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CEC

Rural & Social Marketing


Competitive Edge Consultants


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.


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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.)
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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
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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
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CEC I I PM
Understanding Rural Markets
Understanding Rural Consumers
New Influencers
Products
Rural Distribution
Rural Communication
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Rural & Social Marketing
8
CEC I I PM
The AICDA Model
Awareness
Interest
Conviction
Desire
Action
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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.
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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.
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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.
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Myth 1- Reality
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% 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
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Rural & Social Marketing
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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
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Rural & Social Marketing
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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
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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
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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



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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
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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
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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
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CEC I I PM
The Rural Marketing Mix

Branded consumables &
durables (Organised)

Farm & non-farm
goods & services
(Unorganised sector)

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
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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)


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CEC I I PM
Education in India
.
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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
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CEC I I PM
Contd..
Economic Environment
Changing Rural Consumers Expenditure
Pattern
Saving Pattern
Social & Cultural Environment
Village Community
Caster System
Political Environment




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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

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CEC I I PM
Rural Marketing & the 4Ps
Product
Price
Promotion
Positioning

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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
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CEC I I PM
Contd..
Logistics Problems
Low exposure to Market Stimuli
Less Retail Outlets
Seasonal Demand
Traditional Life

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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

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CEC I I PM
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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
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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

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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.
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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
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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
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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
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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
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CEC I I PM
Prerequisites for Effective
Segmentation
Measurable
Accessible
Differentiable
Subtantial

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CEC I I PM
Degrees of Segmentation
Mass Marketing
Segment Marketing
Niche Marketing
Micro Marketing
Local Marketing
Individual Marketing
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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
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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
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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.
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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

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CEC I I PM
Identifying the Positioning Concept
Product Differentiation
Service Differentiation
People Differentiation
Image Differentiation
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CEC I I PM
Selecting the Positioning Concept
Attractiveness
Distinctiveness
Pre-emptive
Affordability
Communicability
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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
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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.
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Product should be
Appropriate for rural environment
Simple to operate
Visually identifiable
Affordable
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Levels of a Product
Potential product
Augmented product
Expected product
Basic product
Core benefit
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CEC I I PM
Rural Product Classification
Rural Products
FMCGs Durables Services
Agricultural
goods
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Products Decisions & Strategies
Individual product decisions
Product line decisions
Product mix decisions
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Individual Product Decisions
Quality
Features
Design & Style
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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.
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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
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CEC I I PM
Building Brands in Rural
Markets
Developing a Brand Name
Creating a Brand Identity
Building a Brand Name
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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
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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)

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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)
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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
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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
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Contd.
External Factors
Price sensitivity of customers
Channel Costs
Competition
Environment
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CEC I I PM
Price Setting Strategies
Skimming Pricing
Penetration Pricing
Optional-Product Pricing
Captive-Product Pricing
Product Bundle Pricing
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Price Adjustment Strategies
Discounts & Allowance Pricing
Freebies
Special-Event Pricing
Economy Pricing
Value Pricing
Psychological Pricing
Discriminatory Pricing
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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
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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.
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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

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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)
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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.
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The Rural Retail Environment
The Rural Retail spread
Retail Premises
The Rural Retail Shelf
Stock Turnover
Rural Retail Habits
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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.
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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.
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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.
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Modern Retail in Rural Areas
ITC Choupal Saagar
DSCL Hariyali Kisaan Bazaar
Tata Kisan Sansar
3A Bazaar
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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

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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)
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DM-2
Company
C&FA
(Depot)
Distributors
Wholesalers
Retailers
(Local)
Retailers
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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


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Contd.
The Public Distribution Model
Cooperative Societies
Non-government Organizations
Petrol Pumps & Extension Counters
Rural Mobile Traders: Last Mile
Distribution


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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.

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The Communication Process
.
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Sender Encoding Message Decoding Receiver
Media
Noise
Feedback Response
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Challenges in Rural Communication
Low Literacy levels
Poor Media Reach & Exposure
Vast, heterogeneous & diverse rural
audiences
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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
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Communication Mix Strategy
Advertising
Sales Promotion
Direct Marketing
Publicity & Image Building
Personal Selling

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The Communication Mix
Decision
Type of Product Market
Buyer Readiness Stage
Product Lifecycle Stage
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Rural Media
.
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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)
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Sales Promotion
Discounts
Coupons
Sampling
Installment
Demonstration, Experiential Marketing

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Events and Experience
Sports Events
Rural Brand Experience Extravaganza
Channel Partner Meets
Key Opinion leader meets (mason,
mechanic, carpenter, painter)
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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
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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

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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
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Classification of KVIC Industries
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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
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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
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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.
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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

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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.
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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
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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
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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.
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Central Silk Board
Research and Technology Development
Seed Maintenance
Development of Sericulture & Silk
Industry
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THANK YOU !

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