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USN NMAM INSTITUTE OF TECHNOLOGY NITTE

(An Autonomous College under V T U, Belgaum)

Fourth Semester M.B.A. (Credit System) Degree Examinations - May 2010


Time: 3 Hrs

08MBAMM415 Rural Marketing

Max. Marks: 100

1. Answer the following questions in 2-3 sentences each. a) What are agricultural durable inputs? b) Explain the term AGMARK. c) What are forward markets? d) Explain the term contract farming. e) What do you understand by grading and standardisation? f) What is meant by co-operative marketing?

(2 x 10)

g) Write a brief note on minimum support price. h) What are agricultural consumable inputs? i) j) What are regulated markets? What is State Trading? What are the types of state trading? (5 x 4)

2. Answer any FOUR of the following questions. a) Explain the hierarchy of markets for rural consumers. b) What are regulated markets? How do they function? c) Critically evaluate PDS d) Explain Rural Areas Requirements.

e) Why is it important to innovate for the products and services to be marketed in the rural areas? f) There is a need for trained personnel in agricultural marketing. Discuss.

3. Answer any FOUR of the following questions. a) What strategies can make a durable brand a success story in the rural markets? b) What factors have led to the boom for FMCG sector in the rural markets? c) With the help of SWOT analysis, explain the fertilizer market in India. d) Explain in detail the elements of rural market environment.

(10 x 4)

e) If you were to develop marketing strategies for promotion of insurance services of your company, what specific strategies would you have recommended for the effective tapping of rural market potential? f) What is market structure and what are the components of market structure?

P.T.O. 4. Case Study (Compulsory question) The success of a branch in the Indian rural market is as unpredictable as rain. Many brands which should have been run away successes have failed. It still is and always has been difficult to gauge the rural market. More often than not, people attribute rural marketing success to luck.

Rajdoot has been in the market for over three decades, tried and tested. It is a proven product with immense value in Indian usage conditions and has virtually no substitute for certain applications, even today.

But the fact remains that rural market is fickle. There is no hard and fast strategy that can be adopted to ensure the success of a brand. Even today, marketers fear to tread this unpaved road. With many, it is a case of once bitten, twice shy. They are happy with their penetration in the urban market and hope that some of the effect trickles down, but dont really strive for it. With Escorts, however, deeper penetration is a constant exercise. Little wonder then that it is claimed number one in as many as six states.

Rural India has been getting increasingly important to two- wheeler marketers. With the opening of its Rural Marketing Cell in September last year, Escorts has been to capitalize on the demand for big-wheeled transport. Sales have risen to almost 95,000 mobikes annually.

Impressive? Yes. Escorts has been working to a vigorous plan for the rural market and plans to rural cellize the entire country, starting from Haryana. How does it get its message across to customers? One does not see any advertisements in the press or on TV. Says Prasad As important as TV and press ads is a focused approach, depending on geography and market parameters like fairs, melas and so on.

It is evident that the rural market requires a special communication strategy. The advertising, managed by Headstart, was designed to excite the rural customer by concentrating on what appealed to him. Who can forget Dharmendra and his janddar sawari, shandaar sawari? With the launch of rural cell, direct marketing has also gained prominence. The downfall of several brands has been that they used promotions designed for the urban market hoping they would work in the rural market as well. This however is a major fauxpas. A rural consumer differs from his urban counterpart in his consumption habits. While the later is

somewhat brand conscious, price is the important determinant for the rural consumer. The Rajdoot 223, priced at Rs.33,000, is cheaper than most mobikes and is preferred over mopeds and scooters because of its sturdiness and it weight carrying capabilities. Moreover, rural folk know it is easy to maintain (spares are easily available). Escorts today has about 2000 authorised service points.

To tackle yuppies demand for something more fancy, escorts launched the ACE. It is much sleeker and priced just marginally higher at Rs.37,560. with the same 175 cc engine, it was seen as an effort to woo this segment and consolidate Escorts position in the rural and semi-urban markets. Though not many are seen in the urban areas it has done quite well in the rural markets, demanding 15% of the production capacity of Rajdoot.

Answer the following questions. a) Explain the power of word of mouth advertising in rural marketing. b) Explain the survival strategies of Rajdoot 223 in Indian rural markets.

(5 x 4)

c) Explain how rural consumers differ from their urban counterparts in their decisions while purchasing two wheelers. d) Explain the promotion strategies for two wheelers in Indian rural markets.