24261592 Introduction to Rural Marketing

7/29/2019 24261592 Introduction to Rural Marketing

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Prof. V.R. Kishore Kumar

M.A., M.Phil


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INDEX

Introduction

Evolution of rural marketing

Why companies go rural?Definition

Classification of rural markets

Characteristics of rural markets

Problems in rural markets

Conclusion


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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


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INTRODUCTION

The rise of rural markets has been the most important

marketing phenomenon of the 1990s, providingvolume 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.,


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The reasons why companies are going rural aremanifold.

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.


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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


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India has 597 districts,

6,38,667 villages

32% connected with pucca roads

68% stilled untapped

because of inaccessibility and lack of awareness

etc.,


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EVOLUTION OF RURAL MARKETING

THE GLORIOUS PAST(1940-1990)

THE PULS OF THE PRESENT(1990-2000)

THE FURIOUS FUTURE (2000 onwards)


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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.


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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.


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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.


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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


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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


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Classification of Rural Markets

URBAN TO RURAL

RURAL TO URBAN

RURAL TO RURAL


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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


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Changing patterns in rural patterns Increased production of food grains Increased exports

Better banking facilities

Companies make a beeline to rural markets

The power of rural communication

Government policies

Government employment schemes Socio-political changes in the wake of govt., policies


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Credit cards for formers

Cooperatives and corporate support


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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.


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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 seasonaldemand


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Different way of thinking

Distribution problem

Narrow constraint basket


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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.


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Thank You

Documents

24261592 Introduction to Rural Marketing