Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Rural Marketing
Module-1
Astha S. Gupta
OBJECTIVE
MODULE-1
Introduction to Rural Markets and Rural Marketing Evolution of Rural Marketing Rural Marketing Vs Urban Marketing Profiles of rural/urban consumers Challenges and opportunities in rural market in India
Myth
Rural people do not buy brands
Reality
Branded Consumption accounts for 80 % of sales for FMCGs
Rural consumers buy cheap products They seek value for money Rural market is a homogeneous mass
It is heterogeneous
The annual consumer durable market for products like colour tvs,washing machines, refrigerators and air conditioners is growing at 7-10 %. While the rural market is zooming at 25 % F.M.C.G Rs.65000 crores (53 % share in total revenues) Of the 20 lacs BSNL mobile phone connections, 50 percent are in small towns and villages. There are 42,000 rural supermarkets (Haats) in India that exceed the total number of retail chain stores in the United States (35,000)
Rs.45000 cr.for tractors Rs.8000 cr.for two and four wheelers. 50 % of Indias national income is generated in rural India. HLL,Colgate Palmolive ,Toyota 50 % revenues coming from rural areas. Hero Honda- 40 % Kinetic motors 30 % Godrej- 30%
Personality and psychological factors Perception and Brand belief Information search and pre purchase evaluation Rise of consumerism
4 Ps of Rural Marketing
Product
Price
Place
Promotion
Every Product and promotion, which is a hit in cities , might not work in rural areas
Product :Product refers to anything that is capable of or can be offered to satisfy need or want? Price :Price refers to the amount the customers has to pay in order to acquire a product or services 3Cs of Pricing Customer Value Competitors Prices Cost to Company
Place : refers to point of sale. Promotion: This refers to all the activities undertaken to make the product or service known to and preferred amongst the user and trade.
Product
Product for rural market must be built or modified to suit the lifestyle and needs of the rural consumers . Product Strategies 1. New/Modified Product. 2. Utility Oriented Product 3. Avoiding Sophisticated Packaging. 4. Small unit packaging
Price
The villagers due to their limited resources are very price sensitive by nature. Pricing Strategies Large Volume low margin low cost/ value for money product Low volume-low price.
Godrej recently introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 meant specifically for Madhya Pradesh, Bihar and Uttar Pradesh Hindustan Unilever, among the first MNCs to realise the potential of India's rural market, has launched a variant of its largest selling soap brand, Lifebuoy at Rs 2 for 50 gm Coca-Cola has also introduced Sunfill, a powdered soft-drink concentrate. The instant and ready-to-mix Sunfill is available in a single-serve sachet of 25 gm priced at Rs 2 and mutiserve sachet of 200 gm priced at Rs 15.
Place
( A village as a place for promotion, distribution, and consumption is very different from town or city)
Place Strategy Segmentation Coverage of villages with 2,000 and above population Distribution up to feeder markets/ Mandi towns. Direct Contact with rural Retail
To service remote village, stockists use autorickshaws, bullockcarts and even boats in the backwaters of Kerala. Coca-Cola, which considers rural India as a future growth driver, has evolved a hub and spoke distribution model to reach the villages LG Electronics defines all cities and towns other than the seven metros cities as rural and semi-urban market. To tap these unexplored country markets, LG has set up 45 area offices and 59 rural/remote area offices.
Promotion
Promotion aspect always creates a challenge in rural markets because of the fact that village have thin population density and are widely spread over large remote areas.
Media Vehicles
Television Radio Print media Cinema Hoarding/Wall Painting
BP energy Sell smoke less, biomass run stoves (Oorja) for rural markets, priced attractively Rs.675. Bank of India introduced Bhumiheen credit cards for providing credit card facilities to landless farmers.