7 rural marketing

8/6/2019 7 Rural Marketing

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Rural MarketingRural Marketing




What is RuralWhat is Rural

Rural areas refer to country side, that Rural areas refer to country side, that are sparsely populated places and areare sparsely populated places and aredistinct from thickly populated urbandistinct from thickly populated urban

areas.areas.




Rural MarketRural Market

CensusCensus of of IndiaIndia 20012001::TheThe ruralrural market market hashas beenbeen defineddefined asas aa placeplace wherewhere thethepopulationpopulation isis not not moremore thanthan 50005000,, thethedensitydensity of of populationpopulation isis not not moremore thanthan400400 perper squaresquare kilometerkilometer andand at at least least

7575%% of of malemale populationpopulation isis engagedengaged ininagricultureagriculture..





RBIRBI:: LocationsLocations withwith populationpopulation upup toto1010,,000000 willwill bebe consideredconsidered asas ruralrural andand1010,,000000 toto 11,,0000,,000000 asas semisemi urbanurban..

NABARDNABARD:: All All locationslocations irrespectiveirrespective of of villagesvillages oror towns,towns, upup toto aa populationpopulation

of of 1010,, 000000 willwill bebe consideredconsidered asas ruralrural.. Most Most CompaniesCompanies inin FMCGFMCG:: populationpopulation

upup toto 2020,, 000000..





ConsumerConsumer DurableDurable CompaniesCompanies::PopulationPopulation belowbelow 5050,,000000 asas ruralrural..

MarketersMarketers View View:: Any Any market market that that existsexists inin anan areaarea withwith lessless thanthan 1010,,000000population,population, lowlow densitydensity of of populationpopulation

andand without without significant significant infrastructureinfrastructurefacilitiesfacilities isis ruralrural market market..





According According toto NationalNational CommissionCommission onon Agriculture Agriculture::

Rural marketing is a process which starts Rural marketing is a process which startswith a decision to produce a saleable farmwith a decision to produce a saleable farmcommodity and it involves all the aspects of commodity and it involves all the aspects of market structure or system, both functionalmarket structure or system, both functional

and institutional, based on technical andand institutional, based on technical and

economic considerations and includes preeconomic considerations and includes preand post harvest operations, assembling,and post harvest operations, assembling,grading, storage, transportation andgrading, storage, transportation and

distribution. distribution.





Definition of Corporate Rural Marketing:Definition of Corporate Rural Marketing:Rural marketing can be defined as functionRural marketing can be defined as function

that manages all activities involved inthat manages all activities involved inassessing, stimulating and converting theassessing, stimulating and converting thepurchasing power of rural consumers intopurchasing power of rural consumers into

an effective demand for specific product andan effective demand for specific product andservices and moving these product andservices and moving these product and

services to the people in rural areas toservices to the people in rural areas tocreate satisfaction and a better standard of create satisfaction and a better standard of living and thereby achieving organizationalliving and thereby achieving organizational

goals.goals.




Difference B/W Rural And UrbanDifference B/W Rural And Urban

CriteriaCriteria RuralRural UrbanUrban

OccupationOccupationMajorityMajority of of thethe peoplepeopleengagedengaged inin agricultureagriculture andandagricultureagriculture relatedrelated activitiesactivities

All All thethe peoplepeople engagedengaged ininmanufacturing,manufacturing, mechanical,mechanical,trade,trade, commerce,commerce,professions,professions, governinggoverning andandotherother nonnon--agriculturalagriculturaloccupationsoccupations..

EnvironmentEnvironment Direct Direct relationshiprelationship toto naturenatureGreaterGreater isolationisolation fromfrom naturenatureandand focusfocus onon manman--mademadeenvironment environment

DensityDensity ofofpopulationpopulation

TheThe densitydensity isis lowerlower thanthan ininurbanurban communitycommunity

GreaterGreater densitydensity thanthan inin ruralruralcommunitycommunity

HeterogeneityHeterogeneityandandhomogeneityhomogeneity ofofthethe populationpopulation

RuralRural communitiescommunities areare moremorehomogenoushomogenous inin racialracial andandpsychologicalpsychological traitstraits

MoreMore heterogeneousheterogeneous thanthanruralrural communitiescommunities

SystemSystem ofof

interactioninteraction

FewerFewer contactscontacts withwith outsideoutside

worldworld

ImpersonalImpersonal casualcasual relations,relations,superficial,superficial, standardisedstandardised

formalityformality of of relationsrelations




Marketing MixMarketing Mix

ChallengesChallenges




Marketing Mix ChallengesMarketing Mix Challenges

4 Ps (Tools)4 Ps (Tools)

Product Product

PricePrice

PlacePlace

PromotionPromotion

4 As (Challenges)4 As (Challenges)

Acceptability Acceptability

Affordability Affordability

Availability Availability

Awareness Awareness




ProductProduct--Acceptability Acceptability

ThereThere isis needneed toto offeroffer productsproducts that that suit suit thetheruralrural market market.. TheyThey havehave toto bebe simpler,simpler, anan

easyeasy toto use,use, serviceservice oror maintainmaintain..ExamplesExamples

InIn 19981998 LGLG ElectronicsElectronics developeddevelopedcustomizedcustomized televisiontelevision forfor ruralrural areasareas andandnamednamed SampoornaSampoorna.. It It waswas aa runwayrunway hit hit sellingselling 1010,,000000 unit unit inin first first yearyear..




ProductProduct--Acceptability Acceptability

BecauseBecause of of lacklack of of electricityelectricity andand absenceabsence of of refrigeratorsrefrigerators inin ruralrural areas,areas, CocaCoca ColaCola

providesprovides lowlow cost cost iceice boxes,boxes, that that isis tintin boxboxforfor newnew outlet outlet andand thermocolethermocole forfor seasonalseasonaloutletsoutlets..

Sachet Sachet packagingpackaging isis oneone alternativealternative whichwhich

hashas beenbeen usedused byby tea,tea, shampoo,shampoo, toothpastetoothpasteandand tomatotomato ketchupketchup manufacturesmanufactures totopenetratepenetrate ruralrural marketsmarkets..




PricePrice--Affordability Affordability

TheThe secondsecond challengechallenge isis toto ensureensureaffordabilityaffordability of of thethe product product oror serviceservice..

RuralRural consumerconsumer isis priceprice sensitivesensitive bcozbcoz of of hishislowerlower incomeincome levellevel..

GodrejGodrej introducedintroduced threethree brandsbrands of of Cinthol,Cinthol,FairFair Glow,Glow, GodrejGodrej inin 5050gmgm packpack at at RsRs..44--55,,meant meant specificallyspecifically forfor MP,MP, UPUP andand BiharBihar--thethesoso calledcalled BIMARUBIMARU statesstates..




PricePrice--Affordability Affordability

HULHUL hashas alsoalso launchedlaunched LifebuoyLifebuoy at at RsRs..22 forfor 5050gmgm..

CocaCoca ColaCola hashas addressedaddressed thetheaffordabilityaffordability issueissue byby introducingintroducing thethereturnablereturnable 200200mlml glassglass bottlebottle pricedpriced at at

RsRs..55..




PlacePlace--Availability Availability

TheThe thirdthird challengechallenge isis toto ensureensure thetheavailabilityavailability of of product product oror serviceservice..

India'sIndia's 627627,,000000 villagesvillages areare spreadspreadoverover 33..22 millionmillion sqsq kmkm;; 700700 millionmillionIndiansIndians maymay livelive inin ruralrural areas,areas, findingfinding

themthem isis not not easyeasy





India'sIndia's largest largest MNC,MNC, HindustanHindustan Lever,Lever,aa subsidiarysubsidiary of of Unilever,Unilever, hashas built built aa

strongstrong distributiondistribution systemsystem whichwhich helpshelpsitsits brandsbrands reachreach thethe interiorsinteriors of of thetheruralrural market market..

ToTo serviceservice remoteremote village,village, stockistsstockists useuseautorickshaws,autorickshaws, bullockbullock--cartscarts andand evenevenboatsboats inin thethe backwatersbackwaters of of KeralaKerala..





CocaCoca--Cola,Cola, whichwhich considersconsiders ruralrural IndiaIndia asas aafuturefuture growthgrowth driver,driver, hashas evolvedevolved aa hubhub andand

spokespoke distributiondistribution modelmodel toto reachreach thethevillagesvillages..

ToTo ensureensure fullfull loads,loads, thethe companycompany depot depot supplies,supplies, twicetwice aa week,week, largelarge distributorsdistributors

whichwhich whowho act act asas hubshubs.. TheseThese distributorsdistributorsappoint appoint andand supply,supply, onceonce aa week,week, smallersmallerdistributorsdistributors inin adjoiningadjoining areasareas..





LGLG ElectronicsElectronics definesdefines allall citiescities andandtownstowns otherother thanthan thethe sevenseven metrosmetros

citiescities asas ruralrural andand semisemi--urbanurban market market..ToTo taptap thesethese unexploredunexplored countrycountrymarkets,markets, LGLG hashas set set upup 4545 areaarea officesoffices

andand 5959 rural/remoterural/remote areaarea officesoffices




PromotionPromotion--Awareness Awareness

TheThe fourthfourth challengechallenge isis toto createcreateawarenessawareness inin thethe ruralrural areaarea..

WithWith largelarge partsparts of of ruralrural IndiaIndiainaccessibleinaccessible toto conventionalconventionaladvertisingadvertising mediamedia onlyonly 4141 perper cent cent

ruralrural householdshouseholds havehave accessaccess toto TVTV buildingbuilding awarenessawareness isis anotheranotherchallengechallenge





OutingOuting forfor thethe formerformer isis confinedconfined totolocallocal fairsfairs andand festivalsfestivals andand TVTV viewingviewing

isis confinedconfined toto thethe statestate--ownedownedDoordarshanDoordarshan.. ConsumptionConsumption of of brandedbrandedproductsproducts isis treatedtreated asas aa specialspecial treat treat

oror indulgenceindulgence..





HindustanHindustan LeverLever reliesrelies heavilyheavily onon itsitsownown companycompany--organisedorganised mediamedia.. TheseThese

areare promotionalpromotional eventsevents organisedorganised bybystockistsstockists..

GodrejGodrej ConsumerConsumer Products,Products, whichwhich isis

tryingtrying toto pushpush itsits soapsoap brandsbrands intointo thetheinteriorinterior areas,areas, usesuses radioradio toto reachreach thethelocallocal peoplepeople inin theirtheir languagelanguage..





CocaCoca--ColaCola usesuses aa combinationcombination of of TV,TV, cinemacinemaandand radioradio toto reachreach 5353..66 perper cent cent of of ruralrural

householdshouseholds.. It It doubleddoubled itsits spendspend ononadvertisingadvertising onon Doordarshan,Doordarshan, whichwhich alonealonereachedreached 4141 perper cent cent of of ruralrural householdshouseholds..

It It hashas alsoalso usedused banners,banners, postersposters andandtappedtapped allall thethe locallocal formsforms of of entertainment entertainment..SinceSince priceprice isis aa keykey issueissue inin thethe ruralrural areas,areas,CocaCoca--ColaCola advertisingadvertising stressedstressed itsits `magical'`magical'priceprice point point of of RsRs 55 perper bottlebottle inin allall mediamedia..





LGLG ElectronicsElectronics usesuses vansvans andand roadroadshowsshows toto reachreach ruralrural customerscustomers.. TheThe

companycompany usesuses locallocal languagelanguageadvertisingadvertising.. PhilipsPhilips IndiaIndia usesuses wallwallwritingwriting andand radioradio advertisingadvertising toto drivedrive

itsits growthgrowth inin ruralrural areasareas..

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