Page 244 - DMGT509_RURAL MARKETING

Unit 12: Principle of Innovation

The overall average price received was 92.26/kg. The price offered by USA was quite Notes
low ( 51.33/kg). The quality of cut flowers exported was 8295 MT valued at 51.04 crores.
They were exported to in all 55 countries but the major export markets were USA sharing
35.25% exports followed by Japan (27.98%), Netherlands (9.50%), Germany (5.41%), U.K
(4.91%) and so on. These five countries shared about 83% of total exports. Thus, the exports
to different countries are unevenly spread. Unit values or prices received varied from
26/kg by Japan to 137.38 by Germany. The overall average unit value received was
61.52/kg. There was a very wide difference in the prices received from different importing
countries. Although USA and Japan imported the largest quantities, they offered low
prices.
Question

Since flowers are perishable products and mostly unbranded, suggest ways of ensuring
export growth as the demand is going to increase in time.

12.10 Summary

 As the competition increases in the rural market there might be the need for competitively
priced products that are developed as per the needs of the rural consumers.
 Product development must start from a deep understanding of functionality, not just
form.
 Conserving resources is the mantra; the product meant for rural market must eliminate or
reduce.

 One of the key issues taken up by the NGOs is the creation of micro business enterprises,
especially in rural areas.

 Another major trend is for NGOs to enter into and seek partnerships with business as a
way both to tap into business resources and skills and to influence practice in the private
sector.
 Coffee is an example of a product market where NGO involvement has been extensive
and has taken a number of forms.

 Traidcraft Exchange always operates through a local entity or NGO.
 Traidcraft’s work has enabled the Fair Trade Labelling Organisation (FLO) to develop
standards for the cotton sector.

 NGOs need to work with producers to encourage them to negotiate with government and
business themselves and set the negotiation platforms and campaign agenda.
 NGO staff need to learn how to deal with a new set of actors in the form of the private
sector.

12.11 Keywords

Price Innovation: Conserving resources is the mantra; the product meant for rural market must
eliminate or reduce, the various recurring costs and thus should reduce resource intensity. The
option of reuse, refill and recycle are critical principles in product development for rural market
as they reduce the overall cost of the product.
Process Innovation: Process innovations are critical in rural markets. Innovation must focus on
building a logistics infrastructure, including manufacturing that is in accordance with the
prevailing conditions and can deliver solutions in a cost effective manner.

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