Recent innovations in rural marketing

Recent innovations in rural india by various firms and company

1. Presented by: Puri Chandan MBA(AB) 1 st Year IABM, Bikaner RECENT INNOVATIONS IN RURAL MARKETING

2. Introduction Facts about rural market Meaning of rural marketing The evolution of rural marketing Meaning of innovation Innovations in rural marketing Conclusion References Flow of Presentation 3/27/2015 Institute of Agri Business Management, Bikaner 2

3. 3/27/2015 Institute of Agri Business Management, Bikaner 3 Organization Definitions of Rural Census Village : Basic unit for rural areas is revenue village, which might comprise of several hamlets demarcated by physical boundaries. Town : Towns are actually urban areas that can satisfy the following criteria; Minimum population >= 5000 Population density >= 400/sq.km 75% of the population engaged in non-agricultural activities RBI Rural with population up to 10,000 will be considered as rural and 10,000 to 1,00,000 will be considered as semi-urban Planning Commission Towns with population up to 15,000 are considered rural Sahara Locations With shops/ commercial establishment up to 10,000 population size are treated as rural LG Electronics All population centres other than the 7 metros are considered rural or semi-urban Introduction Source: Pradeep Kashyap Rural Marketing, Second edition

4. 3/27/2015 Institute of Agri Business Management, Bikaner 4 Where Does India Live 25% 25% 50% 12% 18% 70% 1 Million+ <1 Million <10,000 GDP share Population 48 Large cities 7,834 Towns 6,38,000 Villages Source: Pradeep Kashyap Rural Marketing, Second edition

5. 3/27/2015 Institute of Agri Business Management, Bikaner 5 Rural market comprises 70% of the country’s population, 41% of its middle class, 58% of its disposable income and a large consuming class Around 700 million people, or 70% of India's population, live in near about 6,38,000 villages in rural areas 90 % of the rural population is concentrated in villages with a population of less than 2000 Rural India is the largest Rural Market in the World Facts About Rural Market Source: http:// www.ibef.org/industry/indian-rural-market.aspx Contd…

6. 3/27/2015 Institute of Agri Business Management, Bikaner 6 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 B icycles Washing soap Tea Blades Salt Toothpowder Source: http:// www.ibef.org/industry/indian-rural-market.aspx

7. 3/27/2015 Institute of Agri Business Management, Bikaner 7 Size of Indian Rural Market Source: http:// www.ijarcsse.com/docs/papers/Volume_3/1_January2013/V3I1-0207.pdf ₹

8. 3/27/2015 Institute of Agri Business Management, Bikaner 8 Rural Marketing Rural marketing is the process of marketing in rural areas, it includes the adoption of various marketing strategies and policies in rural market with a view to convert the needs and wants of rural people into demand Rural marketing is planning and implementation of marketing function for the rural areas

9. 3/27/2015 Institute of Agri Business Management, Bikaner 9 Evolution of Rural Marketing 3 Phase Three ( 1990-2000 ) Demand for consumables and durables rise Indian corporations with customized offerings for rural markets 4 Phase Four ( after 2000 ) Government pro-rural initiatives take place Several FMCG increase visibility in rural market Durables companies like LG and Samsung have employed rural thrust Several MNC started entering rural market Sr. No. Time Frame Key Events & Trends 1 Phase One ( Pre 1960’s ) Marketing of rural products in rural and urban areas Agricultural inputs in rural markets Agricultural Marketing Farming methods were primitive and mechanization was low Markets unorganized 2 Phase Two ( 1960-1990 ) Green revolution Companies like Mahindra & Mahindra, Sri Ram Fertilizers, IFFCO emerge Rural products are also marketed through agencies like KVIC A new area, ‘marketing of agricultural inputs’ emerge Nirma became the first company to initiate and produce products for rural market Source: Pradeep Kashyap Rural Marketing, Second edition

10. 3/27/2015 Institute of Agri Business Management, Bikaner 10 A marketing innovation is the implementation of a new  marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing

11. 3/27/2015 Institute of Agri Business Management, Bikaner 11 Key imperatives for profitable and sustainable growth in rural markets ( Percent of survey respondents) Very Important Important Less Important Very Less Important Not at all Important Why Innovation? Source: http:// www.accenture.com/Global/Research_and_Insights/Outlook/By_Issue/Y2013/APassageToIndia.htm

12. 3/27/2015 Institute of Agri Business Management, Bikaner 12 Innovation in Rural Markets Innovation Innovation in Product Innovation in Price Innovation in Promotion Innovation in Place Innovations in Packaging

13. 3/27/2015 Institute of Agri Business Management, Bikaner 13 The Rasoi Ghar is a community kitchen shared by several households of one village Centrally located in a target cluster of a selected village Each R asoi G har is equipped with an adequate water supply, a cooking slab, basic cooking utensils and a minimum of 2 stoves connected to replaceable LPG cylinders Video HPCL Rasoi Ghar Source: Pradeep Kashyap Rural Marketing, Second edition

14. 3/27/2015 Institute of Agri Business Management, Bikaner 14 ICRISAT has recently launched " Green PHABLET powered by the Green SIM” with NUNC a Hyderabad-based company This will help farmers purchase inputs at lower price, get a better price for their produce, and link them to markets, thus putting them on the path to prosperity GreenSIM is a special SIM card created by ICRISAT , Airtel, and the IFFCO Kisan Sanchar Limited (IKSL). ICRISAT Green PHABLET Source : http:// www.ruralmarketing.in/industry/innovation/icrisat-launched-greensim-powered-greenphablet

15. 3/27/2015 Institute of Agri Business Management, Bikaner 15 A brainchild of Nikhil Jaisinghani, an alumni of University of Virginia, which builds and operates low cost solar powered micro grids It offers consumers a lower cost lighting services Impact By the end of March 2014, MGP has connected 20,000 households with its micro grid in the villages of Uttar Pradesh, providing electricity to 1,00,000 people Mera Gao Power  Source: http:// www.ruralmarketing.in/industry/innovation/ideating-innovative-india

16. 3/27/2015 Institute of Agri Business Management, Bikaner 16 Ampere Vehicle Pvt. Ltd . , has launched ‘E-Vehicle’ a light electric vehicle company based in south India The range of products comprises of bicycle to scooter which can be used on an average of 60 kms when the battery is charged for 6-8 hours Impact: Ampere sells about 10,000 light E-vehicles, ranging from scooters to motorbikes, annually in South India E-Innovation For a Cleaner Future Source : http :// www.ruralmarketing.in/tag/e-innovation-for-a-cleaner-future

17. 3/27/2015 Institute of Agri Business Management, Bikaner 17 FMCG Companies: Coca-Cola: 200ml for 5 ₹ Gillette: Gillette Guard was launched to provide high-quality shave at an affordable price Free Price Coupons Scheme: This scheme launched by companies like Sinochem , DuPont, Syngenta for dealers and distributors Innovation in Price

18. 3/27/2015 Institute of Agri Business Management, Bikaner 18 Dabur launched Project Double in 2010 The project’s goals were to double rural market revenue and increase penetration of non-passive distributed categories Impact: Within a year and a half, Project Double has reached 24,000 of the targeted 33,000 villages with populations of more than 3,000 in the top 10 states Dabur: Project Double

19. 3/27/2015 Institute of Agri Business Management, Bikaner 19 Flipkart with Common Service Centre's (CSCs) offer rural artisans the opportunity to build and establish their brand nationally, access to financial, marketing and supply chain support and at the same time will generate employment and enhance rural economy This provide the rural artisan and MSME community the support needed to market their products across the country Flipkart, Snapdeal plans to tap 50 lakh low-income households in villages across the country Flipkart “Karigaar ke Dwaar” Source: http:// www.ruralmarketing.in/industry/advertising-and-marketing/flipkart-joins-hands-with-csc-e-governance-services

20. 3/27/2015 Institute of Agri Business Management, Bikaner 20 ITC’s e- C houpal : It offers the farmers all the information, products and services they need to enhance farm productivity, improve farm, gate price realization and cut transaction costs Farmers can access latest local and global information on weather, scientific farming practices as well as market prices at the village itself through this web portal - all in Hindi It also facilitates supply of high quality farm inputs as well as purchase of commodities at their doorstep e-Rural Marketing

21. 3/27/2015 Institute of Agri Business Management, Bikaner 21 1. ITC’s Choupal Sagar : It offer multiple services under one roof 2. TATA Kisan Sansar : The centres offer farmer a host of products and services ranging from agri-inputs, financing to advisory services Organised Rural Retailing

22. 3/27/2015 Institute of Agri Business Management, Bikaner 22 3 .Godrej’s Aadhaar The centres retails agri-inputs, animal feeds along with FMCGs and services 4 . 3A BAZZAR: It is mobile retailing initiative launched for rural areas Every day, the van stuffed with 1300 items ranging from FMCGs, cosmetics, garments and stationery covers three to five villages Contd…

23. 3/27/2015 Institute of Agri Business Management, Bikaner 23 1. Google’s Bus: The internet bus launched by G oogle to educate the offline population in India about the benefit of the internet 2. TATA Shakti: Haat Hungama Campaign: Interactive brand games in the form of a set flash cards created an edutainment platform for the audience It result in 37% increase in sales Innovations in Promotion

24. 3/27/2015 Institute of Agri Business Management, Bikaner 24 TML launched Project Neev (literally means ‘foundation ’ in Sanskrit), with an eye on gaining a first-mover advantage in rural markets This projects aims to tap the rural segment by selling small commercial vehicles & creation of rural entrepreneurship opportunities through vehicle ownership Impact: T he rural business has seen addition of over 20 percent to TML’s SCV vehicle sales TATA Motors: Project Neev

25. 3/27/2015 Institute of Agri Business Management, Bikaner 25 1. Packing a Punch: S- pac : The revolutionary new packaging design, S- pac of Syngenta delivers customers benefits of improved safety, ease-of-use and counterfeit protection as well as strengthening the Syngenta brand image with customers 2. DuPont Dual Compartment Pouch MixPack : 3. PI Industry's Nominee Gold Innovations in Packaging

26. 3/27/2015 Institute of Agri Business Management, Bikaner 26 Rural Market have untapped potential Rural India can be one of the most feasible market for the development of the FMCG and Agri-input companies With proper planning and use of new strategies and technologies, the rural India market can be captured and a great margin of profit can be earned by the FMCG companies, Agri-input companies, A utomobile companies etc. There is vast scope for e-Marketing of agricultural produces Conclusions

27. 3/27/2015 Institute of Agri Business Management, Bikaner 27 Pradeep Kashyap: Rural Marketing, Second Edition Balram Dogra and Karminder Ghurman: Rural Marketing, Concepts and Practices Global Journal of commerce and management perspective, Nov.2013 http:// www.ruralmarketing.in http://www.irjmsh.com http :// ijmcr.com http:// www.ibef.org/industry/indian-rural-market.aspx Retrieved from http://www.ijarcsse.com/docs/papers/Volume_3/1_January2013/V3I1-0207.pdf Retrieved from http :// www.accenture.com/inen/landingpages/ Documents/ Rural Market-15/pdf Retrieved from http :// www.accenture.com/Global/Research_and_Insights/ Outlook/ By Issue/Y2013/APassageToIndia.htm References

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