Chapter-23

Rural and Holistic Marketing

Rural Marketing?

• function which manages

• all those activities involved in
• assessing,
• stimulating and
• converting the purchasing power
• into an effective demand for specific products and services, and
• moving them to the people in rural area to create satisfaction and a
standard of living to them and
• thereby achieves the goals of the organization.
 Attractiveness of rural market
Rural markets have become the new targets to corporate enterprises
for two reasons :

1. Urban market has become congested with too many competitors.

2. The market have reached a near saturation point.
Various factors which have made rule markets
viable:-
1. Large population
2. Raising prosperity
3. Growth in consumption
4. Life-style changes
5. Life-cycle advantages
6. Market growth rates higher than urban
7. Rural marketing is not expensive
8. Remoteness is no longer a problem
• In 1998 HuL’s personal products unit initiated Project Bharat, the first and
largest rural home-to-home operation to have ever been prepared by any
company.
• The project covered 13 million rural households by the end of 1999.

• During the course of operation, HuL had vans visiting villages across the
country distributing sample packs comprising a low-unit-price pack each of
shampoo, talcum powder, toothpaste and skin cream priced at Rs. 15. This
was to create awareness of the company’s product categories and of the
affordability of the products.
Khaitan fans' ad on a horse cart
• The greatest challenge for advertisers and marketers continues to be in
finding the right mix that will have a pan-Indian rural appeal.

• Coca Cola, with their Aamir Khan ad campaign succeeded in

providing just that.
"Yaara da Tashan...” ads with Aamir Khan
created universal appeal for Coca Cola
• "Yaara da Tashan..." ads with Aamir Khan created universal
appeal for Coca Cola

• Coca-Cola India tapped the rural market in a big way when it

introduced bottles priced at Rs 5 and backed it with the Aamir Khan
ads.
• For HLL, a one rupee or a five rupee helps in giving the consumers a
trial opportunity.
• Amul is another case in point of aggressive rural marketing.

• Some of the other corporates that are slowly making headway in this
area are Coca Cola India, Colgate, Eveready Batteries, LG Electronics,
Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and
Hero Honda to name a few.
• Interestingly, the rural market is growing at a far greater speed than its
urban counterpart.

• The share of FMCG products in rural markets is 53 per cent, durables

boasts of 59 per cent market share.
Satellite dish antennas reach rural India
In 2000, ITC took an initiative to develop
direct contact with farmers who lived in far-
flung villages in Madhya Pradesh. ITC's E-
choupal was the result of this initiative.
Socially Responsible Marketing
Corporate Social Responsibility
Corporate Social Responsibility
• Legal behavior
• Ethical behavior
• Social responsibility behavior & socially responsible business models
• Sustainability & greenwashing
Cause-Related Marketing
• Links the firm’s contributions toward a designated cause to
customers’ engaging directly or indirectly in revenue-producing
transactions with the firm
• Is part of corporate societal marketing (CSM)
Cause-Related Marketing

Builds brand Enhances

awareness brand image

Establishes
Elicits brand brand
engagement credibility

Creates brand Evokes brand

community feelings
Social Marketing
• Social marketing by nonprofits or government organizations furthers
a cause
Social Marketing
Holistic Marketing
• CRM • PR marketing
• PRM • Brand-building &
• Database marketing & brand-asset
data mining management
• Contact center • Experiential marketing
management & • Integrated marketing
telemarketing communications
• Digital marketing & • Profitability analysis
social media