introduction to rural marketing
TRANSCRIPT
Prof. V.R. Kishore Kumar
M.A., M.Phil
INDEXIntroductionEvolution of rural marketingWhy companies go rural?DefinitionClassification of rural marketsCharacteristics of rural marketsProblems in rural marketsConclusion
“ 6,38,667 villages, 597 districts, 700 million
people, myriad of languages, many traditions and
a rich culture. A vibarant land with a long history.
Rural Indian people are known as much for their
warmth as their diversity. Welcome to the land of
mysticism. The Real Bharat”.
EXPLORE THE RURAL MARKETS, DONOT
EXPLOIT THEM
INTRODUCTIONThe rise of rural markets has been the most important
marketing phenomenon of the 1990s, providing
volume growth to all leading companies. Many
corporates have been trying get a grip on rural market.
But challenges are many: how to make the product
affordable, how to penetrate the villages with small
population, languages, brands etc.,
The reasons why companies are going rural are manifold.
Ex: high rural incomes driven by agriculture growth, mass media etc.
Marketers and manufactures are increasingly aware of the burgeoning purchasing power, vast size and demand base of the once neglected Indian hinterland. Efforts are now on to understand the attitude of rural consumers, and to walk their walk and talk their talk.
Definition of Rural:
“Village with a population of less than 5000 with 75%
of the male population engaged in agriculture”
--- IRDA & NCAER
2/3 of consumers in rural areas(700 million)
26% NI generated, increasing purchasing power
India has 597 districts,
6,38,667 villages
32% connected with pucca roads
68% stilled untapped
because of inaccessibility and lack of awareness
etc.,
EVOLUTION OF RURAL MARKETING
THE GLORIOUS PAST(1940-1990)
THE PULS OF THE PRESENT(1990-2000)
THE FURIOUS FUTURE (2000 onwards)
The glorious past(1940-1990)
1949- Asian Paints first entered
1960- HLL entered with Lifebuoy soap,
dominates presence in more than 1 lakh villages,
Colgate, Dabur followed it.
1980- Nirma,Cavincare and Marico entered,
Procter and Gamble also entered.
The pulse of Present(1990-2000)
70% of rural population lies in villages
1% increase in purchasing power leads to
increase of Rs 10,000 crores in government
revenue. Companies launching plethora of
products to cater changing life style in rural India.
The Furious of Future(2000 onwards)
The media explosion and satellite invasion have
brought about drastic changes in the consuming
habits of rural Indians and the future would hold a
lot in store for companies entering rural markets.
Why companies go rural?In the present scenario, companies operating in
India will have only two options: either to go Global or go Rural .
Today rural markets are as critical as urban markets for marketers.
Reasons: urban markets are getting saturated
a huge untapped market
rising disposable income
remittances from abroad and impact of media
Rural Marketing“Rural marketing is the process of developing,
pricing, promoting, distributing rural specific
goods and services, leading to exchange between
urban and rural markets, which satisfies consumer
demand and also achieves organisational
objectives”.
-- Ramkishen.Y
Classification of Rural Markets
URBAN TO RURAL
RURAL TO URBAN
RURAL TO RURAL
Characteristics of Rural MarketsIndia is a big country and its rural markets have varied
characteristics that change from people to people, region
to region. Some of the main characteristics of India's rural
markets are:
Diverse nature
Urban market saturation
Rising disposable income
Rising literacy levels
Spread of cable television
Changing patterns in rural patternsIncreased production of food grainsIncreased exportsBetter banking facilitiesCompanies make a beeline to rural marketsThe power of rural communicationGovernment policiesGovernment employment schemesSocio-political changes in the wake of govt., policies
Credit cards for formersCooperatives and corporate support
Problems in Rural MarketingAlthough the rural market does offer vast
potential, it should also be recognised that it is
not easy to operate there. Rural marketing is a
time consuming affair and requires
considerable investments interms of evolving
appropriate strategies.
Problems Deprived people and deprived markets Lack of proper physical communication facilities Transport Many languages and dialects Dispersed markets Low percapita incomes Low levels of literacy Prevalence of spurious brands and seasonal
demand
Different way of thinking Distribution problem Narrow constraint basket
CONCLUSION
Rural marketing will grow in importance in the coming
years. Some crude estimates point out that rural
markets are growing at the rate of Rs400 crore per
annum (at present the total estimated rural market is
growing is Rs1,00,000crore). Corporates that have
understood the psyche of rural consumers and markets
and how to work it have notched up successes.
Thank You