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Rural Marketing: Dr. Rajesh Verma

This document provides a summary of key topics covered in Session 5 of the MKT514 Rural Marketing course, including: 1. It recaps questions on Bartels' theory of market separations and the matching between the 4 A's and 4 P's marketing frameworks. 2. It outlines the learning outcomes of analyzing the Bottom of Pyramid concept and understanding paradoxes and dynamics of rural markets. 3. It provides details on the Bottom of Pyramid population, including their income levels, geographical distribution, and characteristics like unmet needs and informal livelihoods. 4. It discusses the potential of rural markets in India in terms of large population, market growth trends, and factors like mobile/IT

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Rajesh Verma
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40 views

Rural Marketing: Dr. Rajesh Verma

This document provides a summary of key topics covered in Session 5 of the MKT514 Rural Marketing course, including: 1. It recaps questions on Bartels' theory of market separations and the matching between the 4 A's and 4 P's marketing frameworks. 2. It outlines the learning outcomes of analyzing the Bottom of Pyramid concept and understanding paradoxes and dynamics of rural markets. 3. It provides details on the Bottom of Pyramid population, including their income levels, geographical distribution, and characteristics like unmet needs and informal livelihoods. 4. It discusses the potential of rural markets in India in terms of large population, market growth trends, and factors like mobile/IT

Uploaded by

Rajesh Verma
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MKT514

Rural Marketing
Dr. Rajesh Verma

#Session 5
Recapitulate
Find out the one which is not a market separation as per Bartels’ theory of market
separations :
A. Spatial

B. Temporal

C. Utilitarian

D. Informational

E. Financial
Recapitulate
Identify the right match between 4As and 4Ps:
A. Affordability - Price; Availability- Place; Acceptability - Product, Awareness – Promotion

B. Affordability - Product; Availability- Price; Acceptability - Place, Awareness – Promotion

C. Affordability - Price; Availability- Product; Acceptability - Place, Awareness – Promotion


Learning Outcomes
• Analyze the implications of BoP concept.
• Understand paradoxes and dynamics of rural markets.
Bottom of Pyramid (BOP)
Bottom of Pyramid (BOP)
• ‘Bottom of the Pyramid’ was first used by US President Franklin D Roosevelt in 1932.
• ‘The Fortune at the Bottom of the Pyramid’ - CK Prahalad (2004)
• Population - 4 billion people of the BoP
• Live on less than $2 a day.
• Data from 110 countries show that the BoP makes up 72 % of the population (two-
thirds of the world’s population), with an overwhelming majority in Africa, Asia,
Eastern Europe, Latin America and the Caribbean.
• Other Characteristics
• Significant unmet needs
• Dependence on informal livelihoods
• Impact of a poverty tax
Rural Potential
• Large Population
• 6 Lac villages with 890mn+ population
• 8-9mn migrated population serving as income generator from urban
• Market growth
• Maruti Suzuki India Limited (MSIL) - Of the total sales, 40% came from rural
areas as compared to 38.5% last year 
• September quarter, urban growth for Nestlé India stood at 6%, while rural
markets grew at 12%.
• Q2 of 2020-21, Jyothy Labs grew by 8.5% in volume terms. Rural about 1.3 to
1.4 times higher than urban.
• Mobile, Media and IT penetration
• 450mn mobile connections & 277mn mobile internet connections
Rural Potential
• Impact of globalization
• Increase in income and rural indebtedness
• Accessibility of markets
• Improved literacy and awareness
• Better employment opportunities
• Government policies
• Better financial facilities
• 410mn+ Jan Dhan Accounts
Government Initiatives
• https://rural.nic.in/scheme-websites

• https://www.india.gov.in/topics/rural
The Rural Market Paradox
Rural Market Characteristics
• Large and Scattered market: Though the rural market of India is very large in
terms of number of people and area, it is a scattered, difficult to service market.
• Seasonal income: Rural prosperity is tied with agricultural prosperity.
• Traditional outlook: Tradition and old customs are still alive and well in Indian
villages.
• Diverse socio-economic lifestyles: There are sharp and varied regional
preferences, habit patterns and behavioural characteristics.
• Lack of infrastructure: Rural areas in India suffer from lack of or very poor
infrastructure.  Facilities like roads, warehouses, communications, electricity and
financial institutions are woefully inadequate despite government claims.
• Large numbers of rural poor: Incomes are highly skewed, with certain
sections of society completely isolated.
• Media dark environments: Rural communities are media dark, in the sense that
they lack newspapers, TV and other types of media exposure.
Traditional outlook - Village Malana (HP)
The Vedanta Story – Rural Case
 Lanjigarh, Odisha, India.
 London-based billionaire Anil Agarwal’s Vedanta.
 Based out of London, has revenues in excess of $14 billion with operations in Namibia, Zambia, Ireland,
Liberia, South Africa and Australia, apart from India.
 Agarwal spotted an opportunity in mining bauxite in Niyamgiri and refining it in the vicinity, a move that
was expected to result in one of the most economical operations in the global aluminium industry.
 Odisha is known to have substantial deposits of bauxite — an estimated 2,000 million tonnes as against the
country's total deposit of 3,000 million
 In 2004, Vedanta entered into a MoU with the Odisha government for bauxite supplies; according to the
agreement, roughly half the assured offtake of the total 150 million tonnes was to come from Niyamgiri.
Two years later, a 1 million tonne per annum (tpa) alumina refinery plant went on stream in Lanjigarh,
roughly 15 km from the Niyamgiri Hills. Cost: Rs 5,000 crore. Another Rs 35,000 crore was invested in a 0.5
million tpa aluminum smelter and a 1,215 MW captive power plant at Jharsuguda in Orissa. Add to this an
investment of nearly Rs 10,000 crore in a 2,400 MW independent power plant that group company Sterlite
Energy has put up, which has linkages with the aluminum project.
 Resulting into a total Investment of Rs. 50000 Crore
The Battle Ground
After such a huge investment,
Vedanta was not able to start the
plant as planned. Why? What can be
the reasons?
Thank You

Any Questions?
LPU Live Q2E35 - MKT514

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