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WELCOME ,[object Object],          To,[object Object],        ALL,[object Object]
Course Seminar on :                                           Rural Marketing:  Opportunities, Challenges & Strategies,[object Object],                                                                                               Presented by : Satish  N  Nande,[object Object],                                                                                               ID No :  ABM-08134,[object Object],                                              	                                              Master of Agribusiness  Management,[object Object],                                                                                               Department of Economic,[object Object]
Contents,[object Object],Rural marketing,[object Object],Evolution of rural marketing,[object Object],What makes rural marketing attractive,[object Object],Opportunities of Indian  rural marketing,[object Object],Myths about Rural Marketing,[object Object],Challenges and Strategies for Rural Marketing,[object Object],Case Study ,[object Object],ITC e- Choupal,[object Object],Conclusion,[object Object]
Rural Marketing,[object Object],On account of green revolution, the rural area are consuming a large quantity of industrial and urban manufactured products. Thus a special marketing strategy emerged known as Rural Marketing.,[object Object],Rural marketing involvedelivering manufactured or processed inputs or services to rural producers or consumers.,[object Object]
What Makes Rural Markets Attractive ?,[object Object],Untapped rural potential,[object Object],- 6,27,000 villages across the country,[object Object],- account for 70% of population,[object Object],- 60% of national demand for various product categories,[object Object]
41 million kisan  Credit Card have been issued,[object Object],Of the 20 million Rediffmail sign up, 60% are from small towns. 50% of transaction from these town .,[object Object],42 million rural household are avaling banking services in comparison to 27 million HHs in urban HHs.,[object Object],Investment in formal saving instruments is 6.6 million HHs and 6.7 million HHs in urban.,[object Object]
Opportunities....,[object Object]
1) 60 per cent of the Indian population lives in villages,[object Object],2) In the period between 2003-04 and 2008-09, the Indian Government increased Agriculture Budget allocation by a significant 300 per cent.,[object Object],3) The RashtriyaKrishiVikasYojana was launched in 2007-08 with an outlay of Rs.25 thousand crore,[object Object],4)  increase the flow of credit to agriculture gone up from Rs.87 thousand crore in 2003-04 to about Rs.2.5 lakhcrore in 2007-08,[object Object]
Improvement in infrastructure ,[object Object],- In 50 years , 40% villages have been connected by road, in next 10 year another 30% would be connected ,[object Object],-More than 90%villages are electrified ,through only rural homes have electric connection,[object Object],-Rural telephone density has gone up by 300% in the last 10 years,[object Object]
Improvement in social indicators  between 1981 to 2001,[object Object],-No. of “pucca” house doubled from 22% to 41%,[object Object],-No. of “Kuccha” house halved from 41% to 27%,[object Object],-Percentage of  BPL  families declined from 46% to 27%,[object Object],-Rural literacy level improved from 36% to 59% in past two decades,[object Object]
Low Penetration rate ,[object Object],Low penetration rates in rural areas , so there are many marketing opportunities,[object Object]
Myhs about rural market,[object Object],1) Rural market is a homogeneous,[object Object],2) Disposable income is low ,[object Object],3) Individuals decide about purchases,[object Object]
Myh 1: rural  market is a homogeneous mass,[object Object],REALITY,[object Object],Heterogeneous population ,[object Object],Various tiers depending on the income,[object Object],State wise variation in rural demographics,[object Object],Literacy % in ( Kerala 90%, Bihar 44%),[object Object],Population below poverty line (Orissa 48%, Punjab 6%),[object Object]
Myth 2: disposable income is low,[object Object],REALITY,[object Object],Number of middle class ( annuals income Rs 45000-2,15,000),[object Object],Rural  27.4 million,[object Object],Urban 29.5 million,[object Object],Per Capita annual income ,[object Object],Rural Rs 9481,[object Object],Urban Rs 19,407,[object Object],Total Rs 12,128,[object Object]
Myth 3: Individuals Decide About Purchases ,[object Object],Reality: ,[object Object],Decision making process is collective,[object Object],Purchase process - can all be different,[object Object]
       Challenges….,[object Object]
·  Understanding the Rural Consumer ,[object Object],·  Poor Infrastructure,[object Object],·  Physical Distribution ,[object Object],·  Channel Management ,[object Object],·  Promotion and Marketing Communication ,[object Object]
1) Availability   (Place),[object Object],2) Affordability  (Price),[object Object],3) Acceptability  (Product),[object Object],4) Awareness  (Awareness),[object Object],4  A’ s approach of Indian rural market,[object Object]
1) Availabiliy,[object Object],Challenges,[object Object],Regularly reach product to the far-flung villages.,[object Object],Indias 627,000 villages are spread over 3.2 millions sq Km ; 700 million indians may live rural areas,[object Object],Strategies,[object Object],Strive to reach at least 13,113 villages with a population market penetration,[object Object],Can reach the market bye the following ways:,[object Object]
At Chaupals   ,  Retail Outlet,[object Object]
Mandi ,						Travel,[object Object]
Conts…..,[object Object],Hindustan lever, to serve remote village ,use auto rickshaws ,bullock-carts and even boats in the backwaters of Kerala.,[object Object],Coca-Cola, has evolved a hub and spoken distribution Mosel to reach the village .to ensure full loads ,the company depot supplies ,twice a week, large distributors which who act as hub . These distributors appoint and supply ,once a week, smaller distributors in adjoining areas.,[object Object]
     AFFORDABILITY,[object Object],Challenges : ,[object Object],To provide at cheaper price,[object Object],Strategies :,[object Object],Introduce small unit packs.,[object Object]
acceptability,[object Object],Challenge: To gain acceptability for the product or service,[object Object],Strategies: ,[object Object],Offer product or services that suit the rural market ,[object Object],Easy to understand,[object Object],Coca-Cola company because of the lack of electricity and refrigerator in the rural area ,it provide low –cost ice boxes ,a tin box for new outlets and thermocol box for seasonal outlets.,[object Object]
Awareness,[object Object],Challenges : less exposure to the world , low literacy rate ,[object Object],Strategies:,[object Object],Opinion leaders play a key role in popularizing product and influence in rural market so choose the appropriate opinion.,[object Object],Can use the following promotional methods:,[object Object]
Personal interface,[object Object],One on One contact programs are extremely efficient manner to reach the rural consumer.,[object Object],Provide an opportunity to ,[object Object],Demonstrate ,[object Object],Induce Trial,[object Object],Educate,[object Object]
Event : Melas,[object Object],An opportunity to present brand stories using better display tools,[object Object],Large screens,[object Object],Animations,[object Object],Melas can be used for ,[object Object],Retail sale points,[object Object],Sampling exercise,[object Object],Demonstration,[object Object]
Haats : presence in the market,[object Object],42000 rural haats,[object Object],Average 4500 +visitors per haats,[object Object],Sales per day US $ 5000,[object Object],300 + sales outlet per haats,[object Object]
Strategies to be Followed,[object Object],1) Marketing Strategy,[object Object],2) Distribution Strategy,[object Object],3) Promotional Strategy,[object Object]
Marketing Strategy,[object Object],Marketers need to understand the psyche of the rural consumers .,[object Object],intensive personal selling efforts ,[object Object],Firms should refrain from designing goods for the urban markets and subsequently pushing them in the rural areas,[object Object],by utilizing the various rural folk media to reach them in their own language ,[object Object]
Distribution Strategy,[object Object],using company delivery van which can serve two purposes ,[object Object], Annual "melas,[object Object],fixing specific days in a week as Market Days (often called "Haats') ,[object Object],"Mandis" or Agri-markets,[object Object]
Promotional Strategy,[object Object],     the audio visuals must be planned to convey a right message to the rural folk. The rich, traditional media forms like folk dances, puppet shows, etc., with which the rural consumers are familiar and comfortable, can be used for high impact product campaigns.,[object Object]
Example…….. ,[object Object],·  ITC is setting up e-Choupals, which offers the farmers all the information, products and services they need to enhance farm productivity, improve farm-gate price realization and cut transaction costs. Farmers can access latest local and global information on weather, scientific farming practices as well as market prices at the village itself through this web portal - all in Hindi. It also facilitates supply of high quality farm inputs as well as purchase of commodities at their doorstep. ,[object Object]
Conclusion,[object Object],Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.,[object Object]
References,[object Object],1. Rural Marketing, Ravindranath V. Badi and Naranyansa V. Badi, Himalaya Publishing, 2004 ,[object Object],2. The Hindu - Business Line ,[object Object],3. www.deccanherald.com ,[object Object],4. www.indiantelevision.com,[object Object]
    THANK          		  YOU,[object Object]

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