MARKETING STRATEGIES TO CAPTURE RURAL INDIA

1. SEGMENTATION OF RURAL MARKET

The first step is to develop and implement any strategy for the rural market should include the
appropriate segmentation of the rural market. The important thing is that appropriate segmentation
basis needs to be applied. Different product categories have different rural markets to cater to and
these can be selected by applying different criteria of segmentation. The organization can do the
following thing to start with:

 Focus on selectin market.

 Focus on selecting villages.

2. BY COMMUNICATING AND CHANGING QUALIT PERCEPTION

Companies are coming up with new technology and they are properly communicating it to the
customer. There is a trade of between quality a customer perceives and a company wants to
communicate. Thus, this position of techniques is very crucial. The perception of the Indian abut the
desired product is changing. Now they know the difference between the product and the utilities
derived out of it.

3. BY PROPER COMMUNICATION IN INDIAN LANGUAGE

The companies have realized the importance of proper communication in local language for
promoting their product. Their main focus is to change the Indian customer outlook about quality.
With their promotion, rural customer started asking for value for money.

4. BY TARGET CHANGING PERCEPTION

If one goes to villages, they will see that villagers using Toothpaste, even when they can use Neem, or
Bamboo sticks or Gudakhu, villagers are using soaps like Nima rose, Breeze, Cinthol etc. even when
they can use locally manufactured very low-price soaps. Villagers are constantly looking forward for
new branded products. What can one infer from them incident, is the paradigm changing and
customer no longer price sensitive? Indian customer was never price sensitive, but they want value
for money. They are ready to pay the premium for the product if the product is offering some extra
utility for the premium.

5. BY PROVIDING WHAT CUSTOMER WANTS

The customer want value for money. They do not see any value in frills associated with the products.
They aims for the basic functionality. However, if the seller provide frills free of cost they are happy
with that. They are happy with such a high technology that can fulfil their need. As “Motorola” has
launched, seven models of cellular phones of high technology but none took off. On the other hand,
“Nokia” has launched a simple product, which has captured the market.

6. BY PROMOTING PRODUCT WITH INDIAN MODELS AND ACTORS

Companies are picking up Indian models, actors for advertisements as this helps them to show
themselves as an Indian company. Diana Hyden and Shahrukh Khan are chosen as a brand
ambassador for MNC quartz clock maker “OMEGA” even through when they have models like Cindy
Crawford.

7. BY ASSOCIATING RHEMSELVES WITH INDIA

 MNCs are associating themselves with India by talking about India, by explicitly saying that they are
Indian. M-TV during Independence Day and republic day time makes their logo with Indian tri-colour.
Nokia has designed a new cellular pone 5110, with the India tri-colour and a ringing tone of “Sare
Jahan Se Achcha”.

8. BY UNDERSTANDING CULTURAL AND SOCIAL VALUES

Companies have recognized that social and cultural values have a strong hold on the people. Culture
value play major role in delaying what to buy. Moreover, rural people are emotional and sensitive.
Thus, to promote their brands, they are exploiting social and cultural value.

9. BY PROMOTING INDIAN SPORTS TEAM

Companies are promoting Indian sports teams so that they can associate themselves with India. With
this, they influence Indian mindset. LG has launched a campaign “ LG Ki Dua, all the best”. ITC is
promoting Indian cricket for year, during a world cup they have launched a campaign “ Jeeta hai
jitega apna Hindustan India India India”.

10. BY TALKING ABOUT A NORMAL INDIAN

Companies are now talking about normal India. It is a normal tendency of an Indian to try to
associate him/her with the product. If he/she can visualize himself/herself with the product, he/she
become loyal to it. That is why companies like Daewoo based their advertisements on a normal
Indian family.

11. BY DEVELOPING RURAL-SPECIFIC PRODUCTS

Many companies are developing rural-specific products. Keeping into consideration the
requirements, a firm develops these products. Electrolux is working on a made-for-India fridge to
serve basic proposes: chill drinking water, keep cooked food fresh, and to withstand long power cuts.

12. BY EFFECTIVE MEDIA COMMUNICATION

Media Rural marketing is being used by companies. They can either go for the traditional media or
the modern media. The traditional media include melas, puppetry, folk theatre etc. while the modern
media includes TV, radio, etc. LIC uses puppets to educate rural masses about its insurance policies.

PRODUCT STRATEGIES

The specific strategies, which can be employed to modify the products to targets the rural market,
can be classified as followed:

1. Small unit packing 4. Utility oriented products

2. New product design 5. Brand name
3. Sturdy products

PRICING STRATEGIES

1. Low cost/cheap product 5. Overall efficiency and passing on benefits

2. Refill packs/reusable packaging to consumers
3. Application of value engineering 6. Low volume-low price strategy
4. Large volume- low margins (Rapid or slow 7. Ensuring price compliance
penetration strategy)

PROMOTION STRATEGIES
Customized promotional media and messages need to be developed by the organizations to
effectively target the rural market. The following strategies can be considered while developing
promotional campaigns for the rural market:

1. Think global act local 4. Narrative story style

2. Think in local idiom 5. Choice of brand ambassador
3. Simplicity and clarity

DISTRIBUTION STRATEGY

Many company view the rural market as great opportunity for expanding their sales but find
distribution as a major problem. Unfortunately, it is almost impossible to transplant strategies which
work successfully in urban markets onto rural markets, namely, extensive retailing and sustained pull
generation through mass media advertising.

The road blocks to reach the rural customers are:

 Lack of adequate transport facilities.  Lack of mass media infrastructure.

 Lack of proper retail outlets.  Large distances between villages.

The following distribution strategies formulated for the rural categories.

1. Coverage of villages with 2000 and above population.

2. Segmentation
3. Use of co-operative societies
4. Utilization of public distribution system.
5. Utilization of multipurpose distribution centres by petroleum/oil companies.
6. Agricultural input dealers
7. Joint distribution by non-competing companies

FORMAL MEDIA

It includes Press and print, TV, Cinema, Radio, and point of purchase and outdoor advertisement.
Reach of formal media is low in rural households (Print: 18%, TV: 27%, Cinema: 30% and Radia:37%)
and therefore the marketer has to consider the following points:

 Newspaper and magazines  Point of purchase

 Television  Direct mail advertising
 Radio  Wall painting
 Outdoor advertisement  Tree broads

INFORMAL/RURAL SPECIFIC MEDIA

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:

 Farm-to farm/house to house visit.  Audio visual publicity vans (AVP Vans)
 Group meeting  Product display contests
 Opinion leaders  Field demonstration
 The melas  Field days
 The Haats  Information centres
 Folk dances  Life- style marketing