Rural Marketing

Rural Marketing is a very interesting Concept, because rural Marketing is different as compare to developed cities.there are different Challenges in rural market like, Less population, Roads Connectivity, Internet Connection, Internet Speed, Infrastructure, Purchasing power and so on...
There are number of challenges and some big companies come with different ideas for the development of villages and for their own Branding.

2. Rahul Sayal
MBA I (D)
5804

3. MARKETING
The Chartered Institute of Marketing defines marketing as “The
management process responsible for identifying, anticipating and
satisfying customer requirements profitably”.

Marketing is defined by the American Marketing Association “as the
activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.”

4. Professor E. Jerome McCarthy, at the Michigan
State University in the early 1960s, suggested
that the Marketing contained 4 elements:
The Four P`s
Product
Price
Placement
Promotion

5. THE MARKETING ENVIORNMENT
MICRO ENVIORNMENT
A firm's micro-environment spans:
Customers/Consumers
Employees
Suppliers
MACRO ENVIORNMENT
A common method of assessing a firm's macro-environment is via
P- POLITICAL
E- ECONOMIC
S- SOCIAL
T- TECHNOLOGICAL
L- LEGAL
E- ECOLOGICAL

6. RURAL
Sparsely populated area outside of the limits of a
city or town or a designated commercial, industrial
and residential centre.

Rural areas are characterized by farms, vegetation,
and open areas.

7. RURAL MARKETING
Rural Markets are defined as those segments of overall
market of any economy, which are distinct from the
other types of markets like Stock market, Commodity
markets or Labour economics.

8. Selling in Rural India
Opportunity
The Indian rural market with its vast size and demand
base offers a huge opportunity that MNCs cannot afford
to ignore. With 128 million households, the rural
population is nearly three times the urban.

9. The 4A Approach
Availability
Because of the poor state of roads, it is greater challenge to regularly
reach products to the far-flung villages.
Affordability
Godrej introduced three brands of Cinthol, Fair Glow and Godrej in
50-gm packs, priced at Rs. 4-5.
Acceptability
LG Electronics developed a customised TV for the rural market and
named it Sampoorna.
Awareness
Coca-Cola uses a combination of TV, cinema and radio to reach 53.6
per cent of rural households.

10. STRATEGIES OF FMCG COMPANIES
IN RURAL AREAS
The e-Choupal model has been specifically designed to
tackle the challenges posed by the unique features of
Indian agriculture, characterised by fragmented farms,
weak infrastructure and the involvement of numerous
intermediaries, among others.
E-Choupal (Launched in June 2000)
ITC Limited has established computers and Internet access
in rural areas across several agricultural regions of the
country, where the farmers can directly negotiate the sale
of their produce with ITC Limited.

12. Main Challenges Involved in Rural
Marketing
Convincing the rural customer.
Promotion of products in their regional
language.
Lack of Infrastructure Facilities
Low Levels of Literacy and awareness.
Lack of knowledge in usage of advanced
products.

13. CORPORATES INTEREST IN RURAL
MARKETING
When rural customers discover the new and
exiting choice of brands available in urban
markets, a demand for these brands is created
in rural areas. When Titan found rural
consumers purchasing their Sonata brand of
quartz watches, they formulated a marketing
strategy tailored to the requirement of the
large rural market.

14. Growing Importance Of Rural Markets
Hindustan Motors (HM) launched a utility vehicle the
RTV (Rural Transport Vehicle), aimed at the rural
market. One way of meeting the intense competition in
the passenger car segment by HM is through increased
efforts in rural markets. It has over 40% of this rural
market, exploiting the low prices, reliability and time
tested rugged aspect of the Ambassador brand.

15. COMPETITION IN RURAL MARKET
•Competition in rural markets is varied in nature and a
marketer faces competition not only from other
brands but also from substitutes, especially in places
where the product is new to the consumer.
•Such situations are quite common in rural markets.
Competition for existing brands can be from other
brands, from new player’s small unorganized sectors,
duplicates and imitation.
•The task for a new player entering in the market is
difficult given the advantage that entrenched brands
have in rural markets.

16. Perspective Role and Contribution of
Information Technology in Rural Markets in India
With the changing patterns of Rural Market, the
role of I.T. has increased from providing only the
Networks to set-up the basis of updated
technological programs in the rural area.
In Rural India, Government has already provided
Info-kiosks (a rural version of cyber café) which
provide basic communication facilities like
internet connection and telecommunication
services.

17. Some of the programs run by the government in
different areas of rural sector are:
E-Mitra
Wi-Fi Projects
Drishtee
Gyandoot
TARAhaat
O TARABazar (for product information)
O TARAdhaba (for providing connectivity)
O TARAdak (connect to relatives at distance)
O TARAgyan (educate rural youth on various issues)
O TARAguru (helps in mentoring and consultancy)
O TARAvan (delivery of orders at remote areas)

18. Continue……..
Rural e-seva
Bhoomi
e-choupal
Aksh
n-Logue

19. INCLINATION OF SECTORS TOWARDS
RURAL INDIA
FMCG
Insurance
Retail
Automobiles
Pharmaceuticals
Consumer Durables

20. STRATEGIES FOR IMPROVING
MARKETING WITHIN RURAL AREAS
•Product Strategies
•Small unit and low priced packing
•New product designs
•Sturdy products
•Brand name
•Pricing Strategies
•Distribution Strategies
•Promotion Strategies

21. CONCLUSION
The face of Indian rural market can be
transformed only with the deployment
of I.T. I.T. enabled services are growing
at a fast rate and are providing several
services to rural people with the
common motive of having increase in
the connectivity and thus creation of
bigger market in the rural areas.

22. A LAST WORD

This is just the tip of the iceberg.

Rural marketing is at its infancy and is
advancing by leaps and bounds.

So stay tuned… and stay ahead of your
competitor.

23. YOU

24. QUERY???