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SUBMIT TO            SUBMITTED BY
PROF. Mukesh Ranga   Saurabh Kashyap
                     Rohit Yadav
                     M.B.E 3rd SEMESTER
RURAL MARKETING
Rural marketing is the study of all the
Activity , agency and policy involved in
The procurement of farm inputs by the
  Farmers and the movement of rural
 products from farmers to consumers.
             _ G.N. MURTHY
NATURE OF RURAL MARKETING

The rural market is quite different from
urban markets.
Agriculture is the chief economic
activity in rural areas, the entire village
population is associated directly or
indirectly to agriculture.
In the process of development of
civilization agriculture and pastoral life
along river banks are the first of settled
life.
Importance of rural marketing
 Size of rural market
Rural target population
Employment
Better living
 Contribution to national income
 Increase in farm income
Rural v/s Urban


OCCUPATION:
Rural:Cultivators n few non –
agricultural pursuits.
Urban:manufacturing,trade,com
merce,professions
Size of community
 Rural:open farms & small
 community are –vly co-
 related
 Urban:urbanity & size of
 community are +vly co-
 related
Problem and difficulties faced in
       rural marketing
 Lack of proper communication
 Distribution problem
 Seasonal demand
 Low literacy level
Rural products
Rural products are the results of the
  art of agriculture and allied activities.
In a narrow sense,rural products refer
  to the products arising out of the
  cultivation, namely various crops,
  vegetables and fruits etc.
Types of rural goods

  Industrial goods
  consumer goods
Industrial goods:-industrial rural goods
  are those use for further industrial
  processing. e.g. tabacoo, fibre crops
  like cotton and jute.
Consumer goods:-goods are mean for
  direct use like all foodgrains, dairy
  product, poultry products vegetables
  and fruits.
Attractiveness of rural market
Rural markets have become the new targets to
corporate enterprises for two reasons :
1. Urban market has become congested with
too many competitors.
2. The market have reached a near saturation
point.
Various factors which have made rule
 markets viable:-
1. Large population
2. Raising prosperity
3. Growth in consumption
4. Life-style changes
5. Life-cycle advantages
6. Market growth rates higher than
urban
7. Rural marketing is not expensive
8. Remoteness is no longer a problem
Now for some facts and figures. The Indian
rural market today accounts for only about Rs
8 billion (53 per cent - FMCG sector, 59 per
cent durables sale, 100 per cent agricultural
products) of the total ad pie of Rs 120 billion,
thus claiming 6.6 per cent of the total share. So
clearly there seems to be a long way ahead.
Time and again marketing practitioners have
waxed eloquent about the potential of the rural
market. But when one zeroes in on the
companies that focus on the rural market, a
mere handful names come to mind. Hindustan
Lever Limited (HuL) is top of the mind with
their successful rural marketing projects like
'Project Shakti' and 'Operation Bharat'.
RURAL MARKETING CHANNELS
Marketing channels are routes through which
rural products move from producers to
consumers
Cleary the main challenge that one faces while
dealing with rural marketing is the basic
understanding of the rural consumer who is
very different from his urban counterpart.
Also distribution remains to be the single
largest problem marketers face today when it
comes to going rural. "Reaching your product
to remote locations spread over 600,000
villages and poor infrastructure - roads,
telecommunication etc and lower levels of
literacy are a few hinges that come in the way
of marketers to reach the rural market
In 1998 HuL’s personal products unit initiated
Project Bharat, the first and largest rural home-
to-home operation to have ever been prepared
by any company. The project covered 13
million rural households by the end of 1999.
During the course of operation, HuL had vans
visiting villages across the country distributing
sample packs comprising a low-unit-price
pack each of shampoo, talcum powder,
toothpaste and skin cream priced at Rs. 15.
This was to create awareness of the company’s
product categories and of the affordability of
the products.
Khaitan fans' ad on a horse cart
The greatest challenge for advertisers and
marketers continues to be in finding the right
mix that will have a pan-Indian rural appeal.
Coca Cola, with their Aamir Khan ad
campaign succeeded in providing just that.
"Yaara da Tashan...” ads with
Aamir Khan created universal
   appeal for Coca Cola
"Yaara da Tashan..." ads with Aamir Khan
created universal appeal for Coca Cola
Coca-Cola India tapped the rural market in a
big way when it introduced bottles priced at Rs
5 and backed it with the Aamir Khan ads. The
company, on its behalf, has also been investing
steadily to build their infrastructure to meet the
growing needs of the rural market, which
reiterates the fact that this multinational has
realised the potential of the rural market is
going strength to strength to tap the same.
For HLL, a one rupee or a five rupee sachet or
the Kutti Hamam (the small Hamam) helps in
giving the consumers a trial opportunity.
While it does help in generate volume but not
in terms of values. "Till the time that volume -
value equation is managed better.
Ultimately, the ball lies in the court of rural
marketers. It's all about how one approaches
the market, takes up the challenge of selling
products and concepts through innovative
media design and more importantly
interactivity.
Amul is another case in point of aggressive
rural marketing. Some of the other corporates
that are slowly making headway in this area
are Coca Cola India, Colgate, Eveready
Batteries, LG Electronics, Philips, BSNL, Life
Insurance Corporation, Cavin Kare, Britannia
and Hero Honda to name a few.
Interestingly, the rural market is growing at a
far greater speed than its urban counterpart.
"All the data provided by various agencies like
NCAER, Francis Kanoi etc shows that rural
markets are growing faster than urban markets
in certain product categories at least. The share
of FMCG products in rural markets is 53 per
cent, durables boasts of 59 per cent market
share. Therefore one can claim that rural
markets are growing faster than urban markets
Satellite dish antennas reach rural
                India
In 2000, ITC took an initiative to develop
direct contact with farmers who lived in far-
flung villages in Madhya Pradesh. ITC's E-
choupal was the result of this initiative.
So the fact remains that the rural market in
India has great potential, which is just waiting
to be tapped. Progress has been made in this
area by some, but there seems to be a long way
for marketers to go in order to derive and reap
maximum benefits. Moreover, rural India is
not so poor as it used to be a decade or so
back. Things are sure a changing
Typical shop in rural India stocked
         with sachets, etc
Rural marketing ppt- saurabh

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Rural marketing ppt- saurabh

  • 1. SUBMIT TO SUBMITTED BY PROF. Mukesh Ranga Saurabh Kashyap Rohit Yadav M.B.E 3rd SEMESTER
  • 2. RURAL MARKETING Rural marketing is the study of all the Activity , agency and policy involved in The procurement of farm inputs by the Farmers and the movement of rural products from farmers to consumers. _ G.N. MURTHY
  • 3. NATURE OF RURAL MARKETING The rural market is quite different from urban markets. Agriculture is the chief economic activity in rural areas, the entire village population is associated directly or indirectly to agriculture. In the process of development of civilization agriculture and pastoral life along river banks are the first of settled life.
  • 4. Importance of rural marketing  Size of rural market Rural target population Employment Better living  Contribution to national income  Increase in farm income
  • 5. Rural v/s Urban OCCUPATION: Rural:Cultivators n few non – agricultural pursuits. Urban:manufacturing,trade,com merce,professions
  • 6. Size of community Rural:open farms & small community are –vly co- related Urban:urbanity & size of community are +vly co- related
  • 7. Problem and difficulties faced in rural marketing Lack of proper communication Distribution problem Seasonal demand Low literacy level
  • 8. Rural products Rural products are the results of the art of agriculture and allied activities. In a narrow sense,rural products refer to the products arising out of the cultivation, namely various crops, vegetables and fruits etc.
  • 9. Types of rural goods Industrial goods consumer goods Industrial goods:-industrial rural goods are those use for further industrial processing. e.g. tabacoo, fibre crops like cotton and jute. Consumer goods:-goods are mean for direct use like all foodgrains, dairy product, poultry products vegetables and fruits.
  • 10. Attractiveness of rural market Rural markets have become the new targets to corporate enterprises for two reasons : 1. Urban market has become congested with too many competitors. 2. The market have reached a near saturation point.
  • 11. Various factors which have made rule markets viable:- 1. Large population 2. Raising prosperity 3. Growth in consumption 4. Life-style changes 5. Life-cycle advantages 6. Market growth rates higher than urban 7. Rural marketing is not expensive 8. Remoteness is no longer a problem
  • 12. Now for some facts and figures. The Indian rural market today accounts for only about Rs 8 billion (53 per cent - FMCG sector, 59 per cent durables sale, 100 per cent agricultural products) of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share. So clearly there seems to be a long way ahead. Time and again marketing practitioners have waxed eloquent about the potential of the rural market. But when one zeroes in on the companies that focus on the rural market, a mere handful names come to mind. Hindustan Lever Limited (HuL) is top of the mind with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'.
  • 13. RURAL MARKETING CHANNELS Marketing channels are routes through which rural products move from producers to consumers Cleary the main challenge that one faces while dealing with rural marketing is the basic understanding of the rural consumer who is very different from his urban counterpart. Also distribution remains to be the single largest problem marketers face today when it comes to going rural. "Reaching your product to remote locations spread over 600,000 villages and poor infrastructure - roads, telecommunication etc and lower levels of literacy are a few hinges that come in the way of marketers to reach the rural market
  • 14. In 1998 HuL’s personal products unit initiated Project Bharat, the first and largest rural home- to-home operation to have ever been prepared by any company. The project covered 13 million rural households by the end of 1999. During the course of operation, HuL had vans visiting villages across the country distributing sample packs comprising a low-unit-price pack each of shampoo, talcum powder, toothpaste and skin cream priced at Rs. 15. This was to create awareness of the company’s product categories and of the affordability of the products.
  • 15. Khaitan fans' ad on a horse cart
  • 16. The greatest challenge for advertisers and marketers continues to be in finding the right mix that will have a pan-Indian rural appeal. Coca Cola, with their Aamir Khan ad campaign succeeded in providing just that.
  • 17. "Yaara da Tashan...” ads with Aamir Khan created universal appeal for Coca Cola
  • 18. "Yaara da Tashan..." ads with Aamir Khan created universal appeal for Coca Cola Coca-Cola India tapped the rural market in a big way when it introduced bottles priced at Rs 5 and backed it with the Aamir Khan ads. The company, on its behalf, has also been investing steadily to build their infrastructure to meet the growing needs of the rural market, which reiterates the fact that this multinational has realised the potential of the rural market is going strength to strength to tap the same.
  • 19. For HLL, a one rupee or a five rupee sachet or the Kutti Hamam (the small Hamam) helps in giving the consumers a trial opportunity. While it does help in generate volume but not in terms of values. "Till the time that volume - value equation is managed better. Ultimately, the ball lies in the court of rural marketers. It's all about how one approaches the market, takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity.
  • 20. Amul is another case in point of aggressive rural marketing. Some of the other corporates that are slowly making headway in this area are Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero Honda to name a few.
  • 21. Interestingly, the rural market is growing at a far greater speed than its urban counterpart. "All the data provided by various agencies like NCAER, Francis Kanoi etc shows that rural markets are growing faster than urban markets in certain product categories at least. The share of FMCG products in rural markets is 53 per cent, durables boasts of 59 per cent market share. Therefore one can claim that rural markets are growing faster than urban markets
  • 22. Satellite dish antennas reach rural India
  • 23. In 2000, ITC took an initiative to develop direct contact with farmers who lived in far- flung villages in Madhya Pradesh. ITC's E- choupal was the result of this initiative.
  • 24. So the fact remains that the rural market in India has great potential, which is just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor as it used to be a decade or so back. Things are sure a changing
  • 25. Typical shop in rural India stocked with sachets, etc