GROUP MEMBERS

SAGAR JAGIASI SONAM LALWANI

9186 9194

AMIT SHARMA
NEHA UCHIL ROHIT UCHIL

9209
9215 9216

RURAL MARKETING DEFINITION

Function That Manages All Activities Involved In Assessing, Stimulating And Converting The Purchasing Power Of Rural Consumers Into Effective Demand For Specific Products And Services To Create Satisfaction & A Better Standard Of Living For Achieving Organizational Goals.

INDIAN RURAL MARKET

6,38,667 villages, 597 districts, 700 million people, myriad of languages, many traditions and a rich culture. A vibarant land with a long history. Rural Indian people are known as much for their warmth as their diversity. Its known as the land of mysticism. The Real Bharat. EXPLORE THE RURAL MARKETS, DONOT EXPLOIT THEM

CHANGING TREND IN RURAL POPULATION

year 1951 1961 1971 1981 1991 2001 Rural population Urban population 295.0 360.0 439.0 508.0 621.0 742.0 62.0 79.0 109.0 160.0 215.0 285.0 % of total population 82.6 82.0 80.1 76.0 74.3 72.2

CONSUMER BEHAVIOUR
FACTORS AFFECTING :

CULTURAL FACTORS TECHNOLOGICAL FACTORS ECONOMIC FACTORS POLITICAL FACTORS PERSONALITY AND PSYCHOLOGICAL FACTORS

CONSUMER BEHAVIOR

SOCIAL FACTORS FAMILY ROLES AND STATUS PRODUCTS AND STATUS SYMBOL SOCIALIBILITY SOME SOCIAL MOVEMENTS AANGANWADI SELF HELP GROUPS

CONSUMER BUYING PROCESS

Opinion leaders. Role of rural women Brand loyalty -the concept of stickiness.

MARKET RESEARCH
Measurement methods - faces for rating - wheel with different colours -ladder Questionnaire design Sampling(village and respondent) Locations for conducting research(retail shops,tea stall, playground, haats).

WHY COMPANIES GO RURAL?

Urban markets are getting saturated. A huge untapped market. Rising disposable income. Remittances from abroad. Impact of media.

INFRASTRUCTURE FACILITIES
Rural electrification Rural communication: road, rail, television, postal system, print media. Rural credit institutions Rural retail outlets

features Demand pattern spread

Rural market seasonal Widely spread

Urban market uniform concentrated

Literacy levels Sources of supply Physical communication facilities Product knowledge Awareness of needs Sources of information
Product concept Timeliness of supply After sales serivce Guidance on usage Per capita income Product as status symbol Consumer protection

low inadequate poor Not known Not known Word of mouth

Not known untimely inadequate needed low Mostly no Rarely available

high adequate Very good known known Any media

known timely adequate Not needed high Mostly yes Easily available

CLASSIFICATION OF RURAL MARKETS

Urban to Rural

Rural to Urban

Rural to Rural

MARKETING MIX
Product

Acceptability
Affordability Availability

Price Place Promotion

Awareness

RURAL PACKAGING
The product for rural should: Have a longer shelf life than the urban product. Be able to withstand extreme weather conditions. Be able to withstand sudden and jerky movements on dusty roads. Have alternate storage arrangements.

FACTORS CONSIDERED IN PACKAGING.

Packaging material(plastic) Pack size and convenience(sachets) Packaging aesthetics(bright colors)

RURAL PACKAGING

Sachet revolution: Velvet shampoo. Upper class product to a common mans product. Cavinkares chik shampoo.

BRAND BUILDING IN RURAL INDIA.

Brand name development. e.g.: Sampoorna television. Creating a brand identity e.g.: Tata shaktee Building a brand image e.g.: Bhumiputra and Sarpanch series of tractors.

FAKE BRANDS

Lookalikes e.g.- Lalita Amla for Dabur Amla Spellalikes e.g. Paracute for Parachute

Duplicates.

Original products Ponds Cadbury clairs

Imitation products Polons Chaudhary clairs

Rin
501 bar

Run
509 bar

Brooke bond
nirma Lifebuoy Colgate Fair and lovely

Benson brand
Nilima, narima Lifejoy, liteboy College Friend and lovely

ACTION AGAINST FAKES

Dabur - replaced its packaging which was difficult to replicate. -sales growth of 12 percent P&G -Vicks lookalike product equaled sales of genuine product. -conducted raids on premises of fake manufacturers.

RURAL FINANCE

Need for credit Unorganized: Moneylenders, Landlords, Traders Organized: Banks, Micro Finance.

CONSUMER PERCEPTIONS
Size: Sumo Shape: Cookers Color: Green Color Hair Oil Consistency: Cadbury Taste: spicy Food Habits Technology: Electronic Instruments

HAATS
Facts : It is a weekly market These markets offer better variety and lower prices. More than half the shoppers come with shopping lists. The average haat caters to customers in 15 20 villages.

TATA SHAKTEE HAAT HUNGAMA CAMPAIGN

The campaign was conducted in 1000 haats in 2003 and 2000 haats in 2004.. The sheet is mainly used by the poor, as is the profile of the customer visiting the haat. Communication is in the local language and is a two way process. The touch and feel experience is ensured. Fun and games better retention of brand benefits.

MELAS

It is held periodically( seasonally or annually). Around 25,000 melas are held annually. To commemorate important events or to honor a deity. The duration of a mela lasts from 1 to 45 days.

PUSHKAR MELA
Held in November. Total no. of visitors are 4 5 lakhs. Duration : 1 month. Stall bookings : 1 month before the event.

Activities : Rural sports ( tug of war, kabaddi, kho kho) Camel and horse races. Cultural activities( folk dances etc.)

MARKETING STRATEGIES
Product strategies : Small unit packaging Low priced packaging New product designs Sturdy products Utility oriented products Brand name

PROMOTION STRATEGIES
Mass media: television, cinema, radio,print media. Hoardings Shanties/ haats/ melas Non-price competition Special campaigns Other mass media Personal selling and opinion leaders

E-CHOUPAL
ITCs strategy to communicate directs with the farmers thereby removing the involvement of intermediaries. These centers are equipped with a computer connected to the internet. It is managed by trained farmers known as sanchalaks. It servers to an average of 600 farmers in 10 nearby villages within about a 5 km radius.

Hand-Crank/LED Lantern with Mobile Charger

OIM Ltd.
Our firm oim ltd started in the year 2000. Our main business involves importing products and selling them in India. We are a $20 million company. Our latest product on offer is SUVIDHA, which is basically aimed at the rural markets.

Objective
TO EXPLORE RURAL MARKET POTENTIAL AND GENERATE HIGHER REVENUES BY AGGRESIVELY LAUNCHING,PROMOTING AND SELLING A VALUE FOR MONEY PRODUCT.

PRODUCT
Brand Name : SUVIDHA Product Variety : 3 LED / 6LED & 6 LED with mobile chargers Size : Dimension: 18.5 cm x 8.3 cm Product Weight: 210g Features : LED / CRANK / 3 hr Battery Backup / Mobile charge Design : cylindrical Warranty : 1 yr

This new eco-friendly LED lantern can be charged either by using the good old handcrank technique . The lamp is also equipped with a mobile charger.

Features:
Six high brightness LED lights with life more than 10,000 hours 3 LEDs / 6 LEDs mode Useful double charging methods: crank dynamo Crank dynamo mobile phone charging for emergency use Dimension: 18.5 cm x 8.3 cm Product Weight: 210g

ANATOMY OF THE PRODUCT:

Core benefit- Emergency light Basic Product- The product is Portable, light in weight hence easy to handle and functions on Hand Crank Technology. Expected Product- Customers will expect a durable and long lasting product. LED lights used in this HAND CRANK LAMP are long lasting and durable. Augmented product- Exceeds customer expectations. This light has an extra feature for MOBILE CHARGING which again works on hand crank technology. Potential product- New ways to satisfy customers. There exists further potential for product development by introducing solar charging facility along with hand crank technology

SEGMENT & TARGET RURAL

Population Less than 200

Number of Villages 114267

Percentage of total villages 17.9

200-499
500-999 1000-1999 2000-4999 5000-9999

155123
159400 125758 69135 11618

24.3
25 19.7 10.8 1.8

Major targets northern part

SEGMENT & TARGET RURAL

Geographical Segmentation: States of Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Punjab, Haryana. Demographical Segmentation: Based on Population because the states chosen are have average to high rural population density.

POSITIONING Ghar Ghar Main Roshni ki Duvidha . Kharido SUVIDHA

1. 2. 3. 4. 5. Portable Handy Multi utility Replacement to tradition lantern Solution for electricity failure and load shedding

PRICE
PRODUCT 1 : 3 LED Rs 350

PRODUCT 2 : 6 LED Rs 450

PRODUCT 3 : 6 LED with Mobile charger Rs 700

MARKETING STRATEGIES
PRODUCT STRATEGIES
Product Differentiation Features : Hand Crank , Mobile Charger , Low Heat Performance Higher Performance compared to competitors Design Light in weight & Handy

PACKAGING
Packaging details: Brand name Tag line Product Specification MRP Manufacturers Name and Address Usage Instructions with Diagram ISO Certification mark and BEE label

Promotion Strategies
Media Mix
Radio Audio Visual Publicity Vans Hoardings Wall Advertisement
Push Strategy directing communications to channel members Pull Strategy directing communications to end user

Others Personal selling Demonstration Stalls Special Campaigns Opinion Leaders

AVAILABILITY
Use of cooperative societies. Public distribution system. Local kiranas Shandies/ haats/ melas Transportation medium : Road ways Ware house

DISTRIBUTION STRATEGIES
Manufacturer Distributors Retailers / OTHERS

Credit Period to Distributors: 90 days The company Focused on building a Strong Dealer Network. Attractive margins to be given to dealers Efforts at gaining Dealer loyalty to be undertaken