LALA LAJPATRAI COLLEGESYBMS C

RURAL RURAL

INTRODUCTION

What is Rural Marketing ?Rural Marketing is defined as any marketing activity in which one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.

Rural areas of the country are areas that are not urbanized.

They have a low population density and typically much of the land is devoted to agriculture.

OVERVIEW OF RURAL INDIA India is a country of rich culture and heritage. With above

70% of the population residing in around 6 million plus villages, real India has its roots right inside this simplistic structure.

On one side are the FMCG goods and consumer durables whereas on the other hand, there are consumers in rural India which is potentially the largest market segment.

According to research, rural India buys 46% of all soft drinks, 49% of all motorcycles and 59% of cigarettes. This trend is not limited just to utilitarian products – 11% of rural women use lipstick, skin cream and other cosmetics.

RURAL MARKETING MIXMarketing Mix refers to the set of actions, tactics, tools or variables that a company uses to promote and sell its brand or product in the markets.

The 4 P’s of Marketing Mix are : Product, Price, Place & Promotion

MARKETING TOOLS MARKETING CHALLENGE

Product Acceptability

Price Affordability

Place Availability

Promotion Awareness

PRODUCT

PHILIPS VARDAAN TV is a range of low-priced, flat-screen colour televisions.

Key Features :Flat-screen colour TV with 2 speakers of 200 watts.An integrated set-top-box which provides over 200

channels in various languages.Low operating voltage of 90-270 volts.The power consumption is roughly 50-55 watts.Philips also provides one year warranty.

PRICE Philips had launched its low-priced range of CTV’s called Vardaan TV

at prices staring from Rs. 3600/- onwards to Rs. 9000/- in order to target the rural and semi-urban markets aggressively.

Financial assistance can be provided by the rural banks enabling customers to make payment on EMI basis (Easy Monthly Installments). There is no down-payment involved, the entire cost of the TV can be conveniently paid in EMI’s.

Aggressive pricing is now possible with sales volumes increasing and cost of technology going down. Its not just cutting prices but also packing in more features in our products. Philips India, which for long had shied away from playing the price game, is betting on affordability in its quest for bigger sales volumes.

PLACE

Having achieved the necessary results in urban markets, Philips are now aggressively targeting the rural markets with its ‘Vardaan’ range of TVs.

Philips has a good distribution network and provides availability, repairability and serviceability even in remote rural areas.

PROMOTION

Philips has resorted to non-traditional communication activities such as hoardings, radio, wall-paintings and graffiti in rural markets to promote its ‘Vardaan’ range of TVs.

They also offered a free portable Philips VCD player or a power radio in order to attract a larger market share.

There is also a new channel called Vardaan which broadcasts such programs that provide knowledge and create awareness regarding agriculture, education, fishing, women empowerment, voting rights, rural affairs and social welfare.

RURAL MARKET SEGMENTATIONRural Market Segmentation is a process of identifying a smaller market that exists in a larger market.

The marketer can target the market through two parameters :MASS MARKET STRATEGY

MARKET SEGMENTATION STRATEGY

SEGMENTATION VARIABLES ARE:

Geographic Variables Demographic Variables

Psychographic Variables Behaviouralistic Variables

BASES IN MARKET SEGMENTATIONGEOGRAPHIC SEGMENTATION - The geographic segmentation depends upon factors such as the region, size of the metropolitan cities, population density and climate. These factors determine the segmentation in rural areas depending on the climatic conditions and other factors.

DEMOGRAPHIC SEGMENTATION - The demographic segmentation includes the following: AGE GENDER FAMILY SIZE FAMILY LIFECYCLE INCOME OCCUPATION ETHINCITY EDUCATION RELIGION NATIONALITY

PSYCHOGRAPIC SEGMENTATION - It groups customers according to their lifestyles. Activities , interest and opinions are important tools for conducting surveys. These variables include:

ACTIVITIES OPINIONS INTEREST ATTITUDES VALUES

BEHAVIORALISTIC SEGMENTATION - It includes the actual customer behaviour towards a product. These variables include:

USAGE RATE BENEFITS SOUGHT BRAND LOYALITY USER STATUS – POTENTIAL / FIRST TIME READINESS TO BUY OCCASSION – HOLIDAYS &FESTIVALS

VIDEO

RURAL CONSUMER BEHAVIOR

Consumer Buyer Behavior refers to the buying behavior of the final consumers - individuals and households who buy goods and services for personal consumption.

About 70% of India's population lives in rural areas, thus utmost care in terms of understanding consumer psyche needs to be taken while marketing and selling products to rural India.

The Differences in Buyer Behaviour

RURAL URBAN

Conservative Innovative

Values, aspirations, needs - traditional and based on culture, social customs,

beliefs, etc .

Follow trends (including international)

Eldest male member decides Varies

Collective sanction Unheard of

UNDERSTANDING RURAL CONSUMER BEHAVIOUR

The major difference in the rural and urban market is that the rural market is underdeveloped and the consumers are less aware about the new trends and brands.

The medium of communication and promotion in the rural areas are word of mouth, print, radio, puppetry, melas, etc.

Enhance Recognition -The brand should be recognizable to the consumer and create top of the mind (TOM) consumer recall. eg. FEVICOL “MAJBOOT JOD”.

Building a Brand Image – The brand should have a personality of its own. E.g. Mahindra & Mahindra has built its brand image in the tractor sector. Bhumiputra series of tractors and Sarpanch series have done very well in the rural areas. Brand name has connected well with villagers.

RURAL TARGETING & POSITIONINGTargeting refers to evaluating each market segment's attractiveness and selecting one or more segments to enter.

During evaluation, we consider profitability, growth, limitations, etc.

During selection, we rate all the market segment and choose the one with a high rating.

During coverage, we choose undifferentiated, concentrated, etc as a strategy.

MARKET POSITIONINGMarket Positioning is finding the place in the minds of consumer and locating the brain therein.

In the process of positioning we consider:Identifying the differences with the competitor's product.Selecting the differences which have greater competitive

advantage.Communicating such differences to target audiences

effectively.

CONCLUSION

72% of the Indian population lives in the rural areas. Marketing to this population will develop a huge market with a large potential of

conversion.

The large customer base would demand creation of a vast portfolio of differentiated products as per requirements. This would generate

employment opportunities.

A culmination of this would be the contribution to the economy in the form of National Income and GDP.

Better standard of living for the rural population and also infrastructure development as a whole of the country.