Rural Marketing vs.

Global Marketing

Academic Year:-
2009 2011

Class:-
M.B.A.(sem-2)

College:-
Marwadi Education Foundation Group
of Institute, Rajkot.

Guided By:-
Ms. Rhuta Mehta

Prepare By:-
Manali Ramani
 DECLARATION

I, undersigned Miss MANALI M. RAMANI the student of

M.B.A hereby declare that presented in this report is my own
work and has been carried out under the supervision and
guidance of Prof. Rhuta Mehta of Marwadi Education
Foundation Group of Instituta, Rajkot.

This report has not been previously submitted to any other

university for examination.

Date:-
Place: -Rajkot
Signature

-------------------------
(RAMANI MANALI M.)
 PREFACE

I am deeply grateful to all those who have with such god

grace given me their time and energy to supply valuable
opportunities, opinions and facts.

Very first, I would like to acknowledge deep debt of

gratitude that I owe to the all customers for their kind,
permissive and co-operative behavior.

Much of any merit this report may have is due to the

generosity of these demand above as well as others too
numerous to mention, who have put their knowledge and
practical experience.

I take this opportunity to sincerely thank Prof. Rhuta

Mehta for their continuous support.
 ACKNOWLEDGEMENT

It is pleasure at a time of presenting this report in front of

all concerned authorities. I would like to thank all those who
have helped me a lot to collect all the necessary information.

I am thankful to all loyal customers who gave me true and

necessary information while preparing the report, I really thank
them all.

At last thank to Ms. Rhuta Mehta to guide me very well.

 Objective of Study

Behind every activity there is an object. Objectives

are the first and the foremost steps in the planning process. If
you don’t know why you are doing the activity, then you may
be doing improper activity. In the same way, if once target is
decided, and then the way could be easily found out. Following
are the main objectives of our study.

 To find out influence in buying decision process.

 To find out effectiveness of advertising.
 To find out factors affecting to the purchase of cars.
 To study the marketing mix of the strategy.
 INTRODUCTION

Marketing management is a business discipline which is

focused on the practical application of marketing techniques
and the management of a firm's marketing resources and
activities. Rapidly emerging forces of globalization have
compelled firms to market beyond the borders of their home
country making International marketing highly significant and
an integral part of a firm's marketing strategy. Marketing
managers are often responsible for influencing the level, timing,
and composition of customer demand accepted definition of the
term. In part, this is because the role of a marketing manager
can vary significantly based on a business' size, corporate
culture, and industry context. For example, in a large consumer
products company, the marketing manager may act as the
overall general manager of his or her assigned product To
create an effective, cost-efficient Marketing management
strategy, firms must possess a detailed, objective understanding
of their own business and the market in which they operate. In
analyzing these issues, the discipline of marketing management
often overlaps with the related discipline of strategic planning.

Marketing research as the systematic design, collection,

analysis, and reporting of data and findings relevant to a
specific marketing situation facing the company.
 DATA COLLECTION
There are mainly two methods for the collection of the
data.

1. Primary Method :

In this method, researchers collect the data from

customers, target market and other path. so primary data are
freshly gathered data for a specific purpose or for a specific
research project.

Primary data can be collected in 5 ways:

i. Observational research
ii. Experimental research
iii. Focus group research
iv. Survey research
v. Behavioral data
 2. Secondary Method:

According to this method, researchers collect the data with

the help of firm’s catalogue and annual reports, News Paper,
magazine etc. thus secondary data are data that were collected
for another purpose, and already exist somewhere.

Here, the researcher used secondary data.

 RESEARCH METHODOLOGY

Research in common parlance refers to a search for

knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic.
Research in academic activity and as such the term should be
used in a technical sense. Research is, thus, an original
contribution to the existing stock of knowledge making for its
advancement.

Whereas Research Methodology is a way to systematically

solve the research problem. It may be understood as a science
of studying how research is done. In it we study the various
steps that are generally adopted by a researcher in studying his
research problem along with the logic behind them. It is
necessary for the researcher to know not only the research
methods / techniques but also the methodology.
 Thus, when we talk of research methodology we not only
talk of the research methods but also consider the logic behind
the methods. We use in the context of our research study.

There are so many topics for research of marketing. Here

the researcher analysis is on the bases of preliminary data.
 Rural marketing

Rural Markets are defined as those segments of overall

market of any economy, which are distinct from the other types
of markets like stock market, commodity markets or Labor
economics. Rural Markets constitute an important segment of
overall economy, for example, in the USA, out of about 3000
countries, around 2000 counties are rural, that is, non-
urbanized, with population of 55 million. Typically, a rural
market will represent a community in a rural area with a
population of 2,500 to 30,000.

In recent years, rural markets have acquired significance in

countries like China and India, as the overall growth of the
economy has resulted into substantial increase in the purchasing
power of the rural communities. On account of the green
revolution in India, 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 taken shape. Sometimes, rural marketing is confused with
agricultural marketing– the later denotes marketing of produce
of the rural areas to the urban consumers or industrial
consumers, whereas rural marketing involves delivering
manufactured or processed inputs or services to rural producers
or consumers.

Also rural market is getting an importance because of the

saturation of the urban market. As due to the competition in the
urban market, the market is more or so saturated as most of the
capacity of the purchasers have been targeted by the marketers.
So the marketers are looking for extending their product
categories to an unexplored market i.e. the rural market. This
has also led to the CSR activities being done by the corporate to
help the poor people attain some wealth to spend on their
product categories.

Strategies:
1. Client and location specific promotion
2. Joint or cooperative promotion..
3. Bundling of inputs
4. Management of demand
5. Developmental marketing
6. Unique selling proposition (USP)
7. Extension services
8. Business ethics
9. Partnership for sustainability
 Rural products of India are unique, innovative and have
good utility and values. Large number of these rural products
(like handicraft items, food products, embroidery, clothes &
other products) sustains a significant segment of the population
in the rural areas. Several attributes of rural products can be
identified, for which, it has a demand in the market. Out of the
lots, ‘ethnic origin’ and ‘indigenous design & appearance’ are
two traits of rural products, attracting a premium in the market.
But, contrary to this, the non-uniformity of rural products (from
one another) and lack of its quality control measures has been
creating a negative demand. Besides, the small sized and
dispersed production units of these rural products hinder
realization of the economies of scale in marketing and result in
high transaction costs per unit of output. Niche-based products
have no local market. Products in local use are also not
marketed horizontally; they often first travel down to market
through a long chain of intermediaries and then up to more
difficult locations in the rural areas. In the process, the people in
rural areas suffer from both low prices as producers and high
prices as consumers. In this conflict, rural products loss its
equilibrium and the supply side becomes exponentially high.
Because of this hazard, rural entrepreneurs face acute economic
loss and rural markets become stagnant. Therefore, there is an
emergent need for Building sustainable market linkages for
rural products, so that, it can be connected to larger markets and
farmers can get a sustainable livelihood.
 Present position
Rural markets, as part of any economy, have untapped
potential. There are several difficulties confronting the effort to
fully explore rural markets. The concept of rural markets in
India, as also in several other countries, like China, is still in
evolving shape, and the sector poses a variety of challenges,
including understanding the dynamics of the rural markets and
strategies to supply and satisfy the rural consumers.
 Example of Mahindra &
Mahindra for rural marketing

Mahindra jeeps have reigned on Indian roads since 1949.

Mahindra jeep assembly started from that year while
collaboration with Willys jeeps came in 1954. Mahindra began
manufacture of light commercial vehicles in 1965 jointly with
Sperry Rand Corporation. In 1991, the Mahindra Commander
was introduced followed by Mahindra Armada in 1993. In
1995, Mahindra Ford India was established. In 2000, Mahindra
adopted a new logo and launched the Mahindra Bolero. 2001
saw the coming of the Mahindra Maxx, and 2002 witnessed
arrival of the Mahindra Scorpio. In 2005, Mahindra established
Mahindra Renault to build and market Sedans.

The Mahindra Bolero is Mahindra's leading presentation in

the utility vehicle segment. It comes with a brand new style and
time tested performance. The Mahindra Bolero lives up to its
reputation of being a tough vehicle. Mahindra (SUV) The
Mahindra Bolero with its diesel variants targets the middle class
consumer with Mahindra SUVs at on-road prices ranging
between rupees five and seven lakhs. Mahindra Bolero variants
include Mahindra Scorpio (SUV).
 Mahindra Bolero

The Scorpio is Mahindra's world class presentation and

flagship adventurous SUV. Mahindra (SUV) The Mahindra
Scorpio with its diesel variants targets the middle class
consumer with Mahindra SUVs at on-road prices ranging
between rupees eight and ten lakhs.

Mahindra Scorpio
 Mahindra & Mahindra in rural area

While rural markets have experienced significant growth,

their broadband penetration of 75 percent remains below the
national average of 89 percent. Lower broadband penetration in
rural areas is compounded by lower Internet usage overall. A
2007 analysis by the U.S. Department of Agriculture Economic
Research Service, found 63 percent of all rural households had
at least one member access the Internet, compared to 73 percent
of urban households.

Mahindra First Choice, an arm of Mahindra and Mahindra

Group (M&M) which sells second hand car, today said it would
set up sales and service outlets in rural areas across the country
to sell one lakh vehicles by 2015.
Mahindra & Mahindra with social activity

Mumbai, October 4, 2005: Mahindra & Mahindra

Financial Services Ltd (Mahindra Finance), India's leading
private rural finance company and a 97% subsidiary of
Mahindra & Mahindra Ltd., and Hindustan Petroleum
Corporation Limited (HPCL), India's second largest Oil
Refining and Marketing Company today announced the signing
of a tie-up to explore synergistic business opportunities between
them. Through this tie up, Mahindra Finance will get access to
HPCL's wide rural distribution network across India and would
be able to offer value-added financial products and services to
its rural and semi-urban customers.

Communication is the vital element of rural marketing. It

should serve to resolve social conflicts, encourage cooperation
and strengthen competitive spirit during interactions between
rural and urban as well as within rural areas. Another critical
point for communication is the point of conversion of ruralite
from an "induced beneficiary" to an "autonomous buyer".
 Urban marketing

Global marketing as “marketing on a worldwide scale

reconciling or taking commercial advantage of global
operational differences, similarities and opportunities in order
to meet global objectives.”

If the exporting departments are becoming successful but

the costs of doing business from headquarters plus time
differences, language barriers, and cultural ignorance are
hindering the company’s competitiveness in the foreign market,
then offices could be built in the foreign countries. Sometimes
companies buy firms in the foreign countries to take advantage
of relationships, storefronts, factories, and personnel already in
place. These offices still report to headquarters in the home
market but most of the marketing mix decisions are made in the
individual countries since that staff is the most knowledgeable
about the target markets. Local product development is based
on the needs of local customers. These marketers are considered
polycentric because they acknowledge that each market/country
has different needs.
Elements of the global marketing mix

1. Product

A global company is one that can create a single

product and only have to tweak elements for different markets.
The product packaging in every country incorporates the
contour bottle design and the dynamic ribbon in some way,
shapes, or form.

2. Price
Price will always vary from market to market. Price is
affected by many variables: cost of product development
(produced locally or imported), cost of ingredients, cost of
delivery (transportation, tariffs, etc.), and much more.
Additionally, the product’s position in relation to the
competition influences the ultimate profit margin. Whether this
product is considered the high-end, expensive choice, the
economical, low-cost choice, or something in-between helps
determine the price point.
3. Placement
How the product is distributed is also a country-by-country
decision influenced by how the competition is being offered to
the target market. Placement decisions must also consider the
product’s position in the market place.

4. Promotion
After product research, development and creation,
promotion (specifically advertising) is generally the largest line
item in a global company’s marketing budget. At this stage of a
company’s development, integrated marketing is the goal. The
global corporation seeks to reduce costs, minimize
redundancies in personnel and work, maximize speed of
implementation, and to speak with one voice.
Example of Chevrolet in urban Marketing
The 1929 Chevrolet International AC Coupe was the first
six-cylinder engine introduced by the company since 1915. The
new six made international headlines, while Chevrolet hailed it
as "A Six for the Price of a Four."

The Chevrolet car or the Chevy is close to the heart of

Indian consumers. The Chevrolet entered India first in 1928.
Chevrolet's manufacturer, General Motors, was the first
company to set up an automobile assembly plant in India. The
first Chevrolet car in India was the National Series AB Touring
with wooden wheels. Chevrolet, however, had to close shop in
India in 1952-1953 following Indian national policy, and the
Indian Chevrolet went on a sabbatical.
 The Chevrolet made its comeback in 2003. Primarily GM
launched the European brand Opel in the late 90s in India.
When Opel failed to interest the Indian consumer, it was taken
off the market and Chevrolet came in. With Chevrolet's entry,
in 2003, sales shot up immediately. Prior to marketing
Chevrolet, GM had sold only 8000 odd units in 2002. With
Chevrolet's arrival, 21,269 units were quickly sold within the
same financial year. Chevrolet proved its worth as soon as it
reentered India and Chevrolet success continues to lead GM till
date.

GM

Popular Chevrolet SUVs range in price from Chevrolet

cars costing a bit above rupees six lakhs eighty thousand to
Chevrolet cars costing a bit below rupees ten lakhs thirty five
thousand.
 Chevrolet Tavera (SUV)

A product of General Motors, Tavera has carved a niche

for itself as multi-utility vehicle. Its 'Ergomax' seating with
flexible options, endows matchless space and comfort to the
passengers. Chevrolet (SUV) The Chevrolet Tavera with its
petrol and diesel variants targets the middle class consumer
with Chevrolet cars ranging between rupees six and ten lakhs.
The Chevrolet SRV with its petrol variants targets the middle
class consumer with Chevrolet cars ranging between rupees
seven lakhs and eight and a half lakhs.
 Contribution of rural area & urban
area in national income

Contribution in National Incom

Rural Area Urban Area

45%

55%

According to my survey in national income rural area

contributes the 45% and urban area contributes 55%.so, here we
can say that rural area is also important in marketing field.

In rural area somehow it is difficult to collect information

and understand the people’s mentality but then also they are part
of India.
 Regarding survey

I make survey on the basis of preliminary data in which

two technic I use which are:
1. Observation research
2. Behavioral data

First of all , I observe the customer that :

 How they talk with other person?
 How much they are aware about new product?
 How much they have knowledge regarding the
product?
 How is their attitude?
 How much they are enthusiasm in listen proper
information?
 Sometime when we ask them question they doesn’t
give the answer

And when they get information from other then,

 How they react?
 What is their question?
 How they give answer?
 They are agreeing with that right person or make
argument on their information?
 Review about research

Here, I make research in between Mahindra & Mahindra

and Chevrolet.

Both are car manufacturing company. Mahindra &

Mahindra make a rough &tough car which are useful in under
develop areas or rural area while Chevrolet make a delicate and
facilitate cars which are mostly used in urban and developed
area.

Chevrolet’s car is costly then the Mahindra & Mahindra.

Also some different like body of the car, average, some facility,
in spare parts, etc….
 Chevrolet focusing on urban area while Mahindra &
Mahindra focusing on both urban as well as rural.

Main difference in between is price :Chevrolet’s starting

price is around 5,00,000 while in Mahindra & Mahindra make
car at a low price which is affordable by lower class people
also. And they also provide extra benefit like installments other
extra benefits which are helpful to farmers.
 MY POINT OF VIEW

 In rural area nobody gives perfect answer because

there is more illiterate people and very religion with old rules &
regulation.

 While in urban areas people are educated and

understand the entire situation so they give proper information.

 In urban area people are highly knowledgeable so no

need to give more information or detailed data.

 So, in rural area I do my research in mouth to mouth

asking question.
 BIBLOGRAPHY

 Marketing Management (13th edition)

 Surch Engine
o Yahoo.com
o Google.com
o Wikipedia

 Web sites
o www.mahindra.com
o www.chevrolet.com
o www.research.com
 CONCLUSION

I feel that I am very lucky to make this research report.

There are so many people behind this report who help me and
give enough guidance to make this report successful.

After having all the required information for preparing my

report. I have tried to analyze each and every function of the
Rural Marketing & Urban Marketing for both the company
Mahindra & Mahindra and Chevrolet.

I had unique experience of research about this topic.


REMARKS