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Rural Marketing

³It is often said that

markets are made not

found.´



Rural Marketing

Rural Marketing in Indian Economy covers

three broad sections, namely: Urban to Rural: Selling of manufactured

products in the rural regions.

Rural to Urban: Selling of agricultural items in

the urban areas.

Rural to Rural: Selling of agriculture produce.



Phases of Rural Marketing



Initiatives by Companies

HLL¶s- ³Project Shakti´

³Gaon Chalo´ by Tata Tea.

³Reuters Market Light´- Data Service for

Farmers.

Nokia low cost handsets with micro financeorganization.

Lifebuoy ± ³Swasthya Chetna´



Facts about Indian rural market

Rural India constitutes 70% of India¶s total

population. It accounts for 56% of national income &

64% of total expenditure.

The rural economy in estimated to reach a

size of Rs. 16 tn by 2010-13

Share of rural India in FMCG market is 60%



Rural Income Trends

Annual Income ( at

1998-99 prices)

Income Class 1989-90( %

Households)

1998-99 ( %

Households)

<= 35,000 Low 67.3 47.9

35,001- 70,000 Low Middle 23.9 34.8

70,001 ± 1,05,000 Middle 7.1 10.4

1,05,001- 1,40,000 Upper Middle 1.2 3.9

> 1,40,000 High 0.5 3.0

Source: National Council for Applied Economic Research, 2000



Rural India ± Population Trends

1971 1981 1991 2001

Total Population(in million)

548.2 683.3 848.3 1026.9

Rural Population(in million)

524.0 628.8 741.6

As a proportionof totalpopulation

76.7 74.3 72.2

DecadalVariation

19.8 16.7 15.2

Source: Census 2001



Features/Characteristics

Employment opportunities for the rural youth.

Improved condition of the rural masses. Gradually increasing purchasing power.

Agriculture is major source of income.

Vast and scattered market .



What makes rural marketing attractive

Market saturation in urban areas.

Penetration level of products is high in urbanareas & low in rural areas thus providing

untapped potential.

First time use of product /services by rural

consumers.



Problems Faced by Marketer

Market Segmentation

Physical distribution Channel management

Sales force management

Marketing communication



Market Segmentation



Channel Management

Multiple tiers add to cost.

Non availability of dealers. Poor viability of outlets.

Inadequate credit & banking facilities.



Sales force Management

Willingness to be located in rural areas.

Cultural Congruence. Attitude factors.

Knowledge of local language.

Ability to handle several product lines. Creativity.



Marketing Communication

Major challenge to corporate market.

Adopt AICD A model. Low literacy rate.

Linguistic difficulty.



Rural Marketing

Presentation By: Guided By:

Manish Bansal Miss Ruchi Sharma

Manoj S Naruka

Jaswant SinghJitender Solanki

Jasmeet S Khurana

rural marketingokmir

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