RURAL INDIA…a new dawnRURAL INDIA…a new dawn

India needs creative solutions to start a revolution which can India needs creative solutions to start a revolution which can take its villages fast forward in time – converting them into take its villages fast forward in time – converting them into

economically viable units and growth engines, harnessing the power economically viable units and growth engines, harnessing the power of the villagers, and opening up new horizons with the promise of a of the villagers, and opening up new horizons with the promise of a

better tomorrow.better tomorrow.

WHAT EXACTLY IS RURAL MARKETING ?

The Indian rural market with its vast size and demand base offers great opportunities to marketers. Two – thirds of countries consumers live in rural areas and almost half of the national income is generated here.

The rural markets offer a great scope for a concentrated marketing effort because of the recent increase in the rural incomes and the likelihood that such incomes will increase faster because of better production and higher prices for agricultural commodities.

The rural markets dominate Indian marketing scene and need special attention for the expansion of marketing activities and also for providing better life and welfare to the rural people.

SCOPE FOR RURAL MARKETING IN INDIA

HIGHER PURCHASING POWER

CHANGE IN RURAL MARKETS

MEDIA EXPOSURE

DECISION MAKING UNITS

GROWING URBANIZATION

INFRASTRUCTURAL FACILITIES

RISE OF ALERT BUYERS

FACTORS CONTRIBUTING TO CHANGE IN RURAL MARKET

FACTORS

Organized agencies for marketing

Warehousing facilities

Market information

Advertising or television network

Post liberalisation of economy

Transport system

Fair price

Composition of Product market

DISTRIBUTION STRATEGIES ADOPTED BY COMPANIES IN RURAL MARKET

Distribution Strategies

Stockist’s van

Selling through bullock carts

Working by stockist independently

Hired vehicles

Appointment of primary dealers

Using urban wholesalers

SOME IMPRESSIVE FACTS ABOUT THE RURAL MARKET

Of two million BSNL mobile connections, 50% in small towns/villages.

In 2001-02, LIC sold 55 % of its policies in rural India.

Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)

Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site

Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in urban

“The future lies with those companies who see the poor as their customers. To get rich, sell to the poor”

CASESTUDY

NAME OF RURAL AREA:- BAKHTAR VILLAGELOCATION:- AMRITSAR, PUNJAB

IN AMRITSAR WE VISITED GOVERNMENT SECONDARY SCHOOL LOCATED IN BAKHTAR VILLAGE,THEREFORE WE THOUGHT THAT AS A MANGEMENT COMPANY WHY NOT INTRODUCE A PEN AND FIND OUT VARIOUS STRATEGIES TO TAP THE PUNJAB MARKET. INTRODUCINA A PEN WOULD BE A GOOD IDEA SINCE A SCHOOL IS LOCATED THERE,THEREFORE,THERE WOULD BE MANY CHILDREN PURCHASING IT.

TAPPING THE RURAL MARKET

THE MOST IMPORTANT FACTORS TO BE CONSIDERED WHILE TAPPING RURAL MARKET:-

Product

A business needs to consider the products that it produces and the stage of the product life cycle that a product is at. Marketing strategies will vary according to the type of product and its stage in the life cycle.  1.Pencils are very convenient to use and will be easy for rural customers also to use this product. 2.By providing good quality of Pencils, students will be attracted towards writing and will also be encouraged. 3.Pencils are available in different colours, so a person has choices to select various types in one particular product. 4. Pencils are available in different prices, so people can buy it as per their affordability.

 This generally refers to the physical locations of product sales as well as the methods of distribution. However, it is also considered to be the "place" or "position" in the market of the product; refer to information below. Businesses need to make many decisions related to "place": access, parking, competition, physical location etc.  It’s the most important P in the pencil wars — Place. And nothing evokes more passion in distribution. Major innovation is underway on the distribution front at co. name, pre-selling being the biggest of all..

CONSIDERATIONS

LITERACY RATEPRODUCT DEMANDCHANCE FOR EXPANSION:

PLACE

PRICE

 We have decided to go with the application of penetration pricing as the people in the rural area are having low income, low purchasing power and we are newly entering the market. The pricing will be in way:  Small pencils: 1 pencil = RS.1./-10 pencils of pencils box = RS.8/- Large pencils: 1 pencils = RS.1.5/-10 pencils of pencils box= RS.12/-

 Promotion is said to be the vital for all companies until now the promotional tools have been acted as the targeting tool used to attract huge demand for rural people and also huge demand for company’s product. As we saw in the video that the only promotion strategy which people understand is through wall paintings,so 80% of our promotion would be through wall paintings,of we would use other means such as:-

STRATEGIES

T.V CINEMA RADIO

PROMOTION

Market segmentation is one of the steps that goes into defining and targeting specific markets. It is the process of dividing a market into a distinct group of buyers that require different products or marketing mixes. A key factor to success in today's market place is finding subtle differences to give a business the marketing edge. Businesses that target specialty markets will promote its products and services more effectively than a business aiming at the "average" customer. Opportunities in marketing increase when segmented groups of clients and customers with varying needs and wants are recognized. Markets can be segmented or targeted using a variety of factor. The bases for segmenting consumer markets include:-

Demographical bases (age, family size, life cycle, occupation)

Geographical bases (states, regions, countries)

Behavior bases (product knowledge, usage, attitudes, responses)

Psychographic bases (lifestyle, values, personality)

MARKET SEGMENTATION

The Silent sales man: What does a sales man do when you go to a shop or he comes to your house, he first s how’s you the product then starts to tell you the features of the product like its brand name, method of production, ingredients (if it is eatable), price etc. In short he tries to persuade you to buy his product, this same activity is performed by packets of any product but without any use of language this is called silent salesman shipPackaging is done for the three reasons: -To protect the productTo make the product easy to carryTo make the product attractive. Pencils do not require heavy packaging but still we have come up with the two packaging strategies for our pencils: -To have a packet of 3 pencils setsTo have a packet of 10 pencils sets.

 PACKAGING

Why Company tap the rural market?

The cost of going global is very high, and it is difficult to gauge markets in other countries. It is better to target the rural market as it is growing by the day. Today rural markets are as critical as urban markets.

Reasons for tapping rural market

Urban markets are getting saturated

A huge untapped market

Rising disposable incomes

Impact of media

CONCLUSION

THUS WE CAN CONCLUDE THAT IN THE MODERN WORLD THE WHOLE IDEA OF GOING GLOBAL IS SHIFTING TO GOING RURAL. MANY INDIAN COMPANIES AND OTHE FOREIGN COMPANIES HAVE REALISED THE POTENTIAL AND IMPORTANCE OF RURAL MARKET AND THEREFORE WE ARE ABLE TO SEE A NEW TREND OF CAPTURING RURAL MARKETS IN INDIA.