Rural Marketing Final Presentation 5

8/2/2019 Rural Marketing Final Presentation 5

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Rural MarketingPresented By:

Rushikesh Bhoir(1003)

HemantLanjekar(1018)

Akshay Naik(1024)

Keya Parikh(1027)

Neha Patil(1030)



What is Rural Market

The census of India defines rural as anyhabitation with a population density of less

than 400 per sq. Km, where at least 75%of male working population is engaged inagriculture and where there exits nomunicipality or board.



Rural Marketing

• Definition: (According to Thomson)

The study of rural marketing comprises

of all operations and agencies conductingthem, involved in the movement of farmproduct food, raw materials and theirderivatives such as textiles from the farms

to the final consumers and the effect of such operations on producers, middlemenand consumers



Features of Rural Marketing

• Large and scattered market

• Large number of consumers

• Major income from agriculture

• Low standard of living

• Traditional outlook

• Changing demand pattern

• Infrastructure facilities

• Saving hobbits

• Media reach



Difference Between Urban &

Rural Marketing



Rural Marketing Urban Marketing

Low product exposure and low exposure

to branded products

High product exposure and high

exposure to branded products

Low ad exposure, low comprehensionsof ads low brand awareness

High ad exposure and high brandawareness

Individuals are better known andidentified Individuals are less known andidentified between members in thesocial and settlement system

Low infrastructural level (such as road,electricity etc.

High infrastructural level

Poor physical connectivity with other villages and towns and low mobility

Good physical connectivity and highmobility

Low density of population per kilometer of space

High density of population per squarekilometer of space



Subject Rural Taste Urban Taste

Colors Linkage Bold and primary colors Shades of color, light, huesEntertainment Cinema, Noutanki, Melas Theme park, Internet, Travel

Cloths Synthetic, colorful Denim, Cotton, Designer

Color Relevance Red- Happiness,Green- Prosperity

Red- Danger Green- Safety



Marketing Mix for RuralMarket

• Need to adopt marketing mix to suit ruralcondition

1. Product Mix :

The products for the rural markets willhave to be simpler, and easy to use,service, or maintain

Brand identity in rural markets is oftencreated through the visual logo of product,the color of product, or the taste of product.



2. Price Mix :

consumer is price sensitive because of low per capita income.

3. Promotion Mix :Well known film stars as a common

men communicate message well.

Media like TV, radio, wall paintings, roof

painting

Personal selling



4. Distribution Mix :

Manufacturer either can have a tie-uparrangement with co-operativeinstitutions or can deploy a mobiledistribution strategy throughdistributors



Consumer Buying Behavior



Urban Rural

High Involvement Low involvement High Involvement Lowinvolvement

High BrandDifferentiation

Complex BuyingBehavior

Variety SeekingBuying Behavior

(Economy WristWatch)

Complex BuyingBehavior

(Economy WristWatch)

VarietySeekingBuyingBehavior

Low BrandDifferentiation

Dissonance-Reducing BuyingBehavior

(Cereals and

pulses)(MedicalServices)

Habitual BuyingBehavior

(Pressurecooker)

(Footwear)(InsurancePolicy)

Dissonance-Reducing BuyingBehavior

(Pressure cooker)

(Footwear)(Insurance Policy)

HabitualBuyingBehavior

(Cereals and

pulses)(MedicalServices)



Factors affecting Consumer BuyingBehavior in Rural Marketing

• Cultural Factors

• Traditions

• The influence of Caste

• Regional influence

• Geographic location

• Exposure to urban life styles



Charecteristics of Rural consumer

• Age and stages of the lifecycle

• Occupation and income

• Econocomic circumstances

• Lifestyle



Scope of Rural Marketing

• High purchasing power

• Change in rural markets

• Media exposure

• Decision making• Growing urbanization

• Infrastructural facilities

• Rise of alert buyers• Opinion leaders



Companies Targeting RuralMarkets



Shakti Project by HUL



HUL

• HUL started the project named Shakti in2001 with the aim of increasing thecompanies' rural distribution reach as well

as providing rural women with incomegenerating opportunities

• First executives of HUL identified theuncovered villages. the representative of

the company meets the Panchayat andidentify the woman who they believe willbe suitable as Shakti Amma (SA).



• After training SA is ask to invest Rs 20000which is used to buy products for selling

• The products are sold door to door orthrough petty shops at home which givesthem on an average of 10% margin

• Main advantage of Shakti Program wasthat shakti amma’s were able to reach farflung areas which were not possible for thecompany to tap on it’s own.

• The problem faced by HUL was that SA’swere more inclined to stay at home andsell rather than going from door to door

selling.



• The company countered this problem byhosting Shakti Days where an artificial

market place was created with music andpromotion and the ladies were able to sellthere without countering the problem



e-Choupal By ITC

• The e-Choupal was an initiative of ITC ltdto link directly with rural farmers viainternet for procurement of agricultural

products like wheat, soya bean.• With e-choupal the power of middleman is

nertralised as there is direct link betweenthe farmers and company.

• The farmers can directly negotiate the saleof their produced with ITC ltd.



• Farmers have seen arise in the incomelevel because of fall in transaction costand improvement in quality output

• The system says procurement cost for ITCltd and the benefits obtained were the

elimination of intermediary activities, e-market place for spot transaction.

• There are presently 6500 e-choupaloperation. ITC ltd plans to scale up to20000 e-choupals by 2012 covering100,000 villages in 15 states, servicing 15million farmers.



Thank You…

Documents

Rural Marketing Final Presentation 5