3. What are Rural Areas?
In general, a Rural area is a geographic area that is located
outside towns and cities.
As per Census: Any habitation with a population density of
less than 400 per Sq. Km, is known as Rural.
4. Rural Marketing
Rural marketing is a process of developing, pricing, promoting,
and distributing rural specific goods and services leading to
desired exchange with rural customers to satisfy their needs
and wants, and also to achieve organizational objectives.
5. Nature Of Rural Market
Traditional Outlook
Rising literacy level.
Diverse socio-economic background
Infrastructural facilities
6. Attractiveness of rural market
Rural markets have become the new targets to corporate
enterprises for two reasons :
1. Urban market has become congested with too many
competitors.
2. The market have reached a near saturation point.
7. Benefits of rural marketing
Size of rural market
Employment
Better living
Contribution to national income
Increase in farm income
8. Problem and difficulties faced in
rural marketing
Lack of proper communication.
Distribution problem.
Low literacy level.
Lack of adequate transport facilities.
Lack of proper retail outlets
9. Various factors which have made rural markets
viable
1.Large population
2. Remoteness is no longer a problem
3. Growth in consumption
4. Life-style changes
5. Market growth rates higher than urban
6. Rural marketing is not expensive
12. Affordability
Challenge is to ensure affordability of the product or service.
Rural people have low disposable income.
Products need to be affordable to consumer who are daily
wagers.
E.g. Coca-Cola introduced 200 ml bottle at Rs.5
14. Greatest problem is to reach to customer or retailer.
Challenge to reach far flung villages.
Products reaches the customers late.
Reaching the market should be considered.
Availability
15. Awareness
The main way of reaching the customer is through the
commercial on media like television ,radio and outdoor.
Lack of media source in rural areas
Coca-Cola uses a combination of T.V., cinema and radio to
reach 53.6 percent of rural households.
It doubled its spend on advertising on Doordarshan, which
alone reached 41% of rural Households
17. Acceptability
The customer should feel that the product is designed as
per their needs.
The customer should feel the product familiar and there
should not be any hesitation to go for it.
E.g. :- LG Electronics. In 1998, it developed a customized
TV for the rural market and named it Sampoorna, which
was a great success due to sale of 1,00,000 sets in the
very first year.
19. Difference Between Rural And Urban
Marketing
Basis Of Difference Urban Rural
Product Large packaging, more
emphasis on quality
Small packaging, More
emphasis on core benefit
Place Direct and Indirect
Distribution Channel
Indirect Distribution
channel
Price High Price Product Low Price Product
Promotion More emphasis on media Emphasis on organizing
events, Opinion Leader
21. Introduction
An ambitious venture by HLL to spur growth and penetration
of its products in rural India while changing lives and boosting
incomes.
Sales and Distribution initiative – delivers growth
Communication initiative – build brand
Micro-enterprise initiative – creates livelihoods
Social initiative – improve standard of living in rural
India
22. Objectives
Business objective:
To extend HLL's reach into untapped markets
and to develop its brands through local
influencers.
To reach 100 million consumers by 2006
Social objective:
To provide sustainable livelihood opportunities for underprivileged rural
women.
To scale up the number of Shakti entrepreneurs from 12000 (2004) to 25000
(2006)
23.
24. Project Shakti :
Consumer Marketing Channel
HLL
(Manufacturer)
SHG
Retailers
Consumers
Shakti
Entrepreneur
s
• Integrated Multichannel
System