Challenges In Rural Markets

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Presented By: Sumit Kumar Chaubey CERT(MBA) R.N. 0907070048 Challenges In Rural Markets CO ORDINATOR:- Miss Anshu Sharma (Lect.) & Miss Rinkey Sharma( lect ) Dept. of business studies CERT Meerut

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Our country is endowed with a good degree of ethnic and regional diversity. The development of the nation largely depends upon the development of the rural population. " Introduction “India's way is not Europe's. India is not Calcutta and Bombay. India lives in her several hundreds of villages". Mahatma Gandhi

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To find out the problems faced by the companies in rural market The opportunities for the companies. Promotional techniques used by the companies OBJECTIVES OF THE STUDY

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India is an agro-based economy and the growth of most of the other sectors of economy is driven by rural demand . Urban market is reaching towards the saturation point, thus bringing in and urgent need to focus on rural development . Moreover, more than 70% of India's population lives in villages and constitutions a big market for industry because of increasing disposal incomes and awareness level. Rural Market Potential

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Rural market witnesses a high demand It's the rural segment of market that contributes more profit than its urban counterpart . Rural marketing broadly involves reaching customers, understanding their wants, supply of goods and services, and ultimately satisfying consumers, leading to more sales. Urban market is flooded with low demand .

Challenges in Rural Marketing :

Challenges in Rural Marketing Vast and scattered market Low Literacy Seasonal Demand Transportation Communication Problems Traditional Life Media for Promotions Cultural Factors

Conti……………:

Conti…………… Low standard of living Lack of desire for new styles Overall backwardness Lack of proper planning Inadequate bank and credit facilities Low standard of living Pricing of the product

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There are not enough opportunities for education in rural areas. The literacy level is as low (36%) when compared to all- India average of 52%. Sl no. Sex Literacy levels in percentage 1971 1981 1991 2001 R U R U R U R U 1. Males 34 61 46 66 58 81 71 87 2. Females 13 42 18 48 31 64 47 73 3. All 24 52 30 57 45 73 59 80 Present the literacy levels of rural and urban areas for males and females respectively Source :-Census of India reports Low literacy

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Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular. Seasonal Demand

Why Rural India?:

There are various reasons why every industry is taking a very serious look at rural markets: - About 285 million live in urban India whereas 742 million reside in rural areas, constituting 72% of India's population resides in its 6, 00,000 villages. More rural development initiatives by the government. Increasing agricultural productivity leading to growth of rural disposable income. Lowering of difference between taste of urban and rural customers. Good Monsoons in the last couple of years. Growing rural infrastructure - thanks to Government initiatives . Why Rural India?

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Role of promotion in rural area ” Promotion compasses all the tools in the marketing mix whose major role is persuasive communications Promotion According to Philip kotler

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Elements of promotion mix Advertising Personal selling publicity Sales promotion Target customer

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According to AMA , it is “any paid from of non-personal presentation of ideas ,goods or services by an identified sponsor ” Promotional techniques used by the two big telecom service provider idea and airtel Advertising Five Ms of advertising Mission Money Measurement Message Media

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Factor influencing promotion mix Market size and location Stages in the product life cycle Nature of the product Pricing strategy Characteristics of buyers

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Mobile Technologies to Address Rural Market Needs To enhance the knowledge regarding the product how it is use Increase the literacy level After sale service should be better The company should offer installment facilities. Government should provide loan to farmer. Credit facilities should be given by companies Small unit and low priced packing SUGGESTION

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BOOKS: Gopalaswamy T. P . “ Rural marketing environments problems and strategies” third Edition, Vikash Prakashan. K.S. Awadhesh & Pandey Satyaprakash, “ RuralMarketing ” New age international publishers. Website: www.ruralmarket.com www.ruralindiaadvertisement.com www.ruralimages.co.in References