Faculty:-Mrs. Kusum Sehrawat Welcome to the Session on CEC I I PM Rural as any habitation with a population density of less than 400 per sq. km., where at least 75% of the male working population is engaged in agriculture & where there exists no municipality or board.
8/21/2014 Rural & Social Marketing 2 Rural Market- Definition CEC I I PM Rural Marketing Marketing of agricultural products, from rural to urban areas (e.g. food grains, oilseeds, cotton, sugarcane, tobacco etc.) Marketing of manufactured goods & services in rural areas (e.g. radio, bicycles, mopeds, clocks, batteries, electrical & electronic goods etc.) 8/21/2014 Rural & Social Marketing 3 CEC I I PM There are 42,000 rural markets in India In 2001-02, the LIC sold 55%of its policies in RI Of the 20 lakh BSNL mobile phone connections, 50% are in rural The billing/ cell phone in small towns in AP is higher than the billing in the capital, Hyderabad city Of the 2 crore who have signed up for rediffmail, 60% are from small towns 8/21/2014 Rural & Social Marketing 4 Rural Sector: Some Facts CEC I I PM Internet access in semi-Urban & rural areas has increased through the Sanchar Dhabas of BSNL. The 41 million Kisan Credit Cards (KCC) issued in rural India exceed the 40 million credit-plus-debit cards issued in urban India. Electricity consumption by the agricultural sector has shown a sharp increase. 8/21/2014 Rural & Social Marketing 5 Contd. CEC I I PM Rural Economy: The Trigger Rising Rural Prosperity Rural India consumes more than Urban India in some areas Consumer durables penetration in India is increasing No. of durables owned by Rural consumers is increasing year by year Growth rate of durables 8/21/2014 Rural & Social Marketing 6 CEC I I PM Attribute Rural Urban Population Density Low Urban Occupation Agriculture Trade, Industry & Service Economy Closed Open Infrastructure Poor & Weak Abundant & Strong Attitude to Modernization Tradition bound Ready for adaption & change Family Structure Joint Nuclear Possession of household assets Low High Mobility Low High Literacy Low High Exposure Low High Attitude of Life Fatalistic Scientific Distribution outlets Fewer More Differences between Rural & Urban Markets 8/21/2014 Rural & Social Marketing 7 CEC I I PM Understanding Rural Markets Understanding Rural Consumers New Influencers Products Rural Distribution Rural Communication 8/21/2014 Rural & Social Marketing 8 CEC I I PM The AICDA Model Awareness Interest Conviction Desire Action 8/21/2014 Rural & Social Marketing 9 CEC I I PM Marketing Myth 1: Well lose to loose. Rural consumers arent worth bothering about since they buy loose, unbranded products rather than the branded variety. Marketing Myth 2: Its okay if youre Nirma. Rural consumers will only buy really cheap mass market brands. 8/21/2014 Rural & Social Marketing 10 Myths about Rural Marketing CEC I I PM Marketing Myth 3: Rural consumers will take whats given to them. Marketers often believe that if they have solid sales in rural areas, those are secure. Marketing Myth 4: One family, one brand. Marketers often expect rural households to be homogeneous in consumption-theres one brand for the whole household. 8/21/2014 Rural & Social Marketing 11 Myths Contd. CEC I I PM Myths Contd Marketing Myth 5: Distribution drives rural sales. Rural marketing is only about distribution. Only if you can crack logistics- and many companies cant be bothered will you sell in rural areas. 8/21/2014 Rural & Social Marketing 12 CEC I I PM Myth 1- Reality 8/21/2014 Rural & Social Marketing 13 % Branded <20% 21-40% 41-60% 61-80% 81-100% Necessity Non reifined oil Iodized salt,tea, washing cakes Biscuits Toilet soaps, Washing powders Popular Coconut oil Analgesics safety, tothpastes Premium Vanaspati Bulbs,Hair oil Batteries, Rubs & balms, skin creams,toothpow ders Super- Premium Refined Oil Home insecticides Toothbrushes, creams, digestives,tubelig hts CEC I I PM Myth 2- Reality 8/21/2014 Rural & Social Marketing 14 Washing powders/liquid s (% of households) SEC Total Highest SEC (01) Lowest SEC (06) Surf 6.7 12.1 5.1 Wheel 15 16 15.6
Nirma 45.7 43.7 41.8 CEC I I PM Myth 3-Reality 8/21/2014 Rural & Social Marketing 15 Rubs& Balms SEC Total Highest SEC (01) Lowest SEC (06) Iodex 4.2 11.92 3.21 Amrutanjan 21.75 17.03 21.19 CEC I I PM Myth 4- Reality 8/21/2014 Rural & Social Marketing 16 Category % of multiple users Analgesics/cold tablets 27.6 Batteries 8.2 Biscuits 28.8 Bulbs 12 Digestives 11.6 Edible oils 15.4 Hair Wash Preparations 22.8 Rubs & Balms 10.1 Safety Rajor blades 16.1 Tea 26 Toilet soaps 42.9 Washing cakes/ bars 30.7 CEC I I PM Myth 5 -Reality 8/21/2014 Rural & Social Marketing 17 Category % of share urban purchase Shaving Preparations 36.6 Rubs & balms 32.0 Toilet soaps 24.0 Washing powders/liquids 23.4 Iodized salt 14.4 CEC I I PM Age & Stages of Life Cycle Occupation & Income Economic Circumstances Lifestyle Personality & Self-Concept Personality & Psychological factors Perception & Brand Belief Information Search & Pre-Purchase Evaluation The Rise of Consumerism
8/21/2014 Rural & Social Marketing 18 Characteristics of Rural Customers CEC I I PM Age Life-cycle stage Urban Rural Below 12 Child Video games, chocolates, beverages/health drinks Toys, ice candy, Daliya 13-19 Teenage Cell Phones, motorcycles, Internet Bicycle, television, cinema 20-40 Young Car, personal computer, branded clothing, alcohol Motorcycle, telephone, LPG, tailored/unbranded clothes, country/local liquor, haat 40-60 Middle aged Luxury car, credit cards, house, health insurance Tractor, Kisan Credit Card, postal savings, mela Above 60 old Clubs, theatre, parks Chaupal, playing cards, pilgrimage Consumption by Age & Life-Cycle Stages: Rural Vs Urban Products & Services 8/21/2014 Rural & Social Marketing 19 CEC I I PM Occupation category Rural HH (%)
Contributio n to TV ownership (%) Contributio n to 2- wheeler ownership (%)
Contribut ion to Refrigera tors (%) Owner farmer 34 33 33 31 Shopkeeper/trader 8 14 16 20 Salary earner 13 31 39 40 Agri worker 20 6 3 2 Unskilled non-agri labourer 17 9 4 5 Artisan 6 6 4 2 Rest (leased farmers, livestock, poultry, fishery, milkman) 2 2 1 1 Rural Occupation & Consumption Pattern 8/21/2014 Rural & Social Marketing 20 CEC I I PM Dimensions Urban Rural Demographics Convent educated, salary earner, small nuclear family, large dense population, apartments Govt School, self-employed, large family, small/scattered population, ordinary spacious house Activities Office jobs, internet surfing, health club, shopping, clubs & party Agriculture, physical sports, gossip, playing cards, cinema, religious congregation Interests Chinese, Continental foods, designer clothes, beauty saloons, holiday trips Desi food, milk bright colored clothes, jewellery, visiting towns, markets/mela Comparison of Rural & Urban Lifestyles 8/21/2014 Rural & Social Marketing 21 CEC I I PM Brand Name Rural Brand ambassador Brand personality Coca Cola Aamir Khan Smart, Colorful, youthful Mahindra Tractor Sunny Deol Rugged & Relaxed, dominating Rajdoot Dharmendra Rugged, conventional, thrifty Philips Radio Rajnikanth Modern, colourful, social Navaratan oil Govinda Jovial, youthful Ruf & Tuf jeans Akshay Kumar Robust, self confident, go getter 8/21/2014 Rural & Social Marketing 22 CEC I I PM The Rural Marketing Mix
Handicrafts, handloom, textiles, leather products ( Semi-organised) U R B A N R U R A L P R O D U C T I O N 8/21/2014 Rural & Social Marketing 23 M A R K E T R U R A L U R B A N CEC I I PM Rural Market Environment Demographic Environment Education & Level of Demand Household Pattern Rural Housing Pattern Occupational Pattern Physical Environment Settlements (Scattered & Clustered)
8/21/2014 Rural & Social Marketing 24 CEC I I PM Education in India . 8/21/2014 Rural & Social Marketing 25 Education level Rural Urban Below Primary 31.7 18 Primary but below Middle 29.5 22.9 Middle but below Matriculation 16.9 16.3 Matriculation but below Graduate 18.4 29.6 Graduation and above 3.5 13.2 CEC I I PM Literacy 2001-2011 (in crores) . 8/21/2014 Rural & Social Marketing 26 2001 2011 Difference % Growth People 56.0 77.8 21.8 38.82 Males 33.6 (75.3%) 44.4 (82.1%) 10.8 31.98 Females 22.4 (53.7%) 33.4 (65.5%) 11.0 49.10 CEC I I PM Family Structure Type of Household Rural Urban Joint 19.5 15.2 Nuclear without elders 60.2 65.5 Nuclear with elders 17.1 15.4 Others 3.2 3.9 8/21/2014 Rural & Social Marketing 27 CEC I I PM Contd.. Economic Environment Changing Rural Consumers Expenditure Pattern Saving Pattern Social & Cultural Environment Village Community Caster System Political Environment
8/21/2014 Rural & Social Marketing 28 CEC I I PM Savings Pattern . 8/21/2014 Rural & Social Marketing 29 Households availing banking facilities Total % of HHs Rural HHs % of Total HHs Urban % of HHs Households (HHs) 192 138 72 54 26 No. of HHs availing banking services 68 35.5 42 30.1 27 49.5 CEC I I PM Contd Technological Environment Green Revolution White Revolution The NGO Movement
8/21/2014 Rural & Social Marketing 30 CEC I I PM Rural Marketing & the 4Ps Product Price Promotion Positioning
8/21/2014 Rural & Social Marketing 31 CEC I I PM Challenges of Rural Marketing The unevenly scattered Population Underdeveloped People & underdeveloped Market Lack of Proper Physical Communication Facilities Low Per Capita Incomes Many Languages and Dialects Low level of Literacy 8/21/2014 Rural & Social Marketing 32 CEC I I PM Contd.. Logistics Problems Low exposure to Market Stimuli Less Retail Outlets Seasonal Demand Traditional Life
8/21/2014 Rural & Social Marketing 33 CEC I I PM Rural Marketing Research Mostly qualitative studies are much performed in rural areas like: 4 As Acceptability, Affordability, Awareness & Availability U & A (Usage & Attributes) or KAP (Knowledge, Attitude & Practices) Feasibility Mapping distribution, promotion, & communication channels
8/21/2014 Rural & Social Marketing 34 CEC I I PM 8/21/2014 Rural & Social Marketing 35 Data Sources Description Census of India Largest compilation of rural demographic data NCAER (National Council for Applied Economic Research) Largest sample surveyor in the country (on demographics, durables & non durables) NSSO (National Sample Survey Organization) Consumption & expenditure related data CSO ( Central Statistical organization) State-wise compilation of demographics, economic indicators, infrastructure etc. DRDA (District Rural Development Authority) Compilation of district level data) State Statistical Abstract State Statistical officer maintains the data ICDS (Integrated Child Development Scheme) Village level information compiled by anganwadi workers Panchayat Office Village level information household wise on demographics, health etc. Rural Panels of MR Companies ORG-MARG & IMRB own rural panels that collect data on consumption & expenditure on daily basis CEC I I PM Data Collection Methods 8/21/2014 Rural & Social Marketing 36 Participatory Rural Appraisal Focus Group Discussion Large & heterogeneous in nature, ensuring participation from all walks of life Typically small & homogeneous in nature As expression is both verbal & non verbal, even assertive people can express their views A verbal channel-outspoken individuals dominate the discussion Moderators role is low, hence information flow is more natural Moderators intervention can be high in evoking response and from all sections Attitudes and behavioral change oriented Action oriented On the spot analysis by participants Analysis done by moderators Cross checking and validation of data can be done on site by involving other members or groups FGD needs to be verified with more FGD till a consensus is reached CEC I I PM Measurement & Scaling Methods Simple and easy to understand Make use of visuals and colors Ensure involvement of respondents Empower the respondents
8/21/2014 Rural & Social Marketing 37 CEC I I PM Famous Rural scaling methods Faces for rating Wheel of different colors Ladder Technique 8/21/2014 Rural & Social Marketing 38 CEC I I PM Questionnaire Design Questions should be simple & direct Questions should be self explanatory Questions should not be ambiguous Question should have logical flow, moving from general to specific and from macro to micro Question should be in local language. The accuracy of translations should be checked by persons from the same region. 8/21/2014 Rural & Social Marketing 39 CEC I I PM Factors affecting sampling Population spread Scattered and remote location Heterogeneity Sampling Process Village Sampling Respondents sampling Sample size determination
8/21/2014 Rural & Social Marketing 40 CEC I I PM Dos & Donts in rural market research Wear simple clothes while in field Knowledge of local language is must Invest time building rapport with the interviewee Build the conversation gradually The purpose of survey/research & its benefits should be explained clearly Involve the interviewee as much as possible 8/21/2014 Rural & Social Marketing 41 CEC I I PM Contd. The interviewee should be made to feel important Issues sensitive to the respondent carefully handled Male researchers should not directly go to the woman Interviewers should avoid being overfriendly The researcher should always carry food, water & first-aid kit 8/21/2014 Rural & Social Marketing 42 CEC I I PM Attributes of rural researchers Mindset Effective Communication Discerning Ability Good Memory Patience
8/21/2014 Rural & Social Marketing 43 CEC I I PM Locations of Conducting Research Retail Shop/STD Booth Tea Stall Playground Chaupal Haat 8/21/2014 Rural & Social Marketing 44 CEC I I PM Limitations of Rural Research Low literacy levels Poor media exposure, low product, & brand awareness Local language communication Scattered & remote villages, inaccessible roads Interview timing Rule out revalidation of data 8/21/2014 Rural & Social Marketing 45 CEC I I PM Segmentation Segmentation is the process of dividing a heterogeneous market, into several sub markets or segments, each of which tends to be homogeneous in all significant aspects. The division is based on the premise, that different people have different preferences 8/21/2014 Rural & Social Marketing 46 CEC I I PM Prerequisites for Effective Segmentation Measurable Accessible Differentiable Subtantial
8/21/2014 Rural & Social Marketing 47 CEC I I PM Degrees of Segmentation Mass Marketing Segment Marketing Niche Marketing Micro Marketing Local Marketing Individual Marketing 8/21/2014 Rural & Social Marketing 48 CEC I I PM 8/21/2014 Rural & Social Marketing 49 Basis of Segmentation Geographic Region (East, West, North, South), Village size, Density (low, moderate, high), Climate (summer, rainy, winter), Culture etc. Demographic Age & life cycle (Children, teenagers, young adults, elders), Family Structure, Gender, Income, Landownership, Education, House type, Occupation, Religion, Caste Psychographic Social Class (upper, lower, middle), Lifestyle (Trendsetter, follower, traditionalist), Personality (Authoritarian, ambitious) Behavioural Occasion (Festival, mela), Benefits sought (Quality, convenience, value for money), User Status (Non User, Ex user, potential user), User rate(Light user, heavy user), Loyalty Status Strong, weak, non loyal), Place of purchase (Village shop, haat, nearby town, mela) CEC I I PM Targeting Once segmentation is done, the marketer needs to evaluate each segment to decide which segment (s) to target. Targeting involves evaluating various segments and selecting how many and which ones to target. The three aspetcs of targeting are evaluation, selection and coverage 8/21/2014 Rural & Social Marketing 50 CEC I I PM Evaluation & Selection of Segments Evaluation a. Overall Attractiveness b. Company Objectives and Resource Competencies Selection
8/21/2014 Rural & Social Marketing 51 CEC I I PM Coverage of Segments Undifferentiated Marketing Differentiated/Targeted Marketing Concentrated Strategy 8/21/2014 Rural & Social Marketing 52 CEC I I PM Positioning Positioning is the act of designing the companys offering and image so that it occupies a distinctive place in the mind of target segment. Positioning serves as a platform for the brand to reach the target customer. 8/21/2014 Rural & Social Marketing 53 CEC I I PM Positioning Involves Identifying the Unique features of the product (USP) as well as the differences of the offer vis--vis the competitors offer Selecting the differences which have greater competitive advantage Communicating such advantages to the target audience
8/21/2014 Rural & Social Marketing 54 CEC I I PM Identifying the Positioning Concept Product Differentiation Service Differentiation People Differentiation Image Differentiation 8/21/2014 Rural & Social Marketing 55 CEC I I PM Selecting the Positioning Concept Attractiveness Distinctiveness Pre-emptive Affordability Communicability 8/21/2014 Rural & Social Marketing 56 CEC I I PM Developing & Communicating the Concept Developing the concept Communicating the Concept Deciding how many ideas/ differences to promote Deciding which positioning to promote 8/21/2014 Rural & Social Marketing 57 CEC I I PM The Product Concept Product is the most vital element in the market offering. Marketing mix planning begins with formulating an offering to meet the needs & wants of the target customer. The rural customer judges the offering on the basis of 3 basic elements Products, features & quality. 8/21/2014 Rural & Social Marketing 58 CEC I I PM Product should be Appropriate for rural environment Simple to operate Visually identifiable Affordable 8/21/2014 Rural & Social Marketing 59 CEC I I PM Levels of a Product Potential product Augmented product Expected product Basic product Core benefit 8/21/2014 Rural & Social Marketing 60 CEC I I PM Rural Product Classification Rural Products FMCGs Durables Services Agricultural goods 8/21/2014 Rural & Social Marketing 61 CEC I I PM Products Decisions & Strategies Individual product decisions Product line decisions Product mix decisions 8/21/2014 Rural & Social Marketing 62 CEC I I PM Individual Product Decisions Quality Features Design & Style 8/21/2014 Rural & Social Marketing 63 CEC I I PM Product line & Mix Decisions A Product line is a group of closely related products priced within a certain range, targeted at the same customer group and distributed through the same channel. 8/21/2014 Rural & Social Marketing 64 CEC I I PM Product Branding in Rural Markets Colours: Lal Dant Manjan, Lal sabun (Lifebuoy), Red battery (Eveready), Brooke Bond Red Label tea Numbers: Godrej No. 1 soap, 555 detergent bar, 502 Pataka chai, Brooke Bond A1 karak chai Visuals: Ghari detergent, Rath Vanaspati, Wagh Bakri tea, 3 Roses tea, Katchu Chaap mosquito coil 8/21/2014 Rural & Social Marketing 65 CEC I I PM Building Brands in Rural Markets Developing a Brand Name Creating a Brand Identity Building a Brand Name 8/21/2014 Rural & Social Marketing 66 CEC I I PM Fake Brands Look alikes: The overall apperance is similar is similar to that of a popular brand. (Shagun for Lifebuoy, Lalita Amla for Dabur Amla) Spell alikes: Fakes to origional but packaging similar to those of origionals. (Paracute for Parachute, Fare & Lovely for Fair & Lovely) Duplicates: are exact replicas of original brands but of low quality 8/21/2014 Rural & Social Marketing 67 CEC I I PM Packaging for Rural Markets Poor transport system (poor road conditions) Difficulties of safe storage (rats, heat, rainwater, moisture) Poor facilities (erratic power supply)
8/21/2014 Rural & Social Marketing 68 CEC I I PM Essential characteristics of Rural Products Should have a longer shelf life Be able to withstand the extreme weather conditions Be able to withstand sudden & jerky movements on dusty roads Have alternate storage arrangements (ice box for cold drinks) 8/21/2014 Rural & Social Marketing 69 CEC I I PM Pricing Strategies Pricing is a major element in the marketing mix. It is defined as the exchange value of a product or service, and is the amount of money neededto acquire a product or a service 8/21/2014 Rural & Social Marketing 70 CEC I I PM Setting the Price for Rural Markets Internal Factors Promotional Cost Distribution Cost Pricing objective of the Company Profit Maximization Minimum returns on sales turnover Deeper penetration of the markets Keeping up with the competition Increasing Sales volume & Market Share 8/21/2014 Rural & Social Marketing 71 CEC I I PM Contd. External Factors Price sensitivity of customers Channel Costs Competition Environment 8/21/2014 Rural & Social Marketing 72 CEC I I PM Price Setting Strategies Skimming Pricing Penetration Pricing Optional-Product Pricing Captive-Product Pricing Product Bundle Pricing 8/21/2014 Rural & Social Marketing 73 CEC I I PM Price Adjustment Strategies Discounts & Allowance Pricing Freebies Special-Event Pricing Economy Pricing Value Pricing Psychological Pricing Discriminatory Pricing 8/21/2014 Rural & Social Marketing 74 CEC I I PM Rural-specific Pricing Strategies Low- Price Points Low-Cost Packaging Refillable/Reusable Packs Highlight Value, Not Price Coinage Pricing Product Sharing Services 8/21/2014 Rural & Social Marketing 75 CEC I I PM Rural Distribution Channel Distribution is the most important variable in the marketing plans of most consumer goods manufacturers in the country because managing such a massive sales & distribution network is a huge task. It is estimated that there are over 18 million market intermediaries-wholesalers, stockists, transporters & retailers- involved in the distribution of a variety of consumer goods all over the country. 8/21/2014 Rural & Social Marketing 76 CEC I I PM Challenges in Rural Distribution Large number of small markets Dispersed population and trade Poor road connectivity Low density of shops per village Inadequate bank & credit facilities to rural retailers Poor storage system Highly Credit driven market Poor visibility of product in rural shelves Inadequate power supply Poor communication of offers & schemes
8/21/2014 Rural & Social Marketing 77 CEC I I PM Rural distribution Channels Level 1 Company depots/CFAs/Super stockists Level 2 CFAs/Redistribution stockists/ Retailers (Modern/Traditional) Level 3 Redistributions stockists/Semi-wholesalers/Retailers Level 4 Semi-wholesalers/Retailers/Mobile traders in haat/van Level 5 Retailers/ Vans/Barefoot agents (Shakti dealer)/Cooperative societies/Government agencies (Fair-Price shops) 8/21/2014 Rural & Social Marketing 78 CEC I I PM Rural Channel Members CFAs: First link with company depot Redistribution Stockists: Critical link b/w a co. & its rural channels Wholesalers: One of the oldest channel members servicing rural markets, continue to control half the rural supplies Retailers: They are the last link in the distribution chain and the first interface for rural consumers. They procure stocks from wholesalers & in a few cases supplies reach them from stockists. 8/21/2014 Rural & Social Marketing 79 CEC I I PM The Rural Retail Environment The Rural Retail spread Retail Premises The Rural Retail Shelf Stock Turnover Rural Retail Habits 8/21/2014 Rural & Social Marketing 80 CEC I I PM The Rural Retail Spread The no. of retail outlets in rural areas has more than doubled in the last decade. Rural retail is growing rapidly & is projected to dominate the retail industry landscape in India by 2012, with a total market share of above 50 per cent. 8/21/2014 Rural & Social Marketing 81 CEC I I PM Retail Premises With rising rural incomes & consumption, the rural marketplace is also changing fast in terms of shop size, category of outlet, product categories and brands stocked. The average size of rural outlets has increased to 140 sq. feet, with the maximum growth witnessed among medium among medium & large sized shops in the last decade. 8/21/2014 Rural & Social Marketing 82 CEC I I PM The Rural Retail Shelf The grocery & paan plus plus shops are present in all categories of villages, & primarily sell consumer products like soap, washing powder, & tobacco products. 8/21/2014 Rural & Social Marketing 83 CEC I I PM Modern Retail in Rural Areas ITC Choupal Saagar DSCL Hariyali Kisaan Bazaar Tata Kisan Sansar 3A Bazaar 8/21/2014 Rural & Social Marketing 84 CEC I I PM Channel Behaviour in Rural Areas Sourcing of stocks & purchase cycle Stocking Behaviour and Seasonality Credit Patterns Transfer of Capital Pricing by Channel Channel Promotion Retailer-Consumer Dynamics
8/21/2014 Rural & Social Marketing 85 CEC I I PM Distribution Models in Rural Markets DM-1 Company Distributors (Rural) Sub Distributors Retailers (Rural) Retailers (Local) Wholesalers Retailer (Satellite markets) C&FA Distributors (Urban) Wholesalers Retailers (Urban) Retailers(Urban) 8/21/2014 Rural & Social Marketing 86 CEC I I PM DM-2 Company C&FA (Depot) Distributors Wholesalers Retailers (Local) Retailers 8/21/2014 Rural & Social Marketing 87 CEC I I PM Rural-Centric Distribution Model Haats/Shandies Profile of Outlets and Product Sold Corporate Presence in Haats Haat Sellers: As Point of Sales and Distribution Implication for Marketers Modern Distribution Channel The SHG Model The Youth Entrepreneurship Model Vans
8/21/2014 Rural & Social Marketing 88 CEC I I PM Contd. The Public Distribution Model Cooperative Societies Non-government Organizations Petrol Pumps & Extension Counters Rural Mobile Traders: Last Mile Distribution
8/21/2014 Rural & Social Marketing 89 CEC I I PM Rural Logistics The Hub & Spoke System System of connections like a chariot wheel, in which all the traffic moves along the spokes connected to the hub at the centre. Also known as satellite distribution concept. Syndicated Distribution Under this approach 2 or more companies come together to form a syndicated trading organization, to jointly distribute a collective group of household products in rural markets by sharing distribution costs.
8/21/2014 Rural & Social Marketing 90 CEC I I PM The Communication Process . 8/21/2014 Rural & Social Marketing 91 Sender Encoding Message Decoding Receiver Media Noise Feedback Response CEC I I PM Challenges in Rural Communication Low Literacy levels Poor Media Reach & Exposure Vast, heterogeneous & diverse rural audiences 8/21/2014 Rural & Social Marketing 92 CEC I I PM Developing Effective Rural Communication Identifying and Profiling the target audience Determining communication objectives Designing the message Selecting the communication channels Budgeting for rural communication Designing the communication mix strategy Measuring the impact of communication 8/21/2014 Rural & Social Marketing 93 CEC I I PM Communication Mix Strategy Advertising Sales Promotion Direct Marketing Publicity & Image Building Personal Selling
8/21/2014 Rural & Social Marketing 94 CEC I I PM The Communication Mix Decision Type of Product Market Buyer Readiness Stage Product Lifecycle Stage 8/21/2014 Rural & Social Marketing 95 CEC I I PM Rural Media . 8/21/2014 Rural & Social Marketing 96 Conventional Media Mass media (Radio, T.V., Press/Print, Cinema) Outdoor media (Wall Paintings, Hoardings) Personalized media (POP, demonstrations, danglers, display racks Non-conventional Media Video Van/Video Haats, Melas,Mandies Folk media (folk theatre, folk songs, folk dance, magic shows, puppet shows) CEC I I PM Sales Promotion Discounts Coupons Sampling Installment Demonstration, Experiential Marketing
8/21/2014 Rural & Social Marketing 97 CEC I I PM Events and Experience Sports Events Rural Brand Experience Extravaganza Channel Partner Meets Key Opinion leader meets (mason, mechanic, carpenter, painter) 8/21/2014 Rural & Social Marketing 98 CEC I I PM Various organisations in V&C Industries Khadi and Village Industries Commission (KVIC) All India Handloom Board Central Silk Board All India Handicrafts Board and Coir Board National Small Industries Corporation Forest Corporations 8/21/2014 Rural & Social Marketing 99 CEC I I PM Significance of Village Industries Provides subsidiary occupation to rural population Acts as a source of income generation Provides employment throughout the year Develops rural talents Reduces migration of rural people to urban areas
8/21/2014 Rural & Social Marketing 100 CEC I I PM Functions of KVIC Training of artisans Procurement & supply of raw materials Encouraging technical research in the tools Upgrading technology employed in production of KVIC Assisting in marketing of village industries articles Export marketing whenever possible 8/21/2014 Rural & Social Marketing 101 CEC I I PM Classification of KVIC Industries 8/21/2014 Rural & Social Marketing 102 Agrobased Processing of cereals, pulses, spices, condiments etc. Wood related Carpentry, match industry, bamboo & cane work, agarbathties, hand made paper, photo framing Textiles Handlooms, Khadi, manufacture of Poly Vastra hosieries Chemicals Inks, dyes, gums, resins, manufacture of shellac, fire works, non-edible oils, and soaps, candle & wax making Metal Wares Aluminium vessels, brass wares, black smithy, pins & clips Miscellaneo us Pickles, lime, bee keeping, biogas, forest produce processing, leaf cup making, stone cutting, village leather CEC I I PM Handloom Industry The Handloom sector in India exemplifies the richness and artistry of the weavers. It is one of the largest economic activity, providing employment to over 6.5 million persons, engaged in weaving & allied activities 8/21/2014 Rural & Social Marketing 103 CEC I I PM Handloom Board To advise the Government on the development of the handloom industry, the All India. Handloom Board was set up in October 1952 under the Chairmanship of the Textile Commissioner. The Board helped in devising a variety of measures for rehabilitating and developing the handloom industry. 8/21/2014 Rural & Social Marketing 104 CEC I I PM Marketing of Handloom Sector National Handloom Expos District Levels Events Crafts Melas like PRIYADARSHINI of Karnataka, CO-OPTEX of Tamilnadu, APCO FABRICS of Andhra Pradesh, WEAVER of Haryana & others
8/21/2014 Rural & Social Marketing 105 CEC I I PM HANDICRAFTS Handicrafts embody the traditional skills of artisans who have variety of materials-wood, metal, clay, cloth etc. to produce consumer articles as well as decorative or artistic products. 8/21/2014 Rural & Social Marketing 106 CEC I I PM Handicraft Board The functions of the Board cover aspects like technical development, marketing, organizational development, and assisting State Governments in preparing developmental schemes. The Board is headed by a Development Commissioner and is under the Ministry of commerce 8/21/2014 Rural & Social Marketing 107 CEC I I PM Functions of Handicrafts- Development Commissioner Training and upgradation of skills Assisting in Design and Technical development Assisting in Design & product development Marketing of Handicrafts Financial assistance for setting up new emporia Publicity Exhibition Exports 8/21/2014 Rural & Social Marketing 108 CEC I I PM SERICULTURE India is the second largest producer of silk in the world. The 4 major varieties of silk are Mulberry (92%), eri (6%), tasar (1.5%) & Muga (.5%). It has provided employment to about 6.5 million people in the rural and semi- urban areas. 8/21/2014 Rural & Social Marketing 109 CEC I I PM Central Silk Board Research and Technology Development Seed Maintenance Development of Sericulture & Silk Industry 8/21/2014 Rural & Social Marketing 110 CEC I I PM 8/21/2014 Rural & Social Marketing 111 CEC I I PM 8/21/2014 Rural & Social Marketing 112 THANK YOU !