You are on page 1of 44

By : Naveen (82) Pradipta (95) Rohan (114) Saket (124) Tarun (153


Government agencies like IRDA (Insurance Regulatory Development Agency and NCAER (National Council for applied Economics Research) define Rural as village with a population<5000 with 75% male population engaged in agriculture.


Developing the Market in the Rural area encompasses the activities such as developing the process to meet the object- right product at the right price to the right people at the right time.

` ` ` ` ` `

Size of the market Largely untapped Too crowded urban market Income on the rise/disposable income Income flow from Urban/abroad Better exposure-media

Results: Great success stories. Asian Paints-60% Colgate-50% LG-50%

Awareness level.Extreme Diverse Market Villages. Population. Income Literacy levels. Languages ` . Spread.Size.



Tool kits used for rural market research .

` ` ` ` Faces .Sad Friendly attitude Number of Coins Cards .Happy««.

Points to Remember for Rural Marketing .

Need to be informal Speak local language Do not jump to survey.if he offers tea do not refuse .` ` ` ` ` ` ` ` Build Rapport Greet.speak other matters of interest Gradually lead to objective of the interview Explain the objective of the survey Interviewer should be aware of the rural area Do not make responder uneasy.


` ` ` ` Village population Location of village w. nearby town Average size of farmland ownership of villagers Per capita income of a region .t.r.

` ` ` ` T-Series introduced audiocassettes at a low price to take away share of market leader HMV Calvin Care came out with Chick shampoo priced 50 paisa ± an instant hit in rural market Titan introduced Sonata watches for semi-urban markets Asian Paints introduced Tractor enamel paint in rural areas ± decently successful .

Key differences ` Per capita income ` Disposable income ` Literacy levels ` Infrastructure ` Communication ` Geographical spread ` Various local substitutes .

` ` ` ` Marico in North Africa Tata in South Africa as Noetel Bajaj in Indonesia and Cambodia Godrej in Latin America .


Horses Wells. ash Bullock cart. Earthy materials. Retha New Products Toothpaste. Mopeds. tooth powder Washing powders.Needs Brushing Teeth Washing Vessels Transport Irrigation Hair Washing Old Products Neem sticks. Charcoal. Brick powder. pump sets. power Generators. Scooters Motor Cycles Bore-wells. Motors. Rock salt. Wind mills Shikakai powder. Water lifters. Shampoo and hair care products . Husk Coconut fiber. soaps And liquids Tractors. Canals.

Onida) Services Telecom. PNB. radio. Sewing Machines. Fan. Videocon. Coke. (Philips.FMCG ( Dabur. Dena Bank) Agri-inputs Seeds. watch. Bayer) Classification of Rural Products . Banking. Two-wheelers. Insurance (Airtel. Colgate. SBI. Fridge. pesticides. LG. Marico. BiCycle. Pepsi) Consumer Durables TV. Pressure cooker. tractors (Rallis India. Health care. music system. BSNL.

Thumps up .` ` ` ` Easy to use Conveniently packed ± Success of sachets Product language to be simple. easy to comprehend ± Thanda Matlab Coca cola Have a logo ± easy to identify e.g.

` ` ` ` ` ` ` Large number of small Markets Dispersed population and trade Poor connectivity Low availability of suitable dealers Inadequate banking/credit facilities Poor product display and visibility Poor communication of offers and schemes .

1. Traditional Channel 2. New Emerging Distribution Channels .

PepsiCo. Petrol Pumps Public Distribution System .Traditional Channel New Emerging Distribution Channels Local Retailing Organizing Retailers .Haryali Kisaan Bazaar HAAT Corporate Society MELA Nehru Yuva Kendriya Sangathan HAAT Distribution Model Mobile Traders Delivery Vans Satellite/Hub/Spoke Model Coke.

5000. The average monthly sale per village shop is less than rs. These are small retail outlets.` ` ` Rural India accounts for 65% of the retail outlets in the country. .

Traditional Channel ` ` ` ` These are periodic markets. These are the oldest marketing channels. It is the means for distributing local products and exchanging rural surplus. They provide a first contact point for villagers with the market. .

of visitors who visit these Melas. ` ` ` . 2. Melas are generally used to sell durables.000 Melas are held every year all over the country. Over 25.000 are cultural Melas and 18. These are some sort of assembly of small and medium retailers who assemble to sell their products to the large no.Traditional Channel ` It is a low cost distribution channel. 5000 are commercial Melas.000religious Melas. Out of these. high-priced items and new products launched.

Traditional Channel ` It is an age-old.g.. E.FMCG companies. They carry their products on bicycles. ` ` . direct to home. or on foot. unorganized distribution system in rural India. mopeds. They sell variety of daily need products and mostly local brands. handcarts.

.Traditional Channel ` ` Some companies use their own delivery vans to reach customers. e.g. They take the products to customers and retail outlets in every corner of selected rural markets.Eveready..

Cooperative societies function like warna Bazaar markets for rural consumers. .New Emerging Distribution Channels ` ` India has the largest network of cooperatives in the world. where consumables. household durables and agricultural products are sold at economical and reasonable prices.

purchase of parley brands(limca) by coca cola India.. to jointly distribute a collective group of household products in rural markets by sharing distribution costs E.New Emerging Distribution Channels ` Under this approach two or more companies come together to form a syndicated trading organization. .g.

project DISHA by Colgate.New Emerging Distribution Channels ` NYKS is a govt. etc. E. .g. ` . Here these ex-NSVs are used for the distribution and promotion purpose in the rural customers. vocational training programmes. organization which involves young people as national service volunteers in awareness raising campaigns.

in addition to selling petroleum products have also started selling consumables like food products and toiletries etc . These pumps.New Emerging Distribution Channels ` ` In India there are over 12000 petrol pumps spread across the country.

New Emerging Distribution Channels ` It is a system of distribution for essential commodities to large number of people through a network of fair prices shops or ration shops. .

They are the ones who help in building Trust.` ` They are the face of the Organization ± the Ambassador They are the ones who have direct interaction with Potential Consumer/Customer Users Dealers Distributors Retailers ` ` ` They are a major link to the chain and establish the link. They need to break the rigid ideas and preconceived notions .

TRAIN Sales force compensation.1. motivation & reporting Sales co-ordination/ sales control 2. 8. 3. 7. Set the personal selling objectives Formulate the sales policies Structure the sales force Size of the sales force Assigning sales targets Creating sales force ± SELECT. RECRUIT. 6. . 4. 5.

` ` ` ` ` ` ` Hardworking Have Empathy Enthusiastic Perseverance Knowledge Attitude Skills Common traits ` ` ` ` Willingness to work in Rural Areas Adopting to cultural differences Down to earth approach Fluent in local language TRAITS OF A RURAL SALESPERSON .

is not complete if there is no feedback. however. it is very important to re-enforce messages in Rural area.` Effective Communication goes a long way in establishing the right Messages and thereby more interaction with Potential Customers Communication. ` .

No scope for gimmicks.‡ . ‡ .Think in the local language to capture the local spirit in the communication aimed at specific region.Take time in communicating the message ‡ Quickies have no impact. ‡ . .Keep the communication simple« ‡ .

g Marriage) Purchasing power also depending on weather.` ` ` ` ` ` ` ` Literacy level Media Habits Traditional approach High resistance ± more so initially Lavish at occasions (e.the crops Inequitable distribution of wealth Too many languages Culture .

V /Cable network ‡Satellite Channels ‡Radio ‡Print ‡Cinema/ ‡Theatre ‡Word of mouth ‡Video on Wheels. Eveready Traditional Media (Non Conventional) ‡Puppet Shows ‡Folk Theatre/Opera ‡Demonstration ‡Haats and Mela ‡Wall painting ‡Post card and posters ‡Booklets/Calendar Advantages ‡High involvement ‡High Interest ‡Localized administered at low cost Disadvantages ‡Coverage ‡Repeat /Re enforcement Skill of performer Companies using this medium ‡Bajaj. ITC .RURAL MEDIA Mass Media (Conventional) ‡T. Onida. Videocon ‡Mahindra Tractors. Advantages ‡Excellent Reach ‡Less expensive ‡wider coverage Disadvantages ‡At times unnecessary coverage ‡No customized messages Companies using this medium ‡Levers. Levers. HUL.

‡ Demonstration ± a key element for success .

Dalda Vanaspathi Demonstration .