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“India’s way is not Europe’s. India is not Calcutta and
                      
                                              
Bombay. India Lives in its seven hundred thousand
          
                              
                                     
Villages”
                                    
                                          
                                                               
                                                         
                                  
                                                         Mahatma Gandhi
          
                                                     
                                     
                      
                                                 
                                 
                                         
Rural India contributes…….
 70% of Indian Population .
 56% of Indian Income

 46% of Indian Expenditure

 33%of Indian Saving
Some Myth About Rural India


   Rural India is all about agriculture .
      Less than 50% of the population in agriculture.


   Rural income is mainly come from agriculture thus uncertain
      Only 41% of the rural income comes from agriculture


   Rural growth is slow ,investment gives late results
      Rural markets showed 25% of growth in consumer durables,
      whereas urban markets showed only 8 to 10 % of growth.
How Is Rural Market Different From Urban
Market

India                                       Bharat
                                            •   Traditional out look: It values
•   Modern out look: Old custom                 old customs and traditions. Cultural
    s and traditional cultural values           values have not yet faded
    have faded                              •   Level of literacy: Low level of
•   Level of literacy: High level of            literacy
    literacy                                •   Communication and
•   Communication and                           infrastructure facilities:
    infrastructure facilities: All              Facilities like roads, warehouses,
    major facilities are available to the       communication systems and
    urban customer                              financial facilities are inadequate in
•    Higher per capita Income:                  rural India which makes distribution
                                                costly .
    65% of gross domestic product
    produced is shared by 30% of            •    Low per capita Income: 35% of
    population.                                 gross domestic product produced is
                                                shared by 70% of population.
Approaches to Rural Marketing



                  Affordability




                   Rural
Acceptability     Marketin         Availability
                     g




                  Awareness
Rural Marketing Mix

                                    Customization
                  Retailer

                 Packaging

            Product, Price, Place
                Promotion

     Education               Empowerment
Product level


                     Potential

Urban Customer                      Rural Consumer
Demand                              Demands
                    Augmented
•Core                               •Core
•Basic                              •Basic
•Expected           Expected        •Expected(Sometime )
•Augmented
                      Basic




                      Core




                 Example: Shampoo
Consumer Behaviour
  Status Seeking Customer   Budget Conscious Customer

          Brand                     Budget


          Model                    Warranty

                                  After Sales
       Technology
                                   Service

                                     Brand
          Image
                                     Name

          Budget                    Model
Consumer Behaviour
  Status Seeking Customer   Budget Conscious Customer

          Brand                     Budget


          Model                    Warranty

                                  After Sales
       Technology
                                   Service

                                     Brand
          Image
                                     Name

          Budget                    Model

                                Rural Consumer
The pull of the market….

    Aspiration              Media Penetration


                     What is
                    Changing?


   Infrastructure           Deposable Income
Realising the potential…..
Brands fail in India, but are hit in
Bharat…
   Some brands which have done better in the
    rural market than the urban market, for
    example:
The Future is bright…..
HUL Project Shakti




                     Back
Packaging




            Back
Yaara da tashan…..
Rural marketing in India

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Rural marketing in India

  • 1.
  • 2.       “India’s way is not Europe’s. India is not Calcutta and     Bombay. India Lives in its seven hundred thousand    Villages”               Mahatma Gandhi            
  • 3. Rural India contributes…….  70% of Indian Population .  56% of Indian Income  46% of Indian Expenditure  33%of Indian Saving
  • 4.
  • 5. Some Myth About Rural India  Rural India is all about agriculture . Less than 50% of the population in agriculture.  Rural income is mainly come from agriculture thus uncertain Only 41% of the rural income comes from agriculture  Rural growth is slow ,investment gives late results Rural markets showed 25% of growth in consumer durables, whereas urban markets showed only 8 to 10 % of growth.
  • 6. How Is Rural Market Different From Urban Market India Bharat • Traditional out look: It values • Modern out look: Old custom old customs and traditions. Cultural s and traditional cultural values values have not yet faded have faded • Level of literacy: Low level of • Level of literacy: High level of literacy literacy • Communication and • Communication and infrastructure facilities: infrastructure facilities: All Facilities like roads, warehouses, major facilities are available to the communication systems and urban customer financial facilities are inadequate in • Higher per capita Income: rural India which makes distribution costly . 65% of gross domestic product produced is shared by 30% of • Low per capita Income: 35% of population. gross domestic product produced is shared by 70% of population.
  • 7. Approaches to Rural Marketing Affordability Rural Acceptability Marketin Availability g Awareness
  • 8. Rural Marketing Mix Customization Retailer Packaging Product, Price, Place Promotion Education Empowerment
  • 9. Product level Potential Urban Customer Rural Consumer Demand Demands Augmented •Core •Core •Basic •Basic •Expected Expected •Expected(Sometime ) •Augmented Basic Core Example: Shampoo
  • 10. Consumer Behaviour Status Seeking Customer Budget Conscious Customer Brand Budget Model Warranty After Sales Technology Service Brand Image Name Budget Model
  • 11. Consumer Behaviour Status Seeking Customer Budget Conscious Customer Brand Budget Model Warranty After Sales Technology Service Brand Image Name Budget Model Rural Consumer
  • 12. The pull of the market…. Aspiration Media Penetration What is Changing? Infrastructure Deposable Income
  • 14. Brands fail in India, but are hit in Bharat…  Some brands which have done better in the rural market than the urban market, for example:
  • 15. The Future is bright…..
  • 16.
  • 18. Packaging Back