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Sub themes: Marketing management
Name of the authors 1)Shwetha MK
Name of the institution St. Aloysius college. (Autonomous) St. Aloysius college. (Autonomous) St. Aloysius college. (Autonomous)
E-mail ID mkshwetha11@g mail.com 9449236555 jenniferprakash@ rediffmail.com 9448448617 zeenamendonca@ gmail.com 9448910892
Title of the paper Excellence Practices in Rural Marketing: Key observations.
Category of sub themes Marketing management.
3)Zeena Flavia Dsouza
Excellent practices in rural marketing: key observations. Agricultural marketing denotes marketing of the products of the rural areas to the urban and rural marketing includes delivering manufactured processed inputs or services to rural producers or consumers. All these factors indicate that the reach to urban markets is becoming very challenging and tough which requirement huge investment and sometimes may even bring a negative impact on profitability. The concept of rural marketing has always played an influential role in the lives of people. The rural areas are now consuming large quantities of industrial and urban manufacturing products with the rising of rural incomes. Prahalad addressing Indian CEOs Jan 2000 The Indian marketing structure is dichotomous having both rural and urban markets. the marketing executives have discovers the strengths of large rural markets and are trying to expand and enlarge their markets from urban areas to rural areas as well. The competition in urban markets is also becoming very tough due to which the firm have to incur heavy promotional expenditure. In the context a special marketing strategies namely rural marketing has emerged. In the present context an analysis of the urban market indicates that they sure getting saturated for several categories of consumer goods which are making it difficult for most of the corporates to tap them with high profit margins. Rural marketing is often confused with agricultural marketing but they do not mean the same.K.C. Moreover. The rural market in India is not a separate entity in itself and it is highly influenced by the . Shwetha mk Jennifer Maria Quadras Zeena Flavia D’Souza. “The future lies with those companies who see the poor as their customers” . Rural markets on the other hand are becoming more attractive as especially in India and china as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. the awareness level of urban consumers is increasing which make the product innovation a major requirement for successful operations.
the rural markets.6 million HHs in rural & 6. As the rural region compromise of the maximum consumers.. 50% are in small towns/villages Of the 6. Attractiveness of Rural Marketing in India Rural markets are attractive in India because of the following attributes substainted by the facts given below: • 742 million people Estimated annual size of the rural market:FMCG Durables Agri inputs (including tractors) 2/4 wheelers Rs 65000 crore Rs. So the marketers are looking for extending their product categories to an unexplored market i.77 billion resulting in tremendous liquidity. 5000 crore Rs.22 lakh have a village public telephone(VPT) 41 million kissan credit cards have been issued (against 22 million credit. • Of the 20 million rediffmail sigh ups.plus. 50% off transactions from these towns are on rediff online shopping sight • 42million rural household (HHS) are available banking service in comparison to 27 million urban HHs. 5. it brings in bigger revenues in the country.sociological and behavioural factors operating in the country.debit cards in urban) with cumulative credit of Rs 9.e.0 lakh villages. • Investment in formal savings instruments is 6. 60% are from small towns .7 million HHs in urban . 45000 crore Rs 8000 crore • • • • In 2001-02 LIC sold 55% of its policies in rural India Of 2 million BSNL mobile connections.
1 12.6 Markets can make effective use of the large available infrastructure • • • • Post offices Haats (periodic Markets) Melas (Exhibitions) Mandis (agri markets) 138000 42000 25000 7000 .Opportunities for rural marketing in India: Infrastructure is improving rapidly.5 12. and it is projected that in another 10 years 30% villages will follow. every 1000 plus population is connected by STD.3 82.0 FMCGs Urban Rural Total (% of rural HH) Shampoo Toothpaste 66. Rural telephone density has gone up by 300% in the last 10 years. • In 50 years only 40% villagers are connected by road.2 44.9 44.2 55.8 3. Durables Urban Rural Total (% of rural HH) CTV Refrigerator 30.2 35. • • More than 90% villages are electrified.4 335 4. Social indicators have improved a lot between 1981 & 2001 • Number of pucca houses doubled from 22% to 41% & kaccha houses halved from 41% to 23% • • Percentage of BPL families declined from 46% to 27% Rural literacy level improved from 36% to 59% Low penetration rates in rural areas provide many marketing opportunities.
Maharashtra (annual sale Rs 40 crore) Paradigm shift in the behaviour of rural consumers in India: 1. biscuits etc in rural areas. There is also visible shift from local and unbranded products to national brands. . people are more concerned about how he or she looks and dressed. • • • • • DSCL Haryalic stores M&M Shubh Labh stores TATA/ Rallis Kisan Kendras Escorts rural stores Warnabazzar. 4. Social status: There is substantial change in the lifestyle of rural people because of higher levels of income. For instance. from traditional mosquito repellent to coil and mats. 3. households are upgrading from indigenous teeth cleaning ingredients to tooth powder & tooth paste. The villages are more loyal to branded products and they purchase same brand each time. Awareness among rural consumers to differentiate between branded and unbranded products: In the rural families studies indicate a slow but determined shift in the use of categories. This awareness has increased the demand for durable goods like motor cycles. refrigerator etc and non-durable goods like soaps. In the modern rural world consumer durables are considered as status symbol as the rural people now aspire for comfort. 2.• • Public distribution shops Bank branches 380000 32000 Proliferation of large format rural retail stores which have been successful also. quality and convenience. cosmetics and toiletries in rural markets. Rural people are now fashion conscious: Because of the exposure got through television rural. television. Awareness among rural people about the qualities of the product: The increase in the literacy level and the income level has created awareness among the rural people about the quality of the product. This has increased the sale of textiles. study reveals that 50 to 60% of consumers were found to be buying the same brand each time. consumption and consciousness about their social status. from low priced brand to premium brands. expenditure.
1. Associating with India and highlighting the spirit of an Indian: Companies are associating with India by talking about India and by explicitly saying that they are Indians with the view to attract rural consumers.5. Change in the attitude and mind set of the rural consumer: The rural consumers have changed the attitudes and inhibitions related to the use or consumption of certain products. Promoting products through advertisement with Indian models and actors: As Indians are attracted and also associated them self to Indian models and Indian actors. Thus many companies are promoting their brands by exhibiting their social and cultural values. Appropriate communication and changing quality perception: Companies coming up with new technology are properly communicating to the rural customer and this has resulted in a trade-off between the quality a customer perceives and a company wants to communicate. In spite of using local manufactured low price p[products. 6. rural consumers are more attracted towards new branded products without being price sensitive. 5. They are ready to pay higher premium for acquiring higher utility from the products. 4. This changed perception needs to be targeted by the organisations to capture rural markets. 3. Thus. Promoting products by communicating n local languages: Most of the companies have started promoting their products and selling the concept of quality with proper communication. For eg: getting flush toilets constructed in the home is more considered as unclean. Understanding cultural and social values: Rural people are also emotional and sensitive. Nokia has designed a new . 2. the position of technology becomes very crucial in rural marketing. companies need to focus on advertisement which depict the models and actors with a view to promote their products and thereby attract rural consumers. Excellent practices in rural marketing: Rural markets operate in an environment that is associated with some related problems which needs to be tackled by evolving certain strategies specifically rural marketing. Targeting the changed perception of rural customers: Villagers are looking for new branded products as rural Indian customers now want value for money with the changed perception.
ITC e-choupal and the Strategy: ITC followed a different media/communication strategy which is more elaborate and extensive in rural marketing so far. India Go”. Promoting Indian sports Team: Companies are influencing Indian mindset by promoting Indian sports teams so that they can associate themselves with India. With this. with the India tri-colour and a ringing tone of “Sare Jahan Se Achcha” 7.cultural phone 5110. Giving Indian words for Brands: Companies are using Indian words for brands. and to withstand long power cuts. By the end of 1999. 9. Hero Honda is promoting Indian cricket team and during this world cup they have launched a campaign “Dhak Dhak Go. which benefits both the farmers and the organisation. Electrolux is working on a made for India fridge designed to serve basic purpose: chill drinking water. greeting cards and other FMCG products. they influence Indian mindset. 8. roughly 12 thats Rs. paperboards and specialty papers.114crore worth of TV sets sold in the villages in a year. All The Best”. LG has launched a campaign “LG Ki Dua. Marathi and Tamil tongue. Case study: ITC e-choupal: ITC is one of India’s foremost private sector companies with a market capitalisation of over US $14 billion and a turnover of US $3billion. 10. Developing Rural specific products: Keeping into consideration the requirements of rural people. ITC has a diversified presence in cigarettes. companies are developing rural specific products. The word is a part of the Bengali. Hindi. Agri-business. Talking about normal Indian: Companies are talking about a normal Indian when promoting their products so that the rural consumer tries to associate himself or herself with the product and become loyal to it. keep cooked food fresh. LG has used India brand name “Sampoorna” for its newly launched Television. packing. The strategy is to use the information technology and bridge the information and service gap in rural India which gives an edge to market its .
e-choupal has already become the largest initiative among all internet-based interventions in rural India. ITC offers to buy the crop directly from any farmers at the previous day’s closing price. They also use the e-choupal to order seed. The computer. where the crop is weighed electronically and assessed for quality. innovation here indicates a complete approach to meet the needs of rural consumers. As marketing to the rural folk has to be innovative. This requires considerable investments in terms of efforts in evolving appropriate strategies and excellent practices to tackle these . Andra Pradesh. Launched in June 2000. serves an average of 600 farmers in 10 surrounding villages within about a five kilometre radius.5 million farmers growing a range of crops. Maharashtra and Rajasthan). Fertilizer and other products such as consumer goods from ITC at price lower than those available from village traders. the farmer then transports his crop to an ITC processing centre.soyabean. The company has initiated an e-choupal effort that places computers with internet access in rural farming villages: the e-choupal serve as both a social gathering place for exchange of information and an e-commerce hub. Success in rural markets depends upon understanding the unique characteristics of rural market environment in India. typically housed in the farmers’ house is linked to the internet via phone lines or by VSAT connection. Uttar Pradesh. (Madhya Pradesh. Karnataka. as well as to track global price trends or find information about new farming techniques directly or via the sanchalak who is the village farmer who runs the echoupal and acts as ITCs representative in the village. The farmer’s can use the computer to access daily closing prices on local mandi. fertilizers and pesticides and other products like consumer goods. The farmer is then paid for the crop and a transport fee.products like seeds. At harvest time. E-choupal services today reach out to more than 3. Conclusion: Rural markets are for marketers and entrepreneurs with perseverance and creativity. and pulses in over 31000 villages through 5200 kiosks across six states. rice. wheat. coffee. In addition they can also know about weather forecast (local).
problems. Rural Marketing: Challenges.htm. Pinto Santhosh. Rural Marketing from file:///H:/rural%20mkt/Rural-Marketing. References: 1. 5.313-317 3. pg. ISSN 09730974 Vol 3. Rural Marketing: Challenges. Rural Marketing in Indian Economy from file:///H:/rural%20mkt/Rural%20Marketing%20in%20India%20Economy. pg. htm 6. Thus rural India has a plethora of opportunities all waiting to be harnessed. Rural Marketing in India – Relevant issues. opportunities and strategies from file:///H:/rural%20mkt/rural%20mkt. No-2.1-17. Advertising and sales promotion strategies in Rural Marketing from file:///H:/rural%20mkt/Sales%20Promotional%20Strategies%20In%20Rur al%20Market. 4. Tatva – The essence of excellence.htm 8. M Nagaraj and Shanbhag Santhosh.htm 7. opportunities and strategies from file:///H:/rural%20mkt/19653207. What is the role of Rural Marketing in India from file:///H:/rural%20mkt/what-role-rural-marketing-in-india. sep 2006. Devi Bhuvana N.htm .htm 2. Emerging Trends in Rural Marketing. Innovations and organisational changes: Theory and concepts.
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