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MARKETING
AN INSIGHT BY NITESH CHAHARIA
WHAT IS RURAL?
According to census of India , villages with clear surveyed boundaries not having a municipality,
corporation or board , with density of population not more than 400 sq.km and at least 75
percent of the male working population engaged in agriculture and allied activities would qualify
as rural.
RURAL ECONOMY
Agriculture & Allied Non Agriculture
DIFFERENCES AS A SHOPPER
Rural Urban
Need – Priority Linked Need – Universal and Adhoc
Mostly planned buying Both planned and unplanned buying
Calculated Trials Random Trials
Limited Awarness – local,tested Broad based awareness – information based
Trustworthy buying source Catalogue based buying
POSSIBLE REASON OR CHALLENGES
IN DISTRIBUTION STRATEGY
• Reach
• Lack of Info
• Cannot Sell at Suggested Price
• Channels do not follow leads
• Doubt on Utilization of Resouces
4P 4A
PRODUCT AWARNESS
PLACE ACCEPTABILITY
PRICE AVAILABILITY
PROMOTION AFFORDABILITY
PRICING STRATEGIES
• Penetration Pricing Free/Gifts discounts do not work always –
Rural consumer develops negative opinion
• Value Pricing
• Product Price bundling Schemes to channel partner – may lead to
• Optional Product pricing financial blocking in the channel
• Coinage Pricing
Smaller version , low-end technology – does
• Economy Pricing not mean always it is for rural
• Discriminatory Pricing
• Discounts Rural does not mean cheap – Rural market
needs the product that match the need
ULL AS K AMATH, JOINT MD , JYOTI L ABORATORIES LTD.
OVER 25 YEAR OF EXPERIENCE IN TRANSFORMING THE COMPANY FROM A
PROPRIETARY CONCERN TO A MULTI -BRAND FMCG CORPORATE WITH KEY
BRANDS LIKE UJAL A , MA XO,EXO,PRIL ,HENKO,MARGO,MR. WHITE, CHEK ,
NEEM & MAYA .
• To sell in Urban India one requires Mind and to sell in Rural India one require Heart.
• The problem in Rural India is that they need the product as they want and in the place they want.
• Do not outsource your business in Rural India. Empower your field force to cater the Rural market
by making them your Brand Ambassador
• People incharge of Rural Marketing should travel extensively by road first to understand the
demography and the need of the Rural market.
• We don’t recruit a single person from the urban area to manage the Rural market. It is important
to have a local connect for people in Rural area still prefers to buy a product from a local guy
rather than an outsider.The trust factor is much stronger with the localities
SANJAY PANIGRAHI, PRESIDENT
PIDILITE INDUSTRIES LTD.
• Targeting the Right Rural Market – Basis of selection to be decided whether on population ,
per capita income, consumption pattern etc. Data Science or 3rd part Agency could prove
useful in selecting the right market.
• ATL activities build a corporate image but to create a demand in Rural market one need to do
Demand Generation Activities. The budget is more than that of TV spend for Pidilite
• Entire Sales is done via marketing activities through influencer.
MADAN MOHAN PANDEY, PRESIDENT
SALES CONSUMER CARE DIVISION,
EMAMI LIMITED
• Key Challenges : Assessing Market Potential, Controlling Large workforce, Estimating Time Spent in
market, Absenteeism & Attrition
• Implemented Swadesh App fro Field Force : Collecting Orders,Market Information and Manning
Workforce
• Setup a Team of callers that will call the Dealers for any order if any executive is absent on a
particular day as per his beat plan.
• Data captured from the app was processed as information and feedback was given to the Sales
Staff. This processed doubled the time field staff used to spent in market.
THANK YOU
The Presentation has been made on the basis of Inputs by various companies at the 2nd Annual
Rural Market Summit held at Mumbai.