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RURAL MARKETING PROCESS:

Rural Marketing is a Two-Way


process:
- Rural to Urban and Urban to Rural
Rural to Urban:- Agril. produce,
Vegetables, Fruits, Wheat, Rice, pulses,
and Milk etc.(produced in Rural area).Consumed in Urban area.
Urban to Rural:- Consumables,
Consumer durables, Agril. inputs (Seed,
Fertilizers, Pesticides, Insecticides etc.),
Implements (Tractors, EPS/DPS, Threshers,
Sprinklers) are supplied from Urban areas
to Rural areas.

RURAL MARKET STRUCTURE:


1. Demographic Environment:
Though, the population from Rural have
migrated to Urban but the purchasing
power have increased in Rural Area. It has
increased from 40% in 1991 to 42% in
2001 and 48% in 2011.

For Marketers, the population in


young age-group shapes the marketing
environment. Adult youth (20 to 35
years) in Rural is 23% and in Urban it is
27%. There is great scope in Rural Market
for young generation.

2. Education & the Level of


Demand: Due to increase in Literacy
level in Rural area it has changed the
Socio-Economic status of the people.
The demand for Educational products
e.g. Books, Magazines, Note-books,
Pen/Pencils, Drawing instruments,
Calculators, digital dairies,
Computers etc. have increased.
Overall products and brand
awareness have increased and rural

more matured in purchase decisions.


3. House-hold Pattern: The
Family structure in rural area have
changed from Joint family to nuclear
family.
Nuclear family live separately at the
same place in rural area. The range
and Branded products are
purchased by the

Nuclear family. Thus, there is good


market for branded products in Rural
Area.
4. Rural Housing Pattern: The
rural housing pattern have increased
as under
from 2001 to 2011 :
(a) Pucca House from 41% to 62%
(b) Semi-pucca house from 36% to
24%

Pucca Houses are increasing in Rural Area


by 5% every year & they have surplus and
sufficient disposable income. Therefore,
the use of Cement, Iron, wood work,
colour & paints & furnishing have
increased in Rural Area which shows
good market potential.
5. Occupational Pattern: Urban and
Rural population or house-holds have
different occupational pattern.

Occupational pattern is as under:

Occupation
Urban
Rural
1. Cultivators
3.45% 40.86%
2. Wage earners
20.93% 35.28%
3. Salary earners
40.72% 11.28%
4. Professional
3.59%
0.73%
5. Artisan s
6.90%
3.41%
6. Petty Shopkeeper
16.05%
4.97%
7. Businessman & Others
8.37%
2.45%

Wage earners and Salary earners have


different Buying Behaviour.

Daily wage earner have variation of


income, whereas a Salary earner brings a
fixed income, hence he can plan expenses
in a better way.

3/4th Rural House-holds are either


Cultivators or wage earners whereas 3/4th
Urban house-holds are Salary earners &
shopkeepers & wage earners. Salary
earners have more buying power as
compared with wage-earners.

Cultivators has seasonal income


(after harvesting). He makes
purchases immediately after
harvesting season. Durable goods
are purchased by him at this time.
Thus, the marketer must take care of
time for sale of its product.
Physical Environment: Physical
environment in Rural and Urban area
is different.

In Village Area:
(i) Abadi land & Cultivated land is
seen. (ii) Abadi is seen in Cluster or
Individiual House.
(iii) Farmer live in Abadi land in
general. (iv) Houses are mostly
Kuccha and partly Pucca.

Number of shops in Rural area:


(i) Population < 500 : Hardly 1 or 2
shops

(Known as small village).


(ii) Popu. Upto 2000 : About 16 shops

(Also known as developed


village).
(iii) Popu. >2000 : 50 to 100 shops

(Big village or classified as Town)

Marketer should target this


category of village area where
population is more than 2000.
Number of shopkeepers are also
available to market their product
along with sufficient number of
population .

There are > 2000 Towns having


population between 20,000 to
1,00,000 in India. Rural people buy
their 90% of durables from these

Economic Environment:

In Rural area the higher income class


has grown by more than 6 times. There is
an increase in middle and upper-middle
classes from 8.3% to 14.3% by 2000. And
now in last 10 years it has reached to the
level of 19%.

Rural per capita income is


increasing. Increasing incomes are
changing expenditure patterns. More
consumer durables are purchased in Rural
Area due to increase in income.

Per capita income is highest in


Chandigarh in Urban, Semi-urban
and Rural area and is lowest in U.P
(in Urban); Orissa (in Rural and also
in Semi-urban area).
Per capita consumption expenditure
in rural has increased FOUR TIMES
in last 20 years.

Rural population is spending 40% on Nonfood items. It shows an encouraging trend


for Consumer durables and non-durables.
SOCIAL AND CULTURAL
ENVIRONMENT:

The Social and Cultural environment in


Rural area is changing hence, people are
buying branded products to show their upgraded social status. Rural people are
buying following consumer and
durable goods:-

Some well established products:


Pressure cooker, Artificial Jewellary
Cooking utensils, battery
Tobacco products, tea, Coffee,
Soap, detergent, sewing machine
Glass ware, electrical goods, fan, light
items,
Bicycle, mobile phones, wrist watches
Construction materials
Consumable Agri. Products, Biscuits etc.,

Rural area requirements:


1. HOUSEHOLD CONSUMABLES:
More and better food
Better clothing
Medicines
Toiletries and Cosmetics
Educational supplies (Stationery)
Wines & Spirits
Cigarettes, Beedies and Beverages.

2. Household Durables:

1. Furniture
2. Cooking utensils
3. Electrical appliances
4. Radio and Television sets
5. Clocks and Wrist watches
6. Sewing Machines
7. Ornaments & Jewellery.

3.CONSTRUCTION MATERIALS:

1. For residences
2. For infrastructure facilities
3. For rural and cottage industries
4. For business establishments
(shops)
5. For Society/Community
institutions
6. For School and Hospital use
7. Other utilities

4.CONSUMABLE AGRICULTURAL
INPUTS:

1. Manures and Fertilizers


2. Seeds including Hybrid seeds
3. Agro-chemicals (pesticides etc.)
4. Petrol, Diesel, Oils and Lubricants
5. Electricity.

5.Capital Agricultural Inputs


1. Tractors, Trolley & other
implements
2. Ploughing Disc, Leveller,
3. Harvesters, threshers, Cutters
4. Pump-sets Diesel Engine, and
EPS
5. Pipes and fittings for irrigation
6. Drip Irrigation equipment,
Sprinklers

6.TRANSPORTATION
EQUIPMENTS:
1. Bullock/Camel Carts
2. Bicycles, Motor-cycles and
Mopeds
3. Jeep/Car
4. Light commercial vehicles
5. Three Wheeler (Auto)
6. Small Road Transport Vehicles

7.SERVICES REQUIRED IN
RURAL AREA

1. Banks and its branches


2. Health clinics and Hospitals
3. Educational Schools and Colleges
4. Coaching Centers
5. Transport facilities
6. Communication and Courier
Services
7. Electricity supply on regular basis.

It is up to the Marketing Companies


or marketers to identify the needs of
different areas and fulfill them accordingly.

Role of Print Media is very


important in Rural Area. Daily
newspaper can play a big role to highlight
any consumer/ durable product for rural
area.

In Kerala, Maharashtra and Karnataka


some daily newspapers are playing very
important role and buying behaviour is
different from other states.