...RURAL DEVELOPMENT MARKETING & DIRECT MARKETING MODULE NOTES Code | 50121621 A | Course | Rural and Development Marketing | Topic | Division | | | What are rural markets? Is there a uniform identity? Global trends impacting rural behavior (only India)- WTO, technology and social behavior | Nikita Naina Kumar | | | India's rural communities- disparities, segmentation and social factors | Trishla Jhaveri | | | Media penetration, impact and costs in rural India | Shayan Roy | | | Psychographics, demographics and societal impact on the rural consumer | | | | Profiling the rural male consumer | | | | Profiling the rural female consumer | | | | The rural business model- distribution, pricing, packaging, promotion- in rural markets | | | | Branding and brand management in rural India | | What is Rural Marketing? Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas. Rural markets have emerged as an important growth engine in the Indian consumption story. With about 70 per cent of the Indian population residing in the hinterlands, rural markets seem to be a significant opportunity for business conglomerates. Rural areas of the country or countryside are areas that are not urbanized...
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...Rural Marketing Post the economic slowdown, policymakers and companies are busy designing strategies to sell products and services to larger markets. While boosting profits quickly is no longer the essential parameter, Atmanand, MDI Dean of Executive Post Graduate Programs, believes that revisiting age-old management theories and sticking to basics is the most cost-effective marketing tactic. The rural focus “The strategy taken by Hindustan Unilever Ltd. (HUL) to enter the rural sector, which has remained insulated so far, is a good one,” says Atmanand. “In states like Maharashtra, Gujarat, Andhra Pradesh, Delhi and Haryana, the company is expanding steadily by expanding their network of dealers and making themselves household names.” Of course, replicating the HUL model may be difficult for a startup, but it does serve as a valuable lesson in marketing: Don’t put all your eggs in one basket. The entire gamut of white and brown goods has found a place in the rural market, driving several industries to actively explore it. “In the current scenario, companies should change their strategies for market-ing. For market sustainability, we have to look at the rural markets. This would include products that have been especially designed for these markets at prices that will suit the sector,” says Atmanand. Tailor-made products for rural India The company should provide rural folk with products and services that would meet their requirements. Take Cavin Care, for instance, which...
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...Steel are beefing up their presence in rural areas to tap the rising demand, largely driven by the construction sector. The growth has been significant in the past few years. A recent study by IMRB estimates per-capita steel consumption in rural India at about 9.8 kg, a five-fold growth in six years. The National Steel Policy-2005 had estimated per-capita rural consumption at two kg then. Steel consumption in rural India has traditionally trailed the urban sector due to issues such as affordability and availability of the commodity. The current per-capita consumption of finished steel stands at 55 kg and is projected to grow to 112 kg by 2019-20. “There is an increasing demand for steel from rural areas, mainly from construction, both household and community, and agri-implements,” said Mr Sushim Banerjee, Director General of the Calcutta-based Institute for Steel Development and Growth. The Government's rural social welfare initiatives, such as low-cost housing scheme and Pradhan Mantri Gram Sadak Yojana, are also seen aiding the demand, he said. “Rural market is undergoing a rapid transformation with its new found purchasing power. This potential could help us in raising per-capita steel consumption,” the SAIL Chairman, Mr C.S.Verma, said. SAIL is present in 630 districts with over 2,700 dealers, of which 728 are in rural areas. In the current fiscal, SAIL intends to appoint 1,500 dealers, of which about 1,000 will be in rural areas. About 27 per cent of SAIL's retail...
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...Steel in rural India: Big market waiting to be tapped INDIAN steel production grew 2.5 per cent in the first six months of this fiscal. Together with the surplus capacity, this makes for a mutually reinforcing cause-and-effect relationship, impacting the sector's performance. Though recently the demand for long products, traditionally used by the construction sector, has been on the rise, the prospect for flat products, linked to downstream industries, remains bleak. With the per capita consumption of steel in India almost static over the last few years at around 26 kg, one of the lowest in the world, demand growth is a matter of concern. The Ninth Plan working group predicted a domestic demand of around 31 million tonnes by 2000-2001. The actual aggregate demand, however, has not exceeded 26 million tonnes till now. Unfortunately, however, the production capacity of the steel industry has exceeded the 30-million-tonne mark. This mismatch has affected the country's steel scenario. Traditionally, steel demand has been linked to construction and infrastructure development. Over the last five years, two other segments — white goods and automobiles — have assumed importance. This segment-wise categorisation does not take into account the rural sector. And demand projections for general segments do not reflect the potential for increasing steel consumption in rural areas. The rural sector, especially in such prosperous States as Gujarat, Maharashtra, Rajasthan and western...
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...Rural Marketing Quite clearly, large Indian companies have begun looking at rural markets seriously. Some of them are even developing exclusive marketing strategies to tap this huge mass of consumers. Of India's one billion plus population, nearly 70 per cent live in non-urban or rural areas. According to a National Council for Applied Economic Research (NCAER) study, there are as many "middle income and above" households in rural areas as there are in urban areas. There are almost twice as many "lower middle income" households in rural areas as in urban. According to NCAER's projections, the number of middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2007. In Urban India, the same is expected to grow from 46 million to 59 million. Hence the absolute size of middle and high income households in Rural India is expected to be nearly double that of Urban India. Percentage Distribution of household population and income | |Households |Population |Income | |Rural |73.6 |74.6 |55.6 | |Urban |27.4 |25.4 |44.4 | |All India |100 |100 |100 | Thus we see that Rural India contributes almost 56% to the National Income as against 44% contributed by Urban India. Although it is contributed by 76% of the total...
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...rise. Rural India accounts for about 50 per cent of Indias GDP and nearly 70 per cent of the countrys population. Since 2000, per capita GDP has grown faster in rural areas than in its urban centres: 6.2 per cent CAGR versus 4.7 per cent. Rural incomes are growing and consumers are buying discretionary goods and lifestyle products, including mobile phones, television sets and two wheelers: between 2001 and 2009, spending in rural India was $69 billion, significantly higher than the $55 billion spent by the urban population. Companies that recognise this enormous opportunity are experimenting with various go-to-market models to garner their share of this growth. But the results have been mixed. To understand why and what to do about it Accenture conducted a major research study of more than 100 companies to discover how successful companies are responding to the opportunities and hurdles. An efficient sales and distribution model is the most critical factor to achieve profitable and sustainable growth in rural markets: nearly 60 percent of the survey respondents ranked it as the top imperative. Our research found that a hallmark of success in rural India is overcoming challenges in the three stages of the consumer lifecycle reaching, acquiring and retaining the rural customer. In terms of reaching the rural consumer, the biggest obstacles facing companies are inadequate distribution networks, partners with limited capabilities, long payment cycles, and weak marketing channels...
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...Rural LPG Marketing Presentation by Ashok Sen General Manager(LPG-Sales) Indianoil Corporation Limited India Agenda • Overview- LPG Marking in India • New Initiatives • Supply and Demand • Conclusion Various Products Marketed in LPG • Domestic LPG – Packed product in 14.2Kg, & 5kg cylinders, home delivered through distributors Non Domestic LPG – Packed product 19Kg and 47.5 kg delivered supply through distributors. Bulk – Delivered to Storage Tanks of Customers – Business Associates to garner Customers Auto LPG – Through Retail Outlets along with MS/Diesel and/or stand alone outlets Share of Products(%) • 407.6 6.4% 117.3 82.7 1.9% 1.3% • Segments 5719.8 90.4% • Dom. NDNE Bulk Auto Domestic LPG Business Overview • Total Customer Strength : 142 Million (IOC- 69.7 Million) • Average Enrolment last 3 Years : 10.4 Million (IOC- 4.9 Million) • Daily Bottling Source (Refineries/Import) 185 Bottling Plants (IOC 90) 11860 Distributors (IOC 6110) 142 Million Customers (IOC 69.7 Million) HPC 25% : 3.3 Million (IOC- 1.6 Million) HPC 26% Industry Share Customer Population IOC 49% BPC 25% Industry Share Distributors IOC 52% BPC 23% India- Unity in Diversity • • • • Current population 1.2 billion. 246.7 million Households >30 lakh cyl a day Environment movement on the rise. – Strict Guidelines by Government. – Shift to efficiency and concern for Environment • For better logistics by packaging near to market, bottling plants even at remotest corners– At Leh - highest...
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...Current Marketing Practices in Consumer Durables in Rural India Contents Introduction ........................................................................................................... 3 Indian Rural Market: ........................................................................................... 3 Recent shift in attention from urban to rural market:......................................... 3 Special Features of rural markets: ...................................................................... 4 Methodology ......................................................................................................... 6 Questionnaire ........................................................................................................ 7 Responses .............................................................................................................. 8 Respondent 1...................................................................................................... 8 Respondent 2...................................................................................................... 9 Respondent 3.................................................................................................... 11 Learnings from the Project................................................................................... 14 Awareness ........................................................................................................ 14 Acceptability .......................
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...Rural Agricultural Marketing - Strategies for Improving Marketing within Rural Areas Considering the environment in which the rural market operates and other related problems, it is possible to evolve effective strategies for rural marketing. The strategies discussed here though not universally applicable depend upon product characteristics, the targeted segment of the rural market, the choice of the rural area and its economic condition. Some of the typical characteristics which will help in rural market segmentation are land holding pattern, irrigation facilities, progressiveness of farmers, cropping pattern; mix of enterprise, education levels, proximity to cities/towns, sociological factors, occupation categories. The small and marginal farmers, agricultural labourers and artisans forms the largest segment in rural market (about 2/3rd) where as rich farmers constitute about one third of rural market. An appropriate segmentation of the highly heterogeneous rural market and identification of the needs and works of different segments will form the very basis for rural market strategies. For rural market, it will be ideal to think of strategies from the marketing mix point of view, main strategies are related to product, price, place and promotion which are described as follows. A. Product strategies Meaningful product strategies for rural market and rural consumers are discussed here. 1. Small unit and low priced packing Larger pack sizes are out of reach for...
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...INTRODUCTION “The family that makes the farm an old fashioned home with diversified crops, fruits and domestic animals sufficient to meet the household needs will still find agriculture one of the most satisfying forms of existence.” By Calvin Coolidge As Mahatma Gandhi said, "Real India lives in villages”. Nearly two-thirds of its population depends directly on agriculture for its livelihood. Agriculture is the backbone of the Indian economy earlier it had a major contribution in Indian economy, at the time of independence it was 33.3 percent which is increased to 56.5 percent in 2013. Current agriculture marketing system in the country is the outcome of several years’ planed work of Indian government and fourteen five year plans including few Prime Minister’s special plans for rural people. The efforts took place immediately after the independence of the nation. The foundation of markets is to provide market to agricultural produce and supporting them with minimum support price so that farmers get a healthy margin for their produce. This will encourage them to take agriculture as one of the mean for their livelihood. SUMMURY The central and state government equally responsible for the matters related with agriculture and agriculture market system. In the initial stages Five Year plans has focuses on the infrastructure development in the specific sector. In 1960’s the focus moved on the institutional building such as Central Warehousing Corporation, Food Corporation of India...
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...UNDERSTANDING RURAL DISTRIBUTION A study about the sales and distribution network in rural India SALES AND DISTRIBUTION 4th October, 2009 Group BH Aseem Rastogi – 32235 Stuti Sinha – 32296 Aditi Uppal – 32301 Pratik Kamble – 32303 Sakshi Arora – 32304 Saurabh Ghosh - 32305 Understanding Rural Distribution 2009 TABLE OF CONTENTS EXECUTIVE SUMMARY 3 4 5 8 INTRODUCTION INTERVIEWS CONDUCTED VISIT TO KIRANA STORES PRODUCT AVAILABILITY AT KIRANA STORES 9 13 14 ROLE OF MEDIA AND OPINION LEADERS CONCLUSION 2 Understanding Rural Distribution 2009 EXECUTIVE SUMMARY: The rural population in India is large and accounts for about 75% of the total population, which accounts for about 700 million people. Rural markets obviously also generate a great part of the country's income. Rural markets are growing more rapidly than urban markets. In fact for many products, the rural market accounts for almost as much as 70% of the national demand. Some of the important features or characteristics of Rural Marketing in India Economy are being listed below OPPORTUNITIES • • • • • • Employment in rural areas is getting better which has increased the disposable income for the average rural household. This leads to demand of products The demand burst in the rural market is also attributed to the fact that it has not been exploited and there is a lot of untapped potential in it These markets are large and also very diverse and therefore the opportunities...
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...A Research paper On Rural marketing: A New Way to Tap The Rural Consumers In Present Scenario Name of Authors:- *Mr. Rajesh Rathore Research Scholar , Maharaja College of Management, Udaipur, Rajasthan Corresponding Address:- Maharaja College of Management Maharaja Educational Campus, N.H.76, Airport Road, Debari, Udaipur (Rajasthan) – 313024 E-mail:- rajesh_rathore@rediffmail.com Mobile No:- 07597868902 Rural marketing: A New Way to Tap The Rural Consumers In Present Scenario Abstract *Mr. Rajesh Rathore Indian rural market consists of more than 740 million consumers and has wide potential for expansion. According to Census 2001, 73% of Indian population is living in rural areas. Though over the last three decades there has been a marginal reduction in the rural population expressed as a percentage of total population, there has been a steady growth in rural population in terms of absolute numbers and it has reached 74 crores. After the 1991 economic reforms there have been many changes in the socio, economic, political and cultural outlook of India. The rural India is providing a large consumer base to the marketers to market their products. This paper highlights the challenges of marketing communication for rural Indian consumers. Over the past few years rural India has witnessed an increase in the...
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...ACKNOWLEDGEMENT We take this opportunity to thank our project Professor respected Mrs.Shubhangi Ma’am for her valuable guidance. We thank you for giving us such an interesting topic for our project work, which will mould our future & career building process. We take this opportunity to specially convey our heartfelt gratitude & thanks to Ma’am, who guided us in the project with valuable inputs, without which our project would not have been effectively completed. A PROJECT REPORT ON RURAL MARKETING (SOLAR COOKER) USHA PRAVIN GANDHI COLLEGE OF MANAGEMENT Submitted By: Kanika Agarwal (02) Arva Boxwala (10) Sayli Deshpande (21) Tanmay Diwadkar (23) Sonam Ladha (45) T.Y.B.M.S. (SEM V) COMPANY PROFILE Company Profile : Anmol Electronics Pvt. Limited Major Industry : Electrical Sub Industry : Appliances & Consumer Products Country : INDIA Anmol electronics is a pioneer name as a manufacturer of electronic products when it comes to home entertainment. It is one of the largest consumer products company in the country having varied interests from technology based products to consumer care products. The group’s principal activity is to manufacture and market Consumer Electronics and home applianceswhich comprises of white goods and small domestic appliances. The white goods comprises of Washing Machines, Refrigerators, Air Conditioners etc. and Small Domestic Appliances comprises of...
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...TALENT ACQUISITION AND RETENTION CHALLENGES FOR RURAL MARKETING Submitted to Submitted by Proff Vijaya Lakshmi R Mohan Shantha Kumar Abstract Over the years there has been a phenomenal growth in the number of social enterprises in India. This is partly a consequence of a new policy of the government to gradually withdraw from social development activities. The gap thus created is being filled by social enterprises. A social enterprise can be a ‘for-profit’ or ‘not- for-profit’ venture engaged in income-generating activities with an agenda of bringing about a positive change in the society. While social enterprises are engaged in the development of people, it is rather paradoxical that they experience a variety of problems with respect to the management of human resources within their enterprises. It is common knowledge that social enterprises perennially struggle with various critical human resource issues such as getting employees at low rates of compensation, providing growth opportunities for employees within the organization, retaining talent especially in the middle management, providing clearly defined roles and tasks to employees, etc, leading to high attrition and increasing the cost of acquiring and training new employees. It becomes critical for social enterprises to think out-of-the-box and try a variety of innovative strategies to overcome these problems. This paper discusses a few such innovative HR strategies adopted by social enterprises...
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...2-Bedroom, Multistorey Apartment in Sinhgad Road For Sale Bedroom(s): 2 Bathroom(s): 2 Covered Area: 600 Total Price : 16.0 Lac(s) (Negotiable) (Price per sq.ft. : Rs. 2,667) Location of the Property: RAMCHANDRA VILLA,SINHGAD ROAD ,PUNE, RAMCHANDRA VILLA,SINHGAD ROAD ,PUNE, Sinhgad Road, Pune - West, Maharashtra VIEW ON MAP Click here to get updates about similar properties. PROPERTY DESCRIPTION: THIS PROPERTY IS SITUATED IN PRIME LOCATION RAMCHANDRA VILLA,SINHGAD ROAD ,PUNE. ALL NEEDFUL PLACES LIKE SCHOOL, COLLEGE,MARKET,HOSPITAL, PETROL PUMP ETC.... ARE WALKING DISTANCES FROM THE PROPERTY. .OWNER WANT'S SELL THIS PROPERTY AS EARLY AS POSSIBLE ONLY GENUINE BUYERS SHOULD CALL ADDITIONAL PROPERTY FEATURES: * Furnished: Furnished * Transaction Type: Resale * Type of Ownership: Co-operative Society * Floor Number: 2 * Total Floors: 5 * Construction Age: 5 to 10 years * Facing: East * Available Units: 1 ANNUAL DUES/TAXES: NO DUES TERMS & CONDITIONS 2% COMMISSION FOR SIDDHARTH ENTERPRISES. PLZ CALL IN BETWEEN 9.30AM TO 6.30 PM. SEND YOUR REQUIREMENT THROUGH SMS OR MAIL IF YOUR CALL IS NOT ANSWERED. AMENITIES: In- House Amenities: * Servant Quarters * Air Conditioned * Vaastu Compliant * Private Terrace/ Garden External Amenities: * Lift * Visitor Parking * Power Back Up * Security * Park PREMIUM Posted on: Mar 24, '11 2-Bedroom, Multistorey...
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