1. 10/4/2013
M3 GROUP 7 1

2. 10/4/2013 M3 GROUP 7 2
Presented To-
Mrs.Veena Kumar

3. AJAHAR HITESH
AMRITA
ABHISHEK
JAYATI
HARSHIT
Friday, October 04, 2013
3
Presented By-

4. 10/4/2013 M3 GROUP 7 4
Rural marketing is a function which manages all those activities
involved in assessing Stimulating and converting the purchasing
power into an effective demand for specific Products and
services, and moving them to the people in rural areas to
create satisfaction-and a standard of living to them and thereby
achieves the goals of the organization.

5. Population density > 400 / sq km
75 percent of the male working population is engaged in agriculture
No municipal corporation / board
10/4/2013 M3 GROUP 7 5

6. Rural market is larger than Urban Market in India.
Total size of the Rural Market for FMCG is Rs.41550
as compared to Rs 37130 crores in Urban areas.
10/4/2013 M3 GROUP 7 6

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10. 10/4/2013 M3 GROUP 7 10

11. • Bounded by tradition,
culture, religion &
community
• 60% of rural income is from
Agriculture
• More than 50% rural
households have monthly
income < Rs 25,000
• About 14% have income >
Rs. 50,000
• In recent years, 70% rural
households have started
saving/investing their
income
Position
10/4/2013 M3 GROUP 7 11

12. In India,
total
potential of
3,800 towns
and
6,27,000
villages.
Distribution
network
reached
300,000
villages.
Dilemma was
how to
extend its
network to
the
remaining
villages in
inaccessible
rural areas.
Penetrating
new markets
would be
challenge.
10/4/2013 M3 GROUP 7 12

13. 10/4/2013 M3 GROUP 7 13

14. ( Pre 1960’s )
Marketing
rural
products in
rural areas
Agricultural
inputs in
rural areas
“Agricultural
marketing”
Farming
methods
were
primitive and
mechanizatio
n was low
Markets
unorganized
10/4/2013 M3 GROUP 7 14

15. ( 1960s to 90s)
Green Revolution
Mahindra and Mahindra, Sri
ram fertilizers and IFFCO
emerge rural products were
also marketed through agencies
like KVIC
10/4/2013 M3 GROUP 7 15

16. ( 1990s to Present)
Demand for
consumables and
durables rise in
Rural areas
Companies find growth
in urban markets
stagnating or falling
10/4/2013 M3 GROUP 7 16

17. The large number of consumers
Largely untapped markets
Market size
Potential increase in income
Purchasing power accessibility of markets competition in Urban markets
10/4/2013 M3 GROUP 7 17

18. Innovation
Personal care appliances
Improved marketing strategy
Product dual benefits
Rise in organic products
Teen’s market
10/4/2013 M3 GROUP 7 18

19. 10/4/2013 M3 GROUP 7 19
Brand image
Small unit
packaging's
Low priced
packaging's
New product
designs
Utility oriented
products
Product strategies for Rural Mrkets

20. Availability Affordability
Acceptability Awareness
4 A’s approach of Indian Rural Market
10/4/2013 M3 GROUP 7 20

21. Hindustan Unilever
, has built a strong
distribution system
which helps its
brands reach the
interiors of the
rural market.
Even stockiest
use auto
rickshaws,
bullock-carts
etc.
Availability
10/4/2013 M3 GROUP 7 21

22. Some companies have addressed the affordability
problem by introducing small unit packs.
Most of the shampoos are available in smaller packs.
Fair and lovely was launched in a smaller pack.
Colgate toothpaste launched its smaller packs to cater
to the travelling segment and the rural consumers.
Affordability
10/4/2013 M3 GROUP 7 22

23. Acceptability
LG electronics. In
1998, it developed a
customized TV for the
rural market
It was a runway hit
selling 100,000 sets in
the first year.
Because of the lack of
electricity and
refrigerators in the
rural areas
10/4/2013 M3 GROUP 7 23

24. Coca-Cola uses a
combination of TV,
cinema and radio
to reach 53.6 per
cent of rural
households.
It doubled it’s
spend on
advertising on
doordarshan,
which alone
reached 41 % of
rural households.
It has also used
banners, posters
and tapped all the
local forms of
entertainment.
Awareness
10/4/2013 M3 GROUP 7 24

25. Levels Of distribution channel
Producer
Consumer Segment2
Retailers Retailers
Distributors
Consumer Segment 1 Consumer Segment 3
Zero Level
One Level
Two Level
Distribution channel in Rural area
10/4/2013 M3 GROUP 7 25

26. Special Campaigns
During crop harvest and marketing seasons it is beneficial
to take up special promotion campaigns in rural areas
For example, 3 lakh people visited the annual Mela at
Navchadi for 7 days in Meerut.
The largest such Mela is the Maha Kumbh Mela which is
visited by an average of 12 crores people.
It has been observed that melas are fit to generate
product exposure, package familiarity, brand reminder
and word of mouth.
10/4/2013 M3 GROUP 7 26

27. Uttar
Pradesh
10.380
Bihar
4,993
West Bengal
4078
Jharkhand
3,996
Maharashtra
3758
States with maximum Haats

28. 10/4/2013 M3 GROUP 7 28
58%
21%
7%
5%
5%
4%
Sales
Agriculture product
Manufactured Goods
Processed Goods
Handicrafts
Forest goods
Services
States with maximum Haats

29. 0
10
20
30
40
50
60
70
80
90
100
Brand awareness for specific FMCG products sold at HAATS
Awareness
2910/4/2013 M3 GROUP 7

30. 17%
16%
15%
14%
11%
9%
6%
5% 4% 3%
Groceries
Toilet soaps
Detergents
Tea
Shampoo
Biscuits
Matchbox
Cosmetics
Oral care
Mosquito repellent
10/4/2013 M3 GROUP 7 30
FMCG Products preferred at Haats

31. 10/4/2013 M3 GROUP 7 31
Under developed people
Low levels of literacy
Media for rural communication
Multiplicity languages and dialects
Low per capita income
Logistics storage ,handling and transportation
Problems in Rural Marketing

32. FOOD ITEMS
NON-FOOD
ITEMS
122
68
10/4/2013 M3 GROUP 7 32

33. PRODUCT CATEGORY % SHARE
Radio 80.89
Bicycle 77.83
Wrist watch 75
Fan(table &ceiling) 60
Washing cake 66.88
Cooking oil 65.92
Tea 59.85
Mobile 51.12
Color TV 36.68
10/4/2013 M3 GROUP 7 33

34. 10/4/2013 M3 GROUP 7 34

35. Out of 20
million
rediffmail
signups 60%
are from
small towns.
The 24
million Kisan
credit cards
issued in
rural India.
Out of 2
million
BSNL mobile
connection
, 50% are in
rural India.
In 2008-11
LIC sold 65%
of its
policies in
rural India.
10/4/2013 M3 GROUP 7 35

36. 10/4/2013 M3 GROUP 7 36

37. Rural population is about 73% of the total population of India
2011 census the total rural population amounts to 80 Crore
12 Crore households – 70% of the total
Urban Population is spread over 3,200 cities
Rural population is spread across 6,27,000 villages
10/4/2013 M3 GROUP 7 37

38. Rural India has a
literacy rate of 28%
compared to 55% of
the whole country
There has been a
change
• Increase in Income
• Growth in Education
• Greater Media
Penetration
• Marketers efforts to
reach and capture
the rural market’s
LiteracyLevel
Lifestyle
10/4/2013 M3 GROUP 7 38

39. Customer
mindset:
low credibility
among rural
customers
rampant
availability of
fake ,look alike
products
FMCG sector
loss of 18
billion each
year due to
fake products
The range
available at the
local retail
stores is also
low because
people go to
towns.
10/4/2013 M3 GROUP 7 39

40. Rural Demand is growing rapidly
Purchasing power has increased
Cut Throat competition in the Urban Markets
Rural market is largely unexplored and untapped
There would be opportunities for new entrants as
compared to urban population
10/4/2013 M3 GROUP 7 40

41. COMPANY Rural Sales (% of total)
HUL 50
Colgate 50
Godrej 30
Cavinkare 33
Marico 25
Cadbury 25
Cipla 18
10/4/2013 M3 GROUP 7 41

42. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
grocery apparel durables farm input
own village shop
mandi
nearby village
city/urban market
haat mela
10/4/2013 M3 GROUP 7 42

43. 10/4/2013 M3 GROUP 7 43

44. Establishment in 1929
1st brand Parle glucose and Parle Monaco
35% share of total biscuit market
15% share of the total confectionery market
70% share in glucose biscuit
Parle has largest such manufacturing units in India
Size of the biscuit industry Rs 8,000 crore
Company Profile of Parle G
47
10/4/2013 M3 GROUP 7

45. One of the
first food
offered to
kids
Nutritional
value
It assumed
as sick
man’s diet
in earlier
days.
one of the
most loved
fast food for
every age
group
Biscuit’s are
easy to carry
, tasty to eat
, cholesterol
free and are
reasonably
priced .
The Biscuit Industry
10/4/2013 M3 GROUP 7 46

46. 10/4/2013 M3 GROUP 7 47
30%
70%
Un - organized sector Organized sectors
Biscuit Industry Profile

47. 10/4/2013 M3 GROUP 7 48
0
2
4
6
8
10
12
14
16
18
2007-08 2008-09 2009-10 2010-11
Chart Title
Annual Production of Biscuit in India

48. Rural
market –
70%-85%
Urban
market-
50%-65%
India –
1.8 Kg
/capita
South-east
Asian
countries –
2.5 kg – 5.5
kg
USA –
7.5kg/capit
a
Rural-Urban Penetration of Biscuits
10/4/2013 M3 GROUP 7 49

49. 10/4/2013 M3 GROUP 7 50
Biscuits for kids
Biscuit
with tea
Biscuit for guest
Mini
breakfast
Snacking Habits in Rural India

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52. 10/4/2013 M3 GROUP 7 53
Britannia
Tiger and
sun feast
Locally
manufactured
biscuits
Unpacked
baked items
(e.g – khari
, and rusk
Freshly fried
item (eg: Vada
pao , bhaji
, samosa)
Competitors of Parle G

53. 10/4/2013 M3 GROUP 7 54

54. 10/4/2013 M3 GROUP 7 55
Strength of market , size
of market
Income in rural India
have improved
dramatically
The rural markets are
growing at about two
time faster pace then
urban
Reasons for opting Rural Market

55. 10/4/2013 M3 GROUP 7 56

56. 10/4/2013 M3 GROUP 7 57
Rural marketing
Marketing
Strategy
Personal
Selling
Direct
selling
Distribution
strategies
Feeder
Town
Promotion
Strategies
Near
market
Familiar
shows
All
media
Marketing Strategy of Parle G

57. 10/4/2013 M3 GROUP 7 58
SWOT Analysis of Parle G

58. 10/4/2013 M3 GROUP 7 59
Parle Brand
Product Range
Distribution
Network
Strengths

59. 10/4/2013 M3 GROUP 7 60
Dependence
on retailers
Dependence
on Parle –G
(flagship
brand)
Stores for
displaying
diversified
Parle
Weakness

60. 10/4/2013 M3 GROUP 7 61
Estimated
annual
growth of
20%
Increasing
demand for
sugar free
Using
advertising
aggressivel
y
Opportunities

61. 10/4/2013 M3 GROUP 7 62
Increasing
distribution
cost
Local
bakery
products
Entry of
various
new
entrants
ITC etc. .
Threats

62. 10/4/2013 M3 GROUP 7 63

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68. 10/4/2013 M3 GROUP 7 69

69. Vodafone came to India in 2005
Vodafone was officially launch on 27th september 2007 in Mumbai
Owned : Vodafone and Essar
Market Position : At the 3rd position
Connectivity : Presence in 16 telecom sectors
Call Rates : very cheaper
10/4/2013 M3 GROUP 7 70
Company Profile

70. Mission capturing the
potential of mobile to
bring socio-economic
10/4/2013 M3 GROUP 7 71
Vision To be one of
the most trusted
companies in the
markets

71. Passion for
customers
Passion for
their people
Passion for
results
Passion for the
world around
them
10/4/2013 M3 GROUP 7 72
Beliefs and Values

72. 10/4/2013 M3 GROUP 7 73
Total number of Vodafone Essar
Subscribers : 14,15,19,840 i.e. 23.63% of
total 59,87,79,674 Indian mobile phone
users
Subscribers of Vodafone

73. 10/4/2013 M3 GROUP 7 74
Competitors

74. 10/4/2013 M3 GROUP 7 75

75. Laal dukaans (red shop)
Project pappu
‘Gappa Goshti’ scheme
Vayalum vaazhvum (chennai)
Mobile Banking (with HDFC bank)
Initiatives in Rural India
10/4/2013 M3 GROUP 7 76

76. 10/4/2013 M3 GROUP 7 77
HDFC
Bank, Vodafone
India launch
mobile banking
product for rural
coverage
(Jaipur)
Vodafone ties
up with Handy
go to launch IVR
service for rural
India
Vodafone has
tied up with
mobile VAS
company
Handygo
Technologies
To launch IVR
based service
called “Behtar
Zindagi for rural
India.”
Contd…

77. 10/4/2013 M3 GROUP 7 78
Vodafone Airtel
Tata
Docomo
Reliance Idea Cellular
Experience
stores
Mini stores
465 681 348 217 369
(Urban and
rural)
7125 1151 2497 1827 1105
Total 7590 1832 2845 2044 1474
Source: Vodafone
Project Pappu’s Retail Footprint

78. 10/4/2013 M3 GROUP 7 79
Displays board
Schemes to
distributors & retailers
(commission & gifts on
achieving target sales)
Tie up with local
panchayat & use flash
mobs (street play) on
the theme of Vodafone
message
Sales Promotion in Rural

79. 38%
62%
Rural
Urban
Market Share of Vodafone
10/4/2013 M3 GROUP 7 80

80. 10/4/2013 M3 GROUP 7 81
SWOT Analysis of Vodafone

81. 10/4/2013 M3 GROUP 7 82
Popular
cellular
service
provider
in India
Largest
Telecom
operator in
the world
High brand
visibility
Strong
advertising
with ZooZoo
concept
Strengths

82. Price competition
from BSNL and Airtel
Untapped Rural
Market
Weaknesses
10/4/2013 M3 GROUP 7 83

83. Fast expanding
cellular
market
Latest and low
cost
technology
Research
and
development
of new
mobile
technologies
Opportunities
10/4/2013 M3 GROUP 7 84

84. New entrant's
low price
offering
Saturation
point in Basic
telephony
service
Mobile
Number
Portability
Threats
10/4/2013 M3 GROUP 7 85

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M3 GROUP 7
90
Few
Companies
Taking
Initiatives

90. 10/4/2013 M3 GROUP 7 91
Hindustan liver Limited is on the top with its
successful rural marketing projects like ‘Project
Shakti' and 'Operation Bharat'.

91. 10/4/2013 M3 GROUP 7 92

92. Coca cola invested us$ 1 billion 27 owned & 17 franchise
operations using celebrities 30% revenue from rural sector
“ Thanda…” campaign different promotion in south
10/4/2013 M3 GROUP 7 93

93. 10/4/2013 M3 GROUP 7 94

94. Dabur In villages promote its hair oil as a
substitute for mustard oil which village folks
generally used. In rural UP & Bihar
10/4/2013 M3 GROUP 7 95

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96. Sonata launched project Swades, aimed at
changing people's mindsets and making them
aware of the value of time in rural India
10/4/2013 M3 GROUP 7 97

97. 10/4/2013 M3 GROUP 7 98

98. Medimix focused brand-building initiatives—like
participation at community events such as “melas” (village
fairs),“haats” (markets), street theater, van campaigns, and
puppet shows
10/4/2013 M3 GROUP 7 99

99. 10/4/2013 M3 GROUP 7 100

100. Tata salt story begins in 1983“Namak ho Tata Ka , Tata
Namak”15% spends on promotion
2004,“deshkanamak”television wall painting calendar in rural
area
10/4/2013 M3 GROUP 7 101

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102. Colgate incorporated in 1937 ,enjoys 50% market share
“Colgate fresh energy gel” use of mass media opinion leader
strong distribution network
In rural area
10/4/2013 M3 GROUP 7 103

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Nokia

106. References
 www.rmai.com
 www.tata.com/company/Articles
 www.financialexpress.com/news/rural
 www.colgate.co.in
 www.dabur.com
 www.cholayil.com
 www.trai.co.in
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