rural vs urban final project

8/7/2019 rural vs urban final project

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Rural Marketing vs. Global Marketing

Academic Year:-

2009 2011

Class:-

M.B.A.(sem-2)

College:-

Marwadi Education Foundation Group

of Institute, Rajkot.

GuidedBy:-

Ms. Rhuta Mehta

Prepare By:-

Manali Ramani


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DECLARATION

I, undersigned Miss MANALI M. RAMANI the student of

M.B.A hereby declare that presented in this report is my own

work and has been carried out under the supervision and

guidance of Prof. Rhuta Mehta of Marwadi Education

Foundation Group of Instituta, Rajkot.

This report has not been previously submitted to any

other university for examination.

Date:-Place: -Rajkot

Signature

-------------------------

(RAMANI MANALI M.)


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PREFACE

I am deeply grateful to all those who have with such god

grace given me their time and energy to supply valuable

opportunities, opinions and facts.

Very first, I would like to acknowledge deep debt of

gratitude that I owe to the all customers for their kind,

permissive and co-operative behavior.

Much of any merit this report may have is due to the

generosity of these demand above as well as others too

numerous to mention, who have put their knowledge and

practical experience.

I take this opportunity to sincerely thank Prof. Rhuta

Mehta for their continuous support.


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ACKNOWLEDGEMENT

It is pleasure at a time of presenting this report in front of

all concerned authorities. I would like to thank all those who

have helped me a lot to collect all the necessary information.

I am thankful to all loyal customers who gave me true

and necessary information while preparing the report, I really

thank them all.

At last thank to Ms. Rhuta Mehta to guide me very well.


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Objective of Study

Behind every activity there is an object. Objectives

are the first and the foremost steps in the planning process. If

you dont know why you are doing the activity, then you may

be doing improper activity. In the same way, if once target is

decided, and then the way could be easily found out.

Following are the main objectives of our study.

y To find out influence in buying decision process.y To find out effectiveness of advertising.y To find out factors affecting to the purchase of cars.y To study the marketing mix of the strategy.


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INTRODUCTION

Marketing management is a business discipline which isfocused on the practical application of marketing techniquesand the management of a firm's marketing resources andactivities. Rapidly emerging forces of globalization havecompelled firms to market beyond the borders of their homecountry making International marketing highly significant

and an integral part of a firm's marketing strategy. Marketingmanagers are often responsible for influencing the level,timing, and composition of customer demand accepteddefinition of the term. In part, this is because the role of amarketing manager can vary significantly based on abusiness' size, corporate culture, and industry context. Forexample, in a large consumer products company, themarketing manager may act as the overall general manager

of his or her assigned product To create an effective, cost-efficient Marketing management strategy, firms must possessa detailed, objective understanding of their own business andthe market in which they operate. In analyzing these issues,the discipline of marketing management often overlaps withthe related discipline of strategic planning.

Marketing research as the systematic design, collection,

analysis, and reporting of data and findings relevant to aspecific marketing situation facing the company.


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DATA COLLECTION

There are mainly two methods for the collection of the

data.

1. Primary Method :

In this method, researchers collect the data from

customers, target market and other path. so primary data are

freshly gathered data for a specific purpose or for a specific

research project.

Primary data can be collected in 5 ways:

i. Observational researchii. Experimental researchiii. Focus group researchiv. Survey researchv. Behavioral data


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2. Secondary Method:

According to this method, researchers collect the data

with the help of firms catalogue and annual reports, News

Paper, magazine etc. thus secondary data are data that were

collected for another purpose, and already exist somewhere.

Here, the researcher used secondary data.


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RESEARCH METHODOLOGY

Research in common parlance refers to a search for

knowledge. One can also define research as a scientific and

systematic search for pertinent information on a specific topic.

Research in academic activity and as such the term should be

used in a technical sense. Research is, thus, an original

contribution to the existing stock of knowledge making for its

advancement.

Whereas Research Methodology is a way to

systematically solve the research problem. It may be

understood as a science of studying how research is done. In it

we study the various steps that are generally adopted by a

researcher in studying his research problem along with the

logic behind them. It is necessary for the researcher to know

not only the research methods / techniques but also the

methodology.


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Thus, when we talk of research methodology we not only

talk of the research methods but also consider the logic behind

the methods. We use in the context of our research study.

There are so many topics for research of marketing. Here

the researcher analysis is on the bases of preliminary data.


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Rural marketing

Rural Markets are defined as those segments of overallmarket of any economy, which are distinct from the othertypes of markets like stock market, commodity markets orLabor economics. Rural Markets constitute an importantsegment of overall economy, for example, in the USA, out ofabout 3000 countries, around 2000 counties are rural, that is,non-urbanized, with population of 55 million. Typically, arural market will represent a community in a rural area with

a population of2,500 to 30,000.

In recent years, rural markets have acquired significance

in countries like China and India, as the overall growth of the

economy has resulted into substantial increase in the

purchasing power of the rural communities. On account of the

green revolution in India, the rural areas are consuming a

large quantity of industrial and urban manufactured

products. In this context, a special marketing strategy, namely,

rural marketing has taken shape. Sometimes, rural marketing

is confused with agricultural marketing the later denotesmarketing of produce of the rural areas to the urban

consumers or industrial consumers, whereas rural marketing

involves delivering manufactured or processed inputs or


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services to rural producers or consumers.

Also rural market is getting an importance because of

the saturation of the urban market. As due to the

competition in the urban market, the market is more or so

saturated as most of the capacity of the purchasers have been

targeted by the marketers. So the marketers are looking for

extending their product categories to an unexplored market

i.e. the rural market. This has also led to the CSR activities

being done by the corporate to help the poor people attain

some wealth to spend on their product categories.

Strategies:

1. Client and location specific promotion2. Joint or cooperative promotion..3. Bundling of inputs4. Management of demand5. Developmental marketing6. Unique selling proposition (USP)7. Extension services8. Business ethics9. Partnership for sustainability


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Rural products of India are unique, innovative and havegood utility and values. Large number of these rural products(like handicraft items, food products, embroidery, clothes &other products) sustains a significant segment of thepopulation in the rural areas. Several attributes of ruralproducts can be identified, for which, it has a demand in themarket. Out of the lots, ethnic origin and indigenous design& appearance are two traits of rural products, attracting apremium in the market. But, contrary to this, the non-uniformity of rural products (from one another) and lack of itsquality control measures has been creating a negative

demand. Besides, the small sized and dispersed productionunits of these rural products hinder realization of theeconomies of scale in marketing and result in high transactioncosts per unit of output. Niche-based products have no localmarket. Products in local use are also not marketedhorizontally; they often first travel down to market through along chain of intermediaries and then up to more difficultlocations in the rural areas. In the process, the people in rural

areas suffer from both low prices as producers and high pricesas consumers. In this conflict, rural products loss its equilibriumand the supply side becomes exponentially high. Because ofthis hazard, rural entrepreneurs face acute economic loss andrural markets become stagnant. Therefore, there is anemergent need for Building sustainable market linkages forrural products, so that, it can be connected to larger marketsand farmers can get a sustainable livelihood.


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Present position

Rural markets, as part of any economy, have untappedpotential. There are several difficulties confronting the effortto fully explore rural markets. The concept of rural markets inIndia, as also in several other countries, like China, is still inevolving shape, and the sector poses a variety of challenges,including understanding the dynamics of the rural marketsand strategies to supply and satisfy the rural consumers.


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Example of Mahindra & Mahindra for

rural marketing

Mahindra jeeps have reigned on Indian roads since 1949.

Mahindra jeep assembly started from that year while

collaboration with Willys jeeps came in 1954. Mahindra began

manufacture of light commercial vehicles in 1965 jointly with

Sperry Rand Corporation. In 1991, the Mahindra Commander

was introduced followed by Mahindra Armada in 1993. In

1995, Mahindra Ford India was established. In 2000, Mahindra

adopted a new logo and launched the Mahindra Bolero. 2001

saw the coming of the Mahindra Maxx, and 2002 witnessed

arrival of the Mahindra Scorpio. In 2005, Mahindra

established Mahindra Renault to build and market Sedans.

The Mahindra Bolero is Mahindra's leading presentationin the utility vehicle segment. It comes with a brand new styleand time tested performance. The Mahindra Bolero lives up toits reputation of being a tough vehicle. Mahindra (SUV) TheMahindra Bolero with its diesel variants targets the middleclass consumer with Mahindra SUVs at on-road prices rangingbetween rupees five and seven lakhs. Mahindra Bolerovariants include Mahindra Scorpio (SUV).


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Mahindra Bolero

The Scorpio is Mahindra's world class presentation andflagship adventurous SUV. Mahindra (SUV) The MahindraScorpio with its diesel variants targets the middle classconsumer with Mahindra SUVs at on-road prices rangingbetween rupees eight and ten lakhs.

Mahindra Scorpio


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Mahindra & Mahindra in rural area

While rural markets have experienced significant growth,their broadband penetration of 75 percent remains below thenational average of 89 percent. Lower broadbandpenetration in rural areas is compounded by lower Internetusage overall. A 2007 analysis by the U.S. Department ofAgriculture Economic Research Service, found 63 percent of allrural households had at least one member access the Internet,compared to 73 percent of urban households.

Mahindra First Choice, an arm of Mahindra andMahindra Group (M&M) which sells second hand car, todaysaid it would set up sales and service outlets in rural areasacross the country to sell one lakh vehicles by 2015.


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Mahindra & Mahindra with social

activity

Mumbai, October 4, 2005: Mahindra & MahindraFinancial Services Ltd (Mahindra Finance), India's leadingprivate rural finance company and a 97% subsidiary ofMahindra & Mahindra Ltd., and Hindustan PetroleumCorporation Limited (HPCL), India's second largest OilRefining and Marketing Company today announced the

signing of a tie-up to explore synergistic business opportunitiesbetween them. Through this tie up, Mahindra Finance will getaccess to HPCL's wide rural distribution network across Indiaand would be able to offer value-added financial productsand services to its rural and semi-urban customers.

Communication is the vital element of rural marketing. It

should serve to resolve social conflicts, encourage cooperationand strengthen competitive spirit during interactions betweenrural and urban as well as within rural areas. Another criticalpoint for communication is the point of conversion of ruralitefrom an "induced beneficiary" to an "autonomous buyer".


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Urban marketing

Global marketing as marketing on a worldwide scalereconciling or taking commercial advantage of globaloperational differences, similarities and opportunities in orderto meet global objectives.

If the exporting departments are becoming successful but

the costs of doing business from headquarters plus timedifferences, language barriers, and cultural ignorance arehindering the companys competitiveness in the foreignmarket, then offices could be built in the foreign countries.Sometimes companies buy firms in the foreign countries totake advantage of relationships, storefronts, factories, andpersonnel already in place. These offices still report toheadquarters in the home market but most of the marketing

mix decisions are made in the individual countries since thatstaff is the most knowledgeable about the target markets.Local product development is based on the needs of localcustomers. These marketers are considered polycentricbecause they acknowledge that each market/country hasdifferent needs.


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Elements of the global marketing mix

1. ProductA global company is one that can create a single

product and only have to tweak elements for different

markets. The product packaging in every country

incorporates the contour bottle design and the dynamic

ribbon in some way, shapes, or form.

2. PricePrice will always vary from market to market. Price is

affected by many variables: cost of product development(produced locally or imported), cost of ingredients, cost ofdelivery (transportation, tariffs, etc.), and much more.Additionally, the products position in relation to thecompetition influences the ultimate profit margin. Whetherthis product is considered the high-end, expensive choice, theeconomical, low-cost choice, or something in-between helpsdetermine the price point.


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3. PlacementHow the product is distributed is also a country-by-

country decision influenced by how the competition is beingoffered to the target market. Placement decisions must alsoconsider the products position in the market place.

4. PromotionAfter product research, development and creation,promotion (specifically advertising) is generally the largest line

item in a global companys marketing budget. At this stage ofa companys development, integrated marketing is the goal.The global corporation seeks to reduce costs, minimizeredundancies in personnel and work, maximize speed ofimplementation, and to speak with one voice.


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Example of Chevrolet in urban

Marketing

The 1929 Chevrolet International AC Coupe was the firstsix-cylinder engine introduced by the company since 1915. Thenew six made international headlines, while Chevrolet hailedit as "A Six for the Price of a Four."

The Chevrolet car or the Chevy is close to the heart ofIndian consumers. The Chevrolet entered India first in 1928.Chevrolet's manufacturer, General Motors, was the firstcompany to set up an automobile assembly plant in India.

The first Chevrolet car in India was the National Series ABTouring with wooden wheels. Chevrolet, however, had to closeshop in India in 1952-1953 following Indian national policy, andthe Indian Chevrolet went on a sabbatical.


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The Chevrolet made its comeback in 2003. Primarily GM

launched the European brand Opel in the late 90s in India.

When Opel failed to interest the Indian consumer, it was

taken off the market and Chevrolet came in. With Chevrolet's

entry, in 2003, sales shot up immediately. Prior to marketing

Chevrolet, GM had sold only 8000 odd units in 2002. With

Chevrolet's arrival, 21,269 units were quickly sold within the

same financial year. Chevrolet proved its worth as soon as it

reentered India and Chevrolet success continues to lead GM

till date.

GM

Popular Chevrolet SUVs range in price from Chevroletcars costing a bit above rupees six lakhs eighty thousand toChevrolet cars costing a bit below rupees ten lakhs thirty fivethousand.


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Chevrolet Tavera (SUV)

A product of General Motors, Tavera has carved a nichefor itself as multi-utility vehicle. Its 'Ergomax' seating withflexible options, endows matchless space and comfort to thepassengers. Chevrolet (SUV) The Chevrolet Tavera with itspetrol and diesel variants targets the middle class consumerwith Chevrolet cars ranging between rupees six and ten lakhs.The Chevrolet SRV with its petrol variants targets the middleclass consumer with Chevrolet cars ranging between rupeesseven lakhs and eight and a half lakhs.


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Contribution of rural area &

urban area in national income

According to my survey in national income rural area

contributes the 45% and urban area contributes 55%.so, here

we can say that rural area is also important in marketing field.

In rural area somehow it is difficult to collect informationand understand the peoples mentality but then also they are

part of India.

45%

55%

Contribution in National Incom

RuralArea UrbanArea


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Regarding survey

I make survey on the basis of preliminary data in which

two technic I use which are:

1. Observation research2. Behavioral dataFirst of all , I observe the customer that :

y How they talk with other person?y How much they are aware about new product?y How much they have knowledge regarding the

product?

y How is their attitude?y How much they are enthusiasm in listen proper

information?y Sometime when we ask them question they doesnt

give the answer

And when they get information from other then,

y How they react?y What is their question?y How they give answer?y They are agreeing with that right person or make

argument on their information?


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Review about research

Here, I make research in between Mahindra & Mahindra

and Chevrolet.

Both are car manufacturing company. Mahindra &

Mahindra make a rough &tough car which are useful in under

develop areas or rural area while Chevrolet make a delicate

and facilitate cars which are mostly used in urban and

developed area.

Chevrolets car is costly then the Mahindra & Mahindra.

Also some different like body of the car, average, some

facility, in spare parts, etc.


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Chevrolet focusing on urban area while Mahindra &

Mahindra focusing on both urban as well as rural.

Main difference in between is price :Chevrolets starting

price is around 5,00,000 while in Mahindra & Mahindra

make car at a low price which is affordable by lower class

people also. And they also provide extra benefit like

installments other extra benefits which are helpful to farmers.


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MY POINT OF VIEW

y In rural area nobody gives perfect answer becausethere is more illiterate people and very religion with old rules

& regulation.

y

While in urban areas people are educated and

understand the entire situation so they give proper

information.

y In urban area people are highly knowledgeable sono need to give more information or detailed data.

y So, in rural area I do my research in mouth to mouthasking question.


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BIBLOGRAPHY

y Marketing Management (13th edition)

y Surch Engineo Yahoo.como Google.como Wikipedia

y Web siteso www.mahindra.como www.chevrolet.como www.research.com


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CONCLUSION

I feel that I am very lucky to make this research report.

There are so many people behind this report who help me

and give enough guidance to make this report successful.

After having all the required information for preparing

my report. I have tried to analyze each and every function of

the Rural Marketing & Urban Marketing for both the

company Mahindra & Mahindra and Chevrolet.

I had unique experience of research about this topic.


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REMARKS

rural vs urban final project

Documents

Transcript of rural vs urban final project