing @trategy

 istribution @trategy

3 Promotional @trategy

Marketers need to understand the psyche of
the rural consumers .
2
intensive personal selling efforts
3
Firms should refrain from designing goods for
the urban markets and subsequently pushing
them in the rural areas
J
by utilizing the various rural folk media to
reach them in their own language

using company delivery van which can serve
two purposes
2
Annual "melas
3
fixing specific days in a week as Market Days
(often called "Haats'

J
"Mandis" or Agri-markets
the audio visuals must be planned to convey a
right message to the rural folk. The rich,
traditional media forms like folk dances,
puppet shows, etc., with which the rural
consumers are familiar and comfortable, can be
used for high impact product campaigns.