Rural and urban marketing comparetive analysis

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1. RURAL AND URBAN MARKETING COMPARETIVE ANALYSIS By Aashish Soni And Trupti Kambli Sharadchandra Pawar Institute Of Management

2. Definition Of Markets Rural Marketing- Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives. Urban Marketing- Urban is fully integrated firm which present comprehensive level of services, offering pre- development guiding , branding , marketing and the most effective sales agents in the area.

3. Difference Between Rural And Urban Population Standards of living Wide economic gap New product awareness Education Electrified Channel of communication Channel of distribution

4. The Rural And U rban Consumer A Detailed Profile Size of Rural and urban Consumer Group Rural population is about 73% and urban population is 27% of the total population of India A Scattered market the comparison below shows the same – * Urban Population is spread over 3,200 cities * Rural population is spread across 5,70,000 villages

5. MARKET PROCESS URBAN RURAL RURAL RURAL RURAL URBAN URBAN URBAN

6. Reasons For Selecting Market Rural Marketing- Size of the market Largely Untapped Income on the rise/disposable income Income from other than agriculture Income flow from urban /abroad Great success stories of some famous companies- Asian Paints 60% Dabur 40% Videocon 40% Colgate 50%

7. Urban Market- Large number of customer Awareness about the product Effective distribution channel Rise to competition Source of new ideas . Great success stories of some famous companies- Future group 80% D’Mart 65% Globus 59%

8. 4 P’s Of Market Product Price Place Promotion Urban + Rural

9. Marketing Strategies Rural and urban marketing Marketing strategies Distribution strategies Promotion strategies Feeder town Direct selling Personal selling All types of media Familiar shows Near market

10. Urban Vs. Rural Status TOTAL PPLTN. (MLN) % PPLTN. GROWTH RATE % SEX RATION LITERACY RURAL 318.74 1.79 916.44 55.61 URBAN 248.17 1.48 927.78 72.58

11. Occupation of Head of Household (IN %) Urban Rural All Housewife 0.84 1.01 0.96 Cultivator 3.45 40.86 29.99 Wage earner 20.93 35.28 31.22 Salary earner 40.72 11.28 19.84 Professional 3.59 0.73 1.56 Artisan 6.90 3.41 4.42 Petty shopkeeper 16.05 4.97 8.19 Businessman 3.68 0.46 1.40 Others 3.85 1.98 2.52 Total 100.00 1 00.00 100.00 (Source: NCAER, 2003)

12. Rural Vs Urban Marketing No Aspects Urban rural philosophy Marketing & Social concept Development & Relationship marketing 2. Market Demand high low 3. Competition organized sector Unorganized sector 4. Literacy High Low 5. Income High Low

13. 6. Needs High level Low level 7. Adoption Faster Slow 8. Product a) Awareness High Low b)Concept Known Unknown c)Quality Good Moderate 9. Price a)Sensitive Yes Very much b)level desired Medium-high Medium-low 10. Transportation Good Average 11. Advertising Print, audio visual, outdoors. etc TV, Radio , print media in many languages 12. Personal selling Door-to door, frequently Occasionally

14. Income Distribution (Million population) 2001-02 2009-10 2001-02

15. Distribution of Monthly Per Capita expenditure Source: Household Consumer Expenditure Survey, January–June 2004

16. Analysis Of Markets The annual consumer durable market for products like colour t.v’s,washing machines, refrigerators and air conditioners is growing at 7-10 %. While the rural market is zooming at 25 % . HAVE A LOOK….. F.m.c.g – Rs.65000 crores (53 % share in total revenues) Rs.5000 cr.for agri inputs .

17. 50 % of India’s national income is generated in rural India. HLL,Colgate Palmolive , Toyato – 50 % revenues coming from rural and 50% from urban area. Hero Honda- 40 % from rural and 60% urban area. Kinetic motors – 30 % from rural and remaining from urban area. Godrej- 30% from rural70% from urban sector.

18. Challenges Rural Marketing Traditional Life. Transportation. Literacy. Promotion and Marketing Communication. Urban marketing urban market flooded with low demand. High degree of competition. large expenses.

19. Conclusion Thus, looking at the challenges and the opportunities, of both the markets, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India. So we can say that “ RURAL MARKETING IS A REAL MARKETING”

20. Special Thanks To “ A.P.I.M.R ” UDAAN “READY TO FLY….”

21. Thank You!!!!

22. Questions ????