problems in rural marketing

8/8/2019 Problems in Rural Marketing

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Problems in rural marketingProblems in rural marketing

Vast untapped potential, but not very easy operateVast untapped potential, but not very easy operate

Do you agree with this statement.Do you agree with this statement.


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Underdeveloped people andUnderdeveloped people and

Underdeveloped market

Underdeveloped market

Literacy level is very low.Literacy level is very low.

Modern technology is not adopted in many parts ofModern technology is not adopted in many parts of

the countrythe country

75 districts in the country are drought prones75 districts in the country are drought prones

Small land holders are not able to take advantage ofSmall land holders are not able to take advantage of

modern technologymodern technology

Low income led to low disposable incomeLow income led to low disposable income Not financially stableNot financially stable

Traditional values and habitsTraditional values and habits


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Lack of Proper PhysicalLack of Proper Physical

Communication FacilitiesCommunication Facilities Nearly half of the villages do not have allNearly half of the villages do not have all--

weather roads.weather roads.

Many villages in eastern part of the country areMany villages in eastern part of the country areinaccessible during the monsoon.inaccessible during the monsoon.

Pradhan Mantri Gram Sadak YojanaPradhan Mantri Gram Sadak Yojanapromises to connect all the villages with 500promises to connect all the villages with 500

persons and above in plains and 250 personspersons and above in plains and 250 personsand above in hill areas by alland above in hill areas by all--weather roads byweather roads by2007.2007.


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Media for Rural CommunicationMedia for Rural Communication

RadioRadio

TV networkTV network

CinemaCinema 3000 to3500 mobile theatres are3000 to3500 mobile theatres arethere in remote villagesthere in remote villages

Van on wheelVan on wheel

Print media less popular due to low literacyPrint media less popular due to low literacyrate.rate.


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Many Languages and DialectsMany Languages and Dialects

Languages only 16Languages only 16

Dialects around 850Dialects around 850


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Vastness and Uneven SpreadVastness and Uneven Spread

No. of villages is more than 5 lakhs and 146No. of villages is more than 5 lakhs and 146million household in 1990million household in 1990

67% of the villages have population less than67% of the villages have population less than500 persons accounts for 26% of the total500 persons accounts for 26% of the totalpopulation.population.

Only 2 lakh medium and large villages haveOnly 2 lakh medium and large villages have

adequate potentialadequate potential Appropriate distribution and promotionalAppropriate distribution and promotional

strategies for rural marketstrategies for rural market


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Low Per Capita IncomesLow Per Capita Incomes

Only 30% of GDP is generated in rural areasOnly 30% of GDP is generated in rural areas

by 72% of the Indias population.by 72% of the Indias population.

Distribution of income is highly skewedDistribution of income is highly skewed Long time to liquidate the stockLong time to liquidate the stock


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Logistics, Storage Handling andLogistics, Storage Handling and

TransportTransport Good storage facilities are not available.Good storage facilities are not available.

Poor transport facilities.Poor transport facilities.

Rural conveyance like camel cart, bullock cart areRural conveyance like camel cart, bullock cart are

used for physical transportation of goods.used for physical transportation of goods. Shops are not available in many villages.Shops are not available in many villages.

To enter the rural market, company have to identifyTo enter the rural market, company have to identifythe potential shopkeepers, offering them credit,the potential shopkeepers, offering them credit,

assuring periodic supplies and motivate them toassuring periodic supplies and motivate them toidentify consumer has to be done for ruralidentify consumer has to be done for ruraldistribution.distribution.


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Market Organisation and StaffMarket Organisation and Staff

Manufacturer have to make huge investmentManufacturer have to make huge investment

on marketing organisation and staff foron marketing organisation and staff for

effective control of the rural market.effective control of the rural market.

The staff have to be well trained to understandThe staff have to be well trained to understand

the rural market before entering the market.the rural market before entering the market.

Rural are not homogeneous, so differentRural are not homogeneous, so different

market will require different treatmentmarket will require different treatment


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Product PositioningProduct Positioning

Market is heterogeneous, so require differentMarket is heterogeneous, so require different

product for different market.product for different market.

Positioning strategies has to be different forPositioning strategies has to be different fordifferent market and different consumerdifferent market and different consumer

segment.segment.

Varying qualities, pack size and prices forVarying qualities, pack size and prices for

different segment.different segment.


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Hierarchy of marketsHierarchy of markets

There cannot be uniform distribution policy forThere cannot be uniform distribution policy for

all products.all products.

Rural consumer generally visit the nearbyRural consumer generally visit the nearbytown/mandies for selling and products.town/mandies for selling and products.

Distribution network has to be different forDistribution network has to be different for

commodities ad depending upon the purchasecommodities ad depending upon the purchase

habits of rural people.habits of rural people.


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Low Levels ofLiteracyLow Levels ofLiteracy

Print media is not very effective for rural consumer.Print media is not very effective for rural consumer.

Electronic media is more effective forRuralElectronic media is more effective forRural

Promotion.Promotion.

Density of population is low as well as electronicDensity of population is low as well as electronic

media is expensive , so rural promotion is expensive.media is expensive , so rural promotion is expensive.

Rural customer do less experiment with newRural customer do less experiment with new

products.products. Collaborative promotion and distribution can help theCollaborative promotion and distribution can help the

companies for rural market penetration.companies for rural market penetration.


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Seasonal DemandSeasonal Demand

75% of the rural income is generated through75% of the rural income is generated through

agricultural operation which is seasonal, theagricultural operation which is seasonal, the

demand pattern is also seasonal for agriculturaldemand pattern is also seasonal for agricultural

inputs as well as consumable goods.inputs as well as consumable goods.

Festival season, harvesting seasons and ruralFestival season, harvesting seasons and rural

melas plays important role rural purchase.melas plays important role rural purchase.


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Financial problemsFinancial problems

Inadequate banking facilitiesInadequate banking facilities

Complicated procedure and formalitiesComplicated procedure and formalities

Credit facilitiesCredit facilities


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BrandingBranding

Market segmentationMarket segmentation

Development of brand nameDevelopment of brand name

PackagingPackaging SalesmanSalesman

problems in rural marketing

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