RURAL MARKETING

Presented By: Group 5

Introduction
Approx 638, 365 villages with 70% Indian population.

Contributes up to 60 per cent to the Indian GDP.

Growth of middle income and above household to 150 million in 2010, compared to 79 million in urban India

SOURCE: NCAER.

Potential for all the advertisers

i. ii.

Low Operating Cost Low penetrating level

iii. Competition between organized

and unorganized sector

EXAMPLES

AirtelNokia

Misconceptions about Rural India and their Implications

Rural India is all about agriculture: Agricultural contribution to GDP has come down to 17.5 %

Rural Income is mainly agricultural income and thus not certain

Rural Consumers lack Purchasing Power

 Decision Maker in the rural household is the male of the family

Rural consumers fear technology

Rural spells potential for products, especially mass consumption categories like consumer durables, non-durables or 2 wheelers.

Communication through Vernaculars Use of local language for promoting the products Changing perception

Creating awareness among people regarding various products

Addressing the basic needs Providing products with basic functionalities without any frills

Giving Indian touch Association with Indian tastes and preferences and modification of brand names according to rural understanding Promotion through models and actors Rural population is fascinated to see their favourite stars on TV Developing rural specific products Companies develop products designed to suit rural needs

Rural Tourism: Concept

Ethnic Tourism

Pilgrim Tourism

Rural Tourism

Eco Tourism

Agrarian Tourism

Nature Tourism

Marketing: Rural Tourism

Incredible India Campaign Developing and promoting rural tourism sites which have core competency in art, craft, culture, heritage, handloom, etc. Promotion of Ecotourism.com website

Road shows (Dubai road show for its Visit India 2009 tourism campaign)

Scope: Rural Tourism

Scope for targeting Indian tourists Rural tourism is in its nascent stage in India

Bharti Airtel: Rural Strategy

Provides marketing content in local languages Vans used to cover rural areas with staff who educate locals about mobile services and usage

developed a shared phone service called Public Call Offices (PCOs) in rural regions to increase awareness about its brand and services
Bharti Airtel Service Centres have been set up in villages to address customer queries and complaints as well as act as sales and distribution points

Bharti Airtel Partnership to Penetrate in Rural Areas

Bharti Airtel is sharing passive infrastructure services with Vodafone (42 percent ownership) and Idea (16 percent ownership) through its joint venture, Indus Towers Joint venture with the Indian Farmers Fertilizer Cooperative Limited (IFFCO)

Micro financing agreements in collaboration with Nokia and SKS Micro-finance

Market Size

Current: $8.1b By 2015: $20b

Strong growth in rural markets

rising rural incomes strong distribution network

Opportunities

Generics Biotechnology Outsourcing PPPs

Company
Nicholas Piramal Strepsils lozenges

Initiative
Epilepsy outreach program Builds awareness through road shows, promotions at village haats Uses stalls at fairs, slides in cinema halls Works with SEWA to educate about tuberculosis

Ajanta Pharma
Eli Lilly

Novartis
Awarded Best long-term rural marketing initiative Sandoz & Consumer Health began piloting the project in 2006

Challenges
Lack of healthcare infrastructure Lack of diagnosis Lack of timely check-up

Aim of the scheme

Create awareness Enhance local availability Design affordable health solutions Innovative approach to spread awareness among villagers

Field force is in autonomous cells. Each cell has health educators and supervisors.
They collaborate with local health professionals, pharmacy chains & NGOs to address the whole patient flow.

Novartis India has adapted its organisation & product offering to the rural markets.
Key Differentiator: offering patients integrated solutions to health problems rather than just selling products.

Arogya focused on diseases where Novartis could offer solutions including respiratory infections, genital infections, mother and child malnutrition Products selected for the project were easy to use & reduced in size Late 2006, project launched in Uttar Pradesh & western Maharashtra, hence covering population of 25m villagers across seven states Target is to reach 50m villagers

FMCG sector to India in Indian FMCG sector size poised

reach US$ 47 bn by 2013 and US$ 74 bn
by 2018, growing annually at 10-12%
By 2025, total consumption is likely to

quadruple making India the 5thlargest consumer market

Organized retail is expected to grow by

14-18% by 2015 thereby boosting FMCG growth

 Indian FMCG industry worth ~ US$ 29

bn roughly constitutes 2.2% of Indias

GDP. Within the FMCG sector, Food

products is the largest consumption category.
Strategic focus on rural marketing,

innovations, niche consumer segments, exports, life style products to further the current 10% annual sector growth.

Rural Marketing of FMCG products

Rural Market New growth frontier

Rural Market getting importance
Indian rural market currently worth US$ 9 bn is expected

to become a US$ 100 bn opportunity by 2025

Companies adopting CSR (Corporate Social Responsibility)

activities
Nirma 1970 first to tap rural market

Penetration percentage
Category Deodorants All India % 2.1 Urban % 5.5 Rural % 0.6

Toothpaste
Skin cream Shampoo Utensil Cleaner Instant Coffee Washing Powder Detergent Bar

48.6
22 38 28 6.6 86.1 88.6

74.9
31.5 52.1 59.9 15.5 90.7 91.4

37.6
17.8 31.9 14.6 2.8 84.1 87.4

Toilet Soap

91.5

97.4

88.9

Practices adopted by Companies

HLL Project Shakti Helping farmers attain revenue to increase purchasing power ITC E- Chaupal Help farmers attain weather information and market price of food and grain

Thank You!!!