Rural India

Importance of Rural Marketing:

-Times of India, 1st January 2009, Page 11
2009 could also be the breakout year for 70% of people in village India. Reforms driven by the UPA regime have boosted rural growth to 3.5% each year for the last four years; the average for the previous five years was 2%. This near doubling of growth has had a dramatic impact. At 56 million, Bharat has more families earning over $2,000 each year than urban India, at 51 million.

Surprised? Not so for folks at companies like Jain Irrigation, Hindustan Unilever, Marico and Bharti, whove seen rural sales shoot up. From April to October, the sales growth of lotions, creams, candies, toothpaste and hair oil in Bharat was at least double that of urban markets. In villages, candy sales have grown over six times as fast as those in cities. If the government continues pushing infrastructure and farm reforms, growth sceptics might be surprised by the numbers that come next year

Problems faced by rural Consumers:

Electricity and water shortage Poor transportation availability Low literacy rates Low per capita disposable income Unavailability of proper finance options Dependence on vagaries of monsoon Seasonal consumption linked to harvests

The 4A Approach for the Rural Market

Availability Affordability Acceptability Awareness

What Some firms are doing?

LG developed a customised TV for the rural market Sampoorna Coca-Cola provides low-cost ice boxes to keep soft drinks chilled HUL has introduced Mobile Traders ITC has opened e-choupals and Choupal Sagars Mahindra Finance plans to partner with General Motors and Hyundai to provide finance schemes for their vehicles in the rural and semi-urban markets.

Promotional Activities in Rural Areas: