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Introduction

Rural India consists of 6, 38,667 villages, 597 districts, 700 million

people along with it a myriad of languages, many traditions and a rich culture.

A vibrant land with long history.70% of the Indian population resides in ruralIndia. Lot of scope is seen in the rural markets in India as it is growing day by

day. Rural India is emerging as a large market for a number of goods and

services like insurance, healthcare, financial services, education and

TELECOMMUNICATION etc. The list seems to be endless.

In todays time marketers see immense potential in rural market rather

than urban market. There is a huge potential in the rural areas as most of the

rural ion of new techniques still remain untapped. Unlike the urban consumer,

the rural consumer has a limited variety of products to we could choose. Hence

we could say that rural areas provide a lot of opportunities. Also the disposable

income of the rural people is increasing. The main reasons for this could be the

development taking place in the rural areas the introduction of new techniques

in agriculture, irrigation etc.Also with the growing reach of electronic media the

consumer becomes more aware of the existing products in the market. Hence it

is rightly said that EXPLORE THE RURAL MARKETS, DONOT EXPLOIT

THEM.

Rural Consumer Behavior:

Consumer behaviour is about individuals make decisions to spread their

available resources (time, money, effort) on consumption related products. That

includes what they buy, why they buy it, where they buy it, how often they buy

it, & how often they use it.

Not too long ago when marketing myopia was the prevalent feature of

Indian markets, companies develop products & services without ascertaining the

needs & wants of the target market. Today, though the customer is treated as the

king not enough effort is made to understand him. Without doing this,

penetrating something as complex as a rural market is just not possible

The primary fact is that there is a vast difference in the lifestyles of rural &

urban people. The choice of brands that an urban customer enjoys is different

from that available to the rural customer. The rural customer usually has 2 ormore brands to choose from whereas urban has many more choices.


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There is difference also in the way of thinking. Many companies have faced

embarrassing situations when rural consumers found an alternative use for the

product because they werent informed properly about the correct use. For

example, raichur Godrej black hair dye was used on buffaloes to make them

look presentable in village haats (market) hence success in rural marketing calls

for a sound network & a thorough understanding of the rural psyche.

Studying consumer behaviour involves examining individual, groups, or

organization & the process they use to acquire & organize information to make

purchase decisions & further to apply this information to use & evaluate

products & services. The following are the points that can be deduced from the

above definition:

Behaviour occurs either at the level. Or in context of a group.

Consumer behaviour involves the use & the disposal of products as well

as the study of how they are purchased; product use is often to great

interest to the marketer: because this may influence how a product is best

positioned or how increased consumption can be encouraged.

Consumer behaviour involves services & ideas as well as tangible

products.

The impact of consumers behaviour on society is also of relevance.

Simple Model of Rural Consumer Behaviour:

Need

Recognition

Pre-Purchase Search

Evaluation of

alternatives

Purchase decisions


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Post purchase

behaviour

Need Recognition:

A customer (rural) first recognizes his needs & accordingly thinks of purchasing

the products. This is the first in the simple decision making model. For example.

Ramlal, sarpanch of sonawani district, wants to purchase a colour television

(CTV).

Pre-Purchase Search:

Once there is need recognition. The next step is to do a pre- purchase search.

For example, ramlal may go to a nearby city & visit a showroom that has

multiple products.

Evaluation of alternatives:

The third step is basically to pick the best alternative from the available options.For example, ramlal may look the products f videocon, onida, LG that are

available with the dealers & may finally select one of them.

Purchase decisions:

This is the action that results in the purchase from among available alternatives.

The customer may plan to purchase a specific product that suits his needs & is

within his budget, etc. For example, ramlal may plan to go for LGs sampoorna

colour television, as it has a vernacular on- screen display (OSD) better sound &superior picture quality. Besides it is priced at only Rs 8500.

Post purchase behaviour :

This is the final step in the simple model to consumer behaviour. The buyers

relationship with the seller does not come to an end with the purchase,

especially in case of commodities like consumer durables. This is not an

important factor for FMGS. For example, ramlal may see whether LG has a

service centre nearby, in the event of the product needing servicing.


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RURAL MARKETING RESEARCH SOURCES

Primary sources:-they are collected especially to address specific research

objective. Collecting this type of data requires variety of methods ranging from

qualitative research to survey to experiments. It is also costlier and timeconsuming.

WHAT WE NEED FROM WHERE WELL GET

PSYCHE-it is a mental attitude of

people which has a lot of importance

in deciding the type of product to suit

the perspective of any consumer

CHOUPALS- generally people of rural

India seen gathered at choupals in the

evening (mostly middle aged and old

persons) we can go there & spend some

time with them just to known about their

psychology and there thinking pattern

Behavior- it is the reaction towards

any situation or things. It is also of

most importance because if

consumers behavior is unknown it

will be nearly impossible to know their

behavior for the product

Influence group-they are also called

opinion leaders, sarpanch/village head,

school teachers and doctors. Since they

are well established with the behavior of

rural people they can provide a great

amount of information.

Response towards product (likes &

dislikes)-every human being has there

list of likes & dislikes or we can say

they response differently for differentproduct. To know the criteria on what

they make their judgment on likes &

dislikes or response towards our

product we have to catch such persons

who deals with rural consumer every

day..

Retail shops/STD booths-they are well

versed with the likes and dislikes of rural

consumers. Retailer generally know

everything about the village and they canbe a great source of information since

wide variety of people visit there shops.

Cultural attitude/traditional belief- in

India cultural attitude differ from

region to region and have greatsignificance while deciding whether

the product is suitable for particular

region so far as their cultural attitude is

concerned.

Haats and melas- it is a place where

people of one many village gathered to

celebrate their fest. It helps to knowwhat the culture spread is across that

region.


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SECONDARY SOURCES:-They are ready made sources of information that

helps in research purpose generally data are available easily without making

much effort. The cost is such data is lower compare to primary one. Marketer

can just buy it , sometimes it is available free o cost. But it can be out dated or

irrelevant ,sometime false information are also revealed.

WHAT WE NEED FROM WHERE WELL GET

Literacy- it is not just about how much a

person is educated but also how much he/she

is informed about their environment and

latest affair. Literacy helps to adopt a strategy

of marketing which can suite their

understanding.eg. if in a village more people

will be educated we can adopt such

marketing strategy in which much detailed

information is revealed & vice verse

Government websites- government publishes

the information specifically for rural India

on internet from time to time. It helps to obtain

the information regarding market research.

www.censusindia.com

www.goi.co.in

Private bodies-many private agencies conduct

research in rural area to measure the

consumption pattern, awareness, reach, taste

etc. sources of such information are publishedin many magazines and journals such sources

of information can be referred to get

information about the rural consumer.

INDIAN MARKETING RESEARCH

BUREAU

RURAL MARKET INDEX

Publications- many news papers, journals, govt.

surveys and reports are published regularly for

individuals seeking information on rural

markets.

Such magazines and newspapers can be a

sources of information for us

Population if we are targeting a market we

must know the population of the targeting

area. It helps to about the no. of consumer in

the market and if we are well informed withthe population of our segment it well help to

adopt right marketing strategy.

Income/economic status- in market research

it is also very important to know the income

or economic status which further helps us to

tailor or pricing strategy and decide the cost

of the product.

Infrastructure(transportation, communication,

media, banking) many companies does notenter into such areas where the infrastructure

facilities are very poor because infra structure

aid in marketing activities which cannot be

done without proper infrastructure
http://understanding.eg/http://www.censusindia.com/http://www.goi.co.in/http://understanding.eg/http://www.censusindia.com/http://www.goi.co.in/


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OUR TARGET MARKET: RUPNAGAR DISTRICT

Introduction

The district of Rupnagar is named after its district headquarters, the district of

Rupnagar. Formerly known as Ropar, the district of Rupnagar is said to have

been founded by a Raja called Rokeshar, who ruled during the 11th century and

named it after his son Rup Sen. The district is of considerable antiquity. Recent

excavations and explorations conducted at Rupnagar indicate that the first

civilized folk to settle here were the Harappans, who apparently reached the

upper Satluj towards the close of third millenium B.C. District was carved out

on Ist November , 1966 at the of re-organization of the State. The District has

rich historical and religious significance behind it.A new district S.A.S. Nagar (Mohali) has been created on 14-04-2006. Two

blocks Kharar and Majri of earlier Rupnagar District have been merged with the

newly created district.

Location

Rupnagar district, included in the Patiala Division of Punjab falls between northlatitude 30-32' and 31-24' and east longitude 76-18' and 76-55'. Rupnagar

(formerly known as Ropar) district, the district headquarters is 42 Kms from

Chandigarh, the state capital. The district adjoins Nawanshahar, Mohali and

Fatehgarh Sahib Districts of Punjab. The district comprises 4 Tehsils, Rupnagar,

Anandpur Sahib, Nangal and Chamkaur Sahib and includes 624 villages and 6

districts namely Rupnagar, Chamkaur Sahib, Anandpur sahib, Morinda,

Kiratpur Sahib and Nangal. All the districts except Chamkaur sahib fall on

railways line. The Satluj river passes close (2 to 5 km) to the districts of Nangal,

Rupnagar and Anandpur Sahib.

Historical Background

The district of Rupnagar is of considerable antiquity. The district is said to have

been founded by a Raja called Rokeshar who ruled in the 11th century and

named Rupnagar after his son Rup Sen . The recent excavations carried out at

Rupnagar have proved that this district was the seat of well developed Indus

Valley Civilization . In proto - Historic Punjab perhaps Rupnagar is the onlyknown excavation site which can claim the status of a small district. The founds


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in recent excavations consists of earthen bares, statues, coins, etc. That proves

that the district dates back to Harrappa - Mohanjodharo civilization which

crossed Satluj river. Many of them settled at this place. In the excavations many

things founded belongs to Chandra Gupta, Kushan, Hoon and Mughal period.

One of rare finds is a seal of Marble on which there are three letters engraved inSindhi script. One of the finds is the statue of a woman dressing her hair. All

these proves that even the people living in this district 4000 years, hence were

fully civilized and well cultured.

Many historians are of the view that when the first man descended from the

mountains in the North to plains, he settled down at Ropar. A Mount is still

preserved by the Archeology Department at Ropar.

S. Hari Singh Rais of Sialba conquered Ropar in 1763 A.D. and established his

state . His son Charat Singh made Ropar capital of the state .

After the fall of Sirhind in 1763, Rupnagar came under the sikhs Chief Hari

Singh. The most famous ruler of Ropar state was Raja Bhup Singh , who fought

in the anglo-sikhs war of 1945. on the side of Maharaja Dalip Singh, the minor

successor of Maharaja Ranjit Singh , against the British. Consequently, after the

victory of the British, Ropar state of Raja Bhup Singh was confiscated.

The history of Ropar district is in fact the war of Guru Gobind Singh Ji against

Mughal tyranny, exploiters and social evils. It is here in this district at SarsaNangal that the great Guru parted with the family and proceeded to Chamkaur

Sahib where two elder Sahibzadas laid down their lives fighting for truth and

Guru Sahib left for Machhiwara on a constant struggle.

Rupnagar district also has the status of district headquarters with the creation of

Rupnagar District on Ist Nov, 1966. Situated on the bank of river Satluj, Sirhind

canal passes through the heart of the district. It

was formerly known as Ropar.

The district of Rupnagar occupies a prominent

place in the ancient and medieval history and

has an importance in modern history too. Recent

excavations suggest that Rupnagar was one of

the oldest districts in the Punjab. The relics

excavated from a mound, known as Nalagarh Tibbi near the Government

College reveal that the district had flourished in the past with a very advanced

civilization similar to Harappa and Mohenjodaro Civilization.

The small district of Rupnagar occupies a prominent place in the modern historyalso. It was here under a "Peepal Tree" that a memorable meeting between


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Maharaja Ranjit Singh and Lord William Bentick took place on 26th October,

1831 during which various boundary issues were settled.

Climate, Rainfall and Soil

The climate of Rupnagar District is characterized by its general dryness (except

in the south-west monsoon season), a hot summer and a bracing cold winter.

The year may be divided into four seasons. The period from about middle of

November to February is the cold season. This is followed by the summer

season from March to about the end of June. The south-west monsoon season

commences late in June and continues up to about middle of September. The

period from mid September to the middle of November constitute the post-

monsoon or transition season. The temperature ranges from minimum of 4 C inwinter to 45 C in summer. May and June are generally hottest months and

December and January are the coldest months. Relative humidity is high,

averaging about 70 percent during monsoon. The average annual rainfall in

district is 775.6 mm. About 78 percent of the annual rainfall is received during

the period from June to September. The soils of the District vary in texture

generally from loam to silty clay loam except along the Sutlej River and chos

where some sandy patches may be found. Chamkaur Sahib and Kharar blocks

have sodic soils. The soils of Anandpur Sahib and Rupnagar blocks are

undulating.

Home Life

Dwelling - In rural areas, the people are not provided with all the modern

facilities available in towns. Most of the dwellings are partly kachcha and partly

pukka and are provided with a baithak (sitting room) for guests, etc. However,

more and more pukka houses are also coming up with the passage of time.

The houses have, generaly, a big deor (chamberlain), vehra (open space), dalan(rectangular room), etc. There are separate havelis for keeping cattle and fodder,

though, in some cases, these are also kept in the residential building itself.

According to the 1981 Census, the number of occupied residential houses in the

district was 1,18,958.

Decoration and Furniture. - The average house in the rural areas has charpoys,peerhis, muharas, a small table, chairs, etc. The rural folk are generallyignorant


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of internal decoration. A wooden plank is some times fixed parallel to the wall

on pegs and decorated with brass utensils, crockery pieces, toys,

etc. Sometimes, the people paint the walls with pictures in gaudy

colours. They also plaster the inner walls and the floor of the house(if it is

kachcha) with cow dung. the pukka houses have interior of such houses isdecorated with framed pictures and calendars. Such houses have some items of

furniture, e.g. chairs and tables, besides nivari cots, plangs (beds teads), etc.

However, the items of decoration in the kachcha and pukka houses include

calendars of gods and goddesses, the gurus, national leaders, actresses, etc. hung

on the walls.

Food The main factors which determine the dietary habits of any area are the

local climatic conditions, the availability of commodities at reasonable price,

and the financial position of the people. The staple cereal is wheat, which is

eaten almost throughout the year. Maze and millets are taken in many

households n the winter season. Although paddy is a local crop, rice is taken

only occasionally. Gram flour is geneally used for preparing curry and

pakoras. The villagers do not cunsume much vegetables and consume only

those grown by themselves. They eat pulses, i.e., of mooning, urd, gram and

massar, which are also locally grown. Potatoes are commonly eaten. Meat is

aken on special occasions. Very little fruit is eaten in the rural areas. Ghee is

becoming scarce because the farmers prefer to sell the milk. for the same reason

curd and butter are also rarely used due to the shortage of milk. Lassi

(buttermilk), which was a common Punjabi beverage, has become a thing of thepas being replaced by tea. Tea is generally taken 34 times a day. It is served

even in the fields now. The commonest sweets amongst the villagers are ladoo,

jalebi, badaa and mesu. Sikhs like halwa very much.

Smoking is very common in the rural area of the district. Sikhs abstain from

smoking. The rural men are very fond of alcoholic drinks. Until about 30 years

ago, alcohol was consumed mainly on festive occasions. The practice of

drinking has, however, now become very common and widespread.

Classification of Roads

The roads in the district may be broadly classified as national highways,

provincial highways including state highways, district major roads, other district

roads (including village approach roads) and roads maintained by local bodies.

In 1982-83, out of a total length of 1,796 km in the district, the length of

national highways was about 77 km. The length of provincial highways

including district major roads and other district roads (including village

approach roads) was 1,719 km. The national highways and the provincial

highways are maintained by the Public Works Department (B&R). The Central


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Government pays for the national highways. The local bodies roads are

maintained by their respective municipalities.

National Highways :-

These roads link the capitals of large States, big cities and industrial centres,

lead to the borders to strengthen border defences; and connect ports and roads

of other countries situated on the border. The national highways are metalled

roads and are maintained by the State Public Works Department out of the

funds made available to the Stated by the Central Government. The total length

of National Highways No. 21 (Ambala-Chandigarh-Rupnagar-Manali Road)

passing through the district from Zirakpur to village Gara near Himachal

Pradesh boundary is about 77 km. This does not include the portion of road

passing through the Union Territory of Chandigarh. This road has been widened

and strengthened and at present the metalled width of the road from SahibzadaAjit Singh Nagar to Kharar is 33 feet and Kharar to Kirtapur Sahib is 22 feet

and from Kiratpur to Himachal Pradesh boundary, it si 12 feet. The road has

been improved by raising low lying portions and by improvement of the sharp

curves in the portion, Sahibzada Ajit Sikngh Nagar to Rupnagar. From

Rupnagar to Kiratpur Sahib, the road has been strengthened and a very high

quality surface by laying bituminous macadam with mechanical plant and paver

has been provided.

State Highways :-

These roads connect all the important centres of trade, industry and commerce

within the State and also those of other States or the National highways. These

are constructed and maintained by the State Government.

District Major Roads :

These roads connect important markets and centres of industries, and lead to the

railway stations. These also join State or national highways.

Other District Roads :-

These serve as important arteries of communications among the different parts

of the district. These roads include also those roads which formerly fell under

heads district minor roads and village approach roads as the use of these termshas since been discontinued.


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Vehicles and Conveyances

The traditional means of conveyance used in the district include bullock-carts,

tongas, wooden rehris, etc. Domestic animals are used for transportation

according to the local needs of the inhabitants. Bullocks, camels, donkeys, etc.,

are also used as beasts of burden for carrying foodgrains for nearby villages to

the markets in the towns.

Although motor vehicles are becoming increasingly common, bullock-carts

continue to play a vital role in the countryside both for conveyance and carriage

of goods. They are eminently suited for the rugged countryside. A recent

improvement in the design of the bullock cart is the use of pneumatic tyres in

place of the traditional wooden wheels.

A remarkable feature of the post Independence period has been a rapid decline

in tongas and ekkas driven by horses. This is primarily due to the emergent of

cycle rickshaws which are cheaper and easier to maintain. The horse carts,

however, still continue to be used in many parts of the countryside. The auto-

rickshaw is a recent innovation. The quick means of conveyances now used are

buses, cars, jeeps, tucks, taxis, motor-cycles, scooters and tampos. Tractors

usually fitted with trolleys have now come to be used as a common means of

transport for village folk.

Bicycles :-

The bicycle appeared first in Indian cities in the beginning of the 20th century.

For short distances within a city, it is a convenient conveyance. It has besides

the advantages of being cheap, flexible and handy. Bicycles are commonly used

by dairymen and cultivators to bring their milk and dairy products to the cities

and adjoining towns. A large number of students, teachers and workers depend

on the bicycle for conveyance. Hawkers sell their commodities on their

bicycles.

Cycle-Rickshaws:-

Cycle-rickshaws are seen plying in every town. For short distances, it is a cheap

means of transport carrying two passengers. It can also pass through narrow

lanes. Rickshaws have replaced tongas and ekkas in towns. The development of

roads in the rural and urban areas has increased the mobility of cycle-rickshawsfrom towns to the adjoining villages. Some well-to-do puller purchase their own


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richshaws while others ply them on hire. The commercial banks advance loans

to the rickshaw pullers at a nomical rate of interest to enable them to purchase

their own rickshaw. Under the Punjab Cycle Rickshaw (Regulation of License)

Act, 1976, licences are issued to the owners only.

The Punjab Government has formed bye-laws for the rickshaw pullers. Only

physically fit persons between the aged of 18 to 45 are allowed to ply the

vehicles. Rickshaw unions exist in some towns of the district. They have

regulated fixed rates for specified distances.

Horse Carriages :- A limited number to tongas and ekkas are still found in most

of the towns of the district, but this means of transportation is slowly fading out

in the district, as elsewhere in the State.

Public and Private Transport

The Transport Department was under the control of the Provincial Transport

Controller prior to June 1969, when it was bifurcated into two wings, viz.

Commercial Wing and Non-Commercial Wing. The former, known as Punjab

Roadways, was placed under the charge of the Director, State Transport,

Punjab, and the latter under the State Transport Commissioner, Punjab,

Chandigarh. The Director, State Transport, being the overall incharge of theCommercial Wing, is concerned with the operation of State Transport buses on

commercial basis, whereas the State Transport Commissioner is concerned with

the issuing of route permits and enforcement of Motor Vehicles Act and the

rules framed thereunder.

There has been a noticeable expansion of motor transport in the district.

The increasing popularity of passenger travel by road is the result of the

efficient network of bus services which had been built up in the State in recent

years. All district and sub divisional head quarters have been liked with

Chandigarh the State headquarters by bus, and important innovation on theseroads are night and delux services. Children are provided free travel to schools.

However, college students are issued monthly concessional passes for travel to

their institutions.

State owned Services :- There are two sub-depots of Punjab Roadways, one

each at Rupnagar and Nangal.

Private Bus Services :- Previously, most of the routes in the district were

operated by the Ambala Bus Syndicate (P) Ltd., Rupnagar. Besides, there werefour private transport companies operating in the district. Now the routes of


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Ambala Bus Syndicate (P) Ltd., are operated by different transport companies

which have their offices outside the Rupnagar District. As on 31 March 1985,

there was only one private transport company, viz., Ex-Servicemen Motor

Transport Society (P) Ltd., Rupnagar which was effectively operating their but

routes, viz. Rupnagar-Rajpura (via Kharar) Rupnagar-Ludhiana (viaMachhiwara-Kohara) and Rupnagar-Nangal (via Laodi Majra) in the district.

Goods Transport by Roads :- Trucks have come to occupy a prominent

place in the modern transport system. There has been appreciable increase in the

number trucks which carry luggage and goods from one place to another. Over

short and long distances, they successfully compete with the railways. Goods

traffic by road is entirely in the hands of private operators. With a view to

giving long distance goods operation for the benefit of public and the operators,

schemes have been introduced whereby operators are issued a permit to work

within specified zones including a number of States. Private owners/workers

have formed unions to look after their interests. M/s Janta Road Carriers,

Rupnagar is the only goods transport company registered in the district. Three

transport companies, viz., the Bharat Transport Company Ltd., Ludhiana , the

Northern Carriers (P) Ltd., Amritsar, have opened their offices at various placed

in the Rupnagar District.

(c) Railways

The Rupnagar District lies in the Delhi Division of the Northern Railway and isconnected with the Nangal Dam-Amabala Cantonment branch line of the

railway. The railway stations falling on it in the district are Nangal Dam,

Bhanupali, Anandpur Sahib, Kiratpur Sahib, Bharatgarh, Ghanauli, Rupnagar,

Mianpur, Chatauli, Kurali and Morinda.

Rail-Road Competition :- Railways occupy a unique place in Indian economy.

Road transport has been able to compete with the railways due to its flexibility

which enables door-to-door service over short distances. Another advantage

enjoyed by motor transport is its suitability for transportation of certainperishable commodities, e.g. eggs, fish, vegetables, and dairy products. Most

truck operators calculate the cost of performing their service and allowing for a

little margin of profit, quote their rates. They do not bear permanent overhand

charges on maintenance of roads, etc. On the other hand, station buildings,

platforms, cabins, bridges, etc. They invest a heavy amount in the purchase of

the rolling stock also.

The advantage of road transport lies in its lower handling costs, faster service,

door-to-door carriages, less


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risk of loss and damage, low cost of packing, more flexible timings and

avoidance of transshipment. However, for the transport of heavy machinery,

bulky articles and also for long distance haulages, railway transport is preferred.

The two systems of transport have, thus become complementary rather than

comeptitive.

(d) Waterways, Ferries and Bridges

The Satluj River, which passes through the district, is only 2 to 5 km from

Nangal Township, Naya Nangal, Rupnagar and Anandput Sahib Towns.

Navigation is, however, not possible in this river because of erratic flow of

water.

Ferries :- Ferries are a convenient means of transporting men and materials

across rives at points where no bridges exists.

Bridges :- A number of bridges are constructed and maintained over the river,

streams, etc. for smooth running of road traffic in the district.


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RURAL PRODUCT

Rural products of India are unique, innovative and have good utility and values.

Large number of the rural product sustains a significant segment of the

population in the rural areas. Several attributes of rural products can be

identified, for which, it has a demand in the market. Out of the lots, ethnic

origin and indigenous design & appearance are two traits of rural products,

attracting a premium in the market.

Products in local use are also not marketed horizontally; they often first travel

down to market through a long chain of intermediaries and then up to more

difficult locations in the rural areas. In the process, the people in rural areas

suffer from both low prices as producers and high prices as consumers. In this

conflict, rural products loss its equilibrium and the supply side becomes

exponentially high. Because of this hazard, rural entrepreneurs face acute

economic loss and rural markets become stagnant

Suraksha a breakthrough offering of Aqua ltd., comes with many unique

benefits complete protection from all water-borne diseases, great

convenience, and unmatched affordability. Surakshas unique Germ kill

Battery technology kills all harmful viruses and bacteria and removes parasites

and pesticide impurities, giving you water that's 'as safe as boiled water. It

assures your family of 100% protection from all water-borne diseases like

jaundice, diarrhea, typhoid and cholera. Whats more, it doesnt need gas,

electricity or continuous tap water supply. Further reassured to know that

Suraksha meets the stringent germ-kill criteria of the Environmental Protection

Agency (EPA), the toughest regulatory agency in the USA.

SOURCES OF WATER IN RUPNAGAR

Rupnagar District is situated on the bank of river Satluj which passes throughthe heart of the district. This is the main source of water. The alternate sources

of water are Wells, tube wells and canals are the main sources of irrigation in

the district.

NEED FOR A WATER PURIFIER

According to our market research, the water provided by the different sources is

not conducive for good health. There are a few industries in Rupnagar. All the

waste and by products are deposited in the rivers. This contaminates the water

making it unfit for drinking. What people do is that they just boil the water and

have it. But this does not reall hel because boilin the water does not totall
http://www.articlesbase.com/marketing-articles/rural-products-industrys-role-scope-opportunities-and-challenges-903083.htmlhttp://www.articlesbase.com/marketing-articles/rural-products-industrys-role-scope-opportunities-and-challenges-903083.html


16/27

SWOT Analysis of the Company:

SWOT analysis would tell us in better way about the competitive position of the

company. Following is SWOT analysis of the company.

Strength:

Strong Brand name [HUL (Hindustan Unilever Ltd.) LOGO & FAMILY

BRAND]

Pure Drinking Water in market

Mineral Product (Free of chemicals)

Only brand in the area maintaining its quality and taste

It has largest market share

Ease of availability of their products in Roop Nagar

Immense product range and huge diversification leads to reduce risk.

High quality standards

Weakness:

Communication is weak

Lack of Awareness

Weak Distribution Channels
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These distributors, though observing the rapid increase in customer demand

refuse to hire new, more efficient and innovative staff that would take the

organizations to rise rather they stuck to their old staff members.

Opportunities:

Concentrating on these areas of weakness can increase sales

It has opportunity to advertise its product in better way.

It has strongest opportunity to increase its product line by making

segments in mineral water. Mineral water should be of different taste. So it

captured the market.

By increasing product line it can also increase its sales.

Threat:

Segments are being shared by competitors

Under cutting by competitors.

Uncertain conditions will affect the sales

MARKET SEGMENTATION FOR SURAKSHA WATER PURIFIER:

On the basis of Geographic Segmentation

Region: Punjab

Village: Rupnagar
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Population: Around 1-1.5 Lacs

Density: Semi Rural

Climate: Moderate

On the basis of Demographic Segmentation

Age: All

Family size: 4+

Gender: Both

Income: 5000 and above

Occupation: Agriculture/Non-Agriculture

Education: All

Caste: All

On the basis of Psychographic Segmentation

Lifestyle: Changing Attitude

Personality: Authoritarian

On the basis of Behavioural Segmentation

Occasion: Regular Occasion

Benefits: Quality, Price and Service

User Status: First Time User

Usage Rate: Heavy User

Loyalty Rate: Strong

Attitude to Product: Enthusiastic & Positive
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TARGETING OF SURAKSHA WATER PURIFIER:

After the above thorough evaluation of the selected segment, we have to chose

the target market and formulate a marketing strategy, which can be further

linked to the positioning formulation. We have targeted the villages ofRupnagar. Our main focused target customers will be in the income group of

more than 5000rs. we are targeting the whole village of Rupnagar. Since it is a

water purifier which provides good health so all age group of people can be

targeted. Our different pricing strategies will help us to target all income group

of people.

POSITIONING OF SURAKSHA WATER PURIFIER:

Positioning means positioning a particular product in the prospects minds i.e.

placing the product in consumer minds through advertisement and other

marketing tools. Positioning is needed as a product cannot be everything to

everyone but it has to be something to someone. We are going to position our

product as substitute to electrical purifier. As normally villages and semi rural

areas dont have good supply of electricity our product which runs on battery isgood advantage in such areas. So mostly our positioning is battery run water

purifier.

The USP (Unique Selling Point) of our product is durability, power-saver and

low price.

PRICING
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Profitability is the factor that is determined by the price of the product. The

volume of sales also depends on the price of the product. Our main objective is

to increase sales volumes. We are not hoping for an instant profit. Our pricing

objective is to achieve profitability in the long run. We also need to penetrate

the market in Rupnagar. The price of our product i.e Suraksha Water Purifier

will be Rs.1,499/-.

The pricing methods and strategies adopted are:

1. Low price strategy: We have adopted a low price strategy for Rupnagar.

There has been a water purifier in Rupnagar which costed Rs.2,000/-.

This product was not successful. Our price is slightly lower.

2. Value engineering strategy: We have replaced the metal productswith plastic. This has considerably lowered our cost of production. Hence,

the product has become cheap. The functions performed by the product

have not changed, only the price has changed. Therefore, a larger segment

of the population will afford it. This is also a value priced product.

3. Penetration pricing: We have introduced our product at a low price

in Rupnagar. We have allotted the price to penetrate the market in this

district. Our main objective is to increase sales volume and thus

establishing a market for our purifier.

4. Installment facilities: We will also be providing installment facilities

to the consumer. The installment scheme is

5. Discounting: We will give discount to the consumers if they buy in

bulk. If 5 families come together and buy our purifier, we will give

Rs.100/- discount to each family.

All the above pricing methods are very attractive. The consumers may try outour products because of our attractive pricing. This will help in increasing our

sales volume. We will be able to penetrate the market and establish a market for

our purifier. This will immensely contribute to the success of our product and

will help us to achieve profitability in the long run.

RURAL DISTRIBUTION

Rural distribution is considered a nightmare because of the 638,667 villages

spread across the country. To make it easier, one needs to ask from where rural


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consumers buy . in the case of durables ,90 percent is purchased from towns

with a population of 20,000 plus (as per an IMRB study ) , totaling only

2,300.the situation with FMCGs is more complex but not insurmountable.

Direct supply up to the 20,000 plus population feeder towns should be quite

sufficient , as each distributor would ,in turn ,have supply networks off 100-plus

outlets in 50-odd locations, which can cover all villages up to the 2,000-plus

population category.

Distribution in rural markets can be categorized into:

PHYSICAL DISTRIBUTION CHANNELS OF

DISTRIBUTION

PHYSICAL DISTRIBUTION

Physical distribution is the process of delivering products to the marketing

channels and consumer. It encompasses the various activities involved in the

physical flow of the product from the manufacturer to the consumer. The

following diagram illustrates the various processes of physical distribution:

TRANSPORTATION

Transportation to interior parts of villages becomes very difficult. Although we

have a huge network of road and rail routes, much of our villages still donthave proper distribution network. The villages we have chosen too, does not

RURAL DISTRIBUTION

TRANSPORTA

TION

WAREHOUS

INGGGGG

COMMUNICAT

ION


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have good transportation facilities. But, still there is some point till where these

goods can be transported through the use of trucks and tempos. We can have a

common place where these trucks and tempos can transport goods until where

the roads are available. From there we can have bullock cart and cycles, which

can further transport goods to small shops in villages.

COMMUNICATION

Here, in the village we dont have enough facility for communication too. So,

we need a good communication service to communicate to the villagers about

our product. For this we have planned to locate a STD booth in every village,

from which customers or any other person can call to the suraksha call centerand know any information about the product. This will facilitate the villagers to

get any information about the product any time they want.

WAREHOUSING

There is a warehousing problem in India and especially in the rural India where

this issue is very acute. Since there are no warehouses in the villages we have

chosen, we have planned that trucks will carry a reasonable no. of purifiers to

the selected locations in the villages and further delivery of the products will be

done on order basis. This, we can easily eliminate the problem of warehouse

and thus decrease the warehouse cost.

We have decided to make the following changes in the traditional system of

distribution for better and effective ways of distribution.

1. Multiple tiers ,higher cost and administrative problem:

We have decided to eliminate the middleman in the channel of

distribution. This will help us to reduce the cost involved in distribution

and thus it will even help to minimize the administrative problem.


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2. Non availability of dealers:

Since, we have decided for the direct distribution, this even helps is to

eliminate the dealers and avoid the problem of searching the good

dealers.

3. Poor viability of retail outlets:

There is even a problem of proper retail outlets in such villages. since,

our plan is of a direct door to door selling even this problem is easily

solved

4. Inadequate bank and credit facility:

There is even a problem of bank facility in such areas. So, there is no

facility to provide them proper and easy credit for any investment or

purchase. Our easy installments and less price also gives a compensation

to this problem.

5. Syndicated distribution:

Since, it is practically impossible to generate huge and extensive

distribution network to connect all the houses of the villages, we have

thought of adopting a syndicated distribution for such villages. We are

going to rely on the network of the FMCG products to carry on our

product even to the deserted shop of any village. We can have at least one

piece of our product in every such shop and further, if there would benecessity of more products , they can be allotted on the order basis.

6. Grass root distribution strategy:

The company is adopting a very innovative strategy which is not adopted

by any of the companies until now. The company has decided to involve

such people in the distribution network who are well in contact with the


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villagers. These people include teachers doctor and also Sarpanch. For

this these people will be given commission.

This will help the company in two ways in terms of distribution as well as for

promotion of the product. This is because the people like Sarpanch or doctorhave ability to influence the buying decision of people. If a sarpanch advise the

people to buy a particular product tell all the people will buy it or at least think

of buying it.

RURAL COMMUNICATION

Advertising is a Rs 10,000 crore industry in India. Ad agencies are seeking

greener pastures and entering rural markets through communication models.

Advertising in the rural context must be seen as consisting of techniques to

improve economic mobility within the country. The emergence of an active

cash economy is bound to create strong rural demand and promote

consumption. Therefore, we have selected Sampark, one of the top ad

agencies in Rural India to assist us.

Rural Media

Media is as much a channel of communication as it is a tool for social change

in rural areas. Media can be broadly divided into traditional or non-conventional

media and mass media or conventional media.

Conventional Media

1. Video on wheels: It is an innovative concept to advertise to target market. We

will place T.V sets and loudspeakers in a van. This van will cruise through the

villages of Rupnagar. A video will be shown on the T.V. In the video will be

one of the popular doctors from the district who will speak about the water

borne diseases. He will place some facts and figures. He will speak about our

purifier and how it will help the people to safeguard their families from the

increasing water borne diseases. We will also show our advertisements and the

functions of the purifier. Kapil Dev and Dara Singh as our brand ambassadors

as they are local faces of Punjab and they symbolize good health. They


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will guide the people on the usage of the purifier and its huge usefulness. These

being a very famous personality, they will create a very good impact on the

people of the villages.

2. Television: As a result of its large audience, TV is an extremely cost-effective method of delivering the advertising message. On a cost per point

basis, TV is excellent for reaching an overall audience. Cable T.V is widely

watched in the villages of Rupnagar. The most viewed channels in the villages

of Rupnagar are Alpha Punjabi and Zee Punjabi. Star Plus, Sony and Colors are

also watched. Punjab Today is a 24 hours news channel here. The most viewed

news channel is Etc Punjabi. We will be mainly placing our advertisements in

these channels during the 8 pm to 11 pm time slot and also during the time

when there is electricity available in the villages.

3. Radio: The major advantages of radio are that airtime is relatively

inexpensive and it provides much tighter targeting than is possible on TV.

Radio is effective in reaching defined geographic targets. Radio has a wider

reach to the people of Rupnagar. Many people are tuned into radio while

working. The famous radio channels are 91.9 radio mantra, 92.7 big fm and

100.2 air patiala. These stations employ formats or types of programming that

are designed to attract a large number of people. It is also cost-effective.

Therefore, we can place audio advertisements in these famous stations

throughout the day. This will attract many consumers.

4. Word of mouth: This is another important method of communication. We

will take help of opinion leaders like teachers in schools and colleges, village

headmasters, panchayat, primary health centre doctors who will play a very

important role in having a better impact on the people. We will take these

people into confidence and tell them about our product. Since people have more

confidence in these people, they will listen to them and follow their advice. Inschools and colleges, a sponsored prize by Suraksha purifier will be give to the

students who have a very good attendace. The teachers will speak about the

water-borne diseases and how our purifier will help, on the days like open house

days and annual day functions. This will target the families of the students

studying in the schools and colleges. We will request the primary health care

doctors to give our pamplets to the patients visiting in their health centres. There

are 3 primary health care centres, 11 dispensaries and 1 hospital. We will install

Suraksha Water Purifier kit in a selective few for free. We have chosen We


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have also planned to take the famous local faces to every house in the village

and ask them to educate the people about the water purifier.

5. Print: The literacy rate is about 78% in Rupnagar. Majority of the people are

literate. Many people in the villages read newspapers. Newspapers like DainikBhaskar, Dainik Jagran and Te Tribune are widely read. Therefore, we will

advertise in these newspapers and attract consumers.

Non-Conventional Media

1. Demonstrations: Demonstrations play a significant role in raising the

awareness of rural customers. Due to the lack of awareness of product features,

rural customers need product demonstrations. Therefore, we will be conducting

demonstrations. We have selected places like schools, colleges, melas, haarts,

hospitals and clinics where our product will be demonstrated. Demonstrations

will be shown to the students and their families during their open house day and

annual day functions and during other such events. By targeting schools and

colleges we have targeted young minds and future generations. Demonstrations

in hospitals and clinics will help us to get the faith of doctors too, who in turn

can instill faith in common people visiting there. Setting up a smallin the

haarts and melas will help us target a huge crowd.

2. 2 lene te rupaye de bachat: this means that on 2 purchases they will save 500

rupees. This will help us to increase our sales. This can urge some of the

consumers for bulk purchases. This will help in generation of sales and increase

in profits. The idea behind this is that most of the people in Rupnagar has joint

families with members in family running to something about 10 or so. So large

families may opt for such purchase.

3. Wall-painting: wall paintings are an effective and economical medium for

advertising in rural areas. They are long lasting and remain as long as the

weather permits. Therefore, we are also arranging for wall-paintings. People

there have individual unpainted homes. We can use such walls for our wall-

paintings. We will be choosing the walls where the crowd is generally more like

a famous retail shop. The walls will show our product, its necessity in every

household and the offers that we are providing.

4. Booklets and calendars for Rupnagar: We have also planned for printing ofour product advertisement on booklets and calendars here in Rupnagar. Some of


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these booklets and calendars will be given free of cost to public at public places.

These booklets will be placed at retail shops in every village so that people will

be informed about all that they desire to know about the product

Feed back

This is the final stage of the rural marketing strategy. Any planning effort

should also have a considerable control aspect. A strategy when executed has to

be carefully monitored. Therefore we have decided to have strong and efficient

method of feedback from customers. We have divided this stage into two, they

are,

1. Monitoring the rural marketing strategy:

A strategy has to be carefully monitored to avoid faulty implementation.

If there is any gap in execution it should be addressed and checked before

the role out. We will check the volume and the growth of the sales which

will be a benchmark for us to see whether our strategy is going in a

desired direction or not.

2. Feedback and control:

Controlling can be done through constant feedback mechanics. Therefore we

have arranged for feedback result from dealers, salesmen, market surveyors

and retailers. this will help us to get regular feedback about the product and

thus we can implement the changes required

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