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Rural Page

Rural marketing involves production and post-harvest operations based on technical and economic considerations. There are opportunities in rural India as 72% of the population lives rurally, with the market growing five times faster than urban and increasing incomes. Challenges include poor infrastructure, traditional media ineffectiveness, lower literacy, and dependence on good harvests. Successful rural business strategies include focusing on last-mile distribution, affordable and acceptable products, and creating awareness through local influencers.

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Shivank Aggarwal
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42 views

Rural Page

Rural marketing involves production and post-harvest operations based on technical and economic considerations. There are opportunities in rural India as 72% of the population lives rurally, with the market growing five times faster than urban and increasing incomes. Challenges include poor infrastructure, traditional media ineffectiveness, lower literacy, and dependence on good harvests. Successful rural business strategies include focusing on last-mile distribution, affordable and acceptable products, and creating awareness through local influencers.

Uploaded by

Shivank Aggarwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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RURAL MARKETING-Decisions to produce saleable farm commodities involving all the aspects of the market system or

structure, both functional and institutional, based on technical & economic considerations and includes the pre & post
harvest operations.
OPPORTUNITIES-72% of the population lives in rural India, market growing at five times the pace of the urban market,
increasing rural disposable incomes , generates almost more than half of the country's income, 40% villages have been
connected by road, in next 10 years another 30% would be connected, More than 90% villages are electrified
ex: In 2001-02, LIC sold 55% of its policies in rural India, Of two million BSNL mobile connections, 50% are in small towns /
villages , Of the 20 million Rediffmail sign-ups, 60% are from small towns. 50% of transactions from these towns are on
Rediff online shopping site. The default rate among the poor is actually lower than the rich: they pay on-time

Amul: collecting milk from almost 12 million farmers, testing it, grading it, transporting it twice a day from 100,000 villages over
10000 routes to about 200 dairy plants, processing it, packing it and sending it to the market in almost 800 big and small towns

DABUR: They designed a mobile bowling alley where the pins represented as germs . average cost to less than Re. 1 per
customer.Even a small percentage of conversion would lead them to profits.

CHALLENGES: Poor infrastructure facilities, Traditional media ineffective,Lower literacy, non-availability,Poor reach of mass media,
Still dependent on good monsoons and rich harvest , High initial market development expenses, Though > 90 % villages electrified,
only 1/3rd rural homes have electric connections , Varying linguistic & socio-cultural norms, Role of women in buying process ,
Resistant to change , High brand loyalty , Quality Conscious , Many layers of intermediaries , Reluctant to go in for credit
purchase as it is considered to dilute his status and reputation in the village

RURAL BUSINESS HUBS: It aims to foster & permeate economic growth into and for rural India. Involve industry to improve/refine
the locally available resources and produce goods of quality & standards that are nationally & internationally acceptable. To provide
a mechanism for industry to procure agri produce from the farmers, but has been conceptualised as model for overall development
for rural sector.

How to tap rural market: sachet marketing, Focus on DISTRIBUTION is key, Design of products must take into account the skill levels, poor
infrastructure, and difficulty of access for service in remote areas, Repetition and consistency of packaging, colors, brand message &
imagery, prices, all reinforce brand belief, leading to brand loyalty , Rural consumer primarily seeks and gets his information from
opinion leaders and influencers, rather than media , by road shows and exhibitions , touch & feel , Creative Use of Products:
Horlicks in feed of the cattle, Iodex use in villages of Bihar on tired limbs of cattle , Weavers using condoms in villages of U.P ,
47,000 haats, mandis , Local festivals like Navratri, Durgapuja , nautanki , Doordarshan coupons, contests, demonstrations and
sampling, Example: Tata Shaktee Haat Hungama

FOUR A’S: Availability: HLL: Stockists use bicycles, bullock carts and even boats in Kerela backwaters, Coca Cola: Hub and spoke
distribution channel

Affordability: HLL: Lifebouy at Rs 2 for 50 gm packs, Coca Cola: Chota Coke-200 ml glass bottles

Acceptability: Coca Cola: Low cost ice boxes

Awareness: Coca Cola: Doubled ad spends on Doordarshan ,LG Electronics: Vans and road shows in local language, Philips
India: Wall writing and radio ads, coupons, contests, demonstrations and sampling, Example: Tata Shaktee Haat Hungama

HUB AND SPOKE STRATERGY BY COKE : Distributors (hubs) in key districts and connected villages ,Large distributors sold the product
to small distributors (spokes), They in turn supplied these in small quantities to the village retailers

LG SAMPOORNA AND MAHINDRA MAXX STRATERGY: Launch of a low price model,Opening up offices in the Interior
heartland,Keeping a name that’s not western,Having an option of displays in regional language ,Reduce number of extra features or
build a separate brand.

ITC E CHOUPAL: International market prices of commodities, Expert opinion on future price movements, Minimize transaction
costs, Buying output at the farmer’s doorstep,Through transparent pricing and weight management practices , Win – Win
transaction model – Both farmer & ITC gain from elimination of middle men & provision of timely information
Akashganga CASE: Is a computerized system. When a farmer gets milk into the collection point, it's weighed and the amount of fat
measured and immediately an entry is made on the farmer's swipe card. The money can be collected immediately.

EXAMPLE OF PRODUCT DEVELOP. FRO RURAL: While quality certainly matters, the rural consumer also has a straightforward, no-frills approach
in some cases. To illustrate, “Garnier” shampoo has not clicked much, since it is perceived to be “too soft” and does not produce enough jhaag
(lather). Likewise, the farmer is fairly content using “VI-John” shaving cream, which sells at half the price of “Dettol

RURAL MARKETING:Tata Tea realized that it was not selling in more than 1,00,000 villages in UP Tata Tea created a unique channel of
distribution with NGOs acting as the 1st tier and followed by 2 tiers from villages thus providing a means for funding to NGOs and as
a source of steady income to youths who became distributors at level 2 and 3.

Samsung has launched the world’s first solar-powered phone, which also includes a “mobile prayer” feature that provides hymns
and wallpapers for different religions.

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