chapter 2 rural management

8/9/2019 Chapter 2 rural management

1/39

Copyr i

gh

t

2012

Dor l

ingK

inder

sley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Chapter 2

The Rural Marketing Environment


2/39

Copyr i

gh

t

2012

Dor l

ingK

inder

sley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Learning Objectives

# Des$ri%e the evolution o& rural 'ar!eting

# ra$! the rural 'ar!eting environ'ent in ter's o&de'ographi$" physi$al" so$ial" $ultural" politi$al andte$hnologi$al aspe$ts

# nderstand the rural e$ono'i$ environ'ent" the $hangingrural e$ono'i$ stru$ture" and in$o'e spending pattern

# nderstand rural in&rastru$ture" govern'ent support" andits relevan$e &or 'ar!eting

# Des$ri%e the initiatives in the rural e'ploy'ent generationprogra''e

2


3/39

Copyr i

gh

t

2012

Dor l

ingK

inder

sley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Evolution of RuralMarketing


4/39

Copyr i

gh

t

2012

Dor l

ingK

inder

sley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural Environment

4


5/39


6/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural DemographicEnvironment

6

" #reak$up of the T%pe of &ousehol!s in n!iaOthers inclu!es siblings living together' etc(

Source: n!ian Rea!ership )urve%

# oint &a'ily stru$ture giving ,ay to individualied 3oint&a'ilies staying in the sa'e house %ut ,ith separate !it$hens


7/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

# 4+ o& the population is in the $onsu'ing age group o& 1 to4- years

The Rural Population in n!ia



8/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


# Litera$y rate up &ro' 4+ in 2000 to /4+ in 2010

Literac% "mong n!ivi!uals of "ge *2 %ears an! "bove


9/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

# Land &rag'entation" rising edu$ation and in$reased s!ill setshave en$ouraged shi&t &ro' agri$ultural to non5agri$ulturalo$$upation


Occupation #reak$up in Rural "reas


10/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


# otal land under &ar'ing al'ost $onstant %ut gro,th in

s'all and 'arginal &ar'ers

# Per $apita in$o'e up &ro' I6R 11"22* in 200-50 to I6R

1"1*4 in 2010

The Lan!hol!ing Pattern in Rural n!ia


11/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural Ph%sical Environment

)ettlement )i+e# otal o& /.4 la$ villages o&

,hi$h .4 la$ inha%ited

&ousing )tructure# ype o& houses indi$ators

o& e$ono'i$ gro,th# 7hare o& pu$$a houses up

&ro' 41+ in 10 to /+in 2010

)prea! of ,illages in Rural n!ia

The &ousing Pattern in Rural "reasSource:Census of n!ia an! n!ian

Rea!ership )urve%(


12/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural Ph%sical Environment

)ettlement )i+e

# 4/.-+ o& villages have

population o& 00 or less

,ith no shops

# 8illages ,ith population o&

2"0009 (1.*+) 'ost

prosperous ,ith 0+ o& the

rural population and /0+ o&

the rural ,ealth

&ousing )tructure

# ype o& house ,as part o&

7:C $lassi&i$ation in rural


13/39

Copyr i

gh

t

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural )ocial an! CulturalEnvironment

# India has / so$io5$ultural regions ,hi$h ,ere later split into 0to %e used &or 'ar!et seg'entation and targeting

# 8illages have lo$al ;ra' Pan$hayats ,ith reservations on $asteand gender lines

# he role o& elders as in&luen$ers no, giving ,ay to youth and!no,ledgea%le

#


14/39


15/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural TechnologicalEnvironment

# Rapid 'e$haniation otal $ropped area $onstant at around 10 'illionhe$tares

ra$tors nearly dou%led %et,een 1- and 200/

15

Rapi! -ro.th of /arm Mechani+ation


16/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

# 7hare o& ani'al po,er do,n &ro' 1/+ to *+

ncreasing Mechani+ation0 )ource of Po.erSource:n!ia #ran! E1uit% /oun!ation' ...(ibef(org



17/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


# In&or'ation and $o''uni$ation revolution enhan$ing

e?posure to ,eather &ore$asts" 'andi rates" health and legal

advi$e" 3o% opportunities

# :&&e$tiveness o& e5Choupal introdu$ed %y IC

17


18/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Rural EconomicEnvironment

Rising rural in$o'es is&uelling $onsu'ption gro,thin$reasing the share o& total

Parameter Contribution of Rural n!ia 34

Total Population 56

Total ncome 78

Total E9pen!iture 8:

Total )avings ;;

# Rural gro,th ,as the

highest in 200

# =ll hu'an develop'entindi$ators on the rise

# Persons %elo, the povertyline do,n &ro' 2*+ to22+

18

Table 2.9


19/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Changing /ace of Rural Development

# ;ro,th in no'inal rural ;DP has in$reased to over 12+ perannu' over the last &e, years.

# Politi$al environ'ent 'ore &riendly.

19

-ro.th in Rural ConsumptionSource:Cre!it$)uisse


20/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Changing /ace of Rural Development

# 7i? &old in$rease in %udget allo$ations &or agri$ulture andrural develop'ent %et,een the @th and the 11th Aive BearPlan

# Aar' to non5&ar' in$o'e at -0/0 in 2010

#20

)ectoral "llocations During /ive


21/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Transition of the RuralEconom%

ransition has o$$urred at threelevels# Aood grain $rops# n5land a$tivities# Aar' a$tivities

ransition lin!ed to highopportunity &or value additionresulting in high rural in$o'es.Aar' se$tor no, $ontri%utesonly -0+ o& the rural in$o'e,ith non5&ar' a$tivity$ontri%uting to /0+.


22/39

Copyr ig

ht

2012

Dor l

ingK

indersley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Rural Economic)tructure

Aro' &ood grain5s$ar$ee$ono'y to a &ood grain5surplus e$ono'yIndia largest produ$er o&$o$onut" 'angoes"

%ananas" 'il! and dairyprodu$ts" $ashe, nuts"pulses" ginger" tur'eri$ and%la$! pepper.7e$ond largest produ$er o&ri$e" ,heat" sugar" $otton"&ruits and vegeta%les.


23/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The /arm )ector

# 7hi&t &ro' staples to 'ore lu$rative $ash $rops

# =rea under &ood grains and $oarse grains de$lined %y 2 and1@+ ,hile sugar$ane and $otton up %y 2 and 10+

respe$tively

# ini'u' 7upport Pri$es no, %eing in$reased at a &asterpa$e

# Produ$tion o& &oodgrains in 200E10 is esti'ated at 21/.@'illion tonnes.

# =llied a$tivities li!e dairy" poultry and &ishing also gro,ing23


24/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The =on$farm )ector

)econ!ar% sector# Cotton te?tiles" ,ood" pottery" &ood" 'etal produ$ts"

handi$ra&ts

# :le$tri$al e>uip'ent" paper" $he'i$als and po,er loo's

Tertiar% sectors# rade" transport" &ood %usiness" edu$ation" personal

servi$es

6on5&ar' se$tor a$$ounts &or /0+ o& rural ;DP e'ployingonly 2*+ o& the rural ,or!&or$e

# :sti'ated to $ontri%ute *0+ %y 2020 24


25/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural Enterprises

# otal rural enterprises 2.- 'illion (/1+ o& total)

# 6on5agri$ultural enterprises 1.@4 'illion (@+ o& total)

# Retail trade (4+) do'inant a$tivity &ollo,ed %y'anu&a$turing (2/+)

# 6u'%er o& ,or!ers e'ployed up %y 20 'illion %et,een

10 and 200

25


26/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural Enterprises

26

The )tatus of Rural Enterprises in n!ia

=on$agricultural Establishments in Rural n!iaSource:

Economic Census' 2667(


27/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Changing Migration Tren!s

# igration &ro' rural areashas a positive i'pa$t onrural in$o'es sin$e 'oney isre'itted ho'e

# igration &ro' rural to ruralhighest indi$ating higheropportunities in rural.

# 2-+ o& 'ale 'igrantsreturned to their ho'elandsin 200*E0@

27

Migration Pattern


28/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

ncome an! E9pen!itures

#


29/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


# 6on5&ar' households reported higher in$o'es led %ysalaried and sel&5e'ployed

Changes in Rural ncome b% Occupation -roups


30/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

# ore %uying po,er a'ong non5&ar' households

The Rural ncome>E9pen!iture Profile in =R4)ource0 Ma9>=C"ER an! E!el.eiss>M"RT )urve%(



31/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


ncome Disparit%# op >uintile earns seven ti'es that o& %otto' >uintile

# op t,o >uintiles $ontri%ute to /0+ o& total rural in$o'es

Distribution of Rural Population an! ncome b% ncome ?uintiles


32/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


Rural )pen!ing

# Rural $onsu'ption 'ar!et 7D 10 %illion

# 7hare o& &ood dropped &ro' @+ to -2+ in the last de$ade

# 7e$tors gaining ,ere transport" edu$ation and re$reation

# 7hi&t &ro' un%randed to %randed goods

# Dura%les have not gro,n in ,allet share largely due to

drop in pri$es

# Rural $onsu'ption 'ar!et ,ill triple %y 2020 as per

:del,eiss esti'ates


33/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Changing @allet )hare in Rural n!ia)ource0 =))O an! E!el.eiss>M"RT )urve%



34/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Rural nfrastructure

34

# #harat =irman" $overing all5round in&rastru$turaldevelop'ent laun$hed in 200

#

"reas of Development An!er #harat =irman


35/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


35

# Rural eletri&i$ation is + although proportion o& ele$tri&ied

households is only /0+

# Rural housing (n!ira ".as


36/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e


Telecommunications

# otal rural users 21 'illion

# 2/ &old gro,th in teledensity in the last eight years

# Get,een 200/ and 2010 'o%ile penetration gre, seventi'es in rural India against three&old gro,th in ur%an

Rural Tele!ensit% -ro.th


37/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

The Rural Emplo%ment -enerationProgrammes

37

The Mahatma -an!hi =ational Rural Emplo%ment-uarantee "ct M=RE-"4# Laun$hed in Ae%ruary 200/ $overing /1 distri$ts and

pro'ising 100 days o& guaranteed ,age e'ploy'ent in a&inan$ial year

The ).arnj%anti -ram ).aro+gar


38/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural ar!eting" 2e

Rural Marketing Case=RE-"

Re&er to video $ase and ans,er the &ollo,ing >uestions

#


39/39

Copyr ig

ht

2012

Dor l

ingK

inde

rsley(I

ndia)Pvt.L

td.

Rural marketing is marketing to arural mindset, not a rural market.

It is all about understanding themind rather than manipulating itor adapting marketing theory to a

rural environment.

)uccessful Mantra in )tu!%ingRural Marketing Environment

chapter 2 rural management

Documents