THE RURAL MARKETING ENVIRONMENT

Rural Marketing – Course Plan Details Rural Marketing Environment Defining Rural India Evolution of Rural Marketing Rural Market Structure Size of Rural market

DEFINING RURAL INDIA SOURCE DEFINITION CENSUS VILLAGES + TOWNS < 5000 POP POPN DENSITY < 400/SQ KM 75% MALES IN AGRI ACTVITY RBI < 10000 POPN. NABARD < 10000 POPN PLG. COMMN < 15000 POPN. For FMCGs focus should be on < 20000 popn areas For durables focus on < 50000 popn areas

RURAL DISTRICT CONSTRUCT Out of 593 districts, the construct is as follows : DESCRIPTION NOS. URBAN COUSINS 67 RURAL ECONOMIC CENTRES 118 BASIC INFRASTRUCTURE 160 DEPRIVED 248

EVOLUTION OF RURAL MARKETING PHASE I Before the 1960’s More of foodgrains, farm equipment, pots , pans etc. Unorganised PHASE II 1960’s TO 1990’s Green Revolution – modern equipment/practices Organised companies enter above Cooperatives/Commissions formed and promotion of handicrafts/village industries Growing wealth – FMCGs discover rural PHASE III-Beyond the 1990’s R U Branded consumables Farm/non farm goods and durables(organised) and services (unorganised) Handicrafts, handloom, leather (semi-organised) R U

DEFINING CORPORATE RURAL MARKETING A FUNCTION WHICH MANAGES ACTIVITIES FOR :- ASSESSING STIMULATING CONVERTING PURCHASING POWER INTO DEMAND FOR PRODUCTS AND SERVICES MAKING THESE PRODUCTS & SERVICES AVAILABLE TO CREATE SATISFACTION A BETTER STANDARD OF LIVING THEREBY ACHIEVING ORGANISATIONAL GOALS

RURAL MARKET STRUCTURE DEMOGRAPHIC ENVIRONMENT POPULATION UP 40% PURCHASING POWER UP 42% 5-14 YEARS – 26%; 15-34 YEARS – 32% EDUCATION AND LEVEL OF DEMAND LITERACY UP 23% SIGNIFICANT INCREASE IN DEMAND FOR EDUCATIONAL MATERIALS FAMILY STRUCTURE 48% NUCLEAR FAMILIES & GETTING HIGHER OCCUPATIONAL PATTERN 41% CULTIVATORS, 35% WAGE EARNERS & 11% SALARIED

DISTRIBUTION OF RURAL HHs BY INCOME ANNUAL INCOME IN Rs.AT 1998 – 99 PRICES INCOME CLASS 1989 -90 (% HOUSEHOLDS) 1998 – 99 <=35000 LOWER 67.3 47.9 35001-70000 LOWER MIDDLE 23.9 34.8 70001-105000 MIDDLE 7.1 10.4 105001-140000 UPPER MIDDLE 1.2 3.9 > 140000 HIGH 0.5 3.0 TOTAL 100 Rural Annual Per Capita Income is Rs. 9481 vs Rs. 19407 in Urban Highest Rural Per Capita Income is Punjab (Rs. 27256) Lowest Rural Per capita Income is Orissa (Rs. 5704)

RURAL INFRASTRUCTURE SOCIAL Health – 137292 sub centres;22807 PHCs and 3027 CHCs Each sub centre has 1 each multipurpose male and female worker Each PHC has medical officer + 14 paramedics/others. Acts as referral unit for 6 SCs & has -6 beds Each CHC has 4 medical specialists (surgeon, physician, gynaec & paed.) + 21 paramedics/other staff. 30 beds + X Ray, labour room, OT, labs. One in 4 CHCs has facilities for obstetric care and specialist consultations. EDUCATION 12,28,501 EDU. INST. PUBLIC DITRIBUTION SYSTEM 4.76 Lakh Fair Price Shops – cover 4 crore out of 11.2 crore HHs