This document discusses rural marketing strategies in India. It notes that companies are expanding to rural markets due to saturated urban markets and rising incomes in rural areas. It identifies key aspects of rural marketing as the 4P's (Product, Price, Place, Promotion) and 4A's (Availability, Affordability, Acceptability, Awareness). Challenges include low literacy, lack of infrastructure, and cultural diversity. Suggestions include using local salespeople and media, demonstrations, and focusing on distribution and awareness campaigns. An example highlights Asian Paints' strategies like wall paintings and working with local leaders to expand in rural villages.
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RURAL MARKETING STRATEGIES AND CHALLENGES
1.
2. Flow of Contents
Why Companies go rural?
The 4P’s and 4A’s
Mass Media
Rural Marketing Strategy
Problems in Rural Marketing
Suggestions for Rural Marketing
Key Takeaways
Examples
3. RURAL MARKETING
658669 Villages, 604 districts, 700 million people, a
myriad of languages and a host of traditions.
The real Bharat.
Explore the rural markets,
Do Not exploit them.
4. Why Companies go rural?
Saturated urban markets
A huge untapped market
Rising disposable incomes
5. The 4P’s and 4A’s of the Rural
Marketing
Product
Price
Place /Distribution
Promotion
Therefore all these aspects, especially 4A’s impact and
increase the sales and visibility of their respective
products in rural markets.
Availability
Affordability
Acceptability
Awareness
11. Folk Theatre
Demonstrations
Post Cards & Posters
Booklet / Calendars
Traditional Media (Non Conventional)
12. Rural Marketing Strategy
• Best promotion and quality perception.
• Easy-Way Communication especially for Rural
Market .
• Changing Pattern of Rural Customers.
• Promoting Products and Services with right
person in Case of Celebrity Endorsement .
• Patriotism with Products and Services .
• Promoting Indian Sports Team.
13. Three stages of rural marketing
The Planning Stage
The execution & implementation stage
The Feedback Stage
14. Problems in Rural Marketing
•Deprived People and Deprived Markets
•Lack of proper communication facilities
•Low Levels of Literacy
•Prevalence of spurious Brands
•Transportation and warehousing
•Ineffective distribution channels
•Languages and diversity in culture
•Dispersed markets
15. Some of the leading companies must delivery vans in
rural areas for resolving the distribution problems.
The companies must take care about the recruitment
& selection of sales persons who are willing to work in
rural areas. {local language & patience}
With reference to marketing communication in rural
areas the companies should use the organized media-
mix policy.
Rural people need awareness classes & demonstrations
for better understanding
20 May 2015
Suggestions for Rural Marketing in
India
16. The rural marketing in India is quite fascinating and
challenging.
Large scope for the marketers. Improvement in
infrastructure and reach promise a bright future for
those intending to go rural.
Rural market is not exploited completely and is yet
to be explored.
20 May 2015
Key Takeaways
17. Examples - Asian paints
Sale of Distemper in rural
villages by Asian paints
65 % Unorganized market in the
rural areas
Low pricing in the market – Rs. 16
-20
Uniform Quality
• Asian Paints Strategy
Introduction of character Gattu
Wall painting strategy
Opinion leaders
Gram sewaks, postmen and womans
groups
Notes de l'éditeur
Now when Asian Paints wanted to come out with its Distemper, there were already local competitors in the market (About 65% of the distemper market is still unorganized in the rural areas). These local products were priced at about Rs.14 to Rs. 20 per kg and quality was far from uniform.
How does Asian paint penetrate this market? How does it differentiate itself from competition?
Quite obviously, quality and uniformity would be the two selling points of the product. But Asian Paints wanted to stress on the quality. So they decided to price the distemper at Rs. 24 per kg.
But Asian Paints needed people to try out their new, higher priced paint. So they painted a few of the village wells, schools and panchayat areas with a social message. Next, they took 1 kg samples of the distemper to opinion leaders' houses. Of course, the opinion leaders had to buy at least one more kg of distemper in order to complete painting the house.
Asian Paints also concentrated on promoting the new distemper through gram-sevaks, postmen, women's groups and patwaris.