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y NAME : PRAMOD CHAUDHARY (39)y

NAME : VINAY MODI (50)y CLASS - T.Y BBA (6TH SEM.)y DIV. - A y GUIDENCE BY BAXIS PATELy COLLEGE- NAVNIRMAN INSTITUTE OF

MANAGEMENT

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rural marketing is promotion of a company's productsin the rural market buy using strategies which differs

from that of urban market, the rural market is moreprice sensitive bt it has preference for quality .

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y 6 , 31,307 villages, 700 million people a myriad of languagesmany traditions and a rich culture. A vibrant land with along History. Rural Indian people are known as much fortheir warmth as their diversity. Welcome to the land of

mysticism. The real BHARAT.--CROP CULTIVATION

--INDUSTRY --ANIMAL HUSBANDRY --BUSINESS

--DAIRYING--SERVICES--FISHERIES--POULTRY --FORESTRY

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y Large and Scattered market:The rural market of India is large and scattered inthe sense that it consists of over 6 3 crore

consumers from 5,70,000 villages spreadthroughout the country.

y Major income from agriculture:N early 6 0 % of the rural income is fromagriculture. Hence rural prosperity is tied withagricultural prosperity.

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y Low standard of living :The consumer in the village area do have a low standard of living because of low literacy, low per capita income, socialbackwardness, low savings, etc.

y T raditional Outlook :The rural consumer values old customs and tradition.

They do not prefer changes .y D iverse socio-economic backwardness :Rural consumers have diverse socio-economicbackwardness. This is different in different parts of the

country.

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y I nfrastructure Facilities :

The Infrastructure Facilities like roads, warehouses,communication system, financial facilities areinadequate in rural areas. Hence physical distributionbecomes costly due to inadequate Infrastructure

facilities.The rural bazaar is booming beyond everyone sexpectation. This has been primarily attributed to a spurtin the purchasing capacity of farmers now enjoying an

increasing marketable surplus of farm produce.

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y Low Literacy There are not enough opportunities for education inrural areas. The literacy level is as low (3 6 %) when

compared to all- India average of 52%.y S easonal D emand

D emand for goods in rural markets depends uponagricultural situation, as agriculture is the main source

of income.

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y T ransportation

M any rural areas are not connected by rail transport. Kacharoads become unserviceable during the monsoon andinterior villages get isolated.

y D istribution

An effective distribution system requires village-levelshopkeeper, M andal/ Taluka- level wholesaler or preferreddealer, distributor or stockiest at district level and company-owned depot or consignment distribution at state level.

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y C ommunication ProblemsFacilities such as telephone, fax and telegram are rather poorin rural areas.We have to solve these such problems in thatrural area.

y

T raditional LifeL ife in rural areas is still governed by customs and traditionsand people do not easily adapt new practices. For example,even rich and educated class of farmers does not wear jeansor branded shoes.

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y Buying D ecisionsRural consumers are cautious in buying and decisions areslow and delayed. They like to give a trial and only after beingpersonally satisfied, do they buy the product.

y

M edia for PromotionsTelevision has made a great impact and large audience hasbeen exposed to this medium. Radio reaches largepopulation in rural areas at a relatively low cost.

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1. BY C O MMUNICATING AND PERC EP TI O N CHANGING QUALITY C ompanies are coming up with new technology and

they are properly communicating it to the customer.There is a trade- between Quality a customer perceivesand a company wants to communicate. Thus, thispositioning of technology is very crucial.

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2. BY PROPER C O MMUNICATI O N IN INDIAN L ANGUAG E

The companies have realized the importance of propercommunication in local language for promoting theirproducts. They have started selling the concept of quality with proper communication. Their main focus is to changethe Indian customer outlook about quality. With theirpromotion, rural customer started asking for value formoney.

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3. BY TARGE T CHANGING PERC EP TI O N

If one go to villages they will see that villagers usingToothpaste, even when they can use N eem or Babool sticks orGudakhu, villagers are using soaps like N ima rose, Breeze,C inthol etc. even when they can use locally manufactured very low priced soaps. Villagers are constantly lookingforward for new branded products. What can one infer fromthese incidents, is the paradigm changing and customer nolonger price sensitive?

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4.BY UND ERSTANDING CU LTU R AL AND S OCIALV ALU E S

y C ompanies have recognized that social and cultural valueshave a very strong hold on the people. C ultural values play major role in deciding what to buy.

y M oreover, rural people are emotional and sensitive. Thus, topromote their brands, they are exploiting social and cultural values.

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5. BY PROV IDING W HAT CUST O M ER W ANT

The customers want value for money. They do not see any value in frills associated with the products. They aim for thebasic functionality. However, if the seller provide frills free of cost they are happy with that. They are happy with such ahigh technology that can full their need. As " M otorola" haslaunched, seven models of C ellular Phones of hightechnology.

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6 . BY PRO M OTING PRO DUCTS W ITH INDIAN M ODELS AND ACT OR S C ompanies are picking up Indian models, actors foradvertisements as this helps them to show themselves as anIndian company.7. BY ASS OCIATING TH E MS ELVE S W ITH INDIAMNC s are associating themselves talking about India, by ex-

with India by plicitly saying that they are indian. M -TV during Independence D ay and Republic daytime make theirlogo with Indian tri-color. N okia has designed a new cellularphone 5110, with the India tri-colour and a ringing tone of

"Sare Jahan se achcha".

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8 . BY PRO M OTING INDIAN S POR TS T E AM C ompanies are promoting Indian sports teams so that they can associate themselves with India. With this, they inuenceIndian mindset.

9. BY TALK ING ABOUT A N OR MAL INDIAN C ompanies are now talking about normal India. It is anormal tendency of an Indian to try to associatehimself/herself with the product.

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10. BY DEVELOP ING RU R AL-S PE CI F IC PRO DUCTS M any companies are developing rural-specific products.Keeping into consideration the requirements, arm developsthese products.

11. BY GI V ING INDIAN WOR DS FOR BR ANDS C ompanies use Indian words for brands. L ike LG has usedIndia brand name "Sampoorna" for its newly launched TV.The word is a part of the Bengali,Hindi, M arathi and Tamil

tongue.

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1 2. BY AC QUI RING INDIAN BR ANDS As Indian brands are operating in India for a long time andthey enjoy a good reputation in India. MNC s have found thatit is much easier for them to operate in India if they acquirean Established Indian Brand. 1 3. BY EFFE CTI VE M E DIA C O MMUNICATI O N M edia Rural marketing is being used by companies. They can either go for the traditional media or the modern media.The traditional media include 9melas, puppetry, folk theatreetc. while the modern media includes TV, radio, e-chaupal.

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y

Indian rural market is undoubtedly complex but there aresome simple truths that we need to accept. The ruralconsumers are very value-conscious. They may or may nothave purchasing power, but they can make a difference tothe company's growth if concentrated. Gone were the days when a rural consumer had to go to a nearby town or city tobuy a branded product.