1. A Presentation on:-1

2. Definition:Rural Marketing can be defined as a function thatmanages all activities involved inassessing, stimulating, and converting thepurchasing power of rural consumers into aneffective demand for specific products and servicesand moving these products and services to thepeople in rural areas to create satisfaction and abetter standard of living and thereby achievingorganizational goals.2 3. Development of Rural Marketing:Part I (Before 1960): Rural marketing referred to selling of ruralproducts in rural and urban areas and agricultural inputs in ruralmarkets. It was treated as synonymous to agricultural marketing.Part II (1960 to 1990): In this era, green revolution resulted fromscientific farming and transferred many of the poor villages intoprosperous business centers. Two separate areas of activities hademerged- during this period marketing of agricultural inputs andthe conventional Agricultural Marketing.Part III (After Mid 1990s): The products which were not givenattention so far during the two earlier phases were that of marketingof household consumables and durables to the rural markets .3 4. PhaseOriginFunctionMajorSource Destination ProductsMarket MarketISinceAgricultural Agricultural RuralUrban independence marketingproduceII Mid-SixtiesMarketingAgricultural UrbanRuralof inputsagriculturalinputsIIIMid-Nineties RuralConsumablesUrban/ Rural Ruralmarketingand durables for consumption and productionIV 21st Century4 5. Scope For Rural Marketing In India:Change in rural marketsMedia exposureDecision making unitsGrowing urbanizationInfrastructural facilities5 6. Rural Marketing: Success StoriesOver the past few years schemes like ITCs echaupal, HLLs projectShakti, shampoo sachets launched by Chick, BSNLs ruralschemes have made a mark in rural India. Many retail hubs like KisanSansar (Tata), Haryali Kisan Bazar (DMC), Reliance Fresh, Naya YugBaazar, etc has been able to make a dent in the village economy.6 7. ContThe most successful story is that of HUL, the Indiansubsidy of Uniliver. The trigger point for HUL camewhen a local firm Nirma, through its new productformulation, pricing and distribution challengedHULs detergent business.According to figures released by market researcher ACNielsen, demand for personal care products grew faster in rural areasthan urban areas during the period April-September 2009.Several FMCG companies such as Godrej ConsumerProducts, Dabur, Marico have increased their marketing efforts in ruralIndia and small towns in order to establish a local distribution networksand increase visibility.7 8. Value Added Rural Marketing: HOW TO ADD VALUE THROUGH RURAL MARKETING Identify Study Study Segment Provide Build specialCommunic uniquedemographic productruralfunctionalbrands forate uniquecharacteristic patterns ownershipcustomersbenefitsruralpropositions of rural patternscustomerscustomerAre theEnsure clusters Areincrease in large relevant customer enough?needs valuebeing met?NoNoNo Yes YesNo No Yes8 9. Occupation Pattern:Distribution of Households by Occupation of theHead, 1999-2000 Heads OccupationDistribution of households (%)UrbanRuralAllHousewife0.84 1.010.96Cultivator 3.45 40.86 29.99Wage earner20.9335.28 31.12Salary earner40.7211.28 19.84Professional 3.59 0.731.56Artisan6.90 3.414.42Petty Shopkeeper 16.054.978.19Businessman3.68 0.461.40Other3.85 1.982.52Total100.00 100.00100.009 Source: NCAER 2002 10. 10 11. Green revolution : Adoption of new agronomic practices, selective mechanization, multiple cropping, inclusion of cash crops and development of allied activities like dairy, fisheries and other commercial activities have helped in increasing disposable income of rural consumers. There is a shift from rain dependence to irrigation. Farmers are getting high return for their cash and food crops. In the whole process, the dependence on seasonality has reduced. By observing this scenario, Indias one of the biggest giant Hindustan Lever Ltd. has entered into rural market for more penetration through the operation Bharat. Since December 1999, HLL has reached out to 35,000 villages, 22 million households and spent Rs. 20 crore.11 12. Emerging Role of Bio-Tech. in Indian AgricultureSector : Bio-technology has vital role to play in so far as enhancement of agriculture yield is concerned. For instance the yield of wheat in USA per hectare is almost three times more than that of India and the yield of sugar cane is two and half times more if compared with the Indian yield of sugar cane per hectare. We have to make use of the applications of the bio-technology in an agriculture sector both in terms of generating quality seeds and cropping the same in compliance with the theories of biotechnology. It will provide more discretionary income in the hands of the rural farmers.12 13. Rural communication : Road networking besides enhancing the mobility of rural consumers has increased their exposure to products and services. Two giants namely LG and Samsung have already made their strategies for entering into rural India. As per survey conducted by Indian Market Research Bureau (IMRB) 77 percent of the villages are covered by TV network. Seeing these types of opportunities and interests of the ruralites, Tata cellular has already entered into rural India by making its first entry into Andhra Pradesh. Tata cellular has created Indias largest cellular corridor to provide connectivity to non-metro and rural centres.13 14. Development programmes: The five-year plans have witnessed massiveinvestments in rural areas in terms of number of development programmes implemented by the central and state Government. These programmes have generated incomes to ruralites and helped them to change their life-styles. Some of these programmes are: Intensive Agricultural Area Programme (IAAP) High Yielding Varieties Programme (HYVP- Green Revolution) Drought Prone Areas Programme (DPAP) Small Farmers Development Agency (SFDA) Operation Flood I, II and III (White Revolution) Fisheries Development (Blue Revolution) Integrated Rural Development Programme (IRDP)14 Jawahar Rojgar Yojna (JRY). 15. Problems in rural marketing: Warehousing Village structure in India Rural markets and sales management Inadequate banking and credit facilities Market segmentation in rural markets Branding Packaging15 16. Conclusion: The rural market of India is fascinating and challenging at the same time. It offers large scope on account of its sheer size and it is growing steadily. It is an attractive market from this angle also that the urban market is highly competitive, the rural market is relatively quiet. In fact, for certain products, it is a totally virgin market. Economic reforms in India have brought about major changes in the whole market environment. Successful rural marketing calls for a review of the rural marketing environment, developing proper understanding of the nature and profile of rural consumers, designing the right products to appeal to them, and adopting suitable media as well as appropriate strategies for communication and distribution. It is generally believed that markets are created, not found. This is especially true in case of the rural market of India. It is a market for16 the 17. 17