Post on 06-Apr-2018
8/2/2019 Rural Marketing Final Presentation 5
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Rural MarketingPresented By:
Rushikesh Bhoir(1003)
HemantLanjekar(1018)
Akshay Naik(1024)
Keya Parikh(1027)
Neha Patil(1030)
8/2/2019 Rural Marketing Final Presentation 5
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What is Rural Market
The census of India defines rural as anyhabitation with a population density of less
than 400 per sq. Km, where at least 75%of male working population is engaged inagriculture and where there exits nomunicipality or board.
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Rural Marketing
• Definition: (According to Thomson)
The study of rural marketing comprises
of all operations and agencies conductingthem, involved in the movement of farmproduct food, raw materials and theirderivatives such as textiles from the farms
to the final consumers and the effect of such operations on producers, middlemenand consumers
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Features of Rural Marketing
• Large and scattered market
• Large number of consumers
• Major income from agriculture
• Low standard of living
• Traditional outlook
• Changing demand pattern
• Infrastructure facilities
• Saving hobbits
• Media reach
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Difference Between Urban &
Rural Marketing
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Rural Marketing Urban Marketing
Low product exposure and low exposure
to branded products
High product exposure and high
exposure to branded products
Low ad exposure, low comprehensionsof ads low brand awareness
High ad exposure and high brandawareness
Individuals are better known andidentified Individuals are less known andidentified between members in thesocial and settlement system
Low infrastructural level (such as road,electricity etc.
High infrastructural level
Poor physical connectivity with other villages and towns and low mobility
Good physical connectivity and highmobility
Low density of population per kilometer of space
High density of population per squarekilometer of space
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Subject Rural Taste Urban Taste
Colors Linkage Bold and primary colors Shades of color, light, huesEntertainment Cinema, Noutanki, Melas Theme park, Internet, Travel
Cloths Synthetic, colorful Denim, Cotton, Designer
Color Relevance Red- Happiness,Green- Prosperity
Red- Danger Green- Safety
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Marketing Mix for RuralMarket
• Need to adopt marketing mix to suit ruralcondition
1. Product Mix :
The products for the rural markets willhave to be simpler, and easy to use,service, or maintain
Brand identity in rural markets is oftencreated through the visual logo of product,the color of product, or the taste of product.
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2. Price Mix :
consumer is price sensitive because of low per capita income.
3. Promotion Mix :Well known film stars as a common
men communicate message well.
Media like TV, radio, wall paintings, roof
painting
Personal selling
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4. Distribution Mix :
Manufacturer either can have a tie-uparrangement with co-operativeinstitutions or can deploy a mobiledistribution strategy throughdistributors
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Consumer Buying Behavior
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Urban Rural
High Involvement Low involvement High Involvement Lowinvolvement
High BrandDifferentiation
Complex BuyingBehavior
Variety SeekingBuying Behavior
(Economy WristWatch)
Complex BuyingBehavior
(Economy WristWatch)
VarietySeekingBuyingBehavior
Low BrandDifferentiation
Dissonance-Reducing BuyingBehavior
(Cereals and
pulses)(MedicalServices)
Habitual BuyingBehavior
(Pressurecooker)
(Footwear)(InsurancePolicy)
Dissonance-Reducing BuyingBehavior
(Pressure cooker)
(Footwear)(Insurance Policy)
HabitualBuyingBehavior
(Cereals and
pulses)(MedicalServices)
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Factors affecting Consumer BuyingBehavior in Rural Marketing
• Cultural Factors
• Traditions
• The influence of Caste
• Regional influence
• Geographic location
• Exposure to urban life styles
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Charecteristics of Rural consumer
• Age and stages of the lifecycle
• Occupation and income
• Econocomic circumstances
• Lifestyle
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Scope of Rural Marketing
• High purchasing power
• Change in rural markets
• Media exposure
• Decision making• Growing urbanization
• Infrastructural facilities
• Rise of alert buyers• Opinion leaders
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Companies Targeting RuralMarkets
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Shakti Project by HUL
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HUL
• HUL started the project named Shakti in2001 with the aim of increasing thecompanies' rural distribution reach as well
as providing rural women with incomegenerating opportunities
• First executives of HUL identified theuncovered villages. the representative of
the company meets the Panchayat andidentify the woman who they believe willbe suitable as Shakti Amma (SA).
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• After training SA is ask to invest Rs 20000which is used to buy products for selling
• The products are sold door to door orthrough petty shops at home which givesthem on an average of 10% margin
• Main advantage of Shakti Program wasthat shakti amma’s were able to reach farflung areas which were not possible for thecompany to tap on it’s own.
• The problem faced by HUL was that SA’swere more inclined to stay at home andsell rather than going from door to door
selling.
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• The company countered this problem byhosting Shakti Days where an artificial
market place was created with music andpromotion and the ladies were able to sellthere without countering the problem
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e-Choupal By ITC
• The e-Choupal was an initiative of ITC ltdto link directly with rural farmers viainternet for procurement of agricultural
products like wheat, soya bean.• With e-choupal the power of middleman is
nertralised as there is direct link betweenthe farmers and company.
• The farmers can directly negotiate the saleof their produced with ITC ltd.
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• Farmers have seen arise in the incomelevel because of fall in transaction costand improvement in quality output
• The system says procurement cost for ITCltd and the benefits obtained were the
elimination of intermediary activities, e-market place for spot transaction.
• There are presently 6500 e-choupaloperation. ITC ltd plans to scale up to20000 e-choupals by 2012 covering100,000 villages in 15 states, servicing 15million farmers.