Download - Rural markting ajahar husain NDIM
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RURAL MARKETING IN INDIA
M3 GROUP 704/10/2023 2
Presented To-
Mrs.Veena Kumar
AJAHAR HITESH
AMRITAABHISHEK
JAYATI
HARSHITMonday, April 10, 2023
3
Presented By-
Introduction
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Rural marketing is a function which manages all those activities involved in assessing Stimulating and converting the purchasing
power into an effective demand for specific Products and services, and moving them to the people in rural areas to
create satisfaction-and a standard of living to them and thereby achieves the goals of the organization.
Rural India
Population density > 400 / sq km
75 percent of the male working population is engaged in agriculture
No municipal corporation / board
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Rural market is larger than Urban Market in India.
Total size of the Rural Market for FMCG is Rs.41550
as compared to Rs 37130 crores in Urban areas.
Contd…
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Socio-economic position
• Bounded by tradition, culture, religion & community
• 60% of rural income is from Agriculture
• More than 50% rural households have monthly income < Rs 25,000
• About 14% have income > Rs. 50,000
• In recent years, 70% rural households have started saving/investing their income
Posi
tion
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In India, total potential of 3,800 towns and 6,27,000 villages.
Distribution network reached 300,000 villages.
Dilemma was how to extend its network to the remaining villages in inaccessible rural areas.
Penetrating new markets would be challenge.
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Need of Rural Marketing ?
Phases in Rural Marketing
1 Time Frame Key Events &Trends ( Pre 1960’s )
Marketing rural
products in rural areas
Agricultural inputs in
rural areas
“Agricultural marketing”
Farming methods
were primitive and mechanizatio
n was low
Markets unorganized
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2 Time Frame Key Events &Trends ( 1960s to 90s)
Green Revolution
Mahindra and Mahindra, Sri ram fertilizers and IFFCO emerge rural products were also marketed through agencies like KVIC
Contd…
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( 1990s to Present)
3 Time Frame Key Events &Trends
Demand for consumables and durables rise in
Rural areas Companies find growth
in urban markets stagnating or falling
Contd…
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Reasons for growing Interest
The large number of consumers
Largely untapped markets
Market size
Potential increase in income
Purchasing power accessibility of markets competition in Urban markets
17
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Innovation
Personal care appliances
Improved marketing strategy
Product dual benefits
Rise in organic products
Teen’s market
Key trends
18
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Brand image
Small unit packaging's
Low priced packaging's
New product designs
Utility oriented products
Product strategies for Rural Mrkets
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Availability Affordability
Acceptability Awareness
4 A’s approach of Indian Rural Market
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Hindustan Unilever , has built a strong distribution system which helps its brands reach the interiors of the rural market.
Even stockiest use auto rickshaws, bullock-carts etc.
Availability
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Some companies have addressed the affordability problem by introducing small unit packs.
Most of the shampoos are available in smaller packs.
Fair and lovely was launched in a smaller pack.
Colgate toothpaste launched its smaller packs to cater to the travelling segment and the rural consumers.
Affordability
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Acceptability
LG electronics. In 1998, it developed a customized TV for the rural market
It was a runway hit selling 100,000 sets in the first year. Because of the lack of electricity and refrigerators in the rural areas
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Coca-Cola uses a combination of TV, cinema and radio to reach 53.6 per
cent of rural households.
It doubled it’s spend on
advertising on doordarshan, which alone
reached 41 % of rural households.
It has also used banners, posters
and tapped all the local forms of
entertainment.
Awareness
Levels Of distribution channel
Producer
Consumer Segment2
Retailers Retailers
Distributors
Consumer Segment 1 Consumer Segment 3
Zero Level One Level
Two Level
Distribution channel in Rural area
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Special Campaigns
During crop harvest and marketing seasons it is beneficial to take up special promotion campaigns in rural areas
For example, 3 lakh people visited the annual Mela at Navchadi for 7 days in Meerut.
The largest such Mela is the Maha Kumbh Mela which is visited by an average of 12 crores people.
It has been observed that melas are fit to generate product exposure, package familiarity, brand reminder and word of mouth.
Uttar Pradesh 10.380
Bihar
4,993
West Bengal
4078
Jharkhand
3,996
Maharashtra
3758
States with maximum Haats
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58%21%
7%
5%
5%4%
Sales
Agriculture product Manufactured GoodsProcessed GoodsHandicraftsForest goodsServices
States with maximum Haats
Confectionary sal
t
Biscuits
Detergent
Face
cream
Talcum powder
Toothpast
e
Bathing s
oap
Sham
poo0
102030405060708090
100
Brand awareness for specific FMCG products sold at HAATS Aw
aren
ess
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17%
16%
15%14%11%
10%
6% 5%4% 3%
GroceriesToilet soapsDetergentsTeaShampooBiscuitsMatchboxCosmeticsOral careMosquito repellent
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FMCG Products preferred at Haats
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Under developed people
Low levels of literacy
Media for rural communication
Multiplicity languages and dialects
Low per capita income
Logistics storage ,handling and transportation
Problems in Rural Marketing
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FOOD ITEMS
NON-FOOD ITEMS
12268
Value of Consumption Per Month in Rural India in Rupees
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Rural Market Share
PRODUCT CATEGORY % SHARERadio 80.89
Bicycle 77.83Wrist watch 75
Fan(table &ceiling) 60Washing cake 66.88
Cooking oil 65.92Tea 59.85
Mobile 51.12Color TV 36.68
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Market share of FMCG
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Out of 20 million
rediffmail signups 60%
are from small towns.
The 24 million Kisan credit cards
issued in rural India.
Out of 2 million
BSNL mobile connection , 50% are in rural India.
In 2008-11 LIC sold 65%
of its policies in rural India.
Rural Market Share in Services
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The Rural Consumer
The Rural Demand
Other Aspects
Rural Market Environment in India
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Rural population is about 73% of the total population of India
2011 census the total rural population amounts to 80 Crore
12 Crore households – 70% of the total
Urban Population is spread over 3,200 cities
Rural population is spread across 6,27,000 villages
The Rural Consumer
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Rural India has a literacy rate of 28% compared to 55% of the whole country
There has been a change • Increase in Income• Growth in Education• Greater Media
Penetration• Marketers efforts to
reach and capture the rural market’s
Lite
racy
Lev
el
Life
styl
e
Changes in Rural Area
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Why people prefer Urban Market
Customer mindset:
low credibility among rural customers
rampant availability of
fake ,look alike products
FMCG sector loss of 18
billion each year due to
fake products
The range available at the
local retail stores is also low because people go to
towns.
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Rural market becomes attractive to corporate
Rural Demand is growing rapidly
Purchasing power has increased
Cut Throat competition in the Urban Markets
Rural market is largely unexplored and untapped
There would be opportunities for new entrants as compared to urban population
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Companies into Rural Marketing
COMPANY Rural Sales (% of total)
HUL 50
Colgate 50
Godrej 30
Cavinkare 33
Marico 25
Cadbury 25
Cipla 18
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Place of Purchase
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
grocery apparel durables farm input
own village shop
mandi
nearby village
city/urban market
haat mela
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Establishment in 1929
1st brand Parle glucose and Parle Monaco
35% share of total biscuit market
15% share of the total confectionery market
70% share in glucose biscuit
Parle has largest such manufacturing units in India
Size of the biscuit industry Rs 8,000 crore
Company Profile of Parle G
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One of the first food offered to
kids
Nutritional value
It assumed as sick
man’s diet in earlier
days.
one of the most loved
fast food for every age
group
Biscuit’s are easy to
carry , tasty to eat ,
cholesterol free and are reasonably
priced .
The Biscuit Industry
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30%
70%
Un - organized sector Organized sectors
Biscuit Industry Profile
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2007-08 2008-09 2009-10 2010-110
2
4
6
8
10
12
14
16
18
Chart Title
Annual Production of Biscuit in India
Rural market – 70%-85%
Urban market-
50%-65%
India – 1.8 Kg /capita
South-east Asian
countries – 2.5 kg – 5.5
kg
USA – 7.5kg/capit
a
Rural-Urban Penetration of Biscuits
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Biscuits for kids
Biscuit with tea
Biscuit for guest
Mini breakfast
Snacking Habits in Rural India
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Britannia Tiger and sun feast
Locally manufactured
biscuits
Unpacked baked items (e.g – khari ,
and rusk
Freshly fried item (eg: Vada
pao , bhaji , samosa)
Competitors of Parle G
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Strength of market , size of market
Income in rural India have improved
dramatically
The rural markets are growing at about two time faster pace then
urban
Reasons for opting Rural Market
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Rural marketing
Marketing Strategy
Personal Selling
Direct selling
Distribution strategies
Feeder Town
Promotion Strategies
Near market
Familiar shows
All media
Marketing Strategy of Parle G
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SWOT Analysis of Parle G
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Parle Brand
Product Range
Distribution Network
Strengths
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Dependence on retailers
Dependence on Parle –G (flagship brand)
Stores for displaying diversified Parle
Weakness
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Estimated annual growth of 20%
Increasing demand for sugar free
Using advertising aggressively
Opportunities
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Increasing distribution cost
Local bakery products
Entry of various new entrants ITC etc. .
Threats
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Vodafone came to India in 2005
Vodafone was officially launch on 27th september 2007 in Mumbai
Owned : Vodafone and Essar
Market Position : At the 3rd position
Connectivity : Presence in 16 telecom sectors
Call Rates : very cheaper
Company Profile
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Mission capturing the potential of mobile to bring socio-economic
Vision To be one of the most trusted companies in the
markets
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Passion for customers
Passion for their people
Passion for results
Passion for the world around
them
Beliefs and Values
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Total number of Vodafone Essar Subscribers : 14,15,19,840 i.e. 23.63%
of total 59,87,79,674 Indian mobile phone users
Subscribers of Vodafone
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Competitors
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Laal dukaans (red shop)
Project pappu
‘Gappa Goshti’ scheme
Vayalum vaazhvum (chennai)
Mobile Banking (with HDFC bank)
Initiatives in Rural India
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HDFC Bank, Vodafone India launch mobile
banking product for rural coverage (Jaipur)
Vodafone ties up with Handy
go to launch IVR service for rural
India
Vodafone has tied up with mobile VAS
company Handygo
Technologies
To launch IVR based service called “Behtar
Zindagi for rural India.”
Contd…
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Vodafone Airtel Tata Docomo Reliance Idea Cellular
Experience storesMini stores
465 681 348 217 369
(Urban and rural) 7125 1151 2497 1827 1105
Total 7590 1832 2845 2044 1474
Source: Vodafone
Project Pappu’s Retail Footprint
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Displays board
Schemes to distributors & retailers (commission & gifts on achieving target sales)
Tie up with local panchayat & use flash mobs (street play) on
the theme of Vodafone message
Sales Promotion in Rural
38%
62%
RuralUrban
Market Share of Vodafone
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SWOT Analysis of Vodafone
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Popular cellular service provider in India
Largest Telecom operator in the world
High brand visibility
Strong advertising with ZooZoo concept
Strengths
Price competition from BSNL and Airtel
Untapped Rural Market
Weaknesses
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Fast expanding cellular market
Latest and low cost technology
Research and development of new mobile technologies
Opportunities
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New entrant's low price offering
Saturation point in Basic telephony service
Mobile Number Portability
Threats
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Few Companies
Taking Initiatives
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Hindustan liver Limited is on the top with its successful rural marketing projects like ‘Project
Shakti' and 'Operation Bharat'.
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Coca cola invested us$ 1 billion 27 owned & 17 franchise operations using celebrities 30% revenue from rural sector
“ Thanda…” campaign different promotion in south
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Dabur In villages promote its hair oil as a substitute for mustard oil which village folks
generally used. In rural UP & Bihar
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Sonata launched project Swades, aimed at changing people's mindsets and making them
aware of the value of time in rural India
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Medimix focused brand-building initiatives—like participation at community events such as “melas” (village fairs),“haats” (markets), street theater, van campaigns, and
puppet shows
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Tata salt story begins in 1983“Namak ho Tata Ka , Tata Namak”15% spends on promotion
2004,“deshkanamak”television wall painting calendar in rural area
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Colgate incorporated in 1937 ,enjoys 50% market share “Colgate fresh energy gel” use of mass media opinion leader
strong distribution networkIn rural area
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Nokia
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References www.rmai.com www.tata.com/company/Articles www.financialexpress.com/news/rural www.colgate.co.in www.dabur.com www.cholayil.com www.trai.co.in
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