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Rural Marketing

Rural Marketing. Why Rural Marketing is hot?. Rural Push Policy of UPA Government Four Consecutive years of positive growth in rural GDP 40% hike in MSP of Crops over last two years Farm Loan Waiver & NREGS Growing Industry Demand for land (Overnight Wealth)

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Rural Marketing

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  1. Rural Marketing

  2. Why Rural Marketing is hot? • Rural Push Policy of UPA Government • Four Consecutive years of positive growth in rural GDP • 40% hike in MSP of Crops over last two years • Farm Loan Waiver & NREGS • Growing Industry Demand for land (Overnight Wealth) • Big rise in remittances from Cities • Slowing urban demand forcing corporates to rural markets

  3. 51% Rs. 13,65,000 Crore 49% Rs 13,17,018 Crore % Annual Change in Rural GDP

  4. Why Rural Marketing is a New Discipline? Rural Marketing is a new discipline because:- • India is a predominantly agrarian society. • Western Marketing has no experience to manage it. • Urban markets are saturating in India. • There are immense opportunities at the bottom of the pyramid. • R. M. can change rural business. • Retail boom will also expedite the growth of rural marketing.

  5. What is Rural?

  6. What is Rural Marketing? • According to the National Commission on Agriculture: ‘Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and it involves all the aspects of market structure or system, both functional and institutional, abase on technical and economic considerations and includes pre and post harvest operations, assembling, grading, storage, transportation and distributions’. • “Rural Marketing can be defined as a function that manages all activities involved in assessing, stimulating, and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.” -Pradeep Kashyap

  7. Urban Brand Consumables and durables (Organised) Rural Farm & Non-Farm and services (Unorganised Sector) Handicrafts, Handloom Textiles, Leather products (Semi-organised) Scope of Rural Marketing The Rural Marketing Matrix (Market) Rural Urban (Production)

  8. Evolution of Rural Marketing

  9. Nature of Rural Marketing (Transactional Vs Development Marketing)

  10. Taxonomy of Rural Markets(Classification of Rural Markets)

  11. Whether Rural Markets are Attractive? • Large population • Rising prosperity • Growth in consumption • Life-style changes • Life-cycle advantages • Market growth rates higher than Urban • Rural marketing is not expensive • Remoteness is no longer a problem.

  12. Rural Vs Urban Marketing Contd.

  13. Rural Vs Urban Marketing – Contd.

  14. HOW TO ADD VALUE THROUGH RURAL MARKETING Identify unique characteristics of rural customer Study demographic patterns Study product ownership patterns Segment rural customers Provide functional benefits Build special brands for rural customers Communicate unique proposition Are the clusters large enough? Ensure increase in customer value Are relevant needs being met? No No No Yes Value Added Rural Marketing

  15. SESSION II Rural Marketing Environment & Rural Economy

  16. Structure of Rural MarketsDemographic Environment

  17. Education and the Level of Demand

  18. Household PatternFamily Structure

  19. Rural Housing Pattern

  20. Occupational Pattern

  21. Physical EnvironmentRural and Urban Life: Distinguishing Features

  22. Settlements (Scattered and Clustered)

  23. Economic Environment

  24. Changing Rural Consumers Expenditure Pattern

  25. Technological Environment

  26. Size of Rural Market

  27. II-The Rural Economy:

  28. The Economic Scenario in Rural India The HDI is a composite of variables capturing attainments in three dimensions of human development, viz., economic, educational and health.

  29. The Changing Face of Rural Development

  30. The Development Exercise: The Five-Year Plans

  31. 1. Food grain crops 2. On-land activities 3. Farm activities 1. Non-food grain crops, cash crops 2. Off-land allied activities like livestock and fisheries 3. Non-farm activities, including manufacturing and services. Transition of the Rural Economy

  32. Rural Economy Farm Sector (Agri & Allied) Non-Farm Sector (Formal & Informal Sector) Agriculture Rural Industries Rural Services Animal Husbandry (Dairy, Goat, Poultry) Agro Processing (Sugarcane, Oilseed etc) Retailing & Trading Horticulture Manufacturing (Handloom, Handicrafts etc) Community & Social Service Forestry Mining & Quarrying Transport & Storage Fishing Construction Communication The Rural Economic Structure

  33. Income Disparity

  34. The Rural InfrastructureRoad Connectivity

  35. Telephone Services

  36. Why Agriculture Growth has been slow & tardy? • Low priority to Agriculture • Subsistence Orientation of Agriculture • Failure of Land Reforms • Low size of operational Landholdings • Inadequate Food Supplies • Sluggish Infrastructural Growth • Disconnect between Research & Farmers • Insufficient Availability of Credit • Inadequate Inputs • Slowdown of Rural Industrialization

  37. Policy Interventions Required • Thrust on Land Reforms • Strengthening the Panchayati Raj Institutions • Financial Inclusion (Innovative Credit Delivery) • Development of Rural Infrastructure • Expansion of Kisan Credit Card Scheme • Protection of Farmers from natural calamities • Extensive use of ICT • Higher Investment in Agriculture & Rural Development. • Focus on High Value Crops & Non-farm Incomes. • Bridging the Gap Between Agri-Research & Farming.

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