rural rohan

8/7/2019 Rural Rohan

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Presented by:

Arun Gupta

Rohan Bhardwaj


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Rural marketing involves theprocess of developing, pricing,

promoting, distributing ruralspecific product and a serviceleading to exchange between ruraland urban market which satisfiesconsumer demand and alsoachieves organizational objectives


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Increase in purchasing power, because ofscientific agriculture

The changing life style and consumptionpattern of villagers with increase in education

Social mobility Improved means of transportations Saturated urban markets More and more new products demanding urban

customers Penetrations of mass media such as television

and its various satellite channels


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DEMOGRAPHIC CHARACTERISTICS 72 percent of population is spread across large

number of villages where many are sparsely

populated. IRREGULARITY IN POPULATIONDISTRIBUTION

62 percent of villages have population below1000 and most villages with population below500 DO NOT HAVE SHOPS!

These characteristics point toward complexitiesof distribution and logistics management


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RURAL ECONOMY Income level in rural areas have increased

over the years.

Households belonging to middle-class andabove constitute the bulk of Consumingclass.

Consumption pattern in rural economy is

also undergoing a shift. Eg: In 1983 , 66percent of capita income was spent onfood. In 2001, it declined to 59 percent.

Increase in demand for other products*can be held accountable for this shift.


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Social and Cultural factors Social hierarchy, customs, traditions and social

norms pay a significant role in determining

individual and collective behavior in rural India. Caste system Defines social status of an

individual.

Geographic demarcation of household HarijanBasti and Thakur-Gaon.

Aspects like these must be taken intoconsideration by an intelligent marketer whileintroducing / promoting / selling any product inrural markets.


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I am ATTRACTIVE

This is Because.


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Family Preference of clothes, food etc still decided by seniors in family.

Geographic influences ACs will be a flop in regions like Shimla, Manali etc

Economic factors

Budget Constraints Brand preference and loyalty

People in Rural areas prefer to buy from HAATS instead of anyshop.

Place of purchase 60% prefer HAATS due to better quality, variety & price

Environment The Mukhiyas opinion, in most cases, is shared with the

rest of the village.


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Availability Hindustan Lever - Has built a strong distribution system which helps its brands

reach the interiors of the rural market To service remote village, stockiest use auto rickshaws, bullock-carts and even

boats in the backwaters of Kerala.

Acceptability

Because of the lack of electricity and refrigerators in the rural areas, Coca-Colaprovides low-cost ice boxes a tin box for new outlets and thermocol box forseasonal outlets.

Awareness Coca-Cola uses a combination of TV, cinema and radio. It doubled its spend on

advertising on Doordarshan, which alone reached 41 percent of ruralhouseholds. It has also used banners, posters and tapped all the local forms ofentertainment. Coca-Cola advertising stressed its `magical' price point of Rs 5per bottle in all media.

LG Electronics uses vans and road shows to reach rural customers. Thecompany uses local language advertising.

Affordability Coca Cola introduced Returnable 200-ml glass bottle priced at Rs 5. Now Eighty

per cent of new drinkers now come from the rural markets.


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Product

Price

Promotion Place


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Small unit packing: Used by brands like Lifeboy, Kurkure, Tiger Biscuits,Velvet Shampoo

Sturdy products:Sturdiness of a product either or appearance is animportant for the rural consumers. Eg: Villagers dont prefer slim mobiles ormobile with touch screens. For them, they are not durable.

Simple and easy to use: Philips free power radio which needs one

minute winding of string to provide 30 minutes of radio listening. New product designs: Eg: Nokia Introduced 1100 model. Its design was

modified to protect it against rough usage in rural environment; it is dustresistant & has a small torch light in view of the frequent power cuts in ruralIndia

Utility oriented products: Products like mixi, grinder can find good no ofsales in rural India as women of rural India is accustomed to make Masalas etc.

Brand Identity systems: Colors used, brand name, brand symbol and

even language used to promote brand plays a vital role. Eg: Peeli Tikki


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Low cost/ cheap products: The price can bekept low by low unit packagings like paisa pack of tea,shampoo sachets, vicks 5 grams tin, etc.

Ensuring price compliance: Rural retailers,most of the times, charges more than the MRP. Themanufacture has to ensure price compliance either throughpromotional campaigns, as was done by Coca Cola, or byensuring the availability of products at the retail outletsdirectly.

Low volume-low price strategy: Thisstrategy of reducing prices by reducing the package size in

order to make it appear more affordable, is delivering verygood results for a large number of FMCG product categories,in the rural markets of India

Preference of consumers for low unit price points should notbe interpreted as their preference for cheap products.Instead they prefer affordable products that gives value formoney.


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Simplicity : All promotional messages targetedat rural audience need to be simple & clear,which can be easily understood, & they shouldnot include any confusing elements.

The promotional message can be delivered inthe form of an entertaining story with a messagedepicting how the brand delivers larger goodto the family & society.

Choice of Brand Ambassador: Amitabhbacchan in the chayavanprash advertisement,boosted the sales in the rural markets.


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Over 5,000 fairs are held in thecountry. Estimated attendance is about100 million rural consumers.

Biggest fair Pushkar Mela is estimatedto attract over 10 million people.

Beneficial for companies to organizesales of their product at such places.

Promotion can be taken, as there will

be ready captive audience


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Low literacy levels Ineffective distribution channels:

Large number of intermediaries, which increases thecost and creates administrative problems.

Many languages and diversity inculture: Factors like cultural congruence, differentbehaviour and language of the respective areas make itdifficult to handle the customers.

Spurious brands: A lot of spurious brands orlook-alikes are available, providing a low cost option tothe rural customer.

Seasonal demand: Demand may be seasonaldue to dependency on agricultural income.


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rural rohan

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