Unit 5
Distribution Strategy
Q1) Explain the emergence of Rural market in India.
A1) The emergence of rural markets as extraordinarily untapped capacity emphasizes the want to discover them. Marketers over the last few decades, with progressive methods, have tried to apprehend and faucet rural markets. Some in their efforts paid off and plenty of market nonetheless an enigma. Rural advertising and marketing are an evolving idea, and as part of any economic system, has untapped capacity; entrepreneurs have found out the possibility recently. Improvement in infrastructure and attain, promise a shiny destiny for the ones proceeding to head rural. Rural customers are eager on branded items nowadays, so the marketplace size for services and products appears to have burgeoned. Indian marketplace for the customer merchandise is made of wonderful parts, one is city and different is rural marketplace. It has been a rely of exceptional enquiry each for the advertising and marketing lecturers and practitioners whether or not there may be a want for growing separate approach for rural markets. By and big, Indian marketplace state of affairs suggests that entrepreneurs have hardly ever pop out with separate advertising and marketing approach for rural markets overtly, however, entrepreneurs did expand separate advertising and marketing blend for rural markets covertly. Whenever it's miles rural advertising and marketing for his or her manufacturers, marketer tended to rate their merchandise low, retaining the goods nice at a median level, slicing charges at the more frills introduced to the product.
Q2) Explain the coverage status in rural market.
A2) The attention of MNC’s and marketers in India was the urban consumer. But not much effort was being made to reach the rural markets. However, this is now changing. The increase in smartphone users and affordable data plans are leading to the growth of online users in the country’s rural regions. It is estimated that by 2023, there will be over 650 million internet users in the country, and this is gradually catching the attention of marketers to tap fresh opportunities emerging in Indian markets. They are not just focusing on the rural markets but also the Next Billion Users (NBU), a segment of users getting online for the first time.
At present, the rural FMCG market accounts for 30% to 50% of the total revenue of FMCG majors. Moreover, the sector in India is likely to reach a valuation of Rs 14 lakh crore per annum by 2025. Simultaneously, the rural market is expected to have a share of 38%, thereby opening new vistas for Indian marketers. Thus, with approximately 69% of the population still residing in rural areas, this is a thriving industry, not just today but for the future in terms of rural marketing.
Q3) What are the channels of distribution?
A3) Marketing channel is the direction taken with the aid of using the identify to the product because its movements from the manufacturer to the last client. Every advertising channel begins off evolved with the manufacturer and ends with the client. The channel member includes wholesalers and shops who're middlemen in distribution and that they carry out all advertising functions. There are many channels used for the distribution of products in rural regions as follows.
1. Manufacturer-Consumer (Direct Sale): In this example, the shares are immediately provided to the last client keeping off middlemen and their commission. This advantages the client and the seller.
2. Manufacturer-Retailer-Consumer: Here the shares are bought to the clients via a community of outlets.
3. Manufacturer-Wholesaler-Retailer-client: The producer appoints the wholesaler in key rural markets and those wholesalers cater to the wishes of outlets in villages. This is famous channel utilized by the manufacturers.
4. Manufacturer-client-Depot / C & F Agent-Retailer-Consumer: In this example, the producer movements the shares to organization depot operated with the aid of using a C and F agent and from those depots; shares are provided immediately to the shops.
5. Manufacturer Company depot / C and F Agent Wholesaler-Retailer-Consumer: This is a prolonged advertising channel and the producer opens his very own depots or appoints C and F sellers in nation capital or in key towns in every nation. Goods are provided to wholesalers running at district headquarter or in industrial centres. Wholesalers in flip carrier the community of outlets.
Q4) What are Haats?
A4) Haats are the periodic markets and the oldest advertising channel in India. These markets offer humans a possibility now no longer most effective to buy client items, however additionally to promote surplus agricultural and allied merchandise. They offer a first-touch factor for villagers with the marketplace, a way for dispensing nearby merchandise and changing rural surplus, a possibility for getting every day requirements in addition to farm resources and system and an area for social, political and cultural touch. Each haat caters to the want of not less than 10 to a most of fifty villages, drawing round 4000 men and women who come to shop for and promote a number every day requirements and offerings.
Q5) What are Mandi?
A5) Mandi Trades now no longer most effective facilitates farmers promote their produce immediately to the client and gets rid of middlemen and nearby buyers, however additionally affords technological information and answers to farmers to reinforce their harvest. It’s a truthful version offers farmers clean get entry to markets, creates employment in the village (and not directly elsewhere), produce is auctioned thereby giving the farmer the first-rate feasible rate, platform in which manufacturers and shoppers meet. But considering that it's far operated with the aid of using humans, it has its very own flaws. The primary problems over which it's far criticized the maximum are inefficiency of its deliver chain with shoppers. The wastage in the mandi deliver chain may be very excessive due to the range of intermediaries in the chain, in particular for veggies-almost 40%. The perish ability of veggies is already very excessive and that coupled with the inefficient dealing with will increase the wastage percent drastically. And the alternative aspect approximately those fashions is that, maximum of them are marketplace-driven. The client offers a listing of commodities that his clients opt to the farmer to grow. It’s like English parliamentarians making legal guidelines to manage India sitting in London. But then, there may be every other aspect going on simultaneously. Parallel to this deliver chain revolution, there may be every other evolution going on in collectivizing farmers via Farmer Producer Organizations and Farmer Clubs. These farmer organizations boom the bargaining electricity of farmers, thereby decreasing the possibilities of them getting exploited with the aid of using the shoppers. Anyways, opposition in the marketplace usually brings out the first-rate from the item. If this lengthy distance relation works out it’s true for the farmers, if it doesn’t, each the farmers analyse their lesson on guidelines of interdependence. Just like how the spiritually conceited orient wanted the materialistic occident’s imperial intervention to remind it of the significance of liberal values, and the consumerist occident wanted a publicity to contended orient to uplift it from non-secular depravity, it wants an out of doors intervention to recognize the significance of equity and innovation.
Q6) What is Public Distribution System (PDS)?
A6) PDS is an item of distribution for vital commodities to a big range of humans via a community of FPS (Fair Price stores, frequently mentioned as ‘ration stores’). The commodities are wheat, rice, sugar, fit for human consumption oil and kerosene. PDS has been advanced to attain the city in addition to the agricultural populace with the intention to guard clients from the fluctuating and escalating rate syndrome. It has emerged as a primary tool of the Government’s monetary coverage aimed toward making sure availability of meals grains to the general public at less costly expenses in addition to for boosting meals protection for the negative.
Q7) What is Cooperative society?
A7) While people having common monetary, social, and cultural pastimes voluntarily come collectively to shape an association, it will become the status quo of a co-operative society. The important cause of co-operative societies is to serve the wishes of underprivileged and rural sections of our community. Co-operative society in rural regions follows the precept of mutual assist and self-assist to achieve the goal of rural improvement. It is sort of a non-earnings business enterprise in which each member joins a co-operative society to offer guide in place of incomes earnings. A vital position of co-operative society’s contribution lies in the development of villages. The co-operative society facilitates in improving the best of fertilizers and allows higher centres for product advertising, consisting of garage, processing, transport, and availing present day cultivation strategies. There are more than one co-operative society furiously running on extraordinary factors to accumulate a sustainable financial system in rural regions. The co-operative societies impart numerous offerings to poverty-troubled sections, consisting of get entry to superior technology, right education in herbal useful resource management, and raise agricultural productiveness with the aid of using growing the delivery of products.
Q8) What are the challenges in rural communication?
A8) The challenges in rural communication are-
Low Literacy Levels: Rural regions are afflicted by low literacy. Customs and traditions rule, which makes adoption of latest merchandise and practices tough. There is likewise a confined penetration of print media in rural markets. Companies, therefore, face problems in growing their verbal exchange blend.
Media Reach and Exposure: Though media attain is enhancing over the years, it's far nonetheless negative in lots of villages. In many media-darkish villages, there may be confined get entry to television, radio and print, and consequently humans have confined publicity. Suitable media cars simply do now no longer exist.
Diverse Audiences: Villages in India display various cultures, languages, numerous customs and traditions and lifestyles. This makes one-length-fits-all approach irrelevant. Companies, used to city-orientated mass campaigns, locate it tough to tailor-make campaigns for each region.
A lack of Information: There is a scarcity of data in rural regions. Lack of true nearby content material and dependable data companies upload to the shortage of applicable data that villagers can use.
Scattered Audiences: Mass media reveals it tough to penetrate rural regions due to the fact audiences are scattered over big distances.
Lack of Well-Developed Infrastructure: Internet penetration is confined due to loss of infrastructure. This is converting as there may be growing use of cellular telephones in rural markets. Any rural communications approach will paintings most effective if the indexed troubles are addressed. Developing powerful verbal exchange.
Q9) What is developing effective communication?
A9) This is a primary task in rural advertising and maximum of the instances business enterprise in to expert businesses to reply this query. The rural client has to join and relate to the message. Broadly, under are the heads to be looked after at the same time as crafting a rural message.
Languages: The message has to be effortlessly understood with the aid of using the agricultural client. It has to be easy and use suitable key phrases for fast join. Message has to mirror subculture and non-secular sentiments of the target market. E.g., Dabur allotted non secular calendars in rural markets.
Pictorial Presentation: Considering the literacy tiers of rural markets, pictorial illustration of message turns into a crucial a part of verbal exchange.
Message Form: The message has to be local to the location and feature software for the client.
Source: Many instances the supply from in which the message is coming from provides to the credibility in the rural marketplace. The message supply may be -
- Likeable
- Trustworthy
- Expert
Q10) How can you determine communication objectives?
A10) Intended dreams of a marketing and marketing or promotional program. Possible communications goals consist of (1) developing attention, (2) presenting knowledge, (3) projecting a photograph, (4) shaping attitudes, (5) stimulating a need or desire (6) effecting a sale.
Increase Awareness: Increased logo attention isn't most effective one of the maximum common advertising verbal exchange goals; it's also normally the primary for a brand-new organization. When you to start with input the marketplace, you need to allow humans recognize your organization and services or products exist. This would possibly consist of broadcast classified ads or print advertisements that depict the photograph of your organization and consistent repetition of your logo name, slogans and jingles. The complete goal is to come to be acknowledged and memorable. Established organizations frequently use a intently-associated purpose of constructing or preserving pinnacle-of-thoughts attention, this means that clients consider you first while thinking about your product category.
Change Attitudes: Changing organization or logo perceptions is every other common verbal exchange goal. Sometimes, misconceptions expand in the marketplace approximately your organization, services or products. Advertising is a manner to deal with them immediately. In different instances, terrible exposure effects due to the fact your organization is concerned in a commercial enterprise scandal or unsettling sports. BP Invested hundreds of thousands of bucks in marketing and marketing to provide an explanation for the organization’s easy up efforts to the general public following its notorious Gulf of Mexico oil spill in mid-2010. Local corporations generally do not have that sort of price range however nearby radio or print advertisements can do the trick.
Influence Purchase Intent: A key verbal exchange goal is to inspire clients to shop for. This is generally performed via persuasive marketing and marketing, which includes emphasis of your advanced advantages to the user, commonly relative to competitors. It is vital to ring a bell with the underlying want or need that triggers a patron to behave. Sports drink classified ads displaying athletes competing, getting warm and sweaty after which taking a drink later on is a common technique to power buy intent. The advertisements generally consist of advantages of the drink associated with flavour or nutrients.
Stimulate Trial Purchase: Two separate however intently associated verbal exchange goals are to stimulate trial use and power repeat purchases. Free trials or product samples are common strategies to influence clients to attempt your product for the primary time. The purpose is to eliminate the chance and get the patron to revel in your logo. Once you get them on the primary buy, you need to discern out a way to convert that right into a follow-up buy. Discounts on the following buy or frequency packages are approaches to show one-time customers into repeat shoppers and, ultimately, unswerving clients.
Drive Brand Switching: Another goal intently tied to stimulating trial use is riding logo switching. This is a particular goal of having clients who purchase competing merchandise to exchange on your logo. Tide detergent is generally pitted against "different main manufacturers" in comparative advertisements meant to inspire logo switching. The gain with this purpose is that clients already purchase inside your product category. This way want is hooked up. You simply want to influence them that your services or products is advanced and result in them to attempt it out.
Q11) What is Designing the message?
A11) In advertising, the time period “messaging” refers to how a business enterprise talks approximately itself and the price it affords. Related to positioning, messaging is a permitted set of key factors or messages a business enterprise makes use of to speak approximately something with a goal target market. Messaging interprets a positioning declaration into a fixed of convincing “key message” statements. Marketers use those statements to expand substances for advertising communications consisting of advert slogans, marketing and marketing copy, social media posts, press releases, presentation scripts, and so forth. Messaging files are a blueprint for what all of the different substances–and humans–have to speak.
- Express the principal concept you need humans to recognize and don't forget approximately your offering
- Resonate with the target market you're targeting, such that they pay interest and sense what you're pronouncing matters
- Articulate truly and concisely what you want to speak approximately: e.g., what you stand for, why you're extraordinary, what price you provide, what troubles you solve, and so forth.
The message content material, in addition to the voice, tone, and fashion of the message, can also additionally range broadly, relying at the business enterprise’s identity and what it desires to accomplish with the verbal exchange. Those entire factors thing into the important thing messages and the advent of advertising verbal exchange artifacts primarily based totally at the messaging.
Q12) How can you select the communication channels?
A12) How do you decide what verbal exchange channels are proper to your commercial enterprise? First and foremost, when you have now no longer finished the primary 4 steps of your Strategic Marketing Plan What’s the first-rate manner to your commercial enterprise to speak to its target market? With extraordinarily various marketing and marketing all round us the alternatives are endless. It may be a big task on the subject of choosing your verbal exchange channels. When you locate advertisers to apply, it is able to be tough to without a doubt recognize which one is the first-rate to your goal marketplace. With big numbers of attain and publicity, it is able to be tempting to select an advertiser that “makes sense” and has a aggressive rate. Properly choosing the verbal exchange channels your commercial enterprise makes use of to sell itself is an excessive price undertaking that wishes to be performed carefully.
What are verbal exchange channels? Communication channels the techniques a commercial enterprise makes use of to bring its message to the world. Examples of verbal exchange channels:
- Social Media Platforms
- Newspaper
- Face to Face
- Emails
- Lawn Signs
- Radio
- Newsletters
- Google Ads
- Google Ads
There are four steps to nicely choosing communication channels:
1. Select 2. Research 3. Rank 4. Evaluate Resources.
Select Potential Channels: The first step in the system is to pick out potential verbal exchange channels that sense like an amazing suit to your commercial enterprise. Select but many channels are “potentially” an amazing suit and write them down. Just recognize that you may have to investigate and charge every choice in later steps. Here is a listing of verbal exchange channels available that you could need to consider. This listing is most effective to provide you a few thoughts; there are numerous different channels available.
Research: Once you've got a listing of potential verbal exchange channels, it's time to do your homework. Start studying crucial data for every channel so you can role yourself to rank them. Get innovative with the way you study and write down your findings. Before your studies, set a purpose for unique data you would really like to obtain:
Target Market Reach – who the verbal exchange channel reaches.
- Demographic attains
- Psychographic attain
- Geographic attains
Monetary Cost – the quantity of cash it prices your business enterprise to apply that unique channel.
Time Cost – the quantity of time it takes your business enterprise to apply that unique channel.
Skill Level Required – the ability degree required to nicely make use of that channel.
Start your studies at the net. You could be capable of locate useful content material from commercial enterprise proprietors like yourself who've already long passed out and attempted those precise channels. With blogs, YouTube, and podcasts you could locate useful data, and in all likelihood even a listing of the first-rate verbal exchange channels to your kind of commercial enterprise. Always make certain your reality takes a look at recommendations on-line and search for quantitative information. Most verbal exchange channels run with the aid of using marketing and marketing businesses have performed the statistical assessment for you. Advertisers like Facebook or your nearby radio organization can have big quantities of quantitative data to your reference.
Ranking: Phase 3 is in which you rank your preferred verbal exchange channels. Ranking is crucial as it will permit you to decide in which your sources could be designated. Communication channels aren't made equally; a few will offer extra price on your commercial enterprise than others.
Target Market Focus: Each Communication Channel wishes to be quite cantered in your goal marketplace. There are various tiers of ways cantered positive channels may be. The extra centred it's far on your goal marketplace, the extra the ROI. You won’t waste money and time with individuals who don’t want what you’re promoting in case you locate channels which might be notably centred in your goal marketplace.
The simplest manner to rank this in on a scale of 1-10.
1 now no longer centred in your goal marketplace at all.
10 very centred in your goal marketplace.
Monetary Cost: The sum of money had to spend on verbal exchange channels is usually a concern; unfortunately, frequently instances that is the most effective degree commercial enterprise proprietors will consider. It’s apparent that the inexpensive alternatives are extra attractive; however, we have to make certain to take all measures under consideration to decide authentic ROI.
The first-rate manner to degree that is to assign a greenback quantity to a particular purpose or time frame ($100/month, $50/1k character attain, and so forth)
Time Cost: Oftentimes, time-value may be an underlying rate on your organization this is extra unfavourable than the floor prices. Make certain to do your homework and feature an amazing know-how of ways plenty time a positive verbal exchange channel can also additionally require.
The first-rate manner to rank is with time/time degree (hrs/week, hrs/month)
Skill degree required: Always do your studies into the quantity of ability required to nicely speak in every channel. Many bosses and proprietors are sluggish to recognize that there may be unfavourable results on their organization photograph in the event that they did now no longer own the sources professional sufficient to nicely speak of their verbal exchange channels.
The simplest manner is to rank on a scale of 1-10.
1 being complicated to apply – requiring plenty of ability and expertise.
10 being clean to apply – infrequently requiring any ability to apply well.
Evaluate Resources:
Once you've got ranked all of your verbal exchange channels, now's the time to assess your sources. Evaluating your sources is crucial to do earlier than you construct your income funnel. It lets in you to take a practical take a look at what's viable in the brief time period. Your commercial enterprise will shop money and time in the end in case you make certain you could enforce the approach you're developing.
Create a listing of the sources you have already got at your disposal. These sources can consist of:
- Employees
- Monetary price range
- Potential services or products to help
Q13) How can you create advertisements for rural audience?
A13) When you need to gain a grand fulfilment in the marketplace, it isn't feasible to disregard the agricultural marketplace. It occupies a large chew of the pie, and there was an extremely good boom in the marketplace potential because of top notch monetary increase in India. Marketing professionals say that rural advertising is an extraordinary ball recreation that forces advertising professionals to unlearn the traditional concepts. All factors of product advertising ought to be made over and refurbished while you attention villages. Outdoor advertising, one of the pivotal factors of the advertising plan, isn’t an exception to it. In reality, it's far pretty difficult to layout Outdoor marketing and marketing in Indian village in comparison to towns and cities.
Ways of attracting rural clients with the aid of using out of doors marketing and marketing as referred to earlier, rural advertising is a specialized niche; advertising specialists are required to brainstorm to discover progressive and innovative thoughts. Since it wishes large cash to sell the logo in small villages, it's far moreover crucial to hold the prices below manipulate. Here are some powerful thoughts of attracting a big range of humans with the aid of using spending less.
Street shows: Have you ever visible avenue suggests in small cities and villages? Yes, they have been pretty famous in the vintage days even in large towns. However, they've remained restricted to the villages nowadays. There were examples of the innovative and powerful use of avenue suggests for advertising sports.
Wall painting: You have to have located wall artwork in the rural regions selling manufacturers and merchandise. It is pretty famous due to the fact there are advantages of it. Firstly, the wall receives painted with none value which is a great aspect from the owner’s factor of view. From advertising organization’s perspective, it doesn’t require to spend one by one for rent. Thus, it's far a win-win situation.
Unconventional advertising strategies consisting of Audio Wala Bus Stand: With the powerful and impactful use of creativity and innovation, clever advertising organizations were attention a position to tug the eye of rural humans. Vritti media is an organization that made records with the aid of using the usage of bus stands for product promoting and logo constructing. It used the audio assertion item of bus stands in a few decided on states in which bus carrier is top notch. Since the footfall is pretty excessive in those states, the promotional sports have been pretty powerful and beneficial. With sensible product choice and attractive thoughts, Vritti has been a hit in making the first-rate use of it so far.
Q14) What is Mass Media?
A14) Mass media, the fourth pillar of democracy plays a pivotal position in up keeping the socio-political system of a rustic sound and healthy. Due to the development of data and communication technology (ICT), the position of mass media has been accelerated to a better order. Man has conquered time and area because of this contemporary technology. The print and digital media remain at the helm of affairs in each corner and nook of the world. Media touches the remotest village and unfolds the irony at the back of the scene. Mass media really connects the complete universe with a noble mission to percentage the sorrows and sufferings, pains and strains, fulfilment testimonies of the society. It always, if nicely controlled, takes an essential element in political affairs. As we recognize the improvement of a country relies upon up on the political will electricity, it fires now no longer most effective the spirit of legislature however additionally the other pillars of democracy. Analysis of the affairs of a rustic is notably vital for smooth progress.
Mass media carry out the position of a dynamic watchdog and erects its arms towards any backlog in an item. It diagnoses the system and opens the pitfalls and attempts to rectify it. With the developing penetration of mass media channels like TV and radio at the side of net in rural India, the vintage hooked up time period ‘Media Dark’ is getting fading away. According to a current survey carried out with the aid of using National Bank for Agriculture and Rural Development (NABARD), fifty-seven percentage families very own TV and 87 percentage use cellular phone.
With this, verbal exchange has come to be less complicated in the rural markets, however a large query nonetheless exists, and do rural humans believe the mass media marketing and marketing? The solution is, it's far nonetheless now no longer conducive for the entrepreneurs who're inclined to speak with the agricultural clients and who need to attain the agricultural clients via their marketing and marketing campaigns on TV, radio or net.
Q15) What is non-conventional media?
A15) The villages and small cities of India, which have been as soon as taken into consideration inconsequential from the advertising factor of view, at the moment, are getting the eye of the entrepreneurs and rural markets are proving to be essential for the increase of maximum of the FMCG (Fast Moving Consumer Goods) organizations. Rural India money owed for extra than 30 - 60 in line with cent of the full income of client items like biscuits, toothpastes, shampoos, washing machines and so forth. Because of saturation in the city markets, advertising approach have to shift its interest toward the agricultural markets, which can be now no longer visible because the dumping grounds of the client merchandise famous in city regions. Rural clients have a wonderful desire in their very own. But because of perceptible modifications visible in the development of infrastructure, growing degree of profits, explosion of media and huge insurance of TV, radio and so forth., the space among the city and rural divide is progressively narrowing. The rural client is extra discrete, extra cash-aware and extra utilitarian in outlook. The advertising verbal exchange MARCOM approach for rural regions have to be extraordinary from the city regions due to inaccessibility of strength and electronics media, skinny populace density and broadly scattered villages, negative publicity, low disposable profits and availability of counterfeit merchandise.
Q16) What is Personalized media?
A16) Social media refers back to the web-primarily based totally tolls and media that permit customers to in my view and informally interact, create percentage, retrieve and trade data and thoughts in digital groups and networks. Social media consists of social networking sites, blogs, micro-blogs, on-line forums, dialogue forums and corporations, Wikipedia, socially included textual content messaging. The youngsters aren't matured sufficient to distinguish among fable and actual life. Apart from this, over usage of social media decreases the quantity of time to be had for pursuing different sports which can be beneficial for his or her bodily and intellectual fitness and spending time with their own circle of relatives’ members. The revolution of verbal exchange in India during the last decade is astonishing.
Technology has been developing at a speedy charge to house the wishes and dreams of humans in acquiring a less complicated and extra green lifestyle. One of the best technologies to hit this twenty first century is the cell phone. At gift, India is shifting from an agrarian primarily based totally financial system to carrier-primarily based totally financial system. Consequently, the youngsters of India has grew to become tech savvy with the brand new digital media channels, e.g., radio, satellites, TV channels, cellular telephones, laptops and computer systems with cellular net. This has proved to be an effective pressure in the social transformation of city in addition to rural youngsters of India. The gift digital technology has each its professionals and cons. The digital technology now no longer most effective furnished higher, quicker and stepped forward running capacity of younger humans however additionally an emergence and new shape of disease in Indian youngsters. Since the closing decade, the over usage of social media is an ongoing pastime that's growing at an alarming charge and main to dependency shape a few of the Indian youngsters that's a severe concern. Problems springing up from over usage of social media were documented global consisting of in India, in which using social media has extended noticeably.
Q17) What is Evolution of rural distribution systems?
A17) Evolution of rural distribution systems are as follows:
1. Historically, the rural distribution system has included retailers, wholesalers, mobile traders, vans and weekly haats.
2. In the feeder markets, retailers act as wholesalers and vice versa to sell to small retailers who come from surrounding villages.
3.Some town retailers send their salesmen to villages to book orders and supply goods to these small retailers.
Q18) Write short note on wholesaling.
A18) Wholesaling involves the following:
1. 50% of rural consumption is still routed through wholesalers, because they are located in nearby feeder markets, which are frequented by village retailers to replenish stocks.
2. Indian wholesaler is a trader, rather than a distributor and as a result tends to support a brand during periods of boom and withdraws support during periods of slump.
3. Rural markets were neglected by most companies due to the low density of retail outlets and the small off-take per retailer. Wholesalers based in feeder towns took advantage of this situation as village retailers found it convenient to buy from these places. This resulted in the hold of the market by these wholesalers, who often indulged in trade malpractices in the channel.
Q19 Write short note on Rural retail system.
A19) Rural retail system functions as follows:
- Rural India accounts for 65% of retail outlets in the country. The logistics of feeding the 35 lakh retail outlets spread over 6 lakh villages is a tough task.
- The high distribution costs due to geographical spread and low volumes per outlet act as a barrier to the entry of products in rural markets.
- The average monthly sale per village shop is less than Rs. 5000/-, which restricts the variety and range of the products stocked.
- As a significant portion of the sale is on credit, it puts most village shops in a self-limiting sales cycle.
- Despite the same product being available in the village shop, 58% of villagers prefer to buy these from a haat because of better price, quality and variety.
Q19) Write short note on VANS.
A20) The uses of vans are as follows:
1. Mobile vans have an important place in the distribution and promotion of products in villages.
2. In this system, the salesman loads the van with stocks from the nearest stockiest or company stock point and works the surrounding markets.
3. Once he has covered all such markets, he moves to the next stock point and starts covering the villages surrounding that stock point.
4. Eveready batteries and torches are market leaders. It established an extensive distribution network that includes 1000 vans, 4000+ distributors and 44 warehouses. These vans reach 6 lakh retail outlets directly, each van making 50 to 60 calls per day. The company ensures that the van revisits a retailer every 15 days. The stock for these vans is supplied by the small-town distributors.
Unit 5
Distribution Strategy
Q1) Explain the emergence of Rural market in India.
A1) The emergence of rural markets as extraordinarily untapped capacity emphasizes the want to discover them. Marketers over the last few decades, with progressive methods, have tried to apprehend and faucet rural markets. Some in their efforts paid off and plenty of market nonetheless an enigma. Rural advertising and marketing are an evolving idea, and as part of any economic system, has untapped capacity; entrepreneurs have found out the possibility recently. Improvement in infrastructure and attain, promise a shiny destiny for the ones proceeding to head rural. Rural customers are eager on branded items nowadays, so the marketplace size for services and products appears to have burgeoned. Indian marketplace for the customer merchandise is made of wonderful parts, one is city and different is rural marketplace. It has been a rely of exceptional enquiry each for the advertising and marketing lecturers and practitioners whether or not there may be a want for growing separate approach for rural markets. By and big, Indian marketplace state of affairs suggests that entrepreneurs have hardly ever pop out with separate advertising and marketing approach for rural markets overtly, however, entrepreneurs did expand separate advertising and marketing blend for rural markets covertly. Whenever it's miles rural advertising and marketing for his or her manufacturers, marketer tended to rate their merchandise low, retaining the goods nice at a median level, slicing charges at the more frills introduced to the product.
Q2) Explain the coverage status in rural market.
A2) The attention of MNC’s and marketers in India was the urban consumer. But not much effort was being made to reach the rural markets. However, this is now changing. The increase in smartphone users and affordable data plans are leading to the growth of online users in the country’s rural regions. It is estimated that by 2023, there will be over 650 million internet users in the country, and this is gradually catching the attention of marketers to tap fresh opportunities emerging in Indian markets. They are not just focusing on the rural markets but also the Next Billion Users (NBU), a segment of users getting online for the first time.
At present, the rural FMCG market accounts for 30% to 50% of the total revenue of FMCG majors. Moreover, the sector in India is likely to reach a valuation of Rs 14 lakh crore per annum by 2025. Simultaneously, the rural market is expected to have a share of 38%, thereby opening new vistas for Indian marketers. Thus, with approximately 69% of the population still residing in rural areas, this is a thriving industry, not just today but for the future in terms of rural marketing.
Q3) What are the channels of distribution?
A3) Marketing channel is the direction taken with the aid of using the identify to the product because its movements from the manufacturer to the last client. Every advertising channel begins off evolved with the manufacturer and ends with the client. The channel member includes wholesalers and shops who're middlemen in distribution and that they carry out all advertising functions. There are many channels used for the distribution of products in rural regions as follows.
1. Manufacturer-Consumer (Direct Sale): In this example, the shares are immediately provided to the last client keeping off middlemen and their commission. This advantages the client and the seller.
2. Manufacturer-Retailer-Consumer: Here the shares are bought to the clients via a community of outlets.
3. Manufacturer-Wholesaler-Retailer-client: The producer appoints the wholesaler in key rural markets and those wholesalers cater to the wishes of outlets in villages. This is famous channel utilized by the manufacturers.
4. Manufacturer-client-Depot / C & F Agent-Retailer-Consumer: In this example, the producer movements the shares to organization depot operated with the aid of using a C and F agent and from those depots; shares are provided immediately to the shops.
5. Manufacturer Company depot / C and F Agent Wholesaler-Retailer-Consumer: This is a prolonged advertising channel and the producer opens his very own depots or appoints C and F sellers in nation capital or in key towns in every nation. Goods are provided to wholesalers running at district headquarter or in industrial centres. Wholesalers in flip carrier the community of outlets.
Q4) What are Haats?
A4) Haats are the periodic markets and the oldest advertising channel in India. These markets offer humans a possibility now no longer most effective to buy client items, however additionally to promote surplus agricultural and allied merchandise. They offer a first-touch factor for villagers with the marketplace, a way for dispensing nearby merchandise and changing rural surplus, a possibility for getting every day requirements in addition to farm resources and system and an area for social, political and cultural touch. Each haat caters to the want of not less than 10 to a most of fifty villages, drawing round 4000 men and women who come to shop for and promote a number every day requirements and offerings.
Q5) What are Mandi?
A5) Mandi Trades now no longer most effective facilitates farmers promote their produce immediately to the client and gets rid of middlemen and nearby buyers, however additionally affords technological information and answers to farmers to reinforce their harvest. It’s a truthful version offers farmers clean get entry to markets, creates employment in the village (and not directly elsewhere), produce is auctioned thereby giving the farmer the first-rate feasible rate, platform in which manufacturers and shoppers meet. But considering that it's far operated with the aid of using humans, it has its very own flaws. The primary problems over which it's far criticized the maximum are inefficiency of its deliver chain with shoppers. The wastage in the mandi deliver chain may be very excessive due to the range of intermediaries in the chain, in particular for veggies-almost 40%. The perish ability of veggies is already very excessive and that coupled with the inefficient dealing with will increase the wastage percent drastically. And the alternative aspect approximately those fashions is that, maximum of them are marketplace-driven. The client offers a listing of commodities that his clients opt to the farmer to grow. It’s like English parliamentarians making legal guidelines to manage India sitting in London. But then, there may be every other aspect going on simultaneously. Parallel to this deliver chain revolution, there may be every other evolution going on in collectivizing farmers via Farmer Producer Organizations and Farmer Clubs. These farmer organizations boom the bargaining electricity of farmers, thereby decreasing the possibilities of them getting exploited with the aid of using the shoppers. Anyways, opposition in the marketplace usually brings out the first-rate from the item. If this lengthy distance relation works out it’s true for the farmers, if it doesn’t, each the farmers analyse their lesson on guidelines of interdependence. Just like how the spiritually conceited orient wanted the materialistic occident’s imperial intervention to remind it of the significance of liberal values, and the consumerist occident wanted a publicity to contended orient to uplift it from non-secular depravity, it wants an out of doors intervention to recognize the significance of equity and innovation.
Q6) What is Public Distribution System (PDS)?
A6) PDS is an item of distribution for vital commodities to a big range of humans via a community of FPS (Fair Price stores, frequently mentioned as ‘ration stores’). The commodities are wheat, rice, sugar, fit for human consumption oil and kerosene. PDS has been advanced to attain the city in addition to the agricultural populace with the intention to guard clients from the fluctuating and escalating rate syndrome. It has emerged as a primary tool of the Government’s monetary coverage aimed toward making sure availability of meals grains to the general public at less costly expenses in addition to for boosting meals protection for the negative.
Q7) What is Cooperative society?
A7) While people having common monetary, social, and cultural pastimes voluntarily come collectively to shape an association, it will become the status quo of a co-operative society. The important cause of co-operative societies is to serve the wishes of underprivileged and rural sections of our community. Co-operative society in rural regions follows the precept of mutual assist and self-assist to achieve the goal of rural improvement. It is sort of a non-earnings business enterprise in which each member joins a co-operative society to offer guide in place of incomes earnings. A vital position of co-operative society’s contribution lies in the development of villages. The co-operative society facilitates in improving the best of fertilizers and allows higher centres for product advertising, consisting of garage, processing, transport, and availing present day cultivation strategies. There are more than one co-operative society furiously running on extraordinary factors to accumulate a sustainable financial system in rural regions. The co-operative societies impart numerous offerings to poverty-troubled sections, consisting of get entry to superior technology, right education in herbal useful resource management, and raise agricultural productiveness with the aid of using growing the delivery of products.
Q8) What are the challenges in rural communication?
A8) The challenges in rural communication are-
Low Literacy Levels: Rural regions are afflicted by low literacy. Customs and traditions rule, which makes adoption of latest merchandise and practices tough. There is likewise a confined penetration of print media in rural markets. Companies, therefore, face problems in growing their verbal exchange blend.
Media Reach and Exposure: Though media attain is enhancing over the years, it's far nonetheless negative in lots of villages. In many media-darkish villages, there may be confined get entry to television, radio and print, and consequently humans have confined publicity. Suitable media cars simply do now no longer exist.
Diverse Audiences: Villages in India display various cultures, languages, numerous customs and traditions and lifestyles. This makes one-length-fits-all approach irrelevant. Companies, used to city-orientated mass campaigns, locate it tough to tailor-make campaigns for each region.
A lack of Information: There is a scarcity of data in rural regions. Lack of true nearby content material and dependable data companies upload to the shortage of applicable data that villagers can use.
Scattered Audiences: Mass media reveals it tough to penetrate rural regions due to the fact audiences are scattered over big distances.
Lack of Well-Developed Infrastructure: Internet penetration is confined due to loss of infrastructure. This is converting as there may be growing use of cellular telephones in rural markets. Any rural communications approach will paintings most effective if the indexed troubles are addressed. Developing powerful verbal exchange.
Q9) What is developing effective communication?
A9) This is a primary task in rural advertising and maximum of the instances business enterprise in to expert businesses to reply this query. The rural client has to join and relate to the message. Broadly, under are the heads to be looked after at the same time as crafting a rural message.
Languages: The message has to be effortlessly understood with the aid of using the agricultural client. It has to be easy and use suitable key phrases for fast join. Message has to mirror subculture and non-secular sentiments of the target market. E.g., Dabur allotted non secular calendars in rural markets.
Pictorial Presentation: Considering the literacy tiers of rural markets, pictorial illustration of message turns into a crucial a part of verbal exchange.
Message Form: The message has to be local to the location and feature software for the client.
Source: Many instances the supply from in which the message is coming from provides to the credibility in the rural marketplace. The message supply may be -
- Likeable
- Trustworthy
- Expert
Q10) How can you determine communication objectives?
A10) Intended dreams of a marketing and marketing or promotional program. Possible communications goals consist of (1) developing attention, (2) presenting knowledge, (3) projecting a photograph, (4) shaping attitudes, (5) stimulating a need or desire (6) effecting a sale.
Increase Awareness: Increased logo attention isn't most effective one of the maximum common advertising verbal exchange goals; it's also normally the primary for a brand-new organization. When you to start with input the marketplace, you need to allow humans recognize your organization and services or products exist. This would possibly consist of broadcast classified ads or print advertisements that depict the photograph of your organization and consistent repetition of your logo name, slogans and jingles. The complete goal is to come to be acknowledged and memorable. Established organizations frequently use a intently-associated purpose of constructing or preserving pinnacle-of-thoughts attention, this means that clients consider you first while thinking about your product category.
Change Attitudes: Changing organization or logo perceptions is every other common verbal exchange goal. Sometimes, misconceptions expand in the marketplace approximately your organization, services or products. Advertising is a manner to deal with them immediately. In different instances, terrible exposure effects due to the fact your organization is concerned in a commercial enterprise scandal or unsettling sports. BP Invested hundreds of thousands of bucks in marketing and marketing to provide an explanation for the organization’s easy up efforts to the general public following its notorious Gulf of Mexico oil spill in mid-2010. Local corporations generally do not have that sort of price range however nearby radio or print advertisements can do the trick.
Influence Purchase Intent: A key verbal exchange goal is to inspire clients to shop for. This is generally performed via persuasive marketing and marketing, which includes emphasis of your advanced advantages to the user, commonly relative to competitors. It is vital to ring a bell with the underlying want or need that triggers a patron to behave. Sports drink classified ads displaying athletes competing, getting warm and sweaty after which taking a drink later on is a common technique to power buy intent. The advertisements generally consist of advantages of the drink associated with flavour or nutrients.
Stimulate Trial Purchase: Two separate however intently associated verbal exchange goals are to stimulate trial use and power repeat purchases. Free trials or product samples are common strategies to influence clients to attempt your product for the primary time. The purpose is to eliminate the chance and get the patron to revel in your logo. Once you get them on the primary buy, you need to discern out a way to convert that right into a follow-up buy. Discounts on the following buy or frequency packages are approaches to show one-time customers into repeat shoppers and, ultimately, unswerving clients.
Drive Brand Switching: Another goal intently tied to stimulating trial use is riding logo switching. This is a particular goal of having clients who purchase competing merchandise to exchange on your logo. Tide detergent is generally pitted against "different main manufacturers" in comparative advertisements meant to inspire logo switching. The gain with this purpose is that clients already purchase inside your product category. This way want is hooked up. You simply want to influence them that your services or products is advanced and result in them to attempt it out.
Q11) What is Designing the message?
A11) In advertising, the time period “messaging” refers to how a business enterprise talks approximately itself and the price it affords. Related to positioning, messaging is a permitted set of key factors or messages a business enterprise makes use of to speak approximately something with a goal target market. Messaging interprets a positioning declaration into a fixed of convincing “key message” statements. Marketers use those statements to expand substances for advertising communications consisting of advert slogans, marketing and marketing copy, social media posts, press releases, presentation scripts, and so forth. Messaging files are a blueprint for what all of the different substances–and humans–have to speak.
- Express the principal concept you need humans to recognize and don't forget approximately your offering
- Resonate with the target market you're targeting, such that they pay interest and sense what you're pronouncing matters
- Articulate truly and concisely what you want to speak approximately: e.g., what you stand for, why you're extraordinary, what price you provide, what troubles you solve, and so forth.
The message content material, in addition to the voice, tone, and fashion of the message, can also additionally range broadly, relying at the business enterprise’s identity and what it desires to accomplish with the verbal exchange. Those entire factors thing into the important thing messages and the advent of advertising verbal exchange artifacts primarily based totally at the messaging.
Q12) How can you select the communication channels?
A12) How do you decide what verbal exchange channels are proper to your commercial enterprise? First and foremost, when you have now no longer finished the primary 4 steps of your Strategic Marketing Plan What’s the first-rate manner to your commercial enterprise to speak to its target market? With extraordinarily various marketing and marketing all round us the alternatives are endless. It may be a big task on the subject of choosing your verbal exchange channels. When you locate advertisers to apply, it is able to be tough to without a doubt recognize which one is the first-rate to your goal marketplace. With big numbers of attain and publicity, it is able to be tempting to select an advertiser that “makes sense” and has a aggressive rate. Properly choosing the verbal exchange channels your commercial enterprise makes use of to sell itself is an excessive price undertaking that wishes to be performed carefully.
What are verbal exchange channels? Communication channels the techniques a commercial enterprise makes use of to bring its message to the world. Examples of verbal exchange channels:
- Social Media Platforms
- Newspaper
- Face to Face
- Emails
- Lawn Signs
- Radio
- Newsletters
- Google Ads
- Google Ads
There are four steps to nicely choosing communication channels:
1. Select 2. Research 3. Rank 4. Evaluate Resources.
Select Potential Channels: The first step in the system is to pick out potential verbal exchange channels that sense like an amazing suit to your commercial enterprise. Select but many channels are “potentially” an amazing suit and write them down. Just recognize that you may have to investigate and charge every choice in later steps. Here is a listing of verbal exchange channels available that you could need to consider. This listing is most effective to provide you a few thoughts; there are numerous different channels available.
Research: Once you've got a listing of potential verbal exchange channels, it's time to do your homework. Start studying crucial data for every channel so you can role yourself to rank them. Get innovative with the way you study and write down your findings. Before your studies, set a purpose for unique data you would really like to obtain:
Target Market Reach – who the verbal exchange channel reaches.
- Demographic attains
- Psychographic attain
- Geographic attains
Monetary Cost – the quantity of cash it prices your business enterprise to apply that unique channel.
Time Cost – the quantity of time it takes your business enterprise to apply that unique channel.
Skill Level Required – the ability degree required to nicely make use of that channel.
Start your studies at the net. You could be capable of locate useful content material from commercial enterprise proprietors like yourself who've already long passed out and attempted those precise channels. With blogs, YouTube, and podcasts you could locate useful data, and in all likelihood even a listing of the first-rate verbal exchange channels to your kind of commercial enterprise. Always make certain your reality takes a look at recommendations on-line and search for quantitative information. Most verbal exchange channels run with the aid of using marketing and marketing businesses have performed the statistical assessment for you. Advertisers like Facebook or your nearby radio organization can have big quantities of quantitative data to your reference.
Ranking: Phase 3 is in which you rank your preferred verbal exchange channels. Ranking is crucial as it will permit you to decide in which your sources could be designated. Communication channels aren't made equally; a few will offer extra price on your commercial enterprise than others.
Target Market Focus: Each Communication Channel wishes to be quite cantered in your goal marketplace. There are various tiers of ways cantered positive channels may be. The extra centred it's far on your goal marketplace, the extra the ROI. You won’t waste money and time with individuals who don’t want what you’re promoting in case you locate channels which might be notably centred in your goal marketplace.
The simplest manner to rank this in on a scale of 1-10.
1 now no longer centred in your goal marketplace at all.
10 very centred in your goal marketplace.
Monetary Cost: The sum of money had to spend on verbal exchange channels is usually a concern; unfortunately, frequently instances that is the most effective degree commercial enterprise proprietors will consider. It’s apparent that the inexpensive alternatives are extra attractive; however, we have to make certain to take all measures under consideration to decide authentic ROI.
The first-rate manner to degree that is to assign a greenback quantity to a particular purpose or time frame ($100/month, $50/1k character attain, and so forth)
Time Cost: Oftentimes, time-value may be an underlying rate on your organization this is extra unfavourable than the floor prices. Make certain to do your homework and feature an amazing know-how of ways plenty time a positive verbal exchange channel can also additionally require.
The first-rate manner to rank is with time/time degree (hrs/week, hrs/month)
Skill degree required: Always do your studies into the quantity of ability required to nicely speak in every channel. Many bosses and proprietors are sluggish to recognize that there may be unfavourable results on their organization photograph in the event that they did now no longer own the sources professional sufficient to nicely speak of their verbal exchange channels.
The simplest manner is to rank on a scale of 1-10.
1 being complicated to apply – requiring plenty of ability and expertise.
10 being clean to apply – infrequently requiring any ability to apply well.
Evaluate Resources:
Once you've got ranked all of your verbal exchange channels, now's the time to assess your sources. Evaluating your sources is crucial to do earlier than you construct your income funnel. It lets in you to take a practical take a look at what's viable in the brief time period. Your commercial enterprise will shop money and time in the end in case you make certain you could enforce the approach you're developing.
Create a listing of the sources you have already got at your disposal. These sources can consist of:
- Employees
- Monetary price range
- Potential services or products to help
Q13) How can you create advertisements for rural audience?
A13) When you need to gain a grand fulfilment in the marketplace, it isn't feasible to disregard the agricultural marketplace. It occupies a large chew of the pie, and there was an extremely good boom in the marketplace potential because of top notch monetary increase in India. Marketing professionals say that rural advertising is an extraordinary ball recreation that forces advertising professionals to unlearn the traditional concepts. All factors of product advertising ought to be made over and refurbished while you attention villages. Outdoor advertising, one of the pivotal factors of the advertising plan, isn’t an exception to it. In reality, it's far pretty difficult to layout Outdoor marketing and marketing in Indian village in comparison to towns and cities.
Ways of attracting rural clients with the aid of using out of doors marketing and marketing as referred to earlier, rural advertising is a specialized niche; advertising specialists are required to brainstorm to discover progressive and innovative thoughts. Since it wishes large cash to sell the logo in small villages, it's far moreover crucial to hold the prices below manipulate. Here are some powerful thoughts of attracting a big range of humans with the aid of using spending less.
Street shows: Have you ever visible avenue suggests in small cities and villages? Yes, they have been pretty famous in the vintage days even in large towns. However, they've remained restricted to the villages nowadays. There were examples of the innovative and powerful use of avenue suggests for advertising sports.
Wall painting: You have to have located wall artwork in the rural regions selling manufacturers and merchandise. It is pretty famous due to the fact there are advantages of it. Firstly, the wall receives painted with none value which is a great aspect from the owner’s factor of view. From advertising organization’s perspective, it doesn’t require to spend one by one for rent. Thus, it's far a win-win situation.
Unconventional advertising strategies consisting of Audio Wala Bus Stand: With the powerful and impactful use of creativity and innovation, clever advertising organizations were attention a position to tug the eye of rural humans. Vritti media is an organization that made records with the aid of using the usage of bus stands for product promoting and logo constructing. It used the audio assertion item of bus stands in a few decided on states in which bus carrier is top notch. Since the footfall is pretty excessive in those states, the promotional sports have been pretty powerful and beneficial. With sensible product choice and attractive thoughts, Vritti has been a hit in making the first-rate use of it so far.
Q14) What is Mass Media?
A14) Mass media, the fourth pillar of democracy plays a pivotal position in up keeping the socio-political system of a rustic sound and healthy. Due to the development of data and communication technology (ICT), the position of mass media has been accelerated to a better order. Man has conquered time and area because of this contemporary technology. The print and digital media remain at the helm of affairs in each corner and nook of the world. Media touches the remotest village and unfolds the irony at the back of the scene. Mass media really connects the complete universe with a noble mission to percentage the sorrows and sufferings, pains and strains, fulfilment testimonies of the society. It always, if nicely controlled, takes an essential element in political affairs. As we recognize the improvement of a country relies upon up on the political will electricity, it fires now no longer most effective the spirit of legislature however additionally the other pillars of democracy. Analysis of the affairs of a rustic is notably vital for smooth progress.
Mass media carry out the position of a dynamic watchdog and erects its arms towards any backlog in an item. It diagnoses the system and opens the pitfalls and attempts to rectify it. With the developing penetration of mass media channels like TV and radio at the side of net in rural India, the vintage hooked up time period ‘Media Dark’ is getting fading away. According to a current survey carried out with the aid of using National Bank for Agriculture and Rural Development (NABARD), fifty-seven percentage families very own TV and 87 percentage use cellular phone.
With this, verbal exchange has come to be less complicated in the rural markets, however a large query nonetheless exists, and do rural humans believe the mass media marketing and marketing? The solution is, it's far nonetheless now no longer conducive for the entrepreneurs who're inclined to speak with the agricultural clients and who need to attain the agricultural clients via their marketing and marketing campaigns on TV, radio or net.
Q15) What is non-conventional media?
A15) The villages and small cities of India, which have been as soon as taken into consideration inconsequential from the advertising factor of view, at the moment, are getting the eye of the entrepreneurs and rural markets are proving to be essential for the increase of maximum of the FMCG (Fast Moving Consumer Goods) organizations. Rural India money owed for extra than 30 - 60 in line with cent of the full income of client items like biscuits, toothpastes, shampoos, washing machines and so forth. Because of saturation in the city markets, advertising approach have to shift its interest toward the agricultural markets, which can be now no longer visible because the dumping grounds of the client merchandise famous in city regions. Rural clients have a wonderful desire in their very own. But because of perceptible modifications visible in the development of infrastructure, growing degree of profits, explosion of media and huge insurance of TV, radio and so forth., the space among the city and rural divide is progressively narrowing. The rural client is extra discrete, extra cash-aware and extra utilitarian in outlook. The advertising verbal exchange MARCOM approach for rural regions have to be extraordinary from the city regions due to inaccessibility of strength and electronics media, skinny populace density and broadly scattered villages, negative publicity, low disposable profits and availability of counterfeit merchandise.
Q16) What is Personalized media?
A16) Social media refers back to the web-primarily based totally tolls and media that permit customers to in my view and informally interact, create percentage, retrieve and trade data and thoughts in digital groups and networks. Social media consists of social networking sites, blogs, micro-blogs, on-line forums, dialogue forums and corporations, Wikipedia, socially included textual content messaging. The youngsters aren't matured sufficient to distinguish among fable and actual life. Apart from this, over usage of social media decreases the quantity of time to be had for pursuing different sports which can be beneficial for his or her bodily and intellectual fitness and spending time with their own circle of relatives’ members. The revolution of verbal exchange in India during the last decade is astonishing.
Technology has been developing at a speedy charge to house the wishes and dreams of humans in acquiring a less complicated and extra green lifestyle. One of the best technologies to hit this twenty first century is the cell phone. At gift, India is shifting from an agrarian primarily based totally financial system to carrier-primarily based totally financial system. Consequently, the youngsters of India has grew to become tech savvy with the brand new digital media channels, e.g., radio, satellites, TV channels, cellular telephones, laptops and computer systems with cellular net. This has proved to be an effective pressure in the social transformation of city in addition to rural youngsters of India. The gift digital technology has each its professionals and cons. The digital technology now no longer most effective furnished higher, quicker and stepped forward running capacity of younger humans however additionally an emergence and new shape of disease in Indian youngsters. Since the closing decade, the over usage of social media is an ongoing pastime that's growing at an alarming charge and main to dependency shape a few of the Indian youngsters that's a severe concern. Problems springing up from over usage of social media were documented global consisting of in India, in which using social media has extended noticeably.
Q17) What is Evolution of rural distribution systems?
A17) Evolution of rural distribution systems are as follows:
1. Historically, the rural distribution system has included retailers, wholesalers, mobile traders, vans and weekly haats.
2. In the feeder markets, retailers act as wholesalers and vice versa to sell to small retailers who come from surrounding villages.
3.Some town retailers send their salesmen to villages to book orders and supply goods to these small retailers.
Q18) Write short note on wholesaling.
A18) Wholesaling involves the following:
1. 50% of rural consumption is still routed through wholesalers, because they are located in nearby feeder markets, which are frequented by village retailers to replenish stocks.
2. Indian wholesaler is a trader, rather than a distributor and as a result tends to support a brand during periods of boom and withdraws support during periods of slump.
3. Rural markets were neglected by most companies due to the low density of retail outlets and the small off-take per retailer. Wholesalers based in feeder towns took advantage of this situation as village retailers found it convenient to buy from these places. This resulted in the hold of the market by these wholesalers, who often indulged in trade malpractices in the channel.
Q19 Write short note on Rural retail system.
A19) Rural retail system functions as follows:
- Rural India accounts for 65% of retail outlets in the country. The logistics of feeding the 35 lakh retail outlets spread over 6 lakh villages is a tough task.
- The high distribution costs due to geographical spread and low volumes per outlet act as a barrier to the entry of products in rural markets.
- The average monthly sale per village shop is less than Rs. 5000/-, which restricts the variety and range of the products stocked.
- As a significant portion of the sale is on credit, it puts most village shops in a self-limiting sales cycle.
- Despite the same product being available in the village shop, 58% of villagers prefer to buy these from a haat because of better price, quality and variety.
Q19) Write short note on VANS.
A20) The uses of vans are as follows:
1. Mobile vans have an important place in the distribution and promotion of products in villages.
2. In this system, the salesman loads the van with stocks from the nearest stockiest or company stock point and works the surrounding markets.
3. Once he has covered all such markets, he moves to the next stock point and starts covering the villages surrounding that stock point.
4. Eveready batteries and torches are market leaders. It established an extensive distribution network that includes 1000 vans, 4000+ distributors and 44 warehouses. These vans reach 6 lakh retail outlets directly, each van making 50 to 60 calls per day. The company ensures that the van revisits a retailer every 15 days. The stock for these vans is supplied by the small-town distributors.
Unit 5
Distribution Strategy
Q1) Explain the emergence of Rural market in India.
A1) The emergence of rural markets as extraordinarily untapped capacity emphasizes the want to discover them. Marketers over the last few decades, with progressive methods, have tried to apprehend and faucet rural markets. Some in their efforts paid off and plenty of market nonetheless an enigma. Rural advertising and marketing are an evolving idea, and as part of any economic system, has untapped capacity; entrepreneurs have found out the possibility recently. Improvement in infrastructure and attain, promise a shiny destiny for the ones proceeding to head rural. Rural customers are eager on branded items nowadays, so the marketplace size for services and products appears to have burgeoned. Indian marketplace for the customer merchandise is made of wonderful parts, one is city and different is rural marketplace. It has been a rely of exceptional enquiry each for the advertising and marketing lecturers and practitioners whether or not there may be a want for growing separate approach for rural markets. By and big, Indian marketplace state of affairs suggests that entrepreneurs have hardly ever pop out with separate advertising and marketing approach for rural markets overtly, however, entrepreneurs did expand separate advertising and marketing blend for rural markets covertly. Whenever it's miles rural advertising and marketing for his or her manufacturers, marketer tended to rate their merchandise low, retaining the goods nice at a median level, slicing charges at the more frills introduced to the product.
Q2) Explain the coverage status in rural market.
A2) The attention of MNC’s and marketers in India was the urban consumer. But not much effort was being made to reach the rural markets. However, this is now changing. The increase in smartphone users and affordable data plans are leading to the growth of online users in the country’s rural regions. It is estimated that by 2023, there will be over 650 million internet users in the country, and this is gradually catching the attention of marketers to tap fresh opportunities emerging in Indian markets. They are not just focusing on the rural markets but also the Next Billion Users (NBU), a segment of users getting online for the first time.
At present, the rural FMCG market accounts for 30% to 50% of the total revenue of FMCG majors. Moreover, the sector in India is likely to reach a valuation of Rs 14 lakh crore per annum by 2025. Simultaneously, the rural market is expected to have a share of 38%, thereby opening new vistas for Indian marketers. Thus, with approximately 69% of the population still residing in rural areas, this is a thriving industry, not just today but for the future in terms of rural marketing.
Q3) What are the channels of distribution?
A3) Marketing channel is the direction taken with the aid of using the identify to the product because its movements from the manufacturer to the last client. Every advertising channel begins off evolved with the manufacturer and ends with the client. The channel member includes wholesalers and shops who're middlemen in distribution and that they carry out all advertising functions. There are many channels used for the distribution of products in rural regions as follows.
1. Manufacturer-Consumer (Direct Sale): In this example, the shares are immediately provided to the last client keeping off middlemen and their commission. This advantages the client and the seller.
2. Manufacturer-Retailer-Consumer: Here the shares are bought to the clients via a community of outlets.
3. Manufacturer-Wholesaler-Retailer-client: The producer appoints the wholesaler in key rural markets and those wholesalers cater to the wishes of outlets in villages. This is famous channel utilized by the manufacturers.
4. Manufacturer-client-Depot / C & F Agent-Retailer-Consumer: In this example, the producer movements the shares to organization depot operated with the aid of using a C and F agent and from those depots; shares are provided immediately to the shops.
5. Manufacturer Company depot / C and F Agent Wholesaler-Retailer-Consumer: This is a prolonged advertising channel and the producer opens his very own depots or appoints C and F sellers in nation capital or in key towns in every nation. Goods are provided to wholesalers running at district headquarter or in industrial centres. Wholesalers in flip carrier the community of outlets.
Q4) What are Haats?
A4) Haats are the periodic markets and the oldest advertising channel in India. These markets offer humans a possibility now no longer most effective to buy client items, however additionally to promote surplus agricultural and allied merchandise. They offer a first-touch factor for villagers with the marketplace, a way for dispensing nearby merchandise and changing rural surplus, a possibility for getting every day requirements in addition to farm resources and system and an area for social, political and cultural touch. Each haat caters to the want of not less than 10 to a most of fifty villages, drawing round 4000 men and women who come to shop for and promote a number every day requirements and offerings.
Q5) What are Mandi?
A5) Mandi Trades now no longer most effective facilitates farmers promote their produce immediately to the client and gets rid of middlemen and nearby buyers, however additionally affords technological information and answers to farmers to reinforce their harvest. It’s a truthful version offers farmers clean get entry to markets, creates employment in the village (and not directly elsewhere), produce is auctioned thereby giving the farmer the first-rate feasible rate, platform in which manufacturers and shoppers meet. But considering that it's far operated with the aid of using humans, it has its very own flaws. The primary problems over which it's far criticized the maximum are inefficiency of its deliver chain with shoppers. The wastage in the mandi deliver chain may be very excessive due to the range of intermediaries in the chain, in particular for veggies-almost 40%. The perish ability of veggies is already very excessive and that coupled with the inefficient dealing with will increase the wastage percent drastically. And the alternative aspect approximately those fashions is that, maximum of them are marketplace-driven. The client offers a listing of commodities that his clients opt to the farmer to grow. It’s like English parliamentarians making legal guidelines to manage India sitting in London. But then, there may be every other aspect going on simultaneously. Parallel to this deliver chain revolution, there may be every other evolution going on in collectivizing farmers via Farmer Producer Organizations and Farmer Clubs. These farmer organizations boom the bargaining electricity of farmers, thereby decreasing the possibilities of them getting exploited with the aid of using the shoppers. Anyways, opposition in the marketplace usually brings out the first-rate from the item. If this lengthy distance relation works out it’s true for the farmers, if it doesn’t, each the farmers analyse their lesson on guidelines of interdependence. Just like how the spiritually conceited orient wanted the materialistic occident’s imperial intervention to remind it of the significance of liberal values, and the consumerist occident wanted a publicity to contended orient to uplift it from non-secular depravity, it wants an out of doors intervention to recognize the significance of equity and innovation.
Q6) What is Public Distribution System (PDS)?
A6) PDS is an item of distribution for vital commodities to a big range of humans via a community of FPS (Fair Price stores, frequently mentioned as ‘ration stores’). The commodities are wheat, rice, sugar, fit for human consumption oil and kerosene. PDS has been advanced to attain the city in addition to the agricultural populace with the intention to guard clients from the fluctuating and escalating rate syndrome. It has emerged as a primary tool of the Government’s monetary coverage aimed toward making sure availability of meals grains to the general public at less costly expenses in addition to for boosting meals protection for the negative.
Q7) What is Cooperative society?
A7) While people having common monetary, social, and cultural pastimes voluntarily come collectively to shape an association, it will become the status quo of a co-operative society. The important cause of co-operative societies is to serve the wishes of underprivileged and rural sections of our community. Co-operative society in rural regions follows the precept of mutual assist and self-assist to achieve the goal of rural improvement. It is sort of a non-earnings business enterprise in which each member joins a co-operative society to offer guide in place of incomes earnings. A vital position of co-operative society’s contribution lies in the development of villages. The co-operative society facilitates in improving the best of fertilizers and allows higher centres for product advertising, consisting of garage, processing, transport, and availing present day cultivation strategies. There are more than one co-operative society furiously running on extraordinary factors to accumulate a sustainable financial system in rural regions. The co-operative societies impart numerous offerings to poverty-troubled sections, consisting of get entry to superior technology, right education in herbal useful resource management, and raise agricultural productiveness with the aid of using growing the delivery of products.
Q8) What are the challenges in rural communication?
A8) The challenges in rural communication are-
Low Literacy Levels: Rural regions are afflicted by low literacy. Customs and traditions rule, which makes adoption of latest merchandise and practices tough. There is likewise a confined penetration of print media in rural markets. Companies, therefore, face problems in growing their verbal exchange blend.
Media Reach and Exposure: Though media attain is enhancing over the years, it's far nonetheless negative in lots of villages. In many media-darkish villages, there may be confined get entry to television, radio and print, and consequently humans have confined publicity. Suitable media cars simply do now no longer exist.
Diverse Audiences: Villages in India display various cultures, languages, numerous customs and traditions and lifestyles. This makes one-length-fits-all approach irrelevant. Companies, used to city-orientated mass campaigns, locate it tough to tailor-make campaigns for each region.
A lack of Information: There is a scarcity of data in rural regions. Lack of true nearby content material and dependable data companies upload to the shortage of applicable data that villagers can use.
Scattered Audiences: Mass media reveals it tough to penetrate rural regions due to the fact audiences are scattered over big distances.
Lack of Well-Developed Infrastructure: Internet penetration is confined due to loss of infrastructure. This is converting as there may be growing use of cellular telephones in rural markets. Any rural communications approach will paintings most effective if the indexed troubles are addressed. Developing powerful verbal exchange.
Q9) What is developing effective communication?
A9) This is a primary task in rural advertising and maximum of the instances business enterprise in to expert businesses to reply this query. The rural client has to join and relate to the message. Broadly, under are the heads to be looked after at the same time as crafting a rural message.
Languages: The message has to be effortlessly understood with the aid of using the agricultural client. It has to be easy and use suitable key phrases for fast join. Message has to mirror subculture and non-secular sentiments of the target market. E.g., Dabur allotted non secular calendars in rural markets.
Pictorial Presentation: Considering the literacy tiers of rural markets, pictorial illustration of message turns into a crucial a part of verbal exchange.
Message Form: The message has to be local to the location and feature software for the client.
Source: Many instances the supply from in which the message is coming from provides to the credibility in the rural marketplace. The message supply may be -
- Likeable
- Trustworthy
- Expert
Q10) How can you determine communication objectives?
A10) Intended dreams of a marketing and marketing or promotional program. Possible communications goals consist of (1) developing attention, (2) presenting knowledge, (3) projecting a photograph, (4) shaping attitudes, (5) stimulating a need or desire (6) effecting a sale.
Increase Awareness: Increased logo attention isn't most effective one of the maximum common advertising verbal exchange goals; it's also normally the primary for a brand-new organization. When you to start with input the marketplace, you need to allow humans recognize your organization and services or products exist. This would possibly consist of broadcast classified ads or print advertisements that depict the photograph of your organization and consistent repetition of your logo name, slogans and jingles. The complete goal is to come to be acknowledged and memorable. Established organizations frequently use a intently-associated purpose of constructing or preserving pinnacle-of-thoughts attention, this means that clients consider you first while thinking about your product category.
Change Attitudes: Changing organization or logo perceptions is every other common verbal exchange goal. Sometimes, misconceptions expand in the marketplace approximately your organization, services or products. Advertising is a manner to deal with them immediately. In different instances, terrible exposure effects due to the fact your organization is concerned in a commercial enterprise scandal or unsettling sports. BP Invested hundreds of thousands of bucks in marketing and marketing to provide an explanation for the organization’s easy up efforts to the general public following its notorious Gulf of Mexico oil spill in mid-2010. Local corporations generally do not have that sort of price range however nearby radio or print advertisements can do the trick.
Influence Purchase Intent: A key verbal exchange goal is to inspire clients to shop for. This is generally performed via persuasive marketing and marketing, which includes emphasis of your advanced advantages to the user, commonly relative to competitors. It is vital to ring a bell with the underlying want or need that triggers a patron to behave. Sports drink classified ads displaying athletes competing, getting warm and sweaty after which taking a drink later on is a common technique to power buy intent. The advertisements generally consist of advantages of the drink associated with flavour or nutrients.
Stimulate Trial Purchase: Two separate however intently associated verbal exchange goals are to stimulate trial use and power repeat purchases. Free trials or product samples are common strategies to influence clients to attempt your product for the primary time. The purpose is to eliminate the chance and get the patron to revel in your logo. Once you get them on the primary buy, you need to discern out a way to convert that right into a follow-up buy. Discounts on the following buy or frequency packages are approaches to show one-time customers into repeat shoppers and, ultimately, unswerving clients.
Drive Brand Switching: Another goal intently tied to stimulating trial use is riding logo switching. This is a particular goal of having clients who purchase competing merchandise to exchange on your logo. Tide detergent is generally pitted against "different main manufacturers" in comparative advertisements meant to inspire logo switching. The gain with this purpose is that clients already purchase inside your product category. This way want is hooked up. You simply want to influence them that your services or products is advanced and result in them to attempt it out.
Q11) What is Designing the message?
A11) In advertising, the time period “messaging” refers to how a business enterprise talks approximately itself and the price it affords. Related to positioning, messaging is a permitted set of key factors or messages a business enterprise makes use of to speak approximately something with a goal target market. Messaging interprets a positioning declaration into a fixed of convincing “key message” statements. Marketers use those statements to expand substances for advertising communications consisting of advert slogans, marketing and marketing copy, social media posts, press releases, presentation scripts, and so forth. Messaging files are a blueprint for what all of the different substances–and humans–have to speak.
- Express the principal concept you need humans to recognize and don't forget approximately your offering
- Resonate with the target market you're targeting, such that they pay interest and sense what you're pronouncing matters
- Articulate truly and concisely what you want to speak approximately: e.g., what you stand for, why you're extraordinary, what price you provide, what troubles you solve, and so forth.
The message content material, in addition to the voice, tone, and fashion of the message, can also additionally range broadly, relying at the business enterprise’s identity and what it desires to accomplish with the verbal exchange. Those entire factors thing into the important thing messages and the advent of advertising verbal exchange artifacts primarily based totally at the messaging.
Q12) How can you select the communication channels?
A12) How do you decide what verbal exchange channels are proper to your commercial enterprise? First and foremost, when you have now no longer finished the primary 4 steps of your Strategic Marketing Plan What’s the first-rate manner to your commercial enterprise to speak to its target market? With extraordinarily various marketing and marketing all round us the alternatives are endless. It may be a big task on the subject of choosing your verbal exchange channels. When you locate advertisers to apply, it is able to be tough to without a doubt recognize which one is the first-rate to your goal marketplace. With big numbers of attain and publicity, it is able to be tempting to select an advertiser that “makes sense” and has a aggressive rate. Properly choosing the verbal exchange channels your commercial enterprise makes use of to sell itself is an excessive price undertaking that wishes to be performed carefully.
What are verbal exchange channels? Communication channels the techniques a commercial enterprise makes use of to bring its message to the world. Examples of verbal exchange channels:
- Social Media Platforms
- Newspaper
- Face to Face
- Emails
- Lawn Signs
- Radio
- Newsletters
- Google Ads
- Google Ads
There are four steps to nicely choosing communication channels:
1. Select 2. Research 3. Rank 4. Evaluate Resources.
Select Potential Channels: The first step in the system is to pick out potential verbal exchange channels that sense like an amazing suit to your commercial enterprise. Select but many channels are “potentially” an amazing suit and write them down. Just recognize that you may have to investigate and charge every choice in later steps. Here is a listing of verbal exchange channels available that you could need to consider. This listing is most effective to provide you a few thoughts; there are numerous different channels available.
Research: Once you've got a listing of potential verbal exchange channels, it's time to do your homework. Start studying crucial data for every channel so you can role yourself to rank them. Get innovative with the way you study and write down your findings. Before your studies, set a purpose for unique data you would really like to obtain:
Target Market Reach – who the verbal exchange channel reaches.
- Demographic attains
- Psychographic attain
- Geographic attains
Monetary Cost – the quantity of cash it prices your business enterprise to apply that unique channel.
Time Cost – the quantity of time it takes your business enterprise to apply that unique channel.
Skill Level Required – the ability degree required to nicely make use of that channel.
Start your studies at the net. You could be capable of locate useful content material from commercial enterprise proprietors like yourself who've already long passed out and attempted those precise channels. With blogs, YouTube, and podcasts you could locate useful data, and in all likelihood even a listing of the first-rate verbal exchange channels to your kind of commercial enterprise. Always make certain your reality takes a look at recommendations on-line and search for quantitative information. Most verbal exchange channels run with the aid of using marketing and marketing businesses have performed the statistical assessment for you. Advertisers like Facebook or your nearby radio organization can have big quantities of quantitative data to your reference.
Ranking: Phase 3 is in which you rank your preferred verbal exchange channels. Ranking is crucial as it will permit you to decide in which your sources could be designated. Communication channels aren't made equally; a few will offer extra price on your commercial enterprise than others.
Target Market Focus: Each Communication Channel wishes to be quite cantered in your goal marketplace. There are various tiers of ways cantered positive channels may be. The extra centred it's far on your goal marketplace, the extra the ROI. You won’t waste money and time with individuals who don’t want what you’re promoting in case you locate channels which might be notably centred in your goal marketplace.
The simplest manner to rank this in on a scale of 1-10.
1 now no longer centred in your goal marketplace at all.
10 very centred in your goal marketplace.
Monetary Cost: The sum of money had to spend on verbal exchange channels is usually a concern; unfortunately, frequently instances that is the most effective degree commercial enterprise proprietors will consider. It’s apparent that the inexpensive alternatives are extra attractive; however, we have to make certain to take all measures under consideration to decide authentic ROI.
The first-rate manner to degree that is to assign a greenback quantity to a particular purpose or time frame ($100/month, $50/1k character attain, and so forth)
Time Cost: Oftentimes, time-value may be an underlying rate on your organization this is extra unfavourable than the floor prices. Make certain to do your homework and feature an amazing know-how of ways plenty time a positive verbal exchange channel can also additionally require.
The first-rate manner to rank is with time/time degree (hrs/week, hrs/month)
Skill degree required: Always do your studies into the quantity of ability required to nicely speak in every channel. Many bosses and proprietors are sluggish to recognize that there may be unfavourable results on their organization photograph in the event that they did now no longer own the sources professional sufficient to nicely speak of their verbal exchange channels.
The simplest manner is to rank on a scale of 1-10.
1 being complicated to apply – requiring plenty of ability and expertise.
10 being clean to apply – infrequently requiring any ability to apply well.
Evaluate Resources:
Once you've got ranked all of your verbal exchange channels, now's the time to assess your sources. Evaluating your sources is crucial to do earlier than you construct your income funnel. It lets in you to take a practical take a look at what's viable in the brief time period. Your commercial enterprise will shop money and time in the end in case you make certain you could enforce the approach you're developing.
Create a listing of the sources you have already got at your disposal. These sources can consist of:
- Employees
- Monetary price range
- Potential services or products to help
Q13) How can you create advertisements for rural audience?
A13) When you need to gain a grand fulfilment in the marketplace, it isn't feasible to disregard the agricultural marketplace. It occupies a large chew of the pie, and there was an extremely good boom in the marketplace potential because of top notch monetary increase in India. Marketing professionals say that rural advertising is an extraordinary ball recreation that forces advertising professionals to unlearn the traditional concepts. All factors of product advertising ought to be made over and refurbished while you attention villages. Outdoor advertising, one of the pivotal factors of the advertising plan, isn’t an exception to it. In reality, it's far pretty difficult to layout Outdoor marketing and marketing in Indian village in comparison to towns and cities.
Ways of attracting rural clients with the aid of using out of doors marketing and marketing as referred to earlier, rural advertising is a specialized niche; advertising specialists are required to brainstorm to discover progressive and innovative thoughts. Since it wishes large cash to sell the logo in small villages, it's far moreover crucial to hold the prices below manipulate. Here are some powerful thoughts of attracting a big range of humans with the aid of using spending less.
Street shows: Have you ever visible avenue suggests in small cities and villages? Yes, they have been pretty famous in the vintage days even in large towns. However, they've remained restricted to the villages nowadays. There were examples of the innovative and powerful use of avenue suggests for advertising sports.
Wall painting: You have to have located wall artwork in the rural regions selling manufacturers and merchandise. It is pretty famous due to the fact there are advantages of it. Firstly, the wall receives painted with none value which is a great aspect from the owner’s factor of view. From advertising organization’s perspective, it doesn’t require to spend one by one for rent. Thus, it's far a win-win situation.
Unconventional advertising strategies consisting of Audio Wala Bus Stand: With the powerful and impactful use of creativity and innovation, clever advertising organizations were attention a position to tug the eye of rural humans. Vritti media is an organization that made records with the aid of using the usage of bus stands for product promoting and logo constructing. It used the audio assertion item of bus stands in a few decided on states in which bus carrier is top notch. Since the footfall is pretty excessive in those states, the promotional sports have been pretty powerful and beneficial. With sensible product choice and attractive thoughts, Vritti has been a hit in making the first-rate use of it so far.
Q14) What is Mass Media?
A14) Mass media, the fourth pillar of democracy plays a pivotal position in up keeping the socio-political system of a rustic sound and healthy. Due to the development of data and communication technology (ICT), the position of mass media has been accelerated to a better order. Man has conquered time and area because of this contemporary technology. The print and digital media remain at the helm of affairs in each corner and nook of the world. Media touches the remotest village and unfolds the irony at the back of the scene. Mass media really connects the complete universe with a noble mission to percentage the sorrows and sufferings, pains and strains, fulfilment testimonies of the society. It always, if nicely controlled, takes an essential element in political affairs. As we recognize the improvement of a country relies upon up on the political will electricity, it fires now no longer most effective the spirit of legislature however additionally the other pillars of democracy. Analysis of the affairs of a rustic is notably vital for smooth progress.
Mass media carry out the position of a dynamic watchdog and erects its arms towards any backlog in an item. It diagnoses the system and opens the pitfalls and attempts to rectify it. With the developing penetration of mass media channels like TV and radio at the side of net in rural India, the vintage hooked up time period ‘Media Dark’ is getting fading away. According to a current survey carried out with the aid of using National Bank for Agriculture and Rural Development (NABARD), fifty-seven percentage families very own TV and 87 percentage use cellular phone.
With this, verbal exchange has come to be less complicated in the rural markets, however a large query nonetheless exists, and do rural humans believe the mass media marketing and marketing? The solution is, it's far nonetheless now no longer conducive for the entrepreneurs who're inclined to speak with the agricultural clients and who need to attain the agricultural clients via their marketing and marketing campaigns on TV, radio or net.
Q15) What is non-conventional media?
A15) The villages and small cities of India, which have been as soon as taken into consideration inconsequential from the advertising factor of view, at the moment, are getting the eye of the entrepreneurs and rural markets are proving to be essential for the increase of maximum of the FMCG (Fast Moving Consumer Goods) organizations. Rural India money owed for extra than 30 - 60 in line with cent of the full income of client items like biscuits, toothpastes, shampoos, washing machines and so forth. Because of saturation in the city markets, advertising approach have to shift its interest toward the agricultural markets, which can be now no longer visible because the dumping grounds of the client merchandise famous in city regions. Rural clients have a wonderful desire in their very own. But because of perceptible modifications visible in the development of infrastructure, growing degree of profits, explosion of media and huge insurance of TV, radio and so forth., the space among the city and rural divide is progressively narrowing. The rural client is extra discrete, extra cash-aware and extra utilitarian in outlook. The advertising verbal exchange MARCOM approach for rural regions have to be extraordinary from the city regions due to inaccessibility of strength and electronics media, skinny populace density and broadly scattered villages, negative publicity, low disposable profits and availability of counterfeit merchandise.
Q16) What is Personalized media?
A16) Social media refers back to the web-primarily based totally tolls and media that permit customers to in my view and informally interact, create percentage, retrieve and trade data and thoughts in digital groups and networks. Social media consists of social networking sites, blogs, micro-blogs, on-line forums, dialogue forums and corporations, Wikipedia, socially included textual content messaging. The youngsters aren't matured sufficient to distinguish among fable and actual life. Apart from this, over usage of social media decreases the quantity of time to be had for pursuing different sports which can be beneficial for his or her bodily and intellectual fitness and spending time with their own circle of relatives’ members. The revolution of verbal exchange in India during the last decade is astonishing.
Technology has been developing at a speedy charge to house the wishes and dreams of humans in acquiring a less complicated and extra green lifestyle. One of the best technologies to hit this twenty first century is the cell phone. At gift, India is shifting from an agrarian primarily based totally financial system to carrier-primarily based totally financial system. Consequently, the youngsters of India has grew to become tech savvy with the brand new digital media channels, e.g., radio, satellites, TV channels, cellular telephones, laptops and computer systems with cellular net. This has proved to be an effective pressure in the social transformation of city in addition to rural youngsters of India. The gift digital technology has each its professionals and cons. The digital technology now no longer most effective furnished higher, quicker and stepped forward running capacity of younger humans however additionally an emergence and new shape of disease in Indian youngsters. Since the closing decade, the over usage of social media is an ongoing pastime that's growing at an alarming charge and main to dependency shape a few of the Indian youngsters that's a severe concern. Problems springing up from over usage of social media were documented global consisting of in India, in which using social media has extended noticeably.
Q17) What is Evolution of rural distribution systems?
A17) Evolution of rural distribution systems are as follows:
1. Historically, the rural distribution system has included retailers, wholesalers, mobile traders, vans and weekly haats.
2. In the feeder markets, retailers act as wholesalers and vice versa to sell to small retailers who come from surrounding villages.
3.Some town retailers send their salesmen to villages to book orders and supply goods to these small retailers.
Q18) Write short note on wholesaling.
A18) Wholesaling involves the following:
1. 50% of rural consumption is still routed through wholesalers, because they are located in nearby feeder markets, which are frequented by village retailers to replenish stocks.
2. Indian wholesaler is a trader, rather than a distributor and as a result tends to support a brand during periods of boom and withdraws support during periods of slump.
3. Rural markets were neglected by most companies due to the low density of retail outlets and the small off-take per retailer. Wholesalers based in feeder towns took advantage of this situation as village retailers found it convenient to buy from these places. This resulted in the hold of the market by these wholesalers, who often indulged in trade malpractices in the channel.
Q19 Write short note on Rural retail system.
A19) Rural retail system functions as follows:
- Rural India accounts for 65% of retail outlets in the country. The logistics of feeding the 35 lakh retail outlets spread over 6 lakh villages is a tough task.
- The high distribution costs due to geographical spread and low volumes per outlet act as a barrier to the entry of products in rural markets.
- The average monthly sale per village shop is less than Rs. 5000/-, which restricts the variety and range of the products stocked.
- As a significant portion of the sale is on credit, it puts most village shops in a self-limiting sales cycle.
- Despite the same product being available in the village shop, 58% of villagers prefer to buy these from a haat because of better price, quality and variety.
Q19) Write short note on VANS.
A20) The uses of vans are as follows:
1. Mobile vans have an important place in the distribution and promotion of products in villages.
2. In this system, the salesman loads the van with stocks from the nearest stockiest or company stock point and works the surrounding markets.
3. Once he has covered all such markets, he moves to the next stock point and starts covering the villages surrounding that stock point.
4. Eveready batteries and torches are market leaders. It established an extensive distribution network that includes 1000 vans, 4000+ distributors and 44 warehouses. These vans reach 6 lakh retail outlets directly, each van making 50 to 60 calls per day. The company ensures that the van revisits a retailer every 15 days. The stock for these vans is supplied by the small-town distributors.
Unit 5
Distribution Strategy
Q1) Explain the emergence of Rural market in India.
A1) The emergence of rural markets as extraordinarily untapped capacity emphasizes the want to discover them. Marketers over the last few decades, with progressive methods, have tried to apprehend and faucet rural markets. Some in their efforts paid off and plenty of market nonetheless an enigma. Rural advertising and marketing are an evolving idea, and as part of any economic system, has untapped capacity; entrepreneurs have found out the possibility recently. Improvement in infrastructure and attain, promise a shiny destiny for the ones proceeding to head rural. Rural customers are eager on branded items nowadays, so the marketplace size for services and products appears to have burgeoned. Indian marketplace for the customer merchandise is made of wonderful parts, one is city and different is rural marketplace. It has been a rely of exceptional enquiry each for the advertising and marketing lecturers and practitioners whether or not there may be a want for growing separate approach for rural markets. By and big, Indian marketplace state of affairs suggests that entrepreneurs have hardly ever pop out with separate advertising and marketing approach for rural markets overtly, however, entrepreneurs did expand separate advertising and marketing blend for rural markets covertly. Whenever it's miles rural advertising and marketing for his or her manufacturers, marketer tended to rate their merchandise low, retaining the goods nice at a median level, slicing charges at the more frills introduced to the product.
Q2) Explain the coverage status in rural market.
A2) The attention of MNC’s and marketers in India was the urban consumer. But not much effort was being made to reach the rural markets. However, this is now changing. The increase in smartphone users and affordable data plans are leading to the growth of online users in the country’s rural regions. It is estimated that by 2023, there will be over 650 million internet users in the country, and this is gradually catching the attention of marketers to tap fresh opportunities emerging in Indian markets. They are not just focusing on the rural markets but also the Next Billion Users (NBU), a segment of users getting online for the first time.
At present, the rural FMCG market accounts for 30% to 50% of the total revenue of FMCG majors. Moreover, the sector in India is likely to reach a valuation of Rs 14 lakh crore per annum by 2025. Simultaneously, the rural market is expected to have a share of 38%, thereby opening new vistas for Indian marketers. Thus, with approximately 69% of the population still residing in rural areas, this is a thriving industry, not just today but for the future in terms of rural marketing.
Q3) What are the channels of distribution?
A3) Marketing channel is the direction taken with the aid of using the identify to the product because its movements from the manufacturer to the last client. Every advertising channel begins off evolved with the manufacturer and ends with the client. The channel member includes wholesalers and shops who're middlemen in distribution and that they carry out all advertising functions. There are many channels used for the distribution of products in rural regions as follows.
1. Manufacturer-Consumer (Direct Sale): In this example, the shares are immediately provided to the last client keeping off middlemen and their commission. This advantages the client and the seller.
2. Manufacturer-Retailer-Consumer: Here the shares are bought to the clients via a community of outlets.
3. Manufacturer-Wholesaler-Retailer-client: The producer appoints the wholesaler in key rural markets and those wholesalers cater to the wishes of outlets in villages. This is famous channel utilized by the manufacturers.
4. Manufacturer-client-Depot / C & F Agent-Retailer-Consumer: In this example, the producer movements the shares to organization depot operated with the aid of using a C and F agent and from those depots; shares are provided immediately to the shops.
5. Manufacturer Company depot / C and F Agent Wholesaler-Retailer-Consumer: This is a prolonged advertising channel and the producer opens his very own depots or appoints C and F sellers in nation capital or in key towns in every nation. Goods are provided to wholesalers running at district headquarter or in industrial centres. Wholesalers in flip carrier the community of outlets.
Q4) What are Haats?
A4) Haats are the periodic markets and the oldest advertising channel in India. These markets offer humans a possibility now no longer most effective to buy client items, however additionally to promote surplus agricultural and allied merchandise. They offer a first-touch factor for villagers with the marketplace, a way for dispensing nearby merchandise and changing rural surplus, a possibility for getting every day requirements in addition to farm resources and system and an area for social, political and cultural touch. Each haat caters to the want of not less than 10 to a most of fifty villages, drawing round 4000 men and women who come to shop for and promote a number every day requirements and offerings.
Q5) What are Mandi?
A5) Mandi Trades now no longer most effective facilitates farmers promote their produce immediately to the client and gets rid of middlemen and nearby buyers, however additionally affords technological information and answers to farmers to reinforce their harvest. It’s a truthful version offers farmers clean get entry to markets, creates employment in the village (and not directly elsewhere), produce is auctioned thereby giving the farmer the first-rate feasible rate, platform in which manufacturers and shoppers meet. But considering that it's far operated with the aid of using humans, it has its very own flaws. The primary problems over which it's far criticized the maximum are inefficiency of its deliver chain with shoppers. The wastage in the mandi deliver chain may be very excessive due to the range of intermediaries in the chain, in particular for veggies-almost 40%. The perish ability of veggies is already very excessive and that coupled with the inefficient dealing with will increase the wastage percent drastically. And the alternative aspect approximately those fashions is that, maximum of them are marketplace-driven. The client offers a listing of commodities that his clients opt to the farmer to grow. It’s like English parliamentarians making legal guidelines to manage India sitting in London. But then, there may be every other aspect going on simultaneously. Parallel to this deliver chain revolution, there may be every other evolution going on in collectivizing farmers via Farmer Producer Organizations and Farmer Clubs. These farmer organizations boom the bargaining electricity of farmers, thereby decreasing the possibilities of them getting exploited with the aid of using the shoppers. Anyways, opposition in the marketplace usually brings out the first-rate from the item. If this lengthy distance relation works out it’s true for the farmers, if it doesn’t, each the farmers analyse their lesson on guidelines of interdependence. Just like how the spiritually conceited orient wanted the materialistic occident’s imperial intervention to remind it of the significance of liberal values, and the consumerist occident wanted a publicity to contended orient to uplift it from non-secular depravity, it wants an out of doors intervention to recognize the significance of equity and innovation.
Q6) What is Public Distribution System (PDS)?
A6) PDS is an item of distribution for vital commodities to a big range of humans via a community of FPS (Fair Price stores, frequently mentioned as ‘ration stores’). The commodities are wheat, rice, sugar, fit for human consumption oil and kerosene. PDS has been advanced to attain the city in addition to the agricultural populace with the intention to guard clients from the fluctuating and escalating rate syndrome. It has emerged as a primary tool of the Government’s monetary coverage aimed toward making sure availability of meals grains to the general public at less costly expenses in addition to for boosting meals protection for the negative.
Q7) What is Cooperative society?
A7) While people having common monetary, social, and cultural pastimes voluntarily come collectively to shape an association, it will become the status quo of a co-operative society. The important cause of co-operative societies is to serve the wishes of underprivileged and rural sections of our community. Co-operative society in rural regions follows the precept of mutual assist and self-assist to achieve the goal of rural improvement. It is sort of a non-earnings business enterprise in which each member joins a co-operative society to offer guide in place of incomes earnings. A vital position of co-operative society’s contribution lies in the development of villages. The co-operative society facilitates in improving the best of fertilizers and allows higher centres for product advertising, consisting of garage, processing, transport, and availing present day cultivation strategies. There are more than one co-operative society furiously running on extraordinary factors to accumulate a sustainable financial system in rural regions. The co-operative societies impart numerous offerings to poverty-troubled sections, consisting of get entry to superior technology, right education in herbal useful resource management, and raise agricultural productiveness with the aid of using growing the delivery of products.
Q8) What are the challenges in rural communication?
A8) The challenges in rural communication are-
Low Literacy Levels: Rural regions are afflicted by low literacy. Customs and traditions rule, which makes adoption of latest merchandise and practices tough. There is likewise a confined penetration of print media in rural markets. Companies, therefore, face problems in growing their verbal exchange blend.
Media Reach and Exposure: Though media attain is enhancing over the years, it's far nonetheless negative in lots of villages. In many media-darkish villages, there may be confined get entry to television, radio and print, and consequently humans have confined publicity. Suitable media cars simply do now no longer exist.
Diverse Audiences: Villages in India display various cultures, languages, numerous customs and traditions and lifestyles. This makes one-length-fits-all approach irrelevant. Companies, used to city-orientated mass campaigns, locate it tough to tailor-make campaigns for each region.
A lack of Information: There is a scarcity of data in rural regions. Lack of true nearby content material and dependable data companies upload to the shortage of applicable data that villagers can use.
Scattered Audiences: Mass media reveals it tough to penetrate rural regions due to the fact audiences are scattered over big distances.
Lack of Well-Developed Infrastructure: Internet penetration is confined due to loss of infrastructure. This is converting as there may be growing use of cellular telephones in rural markets. Any rural communications approach will paintings most effective if the indexed troubles are addressed. Developing powerful verbal exchange.
Q9) What is developing effective communication?
A9) This is a primary task in rural advertising and maximum of the instances business enterprise in to expert businesses to reply this query. The rural client has to join and relate to the message. Broadly, under are the heads to be looked after at the same time as crafting a rural message.
Languages: The message has to be effortlessly understood with the aid of using the agricultural client. It has to be easy and use suitable key phrases for fast join. Message has to mirror subculture and non-secular sentiments of the target market. E.g., Dabur allotted non secular calendars in rural markets.
Pictorial Presentation: Considering the literacy tiers of rural markets, pictorial illustration of message turns into a crucial a part of verbal exchange.
Message Form: The message has to be local to the location and feature software for the client.
Source: Many instances the supply from in which the message is coming from provides to the credibility in the rural marketplace. The message supply may be -
- Likeable
- Trustworthy
- Expert
Q10) How can you determine communication objectives?
A10) Intended dreams of a marketing and marketing or promotional program. Possible communications goals consist of (1) developing attention, (2) presenting knowledge, (3) projecting a photograph, (4) shaping attitudes, (5) stimulating a need or desire (6) effecting a sale.
Increase Awareness: Increased logo attention isn't most effective one of the maximum common advertising verbal exchange goals; it's also normally the primary for a brand-new organization. When you to start with input the marketplace, you need to allow humans recognize your organization and services or products exist. This would possibly consist of broadcast classified ads or print advertisements that depict the photograph of your organization and consistent repetition of your logo name, slogans and jingles. The complete goal is to come to be acknowledged and memorable. Established organizations frequently use a intently-associated purpose of constructing or preserving pinnacle-of-thoughts attention, this means that clients consider you first while thinking about your product category.
Change Attitudes: Changing organization or logo perceptions is every other common verbal exchange goal. Sometimes, misconceptions expand in the marketplace approximately your organization, services or products. Advertising is a manner to deal with them immediately. In different instances, terrible exposure effects due to the fact your organization is concerned in a commercial enterprise scandal or unsettling sports. BP Invested hundreds of thousands of bucks in marketing and marketing to provide an explanation for the organization’s easy up efforts to the general public following its notorious Gulf of Mexico oil spill in mid-2010. Local corporations generally do not have that sort of price range however nearby radio or print advertisements can do the trick.
Influence Purchase Intent: A key verbal exchange goal is to inspire clients to shop for. This is generally performed via persuasive marketing and marketing, which includes emphasis of your advanced advantages to the user, commonly relative to competitors. It is vital to ring a bell with the underlying want or need that triggers a patron to behave. Sports drink classified ads displaying athletes competing, getting warm and sweaty after which taking a drink later on is a common technique to power buy intent. The advertisements generally consist of advantages of the drink associated with flavour or nutrients.
Stimulate Trial Purchase: Two separate however intently associated verbal exchange goals are to stimulate trial use and power repeat purchases. Free trials or product samples are common strategies to influence clients to attempt your product for the primary time. The purpose is to eliminate the chance and get the patron to revel in your logo. Once you get them on the primary buy, you need to discern out a way to convert that right into a follow-up buy. Discounts on the following buy or frequency packages are approaches to show one-time customers into repeat shoppers and, ultimately, unswerving clients.
Drive Brand Switching: Another goal intently tied to stimulating trial use is riding logo switching. This is a particular goal of having clients who purchase competing merchandise to exchange on your logo. Tide detergent is generally pitted against "different main manufacturers" in comparative advertisements meant to inspire logo switching. The gain with this purpose is that clients already purchase inside your product category. This way want is hooked up. You simply want to influence them that your services or products is advanced and result in them to attempt it out.
Q11) What is Designing the message?
A11) In advertising, the time period “messaging” refers to how a business enterprise talks approximately itself and the price it affords. Related to positioning, messaging is a permitted set of key factors or messages a business enterprise makes use of to speak approximately something with a goal target market. Messaging interprets a positioning declaration into a fixed of convincing “key message” statements. Marketers use those statements to expand substances for advertising communications consisting of advert slogans, marketing and marketing copy, social media posts, press releases, presentation scripts, and so forth. Messaging files are a blueprint for what all of the different substances–and humans–have to speak.
- Express the principal concept you need humans to recognize and don't forget approximately your offering
- Resonate with the target market you're targeting, such that they pay interest and sense what you're pronouncing matters
- Articulate truly and concisely what you want to speak approximately: e.g., what you stand for, why you're extraordinary, what price you provide, what troubles you solve, and so forth.
The message content material, in addition to the voice, tone, and fashion of the message, can also additionally range broadly, relying at the business enterprise’s identity and what it desires to accomplish with the verbal exchange. Those entire factors thing into the important thing messages and the advent of advertising verbal exchange artifacts primarily based totally at the messaging.
Q12) How can you select the communication channels?
A12) How do you decide what verbal exchange channels are proper to your commercial enterprise? First and foremost, when you have now no longer finished the primary 4 steps of your Strategic Marketing Plan What’s the first-rate manner to your commercial enterprise to speak to its target market? With extraordinarily various marketing and marketing all round us the alternatives are endless. It may be a big task on the subject of choosing your verbal exchange channels. When you locate advertisers to apply, it is able to be tough to without a doubt recognize which one is the first-rate to your goal marketplace. With big numbers of attain and publicity, it is able to be tempting to select an advertiser that “makes sense” and has a aggressive rate. Properly choosing the verbal exchange channels your commercial enterprise makes use of to sell itself is an excessive price undertaking that wishes to be performed carefully.
What are verbal exchange channels? Communication channels the techniques a commercial enterprise makes use of to bring its message to the world. Examples of verbal exchange channels:
- Social Media Platforms
- Newspaper
- Face to Face
- Emails
- Lawn Signs
- Radio
- Newsletters
- Google Ads
- Google Ads
There are four steps to nicely choosing communication channels:
1. Select 2. Research 3. Rank 4. Evaluate Resources.
Select Potential Channels: The first step in the system is to pick out potential verbal exchange channels that sense like an amazing suit to your commercial enterprise. Select but many channels are “potentially” an amazing suit and write them down. Just recognize that you may have to investigate and charge every choice in later steps. Here is a listing of verbal exchange channels available that you could need to consider. This listing is most effective to provide you a few thoughts; there are numerous different channels available.
Research: Once you've got a listing of potential verbal exchange channels, it's time to do your homework. Start studying crucial data for every channel so you can role yourself to rank them. Get innovative with the way you study and write down your findings. Before your studies, set a purpose for unique data you would really like to obtain:
Target Market Reach – who the verbal exchange channel reaches.
- Demographic attains
- Psychographic attain
- Geographic attains
Monetary Cost – the quantity of cash it prices your business enterprise to apply that unique channel.
Time Cost – the quantity of time it takes your business enterprise to apply that unique channel.
Skill Level Required – the ability degree required to nicely make use of that channel.
Start your studies at the net. You could be capable of locate useful content material from commercial enterprise proprietors like yourself who've already long passed out and attempted those precise channels. With blogs, YouTube, and podcasts you could locate useful data, and in all likelihood even a listing of the first-rate verbal exchange channels to your kind of commercial enterprise. Always make certain your reality takes a look at recommendations on-line and search for quantitative information. Most verbal exchange channels run with the aid of using marketing and marketing businesses have performed the statistical assessment for you. Advertisers like Facebook or your nearby radio organization can have big quantities of quantitative data to your reference.
Ranking: Phase 3 is in which you rank your preferred verbal exchange channels. Ranking is crucial as it will permit you to decide in which your sources could be designated. Communication channels aren't made equally; a few will offer extra price on your commercial enterprise than others.
Target Market Focus: Each Communication Channel wishes to be quite cantered in your goal marketplace. There are various tiers of ways cantered positive channels may be. The extra centred it's far on your goal marketplace, the extra the ROI. You won’t waste money and time with individuals who don’t want what you’re promoting in case you locate channels which might be notably centred in your goal marketplace.
The simplest manner to rank this in on a scale of 1-10.
1 now no longer centred in your goal marketplace at all.
10 very centred in your goal marketplace.
Monetary Cost: The sum of money had to spend on verbal exchange channels is usually a concern; unfortunately, frequently instances that is the most effective degree commercial enterprise proprietors will consider. It’s apparent that the inexpensive alternatives are extra attractive; however, we have to make certain to take all measures under consideration to decide authentic ROI.
The first-rate manner to degree that is to assign a greenback quantity to a particular purpose or time frame ($100/month, $50/1k character attain, and so forth)
Time Cost: Oftentimes, time-value may be an underlying rate on your organization this is extra unfavourable than the floor prices. Make certain to do your homework and feature an amazing know-how of ways plenty time a positive verbal exchange channel can also additionally require.
The first-rate manner to rank is with time/time degree (hrs/week, hrs/month)
Skill degree required: Always do your studies into the quantity of ability required to nicely speak in every channel. Many bosses and proprietors are sluggish to recognize that there may be unfavourable results on their organization photograph in the event that they did now no longer own the sources professional sufficient to nicely speak of their verbal exchange channels.
The simplest manner is to rank on a scale of 1-10.
1 being complicated to apply – requiring plenty of ability and expertise.
10 being clean to apply – infrequently requiring any ability to apply well.
Evaluate Resources:
Once you've got ranked all of your verbal exchange channels, now's the time to assess your sources. Evaluating your sources is crucial to do earlier than you construct your income funnel. It lets in you to take a practical take a look at what's viable in the brief time period. Your commercial enterprise will shop money and time in the end in case you make certain you could enforce the approach you're developing.
Create a listing of the sources you have already got at your disposal. These sources can consist of:
- Employees
- Monetary price range
- Potential services or products to help
Q13) How can you create advertisements for rural audience?
A13) When you need to gain a grand fulfilment in the marketplace, it isn't feasible to disregard the agricultural marketplace. It occupies a large chew of the pie, and there was an extremely good boom in the marketplace potential because of top notch monetary increase in India. Marketing professionals say that rural advertising is an extraordinary ball recreation that forces advertising professionals to unlearn the traditional concepts. All factors of product advertising ought to be made over and refurbished while you attention villages. Outdoor advertising, one of the pivotal factors of the advertising plan, isn’t an exception to it. In reality, it's far pretty difficult to layout Outdoor marketing and marketing in Indian village in comparison to towns and cities.
Ways of attracting rural clients with the aid of using out of doors marketing and marketing as referred to earlier, rural advertising is a specialized niche; advertising specialists are required to brainstorm to discover progressive and innovative thoughts. Since it wishes large cash to sell the logo in small villages, it's far moreover crucial to hold the prices below manipulate. Here are some powerful thoughts of attracting a big range of humans with the aid of using spending less.
Street shows: Have you ever visible avenue suggests in small cities and villages? Yes, they have been pretty famous in the vintage days even in large towns. However, they've remained restricted to the villages nowadays. There were examples of the innovative and powerful use of avenue suggests for advertising sports.
Wall painting: You have to have located wall artwork in the rural regions selling manufacturers and merchandise. It is pretty famous due to the fact there are advantages of it. Firstly, the wall receives painted with none value which is a great aspect from the owner’s factor of view. From advertising organization’s perspective, it doesn’t require to spend one by one for rent. Thus, it's far a win-win situation.
Unconventional advertising strategies consisting of Audio Wala Bus Stand: With the powerful and impactful use of creativity and innovation, clever advertising organizations were attention a position to tug the eye of rural humans. Vritti media is an organization that made records with the aid of using the usage of bus stands for product promoting and logo constructing. It used the audio assertion item of bus stands in a few decided on states in which bus carrier is top notch. Since the footfall is pretty excessive in those states, the promotional sports have been pretty powerful and beneficial. With sensible product choice and attractive thoughts, Vritti has been a hit in making the first-rate use of it so far.
Q14) What is Mass Media?
A14) Mass media, the fourth pillar of democracy plays a pivotal position in up keeping the socio-political system of a rustic sound and healthy. Due to the development of data and communication technology (ICT), the position of mass media has been accelerated to a better order. Man has conquered time and area because of this contemporary technology. The print and digital media remain at the helm of affairs in each corner and nook of the world. Media touches the remotest village and unfolds the irony at the back of the scene. Mass media really connects the complete universe with a noble mission to percentage the sorrows and sufferings, pains and strains, fulfilment testimonies of the society. It always, if nicely controlled, takes an essential element in political affairs. As we recognize the improvement of a country relies upon up on the political will electricity, it fires now no longer most effective the spirit of legislature however additionally the other pillars of democracy. Analysis of the affairs of a rustic is notably vital for smooth progress.
Mass media carry out the position of a dynamic watchdog and erects its arms towards any backlog in an item. It diagnoses the system and opens the pitfalls and attempts to rectify it. With the developing penetration of mass media channels like TV and radio at the side of net in rural India, the vintage hooked up time period ‘Media Dark’ is getting fading away. According to a current survey carried out with the aid of using National Bank for Agriculture and Rural Development (NABARD), fifty-seven percentage families very own TV and 87 percentage use cellular phone.
With this, verbal exchange has come to be less complicated in the rural markets, however a large query nonetheless exists, and do rural humans believe the mass media marketing and marketing? The solution is, it's far nonetheless now no longer conducive for the entrepreneurs who're inclined to speak with the agricultural clients and who need to attain the agricultural clients via their marketing and marketing campaigns on TV, radio or net.
Q15) What is non-conventional media?
A15) The villages and small cities of India, which have been as soon as taken into consideration inconsequential from the advertising factor of view, at the moment, are getting the eye of the entrepreneurs and rural markets are proving to be essential for the increase of maximum of the FMCG (Fast Moving Consumer Goods) organizations. Rural India money owed for extra than 30 - 60 in line with cent of the full income of client items like biscuits, toothpastes, shampoos, washing machines and so forth. Because of saturation in the city markets, advertising approach have to shift its interest toward the agricultural markets, which can be now no longer visible because the dumping grounds of the client merchandise famous in city regions. Rural clients have a wonderful desire in their very own. But because of perceptible modifications visible in the development of infrastructure, growing degree of profits, explosion of media and huge insurance of TV, radio and so forth., the space among the city and rural divide is progressively narrowing. The rural client is extra discrete, extra cash-aware and extra utilitarian in outlook. The advertising verbal exchange MARCOM approach for rural regions have to be extraordinary from the city regions due to inaccessibility of strength and electronics media, skinny populace density and broadly scattered villages, negative publicity, low disposable profits and availability of counterfeit merchandise.
Q16) What is Personalized media?
A16) Social media refers back to the web-primarily based totally tolls and media that permit customers to in my view and informally interact, create percentage, retrieve and trade data and thoughts in digital groups and networks. Social media consists of social networking sites, blogs, micro-blogs, on-line forums, dialogue forums and corporations, Wikipedia, socially included textual content messaging. The youngsters aren't matured sufficient to distinguish among fable and actual life. Apart from this, over usage of social media decreases the quantity of time to be had for pursuing different sports which can be beneficial for his or her bodily and intellectual fitness and spending time with their own circle of relatives’ members. The revolution of verbal exchange in India during the last decade is astonishing.
Technology has been developing at a speedy charge to house the wishes and dreams of humans in acquiring a less complicated and extra green lifestyle. One of the best technologies to hit this twenty first century is the cell phone. At gift, India is shifting from an agrarian primarily based totally financial system to carrier-primarily based totally financial system. Consequently, the youngsters of India has grew to become tech savvy with the brand new digital media channels, e.g., radio, satellites, TV channels, cellular telephones, laptops and computer systems with cellular net. This has proved to be an effective pressure in the social transformation of city in addition to rural youngsters of India. The gift digital technology has each its professionals and cons. The digital technology now no longer most effective furnished higher, quicker and stepped forward running capacity of younger humans however additionally an emergence and new shape of disease in Indian youngsters. Since the closing decade, the over usage of social media is an ongoing pastime that's growing at an alarming charge and main to dependency shape a few of the Indian youngsters that's a severe concern. Problems springing up from over usage of social media were documented global consisting of in India, in which using social media has extended noticeably.
Q17) What is Evolution of rural distribution systems?
A17) Evolution of rural distribution systems are as follows:
1. Historically, the rural distribution system has included retailers, wholesalers, mobile traders, vans and weekly haats.
2. In the feeder markets, retailers act as wholesalers and vice versa to sell to small retailers who come from surrounding villages.
3.Some town retailers send their salesmen to villages to book orders and supply goods to these small retailers.
Q18) Write short note on wholesaling.
A18) Wholesaling involves the following:
1. 50% of rural consumption is still routed through wholesalers, because they are located in nearby feeder markets, which are frequented by village retailers to replenish stocks.
2. Indian wholesaler is a trader, rather than a distributor and as a result tends to support a brand during periods of boom and withdraws support during periods of slump.
3. Rural markets were neglected by most companies due to the low density of retail outlets and the small off-take per retailer. Wholesalers based in feeder towns took advantage of this situation as village retailers found it convenient to buy from these places. This resulted in the hold of the market by these wholesalers, who often indulged in trade malpractices in the channel.
Q19 Write short note on Rural retail system.
A19) Rural retail system functions as follows:
- Rural India accounts for 65% of retail outlets in the country. The logistics of feeding the 35 lakh retail outlets spread over 6 lakh villages is a tough task.
- The high distribution costs due to geographical spread and low volumes per outlet act as a barrier to the entry of products in rural markets.
- The average monthly sale per village shop is less than Rs. 5000/-, which restricts the variety and range of the products stocked.
- As a significant portion of the sale is on credit, it puts most village shops in a self-limiting sales cycle.
- Despite the same product being available in the village shop, 58% of villagers prefer to buy these from a haat because of better price, quality and variety.
Q19) Write short note on VANS.
A20) The uses of vans are as follows:
1. Mobile vans have an important place in the distribution and promotion of products in villages.
2. In this system, the salesman loads the van with stocks from the nearest stockiest or company stock point and works the surrounding markets.
3. Once he has covered all such markets, he moves to the next stock point and starts covering the villages surrounding that stock point.
4. Eveready batteries and torches are market leaders. It established an extensive distribution network that includes 1000 vans, 4000+ distributors and 44 warehouses. These vans reach 6 lakh retail outlets directly, each van making 50 to 60 calls per day. The company ensures that the van revisits a retailer every 15 days. The stock for these vans is supplied by the small-town distributors.