Rural Marketing Strategies

Marketing Strategies
for Rural Markets.

Strategies for rural marketing
• Product Strategies
• Pricing Strategies
• Distribution Strategies
• Promotion Strategies
• Marketing Strategies
• Sales Strategies
Rural market Segmentation
1. Occupational segmentation:
• Artisans, Farm laborers
• Small farmers, tenant farmers
• Medium level farmers
• Large farmers
1. Sociological Segmentation
• Zamindars
• Rich Farmers
• Agricultural farmers
3.TRMI ( Thomson Rural Market Index):
• Agricultural laborers
• Gross cropped area
• Gross irrigated area
• Area under non-food crops
• Pump sets
• Fertilizer consumption
• Tractors
• Rural credit
• Rural deposits
• Villages Electrified
4.Lin Quest
• Demographic
• Income
• Literacy
5.MICA Rating
• Total volume of agricultural output
• Bank Advances
• Cropped Area
• Irrigated Area
• Number of Cultivators
• Fertilizers consumption
THOMPSON RURAL MARKET INDEX

Attempt to assess the potential of rural markets has been
made by Hindustan Thompson Associates Ltd.
Districts considered : 383

Rural market Index :355
Factors considered for Rural Market Index: 26
26 Rural Market Index
I)Demographics
1. Area of districts in Sq Kms
2. Population- Rural in numbers
3. Males- in numbers
4. Females – in numbers
5. Density per Sq. Kms
6. Percentage distribution of population by population strata
7. Number of Villages
8. Percentage distribution of villages by population strata
9. Literates- Rural ( In numbers)
10. Percentage of literacy
11. Literacy males ( in Numbers)
12. Literacy females ( In Numbers)
II) Occupation Pattern
13. Cultivators ( Total Numbers)
1. Agri- laborers
2. Non Agri-labourers
III) Agricultural Related Data

16.Gross crop area in hectares
17.Gross Irrigated area in hectares
18.Area under non-food crops in hectares
19.Average size of operation holding in hectares
IV) Agricultural Inputs Data

20.Pump sets and Tube Well ( Numbers)
21.Fertilizers consumption in metric tones
22.Number of Tractors
23.Percent of village electrified
V) Commercial Banks Data
24.Rural Branches number
25.Deposits in Rupees
26.Advances in Rupees
Classification of Markets
Class Range Number of Percentage

Districts
A 60 to 100 22 17.80
B 40 to 59.9 39 20.50
C 30 to 39.9 54 20.40
D 20 to 29.9 86 23.00
E Below 20 154 18.30
Total 355 100

Market Research in Rural
• The Systematic design, collection, analysis and reporting of
data and findings relevent to a specific marketing situation
facing by the company in rural market.
• “The systematic planning, gathering, recording and analyzing

data about problems related to marketing of goods and
services.”
Research Process
• Defining a research problem
• Finalizing a research design
• Developing a research hypothesis
• Planning the research methodology
• Data collection
• Data analysis
• Conclusion and recommendations
Types of Rural Studies
• Quantitative Studies
- Since penetration and consumption of most products are low,
the market is under development, hence quantitative studies
cannot be done for most products.
- Qualitative studies
- 4As of Rural marketing- Acceptability, Affordability, Awareness
and Availability
- U &A ( Usage and Attitudes) or KAP ( Knowledge, Attitude and
Practices)
- Feasibility
- Mapping distribution, promotion and communication channels.
Segmenting Rural Consumers
• Choosing of Advertising media
• Increasing sales Volume
• Benefits the consumers
• Better utilization of marketing resources
• Discovering marketing opportunities
• Specialized marketing
• Provision of information
• Evaluation of marketing activities
• Marketing efficiency
• Formulation of Marketing mix
Marketing Mix for Rural
Markets
1.Segmentation and Targeting
Rural consumers are not homogeneous
2.Product Mix
-Smaller Packages
-Sturdy
-Utility products
3.Price Mix
-Low cost
4. Distribution Mix
- It should be strong because less population density poor
transport and communication scattered outlets.
5. Promotion Mix
-TV
-Radio
-Print media- not advisable
-Films with mobile Vans
Benefit of PPP model in Rural
India.
• Less pressure on stage governments budget for developmental
infrastructure.
• Ensures higher level of service and quality.
• Alleviates cost and time constraints
• Increases private sector participation and contribution to
economic growth and development.
• Creating a sense of ownership among private sector players.
Role of NGOs in Rural
Marketing
• NGOs involved in marketing development can be classified
into three types:
1. Primary level NGOs
NGOs who mobilize their own resources.
2. Intermediate NGOs:
NGOs procure funds from various agencies.
3. Grass Root Level NGOs:
NGOs who conduct field activities by establishing direct
contact with the grass root needy people.
• Stimulation
• Counseling
• Assistance
Strategies for promotion of
Organic farming in Karnataka.
• The Government of Karnataka adopts the following strategies
for the promotion of organic farming under the Organic
Farming Policy.
1. Integrated Approaches for Promotion of Organic Farming.

2. State level Empower Committee for Promotion of Organic
Farming.
3. Mini Mission On Organic Farming.
4. Krishika Samaj in Promotion Of Organic Farming.
5. Self Help Groups (SHGs)
6. Farmers Cooperatives.
7. Formation of Farmers Company (FC)
Contd.
8. Area approach/commodity/crop approach.
9. Mixed Farming, Soil and water Conservation.
10. Assistance for conversion and certification
11. Marketing of Organic Products.
12. Credit Facility.
13.Export Promotion.
14.Research and Development.
15.Training and Extension and study Tours.
Strategies for NGOs in Rural
Marketing.
1. Know your target audience
2. Clearly chalk out your goals
3. Make the marketing strategy a strategic one.
4. Ensure the team speaks same language
5. Make the best match of quantity and quality
6. Choose the medium carefully.
NSSO Rural Finding.
• Farming Remains at the center of rural Indian Life .
• Six out of 10 are farm households in rural India.
• 27 million more rural households are buying PDS rice in India.
• Monthly per consumer Expenditure in rural India was
estimated Rs1053.56
• 20% of people are able to access to computer and internet.
• 71% Literacy rate in Rural areas
• Using MMRP major states like kerala, Punjab, Haryana stand
at top in rural ranking
• Lowest states are Bihar, Chhattisgarh and Orrisa
• Consumption pattern 57% on food like 14% cereals, 8% for
milk, 8% vegetable, 8% clothing.
Thank you

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Marketing Strategies

for Rural Markets.

THOMPSON RURAL MARKET INDEX

Districts considered : 383

III) Agricultural Related Data

IV) Agricultural Inputs Data

Class Range Number of Percentage

E Below 20 154 18.30

Total 355 100

• “The systematic planning, gathering, recording and analyzing

1. Integrated Approaches for Promotion of Organic Farming.

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