RURAL PRODUCTS THE OF RURAL MARKET

1. PRESENTED BY BIRENDRA BHAGAT C-08-55 SECTION-II RURAL PRODUCTS ‘THE HEART OF RURAL MARKETS’

4. Classification Of Rural Products FMCG (HLL, Dabur, Marico, Colgate=Palmolive Coke, Pepsi) Consumer Durables TV ,Fridge, Fan, Presssure Cooker, Cycle, Two wheelers, Sewing machines, watch, mixer grinder, radio, music system, Fans, Washing machines (Philips, LG, Videocon, Onida ) Services Telecom, Banking, Health care ,Insurance (Airtel, BSNL, SBI, PNB,Dena bank,) Agri-inputs Seeds, pesticides, tractors (Rallis India, Bayer,) Product Life Cycle (PLC) Launch Take Off Maturity Decline

7. Cont’d

8. CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT Product Levels

9. Cont’d Product Level Characteristics Example Rural Vs Urban Core Benefit Fundamental benefit/ services Entertainment Same Basic Product Benefit/service into tangibles Television Set Same Expected Product Attributes & conditions buyers normally expect Digital sound, flat screen Appearance of differences in expectations Augmented Product Exceeding customer expectations Battery Operated TV Pleasant surprise for rural customer Potential Product Encompassing all augmentations & transformations Jolly Startek TV Uniquely rural value proposition

11. Need-Product Relationships and the changes happening in Rural India Needs Old Products New Products BRUSHING TEETH Neem sticks, Charcoal, Rocksalt, Husk Toothpaste, tooth powder WASHING VESSELS Coconut fiber, Earthy materials, Brick Powder, Ash Washing Powders, soaps and liquids TRANSPORT Bullock Cart, Horses, Donkeys Tractors, LCVs, Mopeds, Scooters, Motor cycles IRRIGATION Wells, Canals, Water lifters, Wind Mills Bore-wells, Motors, Power Generators, Pump Sets HAIR WASH Shikakai powder, Retha, Besan Shampoos and hair care soaps

12. FMCG Consumption Trends Products Urban( 1000 HH) Rural ( 1000 HH) Toilet Soap 998 992 Washing Cake 980 950 Cooking Oil 968 952 Hair Oil/ Cream 897 787 Tea 876 758 Toothpaste 822 449 Washing Powder 819 576 Electric Bulb 723 394 Shampoo 663 352 Biscuits 579 314 Health Beverages 324 67 Source: National Council for Applied Economic Research, 2005

19. Fakes: Some Examples

20. Cont’d

21. Pricing

25. RURAL DISTRIBUTION Physical Distribution Channel of Distribution Transportation Warehousing Communication PHYSICAL DISTRIBUTION Transportation Railways, Roads ,Waterways, Animals Communication ITC using internet, Mobile users by fisherman Warehousing (Three Tier Rural Warehousing Set Up) Central/State Warehousing Cooperatives Rural Godowns

26. Levels of Distribution Level Partner Location 1 Company Depot/ C & FA National/ State level 2 Distributor/ Van Operator/ Super Stockist/ Rural Distributor District level 3 Sub Distributor/ retail Stockist/ sub stockist/star seller Tehsil HQ, towns and large villages 4 Wholesaler Feeder towns, large villages, haats 5 Retailer Villages, haats

29. Media Vehicles Mass Media Local Media Personalized Media Radio Haats, Melas, Fairs Direct Communication Cinema Wall Paintings Dealers Press Hoardings Sales Persons TV Leaflets Video Vans Folk Media Animal Parade Transit Media Researchers