Rural Marketing

Rural marketing has been defined as the process of developing, pricing, promoting, distributing, rural specific goods & services leading to exchange between urban & Rural markets, which satisfies consumer demand & also achieves organizational objectives

The Rural Consumer

A Detailed Profile

Size of Rural Consumer Group Rural population is about 73% of the total population of India

According to 2001 census the total rural population amounts to 74 Crore 12 Crore households 70% of the total

Location Pattern A Scattered market the comparison below shows the same Urban Population is spread over 3,200 cities Rural population is spread across 5,70,000 villages

Features of Indian Rural Markets

Large and Scattered market Major income from agriculture Low standard of living Traditional Outlook Infrastructure Facilities

Socio-Economic Position
Low purchasing power & Per Capita Income Bounded by tradition, culture, religion & community 60% of rural income is from Agriculture More than 50% rural households have monthly income < Rs 25,000 About 14% have income > Rs. 50,000 In recent years, 70% rural households have started saving/investing their income

Transportation of products in rural areas

The transportation infrastructure is extremely poor in rural India

Any one can sell their products in the market

Products in the rural market

Some of the products like Mud vessels, Handicrafts available only in the rural market.

Selling and purchasing animals like cow, buffalo, goat done mainly in rural markets

Communication in rural area

Communication is the main problem in rural area. Rural India has a literacy rate of 28% compared to 55% of the whole country

SIGNIFICANCE OF RURAL MARKETS

1. Large Population 2. Higher Purchasing Capacity 3. Market Growth 4. Development of Infrastructure 5. Insulated from the global economic slowdown .

Improvement In Agricultural Products

If the market is good and there is more demand for the farm products then they will try to increase farm production by using modern methods. Modernization and mechanization of the farm sector boosted farm productivity, creates jobs and initiated a change in the quality of life in villages.

Future Of Rural Markets

Rural marketing-the future of Indian industry. Indian agricultural industry has been growing at a tremendous pace in the last few decades. The rural areas are consuming a large number of industrial and urban manufactured products.

Challenges In Rural Marketing

Low literacy rate Resistance to change Seasonal demand Lack of infrastructure facilities & proper warehousing facility Communication problems. Problems related to distribution and channel management.

MARKETING INNOVATIONS
FMCGs have come up with creams and soaps @ Rs 5, hair oil and shampoo sachets @ Re 1 and small Coke @ Rs 5. To develop a product to suit the rural scenario, Companies came up with special rural products, like Chic Shampoo sachets @ Re 1, Parle-G Tikki Packs @ Rs 2, customized TVs by LG, Shanti Amla oil by Marico. All these brought positive results for them.

Promotion Television Radio Print media Cinema Hoarding/ Wall Painting Rural van

Adopting Modern Technology

Satellite dish antennas reach rural India

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.

Comparison Between Rural And Urban Marketing

Durables CTV Refrigerator FMCGs Shampoo Toothpaste Urban 30.4 33.5 Urban 66.3 82.2 Rural 4.8 3.5 Rural 35.2 44.9 Total(% of Rural ) 12.1 12.0 Total (% of Rural ) 44.2 55.6

Team Memebers: Anson Martin Dcosta Wilfred DSouza

Melwyn Vargese Vibith