Tag: rural marketing

  • Barriers Faced by Rural Businesses | Different Ways to Sell the Products Made by Villagers

    The article is contributed by Mr. Mahesh Choudhary, Founder & Chairman, Saraswati Global.

    Selling a product is not an easier task. It is an art to convince people to buy their products. While selling the products the buyer has to face barriers, must know about the strategies to sell, and the most significant is to know the differences between selling a product in a rural market and in a global market.

    What is the global market? The goods and services and labor can move freely across the globe. To establish good marketing in the global market a good knowledge of business must be the expertise of the person. Being a good business person we must know how to get consumers hooked with the products. Although it is difficult for all to sell their products and make it a well-known brand. But for villagers it is a demanding practice for them. There are a lot of barriers which they have to face before and during selling their products.

    The Barriers Villagers Face in Selling Their Products

    Reach/Access

    Access is one of the major barriers for the Villagers. It is difficult for the small entrepreneur to reach the consumers, give the information and Sell their products. With the limited electricity and little access to mass media, it is a challenge to reach consumers.

    Transportation

    Rural business people face a lot of lags due to lack of support and services. One of them is transportation. Transportation helps in movement of goods and services which ensure access according to customers, and act as a link between the producers and consumers. Transportation challenge factors include, lack of road maintenance, hike in fuel prices and vehicle services.

    Capital

    Capital, the most mandatory for business, acts as a barrier. The investment, capital amount, and money are significant for the commencement of business. But for rural entrepreneurs, it is the first barrier that they have to face to execute any business idea. Insufficient profit to cover overhead expenses can result from a lack of capital.

    Technology

    Entrepreneurs in urban cities generally use technological methods two manufacture their goods, because it cuts cost and time and gives a complete finish to the goods. But lack of proper knowledge in rural entrepreneurs affects the growth of their entrepreneurship. So they are completely based on labour work and handmade products, which take a lot of time to manufacture.

    Digitalisation

    Along with the lack of technology knowledge, rural entrepreneurs also don’t have a proper understanding of digitalisation which is hitting the global market vigorously. But improper knowledge of digitalisation adversely affects their entrepreneurship development.

    Competition

    One of the key successes to be a good entrepreneur is to beat the competitors in the market. This is the toughest key for the rural entrepreneurs to face existing competitors for their establishment. The existing competitors have good quality of resources and rural competitors lack them.


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    Lack of knowledge creates excessive fuss for rural entrepreneurs. Selling their manufactured products is a challenging task for them. So how can they deal with these? To tackle them rural entrepreneurs need support from NGOs and government as they can help them to promote rural enterprise.

    NGOs can help entrepreneurs by counselling them. By consulting rural entrepreneurs we can get to know resources and the requirements they need for the procedural activities. NGOs can help with their sources by providing them with enough resources to use for their activities.

    Government can help by providing a capital amount to small rural entrepreneurs. So that they could afford the requirements they need. Rural consumers nor rural entrepreneurs are able to operate smartphones which ultimately affects rural entrepreneurs. A counselling program can help them to train in it. Government can also arrange a counselling program to train them in every aspect of entrepreneurship. This can also lead them to digital and technological literacy.

    Lack of support and services can cause no profit in selling the products in the global market.

    Let’s find out the different ways where we can sell the product made by the Villagers.

    Ways to Sell Products Made by Villagers

    Personal Selling

    Face-to-face interaction selling is the best method for the rural marketer. Consumers search for reliable marketers. Here the customers can trust completely because they buy the products with their personal checks. This can lead to gaining trust and the buyers can also become regular consumers.

    Fairs and Exhibitions

    Fairs and exhibitions are like the part of the rural people. This is a great opportunity for entrepreneurs to launch and sell their products. A Lot of people come for entertainment. Through the different entertainment selling methods, consumers can easily attract to watch. With this method sometimes they also get convinced to buy them.

    E-COMMERCE

    E-commerce is on the rise as the trend of online shopping has become a trend in the last few years. E-Commerce is the marketplace where anybody can sell and buy their products. The online platform is not restricted to urban or rural people. Amazon, Flipkart, Etsy, craftvilla, etc are one of the E-Commerce platforms for buying and selling goods and services.


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    Social Media

    Along with e-commerce social media such as Instagram and Facebook are the best marketplace to create, sell and grow a brand. People mostly spend their time on social media. Since these platforms would have a wider reach to consumers.

    Channel Sales

    By channel sales, we know that it is the process of distribution of products to the market. It means the person can sell the product through the collaboration of another company.

  • Hesa – A Startup that Aims to be the Amazon of Rural India

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Hesa.

    The number of internet users in rural India is on a steady rise. In a report published in June 2021 by the Mobile Association of India (IAMAI) and consulting firm Kantar, it was revealed that in 2019-2020, while the internet users increased by 4% in urban India, in rural India, the growth is 13%. However, despite this increasing number of internet users, the majority of the rural population is still deprived of e-commerce and e-banking facilities. While the rural population is comfortable using the internet for entertainment, communication, and for accessing social media platforms,  many village dwellers are yet not comfortable with making online payments. Also, it is not easy for businesses like e-commerce companies and e-banking and financial service providers to deliver their products and services to rural areas due to the lack of infrastructure. Vamsi Udayagiri understood these issues and came up with a solution- HESA. Today HESA is helping thousands of villagers take advantage of not just e-commerce and e-banking facilities but much more. By offering a platform that lets the rural population buy and sell products via e-commerce, Hesa aims to become the Amazon of rural India. Here is the story of the Indian agri-tech startup, HESA.

    Hesa – Company Highlights

    Startup Name Hesa
    Headquarters Telengana, India
    Sector Rural Tech
    Founders Vamsi Udayagiri and Hema Nandiraju
    Founded 2012
    Website hesaglobal.com

    About Hesa
    Hesa – Founders
    Hesa – Startup Story
    Hesa – Mission and Vision
    Hesa – Tagline and Logo
    Hesa – Business Model & Revenue Model
    Hesa – Funding and Investors
    Hesa – Growth & Future Plans

    About Hesa

    HESA is a platform that is all set to revolutionize the lives of rural Indians. This platform serves as a bridge between the rural population of our country and various businesses, Corporates, SMEs, Banks, governments, and NGOs. HESA has a lot to offer. HESA helps e-commerce companies by managing the supply chain at the village level, helps the villagers in accessing e-banking facilities, helps the village farmers sell their agro products, and also helps brands with product promotions and surveys.

    HESA  has a network of on-ground workers known as Hesaathis, who act as the go-to persons who help the villagers access various products and services online. Any individual from the village who has an entrepreneurial mindset and who is tech-savvy enough to use the HESA app is eligible to join HESA as a Hesaathi.  

    Here is a detailed look at the services offered by HESA:

    Villagers can easily access any banking and financial service with the help of the HESA platform. One just needs to visit the Hesaathi ( an 0n-groud HESA worker), who logs into the HESA platform and helps the villagers avail of the required financial solutions. Cash withdrawals, deposits, loans, and insurance, all financial services can be availed online via the HESA app.

    Ecommerce solutions

    HESA serves as a bridge between e-commerce companies and rural customers. It manages the supply chain, promotes the products of its partner brands to the villagers, and conducts consumer surveys on behalf of its partner brands. HESA also offers assisted buying and selling services to rural consumers.

    Agro-Based Solutions

    HESA offers complete solutions to access and transact with the farming community. HESA helps farmers access various information and marketing facilities with the help of technology. Hesaathis help farmers sell their products on various online Agri marketplaces like BigHaat

    NGO & CSR

    HESA makes the rural population more accessible to NGOs and for CSR activities, which helps in the overall development of the rural population and rural economy.


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    Hesa – Founders and Team

    HESA was founded in 2012 by couple entrepreneurs Vamsi Udayagiri and Hema Nandiraju.

    Hesa founders, Vamsi Udayagiri and Hema Nandiraju
    Hesa founders, Vamsi Udayagiri and Hema Nandiraju

    Vamsi Udayagiri

    A mechanical engineer by qualification, Vamsi Udayagiri’s field of expertise includes Supply Chain Management, Sales and Customer Management, Livelihood and Skill Development, and Rural Marketing and Promotion. Vamsi worked with several companies like Ramco Systems, and Entercoms where he handled Sales, Customer Management, and Supply Chain Management. Prior to HESA, Vamsi also co-founded IT startup ‘Riddles n Clues’ in the year 2000, which was sold in 2006. Vamsi always had a love for rural India, which made him start ‘Rural Yellow Times’ in 2010. ‘Rural Yellow Times’ focussed on bridging the demand-supply gap in rural areas. ‘Rural Yellow Times’ was later rebranded as HESA. Vamsi is also the co-founder of ‘Hesa Events’, a full-service sales and marketing agency.

    Hema Nandiraju

    Hesa co-founder Hema Nadiraju has spent years in the rural areas of Telangana dedicating her time to various training and development-related activities.  

    Hesa – Startup Story

    Hesa founder Vamsi Udayagiri had an entrepreneurial mindset, which inspired him to leave his job, and search for his passion. Vamsi had a love for rural India, and he was sure he wanted to do something for the betterment of rural India.  In 2010, after leaving his job as the Regional Manager for Entercoms, Vamsi started exploring the Indian Villages. He visited 4000+ villages across India to understand the rural market and the gaps that existed in the market. After almost 2 years Vamsi was clear that managing the supply chain in the rural areas is what he wanted to do. This led to the starting up of Rural Yellow Times in April 2012. This startup focused on supply chain management in villages. Rural Yellow Times was rebranded as Hesa and new services were included on the platform.


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    Hesa – Mission and Vision

    Hesa’s Mission is ” to be the preferred last-mile rural commerce platform by connecting over 650K villages across India.”

    Hesa envisions to grow into rural India’s largest integrated marketplace and bring about ease of commerce in Indian Villages.

    Hesa’s tagline is, ‘Connecting Bharat Phygitally‘. True to its tagline, Hesa is connecting rural India to the more developed parts of the country both physically with the help of its on-ground workforce, the Hesaathis, and also via the Hesa platform.  

    Hesa Logo
    Hesa Logo

    Hesa – Business Model & Revenue Model

    The Hesa platform has a plethora of offerings. One can buy and sell products, pay bills, and avail of financial services. Hesa also conducts promotional activities and surveys for its partner brands. As it has multiple services to offer, Hesa has multiple sources of revenue. The platform mostly earns revenue from all the transactions that happen through the platform like buying, selling, bill payment, etc. Hesa also makes money from the on-ground activities like promotions, surveys, etc. that it does for its clients.

    Hesa – Funding and Investors

    Hesa raised total funding worth $4 Million in over 4 funding rounds. Below are Hesa Funding details

    Date Stage Amount Leading Investors
    December,2021 Seed $1.5 Million Venture Catalysts
    October,2021 Grant $450k NABARD
    July,2021 Seed Thirteen Initiatives
    June,2021 Seed $2 Million Venture Catalysts


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    Hesa – Growth & Future Plans

    Hesa is doing a meaningful job, and hence is receiving a good response in the villages it is operating in. Currently, Hesa is offering its services in 11 districts in the 4 states of Andhra Pradesh, Telengana, Karnataka & Maharashtra. As per the website, more than 17 lakh rural consumers have availed of Hesa’s services/products to date, and over 30,000 Hesaathis are associated with the platfrom, of which a sizeable chunk is women.

    With 65+ B2B partnerships across industries and sectors, Hesa has a lot to offer to the rural population. Hesa’s partner brands include well-known ones like Himalaya, P&G, Mahindra, Reliance General Insurance, HDFC Life, and Wipro.

    As of December 2020, Hesa reported Rs 22 crore revenue (Rs 75 crore GMV).

    Hesa’s efforts toward the improvement of the lives of rural people are also being recognized. In March 2021, Hesa won the ‘Road to Elevate Competition’ held by IIT Madras’ Entrepreneurship Cell, among 200+ startups. In 2021 itself, Hesa was also judged to be among the Top 5 Startups among 1000+ national and international startups at the Innopreneurs Startup Contest.

    Just making revenue is not what Hesa aims at, and the startup has really given back to society. Amidst Covid 19 crisis, Hesa provided employment opportunities to many  who have lost their jobs, under its #savinglivelihood initiative

    From Delivering ration kits to ensuring that the villagers get the benefit of the Central and State Government announced Covid Insurance, Hesaathis have taken lots of responsibilities during the crisis. As revealed by the founders, Hesaathis have been selling over 4000 Covid insurance policies every month.

    Hesa also helped farmers in small villages in selling their products during the Lockdown. “Farmers in small villages have not been able to sell their produce due to lockdown restrictions. Hesa has helped in reselling produce such as onion, ginger, potatoes, paddy worth Rs 7-8 lakh,” says Vamsi,

    The startup also helped many rural customers with vaccine registration.

    Hesa aims to reach 50,000 villages by 2023, thereby impacting 50,000 + rural livelihoods. The company is looking forward to achieving over Rs 2000 Crore in GMV by 2022.  

    Hesa – FAQs

    What is Hesa Global?

    Hesa Global is a platform that connects the rural population with the Government, NGOs, and brands. Hesa has partnered with various brands, NGOs, and Government bodies, and the rural population can avail of the products and services of these partner organizations via the Hesa app. From accessing financial services to buying and selling products, Hesa empowers the less tech-savvy village population to take advantage of all online facilities. Besides Hesa also helps brands, Government bodies, and NGOs reach out to the rural population.

    What is Hesa App?

    The Hesa App helps businesses, NGOs, Government bodies, and financial institutions reach out to the rural population for buying, selling, promotion, or for social causes. Hesa’s ground work force called Hesaathis also uses the Hesa App for helping the less tech-savvy rural population for buying and selling goods online, and for accessing various products and services online.

    Who is the founder of Hesa?

    Couple entrepreneurs Vamsi Udayagiri and Hema Nandiraju, are the founders of Hesa.

  • How To Do Marketing In Remote Areas? | Rural Marketing

    The emergence of Rural and Remote areas into marketing is untapped potential and so there’s an emphasis on the need to explore them. Marketers over the past few decades, with innovative approaches, have attempted to understand and give opportunities to rural markets. Rural marketing is an evolving concept, and as a part of any economy, has untapped potential; marketers have realized the opportunity recently.

    The rural population has shown a trend of moving to a state of gradual urbanization in terms of exposure, habits, lifestyles, and lastly, consumption patterns of goods and services. Rural per capita consumption expenditure grew by 11.5 percent while the urban expenditure grew by 9.6 percent.

    What is Rural Marketing?
    4A Model To Rural Marketing
    Strategies To Run A Business In Remote/ Rural Areas

    What is Rural Marketing?

    Rural marketing is a process of developing, pricing, promoting, and distributing rural specific goods and services leading to the desired exchange with rural customers to satisfy their needs and wants, and also to achieve organizational objectives. The concept of Rural Marketing in India Economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets.

    Market in remote areas
    Rural Marketing 

    The rural market in India generates bigger revenues in the country as the rural regions comprise of the maximum consumers in this country. The rural market in the Indian economy generates almost more than half of the country’s income. Rural marketing in the Indian economy can be classified under two broad categories. These are:

    Rural Marketing in India Economy covers two broad sections
    1. Selling of agricultural products in the urban areas
    2. Selling of manufactured products in the rural regions

    There’s a simple 4A model to streamline rural business is total customer-oriented. And if implemented, then your own rural business could skyrocket. The 4A’s are Affordability, Availability, Awareness, and Acceptability.

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    4A Model To Rural Marketing

    There’s a simple 4A model to streamline rural business is totally customer-oriented. And if implemented, then your own rural business could skyrocket. The 4A’s are Affordability, Availability, Awareness, and Acceptability.

    1. Affordability

    The design of the product should match the needs of the customer. The Customer should not think that they cannot buy it, which means it should be in their buying capacity.

    2. Availability

    The greatest problem in the rural market is to reach the customer or retailer. It’s the logistics way to make the product available there.

    3. Awareness

    The Awareness program should be in such a manner that it should reach the customers’ mindset. The only way of reaching the customer is through the commercials on media like TV, Radio, and banners.

    4. Acceptability

    The customer should think that they can buy the product by putting extra money on that. They should feel that the product is designed as per their needs and it should deliver a great solution to the customer.

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    Here are ways in which you can overcome these challenges and run a successful business in remote areas

    Strategies To Run A Business In Remote/ Rural Areas

    1. Conduct Market Research

    This is the most important factor in a business in a remote area. You need to understand the target customer base for your product. Get to know the income levels of the communities residing, the purchasing power of the basic family in that community, their needs, and how much they would be willing to spend for that product. This will not only help you identify your prospective customers but their characteristics too, such as age groups and social class among else. Also, have a look at what grants you could get in a rural area.

    Promote small business in remote areas
    Promote small business in remote areas

    2. Gain the Trust of the Local Community

    Urban businesses are usually profit-centered and there’s no need for extra hard work like what’s needed in remote businesses because they are community-centered. If you want to achieve long-term success in a rural area, then you need to earn the trust of the people around you. Establish a long-term relationship by providing consistent, efficient, reliable, and cost-effective products. And if the community is satisfied with your services then, you will be able to retain existing customers and attract prospective ones.

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    3. Develop Appropriate Distribution Channels

    The success of any business totally depends on the product or service reaching the intended customer base. It i often difficult to access them. What you can do is, you can develop a multilayer distribution channel where you have sub-distributors at different points. You can also have a delivery van to take the product to the customers’ doorsteps. To ensure you have excellent communication with your retailers and always ensure, the product is always available to the customers.

    Distribution channels through supply chains
    Distribution channels through supply chains

    4. Use Rural Marketing Strategies

    Businesses in remote areas need marketing strategies tailored to rural areas. One of the best marketing strategies for rural area business is to identify and develop rural talent into the business. They are always in a better position to understand the mindset of their people and then you can work with them easily. Locals are also likely to embrace business that gives opportunities to their own community. There is no better strategy for a remote business than training and promoting a local up among the ranks. You can also use the services of local influencers and opinion leaders to market the business.

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    5. Proper Inventory Management

    Inventory management will help the business have a clear vision of how best they can cater to the needs of their customers, where they are doing and where they need to improve, and whether their marketing strategies are working or not. This sort of inventory helps keep a regular update of which products are moving and which ones are slow, and how the different categories of customers are responding to the different products.

    How to market and build a business in rural araes?
    How to market and build a business in rural araes?

    6. Have a Corporate Social Responsibility

    Corporate social responsibility is a way of your business, to give back to the community. To gain strength, participate in the development of communal infrastructure and facilities such as the construction of dispensaries, environmental conservation efforts, and giving scholarships to needy students. You can also organize workshops for the unemployed rural youth or uneducated youth to equip them with job skills even if they won’t be absorbed by the business. This will go a long way in helping the business integrate into the community and gain acceptance everywhere.

    Farm Market in rural areas: MANDI
    Farm Market in rural areas: MANDI

    The concept of rural marketing in India is often been found to forms ambiguity in the mind of people who think rural marketing is all about agricultural marketing. However, rural marketing determines the carrying out of business activities bringing in the flow of goods from urban sectors to the rural regions of the country as well as the marketing of various products manufactured by the non-agricultural workers from rural to urban areas.

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    The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioral factors operating in the country.

    If you analyze, it’s quite easy to market your rural business and it becomes super easy if you perceive a customer-oriented approach.