logging in or signing up Rural Marketing aSGuest13986 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 8011 Category: Business & Fin.. License: All Rights Reserved Like it (13) Dislike it (1) Added: March 02, 2009 This Presentation is Public Favorites: 2 Presentation Description No description available. Comments Posting comment... By: sankalp0 (18 month(s) ago) hii.....this is sankalp.....i like this presentstion and want you to mail me........my email id is mbaprofession01@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rockylucky62 (23 month(s) ago) nice Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Rural Marketing : Rural Marketing By : Jivitesh Kumar Choudhary Gautam Singh Pramod Kanal Saurabh Gupta Rural Market Environment : Rural Market Environment The Rural Consumer The Rural Demand Other Aspests The Rural ConsumerA Detailed Profile : The Rural ConsumerA Detailed Profile Size of Rural Consumer Group * Rural population is about 73% of the total population of India * According to 2001 census the total rural population amounts to 74 Crore * 12 Crore households – 70% of the total Location Pattern A Scattered market the comparison below shows the same – * Urban Population is spread over 3,200 cities * Rural population is spread across 5,70,000 villages Socio-Economic Position : Socio-Economic Position Low purchasing power & Per Capita Income Bounded by tradition, culture, religion & community 60% of rural income is from Agriculture More than 50% rural households have monthly income < Rs 25,000 About 14% have income > Rs. 50,000 In recent years, 70% rural households have started saving/investing their income Socio-Economic Position : Socio-Economic Position Culturally a Diverse & Heterogeneous Market in terms of Religious, linguistic, social & cultural factors State to State variation in extent of development From a study conducted by IMRB (Indian Market Research Bureau) provides development index points for each state on Health & Education Transportation Electricity TV Transmission Banks Post Offices Water Supply Average villages have 33 index points Socio-Economic Position : Socio-Economic Position Literacy Level Rural India has a literacy rate of 28% compared to 55% of the whole country Lifestyle Conservative & tradition bound There has been a change in the same over the years though with Increase in Income Growth in Education Greater Media Penetration Marketers efforts to reach and capture the rural market’s Socio-Economic Position : Socio-Economic Position Buying Behavior Factors that Influence Literacy level Occupation Social & Cultural Factors Exposure to Media Marketer’s Efforts The buying behavior has undergone a major change. A huge population in rural areas has seen an increase in their income as a result of which they have the potential to buy expensive/luxury products The Rural Demand : The Rural Demand Some well established products Pressure Cooker Artificial Jewellery Cooking Utensils Medicines Batteries Tobacco Products Scooters, Motorcycles Soaps,Detergents Bicycles Electrical Goods (fan,light) Radio T.V Pesticides, Fertilizers Wrist Watches Tea Mobile Phones Sewing Machines Recent Trends : Recent Trends Steady Growth from the past 2 decades Welcome change in the composition of Rural Demand Several products already well established in the rural market In many products the rural market share is greater than the urban market In many products rural market has overtaken the urban in growth rate Rural Market becomes attractive to Corporates : Rural Market becomes attractive to Corporates The Rural Market is being seen as a Growing Oppurtunity mainly because of the following – Rural Demand is growing rapidly Purchasing power has increased Cut Throat competition in the Urban Markets Rural market is largely unexplored and untapped There would be opportunities for new entrants as compared to urban population being loyal to specific brands The volume and the strength of the rural population Companies already into Rural Market : Companies already into Rural Market Tapping the Rural Market : Tapping the Rural Market Segmentation & Targeting Product Management Physical Distribution Channel Management Sales Force Management Marketing Communications Segmentation & Targeting : Segmentation & Targeting Geographic Climate & Level of Irrigation Nearness to a feeder town/ industrial project Demographic Segmentation Population Concentration Age Literacy Level Income – Regular & Seasonal Buying Behavior Sources of data on rural consumers CMIE – Center for Monitoring Indian Economy Thompson Rural Index Product Strategy : Product Strategy Whether the product from Urban Market can be bought as it is in the rural market or it needs changes/customizations Economic Income realities should be considered Lower priced versions do succeed in most cases but not always Product Strategy : Product Strategy Specifically designed products Tractor Everyday’s Jeevan Sathi torch Model Variants – Bikes Beverages – Chota Coke Color Variants – Asian Paints Different products/models,brands,packing, pricing and positioning Package Design and pack size Logos, symbols and mnemonics Brand Decisions Sell value brands, not cheap products Preconceived notions have no place Physical Distribution : Physical Distribution Problems Transportation and warehousing Cost – Service dilemma becomes more acute, transportation & warehousing costs are high The delivery van – ITC and HUL have their own delivery van’s High cost can be taken care of, if the sales volumes are high which is most likely if the porduct is marketed properly Questions ???? : Questions ???? Channel management : Channel management Problems – Multiple tiers add to the cost Non Availability of dealers Poor viability of outlets Inadequate banking and credit facilities The village shop is the key to rural distribution Improving the viability of the outlets, deal in number of product lines. Thanks !!! : Thanks !!! You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Rural Marketing aSGuest13986 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 8011 Category: Business & Fin.. License: All Rights Reserved Like it (13) Dislike it (1) Added: March 02, 2009 This Presentation is Public Favorites: 2 Presentation Description No description available. Comments Posting comment... By: sankalp0 (18 month(s) ago) hii.....this is sankalp.....i like this presentstion and want you to mail me........my email id is mbaprofession01@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rockylucky62 (23 month(s) ago) nice Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Rural Marketing : Rural Marketing By : Jivitesh Kumar Choudhary Gautam Singh Pramod Kanal Saurabh Gupta Rural Market Environment : Rural Market Environment The Rural Consumer The Rural Demand Other Aspests The Rural ConsumerA Detailed Profile : The Rural ConsumerA Detailed Profile Size of Rural Consumer Group * Rural population is about 73% of the total population of India * According to 2001 census the total rural population amounts to 74 Crore * 12 Crore households – 70% of the total Location Pattern A Scattered market the comparison below shows the same – * Urban Population is spread over 3,200 cities * Rural population is spread across 5,70,000 villages Socio-Economic Position : Socio-Economic Position Low purchasing power & Per Capita Income Bounded by tradition, culture, religion & community 60% of rural income is from Agriculture More than 50% rural households have monthly income < Rs 25,000 About 14% have income > Rs. 50,000 In recent years, 70% rural households have started saving/investing their income Socio-Economic Position : Socio-Economic Position Culturally a Diverse & Heterogeneous Market in terms of Religious, linguistic, social & cultural factors State to State variation in extent of development From a study conducted by IMRB (Indian Market Research Bureau) provides development index points for each state on Health & Education Transportation Electricity TV Transmission Banks Post Offices Water Supply Average villages have 33 index points Socio-Economic Position : Socio-Economic Position Literacy Level Rural India has a literacy rate of 28% compared to 55% of the whole country Lifestyle Conservative & tradition bound There has been a change in the same over the years though with Increase in Income Growth in Education Greater Media Penetration Marketers efforts to reach and capture the rural market’s Socio-Economic Position : Socio-Economic Position Buying Behavior Factors that Influence Literacy level Occupation Social & Cultural Factors Exposure to Media Marketer’s Efforts The buying behavior has undergone a major change. A huge population in rural areas has seen an increase in their income as a result of which they have the potential to buy expensive/luxury products The Rural Demand : The Rural Demand Some well established products Pressure Cooker Artificial Jewellery Cooking Utensils Medicines Batteries Tobacco Products Scooters, Motorcycles Soaps,Detergents Bicycles Electrical Goods (fan,light) Radio T.V Pesticides, Fertilizers Wrist Watches Tea Mobile Phones Sewing Machines Recent Trends : Recent Trends Steady Growth from the past 2 decades Welcome change in the composition of Rural Demand Several products already well established in the rural market In many products the rural market share is greater than the urban market In many products rural market has overtaken the urban in growth rate Rural Market becomes attractive to Corporates : Rural Market becomes attractive to Corporates The Rural Market is being seen as a Growing Oppurtunity mainly because of the following – Rural Demand is growing rapidly Purchasing power has increased Cut Throat competition in the Urban Markets Rural market is largely unexplored and untapped There would be opportunities for new entrants as compared to urban population being loyal to specific brands The volume and the strength of the rural population Companies already into Rural Market : Companies already into Rural Market Tapping the Rural Market : Tapping the Rural Market Segmentation & Targeting Product Management Physical Distribution Channel Management Sales Force Management Marketing Communications Segmentation & Targeting : Segmentation & Targeting Geographic Climate & Level of Irrigation Nearness to a feeder town/ industrial project Demographic Segmentation Population Concentration Age Literacy Level Income – Regular & Seasonal Buying Behavior Sources of data on rural consumers CMIE – Center for Monitoring Indian Economy Thompson Rural Index Product Strategy : Product Strategy Whether the product from Urban Market can be bought as it is in the rural market or it needs changes/customizations Economic Income realities should be considered Lower priced versions do succeed in most cases but not always Product Strategy : Product Strategy Specifically designed products Tractor Everyday’s Jeevan Sathi torch Model Variants – Bikes Beverages – Chota Coke Color Variants – Asian Paints Different products/models,brands,packing, pricing and positioning Package Design and pack size Logos, symbols and mnemonics Brand Decisions Sell value brands, not cheap products Preconceived notions have no place Physical Distribution : Physical Distribution Problems Transportation and warehousing Cost – Service dilemma becomes more acute, transportation & warehousing costs are high The delivery van – ITC and HUL have their own delivery van’s High cost can be taken care of, if the sales volumes are high which is most likely if the porduct is marketed properly Questions ???? : Questions ???? Channel management : Channel management Problems – Multiple tiers add to the cost Non Availability of dealers Poor viability of outlets Inadequate banking and credit facilities The village shop is the key to rural distribution Improving the viability of the outlets, deal in number of product lines. Thanks !!! : Thanks !!!