Presented by:

Puri Chandan

MBA(AB) 1st Year

IABM, Bikaner

Introduction

Facts about rural market

Meaning of rural marketing

The evolution of rural marketing

Meaning of innovation

Innovations in rural marketing

Conclusion

References

Flow of Presentation

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Organization Definitions of Rural

Census Village: Basic unit for rural areas is revenue village, which might comprise of several hamlets demarcated by physical boundaries.Town: Towns are actually urban areas that can satisfy the following criteria;• Minimum population >= 5000• Population density >= 400/sq.km• 75% of the population engaged in non-agricultural activities

RBI Rural with population up to 10,000 will be considered as rural and 10,000 to 1,00,000 will be considered as semi-urban

Planning Commission

Towns with population up to 15,000 are considered rural

Sahara Locations With shops/ commercial establishment up to 10,000 population size are treated as rural

LG Electronics All population centres other than the 7 metros are considered rural or semi-urban

Introduction

Source: Pradeep Kashyap Rural Marketing, Second edition

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Large Cities

Small Towns

Villages

Where Does India Live

25%

25%

50%

12%

18%

70%

1 Million+

<1 Million

<10,000

GDP

sharePopulation

48

Large cities

7,834Towns

6,38,000Villages

Source: Pradeep Kashyap Rural Marketing, Second edition

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Rural market comprises 70% of the country’s population,

41% of its middle class, 58% of its disposable income and

a large consuming class

Around 700 million people, or 70% of India's population,

live in near about 6,38,000 villages in rural areas

90% of the rural population is concentrated in villages

with a population of less than 2000

Rural India is the largest Rural Market in the World

Facts About Rural Market

Source: http://www.ibef.org/industry/indian-rural-market.aspx Contd…

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Rural India buys :

Soft Drinks approx 45% of all soft drinks

Almost 50% motor cycles

Approx 55% of cigarettes

Half the total market for

TV

Fans

Pressure cooker

Bicycles

Washing soap

Tea

Blades

Salt

Toothpowder

Source: http://www.ibef.org/industry/indian-rural-market.aspx

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Size of Indian Rural Market

Source: http://www.ijarcsse.com/docs/papers/Volume_3/1_January2013/V3I1-0207.pdf

65000

45000

80005000

0

10000

20000

30000

40000

50000

60000

70000

FMCG Agri-Inputs 2/4 Wheelers Durables

Market size is 1,23,000 ₹ crores

₹

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Rural Marketing

Rural marketing is the process of marketing in rural areas, it includes the adoption

of various marketing strategies and policies in rural market with a view to convert

the needs and wants of rural people into demand

Rural marketing is planning and implementation of marketing function for the

rural areas

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Evolution of Rural Marketing

3 Phase Three( 1990-2000 )

• Demand for consumables and durables rise• Indian corporations with customized offerings for rural

markets

4 Phase Four( after 2000 )

• Government pro-rural initiatives take place• Several FMCG increase visibility in rural market• Durables companies like LG and Samsung have

employed rural thrust• Several MNC started entering rural market

Sr. No. Time Frame Key Events & Trends

1 Phase One( Pre 1960’s )

• Marketing of rural products in rural and urban areas• Agricultural inputs in rural markets• Agricultural Marketing• Farming methods were primitive and mechanization was low• Markets unorganized

2 Phase Two( 1960-1990 )

• Green revolution• Companies like Mahindra & Mahindra, Sri Ram Fertilizers,

IFFCO emerge• Rural products are also marketed through agencies like KVIC• A new area, ‘marketing of agricultural inputs’ emerge• Nirma became the first company to initiate and produce products for

rural market

Source: Pradeep Kashyap Rural Marketing, Second edition

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A marketing innovation is the implementation of a

new marketing method involving significant changes in

product design or packaging, product placement, product

promotion or pricing

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Key imperatives for profitable and sustainable growth in rural markets

(Percent of survey respondents)

49

46

39

38

35

39

26

38

30

36

9

13

18

26

23

0

6

6

3

4

3

9

2

2

1

SUPPLY CHAIN AND DISTRIBUTION

EFFEICIENCY

PRODUCT LOCALISATION AND

INNOVATION

PRICING

CUSTOMER SERVICES

COLLABRATIVE BUSINESS MODELVery Important

Important

Less Important

Very Less Important

Not at all Important

Why Innovation?

Source: http://www.accenture.com/Global/Research_and_Insights/Outlook/By_Issue/Y2013/APassageToIndia.htm

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Innovation in Rural Markets

Innovation

Innovation in

Product

Innovation in Price

Innovation in

Promotion

Innovation in Place

Innovations in Packaging

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The Rasoi Ghar is a community kitchen sharedby several households of one village

Centrally located in a target cluster of a selectedvillage

Each Rasoi Ghar is equipped with an adequatewater supply, a cooking slab, basic cookingutensils and a minimum of 2 stoves connected toreplaceable LPG cylinders

Video

HPCL Rasoi Ghar

Source: Pradeep Kashyap Rural Marketing, Second edition

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ICRISAT has recently launched "Green PHABLET powered by

the Green SIM” with NUNC a Hyderabad-based company

This will help farmers purchase inputs at lower price, get a better

price for their produce, and link them to markets, thus putting

them on the path to prosperity

GreenSIM is a special SIM card created by ICRISAT, Airtel, and

the IFFCO Kisan Sanchar Limited (IKSL).

ICRISAT Green PHABLET

Source: http://www.ruralmarketing.in/industry/innovation/icrisat-launched-greensim-powered-greenphablet

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A brainchild of Nikhil Jaisinghani, an alumniof University of Virginia, which builds andoperates low cost solar powered micro grids

It offers consumers a lower cost lightingservices

Impact

By the end of March 2014, MGP hasconnected 20,000 households with its microgrid in the villages of Uttar Pradesh, providingelectricity to 1,00,000 people

Mera Gao Power

Source: http://www.ruralmarketing.in/industry/innovation/ideating-innovative-india

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Ampere Vehicle Pvt. Ltd., has launched‘E-Vehicle’ a light electric vehiclecompany based in south India

The range of products comprises ofbicycle to scooter which can be used on anaverage of 60 kms when the battery ischarged for 6-8 hours

Impact:

Ampere sells about 10,000 light E-vehicles, ranging from scooters tomotorbikes, annually in South India

E-Innovation For a Cleaner Future

Source: http://www.ruralmarketing.in/tag/e-innovation-for-a-cleaner-future

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FMCG Companies:

Coca-Cola: 200ml for 5 ₹

Gillette: Gillette Guard was launched to provide high-quality shave at an affordable price

Free Price Coupons Scheme:

This scheme launched by companies like Sinochem, DuPont, Syngenta for dealers and distributors

Innovation in Price

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Dabur launched Project Double in 2010

The project’s goals were to double rural market

revenue and increase penetration of non-passive

distributed categories

Impact:

Within a year and a half, Project Double has reached

24,000 of the targeted 33,000 villages with

populations of more than 3,000 in the top 10 states

Dabur: Project Double

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Flipkart with Common Service Centre's (CSCs) offer rural

artisans the opportunity to build and establish their brand

nationally, access to financial, marketing and supply chain

support and at the same time will generate employment

and enhance rural economy

This provide the rural artisan and MSME community the

support needed to market their products across the country

Flipkart, Snapdeal plans to tap 50 lakh low-income

households in villages across the country

Flipkart “Karigaar ke Dwaar”

Source: http://www.ruralmarketing.in/industry/advertising-and-marketing/flipkart-joins-hands-with-csc-e-governance-services

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ITC’s e-Choupal:

It offers the farmers all the information, products andservices they need to enhance farm productivity,improve farm, gate price realization and cut transactioncosts

Farmers can access latest local and global informationon weather, scientific farming practices as well asmarket prices at the village itself through this webportal - all in Hindi

It also facilitates supply of high quality farm inputs aswell as purchase of commodities at their doorstep

e-Rural Marketing

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1. ITC’s Choupal Sagar:

It offer multiple services under one roof

2. TATA Kisan Sansar:

The centres offer farmer a host of

products and services ranging from

agri-inputs, financing to advisory

services

Organised Rural Retailing

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3.Godrej’s Aadhaar

The centres retails agri-inputs, animal feeds

along with FMCGs and services

4. 3A BAZZAR:

It is mobile retailing initiative launched for rural

areas

Every day, the van stuffed with 1300 items

ranging from FMCGs, cosmetics, garments and

stationery covers three to five villages

Contd…

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1. Google’s Bus:

The internet bus launched by Google to

educate the offline population in India about

the benefit of the internet

2. TATA Shakti: Haat Hungama Campaign:

Interactive brand games in the form of a set

flash cards created an edutainment platform

for the audience

It result in 37% increase in sales

Innovations in Promotion

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TML launched Project Neev (literally means ‘foundation’ in Sanskrit), with an eye on gaining a first-mover advantage in rural markets

This projects aims to tap the rural segment by selling small commercial vehicles & creation of rural entrepreneurship opportunities through vehicle ownership

Impact:

The rural business has seen addition of over 20 percent to TML’s SCV vehicle sales

TATA Motors: Project Neev

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1. Packing a Punch: S-pac:

The revolutionary new packaging design, S-pac of

Syngenta delivers customers benefits of improved safety,

ease-of-use and counterfeit protection as well as

strengthening the Syngenta brand image with customers

2. DuPont Dual Compartment Pouch MixPack:

3. PI Industry's Nominee Gold

Innovations in Packaging

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Rural Market have untapped potential

Rural India can be one of the most feasible market for the development of the FMCG

and Agri-input companies

With proper planning and use of new strategies and technologies, the rural India

market can be captured and a great margin of profit can be earned by the FMCG

companies, Agri-input companies, Automobile companies etc.

There is vast scope for e-Marketing of agricultural produces

Conclusions

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Pradeep Kashyap: Rural Marketing, Second Edition

Balram Dogra and Karminder Ghurman: Rural Marketing, Concepts and Practices

Global Journal of commerce and management perspective, Nov.2013

http://www.ruralmarketing.in

http://www.irjmsh.com

http://ijmcr.com

http://www.ibef.org/industry/indian-rural-market.aspx

Retrieved fromhttp://www.ijarcsse.com/docs/papers/Volume_3/1_January2013/V3I1-0207.pdf

Retrieved from http://www.accenture.com/inen/landingpages/ Documents/ Rural Market-15/pdf

Retrieved fromhttp://www.accenture.com/Global/Research_and_Insights/Outlook/ By

Issue/Y2013/APassageToIndia.htm

References

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