Defining Rural Markets
The census of India defines any habitation
with population density of less than 400 per square km, where at least 75% of
male population is engaged in agriculture and where there exists no
municipality or board, as a rural habitation.
The rural marketing
mix – the 4 A’s
Affordability
Availability
Awareness
Acceptability
The evolution of rural
marketing
Phase 1 (prior to the 1960’s)
The term rural marketing referred to the
marketing of rural products in rural and urban areas
Marketing of agricultural inputs in rural
areas
Phase 2 (1960s – 1980s)
The green revolution changed the face of
rural India, ushering in scientific farming practices
Better irrigation facilities, use of
fertilizers, pesticides, high yield variety seeds
Newer implements like tractors, power
tillers, harvesters, pump sets, sprinklers were used
The white revolution initiated for self
sufficiency in milk production
Marketing of agricultural inputs increased
Emergence of companies like Mahindra &
Mahindra, escorts, eicher, shriram fertilizers, IFFCO etc.
Promotion of rural products to urban
markets increased by promoting KVIC (Khadi and Village Industries Commission),
weaver society, handicrafts emporia etc.
Govt. promoted rural industries through
“gram shree melas”, “shilp melas” etc.
In this phase few FMCG companies began
establishing a distribution network in the rural segment.
In 1970 NIRMA became the first company to
initiate and produce products for rural consumers.
Home appliances companies like Usha,
Philips and Murphy also came into the picture
Phase 3 (1990’s – 2000)
We have witnessed a positive growth in
rural market due to liberalization policies of govt.
Rural market potential was visible as
growth in rural infrastructure
Rural markets were very accessible due to
no. of govt. schemes to promote rural products and reach of mnc’s to rural India
Phase 4 (after 2000)
After success of e chaupal and project
shakti , rural marketing geared up with a great pace.
In this phase number of fmcg , automobile
and other companies have realized the potential of rural markets and market
their products aggressively in rural areas.
Rural products also gain significance
growth with the development of infrastructure specially growth in logistics.
The rural environment
The demographic environment
Rural population –
grown by 200 million(20 crore) in last two
decades
still around 70% of Indian population
leaves in rural areas
Family structure –
Traditionally joint family but gradually
changing to nuclear model
Age – 35% of rural population is in the age
of 15-34 years
Education – 20% of the rural population is
SSC/HSC pass out. Literacy 63%
Occupation – agriculture is the principal
occupation but there is a increase in shop/trade, skilled job, salaried jobs
etc.
Landownership - 94 % of small farmers owned
around 63% of farming land in India
The physical environment
Settlements –
scattered and clustered
farmers generally live in abadi (village)
village is generally dominated by a single
caste people
the rural housing population
kuccha
semi pucca
pucca
the social and cultural environment
socio cultural regions (SCR) – a socio
cultural region (SCR) is a group of districts club together based on linguistic
homogeneity, combined with geographical contiguity, financial, economic and
administrative homogeneity, and regionalization of culture and lifestyle.
India is divided into 56 SCR. By dividing
lager SCR , a total of 90 distinct regions are there in India.
The village community
The village community is generally governed
by the council of elders (panchayat). The numerous disputes are solved through
panchayat only.
But now trend is changing as more young
educated class has started active participation in the village community.
The caste system
Our rural India is highly dominated with
this caste system
The political environment
The political environment of rural India is
mainly governed by gram sabhas and panchayati raj institutions.
The technological environment
The changes in the rural technological
environment is triggered by
a)
Rapid mechanization
b)
The information revolution
c)
Communication technology
revolution
The rural economic
environment
From slow growth now witnessing a fast
growth
The rural economic
structure
The rural
infrastructure
To built the rural infrastructure gov. introduce
a flagship program called “Bharat Nirman”.
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Component
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Target
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Irrigation
|
To create 10 million
hectares of additional irrigation potential
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Roads
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To provide all weather
connectivity to all habitation with over a 1000 population (500 for hilly
areas)
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Electricity
|
To provide electricity
to 1,25,000 villages (23 million households)
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Housing
|
To construct six
million houses
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Drinking Water
|
To provide drinking
water to 55067 uncovered habitations by 2009, all habitation with failed
sources and water quality problems will be addressed
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Telephone Connectivity
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To connect all habitations
|
Source : www.bharatnirman.gov.in
The government rural
employment generation schemes;
a)
The Mahatama Gandhi National
Rural Employment Guarantee Act (MNREGA)
b)
The Swarnjayanti Gram Swarojgar
Yojana (SGSY)
c)
The Pradhan Mantri Rojgar
Yojana (PMRY)
The Consumer Buying
Behaviour Model
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The major factors
contributing growth of rural markets are:
a)
The rising middle class young
population
b)
Increasing per capita income
c)
Increase in consumption
d)
Increased presence of cable tv
in rural areas
e)
Increased presence of
telecommunication
f)
Growth in rural infrastructure
like roads, transports, electricity etc.
g)
Increased literacy in rural
areas
h)
Rise in nuclear families
i)
Govt. schemes
j)
Rising employment opportunities
in rural areas etc.
