IED-IMBA-RAM-Module-4 (Syllabus)

Rural Market Research:

Market Research
Rural Market Information System
Rural Market Forecasting,
Glimpse of the Future Rural Marketing.

Market Research:

What is Market Research?

Market research is defined as the systematic collection, analysis, and
interpretation of data about a specific market, industry, or consumer segment. It
involves studying customers, competitors, and market dynamics to identify
opportunities, mitigate risks, and make informed business decisions.

Market research provides valuable insights into consumer behavior, preferences,

and market trends, helping organizations develop effective marketing strategies,
launch new products, and optimize their market positioning.

Key components of Market Research:

Market research typically involves several key components that contribute to a
comprehensive understanding of the market and its dynamics. These components
include:
• Market Segmentation: Identifying and dividing the target market into
distinct segments based on demographics, psychographics, behavior, or
other relevant characteristics. This helps tailor marketing strategies to
specific customer groups.

• Data Collection: Gathering relevant data from primary and secondary

sources. Primary data refers to information collected directly from the
target market through surveys, interviews, observations, or experiments.
Secondary data involves leveraging existing research, reports, industry
databases, or government sources.

• Research Design: Developing a research plan that outlines the objectives,

methodology, and timeline for conducting the research. This includes
selecting appropriate research methods, determining the sample size, and
defining the sampling technique.

• Qualitative Research: Utilizing techniques like interviews, focus groups,

or observations to gain in-depth insights into consumer attitudes, opinions,
motivations, and behaviors. Qualitative research helps explore underlying
reasons and provides a richer understanding of the market.

• Quantitative Research: Employing surveys, questionnaires, or structured

data analysis to gather numerical data on a larger scale. Quantitative
research enables statistical analysis, measurement of market trends, and
generation of quantitative insights and metrics.

• Competitive Analysis: Assessing competitors’ strategies, strengths,

weaknesses, market positioning, and offerings. This helps identify market
opportunities, potential threats, and areas for differentiation.

• Consumer Behaviour Analysis: Examining consumer decision-making

processes, buying habits, preferences, and satisfaction levels.
Understanding consumer behavior is crucial for developing effective
marketing strategies and targeted campaigns.

• Market Size and Forecasting: Estimating the total market size, growth
potential, and future trends. Market sizing helps assess the market’s
attractiveness and potential demand for products or services.

• Data Analysis: Applying statistical techniques and tools to analyze

collected data and derive meaningful insights. This includes data cleaning,
segmentation analysis, correlation analysis, regression analysis, and other
statistical methods.

• Reporting and Presentation: Summarizing research findings, insights,

and recommendations in a clear and concise manner. Effective
communication of research results ensures that stakeholders can make
informed decisions based on the findings.
These components work together to provide a holistic view of the market,
consumer behaviour, and competitive landscape, enabling businesses to make
informed decisions and develop effective marketing strategies.

Types of Market Research

Primary Research: Primary research involves collecting data directly from the
target market or consumer segment. It is customized and tailored to address
specific research objectives. Primary research methods include surveys,
interviews, focus groups, observations, and experiments. Primary research allows
for the collection of firsthand data and offers more control over the research
process.

Secondary Research: Secondary research involves gathering and analyzing

existing data that has been previously collected by other sources. This data can
include industry reports, government publications, academic studies, market
research reports, and online databases. Secondary research helps to gain a
broader understanding of the market, industry trends, and historical data. It is a
cost-effective way to access existing information and can provide a foundation for
further primary research.

Market Research Process

Step 1. Define Research Objectives

The first step in market research is to clearly define the research objectives. This
involves identifying the specific information needed, the target audience, and the
desired outcomes of the research.

Step 2. Design Research Plan

Once the objectives are defined, the next step is to design a research plan that
outlines the methodology, data collection techniques, sample size, and timeline.
The research plan should be tailored to address the research objectives and
provide reliable and valid data.

Step 3 Data Collection

In this stage, data is collected using primary or secondary research methods.

Primary research involves gathering data directly from respondents through
surveys, interviews, focus groups, or observations. Secondary research involves
gathering existing data from published sources, industry reports, or databases.

Step 4. Market research Analysis

Once the data is collected, it needs to be analyzed to identify patterns, trends,

and insights. This can involve quantitative research and analysis, such as
statistical techniques, or qualitative research and analysis, such as thematic
coding or content analysis. The goal is to derive meaningful insights from the data
that can inform decision-making.

Step 5. Final Market Research Insights

After analyzing the data, the next step is to interpret the findings and extract
actionable insights. This involves drawing conclusions, identifying key trends, and
relating them to the research objectives. The insights should provide valuable
information that guides marketing strategies, product development, or business
decisions.

Step 6. Reporting Research Findings

The final step is to present the research findings in a clear and concise manner. A
market research report is typically prepared, which includes an executive
summary, methodology, findings, insights, and recommendations. The report
should effectively communicate the research results to stakeholders and provide
actionable recommendations based on the insights.

Examples of Market Research

Here are some examples of market research. These examples illustrate the
diverse applications of market research across various industries and scenarios:

• Customer Satisfaction Market Research: A company conducts a

customer satisfaction survey to gather feedback from its existing
customers. The survey includes questions about their experience with the
product or service, overall satisfaction, likelihood to recommend, and areas
for improvement. The results help the company understand customer
satisfaction levels, identify key drivers of satisfaction, and take action to
enhance the customer experience.

• Pricing Market Research: A business is considering introducing a new

product or service and wants to determine the optimal pricing strategy.
They conduct pricing research, which involves surveys or conjoint analysis,
to gather data on customer price sensitivity, willingness to pay, and
perceptions of value. The research helps the company set competitive
pricing that aligns with customer expectations and maximizes profitability.

• Market Trend Research: A market research firm monitors industry trends

and analyzes market data to provide insights to clients. They track market
size, growth rates, industry dynamics, and consumer preferences through
secondary research. The analysis helps businesses understand market
trends, identify emerging opportunities or threats, and make informed
strategic decisions.

• Concept Testing Market Research: A company has developed several

product concepts and wants to evaluate their potential success before
investing in product development. They conduct concept testing research,
which involves presenting the concepts to a target audience through
surveys or focus groups. The research helps assess consumer interest,
perceived benefits, and purchase intent for each concept, allowing the
company to select the most promising one to pursue further.

• Competitor Market Research: A company wants to assess the strengths

and weaknesses of its competitors in the market. They conduct competitor
analysis, which involves gathering data on competitors’ products, pricing,
distribution channels, marketing strategies, and customer perceptions. The
insights obtained help the company benchmark against competitors,
identify areas of competitive advantage and develop strategies to
differentiate itself in the market.

• Ad Testing Market Research: A company is planning to launch a new

advertising campaign and wants to assess its effectiveness. They conduct
ad testing research, which involves presenting different versions of the ad
to a sample audience and gathering user or customer feedback on
message comprehension, brand recall, and emotional response. The
research helps the company optimize the ad campaign by identifying the
most impactful and persuasive elements.
 • Market Segmentation Research: A company wants to understand its
target market better and tailor marketing strategies to specific customer
segments. They conduct market segmentation research, which involves
analyzing demographic, psychographic, and behavioral data to identify
distinct customer segments with different needs, preferences, and buying
behaviors. The segmentation analysis helps the company develop targeted
marketing campaigns, messages, and product offerings for each segment.

Market Research Methods

Qualitative Market Research Methods

Qualitative market research methods focus on non-data intensive methods of

information gathering and analysis. These methods focus on a small sample of
respondents who are probed for an in-depth understanding of a subject. The goal
of such a method is to gain an in-depth understanding of the market and
consumer behaviour based on open-ended questions and discussions.

For example,

Focus groups, one-on-one interviews, case studies, etc are popular qualitative
methods of market research.

Quantitative Market Research Methods

Quantitative market research focuses on data-intensive methods that return solid

data that can be quantitatively analyzed in bulk. These methods often rely on a
large sample of respondents who answer a common questionnaire, which may
further have an internal logic to branch out to new questions based on answers to
previous questions.

Examples of quantitative market research methods are physical survey

questionnaires, online feedback surveys, Twitter polls, Net Promoter Score (NPS)
questions after a product purchase, customer satisfaction (CSAT) feedback
forms, etc.

Best Practices for Market Research in 2023

Market research is a crucial process that helps businesses understand their target
market, consumer preferences, industry trends, and competitive landscape. By
gathering and analyzing relevant data, companies can make informed decisions
and develop effective marketing strategies. Here are some best practices for
market research:
1. Define your research objectives:

Clearly articulate the goals and purpose of your research. Identify the specific
information you need to gather, such as customer insights, market size,
competitor analysis, or product feedback.

2. Identify your target audience:

Determine the specific demographic or customer segment you want to study. This
will help you tailor your research methods and questions to gather the most
relevant data.

3. Choose the right research methods:

Select the most appropriate research methods based on your objectives and
target audience. Common methods include surveys, interviews, focus groups,
observation, secondary research, and data analysis.

4. Develop a research plan:

Create a detailed plan outlining the research methodology, timeline, and resource
allocation. This will ensure that the research is conducted efficiently and
effectively.

5. Use a combination of qualitative & quantitative Research:

Qualitative research methods, such as interviews and focus groups, provide in-
depth insights and opinions, while quantitative methods, like surveys and data
analysis, offer statistical data and measurable metrics. Combining both
approaches provides a comprehensive understanding of the market.

6. Collect data from multiple sources:

Gather information from diverse sources, including primary data (collected directly
from customers or target audiences) and secondary data (existing research,
industry reports, and government data). This multi-source approach enhances the
reliability and accuracy of your findings.

7. Maintain data quality and integrity:

Ensure the data collected is accurate, reliable, and relevant to your research
objectives. Use standardized measurement scales and survey techniques to
maintain consistency.

8. Analyze and interpret the data:

Use appropriate statistical analysis tools and techniques to analyze the collected
data. Look for patterns, trends, and correlations that can provide valuable insights
for decision-making.
9. Keep an eye on competitors:

Conduct a competitive analysis to understand your competitors’ strategies,

strengths, weaknesses, and market positioning. This information can help you
identify opportunities and develop effective marketing plans.

10. Stay ethical and maintain privacy:

Adhere to ethical guidelines and protect the privacy of participants and their data.
Obtain informed consent and ensure confidentiality throughout the research
process.

11. Communicate and act on findings:

your research findings in a clear and concise manner. Translate the insights into
actionable strategies and recommendations that can drive business growth.

12. Continuously monitor the market:

Market research is an ongoing process. Keep a pulse on industry trends,

consumer preferences, and market dynamics to stay ahead of the competition
and identify new opportunities.

By following these best practices, businesses can conduct effective market

research that informs decision-making, helps identify growth opportunities, and
supports the development of successful marketing strategies.

Rural Market Information System

Market Information System:
Also known as market intelligence systems, market information services, or MIS, and
not to be confused with management information systems) are information systems
used in gathering, analyzing and disseminating information about prices and other
information relevant to farmers, animal rearers, traders, processors and others
involved in handling agricultural products.

Market Information System

Definition In most cases TA projects limit their efforts to development of MIS
elements, which, while helpful, do not really resolve the key problem – do not create
sustainable infrastructure for efficient marketing
MIS has to include all fundamental elements in order to provide good quality
information for making marketing and strategic decisions Food and Agriculture
Processors , Wholesalers, Farmers ,Wholesale markets, Input Suppliers, Retail
chains ,Equipment suppliers ,Importers and Exporters ,Market Information
System,
Benefits of MIS
Improves marketing decisions; Lowers price fluctuations; Facilitates sales and
lowers losses; Attracts investments; Improves strategic decisions; Increases
competitiveness

Who benefits from MIS?

Farmers (sales, prices, planning, inputs); Processors (purchases, sales,
planning); Input, machinery and equipment suppliers (promotion, planning);
Wholesalers, importers/exporters, retailers (price, buy, sell, planning); Banks and
financial institutions (evaluation of credits); Governments (greater budget revenues,
new jobs)

Key principles of MIS

Independency (provider should not be involved in trade or sales of anything
besides MI services); Transparency (users should have access to detailed
methodology of information gathering and analyses); Continuity (same principles
used over time make analyses of time series possible);

Use of Marketing Information System

A marketing information system helps organizations collect, store, and analyze data
about customers. This data can then be used to aid in decision-making about a large
range of marketing activities (e.g., product positioning, pricing, customer
segmentation). The system can also be used to monitor market trends, analyze
customer preferences and needs, and track customer purchase behaviour. The
following section will provide an in-depth overview of some of the most important and
common uses:

Positioning:

A marketing information system can be used to assess the current position of a

product or service in terms of its brand recognition and market share. This helps
organizations to understand where their products and services stand in relation to
the competition.

Gaining Data Access:

By utilizing a marketing information system, organizations can gain access to

customer data that would otherwise be difficult or expensive to obtain. This includes
demographic and psychographic information as well as behavioural data.

Informed Decision-Making:

As previously mentioned, the data gathered and analyzed by the system can be
used to make more informed decisions about marketing activities. This includes
decisions related to advertising, product development, and pricing.
Lead Conversions:

A marketing information system can also be used to track leads and conversions.
This helps organizations understand which of their marketing efforts are working and
which may need improvement.

Revenue Generation:

By using the system to assess customer needs and preferences, organizations can
develop strategies to increase their revenue. They can also use it to identify
opportunities for new products or services.

Competitive Edge:

By leveraging the data provided by a marketing information system, organizations

can gain a competitive edge in the market. This can help them to stand out from their
competition and capitalize on emerging trends.

These are just some of the ways that a marketing information system can help
organizations make informed decisions related to their marketing activities.
What is the meaning of marketing information management?
While the definition of marketing information management may vary slightly, it
generally refers to the process of leveraging data and analytics to optimize marketing
strategies. This typically involves collection, analysis, and interpretation of various
types of data, such as customer behaviour, competitor information, and market
trends. By managing this data effectively, organizations can gain valuable insights
that enable them to adjust their strategies and achieve better results.
What is an example of a marketing information system?
An example of a marketing information system is a customer relationship
management (CRM) system. A CRM system stores and organizes customer data,
such as contact information, purchase history, and preferences. It also allows
companies to segment customers based on their data and track customer
interactions over time. By using a CRM, companies can gain greater insights into
their customers and use these insights to improve marketing campaigns, target
content more effectively, and create more personalized customer experiences.
What is the function of marketing information management?
The main function of marketing information management is to provide organizations
with data-driven insights that they can use to inform their marketing strategies. For
example, by analyzing customer behaviour, organizations can gain a better
understanding of their target demographic and create more effective campaigns. By
collecting and analyzing data from competitors, organizations can stay up-to-date on
the latest industry trends and adjust their strategies accordingly. Finally, by analyzing
market data, organizations can identify opportunities for growth and adjust their
marketing strategies to capitalize on these opportunities.
Rural Market Forecasting
In today’s data-driven world, insights should guide every marketing decision – no
guesswork; no assumptions. Of course, we can’t predict the future, but we can model
it to forecast the outcome of marketing campaigns based on historical data, existing
performance and emerging trends.

Market forecasting to calculate the outcome of strategies- so that we can

approve campaigns with the highest chance of success, manage performance to
consistently achieve objectives and adapt your marketing spend to maximise return
on investment (ROI).

Marketing Forecast
A marketing forecast is a process that uses historic data and expectations to predict
future performance. This information, along with market research, can be used to
make larger business decisions. This could be predicting future sales, different growth
targets, or other key performance measurements.

Ten key steps of marketing forecasting to get accurate outcomes from simulations
on a consistent basis. This will allow to predict the outcome of campaign ideas and
prioritise creatives that’ll achieve desired goals most effectively.
1. Defining goals: How to define marketing goals for reliable forecasts.
2. KPIs & metrics: Choosing the right data points to measure success.
3. Budgets: Setting and allocating budgets.
4. Campaign ideas: Creating campaign ideas for each marketing goal.
5. Expenses: Accounting for all of your marketing expenses.
6. Forecasts: Choose the best campaign ideas by forecasting results.
7. Campaign approval: Approve and run the campaigns that perform best in
forecasting.
8. Milestones: Keep campaigns on track with milestones.
9. Reforecasting: Run regular forecasts on live campaigns to adapt
expectations.
10. Adaptation: Adjust budgets, targets and resources to maximise ROI.
By following these steps, you’ll implement forecasting throughout the strategic
planning, prioritisation and optimisation of campaigns so that your budget is always
allocated to strike the best balance between high performance and cost-
effectiveness.

The purpose of marketing forecasting is to remove the guesswork from business

decisions, allowing you to predict future outcomes. You can forecast a wide range of
scenarios, depending on the data you’re working with – for example, you could
predict future campaign performance, the growth rate of your business or the impact
of external trends.
Marketing forecasting typically uses both first-party and third-party data to calculate
outcomes:
 • First-party data: This is the data you collect from your own website,
customers and channels.
• Third-party data: External data you access from other sources – eg:
government statistics, Google Trends, etc.
For example, a company might access third-party data from The Met Office to
understand how weather patterns affect the purchase habits of their target audience.
They can then use this data to inform seasonal campaigns or even short-term
marketing decisions, such as increasing spend on campaigns based on the
weekend’s weather forecast.
For the purposes of this article, we’re going to keep things simple and focus on the
use of first-party data to predict one type of outcome: the performance of campaign
ideas. This means we’ll be working with the data you should already have access to
and control over – namely the performance of your existing campaigns.
So you’ll be taking matrics like conversion rates, visits, impressions and using these
to predict the outcome of similar campaign ideas while getting a clear picture of which
objectives you need to hit to achieve your goals.

Tools needed for marketing forecasting

To follow the steps, you’ll need the following three tools to capture the necessary
data, run your forecasts and optimise campaigns to improve performance:
1. Marketing analytics: Capture all of the data you need to forecast, measure
performance and optimise campaigns.
2. Forecasting software: Simulate campaigns to forecast results and choose
the most effective campaign ideas.
3. CRO software: Optimise campaigns, test variations and deploy changes.
In addition to these, you’ll also need the tools required to manage campaigns and
create all the resources they require – things like email marketing software, a landing
page builder, etc. We’re not going to get into any of that in this article, so we’re only
interested in the three tools you need to run marketing forecasts successfully on a
regular basis.

Forecasting software
With analytics software, you’re spoilt for choice but marketing forecasting tools are in
much shorter supply. There are some platforms currently available on the market but
they’re mostly included in enterprise analytics systems that cost hundreds of
thousands of dollars.
Unfortunately, there aren’t many scalable options designed for startups and new
companies that offer affordable entry prices and grow with your business.
TrueNorth is the exception, a marketing management platform that acts as the control
centre for all of your planning, deployment and optimisation. TrueNorth includes a
marketing forecasting system that predicts the performance of campaign ideas before
you start investing any resources into creatives that fall short of your goals. This
means you can test run campaign ideas, ensure they’re ready to achieve your goals
and prioritise the campaigns that perform best.
RURAL MARKETING IN INDIA

Unexplored economic potential of India’s rural markets is huge. These markets are
ripe with opportunity as rural India has over 65% of the country’s population. In this
section, we will examine the importance of rural markets, the types of people they
support, and the amount of money they bring in.

Rural India is a strong economic force in the country. These markets are important
because of their enormous size and impact on India’s agricultural production and
food security. Understanding and exploiting rural markets is important for companies
seeking growth and sustainability. Rural marketing is important because it plays an
important role in connecting with many consumers who are often overlooked in rural
areas.

Rural markets are important in countries like India and China where there is a large
rural population. They have great potential and can contribute to economic prosperity
and poverty reduction. By interacting with rural markets, the company’s customer
base increases agricultural productivity, supports rural livelihoods and promotes
inclusive growth. It is important for businesses and governments to understand the
patterns of resource use, cultural diversity and infrastructure that are unique to rural
areas. Successful rural marketing programs can help improve the socio-economic
conditions of rural communities, create jobs and achieve sustainable development,
while also providing income for new businesses and reducing their dependence on
cities the marketplace.

Rural trade is essential to support government policies for equitable growth and rural
development. Governments often pass laws and policies to improve rural
communities, and companies that run their advertising campaigns with these policies
can form cooperative relationships. In addition to improving market access, these
partnerships as well contribute to the overall social and economic development of
rural communities.

The increased use of technology in rural areas is impacting rural trade in the current
digital age. Using online and e-commerce channels, companies can better connect
with rural customers and offer them a wider range of products and services. Thanks
to the digital revolution, companies now have more options to reach rural
consumers, making products and information easier to access.

CHALLENGES IN RURAL MARKETING

Poor Infrastructure: Rural infrastructure including roads, transit and electricity

supply, is often inadequate. As a result, timely delivery of services and delivery of
goods may be compromised.

Limited Access to Information: There may be limited channels to communicate

and provide information to rural consumers. Traditional advertising strategies may
not be as effective, and new tailored strategies are needed to target these
consumers.
Diverse Consumer Behaviour: Rural marketing is not homogenous. They cover a
wide range of consumer preferences, literacy, and cultural diversity. Understanding
and adjusting to these differences can be difficult.

Affordability: Consumers in rural areas generally have lower discretionary spending

than consumers in urban areas. Balancing profitability with fair prices for goods and
services can be difficult.

Low Product Awareness: Consumers in rural areas may be less familiar with
branded products and specialties. Marketers need to communicate the benefits and
uses of the products to consumers.

Cultural Sensitivity: Rural markets have unique traditions and practices. Brands
need to be culturally aware to prevent unintended distress or alienating potential
customers.

STRATEGIES FOR REACHING THE RURAL MARKET

Localization: Design your products and services to meet the unique needs,
preferences and cultural nuances of rural areas. Be aware that what works in one
place may not be appropriate in another because of differences in lifestyle,
language, and traditions. Consider using local branding or packaging that appeals to
local consumers. This gives them comfort and confidence. Use marketing materials,
signage and advertising to communicate in regional languages and dialects. This
ensures that rural consumers can understand and execute your message.

Agricultural Focus: Develop good relations with nearby farmers. Provide goods and
services such as enhanced fertilizers, seeds and irrigation that directly increase
agricultural productivity. Identify and support rural farmers in modern farming
techniques, pest management and crop control. These programs can boost results
and increase customer trust in your brand.

Distribution Network: Align with local merchants and shopkeepers who are familiar
with rural markets. This allows you to expand your distribution network and also
leverage their current customer network. The use of rural delivery systems that can
negotiate more challenging rural terrain ensures that supplies reach even the most
remote areas. Use collection points in rural areas to reduce the distance rural
customers have to travel to access your product or service.

Affordable Pricing: Increase the value of your inventory while maintaining

profitability. Giving rural consumers value for money is important because they tend
to be price sensitive. Look for ways to reduce production costs through economies
of scale or efficient supply chain management, in order to maintain reasonable
prices.

Rural Communication: Join together and get accredited individuals, community

leaders, or other influential people to promote your products or services. In rural
areas, their support carries power and confidence. Use traditional media such as
radio, regional newspapers, and community programs to better reach rural
audiences. In rural areas, this media is often very expensive.
Government Initiatives: Align your marketing strategy with policies that promote
rural development, such as "Make in India", "Digital India", or "Swachh Bharat
Abhiyan". This not only builds credibility but also gives you access to government
grants and resources. Look for ways to increase the availability of your products to
rural consumers, if applicable, and government programs to provide subsidies or
incentives.

FUTURE OPPORTUNITIES AND SCOPE

Digital transformation is taking place in rural India, thanks to increasing
smartphone penetration and better access to the internet.

Rural consumers are increasingly accustomed to online services as their digital

literacy increases, enabling companies to use e-commerce, digital marketing and
mobile applications to communicate and communicate effectively with rural
audiences.

Companies involved in e-commerce are aware of the untapped potential in rural

markets. They are expanding into rural areas and changing their product offerings to
suit rural wants and needs. This trend is predicted to continue, opening up a huge
opportunity for companies to participate in e-commerce development in rural India.

Opportunities for companies to offer financial services and products including

microfinance, insurance and digital banking, government efforts aimed at expanding
economic development in rural areas and creating digital payment systems This can
provide access to finance has improved, opening up new market opportunities in
rural areas.

Agri-tech based solutions are becoming important in rural markets. Companies

that offer cutting-edge agricultural technology products such as agrichemicals,
agricultural management software, and precision agricultural technologies can help
rural farmers, increase agricultural production and benefit from market as it is
developing.

Rural marketing is a way to promote economic growth, social development and

environmentally friendly corporate practices, in addition to being a way to increase
market development Resources, costs and adapting marketing strategies to
accommodate the specific needs and preferences of rural consumers.

Key strategies such as localization, agricultural decentralization, distribution

network development, affordable prices, rural connectivity and alignment of
government objectives with government objectives have been thoroughly explored to
reach rural consumers effectively.

India’s rural retail sector has a bright future. Factors such as digital transformation,
e-commerce development, financial inclusion, agricultural technological innovation
and demand for sustainability in the health and education sectors are shaping the
situation.
Glimpse of Future Rural Marketing
Present market industry is pampered with the word " Rural " which is huge market
with a triple of its size compared to other country markets. Rural market can be
termed as a Dazzling bird with a vast untapped market of resources and
opportunities. Where more than half of the national come in generated from market
this leads the manufacturers to plunge in to this untapped market. Most of the
population in India resides in rural spreading with 65000 villages, speaking various
linguistic languages. Lot of transformation is observed in the rural people where they
are not interested to follow the old habits of using neem sticks for swaging the teeth,
they induced to use paste for cleaning the teeth, these changes are witnessing
because of change in income level and literacy rate. People are choosy and
conscious in figuring out the life style to mark up for better life to live. Brand
consciousness is also budding in the minds of the consumer to lead luxury life,
which makes the rural market as demanding market for manufacturers.

STRATEGIES TO CAPTURE THE MARKET OF RURAL-INDIA

Markets which are unable to face the stiff competition posed by MNC’s can
reinstate their profits in the rural markets. If Indian industries concentrate on rural
markets their sales will increase. If rural markets are brought into the limelight of
development, they will pave way to economic reformation. Success of India lies in
the success of every Indian; hence no rural segment should be left untapped.

The biggest Challenge for any MNC's are meeting the four aspects in rural
marketing: Availability, Affordability, Acceptability and Awareness. The
aforementioned challenges faced can be tackled by various strategies
as followed.

Mastering Rural Customer Reach When it comes to reaching India’s rural

customers, the biggest obstacles are inadequate distribution networks, partners
with limited capabilities, long payment cycles and weak marketing channels. Rural
Masters apply the following practices to overcome these hurdles:
Take a robust approach to reach “the last mile
Focus on market expansion
Create sustainable channel relationships

Mastering Rural Customer Acquisition Rural consumers have diverse, specialized

needs and preferences. To acquire these customers, businesses
must understand the cultural, economic and demographic dimensions that define
them.

Organizations often make the mistake of treating rural consumers as a

homogeneous market and offer them the same value proposition they offer to
urban markets. These value propositions usually focus on a product’s functional
benefits and pay little attention to how the product meets the unique needs and
wants of specific rural customer segments. Given the strong social fabric in rural
areas and the pivotal role that fabric plays in influencing purchase decisions,
companies must integrate into it. Only then can they successfully promote their
products and establish credibility. Rural Masters take specific steps to achieve
these aims:

Create trust and relevance through an ecosystem of stakeholders

Define a unique value proposition for rural customers
Engage the right set of influencers

Customer Retention
Although companies are focusing heavily on rural consumer reach and acquisition,
bolstering customer retention efforts has gained importance as competitors deepen
their market penetration. To retain customers,
companies have to adopt -
Devise low-cost models for after-sales support
Anchor customer relationships in trust
Create trust and relevance through an ecosystem of
Invest in community development.

Habitation of Rural Consumer

Literacy Level
Rural India is Phasing out with literacy rate of 23% every year ,where sixty lakh
people getting added to literate population of rural India.

Income Level
From past two decades the rural consumer income level is raising at an average
compared to urban. But when compared to urbans rural people are lagging behind
in some aspects which depicts like income, purchasing power, low stand of living.
Purchase decision traits etc.in future the gap will be filled up with great potency.

Reference Group
People residing in the rural are influenced by Sarpanch, Teacher, intervet, Student
at the time of purchase. These group has a power to alter the mindset with a word
of trust.

Occupation
Main task objective in rural area is farming, Crafting and other jobs which includes
Plumbing, Primary health worker and social servant.

Media Habits
A rural customer is fond of music and folklore. Now television, radio, newspapers,
magazine, video films are a part of the traditional media other variables. Culture,
linguistic, religion, caste and social customs are important variables for profiting a
rural consumer.

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