1. RURAL MARKETING

2. Reference New Perspective in Rural & Agricultural Marketing Y Ramkishen Rural Marketing Book – Pradeep Kashap & Siddhartha Raut Cases In Rural Marketing – An Integrated Approach CGS Krishnmacharyulu & Llith Ramkrishnan

3. PROFILE OF RURAL MARKET RURAL CONSUMER MARKETING RESEARCH RURAL MARKET RESEARCH RURAL SEGMENTATION –TARGETING & POSITIONING RURAL MARKETING STRATEGY RURAL PRODUCT RURAL PRICE RURAL DISTRIBUTION RURAL SALES FORCE MANAGEMENT RURAL COMMUNICATION TOPICS

4. What is Rural Government agencies like I RDA (Insurance Regulatory And Development Agency and NCAER ( National Council for applied Economic Research) define Rural as villages with a population <5000 with 75% male population engaged In agriculture etc” Concept of Rural from the perspective of marketing has Indeed been dynamic.- gradually changed over the times Was not India a so called Village/Rural for the world a couple of decades back Census Towns are actually rural areas but satisfy The following criteria Minimum Population>=5000 75% of the mail population engaged in Non –agri activity RB1 Location with population up to 10000 Considered Rural Semi Urban 10000 to 100000 NABARD All locations upto a population of 10000 Will be considered Rural Sahara All locations having shops/establishments’ Upto 10000 (not population related) are Treated as Rural LG Elect. The rural and semi urban area is defined As all cities other than major metros NABARD National Bank for Agriculture & Rural Dev

5. What is Rural Marketing Developing of the market in the area as defined as Rural Hence it could be aptly said that it encompasses the Activities such as developing the process to meet this Objective – Right product at the right price to the right people at the right time. Exchange between rural and Urban is a Factor . Could be Urban to Rural: Rural to Urban, Rural to Rural

9. Move to Rural Market …encouraging Data Rural India buys Soft Drinks approx 45% of all soft drinks Almost 50% motor cycles Approx 55% of cigarettes Half the total market for TV, Fans, pressure cooker, bicycles Washing soap, tea, blades, salt, toothpowder Coca Cola is growing over 35% in Rural areas compared to Over 22 % in Urban According to Hasna Research , a market research farm that Has published a Guide to Indian Markets 2006 Consumer durables in Indian Villages risen sharply TV Sales up by 200% Motorcycle by 77% There are 3000 households in rural area that earn > 50 lakhs We have come some way ahead – but there is a long way to go

12. Profile of the Rural Consumer

15. Simple Model of Rural Consumer Behaviour Need Recognition Pre Purchase Search Evaluation of Alternatives Purchase Decision Post purchase behaviour

17. Key Challenges 4A Awareness Affordability Availability Acceptability 4 Ps 4 As Promotion Awareness Price Affordable Product Acceptable Available Place

18. RURAL MARKET RESEARCH

19. Marketing Research is a formalized means of obtaining Information to be used in making marketing decisions Market research Issue Information Required to address Design Method of Collecting Information Manage The data collection process Analyze The results Communicate Finding and implication

21. Tool Kits Used for Rural Market Research

22. Tool Kits Used for Rural Market Research Faces Color Wheel Same Color – Different shades Different Color Happy ………Sad Number of Coins Ladder Playing Cards

23. POINTS TO REMEMBER FOR RURAL MARKETING RESEARCH

25. RURAL MARKET SEGMENTATION TARGETING & POSITIONING

26. SEGMENTATION Very Varied –hence proper segmentation very essential Geographic : Region North, East, West and South Village size Climate Demographic Age Family Size Gender Income Occupation Education Caste Psychographics (consists of psychological: sociology: anthropological) Lifestyle Rigid ,changing attitude, urban influence Personality Authoritarian, Ambitious Behavioral Occasions Regular, special occasion Benefits User status regular user, first time user, non user Usage rate Light, medium, heavy Loyalty None, medium, strong Attitude to ) positive, negative, hostile Product ) Different variables could be used.. multilevel segmentation

27. transistor/radio wristwatch,pressure cooker,cassette recorder Households owning any/all of the foll 20.20% 61.40% Households other than those classified above The Destitutes/Poor (not those mentioned in above 3 categories) bicycle,electric fans, electric iron with other durab 44.60% 26.00% Households owning any/all of the foll The Aspirants (not those mentioned in above 2 categories) audio equip, B/W TV,geyser with other durables VCR/VCP,mixer grinder sewing m/c 22.40% 8.30% Households owning any/all of the foll The Climbers color TV with other durable (No car/jeep) A.C/Motorcycle/scooter/washing m/c 5.80% 2.70% Household owning any/all of the foll. The Well Off personal cars/jeep with other products 5.60% 1.60% Households owning The Affluent/Very Rich 2006=2007 1995-96 Rural Consumer Classification Class Source - NCAER

30. RURAL MARKETING STRATEGY

31. ENTERINING THE RURAL MARKET New Entrant Company starts Rural Market first & then ventures in Urban Market (eg Cavin Kare Chik & Meera Shampoo) Mid- Entrant Company starts Rural Market after success in Urban Market (eg HLL, LG) Late - Entrant Company starts Rural Market after success in Urban Market for long (eg Cadbury) R G A Retain Grow Add Purpose the market

32. RURAL MARKETING STRATEGY P L A N N I N G E X E C U T I O N F E E D B A C K Profile the Rural Market Profile the Consumer Market Behaviour & MR Segmentation Targeting Positioning --------------------------------------------------------------------------------- --------------------------------------------------------------------------------- Rural Product Rural Pricing Rural Distribution Rural Sales Force Management Rural Communication Monitor the Rural Strategy Feedback & Control 1 2 3

33. DEVELOPMENTAL MARKETING Developmental marketing is a process through which awareness is created >could be demonstration >could be presentation >Free samples >could be through up eg tie up with Bank tie up with Petrol/Diesel pumps (Hyndai did with IOC and PNB and SBI subsidiaries >30% sale of Hyndai from Rural/Semi Urban areas) Awareness Trial Purchase Post-Purchase Satisfaction Colgate – program Operation Jagruti Switch from Charcoal to Colgate tooth powder HLL - Free samples of Lifebuoy Cavin Kare – Free sample of Chik Champoo Marico Industries – Parachute coconut oil “ Sudhata ki pehchan” –smell to differentiate between real and spurious

34. RURAL PRODUCT RURAL PRICE RURAL DISTRIBUTION RURAL SALES FORCE MANAGEMENT RURAL COMMUNICATION

35. Rural Product Product to be marketed with the requirements of the Rural Consumer should not be an extension of urban offerings ( Philips launched Free Power Radio – does not require Battery/electricity you wind it with a lever and radio runs For approximately 30 min. Classification Of Rural Products FMCG (HLL, Dabur, Marico, Colgate=Palmolive Coke, Pepsi) Consumer Durables TV ,Fridge, Fan, Presssure Cooker, Cycle, Two wheelers, Sewing machines, watch, mixer grinder, radio, music system, Fans, Washing machines (Philips, LG, Videocon, Onida ) Services Telecom, Banking, Health care ,Insurance (Airtel, BSNL, SBI, PNB,Dena bank,) Agri-inputs Seeds, pesticides, tractors (Rallis India, Bayer,) Product Life Cycle (PLC) Launch Take Off Maturity Decline

38. RURAL DISTRIBUTION Physical Distribution Channel of Distribution Transportation Warehousing Communication PHYSICAL DISTRIBUTION Transportation Railways, Roads ,Waterways, Animals Communication ITC using internet, Mobile users by fisherman Warehousing (Three Tier Rural Warehousing Set Up) Central/State Warehousing Cooperatives Rural Godowns

40. PLANNING FOR SALES FORCE MANAGEMENT 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, SUPERVISION SALES COMMUNICATION & REPORTING SALES COORDINATION/SALES CONTROL