Submitted To: Prof. Shibashish Chakraborty.
Prepared By: Niraj Agarwal Section-D Enrollment No: 08BS0002006
TABLE OF CONTENTS
Acknowledgement Introduction What makes Rural India attractive? Marketing Strategies for Rural India ITC – Rural Marketing Strategy Conclusion References 2 4 5 6-9 10-13 14 15
This project could not have been completed without Prof. Shibashish Chakraborty who not only taught us Marketing Management-II but also encouraged and motivated us to do challenging projects. I am grateful towards him for giving us such a knowledge enhancing project. I thank him for explaining the concepts so nicely that we could apply the same in a practical project easily.
In recent years, rural markets of India have acquired significance, as the overall growth of the Indian economy has resulted into substantial increase in the purchasing power of the rural communities. On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has emerged. But often, rural marketing is confused with agricultural marketing - the latter denotes marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers.
WHAT MAKES RURAL INDIA ATTRACTIVE?
It is an upcoming market and the following facts substantiate this⎫ 800 million people ⎫ Estimated annual size of the rural market • • • • FMCG Rs 65,000 Crore Durables Rs 5,000 Crore Agri-inputs (incl. tractors) Rs 45,000 Crore 2 / 4 wheeler vehicles Rs 8,000 Crore
⎫ In 2001-02, LIC sold 55 % of its policies in rural India. ⎫ Of two million BSNL mobile connections, 50% are in small towns/villages. ⎫ Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT) ⎫ 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs 977 billion resulting in tremendous liquidity. ⎫ 42 million rural households are availing banking services in comparison to 27 million urban households. ⎫ Investment in formal savings instruments: 6.6 million households in rural and 6.7 million in urban India. ⎫ Nano-Marketing or sachets worked well in rural India and there is ample scope for the products to be accepted by consumers if the price is competitive.
MARKRTING STRATEGIES TO CAPTURE RURAL INDIA
¬ BY COMMUNICATING AND CHANGING QUALITY PERCEPTION Companies are coming up with new technology and they are properly communicating it to the customer. There is a trade of between Quality a customer perceives and a company wants to communicate. Thus, this positioning of technology is very crucial. The perception of the Indian about the desired product is changing. Now they know the difference between the products and the utilities derived out of it. As a rural Indian customer always wanted value for money with the changed perception, one can notice difference in current market scenario. ¬ BY PROPER COMMUNICATION IN INDIAN LANGUAGE The companies have realized the importance of proper communication in local language for promoting their products. They have started selling the concept of quality with proper communication. Their main focus is to change the Indian customer outlook about quality. With their promotion, rural customer started asking for value for money. ¬ BY TARGET CHANGING PERCEPTION If one go to villages they will see that villagers using Toothpaste, even when they can use Neem or Babool sticks or Gudakhu, villagers are using soaps like Nima rose, Breeze, Cinthol etc. even when they can use locally manufactured very low priced soaps. Villagers are constantly...