TRICKLE DOWN APPROACH: Companies that focused mainly on urban areas for sales and

experienced growth in urban sales relied only on trickle-down approach for the rural market It is
believed that there is no need for designing marketing programs to reach rural areas

ASSUMPTIONS of the approach: Rural market can be ignored. The top-end rural market is small in
size and the sales from rural areas are only a bonus. • Top-end rural society culture is close to top-
end urban areas. • Rural buyers buy from nearby towns when they are at work or on a visit.

 UNDIFFERENTIATED APPROACH: Companies believed that to reach the rural market, urban market
strategies with minor modifications to suit rural conditions would serve the needs Rural
consumers can be attracted to buy the products offered to urban consumers by making them
available at the nearest point of purchase NCAER Survey conducted in 1994 showed that variables
in asset preferences of rural and urban consumers are minor FMCG and Durables are preferred by
all income groups of urban and rural areas
EXAMPLE:- Many soap users prefer medicinal value, cosmetic strength, and the feeling of freshness
in their washrooms. Medimix offers all these features and also claims that it is a beauty care
Ayurvedic family soap. Coco-Cola targets both urban and rural markets with the same drink.

3. DIFFERENTIATED APPROACH Marketers design separate marketing programs for rural markets.
With substantial improvements in villages in terms of affordability, accessibility, and acceptance,
companies have started giving a separate status to rural businesses. Integration of CSR with
Marketing Strategy.
DIFFERENTIATED APPROACH Emphasis on market research to understand rural markets and
consumers Segmentation, targeting, and positioning for rural markets Designing and
implementing the strategies related to 4Ps.

4. BOTTOM-OF-THE-PYRAMID APPROACH The key idea in this model is developing rural people into
entrepreneurs or participants in business This has led to a partnership between companies and
NGOs, Govt. Agencies and other social enterprises More than 4 billion people live at the bottom-of-
the-pyramid Innovation in technology, products, and services to BOP markets is required. BOP
markets must become the core business of any firm, not just CSR.

BOTTOM-OF-THE-PYRAMID APPROACH EXAMPLES: Companies target rural consumers in harvest

season as their purchasing power is high at that time. HUL’s Shakti Ammas (about 40000 in
number) got a basic smartphone to bill orders, manage inventory and get updates on promotional
schemes. Dabur India is getting rural people to try its products and experience the benefits. The
idea is to get word-of-mouth advertising. It also organized health camps to advertise toothpaste
and chyawanprash portfolios.

BOTTOM-OF-THE-PYRAMID APPROACH To develop and organize markets, companies have to work

in partnership. Empowering the poor through access to buying power, better choice and
opportunities can threaten existing local power structures and opposition can build quickly.
Companies that develop a local base and support stand a much better chance of long-term
success. Creating coordination of Non-Government Organizations, community leaders and local
leaders is important. These partnerships can leverage local knowledge and insights to help
develop sustainable businesses.