A REPORT ON “To analyze the marketing of consumer products (both durable and non durable products) in rural areas”

A Dissertation report submitted to ASIA-PACIFIC INSTITUTE OF MANAGEMENT STUDIES, Towards partial fulfillment of the Post Graduate Program in Management

Submitted To: Prof. Rajesh Verma Submitted By: Ram Niwas Program: PGPM Roll No.: 2K8/PGPM/H-46 2008-2010


I consider my proud privilege to express deep sense of gratitude to Mr. Rajesh Verma for his admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. I would also like to thank my father Mr. Panna Lal , for their inspiration and moral support received in completing this work as for collecting the data I had to visit so many rural areas or villages.





. out of five lakhs villages in India only one lakh have been tapped so far. Despite. Further to ensure the sustainability of the marketing mix two Es i. Nearly two-thirds of all middle-income households in the country are in rural India and represents half of India’s buying potential. 1926 Marketing in developing countries like India have often been borrowed from the western world. Consumer behavior process. Customer relationship management. Retailer as special focus areas. 4 Ps of the marketing mix. Packaging and 1R i. Consider the market..... the strong potential the rural markets are by and large less exploited. Education and Empowerment have to be at the core as they help in generating widespread participation from the rural clientele by enhancing their standard of living. targeting and positioning etc... Segmentation... as the consumer would not be .. often with minimal success. The focus is on its modification and subsequent customization to Indian rural markets perspective. India lives in her seven hundred thousand villages. Reason lies not in the fault of such concepts. The Products in the rural market should essentially operate at the basic and expected level of product classification...India’s way is not Europe’s. there has to be a change in the way marketing concepts learnt in B-schools with adequate adoption according to scenarios prevalent in rural India.e. They should essentially meet the basic needs of the consumer and should be a no-frill product.. have often been lifted straight from the marketing intelligentsia abroad and adopted in Indian conditions...Mahatma Gandhi. India is not Calcutta and Bombay.. According to us if the rural market has to be adequately tapped.e... but their integration with the Indian ethos and culture... Concepts like Brand identity. The 4Ps have to be modified to include 1P i. The rural India offers a tremendous market potential.e. The paper thereby present the modified version of Philip Kotler’s famous marketing mix consisting of 4Ps.

At the same time the importance of retailer has to be recognized where he is one of the most major influencer is customer’s decision making process. NGOs network. Also the existing distribution would need a transformation to achieve the required penetration levels as success of Project Streamline of HLL has shown. Thus overall either the product or communication or preferably both need to be customized to target the rural customer. fitting the consumer needs into an affordable price point is pursued first and then other features of product are fitted in. He acts as the friend and guide in this process and hence. In order to bridge the gap between Philip Kotler and countryside Indian what is needed the appreciation of unique features of rural India and thus. Companies also face a daunting task in communicating about their products to the consumer due to lack of literacy and failure of traditional media to penetrate in the rural households. Since. Hence. In terms of physical distribution due to lack of infrastructure the costs are very exorbitant to reach the rural customer. Demonstration. For achieving the desired results of capturing the rural customer a comprehensive approach to the traditional marketing concepts has to be taken. responding to them by making adequate improvements in the application of the marketing concepts learnt in the class. the advertising mix has to be more towards nonconventional yet effective medium like Puppetry. the value for money concept is more important rural customers. Posters. there has to be an approach of treating customer as budget seeking consumer. etc. Thus. needs to be managed effectively through promotion programmes and incentives to promote the brand of a company. Similarly. Folk Theater Song. Agricultural Games. Here.valuing much any further addition to the product concept. mediums like rural marketing vehicles and melas and haats provide better opportunities to meet customer needs. packaging has to meet customer needs of better brand recall and introducing favorable price points. This marketing mix has . Wall Painting.

Similarly in case of any research study undertaken. . They are to: • Present a rural marketing perspective. • Present a profile of Indian Rural market. A research study may have many objectives but all these objectives revolve around one major objective which is the focus of the study.to be responsive to customers needs and fit into his life as a tool of self-enhancement. the focus is on the emergence of rural markets as the most happening market on which every marketer has an eye. initially the objectives of the same are determined and accordingly the further steps are taken on. The following objectives have been set forth. To be successful the concept of marketing has to be taken in conjunction with its economic. • Study and analyze the consumer behavior in rural areas. The main objective of the study is to analyze and present the marketing of consumer products in rural areas. And so this study will be based on studying the emergence of rural market in various contexts. RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY: Any task without sound objectives is like Tree without roots. In this study. psychological and social implications.

• Analyze marketing of consumer product in rural markets. • Present marketing strategy frame for marketing consumer products in rural areas. School students 4.• Examine the product and brand penetration in rural markets. detergents. coffee. SCOPE OF THE STUDY: The study is restricted to selected districts of Haryana. Further. Data collection Sample unit: 1. College students 3. shampoo) and from durable category (a wrist watch. fan and bicycle). basically farmers. refrigerator. Senior citizen . the study analyzes products from non durable category (a bathing soap. Working people (including men &women). As regards marketing of consumer products in rural areas. 2. product and brand penetration is examined. tea. television.

1. Senior citizens: 16% I have selected. of Haryana as the area of study. Also technical jargons are avoided to ensure that there is no confusion for respondents. Primary data: Questionnaire As the questionnaire is self administrated one. College students: 29% 3.Sample size: 1. the survey is design: kept simple and user friendly.Poharka . which is given as follows: • • Sampling region: Area Population Chilkani Dhab 3500 Kumthala 4000 Poharka 8000 Bhuratwala 7600 Data collection method: it will be collected with the help of a self administered questionnaire. Chilkani Dhab and Kumthala as areas of research. This questionnaire aims to gather information related to various Branded products. . School students: 23% 4. I have chosen Bhuratwala. Working people: 32% 2. The population status of these areas can be shown in a tabulated manner. Words Used in questionnaire are readily understandable to all respondent.

She takes into consideration the study of National Council for Applied Economic Research (NCAER). magazines. Secondary data: Review of Literature Rural market is one of the best opportunities for the FMCG sector. 1. Basu Purba (2004) suggested that the lifestyle of rural consumers is changing. . different strategies of HUL and Marico etc. journals.it will be collected with the help of books. In some sense we can say that rural market is future of FMCG. Internet.According to the NCAER Projections. research papers. Thus. the number of middle and high-income households in rural area is expected to grow from 140 million to 190 million by 2007. news papers. etc. Coco Cola’s 200mlbottle. 2. the same is expected to grow from 65 million to 79 million. She added the strategies of different FMCG companies for capturing rural market like Titan’s Sonata watches.In urban India. the absolute size of rural India is expected to be double that of urban India. Rural Indian market and the marketing strategy have become the latest marketing buzzword for most of the FMCG majors.

which has enjoyed a century-long presence in India through its subsidiary Hindustan Lever Ltd. M. MA. Saiganesh(MBA. . Rural health . Rural infrastructure has to be improved. be it on the farm or in the non-farm economy. Britannia with its low priced Tiger brand biscuits has become some of the success story in rural marketing. Rajendhiran(MBA. Rural incomes have to be increased. It was Hindustan Lever that several years ago popularized the idea of selling its products in tiny packages. Dr. where people can live in well-equipped villages and commute easily to work. Tognatta Pradeep (2003). The model is of the stolid Anglo-Dutch conglomerate Unilever Group. industrial and services economy co-existing side by side.5%in the industrial sector. P. the 3. Strong distribution network and market awareness are few prerequisites for making a dent in the rural markets.2. economic growth in India's agricultural sector in last year was over 10%. S. Asha(MBA) Prime Minister Dr.compared with 8. suggested that. PhD)/ Mr. N.Phil)/ Ms. Its sachets of detergent and shampoo are in great demand in Indian villages. There is much that modern science and technology can do to realise this vision. Manmohan Singh recently talked about his vision for rural India: "My vision of rural India is of a modern agrarian. This implies a huge market potentiality for the marketer to meet up increasing demand. Factors such as village psyche.

fertilizers. for food. pesticides and farm machinery. non-durable construction. so that Rural consumers have become the prime consumer durable and target market products. advertisers and companies find it easier to vie for a share of the already divided urban pie. Employment opportunities have to be created in rural areas. have failed miserably. electronics. It has always been difficult to gauge the rural market. More often than not. marketers need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent . people attribute rural market success to luck." 'Go rural' is the slogan of marketing gurus after analyzing the socio-economic changes in villages.6 per cent of the total share. automobiles. The Rural population is nearly three times the urban. Therefore. insurance companies and other sectors besides hundred per cent of agri-input products such as seeds. electrical. which should have been successful. The success of a brand and in the Indian rural market is as unpredictable as rain.and education needs have to be met. Many brands. So clearly there seems to be a long way ahead. Although a lot is spoken about the immense potential of the unexplored rural market. banks. The Indian rural market today accounts for only about Rs 8 billion of the total ad pie of Rs 120 billion. thus claiming 6.

A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for.pattern looking at the challenges and the opportunities which rural markets offer to the marketers it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. RURAL INDIA…a new dawn India needs creative solutions to start a revolution which can take its villages fast forward in time – converting them into . so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.

villagers. INTRODUCTION “India lives in her villages”. .economically viable units and growth harnessing the power of the engines. and opening up new horizons with the promise of a better tomorrow.

As described by Adi Godrej. Rural India. comprises all places that are not urban!" .. Godrej Group – “The rural consumers are discerning and the rural market is vibrant. The Census defined urban India as . on the other hand.. let's look at the definition of urban and rural India. The rural market is no longer sleeping but we are”. it will soon outstrip the urban market. cantonment board etc or have a population of at least 5. At the current of growth. Before gamboling into issues like where the Indian rural market stands and the opportunities for corporate’s to explore there. Chairman."All the places that fall within the administrative limits of a municipal corporation. municipality.000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square kilometer.

In our country over 70%of the total population live in villages. About 70% of bicycles. refrigerators. mosquito repellent and tooth paste are very low and there is tremendous potential for such products in rural markets. Bihar. washing machines. More than 50%of the national income is generated in rural India and there are opportunities to market modern goods and services in rural areas and also market agricultural products in urban areas. There are states like U. At the same time the sales of color television. fertilizers and pesticides. M. Agriculture and agriculture related activities contribute to about 75%of the income in rural areas.P. So clearly there seems to be a long way ahead. face cream. The general impression is that the rural markets have potential only for agricultural inputs like seeds.P. 100 per cent agricultural products) of the total ad pie of Rs.6 per cent of the total share. 120 billion. shampoos. mechanical watches and radios and about 60%of batteries. thus claiming 6. . Infact it has been estimated that the rural markets are growing at fives times the rate of urban markets. Rajasthan and Orissa where rural population varies form 8 to 9 percent. 8 billion (53 per cent FMCG sector. sewing machine and table fans are sold in rural India. 59 per cent durables sale. Now for some facts and figures The Indian rural market today accounts for only about Rs. cattle feed and agricultural machinery.

. Cavin Kare. Colgate. But when one zeroes in on the companies that focus on the rural market. The lynchpin of HUL's strategy has been to focus on penetrating the market down the line and focusing on price point. is what sums up HUL's agenda as far as the rural market is concerned informs Mindshare Fulcrum general manager R Gowthaman. Eveready Batteries. BSNL. Britannia and Hero Honda to name a few. which are in line with the brand itself. 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. a mere handful names come to mind.Time and again marketing practitioners have waxed eloquent about the potential of the rural market. LG Electronics. Furthermore. activating the brand in the rural market through activities. Life Insurance Corporation. Philips. Hindustan Lever Limited (HLL) is top of the mind with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'.

with their Aamir Khan Ad campaign succeeded in providing just that. this is definitely changing. The greatest challenge for advertisers and marketers continues to be in finding the right mix that will have a pan-Indian rural appeal. the rural market was being given a step-motherly treatment by many companies and advertising to rural consumers was usually a hit and miss affair. Hence advertising that is rooted in urban sensitivities didn't touch the hearts and minds of the rural consumer.Khaitan fans' ad on a horse cart Wheel's wall painting We can safely say that until some years ago. Coca Cola. the agenda being to take a short-cut route by pushing urban communication to the rural market by merely transliterating the ad copy. . While. More often than not. the process is slow.

Lifebuoy's wall painting in rural India Corporates are still apprehensive to "Go Rural." A few agencies that are trying to create awareness about the rural market and its importance are Anugrah Madison, Sampark Marketing and Advertising Solutions Pvt Ltd, MART, Rural Relations, O&M Outreach, Linterland and RC&M, to name a few. Also, the first four agencies mentioned above have come together to form The Rural Network. The paramount objective of the Network is to get clients who are looking for a national strategy in rural marketing and help them in executing it across different regions. Interestingly, the rural market is growing at a far greater speed than its urban counterpart. "All the data provided by various agencies like NCAER, Francis Kanoi etc shows that rural markets are growing faster than urban markets in certain product categories at least. The share of FMCG products in rural markets is 53 per cent, durables boasts of 59 per cent market share. Therefore one can claim that rural markets are growing faster than urban markets," says Sampark Marketing and Advertising Solutions Pvt Ltd managing director R A Patankar.

"Yaara da Tashan..." McCann Erickson's 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. The company, on its behalf, has also been investing steadily to build their infrastructure to meet the growing needs of the rural market, which reiterates the fact that this multinational has realised the potential of the rural market is going strength to strength to tap the same.

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. Clearly the main challenge that one faces while dealing with rural marketing is the basic understanding of the rural consumer who is very different from his urban counterpart. Also distribution remains to be the single largest problem marketers face today when it comes to going rural. "Reaching your product to remote locations spread over 600,000 villages and poor infrastructure - roads, telecommunication etc and lower levels of literacy are a few

hinges that come in the way of marketers to reach the rural market," says MART managing director Pradeep Kashyap. Citing other challenges in rural marketing, Patankar says, "Campaigns have to be tailor made for each product category and each of the regions where the campaign is to be executed. Therefore a thorough knowledge of the nuances of language, dialects and familiarity with prevailing customs in the regions that you want to work for is essential. The other challenge is the reach and the available means of reaching out to these markets, hence the video van is one of the very effective means of reaching out physically to the rural consumers." The fact of the matter remains that when compared to the Indian urban society, which is turning into a consumerism society; the rural consumer will always remain driven by his needs first and will therefore be cost conscious and thrifty in his spending habits. "Decision-making is still conscious and deliberated among the rural community. But nevertheless, the future no doubt lies in the rural markets, since the size of the rural market is growing at a good pace. There was a time when market predictions were made on the basis of the state of the monsoon but this trend has changed over the years; there is a large non farming sector, which generates almost 40 per cent of the rural wealth. Hence the growth in the rural markets will be sustained to a large extent by this class in addition to the farmer who will always be the mainstay of the rural economy," affirms Patankar. "Although the melting of the urban - rural divide will take a while, this is not for want of the availability of the means but for want of the rural consumer's mindset to change; which has its own logic, which is driven by tradition, custom and values that are difficult to shed," he points out.

value equation turns the other way round. "Till the time that volume . The television CPC is going to anyways be cheaper to rural CPC and unless and until the volume .value equation is managed better.Satellite dish antennas reach rural India Fulcrum's Gowthaman says." Typical shop in rural India stocked with sachets. etc For HUL. you will not be able to spend disproportionate monies in the rural market. a one rupee or a five rupee sachet or the Kutti Hamam (the small Hamam) helps in giving the consumers a trial opportunity. While it does help in generate volume but not in terms of values. the CPC is preventing anybody . "The biggest impending factor or deterrent on rural monies going up is that there is a general sense of trying to benchmark cost per contact (CPC).

4 trillion by 2017 . the second most populated country of more than 1100 million has emerged as one of the fastest growing economies. It's all about how one approaches the market. INDIA INFRASTRUCTURE The best barometer of country’s economic standing is measured by its GDP. the ball lies in the court of rural marketers.to look at rural at a large scale activation programme. takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity. With the expected average annual compounded growth rate of 8." reiterates Gowthaman. India. India's GDP is expected to be USD 1. In the previous four years.economy grew at 9%.5% due to global recession. Ultimately.5%.In 2008-09 India’s economy-GDP grew by 6. It is a republic with a federal structure and well-developed independent judiciary with political consensus in reforms and stable democratic environment .The Indian economy is expected sustain a growth rate of 8% for the next three years upto 2012.

The strong population growth in India and its booming economy are generating enormous pressures to modernize and expand India’s infrastructure. More than USD 475 billion worth of investment is to flow into India’s infrastructure by .8 trillion by 2027. The creation of world class infrastructure would require large investments in addressing the deficit in quality and quantity. Service sector contribute to 50% of India‘s GDP and the Industry and agriculture sector 25% each.and USD 2. Investment Opportunities in Indian Infrastructure The robust current growth in GDP has exposed the grave inadequacies in the country’s infrastructure sectors.

In addition to the above. In the next five years planned infrastructure investment in India in some key sectors are (at current prices): Modernization of highways -US$ 75 billion.Construction infrastructure. Thus in the eleventh five year plan .Urban infrastructure .US$ 18 billion. Development of Telecom. Development of civil aviation US$ 12 billion. SEZs . Development of Ports-US$ 26 billion.and water infrastructure and sanitation infrastructure thus making the total infrastructure investments in the eleventh plan period 2007-08 to 2011-12 as US$475 billions. With the above investments India’s infrastructure would be equal to the best in the world by 2017. Development of Railways.investment in the above sectors (Aviation infrastructure . investments to the tune of US$ 91 billions have been planned in other infrastructure sectors like Tourism infrastructure .000 Crores) considering the huge infrastructure market potential in India. .Telecom infrastructure ) will be US$ 384 billions(Rs 17. Development of Power -US$ 232 billion. No country in the world other than India needs and can absorb so many funds for the infrastructure sector.Rural infrastructure.US$ 71 billion.Power infrastructure.2012. Highway infrastructure . Development of Irrigation system. Domestic and global infrastructure funds have exposure to Indian infrastructure sectors. Port infrastructure .US$ 32 billion.20.

It is a two-way marketing process wherein the transactions can be: • into this category. The transactions relate to the areas of expertise . distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives. fruits and vegetables. The following are some of the important items sold from the rural to urban areas: seeds.Rural Marketing Rural marketing involves the process of developing. FMCG Products. pricing. etc. These include: Pesticides. Consumer durables. promoting. milk and related products. etc. An agent or a middleman plays a crucial role in the marketing process. It involves the selling of products and services by urban marketers in rural areas. • Urban Rural to :A major part of rural marketing falls Rural to Urban : Transactions in this category basically fall under agricultural marketing where a rural producer seeks to sell his produce in an urban market. spices. forest produce. • Rural to Rural : This includes the activities that take place between two villages in close proximity to each other.

Rural marketing basically deals with delivering manufactured or processed inputs or services to rural producers. Rural marketing requires the understanding of the complexities. This has designed a new way for understanding a new process called Rural Marketing. The rural areas are consuming a large number of industrial and urban manufactured products. products . carts and others to another village in its proximity. The concept of rural marketing has to be distinguished from Agricultural marketing. which signifies marketing of rural products to the urban consumer or institutional markets. Rural marketing is different from agricultural marketing.the particular village has. which in turn is characterized by various peculiarities in terms of nature of market. The rural agricultural production and consumption process plays a predominant role in developing the Indian economy. These include selling of agricultural tools. Indian agricultural industry has been growing at a tremendous pace in the last few decades. the demand for which is basically a derived outcome. as the process of rural marketing involves an urban to rural activity. Marketing is the process of identifying and satisfying customers needs and providing them with adequate after sales service. cattle. Rural marketing scientists also term it as developmental marketing.

government agencies and traders. farmers. money and labor. product design and positioning. opinion makers. Rural marketing differs from agricultural or consumer products marketing in terms of the nature of transactions. The participants in case of Rural Marketing would also be different they include input manufacturers. products. Companies need to understand rural marketing in a broader manner not only to survive and grow in their business. norms and outcomes. In the context of rural marketing one has to understand the manipulation of marketing mix has to be properly understood in terms of . but also a means to the development of the rural economy. modalities. The market for input gets interlocked with other markets like output. INDIAN RURAL MARKET: Rural marketing in India is not much developed there are many hindrances in the area of market. besides being titled towards profit. Rural marketing needs to combine concerns for profit with a concern for the society. dealers. Rural market for agricultural inputs is a case of market pull and not market push. consumer goods.and processes. distribution and promotion. One has to have a strategic view of the rural markets so as to know and understand the markets well. pricing. Most of the jobs of marketing and selling are left to the local dealers and retailers. which includes participants.

promotion. all elements of marketing mix can be better organized and managed. thus any strategy in rural marketing should be given due attention and importance by understanding the product usage. Product usage is central to price. branding. Evolution Marketing Pha se Origin Function of Rural Sourc Major Products e Marke t Destinat ion Market I Before Mid-1960 (from independe nce to green revolution) II MidSixties (Green revolution Marketing Of Agricultur al Urban Rural Agricultur al Marketing Agricultur al Produce Rural Urban . company image and more important farmer economics. distribution.product usage.

Rural marketing then referred to the marketing of rural products in rural & urban products.to Preliberalizat i on period) III MidNineties (Postliberalizat i on period on 20 th Agricultur al Inputs Inputs Consuma Rural Marketing bles And Durables For Consumpt ion & Productio n Urban & Rural Rural century) IV 21 st Developm ental marketing All products & services Urban & Rural Urban & Rural century • Phase I ( from Independence to Green Revolution) : Before the advent of the Green revolution. the nature of rural market was altogether different. • Phase II (Green Revolution to Preliberalization period): .

not through at and-alone products . distinct activity of attracting & serving rural markets to fulfill the need & wants of rural households. The objective of rural marketing in the current phase is the improvement of the quality of life by satisfying the needs & wants of the customers. if an organization wants to tap the real potential of the rural market. th • Phase IV (21 st century): Learning from its rural marketing experiences after the independence. rural marketing represented the emerging. And. the corporate world has finally realized the quick-fix solutions & piecemeal approaches will deliver only limited results in the rural markets. but they should also aim at creating an environment for this to happen. rural marketing represented marketing of agriculture inputs in rural markets & marketing of rural produce in urban areas. peoples & their occupations. due to the advent & spread of the Green Revolution. it needs to make a long-term commitment with this market. In this period. Its approach & strategies must not focus in just selling products & services.During these times. • Phase III (Post-liberalization period on 20 century): The third phase of rural marketing started after the liberalization of the Indian economy.

rural India is now attracting more and more marketers. the focus of marketers in India was the urban consumer and by large number specific efforts were made to reach the rural markets.or services. advertisers and multinational companies. Till recently. By and large this rise in purchasing . because of scientific agriculture. Increase in competition. saturated urban markets. more and move new products demanding urban customers. but by presenting comprehensive & integrated solutions which might involve a set of inter-related products & services. improved means of transportations and communication and other penetrations of mass media such as television and its various satellite channels have exposed rural India to the outside world and hence their outlook to life has also changed. According to a recent survey conducted by the National Council for Applied Economic Research (NCAER). coupled with increase in purchasing power. Because of all these factors. But now it is felt that with the tempo of development accelerating in rural India. the changing life style and consumption pattern of villagers with increase in education. the purchasing power of the rural people has increased due to increase in productivity and better price commanded by the agricultural products. made the companies to think about new potential markets. social mobility. Thus. Indian rural markets have caught the attention of many companies.

Britannia and even Multinational Companies (MNCs) like Pepsi. it is now quite easy for the marketers to capture these markets. Companies like Hindustan Lever.power remains unexploited and with the growing reach of the television. Coming to the frame work of Rural Marketing. is not just witnessing an increase in its income but also in consumption and production. home to about two-thirds of the country’s 1 billion population. Rural India.84 billion for improving . Colgate Palmolive.. The Indian growth story is now spreading itself to India's hinterlands.86 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 34. L. This is in addition to the farmer loan waiver of US$ 13.G. supply of goods and services to meet their requirements. and Calvin kare are all eyeing rural markets to capture the large Indian market.03 billion. carrying out after sales service that leads to customer satisfaction and repeat purchase/sales. Coca Cola. Rural Marketing broadly involves reaching the rural customer. understanding their needs and wants. Rural marketing has become the latest mantra of most corporate. The union budget for 2009-10 hiked the allocation for the National Rural Employment Guarantee Act (NREGA) to US$ 8. Philips. giving a further boost to the rural economy.

rural infrastructure. 70% of the Indian population lived in 6. rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years. the rural economy has not been impacted by the global economic slowdown. 3 According to a study conducted in 2001 by the National Council for Applied Economic Research (NCAER). 2) 84 percent of villages are electrified.000 villages.27. RURAL INFRASTRUCTURE: 1) 46 percent of villages are connected by all weather roads. according to a recent study by the Rural Marketing Association of India (RMAI). around 700 million people. 3) 5700 regulated markets. in rural areas. In the early 2000s. The study found that the rural and small town economy which accounts for 60 per cent of India’s income has remained insulated from the economic slowdown. which was estimated at US$ 577 billion. Moreover. 90% were concentrated in villages with population less than 2000. i.e. there were as many "middle income and above" households . Additionally. Of this. According to a McKinsey survey conducted in 2007. the rural India market would grow almost four times from its existing size in 2007.

It is wider and less competitive market for the FMCG. the demand of FMCG is increasing continuously.6 million in rural areas. It was the initial stage of FMCG companies in India. Gone were the days when a rural consumer had to go to a nearby town or city to buy a branded product.in rural areas as there were in urban areas. FMCG There was a time when the FMCG companies ignores rural market. NCAER projections indicated that the number of "middle income and above" households was expected to grow to 111 million in rural India by 2007. the strategy and marketing style of FMCG companies had been changed. The rural market is the one of the best opportunity for the FMCG sector in the India.3 million "highest income" households in urban areas as against 1. There were almost twice as many "lower income households" in rural areas as in urban areas. As the income level of the rural consumers increasing. As per as the time had passed. . The growing power of the rural consumer was forcing big companies to flock to rural markets. they took no any interest to produced or sell products in rural market in India. At the same time. There were 2. compared to 59 million in urban India. they also threw up major challenges for marketers.

Hindustan Unilever limited (HUL) 2. 2. Britannia Industries 9. on fast moving consumer goods (FMCG).03 billion in August 2008 and the rural market accounted for a robust 57 per cent share of the total FMCG market in India. 5.1. 3. Dabur India Top Players Sector in FMCG 6. Parle Agro Rural consumers spend around 13 per cent of their income. . Colgate-Palmolive (India)Ltd. Godrej Consumers Product Ltd. Cadbury India 8. GCMMF (AMUL) 5. Asian Paints (India) 7. The FMCG industry in India was worth around US$ 16. the second highest after food (35 per cent). ITC (Indian Tobacco Company) 3. Marico Industries Secondary Players 1. as per a RMAI study. Nestle India 4. Procter &Gamble Hygiene &Health Care 10. 4. Tata Tea Ltd. Nirma Ltd.

aided by three years of good monsoon. higher prices of farm produce and farm-loan waiver. Reliance Fresh. Reliance and many others have already set up farm linkages. Choupal Sagars (ITC).000 villages in the next couple of years from the present 18. For instance.The FMCG sector saw rural markets post 20 per cent growth. Kisan Sansars (Tata). Godrej. ahead of the 17-18 per cent growth from urban India. Project Shakti (Hindustan Unilever) and Naya Yug Bazaar are established rural retail hubs. Most FMCG companies are now working on increasing their distribution in smaller towns and focusing on marketing and operations programme for semi-urban and rural markets.500 in a year. or around 40 per cent of the US$ 280 billion retail market. Hariyali Kisan Bazaars (DCM) and Aadhars (Pantaloon-Godrej JV). ITC. Retail The rural retail market is currently estimated at US$ 112 billion.300 to almost 6. The products will reach out to 50. Telecommunication . Major domestic retailers like AV Birla.000 villages while the number of towns covered will double from 3. Godrej Consumer Products intends to increase revenue from rural areas from 38 per cent to 55 per cent in the next three years by increasing its distribution network substantially.

02 million for the financial year 2009-10.6 billion by 2011. have lined up a marketing spent of around US$ 21. In a bid to acquire rural subscribers.4 per cent to touch US$ 25. most Indian telecom operators have started investing in infrastructure to roll out their services in these areas. Also. . including Micromax. small Indian handset manufacturing companies. Intex Technologies and Karbonn. with most of the growth coming from rural markets.A Gartner forecast revealed that Indian cellular services revenue will grow at a compound annual growth rate (CAGR) of 18. rural users will account for over 60 per cent of the total telecom subscriber base in India. Realising this as a huge potential. a joint Confederation of Indian Industries (CII) and Ernst & Young report reveals that of the next 250 million Indian wireless users. and by 2012. approximately 100 million (40 per cent) are likely to be from rural areas.

semi-urban and rural markets contribute close to 40 per cent of sales. entry-level cars and tractors.14 billion consumer electronics industry come from the urban markets. aided by rising demand in semi-urban and rural markets. Consumer durables A survey carried out by RMAI has revealed that 59 per cent of durables sales come from rural markets. Presently. 30 per cent from tier-II and -III towns and balance 20 per cent from rural India. around 50 per cent of sales in the US$ 5.Automobiles For the auto industry. car sales grew 8. Significantly. TVS Motor also registered around 50 per cent of its sales from the rural and semi-urban markets. . Scorpio clocking 60-65 per cent sales from the rural markets as against 20 per cent earlier. led by demand for two-wheelers.3 per cent in June 2009. Mahindra & Mahindra is bullish on the rural and semi-urban markets. with its utility vehicle.

it has outlined plans to invest around US$ 40 million towards development of entry-level products targeted at rural markets. The company is set to tap markets with a population between 100. Samsung expects that its rural revenues would increase to US$ 287. LG has set up 45 area offices and 59 rural and remote-area offices. Recently. will look at expanding the base in villages with a population of 50. The company also plans to expand its sales channel by 25-30 per cent in rural India. Samsung has also rolled out its 'Dream Home' road show which was to visit 48 small towns in 100 days in an effort to increase brand awareness of its products.000 and 500.4 million last year. Whirlpool. Moreover. and in the next phase.7 million in 2009 from US$ 164. is eyeing rural markets in India for its next phase of growth. .000 in the first phase.000.Many leading consumer durable companies are now increasing their presence in rural India.

low savings. Rural • Major Income of Rural consumers is from Agriculture: Rural Prosperity is tied with agriculture prosperity. • Standard of Living and disposable income of the rural customers: rising It is known that majority of the rural population lives below poverty line and has low literacy rate. and scattered into a number of regions. etc.Nature of Rural Market • Large. societal backwardness. the income of the rural masses is directly affected. But the new . In the event of a crop failure. low per capital income. Diverse and Scattered Market: market in India is large. There may be less number of shops available to market products.

and financial facilities are inadequate in rural areas. which ultimately affects the rural market. rural people have disparate socioeconomic background. Change is a continuous process but most rural people accept change gradually. • Diverse background: socioeconomic Due to Infrastructure Facilities: The infrastructure facilities like cemented roads. Hence physical distribution is a challenge to marketers who have found innovative ways to market their products. good monsoon. government regulation on pricing has created disposable incomes. Hence awareness has increases and the farmers are wellinformed about the world around them.tax structure. warehouses. . • dispersion of geographical areas and uneven land fertility. • have a traditional outlook. communication system. They are also educating themselves on the new technology around them and aspiring for a better lifestyle. This is gradually changing due to literacy especially in the youth who have begun to change the outlook in the villages. Today the rural customer spends money to get value and is aware of the happening around him. • Traditional Outlook: Villages develop slowly and Rising literacy levels: It is documented that approximately 45% of rural Indians are literate.

95% compared to 10.000) for rural sector is 27.2.74% in urban between 1970-71 and 1993-94. Marginal farmers: Labors. and buyer. 15.influencer. artisans. Rural incomes CAGR was 10.000. • Myth-3: Individuals About Purchases Reality: Decide Decision making process is collective. Traders. one who pays can all . Literacy (Kerala 90%. decider. State wise variations in rural demographics are present viz. Punjab 6%).4 million as compared to the figure of 29. Bihar 44%) and Population below poverty line (Orissa 48%.5 million for urban sector. small farmers. • Myth-2: Disposable Income Is Low Reality: Number of middle class HHs (annual income Rs 45.Some Myths: • Myth-1: Rural Homogeneous Mass Reality: Market Is a It’s a heterogeneous population. Various Tiers are present depending on the incomes like Big Landlords. Purchase process.

Rural youth brings brand knowledge to Households (HH). Transactional Vs Developmental comprehension of this role let us distinguish development marketing and transactional marketing. : For better Transactional Marketing S. So marketers must address brand message at several levels. It is more a process of delivering better standard of living and quality of life to the rural environment taking into consideration the prevailing village milieu. Concept Consumer Society orientation.N o Vs Development Aspect Transactional Development 1. Table brings out the differences in brief. . The role of rural marketing as such is more developmental than transactional. rural markets have become an attractive proposition for commercial business organizations.be different. Is rural marketing transactional or developmental in its approach? It is true.

Focus Product-market fit Social change 4.orientation. benefactors 7. Key task Product innovations and communications 5. Sellers societal concept Catalytic and transformation agent Social innovations and communications Commercial Socio-cultural. economic Government. corporate enterprises. Offer Products and services Development. Nature of activity 6. Customer satisfaction Brand image Market development Corporate Image Functional Developmental . Communicati on 10. Role Stimulating and conversional marketing 3. Goal Profits. projects/schemes/prog rams 8. Participants Corporate enterprises. voluntary agencies. Marketing concept 2. Target group Buyers Beneficiaries and buyers 9.

11. Time-Frame Short-medium Medium-Long 12. Motivation Profit-motive Business policy Service-motive Ideological or Public policy

Model :The

model of rural marketing represents a

combination of the transactional and developmental

• Rural marketing process is both a catalyst as well as an outcome of the general rural development process. Initiation and management of social and economic change in the rural sector is the core of the rural marketing process. It becomes in this process both benefactor and beneficiary. • Innovation is the essence of marketing. Innovative methods of social change for successful transformation of traditional society are virtual. Such a change narrows the rural-urban divide. • The process of transformation can be only evolutionary and not revolutionary. The growth of the rural market can be a planned evolutionary process based on strategic instruments of change rather than constitute just short-term opportunities for commercial gains.

The exposure of ruralities to a variety of marketing transactions during the change process puts them in

the role of beneficiaries than of just `buyers' of modern inputs and infrastructural services. • Communication is the vital element of rural marketing. It should serve to resolve social conflicts, encourage cooperation and strengthen competitive spirit during interactions between rural and urban as well as within rural areas. Another critical point for communication is the point of conversion of ruralite from an "induced beneficiary" to an "autonomous buyer".

Classification of rural consumers
The rural consumers are classified into the following groups based on their economic status:

and a very few in number. They have affordability but not form a demand base large enough for marketing firms to depend on. Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group.

The Group:


They are cash rich farmers

The Middle Class:

This is one of the largest

segments for manufactured goods and is fast expanding. Farmers cultivating sugar cane in UP and Karnataka fall in this category.

The Poor:

This constitutes a huge segment.

Purchasing power is less, but strength is more. They

receive the grants from government and reap the benefits of many such schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall under this category.

Roadblocks of Indian Rural Market
There are several roadblocks that make it difficult to progress in the rural market. Marketers encounter a number of problems like dealing with physical distribution, logistics, proper and effective deployment of sales force and effective marketing communication when they enter rural markets. The major problems are listed below.

the poverty line is more in rural markets. Thus the market is also underdeveloped and marketing strategies have to be different from those used in urban marketing.

Standard living


:The number of people below

Low literacy levels

: The low literacy levels in rural

areas leads to a problem of communication. Print media has less utility compared to the other media of communication.

Low per capita income

:Agriculture is the main

source of income and hence spending capacity depends upon the agriculture produce. Demand may not be stable or regular.

the rest of the rural markets do not even have a proper road linkage which makes physical distribution a tough task. Many villages are located in hilly terrains that make it difficult to connect them through roads. • Transportation warehousing and : distribution chain is not very well organized and requires a large number of intermediaries. However. This is a challenge to the marketers. The services rendered by central warehousing corporation and state warehousing corporations are limited only to urban and suburban areas. As far as road transportation is concerned. Warehousing is another major problem in rural areas. as there is hardly any organized agency to look after the storage issue.• Transportation is one of the biggest challenges in rural markets. Due to lack of proper infrastructure. about 50% of Indian villages are connected by roads. They are mainly dependent on dealers. manufacturers are reluctant to open outlets in these areas. Ineffective channels distribution :The . Most marketers use tractors or bullock carts in rural areas to distribute their products. which in turn increases the cost and creates administrative problems. who are not easily available for rural areas.

: Quick • determines purchasing decision in rural areas. Harvest season might see an increase in disposable income and hence more purchasing power. The literacy rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional. different behaviour and language of the respective areas make it difficult to handle the customers. • Spurious brands : Cost is an important factor that to dependency on agricultural income. • Many languages culture and diversity in : Lack of communication system communication is the need of the hour for smooth conduct of business. Traits among the sales force are required to match the various requirements of these specific areas. which may be a problem for effective communication. Many a time the rural customer may not be aware of the difference due to illiteracy. Seasonal demand :Demand may be seasonal due . providing a low cost option to the rural customer.• Factors like cultural congruence. but it continues to be a far cry in rural areas due to lack of communication facilities like telegraph and telecommunication systems etc. A lot of spurious brands or look-alikes are available.

Attractiveness of rural market • its growth rate is also high.• Dispersed markets : Rural population is highly dispersed and requires a lot of marketing efforts in terms of distribution and communication. the rural areas continue to be the place of living majority of Indians. Despite the rural urban migration. Large Population: The rural population is large and • Rising Propensity: Rural .

2 million new consumers yearly.000 Rs.4 26.2 Thus we see that population between income level of Rs.000 Rs.0 41.77.3 13.7 5. 100. 50.000 & below 200001 1.6 61.3% in 1994-95 to 67.00150.00177.000.6 2.7 4. 25.000 will increase from 34.000 Rs. The rural consuming class is increasing by about 3-4% per annum.001100. 77.25.6 3. • Growth consumption: Per capita (in Rs. 25.8 5. which roughly translates into 1.4 37.000 Rs.0 22.1 44.4 20.) in household expenditure Level N States Expend .0% in 2006-07.8 2005 -06 200809 8.Income Group Above Rs.

o. 382/-) Tamil Naidu Uttar Pradesh Karnatak a Assam 338 Low (Below Rs. iture Punjab 614 Kerala 604 Haryana 546 High (Above Rs 382/-) 7 Rajastha n Gujarat 416 Andhra Pradesh Maharash tra West Bengal Orissa 381 Average 5 (Rs. 382/-) Bihar 289 3 Madhya Pradesh 326 365 373 381 382 384 386 452 .

) Item % Ric h Food Articles 4 4 14 7 73 95 Po or Avera ge .7 66 . 89 7.0 7 Middle 12.Distribution household’s income wise (projection in Rs Crore) 2001 – 02 2006 – 07 Income groups Rural Rural Tot al No.0 9 Total 18.26 0. % Tot High 0.7 Spending pattern (Rural Household’s in Rs.52 0.68 3.0 4 Low 5.1 2 10.7 71 .7 5. % 0.7 3 26 .9 0 16.7 2 3. 96 al No.1 61 . 32 23 .4 20.9 64 .5 2 13.8 95 .2 88 .0 4 12.

milk & vegetables are Rs. usage of packed consumer goods (% of household using) Monthly household income (Rs.) Goods Up to 350 351 – 750 751 – 1500 150 1+ . • Life style changes: Income vs.Toiletries 2 0 67 33 43 Washing Material Cosmetics 1 3 43 22 28 1 0 33 17 21 Otc Products Others Total 4 13 6 9 9 30 15 19 33 3 166 215 Average rural household spends on consumables excluding food grains. 215/-.

Washing Cakes/Bars shampoos Tooth Paste/Powder bathing soaps Tea (Packaged) 60 78 86 91 57 72 89 93 22 36 65 85 20 25 41 63 22 30 48 64 • Life cycle advantage: Stages in life cycle Product Urban Market Growth Rate % Popular soaps Premium soaps Washing powder Skin creams Maturit y Late growth Late growth Maturit y 1.1 Growth 6 Early growth 11 Early growth 2 Growth Rural Tea Maturit 4 Growth .

reaching them is costly. television spots. cigarettes and hair oil.y • Market growth rates higher: FMCG market and the Growth rates of the durable market are higher in rural areas for many products. The rural market share will be more than 50% for the products like toilet soaps. However.1 Crore to promote a consumer durable inside a state. which can reach millions. Rural marketing expensive is not : Conventional . Campaign like this. new research indicates that the selling in Rural India is not expensive. According to one research it costs roughly Rs. cooking medium (vanaspati). • wisdom dictates that since rural consumers are dispersed. This includes the expenses of advertising in vernacular newspapers. costs twice as much in urban area. body talcum powder. in-cinema advertising. cooking medium (oil). van operations and merchandising and point of purchase promotion. tea. radio.

Variation Needs Innovation/Ado ption High Level Low Level Faster Slow Mostly From Unorganized Units 3 Product Awareness High Low .N o. 1 Aspect Urban Rural Rural Vs Marketing Urban Marketing & Societal Concepts & Philosophy Relationship Marketing Marketing & Societal Concepts. Even Seasonal. Development Marketing & Relationship Marketing 2 • Market • Demand • Competition High Low Among Units In Organized Sector Consumers Location Literacy Income Expenditure Concentrated Widely Spread High Low High Low Planned.

audio visual media. outdoors. stockists. retailer. print media to some extent. specialty stores. More . showrooms Good Average High Limited Village shops. “Haats” TV.Concept Positioning Usage Method Known Less Known Easy Difficult Easily Grasped Difficult To Grasp Quality Preference 4 Price Sensitive level desired 5 distribution Good Moderate Yes Very much Medium-high Medium-low Wholesalers. radio. & authorised Transport Facilities Product Availability 6 Promotion Advertising Print. channels supermarket.

few languages Personal Selling Sales Promotion Publicity Door-to-door. • rejigged the TV to appeal to local needs. the Korean firm has . price discounts Less opportunities Special Products for Rural Markets: • Rural Transporter: Mahindra & Mahindra is busy developing the prototype of what it calls a ‘Rural Transporter’ – basically a hybrid between a tractor and a rural transport vehicle. frequently Contests. The product at 20-25 HP will be targeted at those who cannot afford a normal tractor and would also fulfill the need of family transporter that could take in the rural roughs but would be much more comfortable and safer than the conventional tractortrolley. Sampoorna TV: LG Electronics. It spent Rs.exhibitions etc. price discount Good opportunities languages Occasionally Gifts. gifts. 21 Lacs to develop a set that would have on-screen displays in the vernacular languages of Hindi. Tamil and Bengali.

. In this scenario the job of the Marketer becomes even more difficult in the sense that he has not to fight other competitors but also the imitated products. commitment. In fact it is considered to be a high priority list. A poor imitator will end up in producing deceptive. rural consumers unfamiliar with English would still be able to use the TV without being intimidated.To solve this problem the Marketer has to educate the consumer about his product and show him the benefits of his products over the imitated ones. a poor imitator may even produce an improved version of the original product. • there is a great potential for watches in rural areas. It was also found that a rural consumer looks for the ruggedness of the watch more than the urban consumer does. He prefers thick watches than slim watches. The advantages that these products enjoy in the rural markets are that the Imitators who are in the villages are making these and they are offering More Margins & Better credit Facilities.The logic. spurious. and competence of imitator. copycat products. On the other hand. Imitations may result in two types of goods depending upon the purpose. The biggest problem Titan Watches: A recent NCAER study revealed that that the Marketers are facing in the Rural Markets is Of IMITATIONS. In quality. He dupes the gullible customer by offering products having close resemblance with the original. it is poor cousin to the original. fake.

Motors. Husk Washing Vessels Coconut fiber. Horses. LCVs. soaps and liquids Toothpaste. Mopeds. tooth powder .Need-Product Relationships and the changes happening in Rural India Needs Old Products New Products Brushing Teeth Neem sticks. Canals. Earthy materials. Scooters. Ash Transport Bullock Cart. Pump Sets Hair Wash Shikakai powder. Rocksalt. Donkeys Tractors. Retha. Water lifters. Power Generators. Besan Shampoos and hair care soaps Washing Powders. Motor cycles Irrigation Wells. Wind Mills Bore-wells. Brick Powder. Charcoal.

The companies are trying to trigger growth in rural areas. The rural market has a grip of strong country shops. The Indian established Industries have the advantages. Marketer should understand the price sensitivity of a consumer in a rural area. Due to the social and backward condition the personal selling efforts have a challenging role to play in this regard. consumer demand-pull and efficient and dedicated dealer network which have been created over a period of time. The strong Indian brands have strong brand equity. which affect the sale of various products in rural market. The word of mouth is an important message carrier in rural areas. This paper is . Infect the opinion leaders are the most influencing part of promotion strategy of rural promotion efforts. They are identifying the fact that rural people are now in the better position with disposable income.CONSUMER BEHAVIOR IN RURAL MARKETS: Promotion of brands in rural markets requires the special measures. Relevance of Mass Media is also a very important factor. which MNC don't enjoy in this regard. The experience of agricultural input industry can act as a guideline for the marketing efforts of consumer durable and non-durable companies. The low rate finance availability has also increased the affordability of purchasing the costly products by the rural people.

(iv) The rural markets can be worked with the different media environment as opposed to press. economic conditions and problems. (ii) The rural marketing required the separate skills and techniques from its urban counter part. How reality does affect the planning of marketers? Do villagers have same attitude like urban consumers? The question arises for the management of rural marketing effects in a significant manner so than companies can enter . radio and other urban centric media exposure. (iii) Rural consumers have mostly homogeneous group with similar needs.therefore an attempt to promote the brand image in the rural market. (i) The rural market has the opportunity for. (ii) Low priced products can be more successful in rural markets because the low purchasing. Indian Marketers on rural marketing have two understanding (I) The urban metro products and marketing products can be implemented in rural markets with some or no change. purchasing powers in rural markets. The Marketers have following facilities to make them believe in accepting the truth that rural markets are different in so many terms. film.

The buying preferences of consumers send signals to producers to produce various commodities in required quantities.in the rural market with the definite goals and targets but not for a short term period but for longer duration. It includes: . In India. exposure to the media. In recent years. The buying behavior of the rural consumers is influenced by several factors. governmental intervention through legislations. cultural environment. information technology. occupation. The strategy. such as socio-economic conditions. A free market economy provides freedom to the consumers to buy and consume goods of their choice. produces only those commodities which are desired by the consumers. The work is useful for understanding the Indian rural consumer psyche in order to formulate an appropriate marketing strategy. This book examines the buying behavior of India's rural masses and the diverse factors which influence their choices. etc. geographical location.The ultimate objective of all production is consumption. efforts on the part of sellers. therefore. The Research paper will discuss the role of regard. Producers. more importantly. and. can be either specific or universally applicable. the lifestyle of a large number of rural consumers in India has changed dramatically and continues to do so. India's rural consumers account for about 73 percent of the total consumers. which will be presented in the paper. literacy level. consumer behavior has changed in recent years owing to enhanced awareness.

the preferences of the consumers is directly related to: • • • • • • Price Quality Credit Variety Dealer advice Specific brand.• Media • Newspaper brand • Sources of information.The . : PURCHASE BEHAVIOR: Rural people can buy only from three places includes: • From the shop in the same village • Weekly bazaar • From the shop of nearby town. RURAL CONSUMER PREFERENCES In order to assess the buyer behavior towards certain critical aspects of marketing. has a very strong influence on the Environmental consumer of the . within which the consumer lives. Factors influencing buying behavior The various factors that affect buying behavior of in rural India are: • environment or the surroundings.

For instance. what the customer will be able to buy. Electrification. which determine to a great extent. agriculture is the primary occupation. egs. purchase of durable has less to do with income.buyer behavior. Thus. water supply affects demand for durables. Industry observers are increasingly realizing that at times. • Geographic influences . villages in South India accept technology quicker than in other parts of India. More than 70% of the people are in Economic factors – The quantum of income & . becomes an attractive proposition. HMT sells more winding watches in the north while they sell more quartz watches down south.The geographic organization in consumer markets. • Famil y – it is an important buying decision making the earning stream are one of the major deciding factors. Family size & the roles played by family members exercise considerable influence on the purchase decisions. • location in which the rural consumer is located also speaks about the thought process of the consumer. Many people in the rural market are below poverty line & for large number of people. but has more to do with the size of the family & that’s where rural India with joint family structures.

(60% prefer HAATS due to being used as a paint to colour horns of oxen.small-scale agricultural operation. These factors affect the purchase decision. variety & price) Companies need to assess the influence of retailers on both consumers at village shops and at haats. Culture is the most basic element that shapes a person’s wants and behaviour. • Place purchase of .ex Godrej hair dye is branded items in 16 product categories) Brand loyalty preference and .(80% of sale Cultural factors exert the broadest and deepest influence on consumer behaviour. Some of the few cultural factors that influence buyer behaviour are: In Cultural behavior factors influencing consumer . • Creative product use of . Washing machine being used for churning lassi. India. • better quality. there are so many different cultures. which only goes on to make the marketer’s job tougher. The marketer needs to understand the role played by the buyer’s culture. The study of product end provides indicators to the company on the need for education and also for new product ideas.

in a few villages they have common bath areas. the Tata Sumo. Thus Philips makes audio systems. with a larger seating capacity and ability to transport good. • For example. But however. and each culture exhibits different social practices. Produc t (colour. • cultures. That is the main reason for the large acceptance of big audio systems. Urban India looks at technology with the viewpoint of ‘the smaller the better’. the viewpoint is totally opposite. which was launched in rural India in a white colour. However. and shape): There • Another good example would be Philips audio systems. size. Villagers used to buy one Lifebuoy cake and cut it into smaller bars. which are big in size and get accepted in rural India by their sheer size.• are many examples that support this point. design. the acceptance was higher. was not well accepted. in rural India. when the same Sumo was re-launched as Spacio (a different name) and in a bright yellow colour. This helped Social practices : There are so many different . For example.

poor roads. acute dependence on the vagaries of the monsoon. power problems. and inaccessibility to conventional advertising media. this trend is very prominent. seasonal consumption linked to harvests and festivals and special occasions. in most cases. For example.lifebuoy to introduce smaller 75-gram soap bars. VCR’s. . large number of daily wage earners. In rural areas. • Indian culture has always been given the designation of key decision maker. which could be used individually. LCV’s s 4 A’s approach of Indian Rural Market The rural market may be appealing but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income. Decision-making head by male : The male in • Changes in saving and investment pattern : From gold. is shared with the rest of the village. land. to tractors. the Mukhiya’s opinion (Head of the village). Even in a house the male head is the final decision maker.

India's 627. has evolved a hub and spoke distribution model to reach the villages. . The more daring MNC’s are meeting the consequent challenges of availability. Any serious marketer must strive to reach at least 13.However. To service remote village. affordability. Coca-Cola.000 villages are spread over 3.000. given the poor state of roads. stockiest use autorickshaws. However. To ensure full loads. finding them is not easy.113 villages with a population of more than 5.2 million sq km. the rural consumer is not unlike his urban counterpart in many ways. India's largest MNC. it is an even greater challenge to regularly reach products to the far-flung villages. a subsidiary of Unilever. Marketers must trade off the distribution cost with incremental market saturation. acceptability and awareness (the so-called 4 A’s) • Availabilit y The first challenge is to ensure availability of the product or service. the company depot supplies. bullock-carts and even boats in the backwaters of Kerala. has built a strong distribution system which helps its brands reach the interiors of the rural market. 700 million Indians may live in rural areas. Hindustan Lever. Over the years. which considers rural India as a future growth driver. twice a week.

Some companies have addressed the affordability problem by introducing small unit packs. To tap these unexplored country markets. Fair Glow and Godrej in 50-gm packs. products need to be affordable to the rural consumer. priced at Rs 45 meant specifically for Madhya Pradesh. These distributors appoint and supply. smaller distributors in adjoining areas. most of who are on daily wages.Godrej recently introduced three brands of Cinthol. Hindustan Lever.large distributors which who act as hubs. • Affordabilit y The second challenge is to ensure affordability of the product or service. has launched a variant of its largest selling soap . LG Electronics defines all cities and towns other than the seven metros cities as rural and semi-urban market. Fair and lovely was launched in a smaller pack. once a week. LG has set up 45 area offices and 59 rural/remote area offices. Bihar and Uttar Pradesh — the so-called `Bimaru' States. among the first MNC’s to realize the potential of India's rural market. Colgate toothpaste launched its smaller packs to cater to the travelling segment and the rural consumers. Most of the shampoos are available in smaller packs. With low disposable incomes.

it developed a customized TV for the rural market and christened it Sampoorna. Coca-Cola has addressed the affordability issue by introducing the returnable 200-ml glass bottle priced at Rs 5. Coca-Cola has also introduced Sunfill. The move is mainly targeted at the rural market. Lifebuoy at Rs 2 for 50 gm. • Acceptabilit y The third challenge is to gain acceptability for the product or service.000 sets in the very first year. .brand. One company which has reaped rich dividends by doing so is LG Electronics. The insurance companies that have tailormade products for the rural market have performed well. The instant and ready-to-mix Sunfill is available in a single-serve sachet of 25 gm priced at Rs 2 and multi serve sachet of 200 gm priced at Rs 15. Therefore. In 1998. there is a need to offer products that suit the rural market. Coca-Cola provides low-cost ice boxes — a tin box for new outlets and thermocol box for seasonal outlets. It was a runway hit selling 100. a powdered soft-drink concentrate. The initiative has paid off: Eighty per cent of new drinkers now come from the rural markets. Because of the lack of electricity and refrigerators in the rural areas.

Fortunately. The company tied up with non-governmental organizations and offered reasonably-priced policies in the nature of group insurance covers. the rural consumer expressions differ from his urban counterpart. • Awareness Brand awareness is another challenge. the rural consumer has the same likes as the urban consumer — movies and music and for both the urban and rural consumer. Consumption of branded products is treated as a special treat or luxury. the family is the key unit of identity. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. Fortunately. Outing for the former is confined to local . the rural consumer expressions differ from his urban counterpart. however.5 crores in total premium. however. With large parts of rural India inaccessible to conventional advertising media — only 41 per cent rural households have access to TV — building awareness is another challenge. the rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer. the family is the key unit of identity. However. However.HDFC Standard LIFE topped private insurers by selling policies worth Rs 3.

Evolving a New Marketing Mix for Selling to Rural Indians . Since price is a key issue in the rural areas. Coca-Cola advertising stressed its `magical' price point of Rs 5 per bottle in all media. Consumption of branded products is treated as a special treat or indulgence. posters and tapped all the local forms of entertainment. Godrej Consumer Products. which alone reached 41 per cent of rural households.fairs and festivals and TV viewing is confined to the stateowned Doordarshan. Philips India uses wall writing and radio advertising to drive its growth in rural areas. The key dilemma for MNC’s ready to tap the large and fastgrowing rural market is whether they can do so without hurting the company's profit margins. cinema and radio to reach 53. LG Electronics uses vans and road shows to reach rural customers. These are promotional events organized by stockiest. It has also used banners. Hindustan Lever relies heavily on its own company-organized media. It doubled it’s spend on advertising on Doordarshan. uses radio to reach the local people in their language.6 per cent of rural households. Coca-Cola uses a combination of TV. which is trying to push its soap brands into the interior areas. The company uses local language advertising.

Retailer as special focus area s. Being able to successfully tap this growing market is every marketer’s dream. Then only the opportunity provided by the rural market can be fully tapped. at the base of this marketing mix will be 2 E’s of Education and Empowerment. Put in a different context. myths abound. However. the concept of Mega-Marketing where all such factors are taken into consideration while developing the Marketing Mix is more relevant to succeed and build enduring brands. this works out to 1 in 8 people on Earth. psychological and social implications. A clear distinction needs .The marketing mix in the case of Indian rural markets consists of 4P’s i. Place combined with 1 P that is Packaging and one R i.2% of the world lives in Rural India. Hence.e. In rural India’s case the two most important considerations are Education and Empowerment opportunities which traditional approaches of marketing fail to acknowledge.e. 12. India’s rural markets are often misunderstood. However. The concept of marketing has to be taken in conjunction with economic. Promotion. Price. EMPOWEREMENT EDUCATION CUSTOMIZATIONN The traditional marketing hypothesis tends to ignore the requirement of a developing country’s rural needs. Product.

demographical. Farmers in states like Maharashtra and Andhra Pradesh have reaped the benefits of adopting new age farming practices. Geographical. Positioning and realities regarding the potential of each of these market segments differ and lie at the very core of forming the strategy for the rural markets. Though the aggregate size is very large. statistical. including green house cultivation. we will be unable to distinguish between the serpent and the rope and the rope and the serpent. If such a distinction is not made. the need for a product or . The rural market is not homogeneous. individual subsets of this market tend to be rather small and disparate. disposable income has grown sharply.to be made with regard to the reality versus the image of rural India. The proportion of very rich has increased fivefold. logistical differences are very apparent. increasing yields due to integrated crop management practices and reducing the dependence on rainfall. This has radically changed the economics of farming. As a result. with the investment in these systems lowering the cost of cultivation. The growing incomes have modified demand patterns and buyer behaviour. The face of Indian agriculture is changing from dry land and irrigated agriculture into high-tech and low-tech agriculture. Moreover. fert-irrigation and hydroponics. The aspirants are becoming climbers showing a sustained economic upturn as purchasing power is increasing in the rural markets.

Basic Product. marketers need to think.” Philip Kotler The product offerings have to be not only customized but also at a different plane altogether in case of rural markets. Such creation of demand needs efficient management of the supply chain. plan and act locally. At most times. even created. augmented product and Potential Product should be adequately taken into consideration and the product offerings should be henceforth customized according to the needs. namely Core Benefit. To increase market share.service is now adequately backed up with the capacity. It is therefore essential to develop an accurate Marketing Mix for selling to rural Indians. behavioural change needs to be at the forefront of any strategy. Further. profits to the producers and benefits for the stakeholders. Product “Authentic marketing is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers. When developing . The various product levels as outlined by Philips Kotler. potential markets need to be found and at times.The rural market is not a homogenous set of customers with preferences frozen in time. Expected product. due to the diversity of this market.However. the market still remains largely unexploited. ability and willingness to pay.

sub-standard products and cheap clones of their urban counterparts. shampoos or soaps with distinctive. marketers must identify the typical rural specific needs. their buying criteria. Urban products cannot be dumped onto rural markets without modifications. On average. Systematic. . Most of the times in the the augmented urban market product the product is offered at level where the objective of the product offering is to exceed the customer expectation. due to the low level of incomes and literacy levels. Tailor-made products are better received by the rural audience as the consumers feel empowered and tend to identify with the offering. intensity of use is quite low. strong rose or jasmine perfumes are very popular with the rural women in South India. Also. For instance. The urban women do not identify as strongly with these perfumes. Sachetization is also a distinctly rural-driven phenomenon. Habits take time to change and making unit sachet packs affordable is the key to inducing trial and purchase. the immediate level to be operated is the Expected product where his expectations are met.products in any category. But in the rural markets of India which have been till date characterized by the absence of the choice. in-depth research that can help understand the depths of the mind of the villagers. As demand in several categories is being created. rural folk would use a shampoo only once a week. it is imperative that the basic needs of the consumer are met.

This has severely restricted the availability of cost effective specialty fertilizers of global standards to Indian farmers. This would “redefine value” in the minds of the consumer and tremendously increase product acceptability. In the case of fertilizers for instance. whose needs are recognized and for which the consumer is willing to pay (value-adding features). with the objective of offering the lowest possible price. though levels of deficiency of nutrients have increased significantly over the past decade. Product developers should aim at eliminating all the cost-adding features. What is required is to introduce a product with ‘essential’ features.e. no significant changes in formulations notified under the Fertilizer Control Order have taken place. A move to . i. Technological know-how for manufacture of such fertilizers exists within the country.. A common error has been to launch a completely stripped down version of the urban product in the rural market. Product development is severely constrained by legislation in the case of agricultural inputs like fertilizers. insecticides and pesticides. farmers using modern farming practices are unable to get an assured supply of such farm inputs due to draconian legislation. This is not what a rural consumer wants. features which a consumer is unwilling to pay for as he sees no obvious utility. However.purchase patterns and purchasing power are an essential input while developing rural specific products or services.

The implication is that pack sizes and price points are critical to sales. Daily wage earners tend to have little stock of money. and therefore tend to make purchases only to meet their daily needs. Thus for any company wishing to develop its product portfolio. that rural consumers view the purchase-tradeoff dilemma across a much wider range of product categories. and importantly. P artnership A lliances Linkages Pricing A significant portion of the rural population is paid in daily wages. the . Product life cycles as are becoming shorter and these are having their impact on company life cycles. allegiance to the classic American P-A-L Principle of is a basis for survival.liberalize the sector could perhaps consider the accepted worldwide norm of allowing manufacturers with a strong R&D base to decide their own formulations with the government machinery conducting checks on market samples of finished products to ensure that they live up to the labelled specifications. This would be a major policy initiative that would give a huge impetus to innovative product development in the farm sector. As a result.

He is not simply looking for the cheapest product in every category. but also other products that consumers may consider one-off luxury purchases such as shampoo. Pricing therefore is a direct function of factors including cost-benefit advantage and opportunity cost. In the case of consumer durable one way is to work through rural bank and offer higher purchase terms to consumer. He understands and demands value for money in every purchase that he makes. that buying cheap is not the primary objective. the Value for money is the most important concept that will differentiate the successful brand from the rest. Price sensitivity is extremely high and comparison with competitive prices is common. BUDGET CONSCIOUS CONSUMER STATUS SEEKING CONSUMERS Every marketer must realize that the rural consumer is not a miser. It is certain however. Pricing offered to consumers should be for value offerings that are affordable. In short. it is . a beverage manufacturer is not only competing with other manufacturers in its category. So marketer will have to examine method by which he can make the product more affordable.nature of competition is much greater. The perceived utility or value of the product or service is the ultimate decision making factor. Rather. Consumers seem to create narrow psychological price bands in their minds for product groups and price elasticity beyond the extreme price points is very high.

Because of this. At these times. however. . the unit price is critical and so is the pack size. It must be remembered that the rural consumer does not have a budget problem.“buying smart”. he is capable of making high volume purchases. in the lean season when there is a cash flow crunch. Impulse buys and purchases for conspicuous consumption are also extremely few and far Between considering the “value for money” factor that reigns supreme in most rural purchase decisions. marketers need to provide financial products. habits and preferences leading to different expectations of every segment of the population. At all times. This is because the village folk receive funds only twice a year. schemes or solutions that suit the needs of the rural population. The rural consumer likes to touch and feel a product before making a choice. A study revealed that the average rural consumer takes approximately 2 years to decide on buying a watch! He will not do so unless he is totally convinced that he is getting value for Money. However. These barriers stem from the fact that rural markets vary immensely in Terms of tastes. one fact is certain across all areas. Promotions Advertising & There are a lot of barriers that militate against homogenous media and message delivery. He has a cash flow problem.

Alliances with cottage industries. This is required because a large proportion of the rural population cannot read or write. in rural India. The classic conundrums of reach and coverage of the media are shattered. dharmsalas. it is very important for companies to wise-up on emerging technologies. Technology must be used to prepare a database of customers and their requirements. Demonstrations establish the credentials of any new technology used in developing the product. More importantly. It has in fact become a medium to attract larger audiences for a product demonstration. post offices and police stations for advertising have also helped immensely. .Demonstrations are undoubtedly the most effective promotional tool that shapes purchase decisions of the rural population. In today’s information era. experience has proved time and time again that word of mouth is the key influencer. The use of video using mobile vans and even large screen video walls at events should be arranged. panchayats. Several creative communication media have been used by various companies to tackle the problem of having to use visual communication and non-verbal communication to reach the rural audience.

Lucky draws and gift schemes are a major hit in most states. free samples. etc. off season discounts. The use of local idioms and colloquial expressions are an excellent way to strike a rapport with the rural consumer and must be borne in mind when developing media plans and public relations programmes. The re-use capacity and colour of the container in which the product is packed is also a crucial factor. This becomes all the more important when in rural India. If the intermediary understands and is constantly reminded about your product. In fact. reusable packaging is considered a major aid in promoting sales for products in the rural market. the point at which the customer actually comes in contact with a product may not be the point at which the sale is affected. the overlap between the product categories sold in a single outlet in tremendous. more often than not. Consumer and Trade schemes that Incentivise Spending using discount coupons. encourage spending. a store may call itself as a grocery store but will stock everything from groceries to vegetables to fertilizers and may at times even stock medicines. For instance. then the end user will not be allowed to forget.Intermediaries are the foundation to rural distribution. No high voltage publicity is . In such cases. The companies must reinforce this highly effective medium and use all their innovation and money tom develop more dramatic point of sale and point of contact material.

Youth power is becoming increasingly evident in villages. decider. There are other attributes in the promotion strategy which are explained as under: . The rural consumer is very down to earth but equally discerning and marketers need to step into the shoes of the rural folk while creating product promotion campaigns. Rural youth bring brand knowledge to the households. Another unique feature of rural markets is that the Decision making process is collective. The persons involved in the purchase process influencer. So marketers must address brand messages in their campaigns at several levels. buyer. several agribusiness companies have also started providing gift schemes with offers for free jewellery that influences the ladies to pressure the farmers to purchase agricultural inputs from select companies. one who pays can all be different.required. This promotion strategy thus makes women influence purchase decisions that they would ordinarily not be involved in. Apart from regular household goods. This has forced several companies to change the focus and positioning of their products and services towards this segment that is growing in absolute number and relative influence.

its features. Brooks Bond Special campaigns: During crop harvest and . banners. This is the reason why opinion leaders and word of mouth are thriving among rural consumers. posters. Mass media: In the present world mass media is a powerful medium of communication. The opinion leaders may be big landlords or politicians or progressive farmers. etc. 2. Personal selling and opinion In personal selling it is required that the potential users are identified and awareness is created among them about the product.1. leaders: marketing seasons it is beneficial to take up special promotion campaigns in rural areas. This can be achieved only by personal selling by highly motivated sales person. stickers. uses and benefits. An opinion leader in rural areas can be defined as a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. • Radio • Print media: Handbills and Booklets. In fact the word of mouth information holds lot validity in rural areas even today. • Cinema. 3. The following are the mass media generally used: • Television. Tractor owners (tonee) conducted by MRF Limited is one such example.

The largest such mela is the Maha Kumbh Mela which is visited by an average of 12 crore people.000 to Rs.carries out marches in rural areas with band. visitors at these melas spend between Rs. Is the audience at this mela fit for promotion of the product at hand? What are the psychographics of this audience? What is the motivational and behavioural impetus that brings visitors to each of these melas. On an average. India witnessed over 50. However. such melas are not suitable promotion media. This is . music and caparisoned elephants to promote their brand of tea.000 melas. it has been observed that melas are fit to generate product exposure.000 a day. 3 lakh people visited the annual mela at Navchadi which lasts for 7 days in Meerut. brand reminder and word of mouth. Mandi magic and Mela At last count. Of these 25.000 meals are held to signify religious. a caveat when an organization is considering using mela for marketing their products. for products that need concept marketing and those that have high prices. package familiarity. There is however. 50. cultural festivals as well as local fairs and events. 5. For example. On considering these questions.

Place Place is the major reason behind the evolution of rural marketing as a distinct discipline. There will be no reminder later. Neville Gomes. thus the general marketing theories can’t be applied directly in rural markets. distribution & consumption is very different from a town or city. Reaching the right place is the toughest part in today’s rural marketing. Rural markets imply complex logistical challenges that show up as high distribution costs. as most of the products reach up to the nearest townships of any village. People come to melas to have a good time and are not reminded of such high technology or high priced products when they return home. Most of the times. Managing Director of Multimedia Aquarius. Significance of Distribution . the rural retailers themselves go to the urban areas to procure these goods. but due to higher distribution costs. these products fails to reach the village as the distribution channel fails to put in the required efforts. A village as a place for promotion.because the time and the mood of the people that visit these melas are not right to digest technical information or for making large purchases. In the words of Mr. a large amount of qualitative judgment is indeed in planning promotions at melas by media planners. Thus. promotion at melas is like a “one night stand”.

Urban and Rural India both have approximately 3 million retail outlets. On the other hand. The diversity in the distribution of shops is the self-limiting factor in terms of servicing the rural distribution network. However.000 per outlet. Distribution must be strengthened and this would raise investment cost barriers for new entrants. the most crucial link in ensuring the success of rural marketing efforts is distribution. marketers are faced with the problem of feeding 3 million shops located in vastly diverse areas each of which records an average sale of only Rs. . The reason for this is very clear when we consider that on an average.3 lakh villages. pricing or promotion strategy. Rural India’s 3 million outlets are located in 6. Thus.5. Further compounding this problem is the fact that even this meager sale is mostly on credit.000 towns where these outlets are located.No matter how well devised a company’s product. the selection and use of distribution channels is a nightmare. In Rural India. Urban India has only 4.

district headquarters.The distribution of outlets however shows that a marketer need not be present in all markets at all times. Rural wealth and demand is concentrated typically at satellite towns. Being present in 6 lakh villages is virtually impossible for an organization of any size. assembly markets and such central locations. Rural distribution has a rigid hierarchy of markets that make channel decisions relatively structured. .

Keeping the hierarchy in mind will help decide the optimum . After such sale of produce. They do not expect such items to be present in every village. A television distributor must be present at assembly markets which are much smaller in number. more controllable. This is due to the fact that it is at assembly markets that auction yards are present where the farmers congregate to sell their output. For durables where the outlay involved is typically large. A TV will not be sold there as the cash flow does not exist at that point in the hierarchy of markets. easier to reach and service. Rural folk are habituated to traveling once a week for their weekly purchases to a satellite town. It is therefore not necessary for a marketer of TV sets to take their distribution channel all the way down to the village shop. the purchase would be made in an assembly market for reasons of choice and availability of adequate cash flow.It is essential for rural marketing companies to understand this hierarchy. they are cash rich and can afford to make such purchases.

Thus. • Focus on select villages. this positioning of technology is very crucial. Companies are coming up with new technology and they are properly communicating it to the customer. The important thing is that appropriate segmentation basis need to be applied.level of penetration required to reach a critical mass of rural consumers. The organization can do the following thing to start with: • Focus on select markets. MARKETING STRATEGIES TO CAPTURE RURAL INDIA • SEGMENTATION MARKET OF RURAL The first step is to develop & implement any strategy for the rural market should include the appropriate segmentation of the rural market. Different product categories have different rural markets to cater to & these can be selected by applying different criteria of segmentation. There is a trade of between Quality a customer perceives and a company wants to communicate. The perception of the Indian about the • BY COMMUNICATING CHANGING QUALITY PERCEPTION AND .

Cinthol etc. The companies have realized the importance of proper communication in local language for promoting their products. even when they can use Neem or Babool sticks or Gudakhu. is the paradigm changing and customer no longer price sensitive? Indian customer was never price • BY TARGET PERCEPTION CHANGING . even when they can use locally manufactured very low priced soaps. villagers are using soaps like Nima rose. Their main focus is to change the Indian customer outlook about quality. Now they know the difference between the products and the utilities derived out of it. Breeze. They have started selling the concept of quality with proper communication. With their promotion.desired product is changing. • BY PROPER INDIAN LANGUAG E COMMUNICATION IN If one go to villages they will see that villagers using Toothpaste. As a rural Indian customer always wanted value for money with the changed perception. Villagers are constantly looking forward for new branded products. rural customer started asking for value for money. one can notice difference in current market scenario. What can one infer from these incidents.

sensitive. As "Motorola" has launched. Moreover. However. They are happy with such a high technology that can fulfil their need. "Nokia" has launched a simple product. • BY UNDERSTANDING AND SOCIAL VALUES CULTURAL The customers want value for money. if the seller provides frills free of cost they are happy with that. Thus. to promote their brands. but they want value for money. rural people are emotional and sensitive. seven models of Cellular Phones of high technology but none took off. they are exploiting social and cultural values. They aim for the basic functionality. They are ready to pay premium for the product if the product is offering some extra utility for the premium. which has captured the market. Cultural values play major role in deciding what to buy. On the other hand. Companies have recognized that social and cultural values have a very strong hold on the people. • BY PROVIDING WANT WHAT CUSTOMER • BY PROMOTING PRODUCTS INDIAN MODELS AND ACTORS WITH . They do not see any value in frills associated with the products.

ITC is promoting Indian cricket team for years. With this. Nokia has designed a new cellular phone 5110. all the best". with the India tri-colour and a ringing tone of "Sare Jahan se achcha". Diana Hyden and Shahrukh Khan are chosen as a brand ambassador for MNC quartz clock maker "OMEGA" even though when they have models like Cindy Crawford. Similarly. MNCs are associating themselves with India by talking about India. • BY PROMOTING TEAM INDIAN SPORTS . during world cup they have launched a campaign "Jeeta hai jitega apna Hindustan India India India". M-TV during Independence Day and Republic daytime make their logo with Indian tri-colour. they influence Indian mindset. • BY ASSOCIATING INDIA THEMSELVES WITH Companies are promoting Indian sports teams so that they can associate themselves with India. LG has launched a campaign "LG ki Dua. actors for advertisements as this helps them to show themselves as an Indian company.Companies are picking up Indian models. Whirlpool has also launched a campaign during world cup. by explicitly saying that they are Indian.

In the past one year. Marathi and Tamil tongue.Companies are now talking about normal India. LG has sold one lakh 20-inch • BY GIVING BRANDS INDIAN WORDS FOR . It is a normal tendency of an Indian to try to associate him/her with the product. he /she become loyal to it. • BY TALKING INDIAN ABOUT A NORMAL Many companies are developing rural-specific products. Keeping into consideration the requirements. a firm develops these products. and to withstand long power cuts. keep cooked food fresh. That is why companies like Daewoo based their advertisements on a normal Indian family. • BY DEVELOPING SPECIFIC PRODUCT S RURAL- Companies use Indian words for brands. The word is a part of the Bengali. Like LG has used India brand name "Sampoorna" for its newly launched TV. Hindi. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water. If he/she can visualize himself/herself with the product.

but later on they realized that to survive in the market and to compete with their competitor they have to rejuvenate these brands. LIC uses puppets to educate rural masses about its insurance policies. Citra and Limca so that they can kill these brands. Brook • BY EFFECTIVE COMMUNICATION MEDIA . The traditional media include melas.Sampoorna TVs. and e-chaupal. Gold Spot. They can either go for the traditional media or the modern media. Similarly Coke has acquired Thumps up. radio.000. puppetry. As well as trust of people. Govt of India uses puppetry in its campaigns to press ahead social issues. while the modern media includes TV. folk theatre etc. As Indian brands are operating in India for a long time and they enjoy a good reputation in India. Electrolux has acquired two Indian brands Kelvinator and Allwyn this has gave them the well-established distribution channel. all in towns with a population of around 10. MNCs have found that it is much easier for them to operate in India if they acquire an Established Indian Brand. as people believe these brands. • BY ACQUIRING BRANDS INDIAN Media Rural marketing is being used by companies.

and Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India. MNC shoe giants. Local Baniya" only they can succeed. However. They have to reach the "local Paan wala. They have to reach to local cities with low priced products. The distribution channel could be big scale Super markets. and to capture the market share in India they have to go the local market shoe sellers.Bond Lipton India ltd used magicians electively for launch of Kadak Chap Tea in Etawah district. Proper distribution channels are recognized by companies. soon they realized that to succeed in India they have to reach the nook and the corner of the country. they thought that a similar system can be grown in India. they were wrong. In between such a show. Adidas. the lights are switched of and a torch is flashed in the dark (EVEREADYs tact). • BY ADOPTING LOCALISED WAY OF DISTRIBUTIN G MNCs have realized that in India celebrities enjoyed a great popularity so they now associate themselves with Indian celebrities. Reebok. a JV of Gillette and Luxor has launched 500 "Gajgamini" ranges of • BY ASSOCIATING WITH INDIAN CELEBRITIES THEMSELVES . Recently Luxor Writing Instruments Ltd.

The message is simple and clean. Makbul Fida Hussain a renowned painter who has created "Gajgamini" range of paintings. PEPSI and TATA traders advertise their products through paintings. Rural people like the sight of bright colors. This pen is signed by Mr. Companies take advantage of such events to market their products. NCAER estimates that around half of items sold in these melas are FMCG products and consumer durables. 5000. • MELA S A picture is worth thousand words. priced at Rs. Companies are promoting players like Bhaichung Bhutia.Parker Sonnet Hussain special edition fountain pens. Dabur uses these events to sell products like JANAM GHUTI (Gripe water). Escorts also display its products like tractors and motorcycles in such melas. so that they can associate their name with players like him and get popularity. COKE. • PAINTING S Product Strategies . who is promoted by Reebok. Melas are places where villagers gather once in a while for shopping.

pickles. Small unit : Given the low per capita income & purchasing habits of the rural consumers. etc. rough roads & frequent power fluctuations. This method has been tested by products life shampoos. experiment with new products. Thus. They allow consumers to buy only what they need. 2. & conserve cash at the same time. The small unit packing will definitely attract a large number of rural consumers. small unit packages stand a good chance of acceptance in rural market.00 pack has more sales as compared to the large pack. New packing product Keeping in view the rural life style the manufacturer and the marketing men can think in terms of new product designs. biscuits. Small packing stands a good chance of acceptance in rural markets. The advantage is that the price is low and the rural consumer can easily afford it. can be classified as follows: 1. Single serve packets or sachets are enormously popular in India. 3. which can be employed to develop or modify the products to targets the rural market. all these designs: . Also the Red Label Rs.The specific strategies. Vicks cough drops in single tablets. The rural product usage environment is tough because of rough handling. This is because it is very affordable for the lower income group with the deepest market reach making easy access to the end user satisfying him. tooth paste.

in some of the economically priced models in order to cater to the semi-urban or rural consumers. Developed and introduced a products: .environmental factors must be considered while developing the products meant for rural audience. This is in real terms. The experience of torch light dry battery cell manufacturers supports this because the rural consumers preferred dry battery cells which are heavier than the lighter ones. The product should be sturdy enough to stand rough handling. It is also introduces messaging in Hindi language now. Sturdiness of a product either or appearance is an important for the rural consumers. transportation & storage. 3. Its design has been modified to protect it against rough usage in rural environment. heavier weight meant that it has more over and durability. it is dust resistant & has a small torch light in view of the frequent power cuts in rural India. For them. Nokia’s 1100 model is a very good example of a customized model for rural markets. 4. thinking global & acting local. Sturdy : Sturdiness of a product is an important factor for rural consumers. Utility products oriented The rural consumers are more concerned with utility of the product and its appearance Philips India Ltd.

The fertilizers companies normally use a logo on the fertilizer bags though fertilizers have to be sold only on generic names.low cost medium wave receiver named BAHADUR during the early seventies.g.: Coca-Cola name targeted the whole Indian rural market with the positioning of “Thanda Matlab Coca-Cola” advertisements because most of the villagers say when wanting a drink refer to it as Thanda…… so Coca-cola used that word. 5 . Nirma made a peeli tikki especially for those peeli tikki users who might have experienced better cleanliness with the yellow colored bar as compared to the blue one although the actual difference is only of the color. Pricing strategies . the rural consumers do give their own brand name on the name of an item. A brand name or a logo is very important for a rural consumer for it can be easily remembered. Initially the sales were good but declined subsequently. e. Brand :For identification. Many a time’s rural consumers ask for peeli tikki in case of conventional and detergent washing soap. On investigation it was found that the rural consumer bought radios not only for information and news but also for entertainment.

this is a common strategy widely adopted by many manufacturing and marketing concerns. Application of value : in food industry. tea. engineering 4. so that a larger segment can afford it. The price can be kept low by low unit packaging’s like paisa pack of tea. Low cost/ cheap : This follows from the product strategy. 3. etc. For example. The containers can be put to multipurpose uses. vicks 5 grams tin. Such measures can a significant impact in the rural market. but the nutrition content of both is the same. ghee etc can be reused. 2. Similarly the packages of edible oil. expanding the market. thus. The basic aim is to reduce the value of the product.1. Pet jars free with the Hasmukhrai and Co Tea. Ariel Super Compact. shampoo sachets. coffee. Large volume-low margins (Rapid or slow :Marketers have to focus on penetration strategy) . the rural people can efficiently reuse the plastic bottle of hair oil. Milk protein is expensive while Soya protein is cheaper. Refill products packs / Reusable : In urban areas packaging most of the health drinks are available. Soya protein is being used instead of milk protein.

this strategy is delivering very good results. Ensuring price : Rural retailers. most of the times. Most often. or by ensuring the availability of products at the retail outlets directly. 5. the strategy should be to cut down the production. charges more than the MRP. 7.generating large volumes & not big profit margins on individual products. in the rural markets of India. then they can still generate good returns on the capital employed. then it can work in rural market. 6 . Overall efficiency & passing on benefits to consumers : For rural products. If an organization gets the price point right. The manufacture has to ensure price compliance either through promotional campaigns. compliance . it has been observed that advertising has less to do with product sales in the rural areas. Low volume-low price strategy : This strategy of reducing prices by reducing the package size in order to make it appear more affordable. as was done by Coca Cola. In categories where maintaining the price point is extremely critical. If they price their product at a level which can lead to good volumes. is delivering very good results for a large number of FMCG product categories. distribution & advertising costs & passing on these benefits to the customers to further increase the turnover.

The following strategies can be considered while developing promotional campaigns for the rural markets: • Think Local Global Act Rural population is diverse. which can be easily understood. • Think Idiom in Local This is the need of the advertising professionals who can think like the rural people. For that. such as family-love. The only we can have insights like ‘ Thanda matlab Coca Cola’ . but the commonalities of their ethos & simple living habits need to be understood for advertising to succeed. the theme of the advertisement needs to revolve among universal themes. But the context. There should be the use of language writers who understands the rural & regional pulse better. & they should not include any confusing . storyline. language & idioms should be such that the rural audience of different rural market segments can relate to.Promotion strategies Customized promotional media & messages need to be developed by the organizations to effectively target the rural market. • Simplicity Clarity & All promotional messages targeted at rural audience need to be simple & clear.

The theme of the story line can be about how the product can solve the problems of the rural consumers. in less time can easily confuse them & leave them bewildered. . It is preferable that it has only a few propositions at a time. That is why Govinda in the Mirinda as boosted the sales of the drink in the rural markets. An organization might spend a lot of money in hiring a brand ambassador only to find out later that it had little impact on the rural consumer. Promotional message should highlight only the functional values of the product & explains how those values can make the consumer’s life even better & solve any of his problems. Bombarding rural consumers with too much. • Narrative Story Style The promotional message can be delivered in the form of an entertaining story with a message depicting how the brand delivers “larger good” to the family & society.elements. • Choice of Ambassador Brand Brand Ambassador for the rural markets need to be picked carefully as urban successes might not get replicated in the rural markets.

What has been found is that if we have to serve the rural consumer we will have to take our products to him through the channels that he is using and some innovative ways of getting to him. • • The marketers were of the opinion that the villagers would come to nearby towns and buy the products that they want. Unfortunately. Lack of proper retail outlets Lack of mass media infrastructure. namely. Lack of roads connecting villages to nearest townships. . it is almost impossible to transplant strategies which work successfully in urban markets onto rural markets. The following distribution strategies formulated for the rural category.Many companies view the rural markets as great opportunity for expanding their sales but find distribution as a major problem. extensive retailing and sustained pull generation through mass media advertising. Large distances between villages. The road blocks to reach the rural customers are: • • • Distribution Strategy Lack of adequate transport facilities.

000 villages. 3. villages with lesser populations can be added. which have a population of 2000 persons & above each. 2. : Use of co-operative societies: There are over 3 lacks co-operative societies operating in rural areas for different purposes like marketing cooperatives. to the extent of about 40 to 45 percent. These cooperatives have an arrangement for centralized procurement and distribution through their respective state level federation. but the rural population covered will be substantial. Coverage of villages with 2000 and above Ideally.1. Therefore. farmer’s service cooperatives and other multipurpose cooperatives. With a distribution network in about 55. coverage of villages with up to 2000 and above population could be the break-even point for a distribution setup. Such state level federation can be motivated to procure and distribute consumables items and . companies or distributors can carefully examine the market potential of different villages & target the villages that can be served in a financially viable manner through an organized distribution effort. This strategy is good to begin with & then subsequently. one can cover about 25 crores rural consumers. By doing so the percentage of villages covered comes to only 10% of all the villages. Segmentation the number of villages in India is huge population : & it is not viable to contact & serve all villages directly.

5. The purpose of PDS is to make available essential commodities like food grains. Many of the societies extend credit to the members for purchases. The shops that distribute these commodities are called fair price shops. The rural consumer who has tractors. these outlets also stock consumables agricultural inputs like fertilizers. oil-engine pump sets and mopeds frequent these outlets for their requirement. It is estimated that there are about 450 such outlets in operation in the country. Here again there is an arrangement for centralized procurement and distribution. pesticides and seeds. lubricants. PDS in the country is fairly well organized. edible oils and others to the consumers at a reasonable price. The revamped PDS places more emphasis on reaching remote rural areas like the hills and tribal’s. These . co-operatives as well as private entrepreneurs. sugar.low value durable items to the members to the society for serving to the rural consumers. In addition to petrol/diesel. kerosene. Utilization of public distributory system: The Utilization of multipurpose distribution centers by petroleum/oil companies: In order to cater to the rural areas the petroleum/oil companies have evolved a concept of multipurpose distribution centers in rural areas. 4. The manufacturing and marketing men should explore effective utilization of PDS. These shops are run by the state civil Supplies Corporation.

Distribution up to feeder markets/mandi towns: Keeping in view the hierarchy of markets for the rural consumers. While shandies/heaths are held a particular day every week. Only temporary shops come up selling goods of all kinds. bullock-carts. Promotion can be taken. The rural customers visit these towns at regular intervals not only for selling the agricultural produce but also for purchasing cloth. hardware. 6. radios. depending upon the township. Jathras and melas are held once or twice a year for longer durations.outlets can be profitably utilized for selling consumables and durable items also. as there will be ready captive audience. jewelry. It can be beneficial for companies to organize sales of their product at such places. camelbacks etc. torch cells and other durables and consumer products. Such places attract large number of itinerant merchants. the feeder markets and mandi towns offer excellent scope for distribution. From the feeder markets and mandi towns the stockiest or wholesaler can arrange for distribution to the village shops in the interior places. cycles. This distribution can be done by mopeds. For convincing the : . Shandies/Haaths/Jathras/Melas These are places where the rural consumers congregate as a rule. They are normally timed with religious festivals. 7.

Kumbh Mela at Hardwar in U. buying in bulk for. it is an attractive place to those who want to buy second hand durables and to those who prefer barter transactions. • Attractive: The weekend shopping is not only convenient but also entertaining. There are 50 such big rural fairs held in various parts of country. It is estimated that over 5.P. Further the freshness of the produce. Merits : • Convenience: The entire market can be related to large departmental stores in cities. In respect of transactions. where the advantage is a one-stop shopping exercise.000 fairs are held in the country and the estimated attendance is about 100 million rural consumers. Afterwards. . These outlets crop up every week. providing consumers immense choice and prices. which attract urbanite also like ‘Mankanavillaku’ in Malappara in Kerela. there will be entertainment. a week and the bargaining advantage attract the frugal and weeklong hard working rural folk. ‘Periya Kirthigai’ at Tiruparunkunaram in Tamil Nadu. The markets start early and will be over by lunch.manufacturing and marketing man with regard to the importance of these places from rural marketing point of view a visit to such places is necessary. Biggest fair ‘Pushkar Mela’ is estimated to attract over 10 million people.

This will enable them to share the cost of operating the van & on account of the sharing of the cost by four or five companies. farming equipment. Household goods. raw materials and a host of products are available. cattle. jewellery. Example of Varana Nagar in Maharashtra proved an eye opener in this regard where the sugar and milk co-operatives have totally changed the life style of people. The supermarket in Varana Nagar caters exclusively to rural consumers.• Availability : It is a market for everyone and for everything. clothes. the rural market through distribution vans can be unviable for a single company. as per the essential commodities act. Agricultural Input Dealers: Fertilizers should be made available to the farmers within the range of 4-5 km from their residence. both in cooperative & private sector. Similarly a cooperative supermarket called ‘Chintamani’ in Coimbatore (T.N) arranges free transit of rural consumers to the supermarket of their purchases. the entire operation can become financially viable for all the players. 9. This is why there are about 2 lakh fertilizer dealers in the country. machinery. different non-competing companies Joint distribution by Noncompeting Companies As the cost of distributing the products in : can come together to jointly operate distribution vans for the rural market. 8. . durables.

Whole seller. and Bazaars & • Wholesaler s The Indian wholesaler is principally a Galla – Kirana (foodgrain) merchant who sustains the belief that business is speculative rather than distributive in character. There was no need for active sales growth. As a result of retail based distribution was weakened. • Companies laid more emphasis or retailers in urban areas. THE OLD SETUP The historically available people & places for distribution include: . Vans. Retailer. He is a trader / commodity merchant rather than a distributor and therefore tends to support a brand during boom and withdraw support during slump.10 . . Shadies. Personal Selling Network: It is very successful distribution channel being developed by companies like HUL. as the salesmen are the resident of the village or community itself. The reason for this speculative character and dormant role of wholesalers are:• Indian market was largely sellers market. It adds a personal touch to the marketing. making it easier to sell the product & maximise sales for the company. who are very large in number.

His views are accepted and followed by the rural people whose awareness and media exposure levels are low. Village retailers have traditionally been among the most mobile of rural residents. • CREDIBILITY: He enjoys the confidence of the villagers. The occurrence of retail outlets was low.• Rural markets were neglected by many. Therefore many companies were dependent on whole sellers. He is seen as a businessman with profit motto. . • Shops within the village • Shops located on the main road and not exactly within the village • Kasba market or the tahsil market. • Retailers There are different kinds of retailers. The current need is to activate and develop wholesaler of the adjoining market as a distributor of products to rural retail outlets and build his loyalties to the company. The urban retailer is not trusted.

His view points are evaluated with other sources of information. Retailers helps in identification and selection of brands. there is less influence of shelf displays and point of purchase promotion. as . The role of urban retailer is weak. He is to intelligently drive home his recommendations.He cannot directly. Presence of spurious brands is an ample testimony to this view. The urban consumers have numerous sources of information.) • INFLUENCE LEADER: - His role as influence leader is indisputable. The urban retailer has a limited role as a brand promoter. Although retailer’s opinion is sought it may not be 100% believed and followed. From tender twig of neem to washing powder retailer testimony has been vital part of the product adoption process. • BRAND PROMOTER :- In rural market retailers remains the deciding factor to sell particular brand. recommend the brands. .

The relationship could extend beyond three generations.) • RELATIONSHIP MARKETER Village retailer practices relationship marketing. backed by historical credibility of the retailer as a product referral. It is through shelf displays and incentive offers that he has to push the brands.urban consumers do not trust him completely. we find urban retailer.) . He is one of the main sources of information and opinion as well as supplier of product and services. (As against this. wielding limited influence in changing the product choices and quality of life of consumers. • HARBINGER OF CHANGE In an environment relatively isolated from external developments. he has been harbinger of change. He caters to a set of buyers who have income from immovable land resources and would be static over a much longer time span.

one of the most important questions frequently asked is “How do we reach the large rural population through different media and methods? Mass Media Local Media Personalized Media Radio Haats. Melas. Fairs Direct Communication Cinema Wall Paintings Dealers Press Hoardings Sales Persons TV Leaflets Video Vans Folk Media Animal Parade Transit Media Researchers . Media Vehicles Through the rural markets offer big attractions to the marketers.• Vans Mobile vans long since. have an important place in distribution and promotion of the products in villages.

Nihar oil etc are some of the products advertised via television. Lux. TV. Lifebuoy. and Radio: 37%) and therefore the marketer has to consider the following points: • • Formal media Newspapers magazines: and English newspapers and magazines have negligible circulation in rural areas.It includes Press and print. and Point of purchase and Outdoor advertisement. Punjab Kesari in the North. Regional TV channels have become very popular Television : . Loksatta in Maharashtra and Tamil magazine Kumudam are very popular in rural areas. Radio.P. TV: 27%. HLL has been using TV to communicate with the rural masses.. Reach of formal media is low in rural households (Print: 18%. Examples: Newspapers: Eenadu in A. Dina Thanthi in Tamil Nadu. However local language newspapers and magazines are becoming popular among educated facilities in rural areas. • It has made a great impact and large audience has been exposed to this medium. Cinema: 30%. Cinema.

Zuari industries are some of the companies using radio communication programme. The farmers have a habit of listening to regional news/agricultural news in the morning and the late evening. • Radio: Radio reaches large population in rural areas at a relatively low cost. Example: Colgate.especially in Southern states. • Cinema: About 65% of the earnings from cinema are from rural markets. Many consumer goods companies and fertilizer companies are using these TV channels to reach the rural customer. There are specific programmes for farmers like Farm and Home/Krishi Darshan in regional languages. Example: Release of a pesticide ad at the time of outbreak of a pest or disease in crops. Examples: SUN TV is very popular even in rural areas in Tamil Nadu and Asianet is a preferred regional channel in Kerala. Jyoti Labs. Zandu Balm. The advertisement has to be released during this time to get maximum coverage in rural areas. Film viewing habits is high in certain states like Tamil Nadu. Karnataka and Andhra Pradesh. Village . Another advantage is that the radio commercial can be prepared at short notice to meet the changing needs of the rural folk.

theatres do roaring business during festivals by having four shows per day.500. Point purchase: of • Direct mail advertising: . tree boards. Symbols. dealer boards. product display boards etc. hoarding. wall painting. Ad slides can also be screened in village theatres. pictures and colours should be used in POPs meant for rural markets so that they can easily identify the products. Generally rural people prefer bright colours and the marketer should Utilize such cues. The monthly charge for showing an ad film is within Rs. festoons and product packs in the shops will catch the attention of prospective buyers. Examples: Films on products like Vicks. • This form of media. However a clutter of such POP materials of competing companies will not have the desired effect and is to be avoided. bus boards. is cost effective in rural areas. Lifebuoy and SPIC fertilizers are shown in rural cinema halls. • Outdoor advertisements: Display of hangings. which includes signboards. Apart from films. Local distributor or dealer who has good contacts with cinema houses in villages can easily monitor this activity.

since it stays there for a long time depending upon the weather conditions. The matter should be in the form of pictures. Wall paintings: . Retailers welcome painting of their shops so that the shop will look better.It is a way of passing on information relating to goods or services for sale. • It is an effective and economical medium for communication in rural areas. The cost of painting one square foot area is just Rs. branded coffee/tea. Companies marketing TV. Painting to be avoided during election time and rainy season. shops and schools are ideal places for painting and the company need not have to pay any rent for the same. The walls have to be painted at least one or two feet from ground level. It is better to take permission of the owner.10. Walls of farm houses. It is a medium employed by the advertiser to bring in a personal touch. slogans for catching the attention of people. fans. Very often the owner takes responsibility for taking care of the wall painting. In cities lot of junk mail is received by all of us and very often such mails are thrown into the dustbin whereas a villager get very few letters and he is receptive to such mailers. directly to potential customers through the medium of post.

. even the buses move at slow speed through village road. fertilizers etc. These boards are fixed to the trees on both sides of the village road at a height of about 10 feet from ground level. These boards attract the attention of slow moving vehicles like cycles. bullock carts and tractors and people walking on the road. pesticides. Companies to suit the specific requirements of rural communication are using a variety of such media effectively and some of the more important media and methods are given below. Considering the poor condition of roads.80. These are low priced promotion items and can be used by consumer goods companies too. Fertilizer and pesticide companies in rural areas extensively use tree boards. The cost of such a painted board is about Rs. • Informal/Rural media specific These media with effective reach and personalized communication will help in realizing the promotional objectives. use wall painting as promotion medium in rural areas. • Tree boards: These are painted boards of about two square feet in dimension having the picture or name or slogan of the product painted on it.toothpaste.

• Rural people prefer face-to-face communication and farm visits facilitate two-way communication. Potential customers in the village are identified and the company’s/distributor’s representative makes farm-tofarm visits and highlight the benefits of the products. Example: This approach has been found to be very effective for agricultural machinery. Many LIC agents and companies dealing with high value consumer durables have tried this method with success in rich rural areas. Very often the local dealer also joins the representative in making farm-to-farm visits. The dealer clarifies the terms and conditions of sale and also makes independent follow up visits for securing orders. • Farm-to-Farm/House-to-House visit: Group meetings of rural customers as well as prospects are an important part of interpersonal media. The person does not sell the product but only promotes the use of the product. animal health products and agricultural inputs. The person carries with him literature in local language and also samples of products. The company is able to pass on the message regarding benefits of the products to a large number of customers through such Group meeting: . The advantage is that the sales person can understand the needs and wants of the rural customer by directly discussing with him and answer his queries on products and services.

meetings. Group meeting of key customers are conducted by banks, agricultural inputs and machinery companies in rural areas. The bankers visit an identified village, get the village people in a common place and explain the various schemes to the villagers. Such meetings could be organized in prosperous villages for promoting consumer durables and two wheelers also. Example: MRF Tyres conduct tractor owners meet in villages to discuss repairs and maintenance of tractors.

Opinion leaders:

Villagers place more emphasis on the experience of

others who have used a product/brand to make purchase decision. Opinion leader is a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Such opinion leaders could be big landlords, bank official, panchayath-president, teachers, extension workers etc. Examples: a) Mahindra Tractors use bankers as opinion leaders for their product. b) Asian Paints promoted its Utsav brand of paint by painting the village Sarpanch’s house a few months prior to the launch if the branch to demonstrate that the paint does not peel off.

The Melas:

Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may be held only for a day or may extend over a week. Many companies have come out with

creative ideas for participating in such melas. Examples: a) Britannia promotes Tiger Brand Biscuits through melas. b) The mahakumbh at Allahabad is the biggest mela in India. HLL has put up 14 stalls in the mela grounds for promoting Lifebuoy. Handcarts have been deployed for increasing access.

These are well-appreciated form of entertainment available to the village people. The folk dance “Kuravan Kurathi” is popular in Tamil Nadu. The troupe consists of dancers, drummers and musicians and they move in a well-decorated van from one village to another village singing and dancing. In a day the troupe covers about 810 villages. As soon as the van reaches a village, film songs are played to attract the attention of the villages. This is followed by folk dances. Mike announcement is made about the company’s products and leaflets are distributed. After the dance programme, queries, if any, about the products are answered by the sales person. Folk dance programme costs about Rs.5000 per day and therefore these programmes are conducted during the peak season in selected villages. Examples: Fertilizer and pesticide companies organize folk dance programmes during peak season in selected markets. Thumps Up has sponsored Lavnis, the folk dance programme of

Folk dances:

Maharashtra and over 30 programmes have been arranged in selected rural markets.

AV unit is one of the effective tools for rural communication. The van is a mobile promotion station having facilities for screening films slides and mike publicity. The sales person makes a brief talk about situation in the village, the products and the benefits. The ad film is screened along with some popular film shots and this continues for about 30 minutes. At the end of the film show, he distributes handbills and answers queries of the customers. The whole operation takes about 1-2 hours depending upon the products under promotion, number of participants in the meeting and time taken for question and answers. The vans move to the next village for the second show. The cost of running a fully equipped AVP unit is about Rs.4000 per day and AVP van operation has to be considered as an investment for business development in rural areas. Example: Companies

Audio Visual Publicity Vans (AVP Vans):

The display contest has to be announced well in advance and promotional materials to be distributed to all the selected dealers in a geographical area. This is used for promoting consumer goods such as shampoos. A progressive farmer who is an opinion leader is selected and Field demonstration: . Colgate. to preserve the quality and to avoid any loss in quality and quantity. Its main purpose is to protect the product during transit. the contest lasts for about a month. • Product contests: display This is based on the extension principle “seeing is believing” and is one of the most effective methods to show the superiority of the company’s products to the customers.such as HLL. Another objective is to influence the dealer to stock the product and support the company in increasing the sales. soaps and toothpaste. • Package is an integral part of the product. Prizes for best displays are announced to motivate the dealers. The main purpose of this contest is to remind the customer to buy the product as soon as he enters the shop. A well-planned product display contest not only increases the involvement of dealers in the company’s products but also increases the sales during the contest period. and Phillips have made effective use of AVP vans for popularizing their products in rural areas.

are applied after making field observations. pesticides. e) Similarly effectiveness of detergents.the demonstration is conducted in his field in the presence of a group of farmers in the village. One of the main objectives of following modern agricultural practices is to increase the yield. The company organizes demonstrations in a piece of land belonging to progressive farmers. c) Hawkins pressure cooker has demonstration representatives who carry out demos in rural households. All the fertilizers. vacuum cleaners and mosquito coils could be promoted by demonstrations in selected markets. The representative receives 1% commission for every customer who approaches the dealer via demonstrations. • These are extension of field demonstrations. b) Demonstrating the use of tractor/implements for different agricultural operations. Just before harvest. nutrients etc. Examples: a) Spraying a particular brand of an insecticide against insect pests and showing the farmer how effectively the insects are controlled. The farmers observe the results in the field and the local dealer calls on them in their farms and persuades them to buy the particular brand of pesticide or fertilizer. all the important farmers are invited to see demonstration plot and see for themselves how the yields are better in the plot compared to Field days: . pressure cookers.

• Life-style marketing: Each rural market segment has certain special features i. They include village sports. weed. • Information centers: They provide latest information on cultivation of crops. prominent personalities and role models. They also provide information on farm implements. they share common life-style traits. diesel engines.e. seeds. Mineral water companies supplying clean drinking water during summer festivals in villages and Consumer goods companies sponsoring Kabaddi. Field demonstrations/field days consume lot of time and efforts and therefore have to be planned well. sprayers and tractors etc. Many consumer goods companies have opened show rooms in prosperous rural areas. Example: Hero Honda has opened extension counters with show room facilities in major rural markets. fertilizer application. management and control of pests and diseases. religious events.other fields. pesticides. fertilizers. Examples: Textile mills maintaining community gardens. Experienced agricultural graduates who make frequent visits to the field and advice farmers on modern agricultural practices manage the centers. Choosing media vehicles .

frequency. the different media can be classified into the following categories. Depending on the factor of reach & frequency. This categorization can help the marketer to make a decision about which type of media would be more suitable to the product & the organization. cost & availability. High reach High frequency • Jeep based advertising • Wall painting • Bus stand & bus panels • Haats • Hoardings • Postal branding Low reach High frequency • Co-operative notice board • Shop front painting • Tin plating – house • Dealer boards • Village boards • Well tiles • Calendars/labels .The choice of different media vehicles for any market is based on an analysis of the standard features like: reach.

the product of HUL covers 36%of the market share. the product of HUL was highly in demand. it could easily be concluded that LUX. This is then followed by LIFEBUOY. LUX.High reach Low frequency • Van based advertising • Melas • Direct to home • Folklore group • Exhibitions/created events Low reach Low frequency • Tin painting – tree/shops • Leaflets • Posters & banners • Streamers • Danglers FINDINGS AND ANALYSIS Which soap u prefer to use The reaction of people towards various SOAP brands can be tabulated in the following manner: BRANDS LUX DETTOL LIFEBUOY OTHERS PERCENTA 36 18 22 24 GE In the survey. After LUX. the other brands (EXCEPT LUX. DETTOL. the product . LIFEBUOY) covers 24%of the market share.

. I tried to differentiate amongst people with below average household income. average household income &above household income. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of SOAP brands available in the market.44% consumers demand family packs i. This data can be graphically explained with the help of the following bar graph: Which pack u prefers to use? In order to determine the income pattern of the consumers. However.3 in 1 pack.of HUL with a market share of 22%.which is then followed by DETTOL. the reaction of people towards various packs of SOAP can be tabulated in the following manner: PACK OF SOAPS SINGLE PACK FAMILY PACK ( 3 IN 1) PERCENTAGE 56 44 In the survey. the product of RECKITT BENCKISER with a market share of 18%.56% consumers demand single pack.e. This classification can be done on the basis of the daily expenditure that people make.

This is followed by. the product of TATA has a market share of 32%.TAJ MAHAL)with a market share of 22%.This data can be graphically explained with the help of the following bar graph: Which tea u prefers to use? The reaction of people towards various TEA brands can be tabulated in the following manner: BRANDS TATA TEA BROOKE BOND PERCENTA 32 28 18 22 GE TAJ MAHAL OTHERS In the survey. BROOKE BOND. This data can be graphically explained with the help of the following bar graph: Which tea pack u prefers to use? In order to determine the income pattern of the consumers. with a market share of 28%. it could easily be concluded that TATA TEA.This is finally followed by TAJ MAHAL.BROOKE BOND.Followed by other brands (EXCEPT TATA TEA. the reaction of people towards various TEA packs can be tabulated in the following manner: TEA PACKS SACHET MEDIUM PACK LARGE PACKS . it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of TEA brands available in the market. the product of HUL which holds18%of the market share. However.

PERCENTAGE 48 32 20 In the survey. I tried to differentiate amongst the people. This data can be graphically explained with the help of the following diagram: Which tooth paste u prefers to use? In the initial years. But from the last decade. A huge number of toothpastes of different companies are sold in rural market.However. datoons etc. 48%consumers demand sachet packs. 32%consumers demand medium pack. 20%consumers demand large pack. average household income & above household income. the preference of consumers towards toothpaste has been changed. the rural consumers preferred tooth powders. the reaction of people towards various TOOTH PASTES can be tabulated as follows: BRANDS PEPSODEN T PERCENTA 27 35 22 16 GE COLGATE CLOSE UP OTHERS . However.i. with below average household income. This classification can be done on the basis of the daily expenditure that people make.e. it can be concluded that sachets are most commonly used by the people .

it could easily be seen that COLGATE.This means that they are in a very tough competition. NESTLE. Which is then followed by others brands (EXCEPT PEPSODENT. This data can be graphically explained with the help of the following bar graph: Which coffee u prefers to use? The reaction of people towards various COFFEE brands can be tabulated in the following manner: BRANDS BRU NESTLE NESCAFE OTHERS PERCENTA 26 32 32 10 GE In the survey. Followed by CLOSE – UP. 26%of the market share.. the product of COLGATE PALMOLIVE is the market leader. the product of NESTLE S.In the survey that the researcher conducted.A. While the other brands hold only 10%of the market share. the product of HUL is demanded by the customers. COLGATE.& NESCAFE. which covers 35%of the total market. After that.A. CLOSE -UP). it can be easily concluded that all the brands are facing tough competition. which covers 16%of the total market share. . the product of HUL is demanded by the customers. shares equal market share of 32%each. which covers 22%of the market share. the product of HUL which holds. This is followed by BRU. another product of NESTLE S. PEPSODENT. which covers 27%of the market share.

POND ’s. other brands (EXCEPT. that I conducted. This is followed by AYUR. This is followed by. the brand of AYUR ACADEMY OF NATURAL BEAUTY (AANB) which holds 14%of the total market share. holds the major market with a share of 32%. it can easily be concluded that FAIR &LOVELY. which holds 28%of the market share. PONDS. another product of HUL. FAIR &LOVELY &AYUR).This data can be graphically explained with the help of the following bar graph: Which cream u prefers to use? The reaction of people towards various CREAM brands can be tabulated in the following manner: BRANDS PONDS FAIR & LOVELY PERCENTA GE 28 32 14 26 AYUR OTHERS In the survey. which captures 26%of the market share. This data can be graphically explained with the help of the following bar graph: Which hair oil u prefers to use? The reaction of people towards various HAIR OIL brands can be tabulated in the following manner: BRANDS PARACHUT DABUR DABUR OTHERS .This is followed by. the product of HUL.

This is followed by DABUR VATIKA.PERCENTA GE E AMLA VATIKA 37 29 19 15 In the survey. another product of BRITANNIA. This data can be graphically explained with the help of the following bar graph: Which biscuits u prefers to use? The reaction of people towards various BISCUITS brands can be tabulated in the following manner: BRANDS MARIE GOLD PERCENTA 24 21 38 17 GE GOOD DAY PARLE G OTHERS In the survey. it can easily be concluded that PARACHUTE. another product of DABUR which captures 19%of the market. the product of DABUR which captures 29%of the total market share. DABUR VATIKA) captures 15% of the market share. the product of MERICO captures 37%of the total market share. After that. a product of BRITANNIA which holds 24%of the market share. holds 21%of the market . DABUR AMLA. it can easily be concluded that PARLE-G. followed by other brands (EXCEPT PARACHUTE.This is followed by MARIE GOLD. This is followed by DABUR AMLA. the product of PARLE . GOOD DAY. And after that. holds a major market share of 38%.

This is followed by SURF.This is followed by TIDE.share. This is followed by other brands (EXCEPT MARIE GOLD. it could be easily concluded that RIN.TIDE)which captures 16%of the market share. This data can be graphically explained with the help of the following bar graph: Which detergent u prefers to use? The reaction of people towards various DETERGENT brands can be tabulated in the following manner: BRANDS SURF RIN TIDE OTHERS PERCENTA 27 35 22 16 GE In the survey.This is finally followed by other brands (EXCEPT SURF. the product of HUL which has a market share of 27%. This data can be graphically explained with the help of the following bar graph: Which shampoo u prefers to use? The reaction of people towards various SHAMPOO brands can be tabulated in the following manner: . PARLE-G) which hold a market share of 17%.RIN. GOOD DAY. the product of PROCTER & GAMBLE which has a market share of 27%. the product of HUL captures 35%of the total market share.

HEAD & SHOULDERS) with a market share of 14%. it can easily be concluded that CLINIC PLUS.This is followed by HEAD & SHOULDERS. This data can be graphically explained with the help of the following bar graph: Which pack u prefer to use? In order to determine the income pattern of the consumers.BRANDS CLINIC PLUS PERCENTA GE 33 25 28 14 SUNSILK HEAD & SHOULDER S OTHERS In the survey. the product of HUL. However. This is followed by SUNSILK. the product of PROCTER &GAMBLE which holds 28%of the market share. Finally followed by other brands (EXCEPT CLINIC PLUS. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of SHAMPOO brands available in the market. SUNSILK. the product of HUL which holds 25%of the market share. captures the major portion of the market with a market share of 33%. the reaction of people towards various SHAMPOO packs can be tabulated in the following manner: SHAMPOO SACHET SMALL PACKS PACK PERCENTA 23 32 28 17 MEDIUM PACK FAMILY PACK .

This data can be graphically explained with the help of the following bar graph: Which bicycle you prefer to use? The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS ATLAS HERO AVON OTHERS PERCENTA 37 33 22 08 .GE In the survey. 28% consumers demand medium pack. which holds 23%of the market share. I tried to differentiate amongst the people. This data can be graphically explained with the help of the following bar graph: Which Television you prefer to use ? The reaction of people towards various television brands can be tabulated in the following manner: BRANDS ONIDA BELTEK CROWN OTHERS PERCENTA 40 23 33 4 GE In the survey. However. which holds 33%of the market share. with below average household income. SONY etc) with a market share of 4%. This is followed by BELTEK. This classification can be done on the basis of the daily expenditure that people make. Finally followed by other brands (SAMSUNG.This is followed by CROWN. LG. captures the major portion of the market with a market share of 40%.17% consumers demand large packs. it can easily be concluded that TELEVISION of ONIDA. average household income & above household income. 32%consumers demand SMALL PACK.

captures the major portion of the market with a market share of 38%. This is followed by VIDEOCON. This data can be graphically explained with the help of the following bar graph: Which refrigerator you prefer to use? The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS GODREJ VIDEOCON KELVINAT OR PERCENTA GE 38 20 28 14 OTHERS In the survey. SAMSUNG etc ) with a market share of 14%. Finally followed by other brands (EXCEPT atlas. which holds 28%of the market share. which holds 20%of the market share. Finally followed by other brands (LG. it can easily be concluded that the REFRIGERATOR of GODREJ. captures the major portion of the market with a market share of 37%. This data can be graphically explained with the help of the following bar graph: Which wrist watch you prefer to use? .This is followed by KELVINATOR. This is followed by AVON .GE In the survey. it can easily be concluded that the BICYCLE of ATLAS. which holds 22%of the market share. which holds 33%of the market share. hero and avon ) with a market share of 8%.This is followed by HERO.

The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS HMT MAXIMA TITAN OTHERS PERCENTA 26 14 40 20 GE In the survey. it can easily be concluded that the WRIST WATCH of TITAN. captures the major portion of the market with a market share of 32%. which holds 28%of the market share. This is followed by MAXIMA. . MAXIMA AND TITAN) with a market share of 8%. which holds 14%of the market share. This is followed by KHAITAN. it can easily be concluded that the FANS of LOCAL COMPANIES. which holds 26%of the market share. This data can be graphically explained with the help of the following bar graph: Which fan you prefer to use? The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS LOCAL FANS PERCENTA 32 28 22 18 GE POLAR KHAITAN CROMPTO N FANS In the survey. captures the major portion of the market with a market share of 40%.This is followed by HMT.This is followed by POLAR. which holds 22%of the market share. Finally followed by CROMPTON with a market share of 18%. Finally followed by other brands (EXCEPT HMT.

It is necessary for all the major companies to provide those products which are easy to available and affordable to the consumers. The consumer wants those products which are long lasting. but at the same time the market size is much large in the rural area. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for.Conclusions Thus looking at the challenges and the opportunities which rural markets offer to the marketers it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. It is one of the reasons that the sell of sachet is much larger in the rural area in all segments. It is right that the profit margin is very low in the FMCG products. The rural market is very large in compare to the urban market as well as it is more challenging market. The companies can reduce their prices by cutting the costs on the packaging because the rural consumers don’t need . easy to use and cheaper. so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India. good. The income level of rural consumers is not as high as the income level of urban consumers that’s why they want low price goods.

HUL’s products are mainly in demand. who are from a well –off families. TATA holds a major share. So. So they prefer sticking to one brand. They consider the fact that rural consumers do not have that much money to be spent on these products. holds major portion of the FMCG market. In the case of COFFEE. . shampoo & cream ’ s category. large or family packs are still been bought by few consumers. medium &large).In this report. NESTLE & NESCAFE holds the major share. Rural consumers favor TATA because it is an old organization &it has gained a lot of BRAND EQUITY which finally creates BRAND LOYALTY. consumers do get brand loyal. In these products. However. because they provide these products in different packs. It holds major shares in the soap. because they do not want to take a risk with their tastes. considering the buying capacity of their consumers. they prefer buying the small or the medium packs. These organizations supply their products in various packs (small. In the case of TEA. Application of 4A* is also a major task for the major companies in this area. Rural market has an untapped potential like rain but it is different from the urban market so it requires the different marketing strategies and marketer has to meet the challenges to be successful in rural market. detergent. it can very easily be concluded that HUL.attractive packaging.

because they do not want to take a risk with their tastes. COLGATE PALMOLIVE holds a major market share. consumers do get brand loyal. SASTA AND TIKAU”. Consumers have confidence & trust in their product. which has created a good amount of goodwill for the organization. In the case of TOOTH PASTES.As in the case of BISCUITS. they prefer buying it. Therefore. So they prefer sticking to one brand. So it is a known product. Though it is the cheapest biscuit but still the taste is same and unique. so if any product suits them they prefer sticking to that product. in rural areas people generally don’t buy the company products. PARLE-G holds the major market share. they prefer to buy local products because of lack of knowledge and the main factor is because of income factor. MERICO holds the major market share. Illiteracy is also a . Rural consumers favor PARLE-G because it is an old organization & it has gained a lot of BRAND EQUITY which finally creates BRAND LOYALTY. “ACHA. And in the case of durable goods like TV. so rural consumers can se it according to their buying capacity. fan etc. In the case of HAIR OILS. In case of BISCUITS. Consumers are very concerned about their health. MERICO is a much known organization & its product PARACHUTE has reached all the places. which is quite low in rural areas. And this product is also available in various packs.

They should adapt rigorous marketing strategies. Suggestions &recommendations The researcher would like to suggest the following points. in order to sustain in the market. the demand of a product is also affected by its life cycle. However. it is the responsibility of the organization to create awareness amongst the consumers. because in the introduction stage. consumers are not much aware about the product. For them there is no such thing – “status symbol”. If the product is in the introduction stage. then it will definitely take some time to capture the market. Therefore. 2. there is a brand loyalty but the percentage is very low. .main factor. so that the organizations can easily sell their products to their consumers: 1. Although.

They should try to reach as many people as possible. Therefore. (*4A=Availability. Some Facts about the rural market 70 % of India’s population lives in 627000 villages in rural areas. Affordability. According to the NCAER projections. For the organizations that are not much popular amongst the consumers should adopt Sales Promotion. 4. Application of 4A’s has also become an important task for all the organizations. 5. Awareness) APPENDIX 1. as their marketing strategies. 6. Acceptability. There is immense competition in this sector. the number of middle and high-income households in rural India is expected to grow from 80 million . 90 % of the rural population is concentrated in villages with a population of less than 2000. the organizations should try to gain competitive advantage against their competitor’s.3.

While rural women may wear faded saris and little jewelry. Consumer goods companies introduced a transplanted product from developed markets.) Product Adoption: Hair products were introduced to rural India in an attempt to capitalize on a culture where hair grooming is taken extremely seriously by women.to 111 million by 2007.5% p. the 2-in-1 shampoo/conditioner. Companies thought that women would be attracted to this product because it was cost-effective. growing at 12%p. the same is expected to grow from 46 million to 59 million. Share of Rural market in overall consumption Toiletries Safety Razor Blades 48% Premium Soaps 24% Tooth Paste 20% Hair Oil 20% OTC products Medicated dress 25% Cold Analgesic 42% Antiseptic Creams 28% 2.a. In urban India. few step out without ensuring that their hair is in place. Packaged consumer product s: More than Rs. 2000 crores. however. 20000 crores growing at 2. initial sales were dismal. Consumption of pesticide s: 68. What companies failed to recognize is that most rural consumers had previously never used shampoo . Market for Non-food item s: Rs.000 tonnes.a.

and did not value or understand the full benefits of conditioner. For instance. Rather than try to change instilled consumer behavior. it stretches its imagination to find surprisingly different uses of some of the products. Indian rural market is still a puzzle to marketers. And the red-faced marketers admit that they actually sell their products in areas they would otherwise find difficult. • Buffaloes displayed at the haats for sale are dyed an immaculate black with Godrej hair dye. Hindustan Lever focused on product development strategies for rural consumers who still did not use shampoo in India. • Hotlinks is used as a health beverage to fatten up cattle in Bihar. The result was a new 2-in-1 soap. product developers focused on creating an opportunity. SOME FACTS STRANGE Amazing innovator With a queer psychology of purchase and usage. However. washing machines are being used to make frothy lassi in . a product that cleans the hair and body. simply because there are other uses for them. and is targeted towards consumers in rural areas. Their research indicated that a prevailing consumer habit in rural India was to use soap for hair and body care. In many a case. several years back. Consumers wanted a product that was convenient and low-cost. • In villages of Punjab.

bulk. • Iodex is rubbed into the skins of animals after a hard day's work to relieve Muscular pain. 3.) Communication Adaptation: Both, washing and for

taking bath - one requires water. Now for rural markets there are three sources of water - wells, hand pumps and ponds. For the first in the history of advertising - these were branded. Special stickers were put on the hand pumps, the walls of the wells were lined with advertising tiles and tinplates were put on all the trees surrounding the ponds. The idea was to advertise not only at the point of purchase but also at the time of consumption. This case shows that the brand was some how relating to the consumer. It was right there when the consumer wants it and responds to his needs when wanted. So the customer could also see the advertising when he was bathing or washing. Now, the customers who bought these brands got a sense of satisfaction by seeing their choice being advertised in these places while a question was put in the minds of the customers who had bought other brands.


Name: Occupation: Monthly salary: a. less than 10,000 • b.10,000 –25,000 • c.25,000 –50,000 • d.More than 50,000 • Address:
• • • •

• Which soap u prefer to use? Lux Lifebuoy Dettol Others • Which pack u prefer to use? Medium pack Family pack • Which tea u prefer to use? Taj mahal Tata tea Brooke bond Others • Which tea pack u prefer to use? Sachet Small pack Medium pack

Which tooth paste u prefers to use? Colgate Close up Pepsodent


Which coffee u prefers to use? Nestle Nescafe Bru Others Which cream u prefers to use? Ponds Fair and lovely Ayur Others Which hair oil u prefers to use? Parachute Dabur amla Dabur vatika Others Which biscuits u prefers to use? Good day Marie gold Parle G Others Which detergent u prefers to use? Surf Rin Tide Others

Which shampoo u prefers to use? Sunsilk Head and shoulders Clinic plus Others

• Which pack u prefers to use? Sachet Small pack Medium pack Which Television you prefer to use? Onida Beltek Crown Others • Which bicycle you prefer to use? Avon Atlas Hero Others • • Which refrigerator you prefer to use? Videocon Kelvinator Godrej Others • Which wrist watch you prefer to use? Titan Hmt Maxima Others • Which fan you prefer to use? Local fans Khaitan Polar Crompton .

BIBLIOGRAPHY • UTTAR PRADESH DEVELOPMENT AUTHORITY • http://business.mapsofindia.html .com/rural-economy/statedevelopment/marketing.

com/idea/challenges-in-rural-marketing .com/Faculty_Column/FC213/fc21 3.• • http://www.naukrihub.indianmba.html • • http://www.com/?Challenges-In-Ruralid=1092597 http://www.php?p=76117 • • Marketing & • http://ezinearticles.123eng.naukrihub.naukrihub.ibef.org/wiki/Rural_markets • http://www.infibeam.html http://www.com/india/fmcg/overview/ • http://www. importance &growth of rural markets • Purba basu.com/india/fmcg/ http://www.research on living style of rural consumers • http://toostep.com/forum/viewtopic.wikipedia.com/Books/info/t-pgopalaswamy/rural-marketing-environment-problemsstrategies/9788125916178.org/economy/ruralmarket.aspx http://en.com/india/fmcg/consumerclass/income/ • Aithal K Rajesh.

co.com/doc/1G1-162866493.com/product/display.co.• hl=en & a & 8 & • http://images.google.asp? productid=2106282 http://www.in/images? rlz=1W1ADSA_en & q=%20rural%20marketing %20indi revid=1994801258 & resnum=0 & um=1 & ie=UTFsa=N & tab=wi http://www.google.html http://www.encyclopedia.html .in/search? hl=e n & rlz=1W1ADSA_e n & q=india+infrastructure+report+200 9 & meta aq=2 & • • = & • aqi=g10 & aql= & oq=INDIA+INFRA & gs_rfai http://www.articlesbase.marketresearch.com/marketing-articles/ruralmarketing-a-critical-review-1102352.

com/indiabudget/infrastructure/india-rural-infrastructurereport.• http://business.mapsofindia.html .

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