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CHAPTER -1

Introduction to The Topic

Ruralmarketing

Rural marketing involves the process of developing, pricing, promoting, distributing rural

specific product and urban market which satisfies consumer demand and also achieve

organization objective.

It is a two way marketing process wherein the transaction can be:

Urban to rural: a major part of rural marketing falls into this category. It involves

the selling of products and services by an urban market in rural area. These

includes: pesticides, FMCG products, consumer durables, etc.

Rural to urban: transactions in this category basically fall under agricultural

marketing where a rural producer seeks to sell his products in an urban market.

An agent or a middleman plays a crucial role in the marketing process. The

following are some of the important items sold from the rural to urban areas:

fruits & vegetables, milk & related products, forest produces spices etc.

Rural to rural: this includes the activity that takes place between the two villages

in the close proximity to each other. The transactions related to the areas of

expertise the particular village has. These include selling of agricultural tools,

cattle, carts and others to other villages in its proximity.

Rural marketing requires the understanding of the complexities. Indian agricultural

industry has been growing at a tremendous pace at a last few decades. The rural areas

are consuming a large number of industrial and urban manufactured products. The rural

agricultural production and consumption process plays a predominant role in developing

the Indian economy. This has designed a new way for understanding a new process

called rural marketing.

The concept of rural marketing has to be distinguished from the process of agriculture

marketing. Marketing is the process of identifying and satisfying customers needs and

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providing them with adequate after sale services. Rural marketing is different from

agricultural marketing, which satisfies marketing to the rural products to the urban

consumer or the industrial markets. Rural marketing basically deals with delivering

manufactured or processed inputs or services to rural producers, the demand which is

basically derived from outcomes.

Rural marketing scientist also term it as a developmental marketing, as the process of

rural marketing involves an urban to rural activity, which is turn in characterized by

various peculiarities in term of nature of market, products and processes. Rural

marketing is differs from agricultural or consumer products marketing in terms of nature

of the transactions, which includes participants, products, modalities, norms and

outcomes. The participants in case of rural marketing would also be different, they

includes: input manufacturers, dealers, farmers, opinion makers, government agencies

and traders.

Rural marketing needs to combine concerns for profit with a concern for the society,

besides being titled towards profit. Rural market for agricultural inputs in a case of

market pull and not market push. Most of the jobs of marketing and selling are left to be

local dealers and retailers. The market for input gets interlocked with the other markets

like output, consumer goods, lab our, and money.

Rural marketing in India is not much developed; there are many hindrances in the area

of market, product design and positioning, pricing, distribution and promotion.

Companies needs to understand rural marketing in a broader manner not only to

survive and grow into their business, but also a means to the development of the rural

economy. One has to give a strategic view of the rural market so as to know and

understand the markets well. In the context of rural marketing one has to understand

the manipulation of marketing mix has to be properly understood in the terms of productusage. Product usage is central to price, distribution, promotion, branding, company

image and more important farmer economics, thus any strategy in rural marketing

should be given due attention and importance by the understanding the usage of

product, all elements of marketing mix can be better organized and managed.

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Innovation in rural marketing

Phase origin Function Major

products

Source

market

Destination

market

Before mid-

1960

(from

independence

to green

revolution)

Agricultural

marketing

Agricultural

products

Rural Urban

Mid-60s

(greenrevolution to

pre-

liberalization

period )

Marketing of

agriculturalinputs

Agricultural

input

Urban Rural

Mid-90s

(Post

liberalizationduring 20th

century)

Rural

marketing

Consumable

and durables

forconsumption

and

production

Urban &

Rural

Rural

21s century Developmental

marketing

All products

and services

Urban &

Rural

Urban &

Rural

source:http://www.whatisindia.com

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Phase1. (From independence to green revolution):

Before the advent of the green revolution, the nature of rural market was altogether

different. Rural marketing then referred to the marketing of the rural products in rural &

urban products.

Phase2. (Green revolution to pre- liberalization period):

During this time due to the advent and spread of the green revolution, rural marketing

represents marketing of agriculture inputs in rural market & marketing of rural products

in urban areas.

Phase3. (Post liberalization period on 20thcentury):

The third phase of rural marketing started after the liberalization of Indian economy. In

this period rural markets represents the emerging, distinct activity of attracting & serving

rural markets to fulfill the needs and wants of rural households, people, and their

occupations.

Phase4. (21stcentury):

Learning from its rural marketing experiences after independence, the corporate world

has finally realized quick fix solution and piecemeal approaches will deliver only limited

results in the rural market. And, if organization wants to tap the real potential of the rural

market; it needs to make a long term commitment with this market. Its approach &

strategies must not focus in just selling products & services, but they should also aim at

creating an environment for this to happen.

The objective of rural marketing in the current phase is the improvement of the quality

of life by satisfying the needs & wants of the customers, not through stand alone

products and services, but by presenting comprehensive & integrated solution which

might involve a set of inter related products & services.

Till recently, the focus of markets of India was the urban consumer and by large

numbers specific efforts were made to reach the rural market. But now it is felt that with

the tempo of development accelerating in rural India, coupled with increase in

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purchasing power, because of scientific agriculture, the changing life style and

consumption pattern of villagers with increase in education, society mobility, improved

means of transportation and communication and other penetrations of mass media such

as television and its various satellites channel have exposed rural India to the outside

world and hence their outlook to life has also changed. Because of all these factors,

rural India is now attracting more & more markets.

Increase in competition, saturated urban markets, more & more new products

demanding urban customers, made the companies to think about new potential

markets. Thus, India rural market has caught the attention of many companies,

advertisers and many multinational companies. According to a recent survey conducted

by the national council for applied economic research (NCAER), the purchasing power

of the rural people has increase due to increase in productivity and better price

commanded by the agricultural products. By and large this rise in purchasing power

remains unexploited and with the growing reach of the television, it is now quite easy for

the marketers to capture these markets.

Rural marketing has become the latest mantra of most corporate. Companies like

Hindustan lever, Colgate Palmolive, Britannia and even multinational companies

(MNCs) like Pepsi, coca cola, L.G, Philips, Kevin care are all eyeing rural market to

capture the large Indian market.

Coming to the frame work of rural marketing, rural marketing broadly involve searching

the rural customers, understanding their needs & wants, supply of goods & services to

meet their requirements, carrying out after sale service that leads to customer

satisfaction and repeat purchase/sales.

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.Nature of rural marketing

Large, diverse and scattered market: rural market in India is large and

scattered into a number of regions. There may be less number of shops available

to market products.

Major income of rural consumer is from agriculture: rural prosperity is tied

with agricultural prosperity. In the event of crop failure, the income of rural

masses directly affected.

Standard of living and rising disposable income of rural customers: it is

known that the majority of the rural population lives below poverty line and low

literacy rate, low per capital income, societal backwardness, low saving etc. but

the new tax structure, good monsoon, government regulation on pricing has

created disposable incomes. Today the rural customer spends money to get

value and is aware of the happiness around him.

Traditional outcome: villages develop slowly and have a traditional outlook.

Change is a continuous process but most rural people accept change gradually.

This is gradually changing due to literacy especially in the youth who have begun

to change the outlook in the villages.

Rising literacy level:it is documented that approximately 45% rural Indians are

literate. Hence awareness has increases and the farmers are well informed about

the world around them. They are also educating themselves on the new

technology around them and aspiring for a better lifestyle.

Diverse socioeconomic background: due to dispersion of geographical areas

and uneven land fertility. Rural people desperate socioeconomic background,

which ultimately affects the rural markets.

Infrastructure facilities: the infrastructure facilities are like cemented roads,

where houses communication system and financial facilities are inadequate in

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rural areas. Hence physical distribution is the challenge to marketers who have

found innovative ways to market their products.

Rural marketing transactional or Developmental

Is rural marketing transactional or developmental in its approach?

It is true, rural markets have become an attractive proposition for commercial

business organization. The role of rural marketing such as is more

developmental than transitional. It is more a process of delivering better standard

of living and quality of life to the rural environment taking into consideration the

prevailing village milieu.

Transactional vs. developmental: for better comprehension of this role let us

distinguish development marketing. Table brings out the differences in brief.

Transactional vs. development marketing

S. No. Aspect Transactional development

Concept Consumer orientation,

Marketing concept

Society orientation,

societal concept

Role Stimulating and

conversional marketing

Catalytic and

transformation agent

Focus Product-market fit Social change

Key task Product innovation and

communication

Social innovations and

communications

Nature of

activity

Commercial Socio-cultural, economic

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Participants Corporate enterprises

seller

Government, voluntary

agencies, corporate

enterprises, benefactors

Offer Products and services Development

project/scheme/programs

Target group Buyers Beneficiaries and buyers

Communication functional Developmental

Goal Profit customer

satisfaction brand image

Market development

corporate image

Time frame Short-medium Medium long

Motivation Profit-motive business

policy

Service-motive

ideological or public

policy

source:http://www.business-standard.com

Rural marketing process is both a catalyst as well as an outcome of the generalrural development process, initiation and management of social and economic

change in the rural sector is the core of the rural marketing process. It becomes

in this process both benefactor and benefactor.

Innovation is the essence of marketing. Innovation method of social change for

successful transformation of traditional society is virtual. Such a change narrows

the rural-urban divide.

The process of transformation can be only evolutionary and not revolutionary.

The growth of the rural market can be a planed evolutionary process based on

strategic instruments of change rather than constitute just short term

opportunities for commercial gains.

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The exposure of realities to a variety of marketing transactions during the change

process puts them in the role of beneficiaries than of just buyers of modern

inputs and infrastructural services.

Communication is the vital element of rural marketing. It should serve to resolvesocial 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.

Classification of rural customers

The rural consumers are classified into the following groups based on their economic

status:

The affluent group: they are cash rich farmers and a very few in numbers. They

have affordability but not form a demand base large enough for marketing firms

to depend on. Wheat farmers in Punjab and rice merchant of Andhra Pradesh fall

in this group.

The middle class: this is one of the largest segments for manufactured goods

and is fast expending. Farmers cultivating sugar cane in UP and Karnataka fall in

this category.

The poor: this is constitutes a huge segment. Purchasing power is less. But

strength is more. They receive the grants from government and reap the benefits

of many such schemes and may move toward the middleclass. The farmers of

Bihar and Orissa fall under this category.

Roadblocks of Indian rural markets

There are several roadblocks that make it difficult to progress in rural market.

Marketers encounter a number of problems like dealing with physical distribution,

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logistics, proper and effective deployment of sales force and effective marketing

communication when they enter into rural market. The major problem is listed

below.

Standard of living: the number of people below the poverty line is more in ruralmarkets. Thus the market is also underdeveloped and marketing strategies have

to be different from those used in urban market.

Low literacy levels: the low literacy levels in rural areas lead to a problem of

communication. Print media has less utility compared to the media of

communication.

Low per capita income: agricultural is the main source of income and hence

spending capacity depends upon the agriculture produce. Demand may not be

stable or regular.

Transportation and warehousing: transportation is one of the biggest

challenges in rural markets. As far as road transportation is concerned, about

50%of Indian villagers are connected by roads. However, the rest of rural

markets do not even have a proper road linkage which makes physical

distribution a tough task. Many villagers are located in hilly terrains that make it

difficult to connect them through roads. Most marketers use tractors or bullock

carts in rural areas to distribute their products. Warehousing is another major

problem in rural areas, as there is hardly any organized agency to look after the

storage issues. The services rendered by central warehousing corporation and

state warehousing corporations are limited only to urban and suburban areas.

Ineffective distribution channels: the distribution chain is not very well

organized and requires a large number of intermediaries, which is turn increasesthe cost and creates a administrative problem. Due to lack of proper

infrastructure, manufacturers are reluctant to open outlets in these areas. They

are mainly dependent on dealers, who are not easily available for rural areas.

This is a challenge to the marketers.

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Many languages are diversity in culture: factors like cultural congruence,

different behavior and language of respective areas make it difficult to handle the

customers. Traits among the sales force are required to match the various

requirements of these specific areas.

Lack of communication system: quick communication is the need of the hour

for smooth conduct of business, but it continues to be a far cry in rural areas due

to lack of communication facilities like telegraph and telecommunication system

etc. the literacy rate in rural areas is rather low and consumer behavior in these

areas is traditional, which may be a problem for effective communication.

Spurious brand: cost is an important factor that determines purchasing decision

in rural areas. A lot of spurious or look-alikes are available, providing a low cost

opinion to the rural customers. Many a time the rural customers may not be

aware of difference due to literacy.

Seasonal demand: demand may be seasonal due to dependency on agriculture

income. Harvest season might see an increase in disposable income and hence

more purchasing power.

Dispersed market: rural population is highly dispersed and requires a lot of

marketing efforts in terms of distribution and communication.

Attractiveness of innovative rural markets

THE RURAL MARKET HAS TRULY ARRIVED Last year, LIC sold 55% of policies in rural India.

Of two million BSNL mobile connections, 50%are in small towns /villages.

Of the six lakh villages 5.22 lakh have a village public telephone

41 million kisan credit card issued (against 22 million credit-plus-debit card in

urban) with cumulative credit of Rs 977 billion resulting in tremendous liquidity.

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Of 20 million Rediffmail signups, 60% are from small town. 50% transactions

from these town on rediff online shopping site

42 million rural households availing banking services in comparison to 27 million

urban households.

Investment in formal savings instruments: 6.6 million households in rural versus

6.7 million in urban.

Large population

Rising prosperity

Growth in consumption

Life cycle changes

Life cycle advantages

Market growth rate higher than urban

Rural marketing is not expensive

Remoteness is no longer a problem

Large population: the rural population is large and its growth rate is also high.

Despite the rural urban migration, the rural areas continue to be the place of

living majority of Indians.

Rising rural prosperity:

Income group 1994-

95

2000-

01

2006-

07

Above Rs. 100,000 1.6 3.8 5.6

Rs. 77,001-100,000 2.7 4.7 5.8

Rs. 50,001-77,000 8.3 13.0 22.4

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Rs. 25,001-50,000 26.0 41.1 44.6

Rs. 25,000 & below 61.4 37.4 20.2

Thus we see that population between income level of Rs. 25,000-77,000 will increase

from 34.3% in 1994-95 to 67.0% in 2006-07. The rural consuming class is increasing by

about 3-4% per annum, which roughly translates into 1.2 million new consumers yearly.

Spending pattern (rural households in Rs)

Item % Rich Poor Average

Food articles 4

4

147 73 95

Toiletries 2

0

67 33 43

Washing material 1

3

43 22 28

Cosmetics 1

0

33 17 21

Otc products 4 13 6 9

Others 9 30 15 19

Total 333 166 215

Average rural household spends on consumables excluding food grains, milk &

vegetables are Rs. 215/-

Life style changes:

Income vs. usage of packed consumer goods (% of household using)

Monthly household

income (Rs)

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Goods

Up to 350 351-

750

751-1500 1501+

Washing cakes/bars 60 78 86 91

Toilet soaps 57 72 89 93

Tooth paste/powder 22 36 65 85

Talcum powder 20 25 41 63

Tea (packaged) 22 30 48 64

source:http://en.wikipedia.org/wiki

Life style advantages:

Stages in life style

Product Urban Market

growth rate %

Rural

Popular soaps Maturity 2 Growth

Premium soaps Late growth 11 Early growth

Washing powder Late growth 6 Early growth

Skin creams Maturity 1.1 Growth

Talcum powder Maturity 4 Growth

source:http://en.wikipedia.org/wiki

Market growth rates higher: growth rates of the FMCG market and the durable

market are higher in rural areas for many products. The rural market share will be

more than 50% for the products like toilet soaps, body talcum powder, cooking

medium (oil), cooking medium (vanaspati), tea, cigarettes, and hair oil.

Rural market is not expensive: conventional wisdom dictates that since rural

consumer are dispersed, reaching them is costly. However, new research

indicates that the selling in rural India is not expensive. According to one

research it cost roughly Rs. 1 crore to promote a consumer durable inside a

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state. This includes the expenses of advertising in vernacular newspaper,

television spot, in-cinema advertisement, radio, van operations and

merchandising and point of purchase promotion. Campaign like this, which can

reach millions, costs twice as much in urban area.

Remoteness is no longer a problem: remoteness is a problem but not

insurmountable.

The rural distribution is not much developed for the reasons,

Lack of proper infrastructure such as all-weather roads, electrification and

sanitation, and

Lack of marketers imagination and initiative.

Marketers have so far; failed in analyzing the rural side and exploiting rural

Indias traditional selling system-Haats & metals. Their near obsession with just

duplicating the urban-type network and that too with very limited success, has

kept them blind to the potential of these two outlets.

Rural Vs. Urban Market Summary

No. Aspect Urban Rural

1. Philosophy Marketing &

societal concept

& relationship

marketing

Marketing &

societal

concept,

development

marketing &

relationship

marketing

2. A) Market

B ) Demand High Low

C ) Competition Among units in

organized sector

Mostly from

unorganized

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unit

Consumers

Locations Concentrated Widely spread

Literacy High Low

Income High Low

Expenditure Planned, even Seasonal,

variation

Needs High level Low level

Innovation/adoption Faster Slow

3. Product

Awareness High Low

Concept Known Less known

Positioning Easy Difficult

Usage method Easily grasped Difficult to grasp

Quality preference Good Moderate

4. Price

Sensitive Yes Very much

Level desired Medium-high Medium-low

5. Distribution

Channels Wholesalers,

stockiest,

retailers,

supermarket,

specially stores,

& authorized

showrooms.

Village shops,

Haats

Transport facility Good Average

Product availability High Limited

6. Promotion

Advertising Print, audio TV, radio, print

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visual media,

outdoors,

exhibitions etc.

Few languages

media to some

extent, more

languages

Personal selling Door-to-door,

frequently

Occasionally

Sales promotion Contests, gifts,

price discount

Gifts, price

discounts

Publicity Good

opportunities

Less

opportunities

source:http://en.wikipedia.org/wiki

Special product for rural market:

Rural transporter: Mahindra & Mahindra is busy developing the prototype of

what it calls a rural transporter basically a hybrid between a tractor and a rural

transport vehicle. The product at 20-25 HP will be targeted at those who cannot

afford a normal tractor and would also fulfill the need of family transporter that

could take in the rural roughs but would be much more comfortable and saferthen the conventional tractor trolley.

Sampoorna TV: LG electronics, theKorean firm has rejigged the TV to appeal

to local needs. It spent Rs. 21 lacks to develop a set that would have on screen

displays in the vernacular languages of Hindi, Tamil and Bengali. The logic, rural

consumer unfamiliar with English would still be able to use the TV without being

intimidated.

Titan watches: a recent NCAER study revealed that there is a great potential for

watches in rural areas. In fact it is considered to be a high priority list. It was also

found that a rural consumer looks for the ruggedness of the watch more than the

urban consumer does. He prefers thick watches that slim watches.

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The biggest problem that the marketers are facing in the markets is of IMITATIONS.

Imitations may result in two types of goods depending upon the purpose, commitment,

and competence of imitator. A poor imitator will end up in producing deceptive,

spurious, fake, copycat products. He dupes the gullible customer by offering products

having close resemblance with the original. In quality, it is poor cousin to the original.

On the other hand, a poor imitator may even produce an improved version of the

original product.

In this scenario the job of the marketer becomes even more difficult in the sense that he

has not to fight other competitors but also the imitated products.

The advantages that these products enjoy in the rural market are that the imitators who

are in the villages are making these and they are offering more margins & better credit

facilities.

To solve this problem the marketers has to educate the consumer about his product and

show him the benefits of his products over the imitated ones

Need- product relationships and the changes happening in rural India

Needs Old products New products

Brushing teeth Neem sticks, charcoal, rock

salt, husk

Tooth paste, tooth

powder

Washing vessels Coconut fiber, earthy

materials, brick powder,

ash

Washing powders,

soaps and liquids

Transport Bullock cart, horses,

donkeys

Tractors, LCVs,

mopeds, scooters,

motor cyclesIrrigation Well, canals, water lifters,

wind mills

Bore-wells, motors,

power generators,

pump sets

Hair wash Shikakai powder, retha, Shampoos and hair

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besan care soaps

Source:http://en.wikipedia.org/wiki

Marketing Strategies to Capture Rural India

Segmentation of Rural Market

The first step is to develop and implement any strategy for the rural market

should include the appropriate segmentation of the rural market. The important

thing is that appropriate segmentation basis need to be applied. Different product

categories have different rural markets to cater to & these can be selected by

applying different criteria of segmentation. The organization can do the following

things to start with:

Focus on selected markets.

Focus on selected villages.

By communicating and changing quality perception:

Companies are coming up with new technologies and they are properly

communicating it to the customers. There is a trade of between quality a

customer perceives and a company wants to communicate. Thus, this positioning

of technology is very crucial. The perception of the Indian about the desired

product is changing. Now they know the difference between the products and the

utilities derived out of this. As rural Indian customers always wanted value for

money with the changed perception, one can notice difference in current market

scenario.

By Proper Communication In Indian Language:

The companies have realized the importance of proper communication in local

language for promoting their products. They have started selling the concept of

quality with proper communication. Their main focus is to change the Indian

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customer outlook about quality. With their promotion, rural customer started

asking for value for money.

By target changing perception:

If one go to villages they will see that villages using toothpaste, even when they

can use Neem or Babool sticks or Gudakhu, villagers are using soap like Nima

rose, Breeze, Cinthol etc. even when they can use locally manufactured very low

prized soaps. Villagers are constantly looking forward for new branded product.

What can one infer from these incidents, is the paradigm changing and

customers 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.

By Understanding Cultural and Social Values:

Companies have recognized that social and cultural values have a very strong

hold on the people. Cultural values play major role in deciding what to buy.

Moreover, rural people are emotional and sensitive. Thus, to promote their

brands, they are exploiting social and cultural values.

By providing what customers want:

The 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

seller provides frills free of cost they are happy with that. They are happy with

such a high technology that can fulfill their need. As Motorola has launched,

seven models of cellular phones of high technology but none took off. On the

other hand, Nokia has launched a simple product, which has captured the

market.

By Promoting Products With Indian Models And Actors:

Companies are picking up Indian Models, actors for advertisements as this helps

them to show themselves as an Indian company. Diana hyden and Shahrukh

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khan are chosen asa brand ambassador for MNC quartz clock makes OMEGA

even though when they have models like Cindy Crawford.

By Associating Themselves With India:

MNCs are associating themselves with India by taking about India, by explicitly

saying that they are Indian. M-TV during independence day and republic daytime

make their logo with Indian tri-color. Nokia has designed a new cellular phone

5110, with the India tri-color and a ringing tone of Sare Jahan Se Achha.

By promoting Indian sports team:

Companies are promoting Indian sports team so that they can associate

themselves with India. With this, they influence Indian mindset. LG has launched

a campaign LG ki dua, all the best. ITC is promoting Indian cricket team for

years: during world cup they have launched a campaign jeeta hai jitega apna

Hindustan India similarly, whirlpool has also launched a campaign during world

cup.

By taking about a normal Indian:

Companies are now taking about normal India. It is a normal tendency of an

Indian to try to associate him/her with the product. If he/she can visualize

himself/herself with the product, he/she became loyal to it. That is why

companies like Daewoo based their advertisement on a normal Indian family.

By developing rural specific product:

Many companies are developing rural-specific products. Keeping into

consideration the requirements, a firm develops these products. Electrolux is

working on a made-for India fridge designed to serve basic purposes: chill

drinking water, keep cooked food fresh, and to with stand long power cuts.

By giving Indian words for brands:

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Companies use Indian words for brands. Like LG has used India brand name

Sampoorna for its newly launched TV. The word is the part of the Bengali,

Hindi, Marathi, and Tamil tongue. In the past one year, LG has sold one lakh 20-

inch Sampoorna TVs, all in towns with a population of around 10000.

By acquiring Indian brands:

As Indian brands are operating in India for a long time and they enjoy a good

reputation in India. MNCs have found that it is much easier for them to operate in

India if they acquire an established Indian brand. Electrolux has acquired two

Indian brands Kelvinator and Allwyn this has gave them the well established

distribution channel. As well as trust of people, as people believe these brands

similarly cock has acquired thumbs up, gold spot, Citra and Limka so that they

can kill these brands, but later on they realized that to survive in the market and

to compete with their competitors they have to rejuvenate these brands.

By adopting localized way of distributing:

Proper distribution channels are recognized by companies. The distribution

channel could be big scale super markets; they thought that a similar system can

be grown in India. However, they were wrong; soon they realize that to succeed

in India they have to reach the nook and the corner of the country. They have to

reach thelocal Paan wala, local Baniya only 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 compare the

market share in India they have to go to the local market shoe seller. They have

to reach to local cities with low priced products.

By associating themselves with Indian celebrities:

MNCs have realized that in India celebrities enjoyed a great popularity so they

now associate themselves with Indian celebrities. Recently Luxor writing

instruments Ltd. A JV of Gillette and Luxor has launched 500 Gajgamini ranges

of parker sonnet Husain special edition fountain pens, priced at Rs. 5000. This

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pen is signed by Mr. Makbul Fida Husain in a renowned painter who has created

Gajgamini range of paintings. Companies are promoting players like Bhaichung

Bhutia, who is promoted by Reebok, so that they can associate their name with

players like him and get popularity.

MELAS:

Melas are places where villagers gather once in a while for shopping. Companies

take advantages of such events to market their products. Dabur uses these

events to sell products like JANAM GHUTTI (grip water). NCAER estimates that

around half of items sold in these Melas are FMCG products and consumer

durables. Escorts also display its products like tractors and motorcycles in such

Melas.

PAINTINGS:

A picture is worth thousand words. The message is simple and clean. Rural

people like the sight of bright colors. COKE, PEPSI and TATA traders advertise

their products through painting.

Product strategies

The specific strategies which can be employed to develop or modify the products

to target the rural market can be classified as follows:

Small unit packing: given the low per capita income& purchasing habits of

the rural consumer, small units packages stand a good chance of acceptance

in rural market. Single serve packets or sachets are enormously popular in

India. They allow consumers to buy only what they need, experiment with

new products and conserve cash at the same time.

This method has been tested by products like shampoos, pickles, biscuits,

Vicks cough drops in single tablets, tooth paste etc. small packing stand a

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good chance for acceptance in rural markets. The advantage is that the price

is low and the rural consumer can easily afford it.

Also the red label Rs. 3.00 pack has more sale as compare to the large pack.

This is because it is very affordable for the lower income group with thedeepest market reach making easy access to the end user satisfying him.

The small unit packing will definitely attract a large number of rural

consumers.

New product design: keeping in view the rural life style, the manufacturer

and the marketing man can think in term of new product designs. The rural

product usage environment is rough because of rough handling, rough roads

& frequent power fluctuations. Thus, all these environmental factors must be

considered while developing the products meant for rural audience.

Nokias 1100 model is very good example of a customized model for a rural

market. Its design has been modified to protect it against rough usage in rural

environment; it is dust resistant & has a small torch light in view of the

frequent power cuts in rural India. It is also introduces messaging in Hindi

language now, in some of the economically priced models in order to cater to

the semi-urban or rural consumers. This is in real terms, thinking global and

acting local.

Sturdy products: sturdiness of a product is an important factor for rural

consumer. The product should be sturdy enough to stand rough handling,

transportation & storage. The experience of torch light dry battery cell

manufacturers supports this because the rural consumer preferred dry battery

cells which are heavier than the lighter ones. For them, heavier weight meantthat it has more over and durability. Sturdiness of a product either or

appearance is an important for the rural consumer.

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Utility oriented product: the rural consumer is more concerned with utility of

the product and its appearance Philips India Ltd. Developed and introduced a

low cost medium wave receiver name BAHADUR during the early seventies.

Initially the sales were good but declined subsequently.

Brand name: for identification, the rural consumers do give their own brand

name on the name of an item. The fertilizers companies normally use a logo

on the fertilizer bags though fertilizers have to be sold only on generic names.

A brand name or a logo is very important for a rural consumer for it can be

easily remembered. Many a times rural consumers ask for peeli tikki in case

of conventional and detergent washing powder.

Pricing strategy

Low cost cheap products: this follows from the product strategy. The price can

be kept low unit packagings like paisa pack of tea, shampoo sachets, Vicks 5

grams tin, etc. this is common strategy widely use by many manufacturers in

making marketing concerns.

Refill packs/ reusable packaging: in urban areas most of the health drinks are

available. The containers can be put to multipurpose uses. Such measures can asignificant impact in the rural market.

Application of value engineering: in food industries, Soya protein is being used

instead of milk protein. Milk protein is expensive while Soya protein is cheaper,

but the nutrition content of both is the same. The basis aim is to reduce the value

of product, so that a large segment can afford it.

Large volume-low margin (rapid or slow penetration strategy): marketers

have to focus on generating large volumes and not big profit margins on

individual products. If they price their product at a level which can lead to good

volumes, then they can still generate good returns on the capital employed.

Overall efficiency & passing on benefits to consumers: for rural products, the

strategy should be cut down the production, distribution & advertising costs &

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passing on these benefits to the customer to further increase the turnover. Most

often, it has been observed that advertising has less to do with product sales in

the rural area. If an organization gets the price point right, then it can work in

rural market

Promotion strategies

Customized promotional media message need to be developed by the

organizations to effectively target the rural market. The following strategies can

be considered while developing promotional campaigns for the rural markets.

Think global act local: rural population is diverse, but the commodities of

their ethos & simple living habits need to be understood for advertisement

needs to resolve among universal themes, such as family love. But the

context, story line, language, and idioms should be such that rural audience

of different rural market segment can relate to.

Think in local idiom:this is the need of the advertisement professionals who

can think like the rural people. The only we can have insight like Thanda

matlab Coca cola. There should be the use of language writers who

understands the rural & regional pulse better.

Simplicity & clarity: all promotional messages targeted at rural audience

need to be simple & clear, which can be easily understood, & they should not

include any confusing element. It is preferable that it has only a few

propositions at a time.

Narrative story style:the promotional message can be delivered in the form

of an entertaining story with a message depicting how the brand delivers

large good to the family & society. The theme of the story line can be about

how the product can solve the problems of the rural consumers.

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Choice of brand ambassador:brand ambassador for the rural market needs

to be picked carefully as urban successes might not get replicated in the rural

markets. That is why Govinda in the Marinda as boosted the sale of the drink

in the rural market.

Distribution strategy

Many companies view the rural markets as great opportunity for expending their sales

but find distribution as a major problem. Unfortunately, it is almost impossible to

translate strategies which work successfully in urban markets onto rural markets,

namely, extensive relating and sustained pull generation through mass media

advertising.

The road blocks to reach the rural customers are:

Lack of adequate transport facilities

Large distance between villages

Lack of pucca roads connecting villages to nearest townships

Lack of proper retail outlets

Lack of mass media infrastructure

The marketers were of the opinion that the villagers would come to nearby towns and

buy the products that they want.

The following distribution strategies formulated for the rural category.

Coverage of villages with 2000 and above population: Ideally, coverage of

villages with up to 2000 and above population could be the break-even point for adistribution setup. By doing so the percentage of villages covered comes to only

10% of all the villages, but the rural population covered will be sustainable, to the

extent of about 40 to 50 percent. With a distribution network in about 55,000

villages, which have a population of 2000 persons & above each, one can cover

about 25 crore rural consumers.

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Segmentation: the number of villages in India is huge & it is not viable to contact

& serve all villages directly. Therefore, companies or distributors can carefully

examine the market potential of different villages.

Use of cooperative societies: there are over 3 lacs co-operative societiesoperating in rural areas for different purpose like marketing cooperatives,

farmers service cooperative and other multipurpose cooperatives.

Utilization of public distributors system: the PDS in the country is fairly well

organized. The revamped PDS places more emphasis on reaching remote rural

areas like the hills and tribals. the purpose of PDS is to make available essential

commodities like food grains, sugar, kerosene, edible oil and others to the

consumers at a reasonable price.

Utilization of multipurpose distribution centers by petroleum/oil

companies: in order to cater to the rural areas the petroleum/oil companies have

evolved a concept of multipurpose distribution centers in rural areas. In addition

to petrol/diesel, lubricant, these outlets also stock consumables agricultural

inputs like fertilizers, pesticides and seeds.

Distribution up to feeder markets/mandi town: keeping in view the hierarchy

of markets for the rural consumers, the feeder markets and mandi town offers

excellent scope for distribution. The rural customers visit these towns at regular

intervals not only for selling the agricultural produce but also for purchasing cloth,

jewelry, hardware, radios, torch cells and other durables and consumer products.

Shandies/Haats/Jathras/Meals: these are places where the rural consumers

congregate as a rule. While Shandies/Haats are held a particular day every

week, Jathras and Melas are held once or twice a year for longer durations. Theyare normally timed with religious festivals. Such places attract large number of

itinerant merchants.

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Agricultural input dealers: fertilizers should be made available to the farmers

within the range of 4-5 km from their residence, as per the essential commodities

act. This is why there are about 2 lakh fertilizer dealers in the country, both in

cooperative and in private sector..

Joint distribution by Non-competing Companies: as the cost of distributing

the products in the rural market through distribution vans can be unviable for a

single company, different non-competing companies can come together to jointly

operate distribution vans for the rural market.

Personal selling network: it is very successful distribution channel developed

by companies like HUL. It adds a personal touch to the marketing, as the

salesman is the resident of the village or community itself, making it easier to sell

the product & maximize sales for the company.

The old setup

The historically available people & places for distribution include:- whole seller, retailer,

vans, weekly Haats, and Bazaars & Shadies.

Wholesalers: the Indian wholesaler is principally a Galla- Kirana (food-grain)

merchant who sustains the belief that business is speculative rather than

distributive in character.

The reason for this speculative character and dormant role of wholesalers are:-

Indian market was largely sellers market. There was no need for active

sales growth.

Companies laid more emphasis or retailers in urban areas, who are very

large in number. As a result of retail based distribution was weakened.

Rural market was neglected by many. The occurrence of retail outlets was

low. Therefore many companies were dependent on whole sellers.

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Retailers:

There is different kind of retailers:

Shops within the village

Shops located on the main road and not exactly within the village

Kasba market or the Tahsil market.

Village retailers have traditionally been among the most mobile of rural residents.

Often doubling up as money lenders.

Their multiperson interaction in the closed village society.

As a result retailers play a significant role.

Vans:

Mobile vans long since, have an important place in distribution and promotion of

the products in villages.

JK Dairy launched whitener Dairy Top in small 50gm sachets priced at Rs. 6.50.

it decided to make a concerted foray into India in 1996. It hired vans to penetrate

the rural interior, each van traveling around 125km a day, 25 day a month.

Weekly Haats, Bazaars, Shadies:

The haats are the outlets to purchase household goods and for trade. These

markets are very well organized with shopkeepers having pre-assigned spaces

for them to sell their wares. A typical market is in an open field with ample space

for displaying all sorts of goods.

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Media vehicles:

Through the rural market offer big attraction to the marketers, one of the most

important questions frequently asked is How do we reach the large rural

population through different media and methods?

Mass media Local media Personalized

media

Radio Haats, Melas, fairs Direct

communication

Cinema

Wall paintings

Dealers

Press Hoardings Sales persons

TV Leaflets

Video vans

Folk media

Animal parade

Transit media

Researchers

Formal media:

It includes press and print, TV, Cinema, Radio, and Point of purchase and

outdoor advertisement. Reach of formal media is low in rural households (print:

18%, TV: 27%, cinema: 30%, and radio: 37%)

Newspapers & magazines: English newspapers and magazines have

negligible circulation in rural areas. However local language newspapers &

magazines are becoming popular among educating facilities in rural areas.

Television:it has made a great impact and large audience has been exposed

to this medium. HLL has been using TV to communicate with the rural masses.

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Lifebuoy, Lux, Nihar oil etc. are some of the products advertised via television.

Regional TV channels have become very popular especially in southern states.

Radio: radio reaches large population in rural areas at a relatively low cost.

Example: Colgate, Jyoti labs, Zandu balm, Zuari industries are some of thecompanies using radio communication programmes. There are specific

programmes for farmers like farm and home Darshan in regional languages.

Cinema:about 65% of the earnings from cinema are from rural markets. Film

viewing habits is high in certain states like Tamil Nadu, Karnataka and Andhra

Pradesh. Village theaters do roaring business during festivals by having four

shows day.

Outdoor advertisements:this form of media, which includes signboards, wall

painting, hoardings, tree boards, bus boards, product display boards etc, is cost

effective in rural areas. Symbols, pictures and colors should be used in POPs

meant for rural markets so that they can easily identify the products.

Point of purchase: displays of hangings, festoons and products packed in the

shops will catch the attention of prospective buyers. However a clutter of such

POP materials of competing companies will not have the desired effect and is

to be avoided.

Direct main advertising:it is a way of passing on information relating to goods

or services for sales, directly to potential customers through the medium of

post. It is a medium employed by the advertiser to bring in a personal touch.

Wall painting:it is an effective and economical medium for communication in

rural areas, since it stays there for a long time depending upon the weather

conditions. The cost of painting one square foot area is just Rs. 10. Retailers

welcome painting of their shops so that the shop will look better.

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Tree boards: there are painted boards of about two square feet in dimension

having the picture or slogan or name of the product painted on it. The cost of

such a painted board is about Rs. 80. These boards are fixed to the trees on

both sides of the village road at a height of about 10 feet from ground level.

These boards attract the attention of slow moving vehicles like cycles, bullock

carts and tractors and people walking on the road.

Informal / Rural Specific Media

These media with effective reach and personalized communication will help in

realized the promoting objectives. Companies to suit the specific requirements

of rural communication are using a variety of such media effectively and some of

the more important media and methods are given below.

Farm-to-farm/House-to-House: rural people preferred face-to-face

communication and farm visits facilitate two way communications. The

advantage is that the sales person can understand the needs and wants of the

rural customer by directly discussing with him and answer his queries on

products and services.

Group meeting:group meetings of rural customers as well as prospects are animportant part of interpersonal media. The company is able to pass on the

message regarding benefits of the products to a large number of customers

through such meetings.

Opinion leaders: villagers place more emphasis on the experience of others

who have used a product/brand to make purchase decision. Opinion leader is a

person who is considered to be knowledgeable and is consulted by others and

his advice is normally followed.

The Melas:Melas are of different types i.e. commodity fairs, cattle fairs and may

be held only for a day or may extend over a week. Many companies have come

out with creative ideas for participating in such melas.

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The Haats:traditionally on certain days of wee, both the sellers and buyers meet

in the village to buy and sell goods and services. These are the haats that are

being held regularly in all rural areas. The sellers arrive in the morning in the

haats and remain till late in the evening. Next day they move to another haats.

Folk dances: these are well-appreciated form of entertainment available to

village people. The folk dance Kuraven Kurathi is popular in Tamil Nadu. The

troupe consists of dancers, drummers and musicians and they move in a well-

decorated van from one village to another village singing and dancing. In a day

the troupe covers about 8-10 villages.

Audio visual publicity vans: AV unit is one of the effective tools for rural

communication. The van is a mobile promotion station having facilities for

screening films slides and mike publicity. The sales person makes a brief talk

about situation in the village, the products and the benefits.

Product display contest: package is an integer part of the product. Its main

purpose is to protect the product during transit, to preserve the quality and to

avoid any loss in quality and quantity. The main purpose of this contest is to

remind the customer to buy the product as soon as he enters the shop. Another

objective is to influence the dealer to stock the product and support the company

in increasing the sale.

Field demonstration:this is based on the extension principle seeing believes

and is one of the most effective methods to show the superiority of the

companys product to the customers. A progressive farmer who is an opinion

leader is selected and the demonstration is conducted in his field in the presence

of a group of farmers in the village.

Field days: these are extension of field demonstrations. One of the main

objectives of following modern agricultural practices is to increase the yield. The

company organizes demonstrations in a piece of land belonging to progressive

farmers.

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Information centers: they provide latest information on cultivation of crops,

fertilizers application, weed, management and control of pests and diseases.

Experienced agricultural graduates who make frequent visits to the field and

advice farmers on modern agricultural practices manage by the centers.

Life-style marketing: each rural market segment has certain special features

i.e. they share common life-style traits. They include village sports, religious

events, prominent personalities and role models.

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Objectives of the study

After reading this report you should be able to know:

You can Learn the factors that make it imperative for companies to be innovative

in their approach for the rural market.

You will Understand the basic principles and guidelines for developing innovation

in the rural markets.

You also Understand the strategies and approaches that need to be adopted to

achieve success in the rural markets.

You also Develop comprehensive understanding of different faces of rural

marketing strategies like; Segmentation and selection of target market.

Competitive scenario analysis. Marketing mix strategies: product strategy,pricing strategy, promotion strategy, distribution strategy.

Hiring strategy of the HR. In this project you can also learn Social marketing

strategy for expansion of the organisation.

You also go for the Comprehension and nuances of implementation of different

rural marketing strategies.

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RESEARCH METHODOLOGY

Sampling Techniques

Research studies are distinct events that involve a particular group of participants.

However, researchers usually intend on answering a general question about a larger

population of individuals rather than a small select group. Therefore, the main aim of

psychological research is to be able to make valid generalizations and extend their

results beyond those who participate. For this reason, the selection of participants is a

very crucial issue when planning research. Obviously, researchers cannot collect data

from every single individual from their population of interest, since this would beextremely expensive and take a very long time! So instead they use a small group

of individualscalled a sample method.

DATA TYPE: In this research the type of data collection is:

Secondary data: The secondary data are those which are already in existence and

which have been collected for some other purpose.

I have collected all this data from various sources.

DATA SOURCE:The sources of collection of secondary data are:Booksthe economist magazineCompany Reports.

Pamphlets.

Magazines.

Personnel Department.

Hooks on communication

Websites

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CHAPTER-2

Company Profile

About Us

A stock market or equity market is a public entity (a loose network of economic

transactions, not a physical facility or discrete entity) for the trading of company stock

(shares) and derivatives at an agreed price; these are securities listed on a stock

exchange as well as those only traded

privately. The size of the world stock market was estimated at about $38.6 trillionat the

start of October 2011. The stocks are listed and traded on stock exchanges which are

entities of a corporation or mutual organization specialized in the business of bringing

buyers and sellers of the organizations to a listing of stocks and securities together. The

largest stock market in the United States, by market capitalization, is the New York

Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto StockExchange. Major European examples of stock exchanges include the Amsterdam Stock

Exchange, London Stock Exchange, Paris Bourse, and the Deutsch Brse (Frankfurt

Stock Exchange). In Africa, examples include Nigerian Stock Exchange, JSE Limited,

etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the

Hong Kong Stock Exchange, and the Shanghai Stock Exchange. In Latin America,

there are such exchanges as the BM&F Bovespa and the BMV.In India Bombay Stock

Exchange (BSE) benchmark, Sensex & National Stock Exchange (NSE), the 50-stock

Nifty index. The market in which shares are issued and traded, either throughexchanges

or over-the-counter markets are also known as the stock market. It is one of the most

vital areas of a market economy because it gives

Companies

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Access to capital and investors a slice of ownership in a company with the potential to

realize gains based on its future performance.

A financial services provider, BMA Wealth Creators specializes in extending customizedfinancial solutions to individual and corporate. The Company works towards

understanding the financial ambitions of its clients and adjusts to its risk profile

accordingly. Our expertise combined with thorough understanding of the financial

markets results in appropriate investment solutions for all.

The BMA Group has created its forte by promoting successful ventures in the fields of

coal mining, refractory, steel and Ferro alloy. Its continuous strive to achieve excellence

and growth keeps it abreast of the latest in technology and best business practices,thereby making it customer oriented while forging alliances, high quality standards and

proactive business cultures.

We, at BMA Wealth Creators, realize the dreams, needs, aspirations and concerns of

our clients as closely as they do. This is reflected in every move we make with and for

them because our relationship with our Clients is of superior importance to us.

The companys Competitive Strength lies in itspeople who put in record an unfaltering

track of growth and profit.

Our financial services corporate entities are represented by:

BMA WEALTH CREATORS LIMITED- which holds corporate membership in

National Stock Exchange Ltd, Bombay Stock Exchange Ltd. and Central

Depositories Securities Ltd.?

BMA COMMODITIES PRIVATE LIMITED - which holds corporate membership

in commodities exchange of NCDEX and MCX? It is also is SEBI approved AMFI

registered Mutual Fund advisory and intermediary.

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Management team

ANUBHAV BHATTER,Chairman & Managing Director

As the Chairman & Managing Director, Mr. Anubhav Bhatter is the guiding force of the

Company. A graduate in Commerce from St Xaviers College, Kolkata and a Chartered

Financial Planner, Mr. Anubhav Bhatter founded one of the leading financial services

company in India, BMA Wealth Creators Limited. With over nine years of financial

experience, he has set new standards and established niche operations to bring BMA

Wealth Creators Limited to a position that it has reached today.

Prior to founding BMA Wealth Creators Limited, Mr. Bhatter worked with SKP Securities

as Head, Products.

SAIKAT GANGULY, Chief Executive Officer

With over fifteen years of financial market experience, Saikat Gangulys knowledge of

the industry is comprehensive. He has held several top managerial positions in various

organizations including Reliance Money before he joined BMA Wealth Creators Limited

in the year 2009 as its Chief Executive Officer.

Ever since, he has led BMA Wealth Creators Limited in handling several niche Sales,Distribution and Product Management initiatives. He has been instrumental in setting

the pan India foot print of the organization by setting up Branches and distribution

network in every nook and corner of the country. He even plays a key role in promoting

investor education with initiatives such the CNBC Awaaz Money Yatra. His extensive

knowledge, along with his leadership skills has helped BMAWC position itself as one of

the top financial services houses in the country.

AVINASH AGARWALLA,Director

a commerce graduate from St Xaviers College, Kolkata and an MBA from Xavier

Institute of Management, Bhubaneswar, Mr. Avinash Agarwal is the voice of knowledge

on the Board of Directors of the Company. With over eleven years of extensive market

experience in Financial as well as the Product Manufacturing industry, Mr. Avinash

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Agarwal has given shape to the growth of BMA Wealth Creators Limited. With an

extensive knowledge of the nuances involved in the financial sector and a strong foot

hold over the market, the entire Group looks up to his contribution.

SHIV KUMAR DAMANI,Director

Experience is the greatest education. And you know it when you meet Mr. Damani. With

a financial career spanning over twenty two years, Mr. Damani is Director, BMA Wealth

Creators Limited. He has been associated with the Company since its inception and

ever since, has nurtured the growth and operation of the Company just as a parent

would do for its child.

A Bachelor in Commerce from the University of Calcutta, Mr. Damani has studied the

financial market from close quarters to manage the risks involved while working towards

the benefit of the Company and the people it is associated with, thus progressively

stepping up the operational quality of the organization Prior to joining BMA Wealth

Creators Limited, he worked with SKP Securities Limited.

ASIT KUMAR GHOSH,Director

a pillar of strength to the Company, Asit Kumar Ghosh has been associated with BMAWealth Creators Limited since the day of its inception. Having joined in the capacity of a

Vice President, currently he is operating as Director, BMA Wealth Creators Limited.

From establishing and strengthening the customer base to setting up the entire Retail

Channel, he has played a vital role in the formation of the Company.

A Bachelor of Science from the University of Kolkata and a Post Graduate in Computer

Applications, Mr. Asit Kumar Ghosh has worked in the capacity of various managerial

positions for numerous organizations including Alliance Credit & Investments, Tata TD

Waterhouse, Anagram Securities and IL&FS where he successfully proved his worth.

With over eighteen years of experience and his extensive knowledge, Mr. Ghosh keeps

adding value to the Company.

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Mission & vision

MISSION

To be a premier financial supermarket providing integrated investment services.

VISION

To provide integrated financial services building investor wealth and confidence.

EVOLUTION OF THE INDIAN BROKERAGE MARKET

The Indian broking industry is one of the oldest trading industriesthat had been around

even before the establishment of the BSE in1875. Despite passingthrough a numberof c

hanges inthe postliberalization period, the industry has found its way towardssustainable growth. The evolution of the brokerage market is explainedin three phases: pre1990,

1990-2000, post 2000.

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Early Years

The equity brokerage industry in India is one of the oldest in the Asiaregion. India had a

n active stock market for about150 yearsthatplayed a significant role in developing risk

markets as alsopromoting enterprise and supporting the growth of industry. The roots of

a stock market in India began in the 1860s during the American Civil War that led to a

sudden surge in the demand for cotton from India resulting in setting up of a number

of joint stockcompanies that issued securities to raise finance. This trend was akinto the

rapid growth of securities markets in Europe and the North America in the background

of expansion of railroads and exploration of natural resources and land development.

EQUITY RESEARCH

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Recommendation Approach:For fundamental recommendation, we follow bottom up

approach of stockselection. We conduct detailed fundamental analysis of individual

companies before giving recommendations. Sometimes we may recommend stocks

based on technical analysis for short term trading. We also wish to recommend short

positions depending on market condition. Position on

Futures and options strategies may also be included.

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Analysis techniques

Analysis and Interpretation

The interpretation of the data represented from the research

conducted can be analyzed as: -

The company strongly believes in employees welfare and taking sheer care of their

rights and satisfaction in the workplace and the work as such given to them.

Companys appraisal policy, autonomy level given to the employees, welfare

policy, correspondingly gives job satisfaction to the employees

The respondents have shown due respect to companys image and have feltthe presence of its values, believed in its mission to be strongest and the

most respected engineering company of the country and accepted it as a

professionally managed company with a fair good response that makes

everyone believe in it.

Overall, Bma Associates can be interpreted having Sound innovational and a satisfied

staff ensuring enough support to the organization to be one of the most successful

financial company of the nation.

looking at the challenges and the opportunities, of both the markets, it can be said that

the future is very promising for those who can understand the dynamics of rural markets

and exploit them to their best advantage. A radical change in attitudes of marketers

towards the vibrant and burgeoning rural markets is called for, so they can successfully

impress on the 230 million rural consumers spread over approximately six hundred

thousand villages in rural India. So we can say that RURAL MARKETING IS A REAL

MARKETING

The Rural And Urban Consumer Detailed Profile Size of Rural and urban Consumer

Group Rural population is about 73% and urban population is 27% of the total

population of India Scattered market the comparison below shows the same * Urban

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Population is spread over 3,200 cities * Rural population is spread across 5,70,000

villages

Reasons For Selecting Market Rural Marketing- Size of the market Largely Untapped

Income on the rise/disposable Income from other than agriculture Income flow fromurban/abroad.

Occupation of Head of Household (IN %) Urban Rural All Housewife 0.84 1.01

0.96Cultivator 3.45 40.86 29.99Wage earner 20.93 35.28 31.22 Salary earner 40.72

11.28 19.84Professional 3.59 0.73 1.56Artisan 6.90 3.41 4.42 Petty shopkeeper 16.05

4.97 8.19Businessman 3.68 0.46 1.40Others 3.85 1.98 2.52Total 100.00 1 00.00

100.00. (Source: NCAER, 2003)

Analysis Of Markets The annual consumer durable market for products like colour

t.vs,washing machines, refrigerators and air conditioners is growing at 7 -10 %. While

the rural market is zooming at 25 % .HAVE A LOOK..F.m.c.g Rs.65000 crores (53

% share in total revenues) Rs.5000 cr. For agri inputs.

Challenges Rural Marketing Traditional Life Transportation Literacy Promotion and

Marketing Communication. Urban marketing urban market flooded with low demand

High degree of competition. large expenses.

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Recommendations And Conclusion

Thus looking at the challenges and the opportunities which rural markets offer to

the marketers it can be said that the future is very promising for those who can

understand the dynamics of rural market and exploit them to their best advantage.

A radical change in the attitude of marketers towards the vibrant and burgeoning

rural market is called for, so they can successfully impress on the 230 million rural

consumers spread over approximately six hundred thousand villages in rural

India.

The rural market is very large in compare to the urban market as well as it is more

challenging market. The consumer wants those products which are long lasting,

good, easy to use and cheaper. The income level of rural consumer is not as high

as the income level of urban consumer thats why they want low price goods. It is

one of the reasons that the sale of sachet is much larger in the rural area in all

segments. It is necessary for all the major companies to provide those products

which are easy to available and affordable to the customers. It is right that the

profit margin is very low in the FMCG products, but at the same time the market

size is large in the rural area.

Rural market has an untapped potential like rain but it is different from the urban

market so that it requires the different marketing strategies and marketers has to

meet the challenges to be successful in rural market.

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Bibliography

Burr, Steven W. 1997. "A Conceptual Model for Facilitating Rural

Development," Proceedings of the 1996 Northeastern Recreation Research

Symposium, March 31-April 2, 1996, Lake George in Bolton Landing, NY. U.S. Dept. of

Agriculture, Forest Service, Northeastern Forest Experiment Station Report, General

technical report NE; 232, pp. 15-18.

This paper examines why some rural communities are able to make substantial

progress in their tourism development efforts, while others experience problems due to

a variety of constraints. The research is based on in-depth case studies conducted in

four rural Pennsylvania counties. A conceptual model for understanding and facilitating

rural tourism development is presented.

Gibson, LayJames. 1993. "The Potential for Tourism Development in Nonmetropolitan

Areas," pp. 145-164, in David L. Barkley, ed., Economic Adaptation. Boulder, Colorado:

Westview Press.

Jepson, Edward J., Jr.and David W. Marcouiller. 1994. Ethnic Variation in Leisure and

Recreational Interests. Chicago: Council of Planning Librarians. CPL Bibliography No.

311.

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