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“COMMUNICATION STRATEGIES IN RURAL MARKET”
Submitted By:Group no
A debate continued for a long time amongst the Indian marketers, both practitioners & academicians, on the justification for the existence of the distinct discipline of rural marketing. Consequently, two schools of thought emerged. The first school belived that the products/services, marketing tools & strategies that are successful in urban areas, could be transplanted with little or no more modifications in rural areas. However, the second school saw a clear distinction between urban & rural India, & suggested a different approach, skills, tools & strategies to be successful in rural markets. What differentiates the two markets is not mere income, but a host of other infrastructural & socio-cultural factors. Thus, the rural market cannot be tapped successfully with an urban marketing mindset & would definitely require its thorough understanding. In other words, the approach toward rural markets needs to be distinct from the one adopted for the urban markets. Thus, in a large rural economy like India’s, rural marketing has emerged as an important & distinct internal sub-division within the marketing discipline. This sub-division clearly highlights the differences between rural marketing & mainstream 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.
It is a two-way marketing process wherein the transactions can be: 1. Urban to Rural: A major part of rural marketing falls into this category. It involves the selling of products and services by urban marketers in rural areas. These include: Pesticides, FMCG Products, Consumer durables, etc. 2. Rural to Urban: Transactions in this category basically fall under agricultural marketing where a rural producer seeks to sell his produce in an urban market. An agent or a middleman plays a crucial role in the marketing process. The following are some of the important items sold from the rural to urban areas: seeds, fruits and vegetables, milk and related products, forest produce, spices, etc. 3. Rural to Rural: This includes the activities that take place between two villages in close proximity to each other. The transactions relate to the areas of expertise the particular village has. These include selling of agricultural tools, cattle, carts and others to another village in its proximity. Rural marketing requires the understanding of the complexities. Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural areas are consuming a large number of industrial and urban manufactured products. The rural agricultural production and
consumption process plays a predominant role in developing the Indian economy. This has designed a new way for understanding a new process called Rural Marketing.
CLASSIFICATION OF RURAL CONSUMERS
The rural consumers are classified into the following groups based on their economic status: • The Affluent Group: They are cash rich farmers and a very few in number. They have affordability but not form a demand base large enough for marketing firms to depend on. Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group. • The Middle Class: This is one of the largest segments for manufacturedgoods and is fast expanding. Farmers cultivating sugar cane in UP andKarnataka fall in this category. • The Poor: This constitutes a huge segment. Purchasing power is less,but strength is more. They receive the grants from government and reapthe benefits of many such schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall under this category.
ROADBLOCKS OF INDIAN RURAL MARKETS
There are several roadblocks that make it difficult to progress in the rural market. Marketers encounter a number of problems like dealing with physical distribution, logistics, proper and effective deployment of sales force and effective marketing communication when they enter rural markets. The major problems are listed below. 1. Standard of living: The number of people below the poverty line is more in rural markets. Thus the market is also underdeveloped and marketing strategies have to be different from those used in urban marketing. 2. Low literacy levels: The low literacy levels in rural areas leads to a problem of communication. Print media has less utility compared to the other media of communication. 3. Low per capita income: Agriculture is the main source of income and hence spending capacity depends upon the agriculture produce. Demand may not be stable or regular. 4. Transportation and warehousing: Transportation is one of the biggest challenges in rural markets. As far as road transportation is concerned, about 50% of Indian villages are connected by roads. However, the rest of the rural markets do not even have a proper road linkage which makes physical distribution a tough task. Many villages are located in hilly terrains that make it difficult to connect them through roads. Most marketers use tractors or bullock carts in rural areas to distribute their products. Warehousing is another major problem in rural areas, as there is hardly any organized agency to look after the storage issue. The services rendered by central warehousing corporation and state warehousing corporations are limited only to urban and suburban areas. 5. Ineffective distribution channels: The distribution chain is not very well organized and requires a large number of intermediaries, which in turn increases the cost and creates administrative problems. Due to lack of proper infrastructure, manufacturers are reluctant to open outlets in these areas. They are mainly dependent on dealers, who are not easily available for rural areas. This is a challenge to the marketers. 6. Many languages and diversity in culture: Factors like cultural congruence, different behaviour and language of the respective areas make it difficult to handle the customers.
Seasonal demand: Demand may be seasonal due to dependency on agricultural income. which may be a problem for effective communication. 9. Harvest season might see an increase in disposable income and hence more purchasing power. Spurious brands: Cost is an important factor that determines purchasing decision in rural areas. 7. providing a low cost option to the rural customer. . A lot of spurious brands or look-alikes are available. 8. Many a time the rural customer may not be aware of the difference due to illiteracy.Traits among the sales force are required to match the various requirements of these specific areas. but it continues to be a far cry in rural areas due to lack of communication facilities like telegraph and telecommunication systems etc. Dispersed markets: Rural population is highly dispersed and requires a lot of marketing efforts in terms of distribution and communication. Lack of communication system: Quick communication is the need of the hour for smooth conduct of business. The literacy rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional. 10.
EVOLVING A NEW PROMOTIONAL MIX FOR SELLING TO RURAL INDIANS Promotions & Advertising There are a lot of barriers that militate against homogenous media and message delivery. Demonstrations establish the credentials of any new technology used in developing the product. then the end user will not be allowed to forget. If the intermediary understands and is constantly reminded about your product. panchayats. The classic conundrums of reach and coverage of the media are shattered. habits and preferences leading to different expectations of every segment of the population. dharmsalas. The rural consumer likes to touch and feel a product before making a choice. The use of video using mobile vans and even large screen video walls at events should be arranged. More importantly. Alliances with cottage industries. However. a store may call itself as a grocery store but will stock everything from groceries to vegetables to fertilizers and may at times even stock medicines. it is very important for companies to wise-up on emerging technologies. in rural India. the overlap between the product categories sold in a single outlet in tremendous. more often than not. experience has proved time and time again that word of mouth is the key influencer. In today’s information era. This becomes all the more important when in rural India. These barriers stem from the fact that rural markets vary immensely in terms of tastes. one fact is certain across all areas. Technology must be used to prepare a database of customers and their requirements. Intermediaries are the foundation to rural distribution. In such cases. It has in fact become a medium to attract larger audiences for a product demonstration. Demonstrations are undoubtedly the most effective promotional tool that shapes purchase decisions of the rural population. the point at which the customer actually comes in contact with a product may not be the point at which the sale is affected. The companies must reinforce this highly effective medium and use all their innovation and money tom develop more dramatic point of sale and point of contact material. post offices and police stations for advertising have also helped immensely. For instance. Several creative communication media have been used by various companies to tackle the problem of having to use visual communication and non-verbal communication to reach the rural audience. This is required because a large proportion of the rural population cannot read or write. .
The following are the mass media generally used: Television. Another unique feature of rural markets is that the Decision making process is collective. No high voltage publicity is required.influencer. free samples. Rural youth bring brand knowledge to the households. decider. several agribusiness companies have also started providing gift schemes with offers for free jewellery that influences the ladies to pressure the farmers to purchase agricultural inputs from select companies. The use of local idioms and colloquial expressions are an excellent way to strike a rapport with the rural consumer and must be borne in mind when developing media plans and public relations programmes. etc. buyer. The persons involved in the purchase process . In fact. Apart from regular household goods. This promotion strategy thus makes women influence purchase decisions that they would ordinarily not be involved in. Lucky draws and gift schemes are a major hit in most states. reusable packaging is considered a major aid in promoting sales for products in the rural market. The rural consumer is very down to earth but equally discerning and marketers need to step into the shoes of the rural folk while creating product promotion campaigns. There are other attributes in the promotion strategy which are explained as under: 1. Youth power is becoming increasingly evident in villages. Consumer and Trade schemes that Incentivise Spending using discount coupons.The re-use capacity and colour of the container in which the product is packed is also a crucial factor. one who pays can all be different. Cinema Radio . encourage spending. So marketers must address brand messages in their campaigns at several levels. This has forced several companies to change the focus and positioning of their products and services towards this segment that is growing in absolute number and relative influence. off season discounts. Mass media: In the present world mass media is a powerful medium of communication.
brand reminder and word of mouth. Special campaigns: During crop harvest and marketing seasons it is beneficial to take up special promotion campaigns in rural areas. This can be achieved only by personal selling by highly motivated sales person. India witnessed over 50. This is the reason why opinion leaders and word of mouth are thriving among rural consumers. for products that need concept marketing and those that have high prices. Tractor owners (tonee) conducted by MRF Limited is one such example. MANDI AND MELA MAGIC At last count. posters. its features. On an average.000 melas. 3 lakh people visited the annual mela at Navchadi which lasts for 7 days in Meerut. Personal selling and opinion leaders: In personal selling it is required that the potential users are identified and awareness is created among them about the product. 50. On considering these questions. package familiarity.000 a day. visitors at these melas spend between Rs. etc. There will be . This is because the time and the mood of the people that visit these melas are not right to digest technical information or for making large purchases. music and caparisoned elephants to promote their brand of tea. it has been observed that melas are fit to generate product exposure. Of these 25.Print media: Handbills and Booklets. promotion at melas is like a “one night stand”. banners. uses and benefits. 2. The largest such mela is the Maha Kumbh Mela which is visited by an average of 12 crore people. There is however.000 to Rs. stickers. In the words of Mr. For example. People come to melas to have a good time and are not reminded of such high technology or high priced products when they return home. 5.000 meals are held to signify religious. The opinion leaders may be big landlords or politicians or progressive farmers. Brooks Bond carries out marches in rural areas with band. However. such melas are not suitable promotion media. Neville Gomes. In fact the word of mouth information holds lot validity in rural areas even today. Is the audience at this mela fit for promotion of the product at hand? What are the psychographics of this audience? What is the motivational and behavioural impetus that brings visitors to each of these melas. An opinion leader in rural areas can be defined as a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. cultural festivals as well as local fairs and events. Managing Director of Multimedia Aquarius. a caveat when an organization is considering using mela for marketing their products. 3.
Urban and Rural India both have approximately 3 million retail outlets. On the other hand. Rural India’s 3 million outlets are located in 6.5. Distribution must be strengthened and this would raise investment cost barriers for new entrants.3 lakh villages.000 per outlet.000 towns where these outlets are located. The diversity in the distribution of shops is the self-limiting factor in terms of servicing the rural distribution network. Thus. Further compounding this problem is the fact that even this meagre sale is mostly on credit. a large amount of qualitative judgment is indeed in planning promotions at melas by media planners. Thus. marketers are faced with the problem of feeding 3 million shops located in vastly diverse areas each of which records an average sale of only Rs. Urban India has only 4. Significance of Distribution No matter how well devised a company’s product. However.no reminder later. the most crucial link in ensuring the success of rural marketing efforts is distribution. pricing or promotion strategy. The reason for this is very clear when we consider that on an average. In Rural India. . the selection and use of distribution channels is a nightmare.
they are cash rich and can afford to make such purchases. It is essential for rural marketing companies to understand this hierarchy. Being present in 6 lakh villages is virtually impossible for an organization of any size. It is therefore not necessary for a marketer of TV sets to take their distribution channel all the way down to the village shop. A TV will not be sold there as the cash flow does not exist at that point in the hierarchy of markets. Rural distribution has a rigid hierarchy of markets that make channel decisions relatively structured. Keeping the hierarchy in mind will help decide the optimum level of penetration required to reach a critical mass of rural consumers. more controllable. easier to reach and service. assembly markets and such central locations. This is due to the fact that it is at assembly markets that auction yards are present where the farmers congregate to sell their output. district headquarters. Rural folk are habituated to travelling once a week for their weekly purchases to a satellite town. They do not expect such items to be present in every village.The distribution of outlets however shows that a marketer need not be present in all markets at all times. For durables where the outlay involved is typically large. Rural wealth and demand is concentrated typically at satellite towns. the purchase would be made in an assembly market for reasons of choice and availability of adequate cash flow. A television distributor must be present at assembly markets which are much smaller in number. After such sale of produce. .
They have been held on a regular basis across the length and breadth of the country for over 1000 years. Distribution costs must be reduced through optimum utilization of the network. incorporating haats in the distribution strategy of a rural marketing organization selling consumer goods and FMCG products (typically once a week purchase items) is a tremendous opportunity. A study estimates that 47. cultural and economic interchange. These rural super markets are much larger than all the world's K-marts and Wal-marts put together. Traditionally. They are a readymade distribution network embedded in the fabric of rural society for over 1000 years. Considering that the average population of an Indian village is approximately 1000. Marketing in Rural India is undoubtedly a long-haul exercise and one that involves great expense. in village shops a lot of credit sales occur due to the fact that in a small geographic area of a village. In villages with less than 2000 people this figure reduces to 1 in 20 villages. Haats are seen as a place for social. Only those with a strong mind. What is most attractive to marketers is that 90% + of sales in haats are on cash basis. This is because. Apart from the 90% cash sale. One in every five villages with a population of over 2000 has a haat. Perhaps the other most important factor to consider while developing rural distribution strategy is that the move from transactional marketing to relationship marketing is most evident in the village market. There is also a need to realise that the dealer is the company's "unpaid" sales force. each haat serves 5 villages. everybody knows everybody. Participation fees at haats are a flat Re. an average haat will have close to 300 stalls.1 to Rs. A haat usually serves around 5000 visitors. 5 to 7% is conducted on barter system and the rest 3 to 5% is on credit. Typically.5 per stall and this rate is common to a giant like Hindustan Lever and the smallest local seller. A lot of re-distribution also occurs through haats. It is essential to educate and involve him as he is the local company representative and is the only member in .Haats Haats are the nerve centre of Rural India. Right from the time of Chandragupta Maurya.000 haats are conducted in rural India. A strong bond needs to be created with every consumer even in the remotest village and the smallest town. Also attractive to companies wishing to use the system is the low selling overheads. the system gets derelationalised. Considering that over 5000 visit a haat from 5 villages. a tough heart and stiff hands survive. a large number of retailers and subwholesalers buy from haats for their village stores. Thus.
.the channel of distribution that is in direct contact with the final consumer. The dealers' feedback needs to be obtained as the direction for future strategy emanates here.
Focus on select villages. The important thing is that appropriate segmentation basis need to be applied. BY COMMUNICATING AND CHANGING QUALITY PERCEPTION Companies are coming up with new technology and they are properly communicating it to the customer. Now they know the difference between the products and the utilities derived out of it. this positioning of technology is very crucial. BY PROPER COMMUNICATION IN INDIAN LANGUAGE The companies have realized the importance of proper communication in local language for promoting their products.MARKRTING STRATEGIES TO CAPTURE RURAL INDIA SEGMENTATION OF RURAL MARKET The first step is to develop & implement any strategy for the rural market should include the appropriate segmentation of the rural market. The perception of the Indian about the desired product is changing. one can notice difference in current market scenario. Thus. There is a trade of between Quality a customer perceives and a company wants to communicate. . The organization can do the following thing to start with: Focus on select markets. They have started selling the concept of quality with proper communication. rural customer started asking for value for money. Their main focus is to change the Indian customer outlook about quality. As a rural Indian customer always wanted value for money with the changed perception. With their promotion. Different product categories have different rural markets to cater to & these can be selected by applying different criteria of segmentation.
"Nokia" has launched a simple product. Breeze. Diana Hyden and Shahrukh Khan are chosen as a brand ambassador for MNC quartz clock maker "OMEGA" even though when they have models like Cindy Crawford. which has captured the market. if the seller provides frills free of cost they are happy with that. BY PROVIDING WHAT CUSTOMER WANT The customers want value for money. rural people are emotional and sensitive. even when they can use Neem or Babool sticks or Gudakhu. BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS Companies are picking up Indian models. On the other hand. Thus. As "Motorola" has launched. Moreover. Cinthol etc. They aim for the basic functionality. . actors for advertisements as this helps them to show themselves as an Indian company.BY TARGET CHANGING PERCEPTION If one go to villages they will see that villagers using Toothpaste. is the paradigm changing and customer no longer price sensitive? Indian customer was never price sensitive. They are happy with such a high technology that can fulfil their need. they are exploiting social and cultural values. to promote their brands. They are ready to pay premium for the product if the product is offering some extra utility for the premium. BY UNDERSTANDING CULTURAL AND SOCIAL VALUES Companies have recognized that social and cultural values have a very strong hold on the people. However. What can one infer from these incidents. Cultural values play major role in deciding what to buy. They do not see any value in frills associated with the products. Villagers are constantly looking forward for new branded products. even when they can use locally manufactured very low priced soaps. but they want value for money. seven models of Cellular Phones of high technology but none took off. villagers are using soaps like Nima rose.
ITC is promoting Indian cricket team for years. If he/she can visualize himself/herself with the product. all the best". a firm develops these products.BY ASSOCIATING THEMSELVES WITH INDIA MNCs are associating themselves with India by talking about India. . during world cup they have launched a campaign "Jeeta hai jitega apna Hindustan India India India". M-TV during Independence Day and Republic daytime make their logo with Indian tri-colour. by explicitly saying that they are Indian. with the India tri-colour and a ringing tone of "Sare Jahan se achcha". With this. keep cooked food fresh. Whirlpool has also launched a campaign during world cup. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water. they influence Indian mindset. BY PROMOTING INDIAN SPORTS TEAM Companies are promoting Indian sports teams so that they can associate themselves with India. BY DEVELOPING RURAL-SPECIFIC PRODUCTS Many companies are developing rural-specific products. Similarly. and to withstand long power cuts. Nokia has designed a new cellular phone 5110. BY TALKING ABOUT A NORMAL INDIAN Companies are now talking about normal India. LG has launched a campaign "LG ki Dua. Keeping into consideration the requirements. It is a normal tendency of an Indian to try to associate him/her with the product. he /she become loyal to it. That is why companies like Daewoo based their advertisements on a normal Indian family.
Citra and Limca so that they can kill these brands. In between such a show. LG has sold one lakh 20-inch Sampoorna TVs. As well as trust of people. Govt of India uses puppetry in its campaigns to press ahead social issues. MNCs have found that it is much easier for them to operate in India if they acquire an Established Indian Brand. while the modern media includes TV. LIC uses puppets to educate rural masses about its insurance policies. Like LG has used India brand name "Sampoorna" for its newly launched TV. Marathi and Tamil tongue. puppetry. but later on they realized that to survive in the market and to compete with their competitor they have to rejuvenate these brands. The word is a part of the Bengali. In the past one year. Similarly Coke has acquired Thumps up. .BY GIVING INDIAN WORDS FOR BRANDS Companies use Indian words for brands. Electrolux has acquired two Indian brands Kelvinator and Allwyn this has gave them the well-established distribution channel.000. radio. Brook Bond Lipton India ltd used magicians electively for launch of Kadak Chap Tea in Etawah district. and e-chaupal. BY EFFECTIVE MEDIA COMMUNICATION Media Rural marketing is being used by companies. Gold Spot. BY ACQUIRING INDIAN BRANDS As Indian brands are operating in India for a long time and they enjoy a good reputation in India. as people believe these brands. They can either go for the traditional media or the modern media. Hindi. The traditional media include melas. all in towns with a population of around 10. the lights are switched of and a torch is flashed in the dark (EVEREADYs tact). folk theatre etc.
The message is simple and clean. Dabur uses these events to sell products like JANAM GHUTI (Gripe water). Escorts also display its products like tractors and motorcycles in such melas. MELAS Melas are places where villagers gather once in a while for shopping. soon they realized that to succeed in India they have to reach the nook and the corner of the country. Rural people like the sight of bright colors. BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES MNCs have realized that in India celebrities enjoyed a great popularity so they now associate themselves with Indian celebrities. They have to reach the "local Paan wala. PAINTINGS A picture is worth thousand words. they thought that a similar system can be grown in India. Makbul Fida Hussain a renowned painter who has created "Gajgamini" range of paintings. .BY ADOPTING LOCALISED WAY OF DISTRIBUTING Proper distribution channels are recognized by companies. 5000. Adidas. Local Baniya" only they can succeed. This pen is signed by Mr. Companies take advantage of such events to market their products. priced at Rs. However. They have to reach to local cities with low priced products. Reebok. they were wrong. COKE. a JV of Gillette and Luxor has launched 500 "Gajgamini" ranges of Parker Sonnet Hussain special edition fountain pens. Companies are promoting players like Bhaichung Bhutia. so that they can associate their name with players like him and get popularity. MNC shoe giants. NCAER estimates that around half of items sold in these melas are FMCG products and consumer durables. who is promoted by Reebok. The distribution channel could be big scale Super markets. and to capture the market share in India they have to go the local market shoe sellers. PEPSI and TATA traders advertise their products through paintings. Recently Luxor Writing Instruments Ltd. and Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India.
The only we can have insights like ‘Thanda matlab Coca Cola’. & they should not include any confusing elements. The following strategies can be considered while developing promotional campaigns for the rural markets: 1. Think Global Act Local Rural population is diverse. The theme of the story line can be about how the product can solve the problems of the rural consumers. 3. 2. Bombarding rural consumers with too much. There should be the use of language writers who understands the rural & regional pulse better.PROMOTION STRATEGIES Customized promotional media & messages need to be developed by the organizations to effectively target the rural market. Promotional message should highlight only the functional values of the product & explains how those values can make the consumer’s life even better & solve any of his problems. Think in Local Idiom This is the need of the advertising professionals who can think like the rural people. but the commonalities of their ethos & simple living habits need to be understood for advertising to succeed. For that. such as family-love. which can be easily understood. It is preferable that it has only a few propositions at a time. But the context. . the theme of the advertisement needs to revolve among universal themes. language & idioms should be such that the rural audience of different rural market segments can relate to. in less time can easily confuse them & leave them bewildered. 4. Narrative Story Style The promotional message can be delivered in the form of an entertaining story with a message depicting how the brand delivers “larger good” to the family & society. storyline. Simplicity & Clarity All promotional messages targeted at rural audience need to be simple & clear.
5. An organization might spend a lot of money in hiring a brand ambassador only to find out later that it had little impact on the rural consumer. Lack of proper retail outlets Lack of mass media infrastructure. namely. extensive retailing and sustained pull generation through mass media advertising. Lack of pucca roads connecting villages to nearest townships. What has been found is that if we have to serve the rural consumer we will have to take our products to him through the channels that he is using and some innovative ways of getting to him. That is why Govinda in the Mirinda as boosted the sales of the drink in the rural markets. it is almost impossible to transplant strategies which work successfully in urban markets onto rural markets. DISTRIBUTION STRATEGY Many companies view the rural markets as great opportunity for expanding their sales but find distribution as a major problem. Choice of Brand Ambassador Brand Ambassador for the rural markets need to be picked carefully as urban successes might not get replicated in the rural markets. . Large distances between villages. The marketers were of the opinion that the villagers would come to nearby towns and buy the products that they want. The road blocks to reach the rural customers are: • • • • • Lack of adequate transport facilities. Unfortunately.
These cooperatives have an arrangement for centralized procurement and distribution through their respective state level federation.000 villages. 1. one can cover about 25 crores rural consumers. Therefore. which have a population of 2000 persons & above each. Many of the societies extend credit to the members for purchases. By doing so the percentage of villages covered comes to only 10% of all the villages. Such state level federation can be motivated to procure and distribute consumables items and low value durable items to the members to the society for serving to the rural consumers. The shops that distribute these commodities are called fair price shops. Here again there is an arrangement for centralized procurement and distribution. farmer’s service cooperatives and other multipurpose cooperatives. These shops are run by the state civil Supplies Corporation. Coverage of villages with 2000 and above population: Ideally. The purpose of PDS is to make available essential commodities like food grains. Use of co-operative societies: There are over 3 lacks co-operative societies operating in rural areas for different purposes like marketing cooperatives. Segmentation: The number of villages in India is huge & it is not viable to contact & serve all villages directly. The manufacturing and marketing men should explore effective utilization of PDS. but the rural population covered will be substantial.The following distribution strategies formulated for the rural category. edible oils and others to the consumers at a reasonable price. Utilization of public distributory system: The PDS in the country is fairly well organized. 4. With a distribution network in about 55. villages with lesser populations can be added. 3. to the extent of about 40 to 45 percent. sugar. co-operatives as well as private entrepreneurs. . The revamped PDS places more emphasis on reaching remote rural areas like the hills and tribal’s. kerosene. This strategy is good to begin with & then subsequently. coverage of villages with up to 2000 and above population could be the break-even point for a distribution setup. 2. companies or distributors can carefully examine the market potential of different villages & target the villages that can be served in a financially viable manner through an organized distribution effort.
pesticides and seeds. the feeder markets and mandi towns offer excellent scope for distribution. It can be beneficial for companies to organize sales of their product at such places. Biggest fair ‘Pushkar Mela’ is estimated to attract over 10 million people. Only temporary shops come up selling goods of all kinds. as there will be ready captive audience. torch cells and other durables and consumer products. Promotion can be taken. It is estimated that over 5. bullock-carts. Utilization of multipurpose distribution centers by petroleum/oil companies: In order to cater to the rural areas the petroleum/oil companies have evolved a concept of multipurpose distribution centers in rural areas. Kumbh Mela at Hardwar in U. oil-engine pump sets and mopeds frequent these outlets for their requirement. 7. 6. This distribution can be done by mopeds. depending upon the township. It is estimated that there are about 450 such outlets in operation in the country. which attract urbanite also like ‘Mankanavillaku’ in Malappara in Kerela. cycles. For convincing the manufacturing and marketing man with regard to the importance of these places from rural marketing point of view a visit to such places is necessary. These outlets can be profitably utilized for selling consumables and durable items also. camelbacks etc.5. They are normally timed with religious festivals.P. The rural customers visit these towns at regular intervals not only for selling the agricultural produce but also for purchasing cloth. hardware. There are 50 such big rural fairs held in various parts of country. . these outlets also stock consumables agricultural inputs like fertilizers. Jathras and melas are held once or twice a year for longer durations. In addition to petrol/diesel.000 fairs are held in the country and the estimated attendance is about 100 million rural consumers. ‘Periya Kirthigai’ at Tiruparunkunaram in Tamil Nadu. lubricants. radios. The rural consumer who has tractors. Shandies/Haaths/Jathras/Melas: These are places where the rural consumers congregate as a rule. From the feeder markets and mandi towns the stockiest or wholesaler can arrange for distribution to the village shops in the interior places. jewelry. Such places attract large number of itinerant merchants. Distribution up to feeder markets/mandi towns: Keeping in view the hierarchy of markets for the rural consumers. While shandies/heaths are held a particular day every week.
providing consumers immense choice and prices. there will be entertainment. different non-competing companies can come together to jointly operate distribution vans for the . durables. Further the freshness of the produce. as per the essential commodities act. The supermarket in Varana Nagar caters exclusively to rural consumers. These outlets crop up every week. clothes. farming equipment. The markets start early and will be over by lunch. it is an attractive place to those who want to buy second hand durables and to those who prefer barter transactions. This is why there are about 2 lakh fertilizer dealers in the country. • Attractive: The weekend shopping is not only convenient but also entertaining. Example of Varana Nagar in Maharashtra proved an eye opener in this regard where the sugar and milk co-operatives have totally changed the life style of people. Similarly a co-operative supermarket called ‘Chintamani’ in Coimbatore (T. Afterwards. buying in bulk for. where the advantage is a one-stop shopping exercise. cattle. Household goods. 8.Merits: • Convenience: The entire market can be related to large departmental stores in cities. Joint distribution by Non-competing Companies: As the cost of distributing the products in the rural market through distribution vans can be unviable for a single company. a week and the bargaining advantage attract the frugal and weeklong hard working rural folk. machinery. In respect of transactions. 9.N) arranges free transit of rural consumers to the supermarket of their purchases. raw materials and a host of products are available. • Availability: It is a market for everyone and for everything. both in cooperative & private sector. Agricultural Input Dealers: Fertilizers should be made available to the farmers within the range of 4-5 km from their residence. jewellery.
Therefore many companies were dependent on whole salers. Personal Selling Network: It is very successful distribution channel being developed by companies like HUL. 1. • Rural markets were neglected by many. The occurrence of retail outlets was low. and Bazaars & Shadies. As a result of retail based distribution was weakened.rural market. Wholesalers The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the belief that business is speculative rather than distributive in character. Companies laid more emphasis or retailers in urban areas. Weekly Haats.Whole seller. as the salesmen are the resident of the village or community itself. 10. . THE OLD SETUP The historically available people & places for distribution include: . The reason for this speculative character and dormant role of wholesalers are: • • Indian market was largely sellers market. There was no need for active sales growth. who are very large in number. He is a trader / commodity merchant rather than a distributor and therefore tends to support a brand during boom and withdraw support during slump. making it easier to sell the product & maximise sales for the company. Retailer. the entire operation can become financially viable for all the players. This will enable them to share the cost of operating the van & on account of the sharing of the cost by four or five companies. It adds a personal touch to the marketing. Vans.
He is seen as a businessman with profit motto. . INFLUENCE LEADER: His role as influence leader is indisputable. Village retailers have traditionally been among the most mobile of rural residents. Often doubling up as money lenders. His views are accepted and followed by the rural people whose awareness and media exposure levels are low. From tender twig of neem to washing powder retailer testimony has been vital part of the product adoption process.The current need is to activate and develop wholesaler of the adjoining market as a distributor of products to rural retail outlets and build his loyalties to the company.) II. Retailers There are different kinds of retailers. His view points are evaluated with other sources of information. The role of urban retailer is weak. CREDIBILITY: He enjoys the confidence of the villagers. hops within the village S Shops located on the main road and not exactly within the village Kasba market or the tahsil market. I. As a result retailers play a significant role. 2. (The urban retailer is not trusted. Their multi – person interaction in the closed village society. The urban consumers have numerous sources of information.
III. BRAND PROMOTER: In rural market retailers remains the deciding factor to sell particular brand. (.) V. backed by historical credibility of the retailer as a product referral. Retailers helps in identification and selection of brands. if not more. He caters to a set of buyers who have income from immovable land resources and would be static over a much longer time span. RELATIONSHIP MARKETER Village retailer practices relationship marketing. the urban retailers have to make an effort to adopt relationship marketing. in less than a decade. as urban consumers do not trust him completely. He is to intelligently drive home his recommendations. It is through shelf displays and incentive offers that he has to push the brands. (on the contrary. Presence of spurious brands is an ample testimony to this view.) IV. His customers base comprises largely the mobile service class prone to shift residence at least once. He cannot directly. recommend the brands. The relationship could extend beyond three generations. This limits the time span and perspective of the retailer – customer relationship. HARBINGER OF CHANGE . there is less influence of shelf displays and point of purchase promotion. Although retailer’s opinion is sought it may not be 100% believed and followed.The urban retailer has a limited role as a brand promoter.
Its location changes every week. It is reported that there are. These markets are very well organized with shopkeepers having pre-assigned spaces for them to sell their wares. It hired vans to penetrate the rural interior. Media Vehicles Through the rural markets offer big attractions to the marketers. have an important place in distribution and promotion of the products in villages. he has been harbinger of change. JK Dairy launched whitener ‘Dairy Top’ in small 50 gm sachets priced at Rs. 6. Bazaars. we find urban retailer.000 haats held throughout the country.) 3. 25 days a month. Weekly Haats. In an environment relatively isolated from external developments. Shandies The haats are the oldest outlets to purchase household goods and for trade. about 47. But they are strikingly similar in what they sell. It decided to make a concerted foray into rural India in 1996. (As against this. These markets have different names in different regions. each van traveling around 125 km a day.50. 4. one of the most important questions frequently asked is “How do we reach the large rural population through different media and methods? . Vans Mobile vans long since. A typical market is in an open field with ample space for displaying all sorts of goods. He is one of the main sources of information and opinion as well as supplier of product and services. wielding limited influence in changing the product choices and quality of life of consumers. in all.
However local language newspapers and magazines are becoming popular among educated facilities in rural areas. and Radio: 37%) and therefore the marketer has to consider the following points: Newspapers and magazines: English newspapers and magazines have negligible circulation in rural areas. and Point of purchase and Outdoor advertisement. Examples: Newspapers: Eenadu in A. TV: 27%. Cinema: 30%.. Melas. Reach of formal media is low in rural households (Print: 18%. .Mass Media Radio Cinema Press TV Local Media Haats. Punjab Kesari in the North. Cinema. Fairs Wall Paintings Hoardings Leaflets Video Vans Folk Media Animal Parade Transit Media Personalized Media Direct Communication Dealers Sales Persons Researchers Formal media It includes Press and print. TV.P. Dina Thanthi in Tamil Nadu. Radio. Loksatta in Maharashtra and Tamil magazine Kumudam are very popular in rural areas.
The advertisement has to be released during this time to get maximum coverage in rural areas. Many consumer goods companies and fertilizer companies are using these TV channels to reach the rural customer. Example: Release of a pesticide ad at the time of outbreak of a pest or disease in crops.500. Film viewing habits is high in certain states like Tamil Nadu. Example: Colgate. Jyoti Labs. Nihar oil etc are some of the products advertised via television. Examples: SUN TV is very popular even in rural areas in Tamil Nadu and Asianet is a preferred regional channel in Kerala. Lifebuoy. Regional TV channels have become very popular especially in Southern states. HLL has been using TV to communicate with the rural masses. Karnataka and Andhra Pradesh. Village theatres do roaring business during festivals by having four shows per day. The farmers have a habit of listening to regional news/agricultural news in the morning and the late evening. Another advantage is that the radio commercial can be prepared at short notice to meet the changing needs of the rural folk. The monthly charge for showing an ad film is within Rs. . Local distributor or dealer who has good contacts with cinema houses in villages can easily monitor this activity. Zandu Balm. Zuari industries are some of the companies using radio communication programme. Cinema: About 65% of the earnings from cinema are from rural markets. Examples: Films on products like Vicks. Television: It has made a great impact and large audience has been exposed to this medium. Lux. Radio: Radio reaches large population in rural areas at a relatively low cost. There are specific programmes for farmers like Farm and Home/Krishi Darshan in regional languages.
In cities lot of junk mail is received by all of us and very often . wall painting. directly to potential customers through the medium of post. Apart from films. Outdoor advertisements: This form of media. It is a medium employed by the advertiser to bring in a personal touch. product display boards etc. Point of purchase: Display of hangings. is cost effective in rural areas. festoons and product packs in the shops will catch the attention of prospective buyers.Lifebuoy and SPIC fertilizers are shown in rural cinema halls. Direct mail advertising: It is a way of passing on information relating to goods or services for sale. pictures and colours should be used in POPs meant for rural markets so that they can easily identify the products. Ad slides can also be screened in village theatres. which includes signboards. bus boards. tree boards. Symbols. dealer boards. However a clutter of such POP materials of competing companies will not have the desired effect and is to be avoided. Generally rural people prefer bright colours and the marketer should Utilize such cues. hoarding.
pesticides. The cost of such a painted board is about Rs.such mails are thrown into the dustbin whereas a villager get very few letters and he is receptive to such mailers. use wall painting as promotion medium in rural areas. shops and schools are ideal places for painting and the company need not have to pay any rent for the same. Wall paintings: It is an effective and economical medium for communication in rural areas. Retailers welcome painting of their shops so that the shop will look better. toothpaste. bullock carts and . The matter should be in the form of pictures.10. Tree boards: These are painted boards of about two square feet in dimension having the picture or name or slogan of the product painted on it. branded coffee/tea. The walls have to be painted at least one or two feet from ground level. These boards attract the attention of slow moving vehicles like cycles. slogans for catching the attention of people. These boards are fixed to the trees on both sides of the village road at a height of about 10 feet from ground level. Very often the owner takes responsibility for taking care of the wall painting. Painting to be avoided during election time and rainy season. It is better to take permission of the owner. Companies marketing TV. Walls of farm houses. The cost of painting one square foot area is just Rs.80. fans. fertilizers etc. since it stays there for a long time depending upon the weather conditions.
Example: This approach has been found to be very effective for agricultural machinery.tractors and people walking on the road. Companies to suit the specific requirements of rural communication are using a variety of such media effectively and some of the more important media and methods are given below. The advantage is that the sales person can understand the needs and wants of the rural customer by directly discussing with him and answer his queries on products and services. Many LIC agents and companies dealing with high value consumer durables have tried this method with success in rich rural areas. The person does not sell the product but only promotes the use of the product. Farm-to-Farm/House-to-House visit: Rural people prefer face-to-face communication and farm visits facilitate two-way communication. The person carries with him literature in local language and also samples of products. Informal/Rural specific media These media with effective reach and personalized communication will help in realizing the promotional objectives. Very often the local dealer also joins the representative in making farm-to-farm visits. animal health products and agricultural inputs. Potential customers in the village are identified and the company’s/distributor’s representative makes farm-to-farm visits and highlight the benefits of the products. . These are low priced promotion items and can be used by consumer goods companies too. Fertilizer and pesticide companies in rural areas extensively use tree boards. even the buses move at slow speed through village road. Considering the poor condition of roads. The dealer clarifies the terms and conditions of sale and also makes independent follow up visits for securing orders.
The Melas: . Such opinion leaders could be big landlords. bank official. Such meetings could be organized in prosperous villages for promoting consumer durables and two wheelers also. Examples: a) Mahindra Tractors use bankers as opinion leaders for their product. agricultural inputs and machinery companies in rural areas. The bankers visit an identified village. extension workers etc. get the village people in a common place and explain the various schemes to the villagers. Opinion leaders: Villagers place more emphasis on the experience of others who have used a product/brand to make purchase decision. The company is able to pass on the message regarding benefits of the products to a large number of customers through such meetings. b) Asian Paints promoted its Utsav brand of paint by painting the village Sarpanch’s house a few months prior to the launch if the branch to demonstrate that the paint does not peel off. Group meeting of key customers are conducted by banks. Example: MRF Tyres conduct tractor owners meet in villages to discuss repairs and maintenance of tractors. teachers. Opinion leader is a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Group meeting: Group meetings of rural customers as well as prospects are an important part of interpersonal media. panchayath-president.
As soon as the van reaches a village. The reason being that in villages the wages are paid on weekly basis and haat is conducted on the day when the villages get their wages. For the marketer. The sellers arrive in the morning in the haat and remain till late in the evening. Folk dance programme costs about Rs. Many companies have come out with creative ideas for participating in such melas. The troupe consists of dancers. beliefs and perceptions of rural customers that influence his buying behaviour. the company can not only promote and sell the products but also understand the shared values. commodity fairs.5000 per day and therefore these programmes are conducted during the peak season in selected villages. Handcarts have been deployed for increasing access. b) The mahakumbh at Allahabad is the biggest mela in India. The folk dance “Kuravan Kurathi” is popular in Tamil Nadu. HLL has put up 14 stalls in the mela grounds for promoting Lifebuoy. drummers and musicians and they move in a well-decorated van from one village to another village singing and dancing. about the products are answered by the sales person. film songs are played to attract the attention of the villages. .Melas are of different types i. This is followed by folk dances. In a day the troupe covers about 8-10 villages. both the sellers and buyers meet in the village to buy and sell goods and services. After the dance programme. the haat can be an ideal platform for advertising and selling of goods. Examples: a) Britannia promotes Tiger Brand Biscuits through melas. cattle fairs and religious fairs and may be held only for a day or may extend over a week.e. if any. These are the haats that are being held regularly in all rural areas. queries. Next day they move to another haat. Folk dances: These are well-appreciated form of entertainment available to the village people. Mike announcement is made about the company’s products and leaflets are distributed. The Haats: Traditionally on certain days of week. By participating in haats and melas.
and Phillips have made effective use of AVP vans for popularizing their products in rural areas. Example: Companies such as HLL. At the end of the film show. The van is a mobile promotion station having facilities for screening films slides and mike publicity. Colgate. The whole operation takes about 1-2 hours depending upon the products under promotion. the folk dance programme of Maharashtra and over 30 programmes have been arranged in selected rural markets. number of participants in the meeting and time taken for question and answers.Examples: Fertilizer and pesticide companies organize folk dance programmes during peak season in selected markets.4000 per day and AVP van operation has to be considered as an investment for business development in rural areas. he distributes handbills and answers queries of the customers. The ad film is screened along with some popular film shots and this continues for about 30 minutes. The cost of running a fully equipped AVP unit is about Rs. Audio Visual Publicity Vans (AVP Vans): AV unit is one of the effective tools for rural communication. The sales person makes a brief talk about situation in the village. Thumps Up has sponsored Lavnis. Product display contests: . The vans move to the next village for the second show. the products and the benefits.
Another objective is to influence the dealer to stock the product and support the company in increasing the sales. The main purpose of this contest is to remind the customer to buy the product as soon as he enters the shop. The display contest has to be announced well in advance and promotional materials to be distributed to all the selected dealers in a geographical area. The farmers observe the results in the field and the local dealer calls on them in their farms and persuades them to buy the particular brand of pesticide or fertilizer.Package is an integral part of the product. A progressive farmer who is an opinion leader is selected and the demonstration is conducted in his field in the presence of a group of farmers in the village. to preserve the quality and to avoid any loss in quality and quantity. Field demonstration: This is based on the extension principle “seeing is believing” and is one of the most effective methods to show the superiority of the company’s products to the customers. The representative receives 1% commission for every customer who approaches the dealer via demonstrations. Its main purpose is to protect the product during transit. b) Demonstrating the use of tractor/implements for different agricultural operations. Prizes for best displays are announced to motivate the dealers. Examples: a) Spraying a particular brand of an insecticide against insect pests and showing the farmer how effectively the insects are controlled. c) Hawkins pressure cooker has demonstration representatives who carry out demos in rural households. the contest lasts for about a month. vaccum cleaners and mosquito coils could be promoted by demonstrations in selected markets. This is used for promoting consumer goods such as shampoos. Field days: . A well-planned product display contest not only increases the involvement of dealers in the company’s products but also increases the sales during the contest period. pressure cookers. e) Similarly effectiveness of detergents. soaps and toothpaste.
They also provide information on farm implements. Many consumer goods companies have opened show rooms in prosperous rural areas. prominent personalities and role models. Just before harvest. Examples: Textile mills maintaining community gardens. fertilizers. Information centers: They provide latest information on cultivation of crops. are applied after making field observations. All the fertilizers. all the important farmers are invited to see demonstration plot and see for themselves how the yields are better in the plot compared to other fields. they share common life-style traits.e. Choosing media vehicles . pesticides. Example: Hero Honda has opened extension counters with show room facilities in major rural markets. seeds. pesticides. The company organizes demonstrations in a piece of land belonging to progressive farmers. religious events. One of the main objectives of following modern agricultural practices is to increase the yield. weed. Experienced agricultural graduates who make frequent visits to the field and advice farmers on modern agricultural practices manage the centers. fertilizer application. diesel engines. sprayers and tractors etc. Mineral water companies supplying clean drinking water during summer festivals in villages and Consumer goods companies sponsoring Kabaddi.These are extension of field demonstrations. Field demonstrations/field days consume lot of time and efforts and therefore have to be planned well. Life-style marketing: Each rural market segment has certain special features i. They include village sports. nutrients etc. management and control of pests and diseases.
the different media can be classified into the following categories. cost & availability. (a) High reach High frequency • • • • • • • • • • • • • • • • • • • Jeep based advertising Wall painting Bus stand & bus panels Haats Hoardings Postal branding Co-operative notice board Shop front painting Tin plating – house Dealer boards Village boards Well tiles Calendars/labels Van based advertising Melas Direct to home Folklore group Exhibitions/created events Tin painting – tree/shops (b) Low reach High frequency (c) High reach Low frequency (d) Low reach Low frequency .The choice of different media vehicles for any market is based on an analysis of the standard features like: reach. This categorization can help the marketer to make a decision about which type of media would be more suitable to the product & the organization. frequency. Depending on the factor of reach & frequency.
• • • • Leaflets Posters & banners Streamers Danglers COMMUNICATING TO RURAL CONSUMER IS ONE OF THE BIGGEST CHALLEGES FOR ANY MARKETER REASONS : 1. 2. language . consumers spread over the entire country. heterogeneity of the market. culture level of involvement . variations occur by geography . . further compounded by the fact that most of the consumers are not tuned to the mass media. demography .
. media used : posters / leaflets / film / radio programs. haats & melas present this opportunity. Example : advertize should be molded to suit regional requirements. message related to 1) issues on rat control 2)spraying of urea solution on wheat crop & 3)poultry farming. 2) Locate potential consumers with high propensity to spend Example : villages of western Maharashtra are more prosperous than those who reside in vidharba western up more prosperous than eastern up.to grapple with this problem the marketer has to. promotion budgets to be distributed among regional offices on the basis of past & expected sales . respondents : 80 farmers observation : message is either not recd or distorted. 1. 1) Identify geographical locations with a high concentration of rural consumer. Example : in up 27% of the villages account for 71% of the population. ex : following study was carried out on comprehension of communication near Udaipur. Information seeking & processing behaviour of the rural consumer influence media & message many a times the rural consumer may not recieve the intended message for any of the following reasons. consumer may not notice the stimuli provided in the advertisement 2. Comprehension of message a critical problem in Indian rural markets. 3) Localize decisions on media & message using region specific budget.this amount will be then be utilized in conformity with local market conditions to create maximum synergy with sale & distribution spread. message is wrongly interpreted . 3. consumer retains only part of the message.
ex : case study on fertilizers efforts were to create awareness of the product generate interest followed by imparting knowledge . he seeks more info about the product to reduce the risk of purchase. agricultural officers educated farmers about fertilizers and explained the benefits. 1)for any consumer the buying process includes a shift from a)state of awareness b)knowledge c)conviction .drawing of the cynide pump was taken to be a bicycle pump. which results in purchase. communication strategies : 1)launch of a new non durable product : . conviction was related by demonstrating the use of fertilizers in selected plots . 2)involvement level : very high in case of consumer durables like refrigerator / tvs. usha intl started tailoring schools to educate & promote its sewing machines. rat was not understood to be dead a beautifully made film about a fertilizer spray was wrongly understood as a process for pest control before we go to the communication strategies we need to know the rural consumer phyche. willing to spend time & effort in making purchase decision. on the other hand nirma promoted its detergents thru television. low involvement in case of consumer non durables like salt ex: in rural market sewing machine is a high involvement purchase.
3)communication for an existing non durable brand.consumer not aware of the product & its usage. case study : nirma vs wheel of hll. nirma was an early entrant. case study : recollect the case study on the laucnch of cigarettes by imperial tobacco . it was helpful to instruct the rural consumer in the use and benefits of shampoo encourageing them to maintain clean & healthy hair.. get the retailers to push your product by offering attractive margins & incentives. what did the trick was the catchy advertisement . people queued up to have their hair shampooed. ex : shampoo was promoted by demonstrating the application of shampoo. 2)launch of a non durable brand consumers are aware of the product. harp on the usp of the product. marketer has to create awareness of the product & induce its trial. in certain cases it converted the consumer from using bath soaps and other traditional methods. it created a demand pull in the market.loyalty to existing brand among rural consumers is generally very high. 4)communication for launch of a new durable . (usp). major focus is on reminder advertising . market : around jamshedpur. sampling & demonstrations are the methods to educate a customer. servicing the rural retailer & sales promotion. strategy was easy on hands. wheel was a late entrant. very soon it created a dent in the market share of nirma thru better availability (distn network was in place)and creating a perception about quality. ex : colgate palmolive uses supply vans to service the retailer and uses van for promotion. it entered the rural market without any strong distn network.create awareness of the product and induce trial . it offers free sample & screens video films on oral hygiene during the visits.
educates consumer on its use and builds confidence with potential buyers. loyalty is high if the consumer is satisfied with the existing brand.interest.knowledge & persuasion. product needs to have demonstratable advantage over other competitive products. promotion efforts included teahing tailors in village sto stitch jeans. harp on advantage of the brand over the competitors.became votaries for jeans and for ruf & tuf brands.type is made by the consumer after deliberating with the retailer & other users. interest is further generated when he hears neighbours & friends discuss the new product. on his own tries to learn more abt the product and on the advice of others decides on the purchase.model.consumer becomes aware during the launch of the durable. decision to purchase the product . blue revolution 6)communication for existing durable brand performance of the existing brand is very impt 4 consumer who is using the product & keen to replace it. very impt 4 marketer to maintain image by offering timely service & thereby ensuring customer satisfaction. demonstrations & identifying opinion leaders for focussed communication are critical in such situations. ex : arvind mills promoted ruf & tuf jeans to rural markets. creates brand acceptance thru awareness. necessary 4 consumers 2 percieve that their choice of brand is correct. ex : m&m 25 hp tractors. *** recollect the case study . 5)launch of a durable brand marketer has 2 invest time & effort to break into such markets. usha intl ran sewing schools in villages to offer short term courses for women. creates excitement around the product and demonstarates utility. .tailors r opinion leaders for clothing .
eicher wins the contest. festivals & local sentiments of the rural area dabur : ramcharitra manas .ex: eicher : highlights fuel efficiency . in their dialect the word mazaa has a strong sexual connotation and they could not understand how anyone could get corporeal pleasure from a cough lozenge . ex : monocrotophos brand name nuvacron . rural specific messages : ngos recount stories of advts that confuse & scandalise viewers . calenders with religious themes . hanuman chalisa . generic names r used 4 pesticides which r again in english which r very difficult to pronounce . culture. religion. strepsils ad says bahut mazaa aaya . as audience cheers . oranises tug of war contests between its own tractors & those of its rival cos at the pushkar mela in rajasthan. 2)simple & comprehensible presentation :case study : market survey on pesticides all the material released by pesticide companies identify the pests by their english & academic nomenclature. bouncy hair . supplemented with the emotional route to appeal rural consumer. message effectiveness :message decision has to take into account the following factors 1)language . women folk in rural udaipur took offence to the ad as it is considered indecent for women to let down their hair in public. halo shampoo : ad features models with beautiful .
recommended dosages are not being used . noticed that 40% of the respondents recalled claims made in multiple claims advt . packaging . case study : 1st advt shown was of a detergent soap bar which promised xtra whiteness thru extra foam. introduced simple symbols : star / crescent.farmer blames the fertilizer manuf. varying %ges of technical material content compounds the situation further.mosquitoes and spread pleasant perfume.mktg people were are still not able to communicate effectively with the farmer . 6)narrative mssge :- . 2nd advt showed a mother & child in dazzaling white clothes askng the viewer whether he /she used the detergent bar like they did. 4)language . product form . savvy marketer uses signs and symbols the villager can identify with to successfully market his product. signs. size shape & color helps create a strong image of the brand in the mind of the customer. entire exercise complicated . though viewers do not necessarily comprehend all claims. results in improper selection of pesticides .formulation strength . 63% of the respondents preferred the brand which promised xtra whiteness thru xtra foam . 90% preferred brand which supports multiple claims. study:mosquito repellent coils with the single claim of ‘delivering good night’s sleep ‘ and another ad with multiple claims like it drives away flies . symbols and pictorial presentations : design of the product. dosage .consumer prefer utilitarian messages that link benefit to product attribute over value expressive advts. for the ineffective treatment. sometimes multiple claims in an advt appear to create favourable attitudes . 5)utilitarian message :rural.
a)products to be of interest to consumers . 7)source of message : likeable source : testimonial advt using film & sports stars hve been quite successful .percieved to be a rugged bike . ex : lux ex : rajdoot motor cycle sales dipped from 85000 bikes to 76000 in 1987. 8)context associations : associations create interests.use of stories for promotion of products is common approach castrol has a 20 min movie with the brand name of lubricants portrayed as characters in the movie.most important interpersonal source was the person who possessed the product. used dharmendra who represented son of the soil image. expert source :credibility of the source more impt than the attractiveness of a source. easily manoevrable on rural tracks and hvng abilty to carry heavy loads. 67% of the respondents preferred a brand endorsed by the engineer. study :60 respondents from 3 villages exposed to 2 advts for motorcycles.advt resulted in sale scrossing 1 lac pieces in 1990. trustworthy source : ru markts depend on word of mouth commn. one recommende by kapil dev and the other by an engineer.
use of space in hand pumps. *** recollect the example cited on the 2 bicycle ad . hoardings . use of outdoor media is very relevant in rural areas . compared to urban areas the reach of terrestrial television & satellite television is less in rural areas. . b)relevant environment advts with urban settings or those that are far removed from their daily life do not find favour with ru cons as they are unable to relate to such presentation. reach of the media in rural markets influence of audience profile and behaviour on the effectiveness of media non conventional media and their impact in rural markets. posters . radio has urban & rural audience vividh bharathi & news popular with rural audience.recall of advts on products of relevance to the rural audience was higher when compared with the recall for the same products by urban consumers fertilizer and pesticide advts had far higher recall in rural areas. media reach. options available include wall paintings . advantages of advt’ng in tv : lowest cost per thousand and is therefore attractive to fmcg. press has ltd reach in rural areas barring kerala which has a reach of 65%. disadvt : absence of focus on consumer segments . non seperation of urban & rural audiences.
a study on audience response to commercials was conducted in purulia . . 70-80% are males 30-40% illiterate majority were farmers or land labourers. hindi films ) it has been observed that a large no of rural audience do not fully comprehend the main theme. findings. erode and kheda. more than 60% watch national programs in south and north chitrahaar & films are very popular.(rangoli . 2)media preferences : rural. a fairly large no of them feel advertisements not related to their world and do not view them favourably.this is influenced by the prescence of large no of b/w tvs and low priced tv sets that hve ltd channels. < 35 yrs watch more television. factors that influence media effectiveness :1)audience profile : upmarket rural audience exposed to mass media .cons in high income category are more receptive to mass media.no benchmark for pricing and quality usually suffers in bargain for rates.brand loyalty to a programme is fairly high. in south news programs are very popular. 3)channels & programmes viewed :rural viewer does not switch channels. youngsters r the majority viewers of television. traditional media are more effective with av ru audience which is less cosmopolitan and have a lower income. dd1 is the channel with maxn viewership.
in purulia 15% felt the attire depicted vulgar.00 pm hardly has any rural audience and is of little advantage to the advertiser. 10 min b4 prime time there is a switch over to national network.the visuals show a different world and they are not able to identify with them. 4)audience behaviour :a)tv viewing behaviour :tv in ru mkt means doordarshan. 26% do not like advt slots between programs. programs in english understood by minority. with respect to toiletry items proximity to urban areas inluenced purchases. tractor jinle at 11. rural routine is not dominated by clock.:feeder markets or small towns or in shops or roadside hotels. erode 10% felt so. samachar and film music very popular. c)access to news papers. people sometimes buy from one of these place and take them home where others read . whereas 70% like advts slots between programs. prime time tv program – 20-30 mn before switch on the tv. farm news .60% understand the stimuli provided / main theme. sponsor has to exercise care in the media and its usage as otherwise the message is unlikely to be hear among target audience . b)radio listening:vividh bharathi. advt rates are relatively low and can bring the same amt of mileage as prime time advtsg does. 20% remember only the visuals and do not comprehend meaning 12% understood words . .
kavi sammelans and puppet shows hold sway over rural audience. 1)reach 2)ability to generate interest 3)create product or brand knowledge . in many cases the retailers were major influencing factors in ourchase of soaps. non conventional media wall paintings direct mail banners placed on elephants parading thru main bazaars. traditional media like dramas meet all intellectual . proximity to urban areas was instrumental in changing rural habits. non conventional ideas impt from the following communication objetives.newspapers also read at common gatherings. 4)educate and persuade 1. media for effective reach : ex :wall paintings – low cost option – create only visual impact as . puppetry audio visual vans demonstration and sampling at haats and fairs. audience response to media :a)recall by media b)influence on attitude more than tv exposure .emotional & aesthetic needs of the villagers. contests to promote products.
pola fair maharahtra. hll dressess up the propagandist as ‘superman’ to demonstrate the super washing power of rin. green of wheel. handed only 100-200gms samples as opposed to 1kg tin with the mascot conspicuously printed on the packing. influencing agencies and agents of change. some have the blue of rin . . demonstation and sampling to build brand preference : asian paints . pop channels. medium of message should help in attracting attention. contests. message on objects : hll used to station a giant lifebouy boat at alwaye during the onam festival’s boat race in kerala colgate pal used to splash its names on kites during kite festival in gujarat. puppets / drama / animals. mailing campaign –useful with opinion leaders .literacy is low.the contest makes a clear asociation between the company’s audio equip & loudness. audio visual vans . each camel displays different colors. apply sampling strategy. copy should be brief but well illustrated. zeroed in on the bullock cart race. the person who can shout philips name the loudest wins. owners paint the horns with bright colours of asian paints. media that generates interest in the audience.b a strong vet medicine from indian herbs. 4)educating and persuading a ruralconsumer. did not hand out trial tins of paint to consumers. philips organises shouting matches . interactive comm at points of contacts. demonstration . message on animals : camel race in pushkar rajasthan.white of h. 3)media that creates product or brand knowledge :processions and tableaus .sampling. spic would sponsor bull fights in tamilnadu.ex-nirma. 2.
folk performances. so the game provides a good method for inducing trial. contests involving consumers can b interactive and help create awareness. van is festooned with banner or painted in gay colours. haats. special events in banks . entry ticket is a pack of cigarette . audio visual van – colgate. mandis . brooke bond adopts tea stalls that tempt villages to sample its products by offering free cups of tea.interactive media. where its salesmen who r dressed in white aprons resembling doctors extol the virtues of anacin. knowledge and trial. schools . p. emerging non conventional media. geoffery manners participates in village melas . ex: building tower stacks with cigarette packets or locating buried treasure. .o . : points of contact with rural audience – fairs. stalls at local fairs can also be interactive.
It is right that the profit margin is very low in the FMCG products. The consumer wants those products which are long lasting.Conclusion Thus looking at the challenges and the opportunities which rural markets offer to the marketers 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. The companies can reduce their prices by cutting the costs on the packaging because the rural consumers don’t need attractive packaging. Rural market has an untapped potential like rain but it is different from the urban market so it requires the different marketing strategies and marketer has to meet the challenges to be successful in rural market. but at the same time the market size is much large in the rural area. easy to use and cheaper. It is necessary for all the major companies to provide those products which are easy to available and affordable to the consumers. good. It is one of the reasons that the sell of sachet is much larger in the rural area in all segments. The income level of rural consumers is not as high as the income level of urban consumers that’s why they want low price goods. Application of 4A* is also a major task for the major companies in this area. The rural market is very large in compare to the urban market as well as it is more challenging market. .
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