Retail outlets have sprung up practically in all the villages. In interior villages retailing is a part time chore unlike the case of the retailer in town. In a part of their house, the villagers make retail counter. The maintenance costs for retail outlets in interior villages are also low with most of the cost spent on traveling and transportation.
One of the principal reasons behind the explosion of retail outlets and its fragmented nature is that retailing is probably the primary form of disguised unemployment/ underemployment. The overcrowded agricultural sector, stagnating manufacturing sector, the hard nature of jobs and low wages in both virtually force many Indians to the service sector. So, it is almost a natural decision to open
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But the rural markets can be exploited by realizing them, rather than treating them as convenient extensions of the urban …show more content…
A give-and-take two-way approach should replace the present one-way exploitation.
• The salesman in rural markets should be selected from the educated unemployed villagers, trained well and appointed as salesmen. The town-to-villages shuttling salesmen are to be replaced by stationary salesman in villages.
• Companies should also adequately concentrate on educating the villagers to save them from spurious goods and services.
• Rural markets are laggards in picking up new products. This will help the companies to phase their marketing efforts. This will also help to sell inventories of products out dated in urban markets.
SUGGESTIONS FOR INNOVATIVE RURAL MARKETING
The above examples show how big corporate have moved beyond the archetypal rural marketing tools and beginning to think of the next best way to tap 720 million customers spread across the country’s hinterland. The following serve as suggestion point for the brands to tap the rural market potential
(i) Relating to Product: Small unit size and low priced: A lot is already emphasized on adapting the product and price in terms of packaging, flavoring, etc and in sachets, priced to suit the economic status of the rural India in sizes like Rs. 5 packs and Re.1 packs that are perceived to be of value for
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
• Build relationship among the rural population, where the attribute of some potential community leaders who could be of help is
The retail industry is as old as human civilizations, and it’s worth noting the retail sector is much better geared to change than most sectors. Over the past couple of decades there has been a wide range of changes in the retailing business. The retail sector dates back to the early 1800’s when the first local corner store sold common household items and basic groceries. As its name states, the corner store was just that, stores strategically placed on corners on high foot traffic areas for easy access. As society started to grow so did the need for new consumer goods and how a consumer would reach those goods. Department stores became popular simply because they were able to offer an assortment of categories and a variety of items within those categories all under one roof. The first two cities to start developing large scale department stores were New York City, and Chicago. In New York in 1846, the first building was built offering a variety of goods at fixed prices that were shipped from Europe. Department stores moved away from the idea of bartering and all items sold were considered fixed. However, department stores did offer discounts and coupons as a way to get customers in the door. In 1862, the largest department store was built during this time in New York City. The department store was on a full city block with eight floors and nineteen departments of dress goods, furnishing materials, carpets, fine china, toys and sports equipment. All these items were arranged around a central glass-covered court. The glass windows quickly became a staple in the department stores design. The act of window shopping was introduced and quickly all department stores had floor to ceiling windows advertising the newes...
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
This is necessary as the vast majority of individuals migrating from rural to urban centers has been steadily increasing with the level of economic growth seen within the past twenty years as mentioned earlier. Unfortunately, this situation has further shown the structural issues and inequalities of cities, as most migrants end up having a poor quality of life living in informal settlements as highlight substantially by Boo. As a means of tackling this, however, the Indian government has turned its focus on investing rural regions, developing the agricultural sector. Specifically, Boo mentions that “the prime minister, Manmohan Singh, had come down from Delhi to express his concern for the farmers’ hardships, and the central government’s determination to relieve it” (p. 138). While this is definitely important funds are not being divided justly. For starters, between rural and urban areas almost all investments are being targeting towards rural regions, which is only addressing issues of inequality in one section of the country. Furthermore, across rural areas inequalities of investment are quite often overlooked. Although, “one of the governments hopes was to stop villagers from abandoning their farms and further inundating cities like Mumbai, but Asha’s relatives knew nothing of these celebrated relief programs” (p. 138). Therefore, even though
Therefore, since Coffee Time is entering a new market they will follow a two- stage market research design that involves a secondary research and primary and experimental research that they will design to determine if Coffee Time should enter the Indian market. Keep in mind, the research will have to operate within a defined budget. In order to get the right data, Coffee Time hired a market research firm called Total Access. However, to help get some of the data on cultural outlook and the degree of affluence of the people; Coffee Time agreed to send their Senior Vice-President, of Marketing Brad Collins to India as well. Total Access along with Collins prepared a perceptual map of twelve Indian cities, which has been classified based on the cultural outlook and the degree of affluence of the people.
We have now seen some of the main arguments for how planning can hinder rural development, but what is key is how plans can change to be made more supportive of these economies to ensure sustainable and vibrant rural communities. Foremost, a decisive switch needs to be made in all planning literature, whilst the current system comes from the point of view of no business unless it provides a clear benefit and only in certain areas, it should instead take the position of promoting all business in all rural areas, unless there is clear negatives. This is because many of the benefits of new employment opportunities are unlikely to be clear at first. Plans should be more open to the idea of business in rural areas as a whole.
During my last year in high school, I developed a desire to learn and understand the business in order to help my parents in the future. As a result, I chose to study Marketing at Thammasat Business School. In my third year of studies, I joined the 27th Marketing Trainee Programme hosted by the Marketing Association of Thailand, where I have experienced first-hand training from professional marketers and took part in marketing stra...
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more.
...earch and extension, rural infrastructure, and market access for small farmers. Rural investments have been sorely neglected in recent decades, and now is the time to reverse this trend. Farmers in many developing countries are operating in an environment of inadequate infrastructure like roads, electricity, and communications; poor soils; lack of storage and processing capacity; and little or no access to agricultural technologies that could increase their profits and improve their livelihoods. Recent unrest over food prices in a number of countries may tempt policymakers to put the interests of urban consumers over those of rural people, including farmers, but this approach would be shortsighted and counterproductive. Given the scale of investment needed, aid donors should also expand development assistance to agriculture, rural services, and science and technology.
There are two kinds of factors why rural people seek for urban life. The first one is urban pull factor. They dream for higher wages, better housing and utilities, better school and hospital, more jobs opportunity, and more experience that they can get it all from a living in big cities as they think. The second one is urban push factor. We know that most of rural areas people are farmers. There’,s not much else to do anymore in the village but wait for harvest time and without higher level of education, availability of media, or facilities that they need, they might be stimulated to move to urban areas.
Due to rural-urban migration, there has been increasing levels of poverty and depopulation in rural areas. This is one of the reasons why the government has seen it as necessary and made it a priority to improve the lives of the people who live in rural areas. Rural development is about enabling people in the rural areas take charge of their destiny. This is through the use and management of the natural resources they are exposed to. This is a process through which people learn over time and they use this knowledge to adapt to the changing world. The purpose of rural development is to improve the lives of people living in the rural areas.
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...