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By : Naveen (82) Pradipta (95) Rohan (114) Saket (124) Tarun (153)

Government agencies like IRDA (Insurance Regulatory Development Agency and NCAER (National Council for applied Economics Research) define Rural as village with a population<5000 with 75% male population engaged in agriculture.

Developing the Market in the Rural area encompasses the activities such as developing the process to meet the object- right product at the right price to the right people at the right time.

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Size of the market Largely untapped Too crowded urban market Income on the rise/disposable income Income flow from Urban/abroad Better exposure-media

Results: Great success stories. Asian Paints-60% Colgate-50% LG-50%

Extreme Diverse Market Villages- Size, Population, Spread, Income Literacy levels, Awareness level, Languages
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Tool kits
used for rural market research

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Faces - Happy.Sad Friendly attitude Number of Coins Cards

Points to Remember
for Rural Marketing

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Build Rapport Greet- Need to be informal Speak local language Do not jump to survey- speak other matters of interest Gradually lead to objective of the interview Explain the objective of the survey Interviewer should be aware of the rural area Do not make responder uneasy- if he offers tea do not refuse

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Village population Location of village w.r.t. nearby town Average size of farmland ownership of villagers Per capita income of a region

T-Series introduced audiocassettes at a low price to take away share of market leader HMV Calvin Care came out with Chick shampoo priced 50 paisa an instant hit in rural market Titan introduced Sonata watches for semi-urban markets Asian Paints introduced Tractor enamel paint in rural areas decently successful

Key differences ` Per capita income ` Disposable income ` Literacy levels ` Infrastructure ` Communication ` Geographical spread ` Various local substitutes

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Marico in North Africa Tata in South Africa as Noetel Bajaj in Indonesia and Cambodia Godrej in Latin America

Needs Brushing Teeth Washing Vessels Transport Irrigation Hair Washing

Old Products Neem sticks, Charcoal, Rock salt, Husk Coconut fiber, Earthy materials, Brick powder, ash Bullock cart, Horses Wells, Canals, Water lifters, Wind mills Shikakai powder, Retha

New Products Toothpaste, tooth powder Washing powders, soaps And liquids Tractors, Mopeds, Scooters Motor Cycles Bore-wells, Motors, power Generators, pump sets. Shampoo and hair care products

FMCG ( Dabur, Marico, Colgate, Coke, Pepsi) Consumer Durables TV, Fridge, Fan, Pressure cooker, BiCycle, Two-wheelers, Sewing Machines, watch, radio, music system. (Philips, LG, Videocon, Onida) Services Telecom, Banking, Health care, Insurance (Airtel, BSNL, SBI, PNB, Dena Bank) Agri-inputs Seeds, pesticides, tractors (Rallis India, Bayer)

Classification of Rural Products

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Easy to use Conveniently packed Success of sachets Product language to be simple, easy to comprehend Thanda Matlab Coca cola Have a logo easy to identify e.g. Thumps up

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Large number of small Markets Dispersed population and trade Poor connectivity Low availability of suitable dealers Inadequate banking/credit facilities Poor product display and visibility Poor communication of offers and schemes

1. Traditional Channel 2. New Emerging Distribution Channels

Traditional Channel

New Emerging Distribution Channels

Local Retailing

Organizing Retailers - Haryali Kisaan Bazaar

HAAT Corporate Society MELA


Nehru Yuva Kendriya Sangathan HAAT Distribution Model

Mobile Traders

Delivery Vans

Satellite/Hub/Spoke Model Coke,PepsiCo.

Petrol Pumps

Public Distribution System

Rural India accounts for 65% of the retail outlets in the country. The average monthly sale per village shop is less than rs.5000. These are small retail outlets.

Traditional Channel

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These are periodic markets. These are the oldest marketing channels. They provide a first contact point for villagers with the market. It is the means for distributing local products and exchanging rural surplus.

Traditional Channel

It is a low cost distribution channel. Melas are generally used to sell durables, high-priced items and new products launched. These are some sort of assembly of small and medium retailers who assemble to sell their products to the large no. of visitors who visit these Melas. Over 25,000 Melas are held every year all over the country. Out of these, 5000 are commercial Melas, 2,000 are cultural Melas and 18,000religious Melas.

Traditional Channel

It is an age-old, direct to home, unorganized distribution system in rural India. They sell variety of daily need products and mostly local brands. They carry their products on bicycles, mopeds, handcarts, or on foot. E.g.- FMCG companies.

Traditional Channel

Some companies use their own delivery vans to reach customers. e.g.- Eveready. They take the products to customers and retail outlets in every corner of selected rural markets.

New Emerging Distribution Channels

India has the largest network of cooperatives in the world. Cooperative societies function like warna Bazaar markets for rural consumers, where consumables, household durables and agricultural products are sold at economical and reasonable prices.

New Emerging Distribution Channels

Under this approach two or more companies come together to form a syndicated trading organization, to jointly distribute a collective group of household products in rural markets by sharing distribution costs E.g.- purchase of parley brands(limca) by coca cola India.

New Emerging Distribution Channels

NYKS is a govt. organization which involves young people as national service volunteers in awareness raising campaigns, vocational training programmes, etc. Here these ex-NSVs are used for the distribution and promotion purpose in the rural customers. E.g. - project DISHA by Colgate.

New Emerging Distribution Channels

In India there are over 12000 petrol pumps spread across the country. These pumps, in addition to selling petroleum products have also started selling consumables like food products and toiletries etc

New Emerging Distribution Channels

It is a system of distribution for essential commodities to large number of people through a network of fair prices shops or ration shops.

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They are the face of the Organization the Ambassador They are the ones who have direct interaction with
Potential Consumer/Customer Users Dealers Distributors Retailers

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They are a major link to the chain and establish the link. They are the ones who help in building Trust. They need to break the rigid ideas and preconceived notions

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Set the personal selling objectives Formulate the sales policies Structure the sales force Size of the sales force Assigning sales targets Creating sales force SELECT, RECRUIT, TRAIN Sales force compensation, motivation & reporting Sales co-ordination/ sales control

2. 3. 4. 5. 6. 7. 8.

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Hardworking Have Empathy Enthusiastic Perseverance Knowledge Attitude Skills

Common traits

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Willingness to work in Rural Areas Adopting to cultural differences Down to earth approach Fluent in local language

TRAITS OF A RURAL SALESPERSON

Effective Communication goes a long way in establishing the right Messages and thereby more interaction with Potential Customers Communication. however, is not complete if there is no feedback, it is very important to re-enforce messages in Rural area.

- Keep the communication simple - No scope for gimmicks. - Take time in communicating the message Quickies have no impact. - Think in the local language to capture the local spirit in the communication aimed at specific region.

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Literacy level Media Habits Traditional approach High resistance more so initially Lavish at occasions (e. g Marriage) Purchasing power also depending on weather- the crops Inequitable distribution of wealth Too many languages Culture

RURAL MEDIA
Mass Media (Conventional) T.V /Cable network Satellite Channels Radio Print Cinema/ Theatre Word of mouth Video on Wheels. Advantages Excellent Reach Less expensive wider coverage Disadvantages At times unnecessary coverage No customized messages Companies using this medium Levers, Onida, Videocon Mahindra Tractors, Eveready Traditional Media (Non Conventional) Puppet Shows Folk Theatre/Opera Demonstration Haats and Mela Wall painting Post card and posters Booklets/Calendar

Advantages High involvement High Interest Localized administered at low cost Disadvantages Coverage Repeat /Re enforcement Skill of performer Companies using this medium Bajaj, Levers, HUL, ITC

Demonstration a key element for success

Dalda Vanaspathi Demonstration