Rural Marketing Management by Prof Dharmendra Pandey

8/9/2019 Rural Marketing Management by Prof Dharmendra Pandey

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Rural Management

Dharmendra PandeyAssistant Professor

Amity School of Business

Amity University, Noida

@profdpandey


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Defining Rural Markets

he !ensus of "ndia defines rural as any ha#itation$

%&ith a population density of less than '(( per s)* +m*

%&here at least - percent of the male .or+ing population is engaged in

agriculture *

%&here there e/ists no municipality or #oard*


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Defining Rural Management

Rural Management can #e defined as a function that manages allactivities involved in assessing, stimulating, and converting the

purchasing po.er of rural consumers into an effective demand for

specific products and services and moving these products and

services to the people in rural areas to create satisfaction and a #etter

standard of living and there#y achieving organi0ational goals*


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Key statistics:Snapshot of india

Area 3,287mn sq km

Population 12!"# mn people

Population $r%an 28&, 'ural 72&

(o" of )illa*es!,38,3!+

Source -ensus 21


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Myth

Rural people do not buy

brands

Rural consumers buy cheapproducts

Rural market is ahomogeneous mass

Reality

Branded Consumption

accounts for 80 % of salesfor FMCGs

They seek alue for money

!t is heterogeneous


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he annual consumer dura#le mar+et for products li+e colour

tv1s,.ashing machines, refrigerators and air conditioners isgro.ing at 23( 4*

&hile the rural mar+et is 0ooming at 5- 4

6*m*c*g 7 Rs*8-((( crores 9-: 4 share in total revenues;


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Rs*'-((( cr*for tractorsRs*?((( cr*for t.o and four .heelers*

-( 4 of "ndia1s national income is generated in rural "ndia*>==,!olgate Palmolive ,oyota 7 -( 4 revenues coming

from rural areas*>ero >onda2 '( 4inetic motors 7 :( 4odre2 :(4


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Evolution of Rural Market

Phases of Rural Mar+eting

Phase " 9Before 3C8(s;

2Age of agricultural mar+eting

2 Agricultural produces li+e foodgrains and industrial

inputs li+e cotton , sugarcane,etc* .ere the primary products*

2 Rural economy .as in a primitive stage*

2raditional farming methods

2 Unorganised mar+et


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Phase "" 93C8(s23CC(s;

2 reen revolution

2 scientific farming practices2 Poverty2stric+en villages turned into cash rich centres*

2 /ponential gro.th of agricultural production

2 Shift from EAgricultural mar+etingF to E Mar+eting of agricultural inputsF

2 mergence of Mahindra G Mahindra, scorts, icher, Sriram 6ertili0ers and

"66!, ?5-, @odfreyPhilips and Perfetti ?ndia are e/plorin*ays to or*ani


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Rural Haats#$handies

Periodic markets are the oldest marketing channel in 1ndia2

$irst contact point for villagers2

3ach haatcaters to the needs of a minimum of 4 to .4villages, drawing about ,444 persons2

*he average number of outlets in a haat is ( and salese5ceed /s ' lakh on the haatday

PD)

!ooperative societies


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-ommunication

-hallen*es in 'ural -ommunication

=etro*eneity and spread

>iteracy

.edia reach

-ultural conflicts


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-ommunication

-hallen*es in 'ural -ommunication

=etro*eneity and spread

>iteracy

.edia reach

-ultural conflicts


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Rural "eelopment


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Rural "eelopment

Rural deelopmentis a strate*y desi*ned to impro)ethe economic and social life of rural poor"

Rural "eelopmentis all a%out %rin*in* chan*e

amon* rural community from the traditional #ay ofliing to progressie #ay of liing" ?t is alsoe/pressed as a mo)ement for pro*ress"


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The $nited ations definesRural "eelopment as&

'ural 6e)elopment is a process of chan*e,

%y hich the efforts of the people

themsel)es are united, those of *o)ernmentauthorities to impro)e their economic,

social and cultural conditions of

communities in to the life of the nation and

to ena%le them to contri%ute fully to

national pro*ramme"B


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"'(')*+M'T ! R$R,) ,R', C,BR!G


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*B-'CT!('. *F R$R,) "'(')*+M'T

1" 5o de)elop farm, home, pu%lic ser)ice and )illa*e

community"

2" 5o %rin* impro)ement in producin* of crops and

animals li)in* condition"

3" 5o impro)e health and education condition etc"

impro)ement of the rural people"

" 5o impro)e )illa*ers ith their on efforts"

+" 5o impro)e )illa*e communication"

.ain C%ecti)es


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.ain C%ecti)es


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+R*B)'M. ! R$R,) "'(')*+M'T

1" People related

2" A*ricultural related pro%lems

3" ?nfrastructure related pro%lems

" Dconomic pro%lems

+" Social and -ultural pro%lems

!" >eadership related pro%lems

7" Administrati)e pro%lems


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PDCP>D 'D>A5D6 P'CE>D.S


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1" 5raditional ay of thinkin*"

2" Poor understandin*"

3" >o le)el of education to understand de)elopmentalefforts and ne technolo*y"

" 6epri)ed psycholo*y and scientific orientation"

+" >ack of confidence"!" Poor aareness"

7" >o le)el of education"

8" D/istence of unfelt needs"

#" Personal e*o"


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A@'?-$>5$'D 'D>A5D6

P'CE>D.S


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1" >ack of e/pected aareness, knoled*e, skill and

attitude"

2" $na)aila%ility of inputs"

3" Poor marketin* facility"

" ?nsufficient e/tension staff and ser)ices"

+" .ultidimensional tasks to e/tension personnel"

!" Small si


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?(FAS5'$-5'A> 'D>A5D6 P'CE"

Poor infrastructure facilities like:

1"Gater

2"Dlectricity

3"5ransport

"Dducational institutions

+"-ommunication

!"=ealth

7"Dmployment

8"Stora*e facility etc"


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D-C(C.?- P'CE>D.S

1" $nfa)oura%le economic condition to

adopt hi*h cost technolo*y"

2" =i*h cost of inputs"3" $nder pri)ile*ed

rural industries


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>DA6D'S=?P 'D>A5D6

P'CE>D.1" >eadership amon* the hands

of inacti)e and incompetent people"

2" Self interest of leaders"

3" Eiased political ill


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A6.?(?S5'A5?4D P'CE>D.S

1" Political interference"

2" >ack of moti)ation and interest"

3" $nillin*ness to ork in )illa*es"

" ?mproper utili


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.C*+' / !M+*RT,C' *F

R$R,) "'(')*+M'T


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!mportance of Rural "eelopment

Rural deelopment is a dynamic process, hich ismainly concerned ith the rural areas" 5hese include

A*ricultural *roth, puttin* up of economic and social

infrastructure, fair a*es as also housin* and housesites for the landless, )illa*e plannin*, pu%lic health,

education and functional literacy, communication etc"

Rural deelopmentis a national necessity and has

considera%le importance in ?ndia


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Rural deelopment is needed because&

1" 5o de)elop rural area as hole in terms of culture,

society, economy, technolo*y and health"

2" 5o de)elop li)in* standered of rural mass"

3" 5o de)elop rural youths, children and omen"

" 5o de)elop and empoer human resource of rural area interms of their psycholo*y, skill, knoled*e, attitude and

other a%ilities"

+" 5o sol)e the pro%lems faced %y the rural mass for their

de)elopment"


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!" 5o de)elop infrastructure facility of rural area"

7" 5o pro)ide minimum facility to rural mass in terms of

drinkin* ater, education, transport, electricity andcommunication"

8" 5o de)elop rural institutions like Panchayat,

cooperati)es, post, %ankin* and credit"

#" 5o de)elop rural industries throu*h the de)elopment ofhandicrafts, small scaled industries, )illa*e industries,

rural crafts, cotta*e industries and other related economic

operations in the rural sector"

1" 5o de)elop a*riculture, animal hus%andry and othera*ricultural related areas"


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11" 5o restore unculti)ated land, pro)ide irri*ationfacilities and moti)ate farmers to adopt impro)ed seed,

fertili


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1!" 5o impro)e rural peoples participation in the

de)elopment of state and nation as hole"

17" 5o impro)e scopes of employment for rural mass"

18" For the sustaina%le de)elopment of rural area"

1#" 5o eliminate rural po)erty"

2" 5o empoer them"


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Additional Ps of 'ural .arketin*

Passion

Passion to earn @oodill for the company"

Passion to ser)e and educate the consumer

Passion to *i)e 1& to the rural marketin* effort

Pace


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As of 'ural .arketin* .i/

Afforda%ility

A)aila%ility

Aareness

Accepta%ility


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de%elo&ment e'ercise The (i%e!Year

6or the purposes of planning, the overnment of "ndia has classified

economic activity into three maor sectors$

Primary sector: "ncludes agriculture and allied activities such as

livestoc+, fishing, and forestry*

Secondary sector:"ncludes mining and manufacturing activities*

Tertiary sector: ncompasses all services such as transport,

communication, trade, financial services and community services


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Transition o) the Rural Econom*

1" Food *rain crops

2" Cn land acti)ities

3" Farm acti)ities

1" (onfood *rain crops, cash crops

2" Cff land allied acti)ities likeli)estock and fisheries"

3" (onfarm acti)ities, includin*

manufacturin* and ser)ices

Th R l E i $


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The Rural Economic $tructure


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Mechani+ation and In&uts

"ndia is leading tractor2producing country*

Annual production25*- la+h tractors

la+h pump sets

' la+h po.er threshers

he consumption of fertili0ers has increased #y :((4 #et.een 3C?(2?3 to 5((32

(5

he gross irrigated area has gro.n from 5C4 in 3C?(2?3 to :?4 in 3CC82C*


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Incomes and Consum&tion

Rural ncomes

Rural income 9farm J non farm; contri#utes around -4 share of the total

incomes in "ndia

he per capital income for the rural sector has increased from Rs -,?: in

3CC:2C' to Rs* C,'?3 in 3CCC25((( 9 3C,'(; in ur#an "ndia;*

he share of non2farm income has increased rapidly from :5 percent in 3C(2

3 to ' percent in 3CC:2C'


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Pro,le o) E'&enditure


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Changing consum&tion &atterns

Rural Spending

Analysing the consumption patterns of non2food items of rural consumers,

.e find that the maor share of spending goes to clothing, medical services, and fuelneeds, .hereas ur#an consumers spend much more on rentals, education, and

conveyance*


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!omponents of Non2food items

o#acco6uel and light!lothing6oot.earducation

MedicaloiletriesSundry 9telephone, postal, #ar#er etc;!onsumer services!onveyenceRental and ta/es

Dura#lesntertainment


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Rural In)rastructure

ransport and communication

Road connectivity

ood connectivity, particularly in rural areas, #et.een su#2divisional to.ns

and districts head)uarters is often the primary means of supplementing pu#lic efforts

directed at providing #asic health and educational services, as .ell as infrastructuralsupport for production and trade and commerce at the local village level*

(4 of the population continues to live in rural areas and .here over -(4 of

villages .ith population of less than 3,((( have yet to #e connected #y roads*

Pradhan Mantri ram Sada+ Kona=aunched in Dec 5((( .ith the o#ective of providing connectivity through

good all .eather roads to all unconnected ha#itations .ith a population of more than

-(( persons*


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Post offices

"ndia .ith its 3,--,5C post offices as on :3 march 5((5 93,:?,-8; post

offices are in rural areas; has a postal net.or+ that is largest in the .orld*


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elevision

Doordarshan 9DD;, the national television of "ndia, is one of the largest terestrial

net.or+s in the .orld*

Reaches over ?4 of the population*

!ommunity television sets have #een introduced under various schemes

operated #y central and state governments*

Doordarshan has a ma/imum vie.ership of C(4, the lo.est cost per thousand

audience*

Advent of D> services


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Press and Print Media

As per the Registrar of Ne.spapers for "ndia 9RN";, the total num#er of

ne.spapers and periodicals pu#lished in "ndia in the year 5((( .as 'C,3'-,

appearing in 3(3 languages and dialects*

he reach of ne.spapers in rural areas is very poorL only3-4 of the copies of

ne.spapers 9regional languages; reach rural*


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elecom Services

By 5((', over ?(4 of all villages had #een connected through -*' la+h Iillage

Pu#lic elephones 9IPs;*

3*'5 crore telephone connections had #een given in rural areas*

?'4 villages are no. covered #y IPs*

P!


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Mo#ile Services


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Social "nfrastructure

Rural >ealth services

Su#2!entres

Primary >ealth Services

!ommunity >ealth services


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Pu#lic Distri#ution System

PDS means the distri#ution of essential commodoties to a large num#er of

through a net.or+ of 6PS 9 6air Prices shops; on a regular #asis 9 often referred to

as ration shops1;*

he commodities distri#uted are .heat, rice sugar, edi#le oil and +erosene*

PDS .ith net.or+ of a#out '*8 la+h 6PSs is perhaps the largest distri#ution

net.or+ of its +ind in the .orld*


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Agri "nfrastructure

Mandis

Mandis are agricultural mar+ets set up #y state governments to procure

agricultural produce directly from farmers*

=ocated in high 7production centres of different crops, these mar+ets may #ecategori0ed as grain mandis, cotton mandis, soya mandis and so on*

Most agricultural areas .ith a population of more than 3(,((( have mandis and

each mandi on an average caters to 3 :8,((( population*


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Mar+eting "nfrastructure

>aats

Despite rapid ur#ani0ation and the esta#lishment of permanent shops in

villages, haats 9Periodic mar+ets; still play an important role in the rural economy

as .ell as in the social life of villagers*

A first2point contact for villagers .ith the mar+et

A means of distri#uting local products and e/changing rural surplus*

An opportunity for #uying daily necessities as .ell as farm supplies and

e)uipment

A place for political, social, and cultural contact*


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Melas

Melas are gatherings of people a.ay from their residences for entertainment

and for the sale and purchase of goods and services at a particular time*

Melas may #e classified on the follo.ing #asis$

Religious, cultural, or commercial 9 commodity, cattle, e/hi#ition;

=ocal, regional, and national


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Shops

As per the 5((3 census, out of the 3*:: crore shops in "ndia , -- la+h are in rural

areas*

he types of outlets found in villages include the grocery store, paan shops, flourmills and tailor, #ar#er and cycle repair shops*

R$R,) "'(')*+M'T 'FF*RT. 1


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R$R,) "'(')*+M'T 'FF*RT. 1+R*GR,MM'. ,FT'R !"'+'"'C'

)o *ear )ame of the Programme after in!epen!ence3 3C'? M6! ro. More 6ood !ampaign

5 3C-( MP! apanese Method of Paddy !ultivation

: 3C-5 !DP !ommunity Development Programme

' 3C-: NS National /tension Service

- 3C83 "ADP "ntensive Agriculture District Programme

8 3C8: ANP Applied Nutrition Programme 3C8'28- "AAP "ntegrated Agricultural Area Programme

? 3C8' "!DP "ntegrated !attle Development Programme

C 3C8- NDP National Demonstration Proect

3( 3C88 igh Kielding Iarieties Programme

35 3C88 6P 6armers raining and ducation Programme

3: 3C88 6! 6armers raining !entre

R$R,) "'(')*+M'T 'FF*RT. 1


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3' 3C88 M!P Multiple !rop Programme3- 3C( DPAP Draught Prone Area Programme

38 3C( D6AP Dry 6arming Area Programme

3 3C3 "!DP "ntegrated !otton Development Programme

3? 3C3 &IDP &hole Iillage Development Programme

3C 3C3 S6DA Small 6armers Development Agency

5( 3C3 M6A= Marginal 6armers and Agricultural =a#our Agency53 3C325 ADP ri#al Area Development Programme

55 3C: >ADP >ill Area Development Programme

5: 3C' GI raining and Iisit System

5' 3C' I rushi Iigyan endra

5- 3C' DB ri#al Development Bloc+

58 3C- !ADP !ommand Area Development Programme

5 3C8 "RDP "ntergraded Rural Development Programme

5? 3C8


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:3 3C? ==P =a#2to2=and Programme

:5 3C? NARP National Agricultural Research Proect

:: 3CC RKSM raining of Rural Kouth for Self mployment

:' 3C?( NRP National Rural mployment Programme

:- 3C?( DRDA District Rural Development Agency

:8 3C?(2?3 UP ri#al Upliftment Proect: 3C?3 R=P Rural =andless mployment uarantee Programme

:? 3C?5 D&!RA Development of &omen and !hildren in Rural Areas

:C 3C?'2?- NAP National Agricultural /tension Proect

'( 3C?82? N&DP National &atershed Development Proect

'3 3C?C RK a.ahar Rogar Koana

'5 3CC(2C3 N&DPRA National &ater Development Proect for Rain fed Areas

': 3CC? NAP National Agricultural echnology Proect

'' 3CC? AMA Agricultural echnology Management Agency

'- 5((- NA"P National Agricultural "nnovation Proect

R$R,) "'(')*+M'T 'FF*RT. 1+R*GR,MM'. ,FT'R !"'+'"'C'

.2,R-,3,T! GR,M .2,R*4G,R


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.2,R-,3,T! GR,M .2,R*4G,R3*-,, 5.G.36

S.arnayanti ram S.aroagar Koana is centrally sponsored .hich

came into effect from (3O('O3CCC

Scheme #asically emphasi0es on self2employment*

Scheme covers all aspect of self2 employment li+e capacity #uilding,

su#sidy, and infrastructure facility, and credit, s+ill upgradation, insurance

etc

M,7,TM, G,"7! ,T!*,) R$R,) 'M+)*3M'T


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G$,R,T'' ,CT 5MGR'G,6 T7' ,T!*,) R$R,)'M+)*3M'T G$,R,T''. ,CT 900:;

NRA =aunched on 5nd 6e#ruary 5((8 as a momentous

initiative to.ards pro2poor gro.th* 6or the first time, rural

communities have #een given not ust a development

programme #ut also a regime of rights* he National Rural

mployment uarantee Act, 5((- 9NRA; guarantees 3((

days of employment in a financial year to any rural household

.hose adult mem#ers are .illing to do uns+illed manual .or+*

+R,"7, M,TR! GR,M .,",


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+R,"7, M,TR! GR,M .,",

Documents

Rural Marketing Management by Prof Dharmendra Pandey