Ruralni turizam

Challenges faced in Indian Rural Marketing

The concept of Rural Marketing has been evolving continuously over the years and can be classified into three major phases – pre 1960s when it was synonymous with agricultural marketing; 1960s-1990s which saw the growth in the marketing of non-farm rural products; and post 1990s, where the prime focus of the companies is to market FMCG and consumer durable goods in rural areas as a result of rise in income levels as well as the number of middle class families.

 

With about 60% of the Indian population living in rural areas and representing half of the country’s buying potential even today, the Indian economy can be developed by improving the living conditions in rural areas. Rural illiteracy is the prime area of concern and various projects have been undertaken time and again to improve the rural conditions. A recent study by NCAER (National Council for Applied Economic Research) reveals that the number of middle/ high‐income households in rural India is expected to grow from 130 Million to 172 Million by the end of 2012 as compared to nearly 71 million of urban India.

 

Despite the fact that India is unarguably one of the largest consumer markets in the world, it is difficult to tap the market. Various marketing theories and concepts have been directly implemented in India, but have met minimal success. This is due to wide variations in size and potential of different segments owing to various parameters like income levels, diversity in language & religion, geographical diversity etc. Even, a company like Kellogg’s had to face the consequences of the unpredictability of the Indian market. The sales of cereals were abysmally low and forced the company to introduce new eating habits in the country. However, in the meantime, a major chunk of the already existing cereal market (which was small in size), was taken away by imitators who introduced local cereal flavors at much lower prices. As a result, Kellogg’s had to realign their marketing strategies and introduce inexpensive biscuits meant for breakfast. It is therefore essential for the marketer to look beyond time tested concepts and reevaluate the entire approach. In order to tap the rural market adequately, the traditional marketing concepts should be modified. This is when the importance of Packaging, Retailer, Education and Empowerment comes into picture.

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A rural consumer is always a budget seeking consumer. It is essential to first match a product’s expectations and its pricing structures. It is to be noted that most of the rural population comprises of daily wage workers who tend to have minimal stock of money. Depending on her daily income, she fixes a budget for the purchase and makes a decision after taking other parameters like after sales service, warranty period etc into picture. Thus, the products in the rural market should be able to meet the basic needs of the consumer, as a rural consumer shall not be willing to pay additionally for extra benefits. This makes pack sizes and price points all the more important. For instance, a rural consumer would prefer buying a shampoo sachet to a large bottle which could be used for over a month. Packaging should also be done accordingly in smaller units and lesser priced packs, thereby making them affordable.

 

Physical distribution becomes arduous due to high costs involved and the non availability of retail outlets. Melas & Haats, and Rural Marketing Vehicles (RMVs) could prove to be better means of distribution as the rural consumers prefer ‘touch and feel’ experience.

 

In rural markets, a consumer’s buying behavior is widely influenced by social customs and traditions. Higher levels of illiteracy and lack of exposure to traditional media practices further add to the problems. Hence, the advertising mix should be customized and contain other alternative forms like street plays, wall painting, posters etc.

 

A retailer’s importance should be clearly understood because he plays a vital role in influencing the customer’s decision making process. A rural consumer frequents the same shop in order to buy as per her daily requirements. As a result of the lack of brand awareness among the rural population, the amount of purchases is positively correlated with the extent to which a retailer pushes the product belonging to a particular brand. Effective incentive schemes and trade promotion activities should be developed to maintain a long lasting relation with the retailer.

 

The levels of unemployment are very high in the rural areas. Hence, any marketing strategy which involves the scope of income generation would be more preferable. The success of “Self Help Groups”, which helps in generating income apart from operating like direct to home distributors, is a reflection of this viewpoint.

 

The concept of “e-choupals” introduced by ITC is noteworthy in the context of Indian Rural Marketing. The presence of these e-choupals is increasing at a rapid rate. It helps in raising the income levels of farmers by providing better prices for their produce in comparison with auctions. These also provide high quality seeds and online advice on various agricultural practices. These practices enable the farmers to increase the consumption levels of the products and services offered by ITC.

 

A clear understanding of the “Value for Money” concept in the rural areas shall be the major differentiating factor between a successful brand and its competitors. This has been proved by HLL (Hindustan Lever Ltd). HLL discovered that Indians in the rural areas used soaps for multiple purposes. This resulted in the design of all-in-one soaps which was a huge success.

 

 

Source: ArticlesBase.com

RURAL DEVELOPMENT – INDIAN APPROACH

 

 

Rural development means to theprocess of improving living conditions, providing minimum needs, increasing productivity and employment opportunities and developing potentials of rural resources through integration of spatial, functional and temporal aspects

Rural development is a strategy to improves the economic and social life of a specific group of people, the rural poor, including small and marginal farmers, tenants and the landless.

            The concept of rural development was first used in India by the planners.  It is the very process of the planning to implement rural development programmes through and appropriate strategy to realize the desired results.

v     Providing certain social goods and services in terms of social and economic infrastructure.

v     Increasing the income of every rural family and to see that those who are below the poverty line are enable to come above that line in coming years.

v     Creation of additional employment opportunities is rural areas.

v     It is essentially concerned with the improvement of the living standards of low income population living in rural areas on a self-sustaining basis through transforming the socio-spatial structure of their productive activities.  

v     Improvement of services of rural masses in the process.

v     Improvement of know-how which is to be implemented to the rural people to infuse in them a sense of pragmatism in the process of development.

 

 

 

           

Development of rural areas has always been one of the paramount concerns of the various India’s fives years plains.  Not only during plan era, but also during pre-independence period, a lot of attention was paid to uplift rural poor.  In this regard, several rural development programmes were launched in India, especially to provide job opportunities to raise their income.  Hence these3 programmes enabled rural poors to improve their standard of living.  These programmes are designed for getting following two objectives.

– the government of India has launched various poverty alleviation programmes.  In this connection development of fundamental infrastructure in rural areas was given a first priority by inducing minimum needs programme (MNP).  This is being done by under the programmes like- water supply and sanitation, schemes relating to land reforms, agricultural marketing, rural godowns and development of roads in rural areas.  These programmes is supposed to provide to villages certain economic and social infrastructure, ensuring facilities like roads, electricity, transport, drinking water, medical care and primary school etc. such type of facilities are basic requirements of development of a particular regions.  These are also essential for the successful implementation of poverty elimination programmes. – Integrated Rural Development, Development of Women and Children Development Programmes, Drought Prone Area Programme, National Rural Employment Programme, Desert Development Programmes, Rural Landless Employment Guarantee Programme and Training of Rural Youth for self Employment are in operation. IRDP aims at lifting the beneficiary family above the poverty line by providing them with financial assistance (partly by way-of loan and partly by way of subsidy) to enable them to acquire productive and income generating assets.  The NREP has been designed to provide wage employment opportunities, particularly to that segment of the rural poor, who are without assets, has launched to supplement the IRDP as a part of the wider strategy of rural development. The RLEGP is designed to provide short term job for one hundred days to one member of a landless family in rural areas.

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Rural development programmes are suffering from some maladies or drawbacks. That is why they are not being implemented successfully. Some of the major hurdles in operation of these programmes are being listed as below:-

– the percentage of wrong identification is found very high, falling some where between 3 to 30 percent. This can be said to bring considerable distortions in the programmes, limiting its potential to achieve wider objectives. the procedures for release of subsidy and credit give plenty of scope for corruption. the repayment performance of beneficiaries is also very poor.  Inadequate generation of monthly income through initial investment is due to inadequate infrastructure.    Bureaucracy is also affecting the successful implementation of rural development programmes at different level.

           

The implementation of present rural development programmes is far from satisfactory and it require to rethink on present strategy.  Therefore an attempt is being made to point out some remedial measures to remove drawbacks of the strategy.

– There is not a proper co-ordination between various rural development programmes.  Attempts should be made for combining IRDP and NREP.  In this connection, emphasis should be given to cover the same beneficiaries under IRDP as well as NREP/RLEGP, wherever it is felt necessary. – There should be a proper co-ordination among activities of different credit providing institutions.  – The existing systems of supervision, inspection and guidance for rural development programmes should be strengthened, by regular monitoring and follow-up of the beneficiaries by the staff of implementing agency. – The block levels plans should be prepared, so that optimum utilization of local resources can become possible. – for the removal of tendencies of wrong identification of beneficiaries, awareness should be generated among rural masses. Most of rural development programmes provide finance to agriculture, allied sector and small business activities to increase the monthly income of rural poor.  In this respect, we have neglected the role of social forestry in rural development.

 

 

 The strategy for rural development in present time should aim at improving living standard of low-income population through income creating opportunities and making the process of their development self- standing.

 

Source: ArticlesBase.com