Rural marketing

Rural marketing the future lies with those companies who see the poor as their customers c k prahalad so many COMPANIES are preparing their product and services for the rich people are the rich class because they purchase their product very often without hesitation thereby generating lot of revenues but rich people are less in number while middle class and poor people are more in number and their purchasing a lot as their disposable income is increasing in India due to increase in growth in GDP and economy so preparing product for the poor people is challenging because it is very difficult to satisfy the need as well as to keep the prices floor attractive reasonable and also promote the product that it will satisfy their needs and also not compromise on their status will see the difference between rural vs urban marketing urban marketing vs rural marketing philosophy of urban marketing is its marketing and social concept philosophy of rural marketing is development and relationship marketing concept market demand for urban market is high market demand for rural market is low in urban marketing competition is in organised sector in rural marketing competition is in unorganised sector literacy rate of urban customers are high literacy rate of rural customers are low income of urban customers are high income of rural customers are low needs of the urban customers are high level needs needs of the rural customers are low level news adoption of the adoption by the rural customers are faster adoption by the rural customer are slower awareness for rural customer is low product awareness for urban customer is height of marketing product and services is known to the urban customer concept of marketing product and services are unknown to the rural customers quality of the product required is good in case of Karbonn customer why moderate qualities required in rural customer urban customers are price sensitive rural customers are very very sensitive the product is medium to high level in urban customer while in rural customer it is medium to low level products are design transportation facilities are good in urban urban areas transportation facilities average in rural areas advertising in case of urban area is print audiovisual and outdoor advertisement advertising in rural area can be done on TV radio print and in regional language regional language should be used as much as possible personal selling is frequently go to dussehra in case of urban area and rural marketing occasionally personal selling is required Definition of village as per census it is basic unit for rural area is revenue village which might comprise of several hamlets demarcated by physical boundaries towns are actually urban areas that can satisfy the following criteria minimum population 5000 density 4400 per square kilometre 75% of the population engaged in non agricultural activities RBI define rural area population with 10000 to 100000 is semi urban and below 10000 is a rural planning commission towns with the population up to 15000 Sahara defined locations with shops commercial establishment upto 10000 population size LG electronics define rural area as 7 m o r in city area except seven cities on a rural areas why marketing is important because it comprise of 50% of GDP 70% of population in rural area 600038 villages are there if we take take into consideration small towns send you have a 25% of GDP share 18% of the population and 7834 towns are there in case of cities 48 large cities we have 12% population and 25% GDP share it has got so fact about rural market rural market comprises 70% of the countries population 41% of its middle class 58% of disposable income and large consuming class around 70 crore people are there that is 70% of Indian population live near 638004 ages 90% of rural population is concentrated in villages with population of less than 2000 India is a largest market in the world rural area is largest rural market in the world area share market demand 50% of motorcycles 50% off 50% of cigarettes 50% of total market for TV fans pressure cooker bicycle washing soap blades salt tooth powder so rural market is possessing lot of products 8 mm 12:15 India's rural market size is 123000 crores out of which 65000 crore where FMCG product demand agri inputs products market size of demand was 45000 crore two or four wheeler market demand in rural area was 8,000 crore consumer durables white goods electronic goods is 5000 crore industry in rural area rural population in India accounts for 6 lacs 27 million that is 62 crore 70 million which is 74 % of India's population rural market in India brings in bigger revenue in the country and rural region comprise of the maximum number of consumers in the country rural market in Indian economy general most more than half of the country's income LIC sold 55% of its policies in rural India 50% of 2 million BSNL mobile connections are in towns or in village 42 million rural household availing banking services in comparison to 27 million in urban areas household investment informal savings instrument is 6.6 million 3066 lacs household in rural while 67 lacs household in urban areas attractiveness of rural market have become a new targets to corporate enterprises for two reasons one or more market has become congested with too many competitors the Mark II the market have reached India saturation point quotation of rural marketing rural marketing has used potential because in urban market there is lot of competition in rural market infrastructure has improved urban market has already saturated no growth financial institution have equal presence in urban and rural areas new employment opportunities are there in rural areas man power is easily available disposable income has increased for the middle class and poor people in rural areas India's large population is still living in rural areas affordability greatest problem is to reach to customer for retailer challenge to reach for flung villages reaches to the customer late now awareness the main way of reaching the customer is through the commercial medium like TV radio outdoor Media while in rural area there is lack of media resource uses combination of TV cinema radio to reach 53% of rural household it does it spend on advertising on doordarshan which alone reach 41% of rural household acceptability the customer should feel that product is designed as per their leaves customer should feel the product family he should relate himself to the product there should not be any hesitation to go for it LG electronics in 1998 developer customise TV for rural market and named it sampoorna it was a success and one lakh sets TV sets sold in first year there are some products moved from urban to rural areas and from some rural to urban areas and some from rural areas to rural areas major part of rural marketing is understanding rural products and services in case of urban to rural products includes transaction of urban marketers who sell their goods and services in rural areas pesticides fertilizers FMCG product tractors bicycle consumer durables in case of products sent from rural area to urban area are the seeds fruits vegetables forest produce spices milk and related product agri based product there are some product which are sent from rural area to rural area like agricultural tools handicrafts this material Bullock carts no value addition to rural marketing it is essentially to understand the needs of the rural people and redesign marketing plan to make it more rural specific for that you need to understand one the importance of women in the rural market rural economy we have to offer product in small packaging like JK dairy the revolutionaries market by top 50 small sachetI reinforced product quality through service initiatives hero Honda has established mobile service centre to take care of rural customers one to one communication channels like it and Coleman uses NGOs in rural area to educate customers about product benefits five use local idioms to convey your message in meaningful contacts 6 core values of the brand must write the customer go to the land be rural group a separate set of professional Moore conversion with the rural market Various factors which have made rural market viable large population remoteness is no longer a problem growth in consumption lifestyle changes market growth rate is higher than urban rural marketing is not expensive benefits of rural marketing size of rural market employment better living contribution to national income increase in farm income 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 outlet challenges duplicate products lubrication of media channel high initial investment small retailers to carry out stock without adequate credit facility wholesale and network dealer problems market research problem price sensitivity low brand awareness idisburse and scantily populated market banking and credit problems in case of challenges duplicate products are there in the market market is mostly an organised there are Chinese products or duplicate products which will hamper the quality and will not allow organised sector player 2 gain lot of benefits for profit lubrication of media channels will not allow customer to be aware about the product and services it will be very difficult to convince them or make them aware about the product and services in rural areas use investment is required due to remote areas and list develop market small retailers will require lot of credit facility or the loan facility which is not available there in urban areas there is strong wholesaler distributor network which is not there in rural areas in case of market research rural customers cannot able to respond properly they cannot able to understand and they hesitate to speak the truth and give the reply responses rural customers are very much price sensitive and for less price they will switch the brand and branding part is not there low brand awareness will not allow any player to read profiles population of the market is very highly disperse disperse very less density there is always banking and credit problems because of less investment in financial sector Some success stories in rural areas yaara da tashan x with Aamir Khan created universal appeal for Coca-Cola Coca-Cola India tabla rural market in a big way when it introduce bottle price at rupees 5 and back it is Aamir Khan as in 2080 to an initiative to develop direct contact with the farmers who lived in farm flung areas or villages in MP madhya Pradesh ITC e choupal was the result of this initiative in 1998 sales personnel products unit initiated product Bharat the first and the largest Google home to home operation by a company project covered 13 million rural household by the end of 1999 it has visiting villages across the country distributing sample packs compressor kallu unit price package of shampoo talcum powder toothpaste and skin cream price at rupees 15 to create awareness of the company's product categories and of the affordability of the product small problem small Indian products like 1 rupee offer pic of shampoo for single use for the small helps in giving consumer aatrile opportunity of to milind BSNL mobile connection 50% are in small towns or villages of the 6 lakh villages 5.22 like have a village public telephone VPT 41 million kisan credit cards have been issued against 22 carat plus debit cards in urban with community credit of 977 billion resulting in tremendous liquidity of the 20 million rediffmail sign up 60% are from small towns 50% of transaction from these terms are on rediff online shopping site in 2 million rural household are availing banking services in comparison to 27 million urban household actual is a with its product project Shakti has already been in a reach of 1.7 lakh villages and aspire to reach 500000 villages by 2020 in 2001 and to LIC so 55% of his policies in rural area Mahindra and Mahindra sales most of its SUVs in rural market conclusion Rural market have untapped potential rural India can be one of the most feasible market for the development of FMCG and agri input companies with proper planning and the use of new strategies and technologies in rural India market can be captured and the great margin of profit can be earned by FMCG companies agri input companies automobile companies there is no scope for a marketing of agricultural product