Scope of Rural Marketing

By:Sweta Anmulwa
(Amity Inst.NGO
Management)
 What is Rural area?
• Government agencies like IRDA (Insurance
Regulatory and Development Agency and
NCAER (National Council for applied Economic
Research) define Rural as :
Village with a population <5000
with 75% male population
engaged in agriculture etc.
population density <400 sq km
Market
 What is Rural Marketing?
Developing of the market in the area as defined as Rural
hence it could be aptly said that it encompasses the
activities such as developing the process to meet this objective :

 Right product at the right price to the right people at the right time.
 Exchange between rural and Urban is a factor .
Could be Urban to Rural: Rural to Urban, Rural to Rural
 Size of the market

Largely Untapped

Too crowded Urban Market

Reasons Income on the
for rise/disposable income
Going Income from other than
Rural agriculture
Income flow from urban
/abroad
Better exposure - media

Great success stories

HLL 50%
Colgate 50%
LG 50%
“India lives in villages”- Asian Paints 60%
Mahatma Gandhi Dabur
Videocon
40%
40%
Cadbury’s 25%
 Potencial of Rural Market
About 285 million reside in urban India as compared to 742 million in
rural India.

The number of middle income and high-income household in rural

India has grown from 80 million to 111 million while urban India has
grown from 46 million to 59 million.

53 per cent of all FMCGs and 59 per cent of all consumer durables are
sold in rural India.

Rural marketing involves addressing around 700 million potential

consumers, over 40 per cent of the Indian middle-class, and about half
the country's disposable income.

The Indian rural market is almost twice as large as the entire market
of USA or Russia.

The rural market for FMCG is Rs. 65,000 crore, for durables Rs. 5,000
crore, for tractors and agri-inputs Rs. 45,000 crore and two- and four-
wheelers, Rs. 8,000 crore. In total, a whopping Rs. 1,23,000 crore.
Move to Rural Market …encouraging Data
Rural India buys
Soft Drinks approx 45% of all soft drinks
Almost 50% motor cycles
Approx 55% of cigarettes
Half the total market for TV,
Fans,
pressure cooker,
bicycles
Washing soap,
tea,
blades,
salt,
toothpowder

Coca Cola is growing over 35% in Rural areas compared to Over 22 %

Urban

According to Hasna Research , a market research farm that

Has published a Guide to Indian Markets 2006
Consumer durables in Indian Villages risen sharply
TV Sales up by 200%
Motorcycle by 77%
 Low per capita
income
Low disposable income

Inadequate fixed income

(daily wages)

Majority – depends on Agricultural

Income
Acute dependence on monsoon
Consumption linked to harvest
PROBLEMS
IN
RURAL Infrastructure problems
MARKETING Roads, power

Low awareness

Communication- difficult & expensive

Too many
languages
Geographic Spread
Urban & Rural
Markets
Key Differences

 Per capita Income

 Disposable Income

 Literacy levels

 Infrastructure

 Communication

 Geographical Spread

 Customer has many choices

 Awareness
Key

Challenges
Mantra
Affordability of SUCCES
Availability
4A
Acceptability

4 Ps 4 As

Promotion Awareness

Price Affordable

Product Acceptable

Place Available
 DEVELOPMENTAL MARKETING
Developmental marketing is a process through which
awareness is created

could be demonstration
could be presentation
Free samples
could be through up eg tie up with Bank
tie up with Petrol/Diesel pumps
(Hyndai did with IOC and PNB and SBI subsidiaries
>30% sale of Hyndai from Rural/Semi Urban areas)

Awareness
Colgate – program
Operation Jagruti
Trial Switch from Charcoal
to Colgate tooth
Purchase powder
HLL - Free
samples of Lifebuoy
Post-Purchase Satisfaction Cavin Kare – Free
sample of Chik
Champoo
About Rural Marketing…
PROFILE OF RURAL MARKET

RURAL CONSUMER

RURAL MARKET RESEARCH

RURAL SEGMENTATION –TARGETING &

POSITIONING

RURAL MARKETING STRATEGY

RURAL PRODUCT

RURAL PRICE

RURAL DISTRIBUTION
 CONCLUSION
• Rural India offers tremendous opportunity for any
company to tap.

• Companies face many challenges in tackling the rural

markets.

• Important factors being an understanding of the rural

customers' needs, a reliable distribution channel, and
an effective marketing communication strategy to put
their message across to the rural consumer

• The Mantra(four As)