rural marketing
Post on 18-Nov-2014
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Scope of Rural Marketing
What is Rural area?• Government agencies like IRDA
(Insurance Regulatory and Development Agency and NCAER (National Council for applied Economic Research) define Rural as :
Village with a population <5000 with 75% male population engaged in agriculture etc.
population density <400 sq km
Market
What is Rural Marketing?
Developing of the market in the area as defined as Rural
hence it could be aptly said that it encompasses the activities such as developing the process to meet
this objective :
Right product at the right price to the right people at the right time.
Exchange between rural and Urban is a factor . Could be Urban to Rural: Rural to Urban, Rural to
Rural
Reasons for Going Rural
Size of the market
Largely Untapped
Too crowded Urban Market
Income on the rise/disposable income
Income from other than agriculture
Income flow from urban /abroadBetter exposure - media
Great success storiesHLL 50%Colgate 50%LG 50%Asian Paints 60%Dabur 40%Videocon 40%Cadbury’s 25%
“India lives in villages”-Mahatma Gandhi
About 285 million reside in urban India as compared to 742 million in rural India.
The number of middle income and high-income household in rural India has grown from 80 million to 111 million while urban India has grown from 46 million to 59 million. 53 per cent of all FMCGs and 59 per cent of all consumer durables are sold in rural India.
Rural marketing involves addressing around 700 million potential consumers, over 40 per cent of the Indian middle-class, and about half the country's disposable income.
The Indian rural market is almost twice as large as the entire market of USA or Russia.
The rural market for FMCG is Rs. 65,000 crore, for durables Rs. 5,000 crore, for tractors and agri-inputs Rs. 45,000 crore and two- and four-wheelers, Rs. 8,000 crore. In total, a whopping Rs. 1,23,000 crore.
Potencial of Rural Market
Move to Rural Market …encouraging Data
Rural India buys Soft Drinks approx 45% of all soft drinksAlmost 50% motor cyclesApprox 55% of cigarettesHalf the total market for TV, Fans, pressure cooker, bicycles Washing soap, tea, blades, salt, toothpowder
Coca Cola is growing over 35% in Rural areas compared to Over 22 % in Urban
According to Hasna Research , a market research farm thatHas published a Guide to Indian Markets 2006Consumer durables in Indian Villages risen sharplyTV Sales up by 200%Motorcycle by 77%There are 3000 households in rural area that earn > 50 lakhs
PROBLEMSIN
RURALMARKETING
PROBLEMSIN
RURALMARKETING
Low per capita income
Low disposable income
Inadequate fixed income(daily wages)
Majority – depends on AgriculturalIncomeAcute dependence on monsoonConsumption linked to harvest
Infrastructure problemsRoads, power
Low awareness
Communication- difficult & expensive
Too many languages
Geographic Spread
Urban & Rural Markets
Per capita Income
Disposable Income
Literacy levels
Infrastructure
Communication
Geographical Spread
Customer has many choices
Key Differences
Key
Challenges
4A
Awareness
Affordability
Availability
Acceptability
4 Ps 4 As
Promotion Awareness
Price Affordable
Product Acceptable
AvailablePlace
Mantra of SUCCESS
DEVELOPMENTAL MARKETINGDevelopmental marketing is a process through whichawareness is created
could be demonstrationcould be presentationFree samplescould be through up eg tie up with Bank tie up with Petrol/Diesel pumps (Hyndai did with IOC and PNB and SBI subsidiaries >30% sale of Hyndai from Rural/Semi Urban areas)
Awareness
Trial
Purchase
Post-Purchase Satisfaction
Colgate – program Operation Jagruti Switch from Charcoal to Colgate tooth powder
HLL - Free samples of LifebuoyCavin Kare – Free sample of Chik Champoo
PROFILE OF RURAL MARKET
RURAL CONSUMER
RURAL MARKET RESEARCH
RURAL SEGMENTATION –TARGETING & POSITIONING
RURAL MARKETING STRATEGY
RURAL PRODUCT
RURAL PRICE
RURAL DISTRIBUTION
About Rural Marketing…
CONCLUSION• Rural India offers tremendous opportunity for any company
to tap.
• Companies face many challenges in tackling the rural markets.
• Important factors being an understanding of the rural customers' needs, a reliable distribution channel, and an effective marketing communication strategy to put their message across to the rural consumer
• The Mantra(four As)
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