ruralmarketing217891111113467898121-pptx

rural markets

1. “The heart of India lies in the villages……..”

2. -2 Kanak Binayakiya Gautam Chopra Saurabh Chopra Abhay Chawla Chaman Tanwar

3. What are Rural Areas? In general, a  R ural   area is a geographic area that is located outside towns and cities. As per Census: Any habitation with a population density of less than 400 per Sq. Km, is known as Rural.

4. Rural Marketing Rural marketing is a process of developing, pricing, promoting, and distributing rural specific goods and services leading to desired exchange with rural customers to satisfy their needs and wants, and also to achieve organizational objectives.

5. Nature Of Rural Market Traditional Outlook Rising literacy level. Diverse socio-economic background Infrastructural facilities

6. Attractiveness of rural market Rural markets have become the new targets to corporate enterprises for two reasons : 1. Urban market has become congested with too many competitors . 2. The market have reached a near saturation point.

7. Benefits of rural marketing Size of rural market Employment Better living Contribution to national income Increase in farm income

8. Problem and difficulties faced in rural marketing Lack of proper communication. Distribution problem. Low literacy level. Lack of adequate transport facilities. Lack of proper retail outlets

9. Various factors which have made rural markets viable 1.Large population 2 . Remoteness is no longer a problem 3. Growth in consumption 4 . Life-style changes 5. Market growth rates higher than urban 6. Rural marketing is not expensive

10. 4 A Model

11. C hallenge is to ensure affordability of the product or service. Rural people have low disposable income. P roducts need to be affordable to consumer who are daily wagers. E.g. Coca-Cola introduced 200 ml bottle at Rs.5

12.  G reatest problem is to reach to customer or retailer.  C hallenge to reach far flung villages. P roducts reaches the customers late.  R eaching the market should be considered.

13. The main way of reaching the customer is through the commercial on media like television ,radio and outdoor. Lack of media source in rural areas Coca-Cola uses a combination of T.V., cinema and radio to reach 53.6 percent of rural households. It doubled its spend on advertising on D oordarshan, which alone reached 41% of rural Households

14. The customer should feel that the product is designed as per their needs. The customer should feel the product familiar and there should not be any hesitation to go for it. E.g. :- LG Electronics. In 1998, it developed a customized TV for the rural market and named it Sampoorna, which was a great success due to sale of 1,00,000 sets in the very first year.

15. Difference Between Rural And Urban Marketing Basis Of Difference Urban Rural Product Large packaging, more emphasis on quality Small packaging, More emphasis on core benefit Place Direct and Indirect Distribution Channel Indirect Distribution channel Price High Price Product Low Price Product Promotion More emphasis on media Emphasis on organizing events, Opinion Leader

16. Initiatives taken for rural marketing[HUL]

17. Introduction An ambitious venture by HLL to spur growth and penetration of its products in rural India while changing lives and boosting incomes. Sales and Distribution initiative – delivers growth Communication initiative – build brand Micro-enterprise initiative – creates livelihoods Social initiative – improve standard of living in rural India

18. Objectives Business objective : To extend HLL's reach into untapped markets and to develop its brands through local influencers . To reach 100 million consumers by 2006 Social objective : To provide sustainable livelihood opportunities for underprivileged rural women. To scale up the number of Shakti entrepreneurs from 12000 (2004) to 25000 (2006)

19. Project Shakti : Consumer Marketing Channel Shakti Entrepreneurs Integrated Multichannel System

20. References https:// www.scribd.com/doc/2462654/4-A-s-of-rural-market http:// managementstudiesentries.blogspot.com/2008/12/4-ps-and-4-as-of-rural-marketing.html http:// www.saching.com/Articles/4A-s-of-Rural-Marketing-501.html http://www.authorstream.com/Presentation/khannadeemco-1601003-rural-marketing-ppt / http://www.hul.co.in/sustainable-living/casestudies/Casecategory/Project-Shakti.aspx http://www.managementexchange.com/story/doing-well-doing-good-changing-lives-rural-india