Book Review- Rural & Social Marketing

In this post, I am going to review a book named 'Tapping Rural Markets-Concepts and
Cases edited by Mr. V V Gopal (an IMT-Ghaziabad alumnus) and published by ICFAI
University Press in 2005. It`s a tad lengthy but I am sure you will enjoy reading it.

The book provides a broad view oI the rural market scenario in India as of 2005 and discusses
the opportunities and challenges Iaced by marketers who venture into the arena. It is divided into
two sections- Concepts and Cases, wherein the concepts oI rural marketing and innovations and
initiatives oI leading consumer goods companies like ITC, Coca-Cola, HUL and LG are
dicusses in detail.

Section 1: Concepts

1. Innovations in rural India- 1ayatri Dasgupta

Being the source oI livelihood Ior close to two-thirds (around 65 ) oI the country`s population,
rural India holds great potential Ior development. This article investigates why rural economy did
not develop much in spite oI the wide scope that agriculture and non-Iarming rural activities
oIIered. Large-scale exploitation by private traders and middlemen and the lack oI inIormation
dissemination to Iarmers on various important issues were identiIied as serious obstacles Ior
rural development. Dasgupta highlights the success story oI the cooperative movement in dairy
production pioneered by AMUL. The setting up oI agri-portals to open up inIormation channels,
distribution and procurement networks is also Iocused upon.

2. Understanding Rural Marketing- V V Gopal

Spotting the exciting opportunities oI the rural markets, marketers are drawing elaborate plans to
tap them. However, rural marketing is still at an embryonic stage. This article analyzes the
reasons behind the scenario. It discusses various strategies adopted by marketers to inIluence the
decision-making process and the buying behavoiour oI the rural customer. CavinKare chik
shampoo in 50 paise sachets and Coke Rs. 5 per bottle are just a Iew oI the marketing strategies
Iormulated by big marketers targeting the rural customers. The authoralso lays emphasis on the
role oI communication in promoting rural sales. He Iurther opines that communicating in the
local language captures the rural shoppers mind share as well as heart share resulting in the
capture oI wallet share.


3. 2erging Face of Rural Markets - Purba Basu

The rise oI the rural markets has been the most important marketing phenomenon in the nineties.
Leading consumer goods companies ventured into this segment the colume oI growth it likely
was going to oIIer. The article narrates how mass media have come in handy Ior FMCG
companies to promote their products in rural markets. Various strategies adopted byu the
retailers to attract the consumer. The need Ior product availability, enhancing awareness and
increasing the buying power oI the rural customers is emphasized in this article. The article also
explains that product availability can aIIect decision oI brand choice, volumes and market share.
Creating awareness through advertisements, which touch the emotions oI the rural consumers
can drive a quantum jump in sales. Marketers are concentrating on tapping the untapped buyers
which have tremendous purchasing power.



4. Tapping India`s Rural Market - Sara Huh2ann

The open sale oI Ioreign consumer products in India commenced during post liberalization
period. Multinational companies view India as a market with great potential and opportunities Ior
growth and promotion. This article addresses various issues relating to rural marketing such as
understanding rural market Iormulating the strategies to be adopted to penetrate into segment and
understanding the types oI products and packages the rural consumers use. The buying behaviour
oI rural India revolves around the concept oI earn today and spend tomorrow. Marketers are
taking into account the low disposable incomes oI the consumers and are coming up with unique
packaging Ior such consumers such as sachets`, priced at aIIordable level.

5. For a Brand New Rural India - Harish Bijoor

This article Iocuses on the challenges oI marketing in rural India, which is multi- cultural, multi-
Iaceted and populous. It diIIerentiates rural India (real India) Irom urban India (Virtual India).
The author opines that real India is today run by virtual India. It is moving very Iast in the
direction oI the needs, aspirations, desires discovered by the man in rural India. Marketers have
to adopt one oI the two ways top create brand Ior the rural shopper either the insensitive way or
a sensitive way. Taking the urban brand and lowering the price, extending the brand to low unit
packs etc constitute th einsensitive way. The sensitive way is all about taking the rough route oI
branding in the rural market while at the same time preserving rural India. The article suggest
ways by which marketers can preserve the rural terrain but still create brands that are relevant to
the needs oI the rural man. It emphasizes the need to preserve the sanctity oI the rural India.

6. Rural Pro2ise - Sravanthi Challapalli

This article presents the distinct Ieatures oI the rural markets and details how it is diIIerent Irom
its urban counterpart. Rural Indians are keen to buy small packs. They are price and product
conscious. They cling on to particular brand. In contrast to what is generally believed, disposable
income in this segment is not low. The author opines that the yardstick applied to study urban
India could provide pointers to rural India als0. Statistics show that rural India is rapidly moving
Irom poverty to propensity opening the doors Ior marketers.

7. Rural Marketing is a Different Ballga2e - Deepak Halan

When it comes to non-urban shoppers the marketing strategies Iormulated should be diIIerent
Irom those that aim at their urban counterparts. This article narrates why establishing a rapport
with rural consumers is important and discuss the research methodology that needs to be
Iollowed when catering to their needs. The author opines that identiIying region-speciIic media,
melas, developing regional messages and demonstrations Iacilitate the process oI creating brand
awareness among the rural Iolk. This article emphasizes that besides pIIering products that
specially cater to the needs oI rural consumers, marketers need to understand that capturing rural
markets involves Iocusing on low priced products.

8. Strategies for Rural Markets - T Sarathy and R Laksh2i Narayanan

The expanding rural markets are vital Ior the growth oI many companies. Hindustan Uni Lever
Ltd (HUL) is one among them. This article deals with various aspects relating to rural marketing
in rural India, important among them being the market potential, rural reach and the budget
allotment. Having understood the changing dynamics oI the Indian market scenario and realizing
that the rural consumer is now in a position to dictate terms, corporates are allocating a
signiIicant part oI their budget to the rural markets. This article discusses the role oI IT in this
segment with reIerence to e-Choupal by ITC. Lack oI inIrastructure, low literacy levels and
uncertain income oI the rural consumers are some oI the major challenges Iaced by the rural
marketers.

Section II : Cases

1. ITC - M Rajshekar and Indrajit Gupta

This details the initiatives taken by this company to capture rural markets. Choupal Sagar is the
Iirst rural mall set up by the company. The outlet has an oIIer every commodity Irom
toothpastes to televisions, hair oils to motorcycles, shirts to Iertilizers and many more. With its
network oI e-choupals, ITC gets in touch with the Iarmers through the Internet or VSAT lines
and thus communicates the latest commodity prices. In case the Iarmers Iind these prices
attractive, they sell their products to ITC. ITC has ushered in an inIormation revolution catalyzed
by choupals. The company is planning to set up a bank, caIeteria, an insurance oIIice and a
learning center to ensure that Iarmers visit Chaupal Sagar at all times, unlike the present
situation, wherein they come only aIter harvest. ITC, with all present situation, wherein they
come only aIter harvest. ITC with all its initiatives, succeeded in gauging rural consumers buying
patterns.

2. Coca- Cola - K Subhadra

This details about the marketing strategy adopted by coca-cola to capture the rural market. The
company proposed a strategy based on 3 A`s Availability, AIIordability and Acceptability. It
adopted a hub and spoke distribution model to make coke available to rural consumers. Coke
was transported to the hub Irom bottling plants and through them to the spokes in small towns.
Coca-Cola launched a 200 ml Chota Coke` at a price aIIordable by rural consumers. The
company ensured through its tv commercials and hoardings that consumers received and
accepted them well. The case also presents the Iuture plans oI the company in penetrating Iurther
into rural markets.

3. LG - Dakshi Mohanty and T Phani Madhav

This traces the history oI LG`s entry into India and examines its rural marketing initiatives.
Though it had a presence in the Indian market since a Iew decades, LG Iocussed on rural
marketing only Irom 2002. LG advertised its products all through the year. It also gave them an
option oI online shopping. As a unique marketing strategy, LG oIIered oIIices in the semi-urban
and rural areas, known as central area oIIices (CAO) and remote area oIIices (RAO), which not
only acted as sales oIIices but were also proIit centers with decision making authority. The case
details how LG succedded in its ventures by way oI introducing a series oI economy range
products such as CinePlus along with Sampoorna CTVs and IrostIree reIrigerators. Through its
novel strategy, 'DiIIerent models, diIIerent channel, LG operated into rural markets
successIully.

4. S - Ree2a Nanavaty

SEWA (SelI-Employed Women`s Association) is a member based organization, which assists
rural women producers realize the maximum Iinancial beneIits Irom their products and services.
Out oI its 1,67,000 members 1,01,000 are rural members. This article illustrates the measures
taken up by SEWA to upliIt the rural women who mostly come Irom the drought prone areas
where their ability to produce goods Ior consumption and sale is severely aIIected by various
Iactors including water shortages, etc. its strategy Iocuses on assisting rural women to bargain Ior
better prices Irom middlemen, identiIying the needs oI the community and design programs that
go hand-in-hand with the exiating government programs. SEWA also proposes to continuously
invest in regular market surveys and market based research activities.

5. Hindustan Unilever Li2ited - N Gayatridevi

Project streamline is a rural distribution model Ior Hindustan Unilever Ltd. Owing the invasion
oI television, consumer awareness in rural India has increased. HUL is among companies that
took rural marketing seriously. Having experienced a bitter loss in its business oI toilet soaps,
toothpastes, HUL realized that the Iuture lay in tapping the enormous rural population. It then
ventured into the rural markets with an intention to promote its products in the rural areas.
Project Streamline was launched by the company with an objective to have an control over the
rural distribution and thereby to increase the rural penetration. Then HUL went on to initiate
'Project Shakti to address the drawbacks oI the project streamline, with an objective to respond
to the buying behaviour oI the rural consumers. It Iacilitated the reach and distribution process oI
the company. It also explains the marketshare and price oI the product.

6. CavinKare - Gouri Shukla

Having understood the needs ad buying pattern oI the rural consumers, CavinKare came up with
an unique idea oI selling its shampoo in 'sachets. The case illustrates how the company
unshered in a revolution in consumer products through 'Chik shampoo in low priced sachets.
This Iilled the need gap in rural markets. The price sensitive rural consumer did not mind
spending Re. 1 Ior a shampoo hair wash. The case then details CavinKare in order to consolidate
its position went on to sell shampoos at 50 paise, and also launched a single use perIume at Rs. 2.