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RURAL MARKETING IN INDIA INTRODUCTION TO RURAL MARKETING

Rural marketing is a process of developing, pricing, promoting, distributing ruralspecific goods and services leading to exchange between urban and rural markets which specifies consumer demand and also achieves organizational objectives. Rural marketing involves a two-way marketing process, however, the prevailing flow of goods and services from rural to rural areas cannot be undervalued. Since demands of urban and rural folks are different, companies should manufacture products to suit the rural demand rather than dump urban products on rural consumers. The process should be able to straddle the attitudinal and socio-economic disparity between the urban and rural consumers. Definitions:According to National Commission on Agriculture Rural marketing is a process which starts with a decision to produce a salable farm commodity and it involves all the aspects of market system, and includes pre and post harvest operations i.e. assembling, grading, storage, transportation and distribution. Rural Marketing is defined as any marketing activity in which one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas. Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. The concept of rural marketing in Indian economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural market in India brings in bigger revenues in the country, as the rural regions comprise of the maximum consumers in this country. Rural marketing in Indian economy can be classified under two broad categories. These are:

RURAL MARKETING IN INDIA


1. The market for consumer goods that comprise of both durable and non-durable goods 2. The market for agricultural inputs that include fertilizers, pesticides, seeds, and so on. Before gamboling into issues like where the Indian rural market stands and the opportunities for corporate to explore there... let's look at the definition of urban and rural India. The Census defined urban India as - "All the places that fall within the administrative limits of a municipal corporation, municipality, cantonment board etc or have a population of at least 5,000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square kilometre. Rural India, on the other hand, comprises all places that are not urban!

Potential of Rural market in India


Time and again marketing practitioners have waxed eloquent about the potential of the rural market. But when one zeroes in on the companies that focus on the rural market, a mere handful names come to mind. Hindustan Lever Limited (HLL) is top of the mind with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'. The lynchpin of HLL's strategy has been to focus on penetrating the market down the line and focusing on price point. Furthermore, activating the brand in the rural market through activities, which are in line with the brand itself, is what sums up HLL's agenda as far as the rural market is concerned informs Mindshare Fulcrum general manager R Gowthaman. Amul is another case in point of aggressive rural marketing. Some of the other corporate that are slowly making headway in this area are Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation, Calvin Kare, Britannia and Hero Honda to name a few.

The rural market in India is much larger than the urban market in terms of population and no of households. The rural market consists of more than 100 million households with a total population of about 740 million. In spite of being larger in size, rural areas are characterized by low per capita income, low literacy, average agricultural productivity, and low level of industrialization. These characteristics of rural India have resulted in limited capacity for consumption of goods and services when compared to 2

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consumption levels in any advanced country. Till recently, these factors had inhibited the enthusiasm of marketing people to focus their attention on rural areas. However, the scene now has changed considerably due to the rapid progress achieved in areas of agricultural development and allied activities like animal husbandry, sericulture, horticulture, pisciculture, and due to the encouragement given to rural and cottage industries.

The potential for marketing of goods and services in rural areas depends heavily on agriculture, since it is the main occupation here. The market for agricultural inputs like fertilizers, pesticides and insecticides, tractors, lift irrigation equipments, hybrid and highyielding seeds has been expanding over the years in rural areas as Indian farming is fast becoming market-oriented, as opposed to subsistence farming earlier. Indian farmers have been receptive to new technology, which has helped in improving their standard of living. Barring those organizations manufacturing agricultural inputs, the rural market has remained a dark area for many companies manufacturing consumables and consumer durables. Only a few major ones like HLL, the erstwhile Lipton and Brooke Bond, and P & G have been aware of the potential that existed in the rural market and have been operating here for a long time.

Given the impressive development that has taken place in the rural areas under the five year plans and other special programme, the rural market today offers vast untapped potential. Development programms in the field of agricultural and allied activities, health, education, communications, rural electrification and others have improved the levels of general awareness in the rural areas and considerably changed the lifestyles of the rural populace. Some market research agencies forecast that rural demand will outstrip the urban demand in the near future. This has probably already happened in states like Haryana and Punjab.

To successfully exploit the potential offered by the rural market, there is a need to understand the market not just in terms of households and population, but in terms of their occupation pattern, income generation, marketing arrangements for agricultural produce, the process of rural and cottage industrialization, communication facilities, infrastructure development, rural buyer behavior, attitude and belief of rural people and their changing values and aspirations.

RURAL MARKETING IN INDIA Some Unknown Facts About Rural Market in India
1. 742 million people 2. Estimated annual size of the rural market a. FMCG Rs 65,000 million b. Durables Rs 5,000 million c. Agri-inputs (incl. tractors) Rs 45,000 million d. 2 / 4 wheelers Rs 8,000 million e. In 2001-02, LIC sold 55 % of its policies in rural India. f. Of two million BSNL mobile connections, 50% in small towns/villages. g. Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT) h. 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. i. Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site 3. 42 million rural HHs availing banking services in comparison to 27 million urban HHs. 4. Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in urban.

Rural V/S Urban

SR. NO. 1 2

ATTRIBUTE Population Density Occupation

RURAL Low Agriculture

URBAN High Trade, Industry, and

Services. 3 Economy Close and less Open and Monetized.

monetized. 4 5 Infrastructure Attitude to Modernization Poor and Weak. Tradition bound. Abundant and Strong. Ready for adaptation and change. 6 7 Family Structure Joint Nuclear High

Possession of House hold Low assets

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8 9 10 11 12 13 Mobility Literacy Exposure Attitude towards Life Manufacturing Activity Distribution Outlets Low Low Low Fatalistic Low Fewer High High High Scientific High More

1) Demand pattern As the main occupation in the rural areas for maximum population is agriculture and allied activities the work is seasonal in nature the income generation is also seasonal in nature and thus the demand for consumption goods will also be seasonal in nature and thus the marketers will have to promote their goods keeping this in their mind whereas in the urban areas like cities and metropolitans people earn money during the whole year and also spend it in all the seasons. 2) Spread The urban population is concentrated in small areas as compared to rural areas where there is a huge gap between the two houses and also two different villages which can create huge difficulties for the marketers and their distribution networks. Many a times it may not be wise to sell their goods in each and every village as the transportation cost only can negate all the profit margins of the company. 3) Literacy level The literacy levels in the rural areas is very low as compared to the urban areas and thus before selling their goods in the rural areas the marketers have to make sure that the consumers are properly informed about the use, harms and other different facts of using the product which they may be using for the first time. The marketers should also educate the people in the rural areas thus they can be used for doing some positive word of mouth publicity for the company in future. 4) Sources of supply There are not adequate sources of supply available in rural areas for the companies to act upon their customers demand as soon as possible and thus not satisfying them as opposed to in the urban areas where all the sources are adequate and come in action as soon as the order is placed and is completed as soon as possible.

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5) Physical communication facilities. The physical communication systems such as the roads, rails, telecom etc are of very poor quality and not available only in most of the villages which can make it very difficult for the organizations to work in the proper and most optimum manner like they work in the urban sectors where all the physical communication facilities are up to mark and thus they doesnt stop company from providing the best goods and services to their consumers as soon as possible. 6) Product knowledge As the urban people are more literate they understand the things more fast and thus have good knowledge about the changing technology and the new products coming in the market and thus the companies doesnt need to emphasize that much on their marketing efforts as compared to the rural areas where the people are less literate and thus less knowledgeable about the new products coming in the market and thus the marketers need to put in more efforts in educating the people about their new products. 7) Sources of information Urban consumers are equipped with all the possible mass mediums and thus the information or the product knowledge can be spread through any of the mediums whereas there are very limited mediums available in rural areas and thus word of mouth works as the most important medium to spread information in the rural areas. Word of mouth publicity is the medium through which people orally talk about their experiences about the product and positive word of mouth thus can really help the company to sell their products in rural areas in large quantities. 8) After-sales-service Just as the supply of the goods is not timely because of the poor infrastructural facilities after sales service is also affected and not on time in the rural areas as compared to urban areas where it is provided as fast as the original goods itself. 9) Per capita income The per capita income of people in rural India is very low as compared to their urban counterparts and thus this is one of the most important factor which has to be considered by the companies before bringing their products to rural India and it has to clearly evaluate as to the consumers can afford it or not as because if they cant afford it then they are never going to buy it.

RURAL MARKETING IN INDIA Problems in Rural Marketing


While the rural market does offer vast untapped potential, it should be recognized that it is not very easy to operate in this market because of several attendant problems. Rural marketing is time consuming and requires considerable investments in terms of efforts in evolving appropriate strategies to tackle these problems. The major problems faced by manufacturers and marketers in rural areas are as follows:

1) Underdeveloped people and underdeveloped market. The impact of technology has not been felt uniformly throughout the country. In some districts like Punjab and Haryana, a rural consumer may be comparable to his urban counterpart, but there still are large areas and groups of people who have remained untouched by technological breakthroughs. Even today, about 75 districts in the country are drought-prone and no new technology worth the name has percolated to drought proof these districts and increase the standard of living of the people here. Thus, rural markets, by and large, are characterized by underdeveloped people and consequently underdeveloped market. A vast majority of the rural people is traditions bound, fatalistic, are mired in age-old customs, traditions, habits, taboos and practices, and are not financially stable.

2) Lack of proper physical communication facilities Nearly half of the villages in the country do not have all-weather roads. Just getting to these villages physically is highly taxing. Even today, many villages in eastern parts of the country are inaccessible during the monsoons. Hence, the distribution efforts put in by a manufacturer prove expensive and sometimes ineffective. The Pradhan Mantri Gram Sadak Yojana promises to connect all the villages with 500 persons and above in plains and 250 and above in hill areas by all-weather roads by 2007. This should considerably ease the distribution logistics for marketers.

3) Media for rural communication Amongst the mass media, radio was considered to be a potential medium for communication to the rural people in the late 50s or early 60s. The advent and expansion of television network, appears to be offering another potential medium for easy communication with rural masses. Another mass media is cinema. It has also been

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observed that wherever available, cinema-viewing habit in rural areas is fairly satisfactory. Again, statistics indicate that rural areas account for hardly about 3000 to 3500 theatres which are far less than the number of villages. Under such circumstances the company is forced to use its own promotion vans. Companies like HLL, who use such vans, have found it to be very expensive in as much as the per viewer cost is about 10 to 12 times higher in rural areas as compared to per viewer cost in urban areas. In addition, due to the bad roads in rural areas, the wear and tear on such promotion vans and their costly equipment is also high.

4) Vastness and uneven spread The no of villages in India is more than 5 lakh. Again, the villages are not uniform in size. Nearly 67 % of the villages have only a population of less than 500 persons, which accounts for 26 % of the rural population. About half of the rural population live in villages with a population size ranging from 1000 to 5000 persons, such villages being considered as medium sized. Only 18 % of the population lives in villages with populations of 5000 persons and above. Hence, one can only think of tackling about 2 lakh medium and large villages, which can be considered as having adequate potential. This type of distribution of population warrants appropriate distribution and promotion strategies to decide the extent of coverage of rural market.

5) Many languages and dialects Even assuming that media for communication or that the company commissions its own media vans or hires them from professional operators, the next road block is intelligibility of program across a broad spectrum of the rural population. The number of languages and dialects vary widely from state to state, region to region and probably from district to district. Messages have got to be delivered in local languages and dialects. Even though the no of recognized languages is only 16, the no of dialects is estimated to be around 850. Multi-dialect dubbing in AV presentations is a viable solution, but again, cost is a factor.

6) Low per capita incomes Even though about 30 % of the gross domestic product is generated in rural areas, it is shared by 72 % of the population. Hence, per capita incomes are low compared to urban areas. That apart, the distribution of income is highly skewed since the land holding pattern which is the basic asset, is itself skewed. Thus the rural population presents a highly 8

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heterogeneous scene. Given low per capita incomes and the population spread in the villages, what will be the off-take of many product by rural consumers, say from a village shop? What inventory levels should be maintained by a rural shopkeeper and how long will it take for him to liquidate his stocks? If the company opts to distribute the products upto the village shop level, what should be the frequency of distribution? These aspects require very careful consideration while evolving distribution strategies for rural markets.

7) Low levels of literacy The literacy rate is low in rural areas as compared to urban areas and leads to the problem of communication for promotion purposes. With low literacy rates, print medium becomes ineffective and to an extent irrelevant in rural areas since its reach is poor. The dependence is more on electronic media- cinema, radio and television. While the access to cinema and radio appears to be fairly easy and common in villages it is not so in case of television. In addition, television advertising is very expensive. As regards mobile advertising there are lots of wear and tear expenses.

8) Seasonal demand The distribution of any product in the rural areas- either agricultural inputs, consumables or durables- should necessarily follow a seasonal pattern. Since 75 % of rural income is generated through agricultural operation which is seasonal, the demand pattern is also seasonal. A typical example is that of fertilizers. The demand for fertilizer is always high during the start of kharif and rabi seasons. The fertilizer manufacturers have evolved a distribution pattern so that seasonal demand can be met. Likewise, the demand for consumables and durables will be during the peak crop harvesting and marketing seasons. This is the time at which the rural people have substantial cash inflows. Hence, the distribution should be fairly intensive during peak crop harvesting and marketing seasons. This arrangement would result in adequate sales realizations. During summer, in places that lack irrigation facilities, demand will be very minimal. Thus the distribution system has to be geared to meet the seasonal pattern of demand. But in spite of all these problems there are a few facts which show the huge opportunities for the companies to foray in the rural market.

RURAL MARKETING IN INDIA


Although the rural market does offer a vast untapped potential, it should also be recognized that it is not that easy to operate in rural market because of several problems. Rural marketing is thus a time consuming affair and requires considerable investments in terms of evolving appropriate strategies with a view to tackle the problem Underdeveloped People and

Underdeveloped Markets:The number of people below poverty line has not decreased in any appreciable manner. Thus underdeveloped people and consequently underdeveloped market by and large characterize the rural markets. Vast majorities of the rural people are tradition bound, fatalistic and believe in old customs, traditions, habits, taboos and practices. Lack of Proper Physical Communication Facilities:- Nearly fifty percent of the villages in the country do not have all weather roads. Physical communication of these villages is highly expensive. Even today most villages in the eastern parts of the country are inaccessible during the monsoon. Media for Rural Communication:- Among the mass media at some point of time in the late 50's and 60's radio was considered to be a potential medium for communication to the rural people. Another mass media is television and cinemas. Statistics indicate that the rural areas account for hardly 2000 to 3500 mobile theatres, which is far less when compared to the number of villages. Dispersed Market:- Rural areas are scattered and it is next to impossible to ensure the availability of a brand all over the country. Seven Indian states account for 76% of the countrys rural retail outlets, the total number of which is placed at around 3.7 million. Advertising in such a highly heterogeneous market, which is widely spread, is very expensive. 10

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Many Languages and Dialects:- The number of languages and dialects vary widely from state to state, region to region and probably from district to district. The messages have to be delivered in the local languages and dialects. Even though the number of recognized languages is only 16, the dialects are estimated to be around 850. Low Per Capita Income:- Even though about 33-35% of gross domestic product is generated in the rural areas it is shared by 74% of the population. Hence the per capita incomes are low compared to the urban areas. Low Levels of Literacy:- The literacy rate is low in rural areas as compared to urban areas. This again leads to problem of communication for promotion purposes. Print medium becomes ineffective and to an extent irrelevant in rural areas since its reach is poor and so is the level of literacy. Prevalence of spurious brands and seasonal demand:- For any branded product there are a multitude of local variants, which are cheaper, and, therefore, more desirable to villagers. Different way of thinking:- There is a vast difference in the lifestyles of the people. The kind of choices of brands that an urban customer enjoys is different from the choices available to the rural customer. The rural customer usually has 2 or 3 brands to choose from whereas the urban one has multiple choices.

STRATEGIES IN RURAL MARKETING


The rural markets are expected to witness a different kind of a shift. As companies aggressively compete to get a higher share of the rural pie, competitive advantage will lie with those who have a higher reach. Marketing according to a leading management theorist Peter Druker can be put in this way There will be always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sell itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available."

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Through this we feel that the gist of mktg. in rural & urban is the same. It is nothing but teasing the minds of people, their desires, needs, expectations & playing with their psychology. But the market for a product may vary in rural & urban area and the marketing strategies to market the product is also different in urban and rural area. The strategies should revolve around what attracts the rural customer to a product. For example

Packaging: Rural customers are usually daily wage earners and they dont have monthly

incomes like the ones in the urban areas have. So the packaging is in smaller units and lesser-priced packs that they can afford given their kind of income streams. Packaging and package sizes are increasingly playing a vital role in the decision making process of the rural buyers. Certain products like detergents and paste are bought in large quantities, whereas shampoos, toilet soaps, eatables are bought in smaller pack sizes. The reasoning behind this is that the products that are common to family members are bought in large pack sizes, whereas individual-use products are preferred in smaller packs. 12

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A successful example is that of HLLs project Operation Bharat. HLL supplied hampers for Rs. 5, 10, 15 and 20, each of which had a Clinic shampoo bottle, a tube each of Pepsodent, Fair & Lovely, and Ponds Dreamflower Talc, in different sizes and combinations. The idea behind this strategy was to have a product for hair care, dental care, skin care and body care. Value for money: Rural consumers are quite brand conscious. A rural consumer wants value for money minus the frills. Zany advertising and marketing would be a no-go for this sector. A high price tag usually deters the rural consumer from purchase. To counter this, companies need to resort to low unit price strategy to expand sales. A good example of this would be the sachet revolution and combi-packs. According to a survey, 95 percent of total shampoo sales in rural India are by sachets. Colgate has followed the very successful sachet route by introducing the toothpowders in 10g sachets of Rs. 1.50 each and the toothpaste with Super Shakti in 15g packs of Rs. 3 each. The entrant can also offer attractive exchange and money back schemes for its middle and lower segments. Convenience: An example is what Colgate did to its tooth powder packaging. Firstly it made sachets as was required by their income streams. Secondly - since many households dont have proper bathrooms and only have a window or things like that to keep such things -- it was wise to cap this sachet for convenience of storage while use. So this is what they did. Demonstration: Direct Contact is a face-to-face relationship with people individually and with groups such as the Panchayat and other village groups. Such contact helps in arousing the villager's interest in their own problem and motivating them towards self-development. Demonstration may be: A. Method demonstration

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B. Results demonstration The five steps to make any demonstration effective are: 1. Information about people 2. Objectives to be accomplished 3. Demonstration plan & Execution of the plan 4. Evaluation of the demonstration 5. Reconsideration after evaluation. In result demonstration, with help of audio -visual media can add value. Asian Paints launched Utsav range by painting Mukhiya's house or Post office to demonstrate that paint dont peel off. Promotion and marketing communication: While planning promotional strategies in rural markets, marketers must be very careful in choosing the vehicle to be used for communication. They must remember that only 16% of the rural population has access to a vernacular newspaper. Although television is undoubtedly a powerful medium, the audiovisuals must be planned to convey a right message to the rural folk. The marketers must try and rely on the rich, traditional media forms like folk dances, puppet shows, etc with which the rural consumers are familiar and comfortable, for high impact product campaigns. Thus, a radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India. Wall Paintings Wall Paintings are an effective and economical medium for advertising in rural areas. They are silent unlike traditional theatre .A speech or film comes to an end, but wall painting stays as long as the weather allows it to. Rural households shopkeepers and panchayats do not except any payment, for their wall to be painted 14

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with product messages. The greatest advantage of the medium is the power of the picture completed with its local touch. The images used have a strong emotional association with the surrounding, a feat impossible for even a moving visual medium like television, which must use general image to cater to greatest number of viewers. Such a promotion has led to an interesting outcome. For both, washing and for taking bath - one requires water. Now for rural markets there are three sources of water wells, hand pumps and ponds. For the first in the history of advertising - these are being branded. Special stickers were put on the hand pumps, the walls of the wells are lined with advertising tiles and tinplates are put on all the trees surrounding the ponds. The idea is to advertise not only at the point of purchase but also at the time of consumption. So the customer could also see the advertising when he was bathing or washing. Now, the customers who bought these brands got a sense of satisfaction by seeing their choice being advertised in these places while a question was put in the minds of the customers who had bought other brands. So this was an innovative strategy that worked quite well. Example of successful use of wall painting is by Nirma, which makes extensive use of wall paintings, also a soil conditioner called Terracare uses images of Sita, Luv and Kush to attract the rural consumer. Haats & Melas The countries oldest tradition holds the key to rural penetration. The average daily sale at a Haat is about Rs.2.25 Lacs while the annual sales at melas amount to Rs.3, 500 crore. In rural India, annual melas organised with a religious or festive significance are quite popular and provide a very good 15

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platform for distribution. Rural markets come alive at these melas and people visit them to make several purchases. According to the Indian Market Research Bureau, around 8000 such melas are held in rural India every year. Rural markets have the practice of fixing specific days in a week as Market Days when exchange of goods and services are carried out. This is another potential low cost distribution channel available to the marketers. Haats serve a good opportunity for promotion after brand building has been done at Mela. Also, one satellite town where people prefer to go to buy their durable commodities generally serves every region consisting of several villages. If marketing managers use these feeder towns they will easily be able to cover a large section of the rural population. Melas are organized after harvest season, so the villager has enough money, which he will be ready to spend. Demonstration at Haat is essential to convert customers at haats since their attitude is far more utilitarian than that of visitors to a fair. Dealing with this sector needs innovative and localized approaches: Watch major Titan Industries plans to aggressively approach the rural and semi-urban markets in India by creating a separate image for its low-priced Sonata brand. The company has opened its first showroom in Bhopal and nine more showrooms are to be opened across the country. The marketing strategy being followed is to keep the prices of the watches at an affordable range of Rs 295-1,195 and create a niche market for the brand. They will not open showrooms in metros such as Mumbai or Delhi for Sonata brand. The target segment would be the Rs 295-700 customers. They plan to open showrooms at locations, which rural customers visit frequently such as bus terminals, railway stations among others. Also, there would be a range of 300 models from smart plastics and all weather steel to all gold and all-occasion gold and leather. Titan will be looking for the marriage season, which will start from April-June where the rural customers become actual buyers.

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Another innovative idea is that of Sanjay Lalbhai's Ruf and Tuf jeans is targeted at the rural market. And they are leaving nothing to chance. Arvind Mills is teaching tailors in the villages how to stitch the jeans.

Mobile Traders: been used before for

Even though they have redistribution, Cycle Salesman

could possibly emerge as

one of the most cost-effective ways of selling directly to rural consumers. The lack of motor able roads and high distribution costs are not a hindrance any more. Mobile traders score over the conventional wholesale channel on both counts of cost and reach. They travel either on foot or on cycles. That means transportation costs are virtually nonexistent. Besides these traders can target smaller villages, which conventional distribution channels often do not touch? The mobile traders can play a crucial role in buying decision. Most rural women are loath to visit retail outlets. Mobile traders therefore are a smart way of reaching women in their home environment. The women rely on these mobile traders to sell them goods in the security of their home. Rural India is a marketers dream given its tremendous potential and increasing money power. The formula of success for companies entails a complete shift in marketing and advertising strategies.

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RURAL MARKETING IN INDIA Marketing-Mix


Aspect Product a) Awareness b) Concept c) Positioning d) Usage Method e) Quality Preference f) Features Low Less Known Difficult Difficult to grasp Moderate Less Important High Known Easy Easily rasped Good Important Rural Urban

Price a) Sensitive b) Level Desired Very much Low-Medium Yes Medium-High

Physical Distribution a) Channels Village Shops, Haats & Wholesalers& jatras. b) Transport Facilities c) Product Availability Average Limited Retailers. Good High

Promotion a) Advertising TV, Radio, Print Media to Print, some extent, More Audio-Visuals,

Outdoors, Exhibitions.

b) Personal Selling

Languages Occasionally

Door-to-Door Frequently Contests, Gifts, Price

c) Sales Promotion Gifts, Price Discounts d) Publicity Less Limited

Discounts Good Opportunities. Adequate scope

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RURAL MARKETING IN INDIA Role Of Media in Rural Marketing


The past two decades have seen a dramatic expansion of exposure to mass media in rural areas. Since these are, almost, by definition urban media at present is an overwhelmingly urban portrayal of life and values, their impact on attitudes and behavior has been profound. Radio is the medium with the widest coverage. Studies have recently shown high levels of exposure to radio broadcasting both within urban and rural areas, whether or not listeners actually own a set. Many people listen to other people's radios or hear them in public places. Surveys indicate that in rural areas more than a one third of the married women of reproductive age have listened to a radio within the last week. Television, video and films expose viewers to a common window on styles of life and behaviour, an impact increased by the supranational reach of the media. Television is extremely popular where it is available.

Television increasingly exposes viewers to a wide range of national, regional and international viewpoints. Rural exposure to television has been lower by far than radio. The mass media brings change wherever they go; but change does not have to be random. Successful media campaigns have changed attitudes and behaviour in a variety of areas, from basic literacy to health care and family planning. But Advertising to rural consumers continues to be a hit and miss affair. At best, it is an exercise where communicators grapple with issues of language, regional and religious affiliations and local sensitivities. Most often finding the right mix that will have a pan-Indian rural appeal is the greatest challenge for advertisers. But more often than not, marketers throw in the towel going in for simplistic solutions: such as going in for a mere transliteration of advertising copy. The result: advertising that is rooted in urban sensitivities and do not touch the hearts and minds of the rural consumer.

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Various other reasons making the mass media ineffective are: 1. The Indian society is a complex social system with different castes, classes, creeds and tribes. The high rate of illiteracy added to the inadequacy of mass media impedes reach almost to 80% of India's population who reside in village. 2. Mass media reaches only 57% of the rural population. Generating awareness, then, means utilizing targeted, unconventional media including ambient media. 3. Mass media is too glamorous, interpersonal and unreliable in contrast with the familiar performance of traditional artist whom the villager could not only see and hear, but even touch. 4. The communication and the design of marketing mix needs to be different, as what attracts one need not attract the other as well. So again, even if the media reaches a rural consumer, there might not be an impact as he may fail to connect to it due to his different lifestyles. Moreover rural marketing is usually related with products having low profit margins and high sales volumes and hence it is more important to emphasize the availability of the product to all potential consumers than an overdose of expensive inefficient mass-media strategies. To understand the way the rural markets work - we need to go to these markets and spend time there in understanding them. We live in surroundings where the things are completely different from what the rural customer experiences. And we can't understand him unless we go and spend time there. Things like what time does he get up, etc need to be studied and customer needs to be understood. Also these studies need to be passed on so others can also benefit from the ground works done and enhance them further. We need in depth studies of the market, the medium, the message and the rural customer in centre of all these to understand the rural markets completely. The winning combination will be a good product with consistent quality and availability. Once you earn the villagers' loyalty (and they are known for their brand loyalty), it will be difficult for competitors to take away your customers.

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RETAILERS: -For the rural customer the choices available are limited. So the retailer plays a very big role in the purchase decision. Data on rural

consumer buying behavior indicates that the rural retailer influences 35% of purchase occasions. The rural customer goes to the same shop always to buy his things. And there is a very strong bonding in terms of trust between the two. The buying behavior is also such that the customer doesn't ask for the things by brand but like - "paanch rupey waali chaye dena". Now it is on the retailer to push whatever brand he wants to push as they can influence the buyer very easily and very strongly on the preferences. Therefore, sheer product availability can determine brand choice, volumes and market share. Thus distribution is the key factor for the success of rural marketing. This includes, maintaining favorable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. In rural areas, the place where consumers prefer to shop is very important, because it has been found that they buy their requirements from the same shop. This high shop loyalty is accentuated by the "khata" system, which is widely practiced. Hence, if the product is not available at the place where the consumer shops, he would buy some other available brand. RURAL FOLK MEDIA: -As a general rule, rural marketing involves more intensive personal selling efforts

compared to urban marketing. Marketers need to understand the psyche of the rural consumers and then act

accordingly. To effectively tap the rural market a brand must associate it with the same things the rural folks do. Utilizing the various rural folk media to reach them in 21

RURAL MARKETING IN INDIA


their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, melas and other activities where they assemble, can do this. In the Indian rural marketing context, perhaps linguistics could provide a new approach to tackling communication issues and arriving at a better understanding of rural consumers. Also, the manner in which symbols and icons are used, which provides insights and clues into the mindsets of rural audiences, can be deployed to grab their attention. Though television and radio fare better then print, the best way to kick start sales are events. Where the company meets and interacts with the audience, talks to them in their own idioms and tells them what this product offers. Marketers should think up games and events, which would attract the attention of the villagers from all professions uniformly. This would require local level goods creation and social negotiation skills. The best choice comes from weekly bazaars. With varying populations, one shop or few shops cannot really cater to all the needs of the consumers. Thus, it makes sense to have weekly outlets that caters to the needs of the consumers in these regions. Frugal though the rural consumer is success from these weekly outlets is that much more pertinent. What attracts her is the freshness of the produce, buying in the bulk for a week and the bargaining power. These markets (haats and shanties) have high potential that corporate are now waking up to. The scope that these markets offer to distribution is something that has to be seriously considered. Distribution is clearly the key to rural marketing. TRADITIONAL MEDIA can be used to reach these people in the marketing of new concept. The traditional media with its effective reach, powerful input and personalized

communication system will help in realizing the goal. Besides this when the advertisement is

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RURAL MARKETING IN INDIA


couched in entertainment it goes down easily with the villager. The traditional media like folk/street plays, wall signs/shop paintings, van campaign/Haat events (weekly fairs), melas, home-to-home contacts and product demonstrations can be effectively used for this purpose.

Present position
Change is the LAW OF NATURE. Though change is common, some changes seem peculiar and paradoxical. Today, we witness in Indian Economy one such a bifaceted change a change from national to global on one side and, urban to rural on the other. RURALISE is among the Buzz words of this new era. Though change is evolutionary and characteristic of a developing nation with huge population and vast resources, one requires a visionary entrepreneurship to

respond proactively to it.

The first five years of new millennium will belong neither to the urban markets, which have reached saturation and where margins are under pressure nor to the export markets, which suffer from inadequate infrastructure back home, and uncompetitive price overseas. But it belongs to RURAL MARKETING. RURAL MARKETING has become the latest mantra of most corporate. FMCG majors like HLL, P&G, PARLE, COLGATE PALMOLIVE, BRITANNIA, etc. were the first to wake up this fact. Even MNCs like LG, PHILIPS, WIRLPOOL, and other consumer electronic majors are also gung-ho about the rural segment. The fever has spread the consumer durable companies and beyond. Today, many of the Corporate and MNCs look at these markets by compulsion as well as by choice. Compulsion, because markets are saturated, and there is nowhere to go. Choice: - because they are attractive and viable.

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RURAL MARKETING IN INDIA Introduction of PARLE

A long time ago, when the British ruled India, a small factory was set up in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely.

Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality.

Evolution Of Parle Products Ltd..


Parle-G has been a strong household name across India. The great taste, high nutrition, and the international quality, makes Parle-G a winner. No wonder, it's the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits.

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Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle Gluco Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. By the year 1949, Parle Gluco biscuits were available not just in Mumbai but also across the state. It was also sold in parts of North India. By the early 50s, over 150 tonnes of biscuits were produced in the Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names that were similar to Parle Gluco Biscuits so that if not by anything else, the consumer would err in picking the brand. This forced Parle to change the name from Parle Gluco Biscuits to Parle-G. Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years. Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring.

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RURAL MARKETING IN INDIA


In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan, which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore; meeting their favorite film star Hrithik Roshan; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching camp with the Australian cricketer - Ricky Ponting; etc. The year 2002 will go down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world, especially children from all the evil forces. A campaign that is not just new to the audiences but one that involves a completely new way of execution that is loved by children all over the world - Animation. A TV commercial that showed G-Man saving the children from the evil force called Terrolene launched this campaign. It was also supported by print medium through posters and streamers put up at the retail outlets. G-Man, a new superhero of Parle-G has the potential of making it big. And will be supported by a campaign that will see many a new creative in the future so as to keep the children excited and generate pride in being a consumer of Parle-G.

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RURAL MARKETING IN INDIA


To make the brand much more interesting and exciting with children, it was decided to launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G Magix is available in two exciting tastes - Choco and Cashew. The year 2002 also witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of milk and honey, especially launched for the southern market.

Parle-G continues to climb the stairs of success. Take a look at the global market where it is being exported. First came the Middle East then USA followed by Africa and then Australia. An Indian brand, that's exported to almost all parts of the world. After all that's what you would expect from the Parle-G World's Largest Selling Biscuit

Parles efforts to make biscuits affordable to all


Biscuits were very much a luxury food in India, when Parle began production in 1939. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands. However, during the Second World War, all domestic biscuit production was diverted to assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat in those days, made Parle decide to concentrate on the more popular brands, so that people could enjoy the price benefits. Thankfully today, there's no dearth of ingredients and the demand for more premium brands is on the rise. That's why; we now have a wide range of biscuits and mouthwatering confectionaries to offer.

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RURAL MARKETING IN INDIA Strength of the Parle Brand


Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

Quality Commitment

Parle Products has one factory at Mumbai that manufactures biscuits & confectioneries while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in Karnataka.

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RURAL MARKETING IN INDIA


The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilities in India. Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract. All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.

All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials, packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment.

Marketing Strength
The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. We constantly endeavor at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on our cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers.

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RURAL MARKETING IN INDIA Customer Confidence

The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up on Parle biscuits & sweets. Today, the Parle brands have found their way into the hearts and homes of people all over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness & joy among people of all ages. The consumer is the focus of all activities at Parle. Maximizing value to consumers and forging enduring customer relationships are the core endeavor at Parle. Parles efforts are driven towards maximizing customer satisfaction and this is in synergy with their quality pledge. "Parle Products Limited will strive to provide consistently nutritious & quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train our employees and to provide them an open and participative environment."

Parles Rural Marketing Management


Marketing management refers to distribution of the firms product or service to the customers in order to satisfy their needs and to accomplish the firms objectives. Marketing includes developing the product, pricing, distribution,

advertisement, and merchandising, doing personal selling, promoting and directing sales and service to customers. Marketing is an essential function

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because unless the firm has a market, or can develop a market, for its product or service, other functions of staffing, producing and financing are futile. Developing rural marketing Strategies for Parle: a. Determine what the customers needs are and how those needs can be satisfied. b. Select the market that would be served. c. Decide what advantage that will give a competitive edge over other firms. Meeting customers needs Learning customers needs Conscious about the firms image Looking for danger signals

These are the questions which arise while introducing a new product, such as HIDE n SEEK. Market Segmentation: A market should be defined in terms of various characteristics such as economic status, age, education, occupation and location. The best opportunity is to identify a market segment that is not well served by other firms. To determine the firms market segment, the fundamental aspects are summarized: a. What is the place of the firm in the industry and how it can compete with others? b. Whether the firm is known for its quality or price. c. Image of the firm among the customers.

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As Parle is a well established brand, its products are not new to the people. So, when they launch a new product, it becomes easy for them as the Company is known for its branded products all over the country.

Strategic marketing Policies of Parle


Formulation of strategic marketing policies for certain areas of the Parle Are: 1. Morality and public service 2. Product 3. Market 4. Profit 5. Customer relations 6. Promotion 7. Credit Policies Morality and Public Services:- Policies on morality and public service consist of general statements expressing Parles desire to be honest in its dealings with public and its customers. They fulfill the demands of the consumers by supplying adequate quantities to them. And they follow morality by providing products at good and acceptable quality. Product:- Parle often finds its most effective competitive weapon in the field of product strategy. It may concentrate on narrow product line, develop a highly specialized product service or provide a product containing an unusual amount of advantage and satisfaction. Competitors products, prices and services are constantly examined to determine whether the Company can build a better product. Parle has always followed this principle of making the product as the most important thing rather than spending more on advertising and promotions. They feel that if the product has quality, than it will be promoted on its own. It will itself act as publicity. Market:- Market policies are designed to clarify with geographic areas Parle wishes to serve and other marketing characteristics appropriate for it. The market policies are framed as per the market segmentation. As the Parle Biscuits dont have the targeted market as such, because it is a product consumed by all. So, there 32

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are market strategies as per the potentiality to cover the markets ,And the biggest achievement for Parle is that, it is available in Every Nook and Corner of the country. It has even reached the interior most part of the rural areas. This has been possible only by the foolproof distribution system. Profit:- Profit policies may require that sales goals be specified that will provide Parle a sufficiently large sales volume or profit as percentage of sales may be specified which calls for low marketing costs, as the biscuits of Parle are well known, they dont have to spend much on advertisements. So, the profit margins are increasing substantially. Initially, they followed penetration policy of pricing. And it worked. Still, the price is too low to be affordable by the common man. But, now they are planning to increase the prices of the biscuits, to increase their profits even more. This pricing policy refers to as Skimming the Cream. Customer Relations:- Parle, also like other companys feel that consumers are the most important aspect. The consumers are always right because they are the sources through which a company comes to know about its performance. Same is the case with Parle. They follow the feedback by the consumers and do as they want. They consider the consumers views as of prime importance. Because, if the consumers are satisfied no one can stop the growth of Parle. Promotion:- The pattern of Parles advertisement may reveal the promotion policies. It always follows a policy of tasteful advertising at all times. Sales promotion may be restricted to trade shows or to industrial publications or to some other advertising media. Credit Policies o In order to stimulate sales, customer should be provided with credit. However, an appropriate credit policy is essential to be successful in granting credit. This is a useful policy as it attracts the consumers and the retailers. And also increases their confidence in the brand. The credit can be given by the company to the whole sellers or retailers. And in turn they will give credit to consume

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RURAL MARKETING IN INDIA 4 PS considered in Parle

Biscuits are the commodity which was considered as a product for the rich class people. As this a product, that is traced out from western countries. So, it was considered to be an urban based product. The rural people were not able to get this thing. But this belief was being broken down by Parle. Parle Product Limited is a company which introduced their quality biscuits at a reasonable cost. A cost which is affordable by each and every class people. Even irrespective of the consumer of urban or that of the rural areas. Parle rules the market because it provides quality assurance with its penetrating potentiality pricing. In a rural area, there are people with different economic statues. So, the Parle biscuits are being priced to suit their statues. Rich people buy this, because of good quality. And the middle class or poor people buy it, because it provides low cost benefit to them along with quality. The product policy and strategy is the corner stone of a marketing mix. To the marketer products are the building blocks of a marketing plan.

PRODUCT BISCUITS are the products of daily consumption. Consumed by, one and all. And when it comes to Parle biscuits, it is loved by all.

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Parle Products Limited has launched different brands of biscuits and confectioneries. Not only in urban areas but also in rural markets as well. They have entered the rural markets with the same price and quality. Not with all the brands but many of them. Out of which Parle-G is the most vital one. It has penetrated so much in the market that it has become the house hold name. Even it is compared to the meal of a person. That if a person consumes a full packet of biscuit instead of having lunch or dinner. And this is accepted by the consumers, as the nutritional value is high enough. This stands as a biggest accomplishment for the company.

Company

needs

nothing

except

the

consumer

satisfaction. And Parle has successfully gained that. This is its biggest achievement which creates a SUCCESS STORY. The Core of the Product: - The core or the basic constituent of the product is the first component in the total personality of any product. Same is the case with Parle Products. It is presented as a product of daily consumption, which has a combination of unique features like Quality and nutritional value as well. For Example, the unique pack of Parle G biscuits, the rectangular shape of biscuits, the unique smell, the brand name, the price, the positioning as a product for all age people and even all class people, economically. PRICE

WEIGHT 19 grams 50 grams 100 grams 300 grams 500 grams

NUMBER OF BISCUITS 4 Biscuits 8 Biscuits 16 Biscuits 48 Biscuits 110 Biscuits

PRICE Re. 1 Rs. 2 Rs. 4 Rs. 10.00 Rs. 15.00

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These are the various prices of Parle-G Biscuits in urban as well in rural areas. The price is too low, which is affordable by all irrespective of an individuals economic status.

Rural consumers look for value than its price. Product strategy and pricing are inter linked with each other to deliver value at the right price. So, the biscuits of Parle are of good quality and nutritious.

Also, the rural consumers are more interested in the utility of the product rather than packaging. So, its better to avoid sophisticated packing. And it will help out in reducing the cost as well. Simple packing should be adopted. Parle uses polyethylene sheets instead of boxes, which keeps the quality and quantity of biscuits and confectioneries in good condition. The price is low enough as it has to penetrate in the market even in the interior of the country. It makes it affordable by each and every one. PLACE Place refers to as the distribution channels adopted by Parle Products to reach even the interior part of the village. This is a quiet difficult and challenging task. But, Parle has always seen further to find solutions and grab opportunities. Determining Channels of Distribution:- A marketing channel is the pipeline through which a product flows on its way to its ultimate consumer. Own designed channel of distribution: Channels are tailor- -made to meet the needs of the company. New products, like hide n seek etc., commonly require different distribution channels from those needed for products, which are well established and widely accepted like Parle G, Marie. Etc. Avoid multiple channels: Multiple distribution channels sometimes create conflicts. Distribution will be adversely affected unless these conflicts are resolved. So, the Parle Company doesnt go for multi channel as it is harmful. So, they have only the established ones.

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When to change the channel: Change in buyers location may dictate a change in marketing channels. Changes in concentration of buyers may also require a change in marketing channels.

Distribution Channel

PARLES PRODUCTION UNIT

AGENCIES OR AGENTS

WHOLESELLER

RETAILER

TEA SHOPS / PAANWALLAS

RAILWAY STATIONS

This shows that Parles Production units dispatching the biscuits to the well established agents or agencies. They send it further to the Whole seller.

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1. Kiryana Stores 2. General Stores 3. Tea Shops. 4. Railway Stations. 5. Paan wallas. 6. Place where the cultural programmes of village are being organized, like melas, etc. 7. Mobile traders, etc. PROMOTION Sales promotion consists of activities that have the purpose of making other sales efforts (e.g. advertisement) more effective. Some popular sales promotion techniques of Parle are: a. Special displays b. Offering Scholarship c. Running contest d. Distribution of free samples e. Offering free introductory services f. Demonstrating products In spite of all efforts spent in doing market research, sales forecasting and advertising and sales promotion, someone ultimately must do some personal selling of products or services. Selling through Agent Middlemen Selling Agent: The selling agents perform on the basis of extended contracts and negotiate all sales of a specialized line of merchandise or the manufacturers entire output. Usually, the agent has full authority concerning prices and terms and is the sole seller for the line represented and is not given market area. Manufacturers Agent: The manufacturers agent or representatives is an independent business person who sell a part of output of two or more client manufacturers whose products are related but non-competing, on a continuous or contractual basis in a limited or exclusive territory. Manufacturers use agents more often than any other type of agent middlemen. The agents do not take title to the 38

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goods, are paid a commission and have little or no control over prices, credit or other terms of sales.

Survey in Rural Area Shelu


To enhance the project, a survey to gain primary data was being performed by me. I did the survey of retailers in Vadgaon, near by Pune. After retaining the information from the Parle Company itself, it made me curious to find out the demand of Parle biscuits in the near by village. I had collected the information from the various retail shops present in that area. About 15 retailers, I have approached. The questionnaire format was produced as below: -

OBJECTIVES OF SURVEY
The basic objective of the survey was to understand the concept of rural marketing clearly by means of Parle biscuits demand analysis. To find out the consumer behaviour in relation to the biscuits of Parle. To find out the competitors, local brands and imitation brands. To find out its effect on sales of Parle.

Findings
Surprisingly, all the 15 retailers have Parle biscuits available with them. Not all the brands but most of them. All the retailers have in common PARLE G, MONACO, MARIE and KRACKJACK. About 9 retailers have with them the other brands of PARLE as well along with the above four, such as HIND n SEEK, FUNCENTRE, MILK SHAKTI, and CHEESELINGS. All the retailers were satisfied with the demand of Parle. They said that Parle is the most selling biscuits amongst all. And the brands of Parle are known very well to the people (consumers). They dont ask for biscuits, but just ask for PARLE. But, 4 retailers which are the smaller ones got some less demand as compared to others. Due to Britannias TIGER, the sale of PARLE G is being affected. But still people retain to the Parle brands.

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Due to competition, the Parles demand is being decreased to 15-20%.This was said by 6 retailers. But the rest 9 retailers said that the sales have been decreased only by 7-10%. And the rest 12 retailers were very sure about the Parles brand as they had no imitation brands with them. So there is no chance of fake sale. All the retailers have no complaint about the Parle among the consumers. 2 retailers have the complaint that the brands like HIDE n SEEK and FUNCENTRE dont have much demand because people are not known to these brands as much. The graphical representation of the findings of the survey is as follow: -

DEMAND ANALYSIS
5% 3%

39%

53%

Parle-G Competitor' s Brand

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RURAL MARKETING IN INDIA Conclusion


The detailed study about the Parle products mainly PARLE G, gives out a Success Story in rural areas. This shows that products even at low prices can earn substantially considerable profits. The results of the survey also indicate the importance of Parle G in comparison with its competitors, local and imitation brands. The views of the consumers on the Parle G biscuits also put light on its vitality.

To sum up in general, the Indian rural market has grown in recent years in size, range and sophistication. Economic reforms in India have brought about major changes in the whole market environment. Successful rural marketing calls for a review of the nature and profile of rural consumers, designing the rural products to appeal to them, and adopting suitable media as well as appropriate strategies for communication and distribution. Economic reforms and changing economic conditions have clearly pointed out that the rural market is the future market of India. To become successful and contending players calls in for a review of rural marketing environment, rural consumer, media and strategies to be adopted.

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RURAL MARKETING IN INDIA Bibliography A) BOOKS Rural Marketing in India: Strategies and Challenges by Ruchika Ramakrishnan. Rural Marketing In India by Rajagopal B) WEBSITES www.managementstudyguide.com

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