Rural Marketing

1. “ Rural Marketing ”
Submitted By: Vimal Dhar

2. Contents
 Introduction
 Evolution Of Rural Marketing
 Rural Marketing Mix
 Rural Marketing Strategies
 Problem Of Rural Marketing
 Examples

3. Introduction
 India is an agro-based economy and the growth of most of the other
sectors of economy is driven by rural demand. Urban market is reaching
towards the saturation point, thus bringing in and urgent need to focus on
rural development. Moreover, more than 70% of India's population lives in
villages.
 In comparison to just 5,161 towns in India there are 6,40,867 villages in
India (According to latest census). This in itself is an indicator where the real
India resides. Companies are realizing slowly but surely that the key to gain
true market leadership lies in tapping the rural potential.
 In recent years, rural markets have acquired significance in countries like
China and India, as the overall growth of the economy has resulted into
substantial increase in the purchasing power of the rural communities.

4. Rural Marketing
• Rural marketing is defined as the process of developing,
pricing, promoting, distributing rural-specific goods and
services leading to exchange between urban and rural
markets, which satisfies consumer demand and also achieves
organizational objectives.

5. Estimated Annual Size OF Rural
Marketing
FMCG Rs. 65,000 Crore
Durables Rs. 5,000 Crore
Agri-Inputs Rs. 45,000 Crore
2 / 4 Wheelers Rs. 8,000 Crore

6. Rural Employment Pattern
SECTOR % SHARE IN
EMPLOYMENT
(1987)
% SHARE IN
EMPLOYMENT
(2015)
Agriculture 75 65
Transport and communication 5 10
Trade and hotels 4 7
Construction and other 9 7
Manufacturing 7 11

7. PHASE ORIGIN FUNCTION MAJOR
PRODUCT
SOURCE
MARKET
DESTINATION
MARKET
Phase I Before
mid1960(From
independence to
Green
revolution)
Agricultural
marketing
Agricultural
produce
Rural Urban
Phase II Mid sixties
(Green
revolution to
Pre-
liberalization
period)
Marketing of
agricultural
inputs
Agricultural
inputs
Urban Rural
Phase III Mid
nineties(Post-
liberalization
period in 20th
century)
Rural
marketing
Consumables
and durables for
consumption
and production
Urban and
rural
Rural
Phase IV 21st
century Development
al marketing
All products
and services
Urban and
rural
Urban and rural
EVOLUTION

8. Rural Marketing Mix
Marketing Mix ‘refers’ to the set of actions,
tactics, tools or variables that a company uses
to promote and sells its brand or product in a
markets.

9. Marketing strategies
• To succeed in rural market, companies need to
adapt the 4P’s of marketing and the 4A’s in their
strategy.

10. 4 Ps of Rural Marketing Mix
Every Product and promotion, which is a
hit in cities, might not work in rural areas
Product Price
Place Promotion

11. The features and appearance of goods and services.
Product
Eg: nokia’s1100- customized model for rural. Dust
resistant, Small torch, economical.

12. How much customers pay for a product.
Price

13. The point where products are made available to
customers.
Place

14. How customers are informed about products.
Promotion

15. 4 A’s of rural marketing mix
 Affordability : Cheaper product, designing products
which match the needs of rural consumers, at a
price that they feel.
 Availability: lesser number of brands available at
rural retail outlet. Ensuring the reach of the
products at the retailer’s shelf is one of the most
critical function

16.  Awareness : they use unconventional media along
with commercial media like TV, Radio. Elements
like color, logo, slogan.
 Acceptability : They must feel that the product
serves its purpose, then they are ready to even
spend extra for the product.

17. Problem Of Rural Marketing
 Under developed people
 Under developed market
 Poor communication facilities
 Many languages
 Vastness & uneven spread
 Low per capita income
 Poor infrastructure facilities
 Seasonal demand

18. Under Developed People
 Rural society is found by tradition, old customs, practices etc.
The impact of modern science & technology has made very less
impact . Old beliefs are still continuing.
Under Developed Market
 Rural markets are not developing because of inadequate
banking & credit facilities. At present every 48th village in India
only has bank

19. Poor communication facilities
 Most villages even today largely depends on telegrams and
phones for their communication needs. Print media and visual
media(Television, Cinema) etc reaches only about 20% of rural
Indians.
Many Languages
 India is a country of many languages. Language becomes a
barrier in effective communication in the marketing efforts.
The
languages vary from state to state, place to place, district to
district. There are now 18 schedule national languages.

20. Vastness & Uneven spread
 India is a vast. Rural market consists of approximately 75 cores
rural consumers spread across approximately 6,38,365 villages.
Despite the urban migration, the rural areas continue to be the
place of living for a vast majority Indians.
Low per capita income
 The marketers faces challenges in rural marketing to
decide about quantities, frequency of distributions,
package size etc

21. Poor Infrastructure Facilities
 Infrastructural facilities like roads, ware houses, powers etc are
inadequate in rural areas.
Seasonal Demand
 Rural people have two seasonal crops namely Khariff and
Rabi. Villages have money mostly in this seasons. As
village income are seasonal demand are also.

22. BIJLI
SAMPOORNASAMPOORNA
MAHASANGRAM
SAPNO KA
GHAR
Launched New Refrigerator for Rural and Semi urban market priced
at 10,000
Range of TV’s with Devnagri script on display Priced at 12,000Range of TV’s with Devnagri script on display Priced at 12,000
Focusing on rural town with population less than 5000 with special
economy model of color TV priced at 8000
Road Show in semi urban & Rural with mid priced consumer
durables to provide Touch & Feel experience

23. SHAKTI
Operation
JAGRUTI
Operation
JAGRUTI
Parachute
Rural initiative targeted villages population less than 2000, providing
income generating opportunity through shakti vani
ASHA
OPERATION Jagruti, a village consumer contact campaign was
launched with the objective of massive rural penetration
targeted at the non-users and infrequent users of dentifrices.
OPERATION Jagruti, a village consumer contact campaign was
launched with the objective of massive rural penetration
targeted at the non-users and infrequent users of dentifrices.
Anti Loose Campaign and Temper proof Packaging in Smaller
Variants
Low cost snacks & Beverages . Especially for girls aged between 12-
16.

24. E- Choupal
Chick
Chota Coke
A rural shopping mall where farmers can sell their commodities and
everything including cosmetics, garments, electronics, appliances
and even tractors. It serves as an agri-sourcing centers, shopping
centers, and facilitation centersa
Launched Coca Cola in Rs 5 with tag line “Thand Matlab Coca Cola”
CavinKare launched an aggressivecampaign to educate people on
how to use shampoo through live ‘touch and feel’ in Rural Folks

25. Har Gaon Har
angan
Ghar Ghar ke
pehchan
Ghar Ghar ke
pehchan
Mera sapna
meri maruti
After securing its foothold in urban and semi-urban markets, it has
launched a pan-India campaign — Mera Sapna Meri Maruti — to tap
the vast potential of the rural market.
The promotional scheme Ghar Ghar ki Pehchaan is aimed at taking
highly accomplished product like Santro into the depth of rural
India.
The promotional scheme Ghar Ghar ki Pehchaan is aimed at taking
highly accomplished product like Santro into the depth of rural
India.
Har Gaon Har Angan seeks to build an ongoing relationship with
millions of households in rural India through a network of 500 rural
sales executives

26. Samridhi
TATA ACE
MAGIC
TATA ACE
MAGIC
Gold Plus
Mahindra Samriddhi, an initiative of Mahindra Farm Equipment,
eyes having 600 Mahindra Samriddhi centres and five million
farmers under its ambit by 2020.
Titan Industries’ GoldPlus is designed for the jewellery preferences
of the semi-urban and rural Indian customer.
TATA’s Rural Transport Vehicle for Rural and Semi Urban LandscapeTATA’s Rural Transport Vehicle for Rural and Semi Urban Landscape

27. Utsav
Met Suvidha
Kamdhenu
campaign
A Range of Colour solution intended for the Rural Mass & Market
Met Suvidha (Rural) is a participating flexible Endowment Plan that
combines savings and security to Rural Masses
The Kamdhenu campaign, a unique high-impact marketing and sales
campaign through cattle loans to farmers

28. Conclusion
The rural markets and the consumers are scattered
over a wide geographical area. Considering low
income of consumers, low density of population,
poor conditions of roads, it becomes a difficult and
uneconomical to individually service all the villages.
The marketers have to follow a selective approach
based on market potential in developing a network
of distributors and retailers in rural markets.