Rural Marketing

Presented By;NEETU.P.S

PGDBM ‘B’ SEC

What is Rural Marketing?

Rural marketing is the study of all the Activity , agency and policy involved in..

The procurement of farm inputs by the Farmers and the movement of rural products from farmers to consumers.

-G.N.

MURTHY

Defn.. According to, T P

Gopalaswamy, “Rural marketing is a two-way process which encompasses the discharge of business activities that direct the flow of goods from urban to rural areas (for manufactured goods) and vice versa (for agriculture produce), as also within the rural areas”

RURAL MARKET IN INDIAIn the India context, the word ‘RURAL’ is so much

associated with agriculture and farmers that rural marketing tends to be seen as a marketing of inputs or outputs related to agriculture.

The rural market in India has great potential, which is just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor as it used to be a decade or so back.

Rural Market Environment

The Rural Consumer

The Rural Demand

Other Aspects

NATURE OF RURAL MARKETING

Large, Diverse and Scattered Market

Major Income of Rural consumers is from Agriculture

Traditional OutlookRising literacy levels Diverse socioeconomic

backgroundInfrastructure Facilities

Importance of rural marketing Size of rural marketRural target populationEmployment Better living Contribution to national income Increase in farm income

Scope of Rural Marketing

Keenly debated topic

Definitions based on organisational/

institutional vision, mission & goals

Need for a comprehensive and modular

understanding

Rural Marketing is a “ work in progress”

Multi – disciplinary approach is necessary for

sharper understanding

Rural products

Rural products are the results of the art of agriculture and allied activities.

In a narrow sense,rural products refer to the products arising out of the cultivation, namely various crops, vegetables and fruits etc.

Types of rural goodsIndustrial goods consumer goodsIndustrial goods:-industrial rural

goods are those use for further industrial processing. e.g. tabacoo, fibre crops like cotton and jute.

Consumer goods:-goods are mean for direct use like all foodgrains, dairy product, poultry products vegetables and fruits.

• Some well established products– Pressure Cooker Artificial

Jewellery– Cooking Utensils ,

Medicines– Batteries

Tobacco Products– Scooters, Motorcycles

Soaps, Detergents– Bicycles Electrical Goods

(fan,light)– Radio T.V– Pesticides, Fertilizers Wrist

Watches– Tea ,Mobile Phones– Sewing Machines

The Rural Demand

Steady Growth from the past 2 decadesWelcome change in the composition of Rural Demand

◦ Several products already well established in the rural market◦ In many products the rural market share is greater than the

urban market◦ In many products rural market has overtaken the urban in

growth rate

Recent Trends

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.

The Rural Market is being seen as a Growing Opportunity mainly because of the following – ◦ Rural Demand is growing

rapidly◦ Purchasing power has

increased◦ Cut Throat competition in the

Urban Markets◦ Rural market is largely

unexplored and untapped◦ There would be opportunities

for new entrants as compared to urban population being loyal to specific brands

◦ The volume and the strength of the rural population

Rural Market becomes attractive to Corporate

Company Rural Sales (% of

total) HUL 50 Colgate 50 Godrej 30 Cavinkare 33 Marico 25 Cadbury 25 Cipla 18

Companies already into Rural Area

Current Scenario Of Rural India

& Govt. Initiatives

Rural Market

700 million potential consumers, over 40 per cent of the Indian

middle-class, and about half the country's disposable income

68% population of India is in Rural

India.

More than 10 Government schemes Running.

Main Target is to Increase Rural income by generating employment.

SGSY, MNREGA, SHG’s – Step towards Generating Employment.

Budget Allocation up from INR 10,000 Crs. to 58,000 Crs. for rural development.

As per BCG and CII reports Rural Customers will be 36% of House Holds by 2025.

This market will be open for retail sector.

Ten Fold growth In rural Market by 2025 to reach USD 100 Bn Mark. - HUL

Marketing In Rural India

Rural Marketing is Less Liquidity Demanding.

Village Meals, Nukkad Natikas, Mobile Vans, Wall Paintings Can do the trick.

These marketing attempts have been very effective.

Khaitan fans' ad on a horse cart

Typical shop in rural India stocked with sachets, etc

In 2000, ITC took an initiative to develop

direct contact with farmers who lived in far-flung villages in Madhya Pradesh. ITC's E-choupal was the result of this initiative

Satellite dish antennas reach rural India