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RURAL MARKETING: ANOPPORTUNITY TO BE
EXPLORED
Satya C. Mehta Pankaj R. Sorathia
Kosha D. Vasavada
(BHOLABHAI PATEL COLLEGE OF BUSINESSADMINISTRATION)
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ABSTRACT
The future lies with those companies who seethe poor as their customers
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MEANINGOF RURAL MARKETING
Village with clear surveyed boundaries not havinga municipality, corporation or board, with density ofpopulation not more than 400/sq.km and with atleast 75 per cent of the male working population
engaged in agriculture and allied activities wouldquality as rural.
Fact Figures: There are 6,38,000 villages in thecountry. Of these, only 0.5 per cent has a
population above 10,000 and 2 per cent havepopulation between 5,000 and 10,000. Around 50per cent has a population less than 200.
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DIFFERENCEBETWEEN AGRICULTURALMARKETING & RURAL MARKETING
Agricultural marketing - Marketing of producedgoods of the rural areas to the urban consumers orindustrial consumers.
Rural marketing - It involves deliveringmanufactured or processed inputs or services torural producers or consumers.
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FACTSTHATMAKES RURAL INDIAATTRACTIVE
650 million people
Estimated annual size of the rural market
FMCG Rs 65,000 Crore
Durables Rs 5,000 Crore
Agri-inputs (incl. tractors) Rs 45,000 Crore 2 / 4 wheeler vehicles Rs 8,000 Crore
Of two million BSNL mobile connections, 50% are insmall towns/villages. Of the six lakh villages, 5.22 lakhhave a Village Public Telephone (VPT)
42 million rural households are availing banking servicesin comparison to 27 million Urban households.
Investment in formal savings instruments: 6.6 millionhouseholds in rural and 6.7 million in urban India.
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THREATSIN RURAL MARKETING
Under Developed People
Tradition bound
Poor Infrastructure for Communication
Lack of Mass Media Many Languages & Dialects
Scattered Market
Low Level of Literacy Rate
Popularity of spurious brands & seasonal demand
Different way of Thinking
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MARKETING STRATEGIESTO CAPTURE RURALINDIA
Marketing Strategy to capture rural India dependsupon 4 As.
Availability
Affordability Acceptability
Awareness
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4 AS
Availability - It emphasizes on the availability ofthe goods and services to the end consumers.
Affordability - It focuses on product pricing. Acompany buys from farmers directly in the lastdays closing price and even pays them fortransportation. Goods are weighted electronicallyand hence farmers are no more cheated as they
used to be previously. Hence it is a win-winsituation both for farmers and the company.
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CONTD
Acceptability - It focuses on convincing thecustomer to buy the product.
Awareness - It focuses on making people aware ofthe product. It provides active servicing up to ruraloutlets. It provides them with wide range of productcategories. Moreover it has made entrepreneursout of farmers as they are managing most of the
work; it instills in them the sense of ownership.
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WAYSTO CAPTURE RURAL INDIA
By Communicating and Changing Qualityperception
By proper Communication in Regional Languages
By understanding Cultural & Social Values By providing what Customer wants
By promoting Products with Indian Celebrities
By Target Changing Perception
By Associating themselves with India By promoting Indian Sports Team
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CONTD
By Talking about a Normal Indian
By developing Rural Specific Products
By giving Indian Names to Brands
By acquiring Indian Brands By effective Media Communication
By Adopting Localised way of distributing
By associating them with Indian Celebrities
By participating in MELA
By putting company Hoardings as COKE, PEPSI &TATAs do.
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CONCLUSION
The future is very promising for those who canunderstand the dynamics of rural markets andexploit them to their best advantage. For achievingsuccess in rural market paradigm shift in the belief
of top management those who think that RuralMarket is bundle of problem & unattractive isrequired. It is only the matter of strategicallydeveloping rural market for getting competitive
advantage. Thus the future lies with those companies who
see the poor as their customers."
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Thank You