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THE RURAL MARKETING ENVIRONMENT

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Rural Marketing – Course Plan Details

Rural Marketing Environment Defining Rural India Evolution of Rural Marketing Rural Market Structure Size of Rural market

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DEFINING RURAL INDIA

• SOURCE DEFINITION • CENSUS VILLAGES + TOWNS < 5000 POP

POPN DENSITY < 400/SQ KM

75% MALES IN AGRI ACTVITY • RBI < 10000 POPN.

• NABARD < 10000 POPN

• PLG. COMMN < 15000 POPN.

For FMCGs focus should be on < 20000 popn areasFor durables focus on < 50000 popn areas

RURAL DISTRICT CONSTRUCT

DESCRIPTION NOS.

URBAN COUSINS 67

RURAL ECONOMIC CENTRES 118

BASIC INFRASTRUCTURE 160

DEPRIVED 248

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Out of 593 districts, the construct is as follows :

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EVOLUTION OF RURAL MARKETING

• PHASE I Before the 1960’s• More of foodgrains, farm equipment, pots , pans etc.• Unorganised• PHASE II 1960’s TO 1990’s• Green Revolution – modern equipment/practices• Organised companies enter above• Cooperatives/Commissions formed and promotion of

handicrafts/village industries• Growing wealth – FMCGs discover rural• PHASE III-Beyond the 1990’s

Branded consumables Farm/non farm goods

and durables(organised) and services (unorganised)

Handicrafts, handloom, leather

(semi-organised)

R

U

U R

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DEFINING CORPORATE RURAL MARKETING

• A FUNCTION WHICH MANAGES ACTIVITIES FOR :-

• ASSESSING• STIMULATING• CONVERTING PURCHASING POWER INTO

DEMAND FOR PRODUCTS AND SERVICES• MAKING THESE PRODUCTS & SERVICES

AVAILABLE• TO CREATE SATISFACTION• A BETTER STANDARD OF LIVING• THEREBY ACHIEVING ORGANISATIONAL GOALS

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RURAL MARKET STRUCTURE

• DEMOGRAPHIC ENVIRONMENT• POPULATION UP 40% PURCHASING POWER UP

42%• 5-14 YEARS – 26%; 15-34 YEARS – 32%• EDUCATION AND LEVEL OF DEMAND• LITERACY UP 23%• SIGNIFICANT INCREASE IN DEMAND FOR

EDUCATIONAL MATERIALS • FAMILY STRUCTURE• 48% NUCLEAR FAMILIES & GETTING HIGHER• OCCUPATIONAL PATTERN• 41% CULTIVATORS, 35% WAGE EARNERS & 11%

SALARIED

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DISTRIBUTION OF RURAL HHs BY INCOMEANNUAL INCOME IN Rs.AT

1998 – 99 PRICESINCOME CLASS 1989 -90

(% HOUSEHOLDS)1998 – 99

(% HOUSEHOLDS)

<=35000 LOWER 67.3 47.9

35001-70000 LOWER MIDDLE 23.9 34.8

70001-105000 MIDDLE 7.1 10.4

105001-140000 UPPER MIDDLE 1.2 3.9

> 140000 HIGH 0.5 3.0

TOTAL 100 100

• Rural Annual Per Capita Income is Rs. 9481 vs Rs. 19407 in Urban• Highest Rural Per Capita Income is Punjab (Rs. 27256)• Lowest Rural Per capita Income is Orissa (Rs. 5704)

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RURAL INFRASTRUCTURE

• SOCIAL• Health – 137292 sub centres;22807 PHCs and 3027 CHCs• Each sub centre has 1 each multipurpose male and female

worker• Each PHC has medical officer + 14 paramedics/others. Acts

as referral unit for 6 SCs & has -6 beds• Each CHC has 4 medical specialists (surgeon, physician,

gynaec & paed.) + 21 paramedics/other staff. 30 beds + X Ray, labour room, OT, labs. One in 4 CHCs has facilities for obstetric care and specialist consultations.

• EDUCATION• 12,28,501 EDU. INST. • PUBLIC DITRIBUTION SYSTEM• 4.76 Lakh Fair Price Shops – cover 4 crore out of 11.2 crore

HHs