Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service. 72 percent of population is spread across large number of villages where many are sparsely populated. 62 percent of villages have population below 1000 and most villages with population below 500 DO NOT have SHOPS!
Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service. 72 percent of population is spread across large number of villages where many are sparsely populated. 62 percent of villages have population below 1000 and most villages with population below 500 DO NOT have SHOPS!
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Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service. 72 percent of population is spread across large number of villages where many are sparsely populated. 62 percent of villages have population below 1000 and most villages with population below 500 DO NOT have SHOPS!
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
tools, cattle, Market carts Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives Increase in purchasing power, because of scientific agriculture The changing life style and consumption pattern of villagers with increase in education Social mobility Improved means of transportations Saturated urban markets More and more new products demanding urban customers Penetrations of mass media such as television and its various satellite channels DEMOGRAPHIC CHARACTERISTICS 72 percent of population is spread across large number of villages where many are sparsely populated. – IRREGULARITY IN POPULATION DISTRIBUTION 62 percent of villages have population below 1000 and most villages with population below 500 DO NOT HAVE SHOPS! These characteristics point toward complexities of distribution and logistics management RURAL ECONOMY Income level in rural areas have increased over the years. Households belonging to middle-class and above constitute the bulk of ‘Consuming’ class. Consumption pattern in rural economy is also undergoing a shift. Eg: In 1983 , 66 percent of capita income was spent on food. In 2001, it declined to 59 percent. Increase in demand for other products* can be held accountable for this shift. Social and Cultural factors Social hierarchy, customs, traditions and social norms pay a significant role in determining individual and collective behavior in rural India. Caste system – Defines social status of an individual. Geographic demarcation of household – Harijan Basti and Thakur-Gaon. Aspects like these must be taken into consideration by an intelligent marketer while introducing / promoting / selling any product in rural markets. I am ATTRACTIVE This is Because…. Family Preference of clothes, food etc still decided by seniors in family. Geographic influences ACs will be a flop in regions like Shimla, Manali etc Economic factors Budget Constraints Brand preference and loyalty People in Rural areas prefer to buy from HAATS instead of any shop. Place of purchase 60% prefer HAATS due to better quality, variety & price Environment The Mukhiya’s opinion, in most cases, is shared with the rest of the village. Availability Hindustan Lever - Has built a strong distribution system which helps its brands reach the interiors of the rural market To service remote village, stockiest use auto rickshaws, bullock-carts and even boats in the backwaters of Kerala. Acceptability Because of the lack of electricity and refrigerators in the rural areas, Coca-Cola provides low-cost ice boxes — a tin box for new outlets and thermocol box for seasonal outlets. Awareness Coca-Cola uses a combination of TV, cinema and radio. It doubled it’s spend on advertising on Doordarshan, which alone reached 41 percent of rural households. It has also used banners, posters and tapped all the local forms of entertainment. Coca-Cola advertising stressed its `magical' price point of Rs 5 per bottle in all media. LG Electronics uses vans and road shows to reach rural customers. The company uses local language advertising. Affordability Coca Cola introduced Returnable 200-ml glass bottle priced at Rs 5. Now Eighty per cent of new drinkers now come from the rural markets. Product Price Promotion Place Small unit packing: Used by brands like Lifeboy, Kurkure, Tiger Biscuits, Velvet Shampoo Sturdy products: Sturdiness of a product either or appearance is an important for the rural consumers. Eg: Villagers don’t prefer slim mobiles or mobile with touch screens. For them, they are not durable. Simple and easy to use: Philips free power radio which needs one minute winding of string to provide 30 minutes of radio listening. New product designs: Eg: Nokia Introduced 1100 model. Its design was modified to protect it against rough usage in rural environment; it is dust resistant & has a small torch light in view of the frequent power cuts in rural India Utility oriented products: Products like mixi, grinder can find good no of sales in rural India as women of rural India is accustomed to make Masalas etc. Brand Identity systems: Colors used, brand name, brand symbol and even language used to promote brand plays a vital role. Eg: “Peeli Tikki” Low cost/ cheap products: The price can be kept low by low unit packaging’s like paisa pack of tea, shampoo sachets, vicks 5 grams tin, etc. Ensuring price compliance: Rural retailers, most of the times, charges more than the MRP. The manufacture has to ensure price compliance either through promotional campaigns, as was done by Coca Cola, or by ensuring the availability of products at the retail outlets directly. Low volume-low price strategy: This strategy of reducing prices by reducing the package size in order to make it appear more affordable, is delivering very good results for a large number of FMCG product categories, in the rural markets of India Preference of consumers for low unit price points should not be interpreted as their preference for cheap products. Instead they prefer affordable products that gives value for money. Simplicity : All promotional messages targeted at rural audience need to be simple & clear, which can be easily understood, & they should not include any confusing elements. The promotional message can be delivered in the form of an entertaining story with a message depicting how the brand delivers “larger good” to the family & society. Choice of Brand Ambassador Amitabh :
bacchan in the chayavanprash advertisement,
boosted the sales in the rural markets. Over 5,000 fairs are held in the country. Estimated attendance is about 100 million rural consumers. Biggest fair ‘Pushkar Mela’ is estimated to attract over 10 million people. Beneficial for companies to organize sales of their product at such places. Promotion can be taken, as there will be ready captive audience Low literacy levels Ineffective distribution channels: Large number of intermediaries, which increases the cost and creates administrative problems. Many languages and diversity in culture: Factors like cultural congruence, different behaviour and language of the respective areas make it difficult to handle the customers. Spurious brands: A lot of spurious brands or look-alikes are available, providing a low cost option to the rural customer. Seasonal demand: Demand may be seasonal due to dependency on agricultural income.