Rural Marketing Charecters Challenges And Strategies Marketing Essay

plain Marketing Ch arcters Challenges And Strategies Marketing Essay boorish markets wee-wee acquired signifi stick outce in India as the overall growth of the economy has resulted in substantial increase in the buying power of verdant communities. As urban markets atomic number 18 getting saturated and competitive, companies focus themselves in capturing the capacious homespun market. Go hoidenish is the slogan of selling gurus after analyzing the socio-economic changes in colonisations. Rural markets accounts for 54% of FMCG and 60% of durable goods. Rural consumption is getting high as the technology is advancing ein truthwhere and also buying innovation and demand of the inelegant consumers have changed from base low- hurtd harvest- time to luxurious ones due to their increased income.dynamics of arcadian markets differs from former(a) market types and similarly its strategies also differ from the marketing strategies aimed at the urban consumers. A firm seeking th e shargon of this hoidenish market has to work for it as the market includes mixture of problems much(prenominal) as physical distance, communication risks due to illiteracy, differed tastes and attitudes of plain consumers, risks in setting suitable pricing and dissemination dodge and so on considering the environment in which the country-bred market operates and other related problems, it is doable to originate effective strategies for cracker-barrel marketing. olibanum future is precise promising for those who notify understand the dynamics of rural markets.Character of rural market1. The households belonging to the middle-income and above categories that constitute the bulk of the consuming class had been progressively steadily over the years.2. The rural income is seasonal in nature and to a great extent influenced by non-controllable factors such as draughts and floods, crop failures due to pests, and similar factors3. The rural market in India is vast and sca ttered and offers motley opportunities in comparison to the urban sector. It covers the maximum population and regions and thereby the maximum act of consumers.4. The steps taken by the government of India to initiate proper(ip) irrigation, infrastructural developments, pr withaltion of floods, grants for fertilizers, and various schemes to cut sight the poverty line have improved the conditions of rural masses resulting in increased rural consumption.5. During the in conclusion decade the rural consumers were in need for low end products which would meet their basic demands and necessities. But of recently due to change in technology and rather advancement in technology, the demand for people have also changed and the buying pattern which initially comprised of basic products have now shifted to luxurious products.6. Media reach is a strong reason for the penetration of goods like cosmetics, mobile phones, etc., which be yet used by the urban people. Increasing aw atomic n umber 18ness and knowledge on different products and smears accelerate the demand.7. Sales provide be high in rural areas during harvesting periods as the income entrust be higher during that period.Characteristics of rural consumersPeople in rural areas have poor job opportunities than urban.The rural consumer is very conscious about getting judge for money.He understands symbols and colors better, and looks for endorsement by local leaders or icons.He doesnt like to devote bare(a) for frills he plunder non use.He has a very high involvement in any product purchased especially when he decides to buy high-end products, which cost a few hundreds or special Ks of rupees.The rural market of India is a geographically scattered market.Rural consumers continue to be marked by low purchasing power.The rural consumers are marked by a conservative and tradition-bound lifestyle.Rural consumers buy small packs, as they are perceived as value for money.There is carry stickiness, wher e a consumer buys a print out of raiment and not really by choice.The rural consumers of India are a tradition bound community religion, assimilation and even superstition strongly influence their consumption habits.ChallengesThere are several thornyies confronting the effort to fully explore rural markets. The concept of rural markets in India is still in evolving shape, and the sector poses a variety of challenges. Unlike urban markets, rural markets are difficult to predict and possess special characteristics1. Difficulty in Payment- collectionThe majority of rural population is still unbanked. Non cash collections are not possible and even cash collections are also difficult as technical advancements in banking sector has not still reached in rural areas.2. Understanding the Rural ConsumerUnlike urban consumers, rural consumers taste and preferences are difficult to understand as their choices were influenced by some factors.3. Poor InfrastructureLack of buildings, electr icity, water supply etc affects the basic business functions.4. Physical Distri neverthelessionPoor roadway connectivity is often a big challenge for the rural vendors to transport their products or services to the rural consumers. Only 40% of the villages in India have proper road connections.5. Shortage of retail outlets Non-availability of adequate retail outlets is a major problems faced by the marketers.6. IlliteracyRural folks do not understand clever, gimmicky, quick (fast-paced), suggestive and hi-tech ad films. And also it is very difficult to make the rural consumers to understand the advancement campaigns and its theme and also the usage of a product.7. scant(p) storage facilities and wareho development leads to inadequate stocking of products.8. Highly credit driven market and low investment mental object of retailers.A rural consumer generally poses the habit purchasing goods for credit due to their low income. But financially unsound retailers cant give credit.9. Dispersed or scattered rural population it is very big-ticket(prenominal) to conduct market promotion campaigns and to meet other expenditures over scattered market.10. Large number of intermediaries track to higher costs.Due to physical distance, a producer need the help of so many intermediaries in selling his product to the rural consumers. High intermediation increases price.StrategiesMarketers need to understand the psyche of the rural consumers and hence act accordingly. Rural marketing involves more intensive personal selling efforts compared to urban marketing. Firms should refrain from intention goods for the urban markets and subsequently pushing them in the rural areas. To effectively tap the rural market, a brand must associate it with the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festiva ls, melas, and other activities where they assemble.Considering the environment in which the rural market operates and other related problems, it is possible to evolve effective strategies for rural marketing. The strategies discussed here though not universally relevant depend upon product characteristics, the targeted segment of the rural market, the choice of the rural area and its economic condition.A. Product strategies purposeful product strategies for rural market and rural consumers are discussed here.1. Small unit and low priced packing material large pack sizes are out of reach for rural consumers because of their higher price and usage habits. This method has been tried and true by other products like shampoos, biscuits, pickles, Vicks five gram tins, etc. the objective of giving smallpublicitys is to keep the price low so that the entire rural community can try. This may not be possible in all types of products except some products such as shampoo, soaps and other cos metics etc.2. Designing unfermented innovative and attractive productsA close observation of rural household items indicates the importance of redesigning or modifying the products. The manufacturing and marketing men can think in monetary value of new product designs specially meant for rural areas guardianship their lifestyles in view. The new products should be designed in such a way that it should suit the lifestyle, needs and anxiety of the rural consumer.3. Designing strong and sturdy productsSturdiness of a product either in terms of weight or appearance is an important fact for rural consumers. Generally a rural consumer handles any product roughly. thusly the product meant for rural areas should be sturdy enough to stand rough use and storage. People in rural areas like bright flashy colors such as red, blue, atomic number 19 etc., and feel that products with such colors are sturdy but they are more concerned with the returns of the item also.4. Creating a good bran d nameThe rural consumers are more concerned with the brand name of the product than its utility. The brand name awareness in the rural areas is fairly high. A brand name and logo are very essential for rural consumers for it can be easily remembered and identified. Because rural consumers often used to stick towards a particular product by considering its brand name.B. determine strategiesPricing strategies are very much linked to product strategies. Some of these strategies are mentioned here.1. Low cost/ tawdry productsThis is a common strategy being adopted widely by many manufacturing and marketing men. Rural consumers wont like to have high-priced commodities due to their low income. So Price can be kept low by small unit packing resulting in higher sales.2. Avoid ripe packingSimple package can be adopted which can guide down the cost as it is presently being done in the case of biscuits. Some innovation in packing technology is very necessary for rural markets. Sophisticat ed packing can be avoided as it bears extra cost which may losses the number of consumers due to high price.3. Refill packs/reusable packagingThe packaging material used should preferably lend itself for reuse in rural areas. An ideal example in this direction can be the packing of fertilizers. Now companies have started packing fertilizers in LDPE or HDPE sacks, which are not only tamper proof but also reusable. But it would be applicable only in case certain products.4. Application of value engineeringThis is a technique which can be tried to evolve cheaper products by substituting the costly raw material with the cheaper one, without sacrificing the quality or practicable efficiency of the product, for example in food industry, Soya protein is being used instead of milk protein. take out protein is expensive while Soya protein is cheaper but the nutrition value is same. This technique yields itself for application in many engineering or product designed areas so that the price can be kept at an affordable level. These areas have to be explored by manufacturing and marketing the pricing strategy for rural market pull up stakes depend upon the scope for reducing the price of the product to suit the rural incomes and at the same time not compromising with the utility and sturdiness of the product.5. provision of free frills or products along with the selling product will make an impression among the rural buyers that the price they are paying for the product is not high, as they are getting extra free products or services.c. Distribution strategiesRural India is widely populated and so it is apparent that the statistical distribution costs are high. Here, one needs to deploy innovative approaches in order to bring down the costs.Most manufacturers and marketing men do have a distribution arrangement for village with a population of at least 5000 people. While it is essential to formulate specific strategies for distribution in rural areas, the characterist ics of the product, its shelf life and other factors have to be kept in mind. The distribution strategies that are specifically designed for rural areas are through co-operative societies, public distribution system, multi-purpose distribution centers, etc.some other distribution strategies that can be adopted in rural marketing were1. Using Delivery vans to deliver products to niche and corner of villages.2. topical anestheticized way of distributions such as melas, road outlets etcTo succeed in Indian rural market the producers or marketers have to reach the nook and the corner of the country. They have to reach the local Paan wala, Local Baniya only then they can succeed. MNC shoe giants, Adidas, Reebok, and Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India, and to capture the market share in India they after preferred Local market shoe sellers.3. Conduction of special sales programmes through temporary street stalls or showrooms in rural areasThis is one of the strategies widely adopted by automobile marketers. This strategy is suitable for high end products.4. Direct distributions by opening outlets in villages avoiding intermediaries that will also cut back price5. By offering certain discounts, the local rural distributors can be made to brainwash the consumers about the new product as rural consumers believes the word of the familiar person in purchasing a product. Thus risk involved in sales and distribution of the new product can be somewhat reduced.D. Promotion strategiesMass media is a powerful medium of communication. It could be television, cinema, print media, and communicate and so on. The other means of mass media available are hoardings/wall paintings, shanties/hats/melas, non-price competition, special campaigns etc. anyways these, other mass media like hand bills and booklets, posters, stickers, banners of the schemes etc.Following are some of the promotion strategies that can be applied in order to promote a new product in the rural market1 publicizing with local ambassadors is a right choice and also advertisements can be made colorfully as rural people like that.2 providing the new product as a free product along with some other products that were already going in the market. So that, the consumers will be aware of the new product.3 making a tie up with the ongoing market retailers in order to enhance proper distribution and to expand the business in the initial promotion stage. After gaining some goodwill and market, the producer can either continue with the ongoing retail distribution or it can open its own retail shops.4 In the promotional stage, the goods and services can be given at low prices that would attract the rural consumers as they often prefer inexpensive commodities with higher utility.In addition to all these strategies, there are some other strategies that a marketer should follow or implement in order to promote and succeed in rural market. They are as followsBY TARGET CHANGING PERCEPTIONIf one go to villages they will see that villagers using Toothpaste, even when They can use Neem or Babool sticks or Gudakhu, villagers are using soaps like Nirma rose, Breeze, Cinthol etc. even when they can use locally manufactured very low priced soaps. Villagers are constantly look forward for new branded products. What can one infer from these incidents, is the paradigm changing and customer no longer price sensitive. Indian customer was never price sensitive, but they want value for money. They are ready to pay premium for the product if the product is offering some extra utility for the premium. Thus a marketer has to design his marketing trend according to the changing perception of the rural consumers.BY PROVIDING WHAT CUSTOMER WANTThe customers want value for money. They do not see any value in frills associated with the products. They aim for the basic functionality. However, if the sellers provide frills free of c ost they are happy with that. They are happy with such a high technology that can fulfill their need. Motorola has launched, seven models of Cellular Phones of high technology but none of the rural consumers preferred it as they dont even know or wants or cannot use such advanced technologies in that models. On the other hand, Nokia has launched a simple product 1100, which has captured the wide rural market.BY DEVELOPING RURAL-SPECIFIC PRODUCTSMany companies are developing rural-specic products. Keeping into consideration the requirements and necessities of the rural consumers, products can be lastly designed which aptly suits the rural necessities.for example some bike manufacturers are designing their product very toughly which will suit the poor road facilities of rural India. (Hero Honda splendor)PAINTINGSA picture is worth thousand words. The message is simple and clean. Rural people like the sight of bright colours. COKE, PEPSI and TATA traders advertise their products throug h paintings.thus advertising through paintings can be made.ConclusionIndian rural marketing has always been complex to fancy and consist of special uniqueness. However many companies were successful in entering the rural markets. They proved that with proper understanding of the market and innovative marketing ideas, it is possible to bag the rural markets. It is very difficult for the companies to drip the opportunities they could from rural markets. As two-thirds of the Indian population live in rural areas, the market is vast than expected. For the companies to be successful in rural markets, they have to overcome certain challenges such as pricing and distribution.Thus by following the above stated innovative strategies, companies can capture markets and withhold in rural areas.AUTHOR Pradeep kumar.B, SIIMS, Pollachi.EMAIL IDemailprotectedPHONE NUMBER 9787077523