Rural Marketing

Presented By: Rushikesh Bhoir (1003) Hemant Lanjekar(1018) Akshay Naik(1024) Keya Parikh(1027) Neha Patil(1030)

What is Rural Market

The census of India defines rural as any habitation with a population density of less than 400 per sq. Km, where at least 75% of male working population is engaged in agriculture and where there exits no municipality or board.

Rural Marketing
Definition: (According to Thomson)
The study of rural marketing comprises of all operations and agencies conducting them, involved in the movement of farm product food, raw materials and their derivatives such as textiles from the farms to the final consumers and the effect of such operations on producers, middlemen and 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 High product exposure and high to branded products exposure to branded products Low ad exposure, low comprehensions High ad exposure and high brand of ads low brand awareness awareness Individuals are better known and identified Low infrastructural level (such as road, electricity etc. Poor physical connectivity with other villages and towns and low mobility Individuals are less known and identified between members in the social and settlement system High infrastructural level Good physical connectivity and high mobility

Low density of population per kilometer High density of population per square of space kilometer of space

Subject Colors Linkage Entertainment Cloths

Rural Taste Bold and primary colors Cinema, Noutanki, Melas Synthetic, colorful

Urban Taste Shades of color, light, hues Theme park, Internet, Travel Denim, Cotton, Designer Red- Danger Green- Safety

Color Relevance Red- Happiness, Green- Prosperity

Marketing Mix for Rural Market

Need to adopt marketing mix to suit rural condition 1. Product Mix : The products for the rural markets will have to be simpler, and easy to use, service, or maintain Brand identity in rural markets is often created 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-up arrangement with co-operative institutions or can deploy a mobile distribution strategy through distributors

Consumer Buying Behavior

Urban

Rural

High Involvement Low involvement High Involvement Low involvement High Brand Differentiation Complex Buying Variety Seeking Complex Buying Variety Behavior Buying Behavior Behavior Seeking Buying (Economy Wrist Behavior Watch) (Economy Wrist Watch) DissonanceHabitual Buying Reducing Buying Behavior Behavior (Pressure (Cereals and cooker) pulses) (Footwear) (Medical (Insurance Services) Policy) DissonanceHabitual Reducing Buying Buying Behavior Behavior (Pressure cooker) (Cereals and (Footwear) pulses) (Insurance Policy) (Medical Services)

Low Brand Differentiation

Factors affecting Consumer Buying Behavior 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 Rural Markets

Shakti Project by HUL

HUL
HUL started the project named Shakti in 2001 with the aim of increasing the companies' rural distribution reach as well as providing rural women with income generating opportunities First executives of HUL identified the uncovered villages. the representative of the company meets the Panchayat and identify the woman who they believe will be suitable as Shakti Amma (SA).

 After training SA is ask to invest Rs 20000 which is used to buy products for selling The products are sold door to door or through petty shops at home which gives them on an average of 10% margin Main advantage of Shakti Program was that shakti ammas were able to reach far flung areas which were not possible for the company to tap on its own. The problem faced by HUL was that SAs were more inclined to stay at home and sell rather than going from door to door selling.

 The company countered this problem by hosting Shakti Days where an artificial market place was created with music and promotion and the ladies were able to sell there without countering the problem

e-Choupal By ITC
The e-Choupal was an initiative of ITC ltd to link directly with rural farmers via internet for procurement of agricultural products like wheat, soya bean. With e-choupal the power of middleman is nertralised as there is direct link between the farmers and company. The farmers can directly negotiate the sale of their produced with ITC ltd.

 Farmers have seen arise in the income level because of fall in transaction cost and improvement in quality output The system says procurement cost for ITC ltd and the benefits obtained were the elimination of intermediary activities, emarket place for spot transaction. There are presently 6500 e-choupal operation. ITC ltd plans to scale up to 20000 e-choupals by 2012 covering 100,000 villages in 15 states, servicing 15 million farmers.

Thank You