rural presentation

8/7/2019 rural presentation

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HarenderHarender

Roll no.BRoll no.B--4343

MBA 4MBA 4thth semsem


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What is Rural Marketing?What is Rural Marketing?Rural marketing is a function which managesRural marketing is a function which manages

all those activates involved in assessing,all those activates involved in assessing,

stimulating and converting the purchasingstimulating and converting the purchasingpower into an effective demand for specificpower into an effective demand for specific

products and services, and moving them to theproducts and services, and moving them to the

people in rural area to create satisfaction and apeople in rural area to create satisfaction and a

standard of living to them and therebystandard of living to them and thereby

achieves the goals of the organization.achieves the goals of the organization.


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Rural vRural v\\s Urbans Urban

OCCUPATION:OCCUPATION:

Rural:Cultivators n few nonRural:Cultivators n few non agricultural pursuits.agricultural pursuits.

Urban:manufacturing,trade,comUrban:manufacturing,trade,com

merce,professionsmerce,professions


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System of interactionSystem of interaction

Rural:less numerous contacts perRural:less numerous contacts perman.Predominance of personal &man.Predominance of personal &

relatively durable relations.relatively durable relations.Urban:GreaterUrban:Greatercomplexity,superficiality &complexity,superficiality &standarized formality in relations.standarized formality in relations.


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Attractiveness of rural marketAttractiveness of rural market

Rural markets have become the new targets toRural markets have become the new targets tocorporate enterprises for two reasons :corporate enterprises for two reasons :

1. Urban market has become congested with1. Urban market has become congested with

too many competitors.too many competitors.

2. The market have reached a near saturation2. The market have reached a near saturationpoint.point.


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Various factors which have made ruleVarious factors which have made rule

markets viable:markets viable:--

1.1. Large populationLarge population

2. Raising prosperity2. Raising prosperity

3. Growth in consumption3. Growth in consumption

4. Life4. Life--style changesstyle changes

5. Life5. Life--cycle advantagescycle advantages

6. Market growth rates higher than6. Market growth rates higher thanurbanurban

7. Rural marketing is not expensive7. Rural marketing is not expensive

8. Remoteness is no longer a problem8. Remoteness is no longer a problem


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The Indian rural market today accounts forThe Indian rural market today accounts foronly about Rs 8 billion (53 per centonly about Rs 8 billion (53 per cent -- FMCGFMCGsector, 59 per cent durables sale, 100 per centsector, 59 per cent durables sale, 100 per centagricultural products) of the total ad pie of Rsagricultural products) of the total ad pie of Rs120 billion, thus claiming 6.6 per cent of the120 billion, thus claiming 6.6 per cent of the

total share.total share.Time and again marketing practitioners haveTime and again marketing practitioners havewaxed eloquent about the potential of the ruralwaxed eloquent about the potential of the ruralmarket. But when one zeroes in on themarket. But when one zeroes in on the

companies that focus on the rural market, acompanies that focus on the rural market, amere handful names come to mind. Hindustanmere handful names come to mind. HindustanLever Limited (HuL) is top of the mind withLever Limited (HuL) is top of the mind withtheir successful rural marketing projects liketheir successful rural marketing projects like

'Project Shakti' and 'Operation Bharat'.'Project Shakti' and 'Operation Bharat'.


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Clearly the main challenge that one facesClearly the main challenge that one faces

while dealing with rural marketing is the basicwhile dealing with rural marketing is the basicunderstanding of the rural consumer who isunderstanding of the rural consumer who isvery different from his urban counterpart. Alsovery different from his urban counterpart. Alsodistribution remains to be the single largestdistribution remains to be the single largest

problem marketers face today when it comesproblem marketers face today when it comesto going rural. "Reaching your product toto going rural. "Reaching your product toremote locations spread over 600,000 villagesremote locations spread over 600,000 villagesand poor infrastructureand poor infrastructure -- roads,roads,telecommunication etc and lower levels oftelecommunication etc and lower levels ofliteracy are a few hinges that come in the wayliteracy are a few hinges that come in the wayof marketers to reach the rural marketof marketers to reach the rural market


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Khaitan fans' ad on a horse cartKhaitan fans' ad on a horse cart


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The greatest challenge for advertisers andThe greatest challenge for advertisers and

marketers continues to be in finding the rightmarketers continues to be in finding the right

mix that will have a panmix that will have a pan--Indian rural appeal.Indian rural appeal.

Coca Cola, with theirAamir Khan adCoca Cola, with theirAamir Khan ad

campaign succeeded in providing just that.campaign succeeded in providing just that.


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"Yaara da Tashan... ads with"Yaara da Tashan... ads with

Aamir Khan created universalAamir Khan created universal

appeal for Coca Colaappeal for Coca Cola


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"Yaara da Tashan...

"ads with Aamir Khan

"Yaara da Tashan...

"ads with Aamir Khancreated universal appeal for Coca Colacreated universal appeal for Coca Cola

CocaCoca--Cola India tapped the rural market in aCola India tapped the rural market in abig way when it introduced bottles priced at Rsbig way when it introduced bottles priced at Rs

5 and backed it with the Aamir Khan ads. The5 and backed it with the Aamir Khan ads. Thecompany, on its behalf, has also been investingcompany, on its behalf, has also been investingsteadily to build their infrastructure to meet thesteadily to build their infrastructure to meet thegrowing needs of the rural market, whichgrowing needs of the rural market, which

reiterates the fact that this multinational hasreiterates the fact that this multinational hasrealised the potential of the rural market isrealised the potential of the rural market isgoing strength to strength to tap the same.going strength to strength to tap the same.


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For HLL, a one rupee or a five rupee sachet orFor HLL, a one rupee or a five rupee sachet or

the Kutti Hamam (the small Hamam) helps inthe Kutti Hamam (the small Hamam) helps ingiving the consumers a trial opportunity.giving the consumers a trial opportunity.While it does help in generate volume but notWhile it does help in generate volume but notin terms of values. "Till the time that volumein terms of values. "Till the time that volume --

value equation is managed better.value equation is managed better.Ultimately, the ball lies in the court of ruralUltimately, the ball lies in the court of ruralmarketers. It's all about how one approachesmarketers. It's all about how one approachesthe market, takes up the challenge of sellingthe market, takes up the challenge of selling

products and concepts through innovativeproducts and concepts through innovativemedia design and more importantlymedia design and more importantlyinteractivity.interactivity.


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Amul is another case in point of aggressiveAmul is another case in point of aggressive

rural marketing. Some of the other corporatesrural marketing. Some of the other corporates

that are slowly making headway in this areathat are slowly making headway in this area

are Coca Cola India, Colgate, Evereadyare Coca Cola India, Colgate, Eveready

Batteries, LG Electronics, Philips, BSNL, LifeBatteries, LG Electronics, Philips, BSNL, Life

Insurance Corporation, Cavin Kare, BritanniaInsurance Corporation, Cavin Kare, Britannia

and Hero Honda to name a few.and Hero Honda to name a few.


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Satellite dish antennas reach ruralSatellite dish antennas reach rural

IndiaIndia


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In 2000, ITC took an initiative to developIn 2000, ITC took an initiative to developdirect contact with farmers who lived in fardirect contact with farmers who lived in far--

flung villages in Madhya Pradesh. ITC's Eflung villages in Madhya Pradesh. ITC's E--

choupal was the result of this initiative.choupal was the result of this initiative.


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So the fact remains that the rural market inSo the fact remains that the rural market in

India has great potential, which is just waitingIndia has great potential, which is just waiting

to be tapped. Progress has been made in thisto be tapped. Progress has been made in this

area by some, but there seems to be a long wayarea by some, but there seems to be a long wayfor marketers to go in order to derive and reapfor marketers to go in order to derive and reap

maximum benefits. Moreover, rural India ismaximum benefits. Moreover, rural India is

not so poor as it used to be a decade or sonot so poor as it used to be a decade or soback. Things are sure a changingback. Things are sure a changing


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Typical shop in rural India stockedTypical shop in rural India stocked

with sachets, etcwith sachets, etc


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rural presentation

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