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1.RURAL MARKETING SCENARIO 2. COMPOSITION OF CONSUMER GOODS 3. RELEVENCE OF PRODUCT, PRICE, PLACE AND PROMOTION IN RURAL MARKET 4. THE ROLE OF ADVERTISING.

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Presentation on theme: "1.RURAL MARKETING SCENARIO 2. COMPOSITION OF CONSUMER GOODS 3. RELEVENCE OF PRODUCT, PRICE, PLACE AND PROMOTION IN RURAL MARKET 4. THE ROLE OF ADVERTISING."— Presentation transcript:

1 1.RURAL MARKETING SCENARIO 2. COMPOSITION OF CONSUMER GOODS 3. RELEVENCE OF PRODUCT, PRICE, PLACE AND PROMOTION IN RURAL MARKET 4. THE ROLE OF ADVERTISING

2 India with population of above 200 million is the words second largest fast growing market. India s growing market is not only by virtue of its population but also on account of Unsatisfied demand for consumer product Rising income Changing attitudes & life styles The communication revolution

3 Two sides of rural markets Immense opportunities Intimidating challenges

4 Now rural consumers constitute a big potential market for consumer goods. The investment pattern is changing from buying gold to buying tractors, implements & pump sets. The rich farmers buy all possible modern amenities. With the speed of literacy, more schools & more rural people getting educated & the usage of consumer goods is bound to increase

5 1. RURAL INCOME 2. EDUCATION 3. LACK OF SAVINGS HABIT 4. IRREGULAR DEMAND

6 Consumer goods are divided as durable goods and non durable goods. Durable goods –Bicycles, electric iron, Table, chairs, fans Cookers, Stove, Grinders Refrigerators, Washing machines, TV, Harvesters, Pump sets, 4 wheelers etc

7 Non durable goods – Washing powders, bath soaps, Shampoo, shaving creams, Tea, coffee Face powder, Bindi, Cosmetics, Comb, Bangles, Nail polish paper, magazines, Dress materials, Bulbs medicines, tooth brush etc

8 CategoryEstimated annual size(Rs crore) FMCG65000 FMCD5000 Agri inputs /4 wheelers8000 Total123000

9 STP+ 4PS=MARKETING STRATEGY S- SEGMENTATION T-TARGETING P- POSITIONING P- PRODUCT P-PRICE P-PLACE P-PROMOTION

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11 PRODUCT-----Product design, features, brand name, models, styles, appearance Product quality Warranty Package: design, material, size, labeling etc. PLACE Cannels of distribution: Design, location of intermediaries, location of outlets, Channel remuneration, Dealer- principal relations etc

12 Physical distribution : Transportations, warehousing, Order processing etc PRICE Pricing policies, margins, discounts, & rebates. 2. Terms of delivery, payment terms, credit terms purchase facilities, resale pricemaintenance

13 PROMOTION Personal selling: selling expertise, Size & quality of sales force, etc. 2. Advertising: Media mix, vehicles, programmes. 3. Sales promotion: Gifts, price offs, coupons, contests, prizes etc 4. Publicity & public relation

14 Smaller packages, low value goods Change the product attributes Modernize & redesign the products to satisfy rural buyers Economy products Keep adequate stocks

15 Sell at lower price or at same price as in the urban market Reduce price by modifying attributes like package, size, packing etc. Ensure loyalty of consumers Work on minimum possible profit margin.

16 Product should made available at convenient places. Hawker method is preferred in absence of agents to sell daily to rural people. The bigger companies can arrange for better sales distribution in the rural sector

17 It is a backup function for sales force. Promotion strategy consists of advertising, sales promotion, public relation, publicity& personal selling. One of the very popular schemes in the rural areas is buy 2 soap cakes & get one free

18 INTRODUCTION OPENION LEADERS LANGUAGE ADVERTISING A NECESSITY

19 Mass media gap in India is as conspicuous as the income gap Extra basic infrastructure Is needed to reach mass population. Press, cinema, demonstration vans, puppet shows & theaters may be used to convey product massage persuasion by the opinion makers also counts

20 Word of mouth is a powerful medium. Panchayats can be a useful instruments of mass changes in consumer habits Opinion leaders generate confidence in the slower & later adopters. There is a need to advertise in local languages

21 Advertising not necessarily creates demand for products in rural market. Other factors like environmental conditions, price cuts, quality changes, raising income also creates demand. There is a need to divert some resources from advertising to market research. Our rural marketers should keep an eye on import substitution & upgrade raw materials on the basis of research.

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