Rural Marketing

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RURAL MARKETING
 Rural marketing is the study of all the activity
involved in the procurement of farm inputs by
the Farmers as well as other consumer &
industrial goods and the movement of rural
products from farmers to consumers.

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Rural Marketing
Product/offering types
Consumer products : Good scope
Industrial products : Limited scope
Services : limited scope

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Nature of Rural Marketing
 The rural market is quite different from
urban markets.
 Agriculture is the chief economic activity in
rural areas, the entire village population is
associated directly or indirectly to
agriculture.

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Rural Marketing
Ruralmarketing is a new BUZZ word in
Marketing world today.

The emerging economy is mainly driven not by

a few super rich people and not even by middle
class.
It is driven by millions of aspiring poor people
who are joining the market for the FIRST time.

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Rural Marketing - Types
 Functional and Product oriented concept
Urban to Rural : Two wheelers and TV
Rural to Urban : Agricultural produce and diary
products
Rural to Rural : Farm implements, Bamboo products,
etc
 Socio economic Concept
Process of delivering better standard of living to
Rural population – Oral care, Soap, e-choupal, etc..

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Rural Market Profile
 Consumer goods
 Food: Tea, coffee, health/soft drinks, biscuits, chocolates
 Non-food: Toiletries, Oral care, Dress material
 Durables: fans, Sewing machines,
 High value: TV, Refrigerators,
 Agricultural inputs and Machinery
 Seeds
 Fertilizers
 Pesticides
 Equipment, Oil engines, Tractors

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Rural Market Profile
 Services
 Insurance - LIC
 Banking
 Health
 Transport
 Education
 Construction materials for houses and industrial sheds
 Transportation equipment Tractors, Trucks, jeeps, cycles

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Rural Market – 4 A’s
 Place - Availability – access to buy the product

 Price - Affordability – smaller size packets- parleG,

Coca-Cola, etc,

 Product - Acceptability – Easy to use, Utility

 Promotion - Awareness- Educate to use, health

benefits, Sanitation, etc

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Rural Market – 4 P’s- 4 A’s
Product (Acceptability )
 Sturdy products : heavier, the stronger, rough use
 Smaller designs- Chota cool from Godrej, Chota
coke for Rs 5/-, LG TV Sampoorna with Hindi letters
display for first time
 Small unit packaging- Sachets, biscuits for Rs 1/-
 Utility product Vs look: Windable Radio from
Philips without a battery

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Rural Market – 4 P’s
Pricing (Affordability )
 Price sensitive due to low income group
 No frills product- Washing machine w/o dryer
 Discounts and promotional prices during festivals
 Exchange schemes

Promotion (Awareness)
 Local language paper advertisements
 Wall paintings
 Radio and TV- Local language
 Promotional films for Agricultural products

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Rural Market – 4 P’s
Place and Distribution (Availability)
 Satellite distribution for group of villages
 Syndicate distribution: Non- competing companies
joining hands( P&G and Marico join hands)
 Project Shakti : HUL empowering women to take
dealership of products
 Melas and Fairs : Kumbh mela, etc
 Weekly market day

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Rural Retailing
 E-Choupal Sagar: ITC initiative in MP. Mall spread over
6 acres sells all types of goods and services to villagers

 Godrej Agrovet (GAVL): In Maharastra. Consumer and

agricultural inputs, Banking, postal, pharmacy

 Co-operative Society : Diary and Agricultural products

Ex AMUL

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

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Various factors which have made
rule markets viable:-
1. Large Population
2. Raising Population
3. Growth in consumption
4. Lifestyle changes
5. Market growth rate higher than urban
6. Rural marketing is not expensive
7. Remoteness is no longer a problem.
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