Presented By: Linson Johnson
Presented By: Linson Johnson
Presented by :
Linson Johnson
An Introduction
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.
Definition
According to Corporate Rural Marketing
Definition, it is the function that manages all
activities involved in assessing, stimulating and
converting the purchasing power of rural
consumers into effective demand for specific
products and services to create satisfaction & a
better standard of living for achieving
organizational goals.
Nature & Characteristics Rural Market
Large & Scattered Market
Heterogeneous Market
Income from Agriculture
Standard of living
Large & Scattered Market
It consists approximately 75 crore rural
consumer who live approximately in
6,38,365 villages.
13% villages have 50% rural population
and they posses 60% rural wealth.
Heterogeneous Market
As many as 20000 ethnic groups are in
present rural India and this posses a
formidable challenges to the marketer.
There are 24 languages varies ever 100 km
or so it extremely difficult to develop a
uniform promotional message.
Income from Agriculture
Nearly 55% of rural income comes from the
STRATEGIES
Offer products or services that suit the rural market
easy to understand
Mismatch of urban focused strategy to rural markets
Eg: Because of the lack of electricity and refrigerators in the
rural areas, coca-cola provides low-cost ice boxes-a tin box for
new outlets and thermocol box for seasonal outlets
Eg:HDFC tied up with non-governmental organisations and
offered reasonably-priced policies in the nature of group
insurance covers
AWARENESS
CHALLENGE
-less exposure to the world ,low literacy rate
STRATEGIES
-Opinion leaders play a key role in popularizing
products and influence in rural market so choose the
appropriate opinion leader.
Case Studies
LG
Established in 1997,LG Electronics India
Pvt Ltd., is a wholly owned subsidiary of
LG Electronics , South Korea.
LG found the untapped potential in the rural
market in India and to encash the
opportunity it comes with rural marketing
strategy
4 A’s of Rural Marketing
AVAILABILITY –place
65 Remote area offices under the branch offices that
empowered to directly link for orders
230 service centers
2600mobile authorised service personnel for villages
having residents below 10,000.
AFFORDABILTIY
1998,LG launched its first low price TV for rural
consumers
-sampoorna-Rs.3000
-Cineplus –Rs 4900
ACCEPTABILITY
-LG came out with Hindi lang: TVs
-Introduced the low-price “Cineplus’’ and
‘’Sampoorna’’ for the rural market.
-LG was the first brand to introduce gaming in TVs
AWARENESS-Promotion
-Mobile vans
-Exhibition
-Road shows
CONCLUSION
Rural market has an untapped potential like rain but it
is different from the urban market so it requires the
different marketing strategies and marketer has to meet
the challenges to be successful in rural market
THANK YOU