Rural marketing

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

SUBMITTED BY: RAMNIKA TYAGI MBA IB (2008-2010) A1802008771. UNDER THE GUIDANCE OF: MR. NITIN GARG FACULTY

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR PRADESH

Rural marketing

Acknowledgement
I consider my proud privilege to express deep sense of gratitude to Mr. NITIN PARMAR 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 Friends, 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.

TABLE OF CONTENTS

Rural marketing

TOPIC
EXECUTIVE SUMMARY RESEARCH METHODOLOGY REVIEW OF LITERATURE INTRODUCTION FINDINGS AND ANALYSIS CONCLUSIONS SUGGESTIONS AND RECOMMENDATIONS APPENDIX BIBLIOGRAPHY

PAGE NUMBER 06 O8 11 15 129 147 150 151 157

. Customer relationship management. The Products in the rural . Despite.. Retailer as special focus areas.e. India lives in her seven hundred thousand villages. but their integration with the Indian ethos and culture. Segmentation. Consumer behavior process. have often been lifted straight from the marketing intelligentsia abroad and adopted in Indian conditions.. 4 Ps of the marketing mix.. Consider the market. 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. Nearly two-thirds of all middle-income households in the country are in rural India and represents half of India’s buying potential. 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...Mahatma Gandhi.e. Concepts like Brand identity.. 1926 Marketing in developing countries like India have often been borrowed from the western world. The paper thereby present the modified version of Philip Kotler’s famous marketing mix consisting of 4Ps. Packaging and 1R i.e.. Reason lies not in the fault of such concepts....... Further to ensure the sustainability of the marketing mix two Es i..... often with minimal success. the strong potential the rural markets are by and large less exploited. out of five lakhs villages in India only one lakh have been tapped so far. The focus is on its modification and subsequent customization to Indian rural markets perspective.. According to us if the rural market has to be adequately tapped. The 4Ps have to be modified to include 1P i. targeting and positioning etc.. The rural India offers a tremendous market potential.Rural marketing EXECUTIVE SUMMARY India’s way is not Europe’s. India is not Calcutta and Bombay.

Rural marketing market should essentially operate at the basic and expected level of product classification. Hence. Posters. needs to be managed effectively through promotion programmes and incentives to promote the brand of a company. At the same time the importance of retailer has to be recognized where he is one of the most major influencer is customers decision making process. In order to bridge the gap between Philip Kotler and countryside Indian what is . Since. Thus. In terms of physical distribution due to lack of infrastructure the costs are very exorbitant to reach the rural customer. 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. Here. They should essentially meet the basic needs of the consumer and should be a no-frill product. Thus overall either the product or communication or preferably both need to be customized to target the rural customer. Similarly. there has to be an approach of treating customer as budget seeking consumer. Also the existing distribution would need a transformation to achieve the required penetration levels as success of Project Streamline of HLL has shown. Folk Theater Song. etc. Agricultural Games. fitting the consumer needs into an affordable price point is pursued first and then other features of product are fitted in. Wall Painting. as the consumer would not be valuing much any further addition to the product concept. Demonstration. the value for money concept is more important rural customers. He acts as the friend and guide in this process and hence. 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. NGOs network. the advertising mix has to be more towards nonconventional yet effective medium like Puppetry.

The following objectives have been set forth. initially the objectives of the same are determined and accordingly the further steps are taken on.Rural marketing needed the appreciation of unique features of rural India and thus. This marketing mix has to be responsive to customers needs and fit into his life as a tool of selfenhancement. In this study. the focus is on the emergence of rural markets as the most happening market on which every marketer has an eye. And so this study will be based on studying the emergence of rural market in various contexts. The main objective of the study is to analyse and present the marketing of consumer products in rural areas. Similarly in case of any research study undertaken. To be successful the concept of marketing has to be taken in conjunction with its economic. 4) Examine the product and brand penetration in rural markets. . 2) Present a profile of Indian Rural market. They are to: 1) Present a rural marketing perspective. 3) Study and analyse the consumer behavior in rural areas. A research study may have many objectives but all these objectives revolve around one major objective which is the focus of the study. responding to them by making adequate improvements in the application of the marketing concepts learnt in the class. psychological and social implications. RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY: Any task without sound objectives is like Tree without roots. For achieving the desired results of capturing the rural customer a comprehensive approach to the traditional marketing concepts has to be taken.

basically farmers. 4. Further. tea. 2. 2. detergents. fan and bicycle). As regards marketing of consumer products in rural areas. television. I have chosen BHOWAPUR. Data collection Sample unit: 1. SCOPE OF THE STUDY: The study is restricted to selected districts of UTTAR PRADESH. refrigerator. which is given as follows: 1. 4. . 2. The population status of these areas can be shown in a tabulated manner. MORTI. of Uttar Pradesh as the area of study. Working people (including men &women). 6) Present marketing strategy frame for marketing consumer products in rural areas. coffee.Rural marketing 5) Analyze marketing of consumer product in rural markets. SHAHPUR and ATTOR as areas of research. shampoo) and from durable category (a wrist watch. College students School students Senior citizen Sample size: 1. 3. the study analyzes products from non durable category (a bathing soap. 3. Working people : 32% College students: 29% School students : 23% Senior citizens : 16% Sampling region: I have selected Uttar Pradesh. product and brand penetration is examined.

Primary data: it will be collected with the help of a self administered questionnaire. Words Used in questionnaire are readily understandable to all respondent. news papers. Questionnaire design: As the questionnaire is self administrated one. etc. 2.Rural marketing Area Population BHOWAPUR MORTI SHAHPUR ATTOR 2500 3000 5000 4000 Data collection method: 1. journals. Internet. research papers. Secondary data: it will be collected with the help of books. magazines. Also technical jargons are avoided to ensure that there is no confusion for respondents. . the survey is kept simple and user friendly. This questionnaire aims to gather information related to various Branded products.

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

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

It has always been difficult to gauge the rural market. Many brands. More often than not. have failed miserably. 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 economically viable units and growth engines. pesticides and farm machinery. advertisers and companies find it easier to vie for a share of the already divided urban pie. fertilizers. people attribute rural market success to luck. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for. harnessing the power of the . The success of a br and in the Indian rural market is as unpredictable as rain. marketers need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent 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. The Indian rural market today accounts for only about Rs 8 billion of the total ad pie of Rs 120 billion. Although a lot is spoken about the immense potential of the unexplored rural market. so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.6 per cent of the total share. So clearly there seems to be a long way ahead. Therefore. thus claiming 6.Rural marketing besides hundred per cent of agri-input products such as seeds. which should have been successful.

The rural market is no longer sleeping but we are”.Rural marketing villagers. Before gamboling into issues like where the Indian rural . Chairman. it will soon outstrip the urban market. INTRODUCTION “India lives in her villages”. As described by Adi Godrej. Godrej Group – “The rural consumer is discerning and the rural market is vibrant. At the current of growth. and opening up new horizons with the promise of a better tomorrow.

."All the places that fall within the administrative limits of a municipal corporation. Agriculture and agriculture related activities contribute to about 75%of the income in rural areas.. Bihar. on the other hand. There are states like U. M.P. cantonment board etc or have a population of at least 5. municipality. Rajasthan and Orissa where rural population varies form 8 to 9 percent. The Census defined urban India as .P. comprises all places that are not urban!" In our country over 70%of the total population live in villages. let's look at the definition of urban and rural India. The general impression .Rural marketing market stands and the opportunities for corporate’s to explore there.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. Rural India.

shampoos. Some of the other corporates that are slowly making headway in this area are Coca Cola India. Philips. So clearly there seems to be a long way ahead. 59 per cent durables sale. washing machines.Rural marketing is that the rural markets have potential only for agricultural inputs like seeds. 100 per cent agricultural products) of the total ad pie of Rs 120 billion. activating the brand in the rural market through activities. Hindustan Lever Limited (HLL) is top of the mind with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'. LG Electronics. fertilizers and pesticides. The lynchpin of HLL's strategy has been to focus on penetrating the market down the line and focusing on price point. a mere handful names come to mind. Amul is another case in point of aggressive rural marketing. Now for some facts and figures The Indian rural market today accounts for only about Rs 8 billion (53 per cent . which are in line with the brand itself. refrigerators. 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. mechanical watches and radios and about 60%of batteries.6 per cent of the total share. mosquito repellent and tooth paste are very low and there is tremendous potential for such products in rural markets. Life Insurance .FMCG sector. is what sums up HLL's agenda as far as the rural market is concerned informs MindShare Fulcrum general manager R Gowthaman. About 70% of bicycles. Furthermore. But when one zeroes in on the companies that focus on the rural market. Infact it has been estimated that the rural markets are growing at fives times the rate of urban markets. BSNL. Colgate. face cream. sewing machine and table fans are sold in rural India. Time and again marketing practitioners have waxed eloquent about the potential of the rural market. Eveready Batteries. thus claiming 6. cattle feed and agricultural machinery. At the same time the sales of color television.

Khaitan fans' ad on a horseWheel's cart painting wall We can safely say that until some years ago. While. the process is slow. Britannia and Hero Honda to name a few. 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. the agenda being to take a short-cut route by pushing urban communication to the rural market by merely transliterating the ad copy.Rural marketing Corporation. Cavin Kare. Coca Cola. 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. Hence advertising that is rooted in urban sensitivities didn't touch the hearts and minds of the rural consumer. . with their Aamir Khan ad campaign succeeded in providing just that. More often than not.

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

has also been investing steadily to build their infrastructure to meet the growing needs of the rural market.Rural marketing 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. "Yaara da Tashan. The company.. which reiterates the fact that this multinational has realised the potential of the rural market is going strength to strength to tap the same." McCann Erickson's ads with Aamir Khan created universal appeal for Coca Cola . on its behalf..

"Campaigns have to be tailor made for each product category and each of the regions where the campaign is In 20 00 . telecommunication etc and lower levels of literacy are a few hinges that come in the way of marketers to reach the rural market. Citing other challenges in rural marketing. "Reaching your product to remote locations spread over 600. Also distribution remains to be the single largest problem marketers face today when it comes to going rural. Patankar says." says MART managing director Pradeep Kashyap.000 villages and poor infrastructure roads.Rural marketing 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. IT C to ok an ini tia tiv e to de ve lo p dir ec t co nt ac t wi th far m .

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. custom and values that are difficult to shed. which is driven by tradition. hence the video van is one of the very effective means of reaching out physically to the rural consumers. Therefore a thorough knowledge of the nuances of language. The other challenge is the reach and the available means of reaching out to these markets.rural divide will take a while.Rural marketing to be executed. the future no doubt lies in the rural markets. the rural consumer will always remain driven by his needs first and will therefore be cost conscious and thrifty in his spending habits. dialects and familiarity with prevailing customs in the regions that you want to work for is essential." The fact of the matter remains that when compared to the Indian urban society. 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. "Decision-making is still conscious and deliberated among the rural community." affirms Patankar. "Although the melting of the urban . which is turning into a consumerism society." he points out. But nevertheless. since the size of the rural market is growing at a good pace. which has its own logic. Satellite dish antennas reach rural India . this is not for want of the availability of the means but for want of the rural consumer's mindset to change.

It's all about how one approaches the market. While it does help in Typic generate volume but al not in terms of shop values. "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). you will not be able to spend disproportionate monies in the rural market.value equation turns the other way round. a one rupee or a five rupee sachet or the Kutti Hamam (the small Hamam) helps in giving the consumers a trial opportunity. . takes up the challenge of selling products and concepts through innovative media design and more importantly interactivity. etc reiterates Gowthaman. Ultimately. "Till the time in that volume ." For HLL. the ball lies in the court of rural marketers.Rural marketing Fulcrum's Gowthaman says.value rural equation is managed India better." ts. The television CPC is going to anyways be cheaper to rural CPC and unless and until the volume . the CPC is stock preventing anybody ed to look at rural at a with large scale activation sache programme.

Moreover. but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. folk artists. India's GDP is expected to be USD 1. Service sector contribute to 50% of India‘s GDP and the Industry and agriculture sector 25% each. thanks to the demands of the rural marketers. rural India is not so poor as it used to be a decade or so back. audio visual production houses.4 trillion by 2017 and USD 2. the second most populated country of more than 1100 million has emerged as one of the fastest growing economies. which is just waiting to be tapped. Things are sure a changing! INDIA INFRASTRUCTURE The best barometer of country’s economic standing is measured by its GDP." So the fact remains that the rural market in India has great potential. "There is better scope for language writers who understands the rural and regional pulse better.5%. It is a republic with a federal structure and welldeveloped independent judiciary with political consensus in reforms and stable democratic environment . With the expected average annual compounded growth rate of 8.8 trillion by 2027.The Indian economy is expected sustain a growth rate of 8% for the next three years up to 2012.In 2008-09 India’s economy-GDP grew by 6. India. I also see great scope for regional specialists in the areas of rural marketing specialists like Event Managers. .5% due to global recession. In fact all those people who have specialised knowledge of a region are bound to do well. economy grew at 9%.Rural marketing Anugrah Madison's chairman and managing director RV Rajan sums up. Progress has been made in this area by some. Wall painters. In the previous four years.

No country in the world other . More than USD 475 bn worth of investment is to flow into India’s infrastructure by 2012.Rural marketing Investment Opportunities In Indian Infrastructure The robust current growth in GDP has exposed the grave inadequacies in the country’s infrastructure sectors. The creation of world class infrastructure would require large investments in addressing the deficit in quality and quantity. The strong population growth in India and its booming economy are generating enormous pressures to modernize and expand India’s infrastructure.

Urban infrastructure . investments to the tune of US$ 91 billions have been planned in other infrastructure sectors like Tourism infrastructure . pricing.20.and water infrastructure and sanitation infrastructure thus making the total infrastructure investments in the eleventh plan period 2007-08 to 2011-12 as US$475 billions.Power infrastructure. promoting. Development of Telecom.Construction infrastructure.investment in the above sectors (Aviation infrastructure . Development of Ports-US$ 26 billion. Development of Power -US$ 232 billion. Development of RailwaysUS$ 71 billion. With the above investments India’s infrastructure would be equal to the best in the world by 2017. Development of Irrigation system. Rural Marketing Rural marketing involves the process of developing. In addition to the above. SEZs . Development of civil aviation US$ 12 billion. Highway infrastructure . Thus in the eleventh five year plan . URBAN RURAL . In the next five years planned infrastructure investment in India in some key sectors are (at current prices): Modernization of highways -US$ 75 billion.Rural infrastructure.Telecom infrastructure ) will be US$ 384 billions(Rs 17.Rural marketing than India needs and can absorb so many funds for the infrastructure sector.000 Crores) considering the huge infrastructure market potential in India.US$ 32 billion. Port infrastructure .US$ 18 billion. Domestic and global infrastructure funds have exposure to Indian infrastructure sectors. distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.

It involves the selling of products and services by urban marketers in rural areas. The rural areas are consuming a large number of industrial and urban manufactured products. fruits and vegetables. The following are some of the important items sold from the rural to urban areas: seeds. This has designed a new way for understanding a new process called Rural Marketing. spices. Consumer durables. milk and related products. FMCG Products. Urban to Rural: A major part of rural marketing falls into this category. Marketing is the process of . Rural to Rural: This includes the activities that take place between two villages in close proximity to each other. The concept of rural marketing has to be distinguished from Agricultural marketing. forest produce. etc. These include selling of agricultural tools. The rural agricultural production and consumption process plays a predominant role in developing the Indian economy.Rural marketing RURAL RURAL URBAN RURAL It is a two-way marketing process wherein the transactions can be: 1. 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. carts and others to another village in its proximity. etc. Indian agricultural industry has been growing at a tremendous pace in the last few decades. 2. cattle. Rural marketing requires the understanding of the complexities. These include: Pesticides. 3. The transactions relate to the areas of expertise the particular village has. An agent or a middleman plays a crucial role in the marketing process.

In the context of rural marketing one has to . money and labour. which signifies marketing of rural products to the urban consumer or institutional markets. Rural marketing differs from agricultural or consumer products marketing in terms of the nature of transactions. One has to have a strategic view of the rural markets so as to know and understand the markets well. Rural marketing is different from agricultural marketing. Rural marketing basically deals with delivering manufactured or processed inputs or services to rural producers. norms and outcomes. pricing. modalities. the demand for which is basically a derived outcome. Most of the jobs of marketing and selling are left to the local dealers and retailers. which includes participants. farmers. INDIAN RURAL MARKET: Rural marketing in India is not much developed there are many hindrances in the area of market. opinion makers. dealers. government agencies and traders. products and processes. Companies need to understand rural marketing in a broader manner not only to survive and grow in their business. product design and positioning. but also a means to the development of the rural economy. consumer goods. Rural marketing needs to combine concerns for profit with a concern for the society. as the process of rural marketing involves an urban to rural activity. The market for input gets interlocked with other markets like output. products. Rural market for agricultural inputs is a case of market pull and not market push. besides being titled towards profit. distribution and promotion. The participants in case of Rural Marketing would also be different they include input manufacturers. Rural marketing scientists also term it as developmental marketing.Rural marketing identifying and satisfying customers needs and providing them with adequate after sales service. which in turn is characterised by various peculiarities in terms of nature of market.

distribution. Product usage is central to price. branding.Rural marketing understand the manipulation of marketing mix has to be properly understood in terms of product usage. thus any strategy in rural marketing should be given due attention and importance by understanding the product usage. company image and more important farmer economics. Evolution of Rural Marketing PHAS E ORIGIN Before Mid-1960 (from independe nce to green revolution) MidSixties (Green revolution to Preliberalizati on period) MidNineties (Postliberalizati on period on 20th century) FUNCTION MAJOR PRODUCTS Agricultur al Produce SOURCE MARKET Rural DESTINATIO N MARKET Urban I Agricultur al Marketing II Marketing Of Agricultur al Inputs Agricultur al Inputs Urban Rural III Rural Marketing Consuma bles And Urban Durables & For Rural Consumpt ion & Productio Rural . all elements of marketing mix can be better organised and managed. promotion.

Rural marketing then referred to the marketing of rural products in rural & urban products. the nature of rural market was altogether different. 2. rural marketing represented marketing of agriculture inputs in rural markets & marketing of rural produce in urban areas.Phase II (Green Revolution to Pre-liberalization period): During these times. Phase IV (21st century): Learning from its rural marketing experiences after the independence. Phase III (Post-liberalization period on 20th century): The third phase of rural marketing started after the liberalization of the Indian economy. 3. if an organization wants to tap the real potential of the rural market. the corporate world has finally realized the quick-fix solutions & piecemeal approaches will deliver only limited results in the rural markets. due to the advent & spread of the Green Revolution.Phase I ( Revolution): from Independence to Green Before the advent of the Green revolution. rural marketing represented the emerging. peoples & their occupations. it needs to make a long-term commitment with this market.Rural marketing n IV 21st century Developm All Urban ental products & marketing & services Rural Urban Rural & 1. In this period. distinct activity of attracting & serving rural markets to fulfill the need & wants of rural households. And. 4. Its approach & strategies must not focus in just selling products .

rural India is now attracting more and more marketers. But now it is felt that with the tempo of development accelerating in rural India. Till recently. Rural marketing has become the latest mantra of most corporate. the focus of marketers in India was the urban consumer and by large number specific efforts were made to reach the rural markets.Rural marketing & services. not through atand-alone products or services. social mobility. advertisers and multinational companies. but they should also aim at creating an environment for this to happen. By and large this rise in purchasing power remains unexploited and with the growing reach of the television. Thus. Increase in competition. . coupled with increase in purchasing power. made the companies to think about new potential markets. it is now quite easy for the marketers to capture these markets. but by presenting comprehensive & integrated solutions which might involve a set of inter-related products & services. saturated urban markets. Companies like Hindustan Lever. because of scientific agriculture. Colgate Palmolive. 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. 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). the changing life style and consumption pattern of villagers with increase in education. more and move new products demanding urban customers. Because of all these factors. the purchasing power of the rural people has increased due to increase in productivity and better price commanded by the agricultural products. Indian rural markets have caught the attention of many companies.

86 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 34. home to about two-thirds of the country’s 1 billion population. understanding their needs and wants. Coming to the frame work of Rural Marketing. giving a further boost to the rural economy. According to a McKinsey survey conducted in 2007. supply of goods and services to meet their requirements. . 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. Additionally. the rural India market would grow almost four times from its existing size in 2007.84 billion for improving rural infrastructure. carrying out after sales service that leads to customer satisfaction and repeat purchase/sales. Rural India.G. L.. is not just witnessing an increase in its income but also in consumption and production. RURAL INFRASTRUCTURE: 1) 46 percent of villages are connected by all weather roads. This is in addition to the farmer loan waiver of US$ 13. Rural Marketing broadly involves reaching the rural customer. and Calvin kare are all eyeing rural markets to capture the large Indian market.Rural marketing Britannia and even Multinational Companies (MNCs) like Pepsi. Moreover. 2) 84 percent of villages are electrified. rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years. Philips. the rural economy has not been impacted by the global economic slowdown. The union budget for 2009-10 hiked the allocation for the National Rural Employment Guarantee Act (NREGA) to US$ 8. Coca Cola. The Indian growth story is now spreading itself to India's hinterlands. according to a recent study by the Rural Marketing Association of India (RMAI). which was estimated at US$ 577 billion.03 billion.

000 villages. FMCG There was a time when the FMCG companies ignores rural market. 70% of the Indian population lived in 6. There were almost twice as many "lower income households" in rural areas as in urban areas.3 According to a study conducted in 2001 by the National Council for Applied Economic Research (NCAER). It is wider and less competitive market for the FMCG. At the same time. It was the initial stage of FMCG companies in India. In the early 2000s. the demand of FMCG is increasing continuously. There were 2. Of this. i.Rural marketing 3) 5700 regulated markets. they also threw up major challenges for marketers. The rural market is the one of the best opportunity for the FMCG sector in the India. the strategy and marketing style of FMCG companies had been changed.27. Gone were the days when a rural consumer had to go to a nearby town or city to buy a branded product. As per as the time had passed.6 million in rural areas. compared to 59 million in urban India. around 700 million people.3 million "highest income" households in urban areas as against 1. 90% were concentrated in villages with population less than 2000.e. in rural areas. NCAER projections indicated that the number of "middle income and above" households was expected to grow to 111 million in rural India by 2007. they took no any interest to produced or sell products in rural market in India. there were as many "middle income and above" households in rural areas as there were in urban areas. . The growing power of the rural consumer was forcing big companies to flock to rural markets.As the income level of the rural consumers increasing.

2. on fast moving consumer goods (FMCG). Nestle India 4. Godrej Consumers Product Ltd. Nirma Ltd.Rural marketing Top Players in FMCG Sector 1. For instance. the second highest after food (35 per cent). ITC (Indian Tobacco Company) 3. Tata Tea Ltd. Dabur India 6. Marico Industries Secondary Players 1. Most FMCG companies are now working on increasing their distribution in smaller towns and focussing on marketing and operations programme for semi-urban and rural markets. Parle Agro Rural consumers spend around 13 per cent of their income. Cadbury India 8. as per a RMAI study. aided by three years of good monsoon. ahead of the 17-18 per cent growth from urban India. Procter &Gamble Hygiene &Health Care 10. 3.03 billion in August 2008 and the rural market accounted for a robust 57 per cent share of the total FMCG market in India. Godrej Consumer Products intends to increase revenue from rural areas from 38 per cent to 55 per cent . Britannia Industries 9. 4. 5. Asian Paints (India) 7. The FMCG industry in India was worth around US$ 16. Hindustan lever limited (HLL) 2. higher prices of farm produce and farm-loan waiver. Colgate-Palmolive (India) Ltd. GCMMF (AMUL) 5. The FMCG sector saw rural markets post 20 per cent growth.

49 billion. Pharmaceuticals According to a report by McKinsey. The tier-II market will grow to 44 per cent by 2015.000 villages in the next couple of years from the present 18. amounting to US$ 8. plans to increase its sales by 8-9 per cent mainly . The products will reach out to 50.3 million over interim budget estimate 2009-10 of US$ 2. Major domestic retailers like AV Birla. or around 40 per cent of the US$ 280 billion retail market. Elder Pharmaceuticals is increasing its focus on the rural market.500 in a year. the rural and tier-II pharma market will account for almost half of the growth till 2015. Project Shakti (Hindustan Unilever) and Naya Yug Bazaar are established rural retail hubs. Reliance Fresh.8 billion. The company that largely makes active pharmaceutical ingredients. Godrej. Retail The rural retail market is currently estimated at US$ 112 billion. Reliance and many others have already set up farm linkages.Rural marketing in the next three years by increasing its distribution network substantially. Hariyali Kisan Bazaars (DCM) and Aadhars (Pantaloon-Godrej JV). ITC. Kisan Sansars (Tata).300 to almost 6. This growth will be further augmented with the government increasing the allocation under National Rural Health Mission (NRHM) by US$ 424.000 villages while the number of towns covered will double from 3. Choupal Sagars (ITC).

Rural marketing from rural areas and has allocated US$ 8.26 million to strengthen the sales force for this segment.

Telecommunication
A Gartner forecast revealed that Indian cellular services revenue will grow at a compound annual growth rate (CAGR) of 18.4 per cent to touch US$ 25.6 billion by 2011, with most of the growth coming from rural markets. Also, a joint Confederation of Indian Industries (CII) and Ernst & Young report reveals that of the next 250 million Indian wireless users, approximately 100 million (40 per cent) are likely to be from rural areas, and by 2012, rural users will account for over 60 per cent of the total telecom subscriber base in India.

In a bid to acquire rural subscribers, most Indian telecom operators have started investing in infrastructure to roll out their services in these areas. Realising this as a huge potential, small Indian handset manufacturing companies, including Micromax, Intex Technologies and Karbonn, have lined up a marketing spent of around US$ 21.02 million for the financial year 2009-10.

Rural marketing

Automobiles
For the auto industry, semi-urban and rural markets contribute close to 40 per cent of sales, led by demand for twowheelers, entry-level cars and tractors. Significantly, car sales grew 8.3 per cent in June 2009, aided by rising demand in semiurban and rural markets. Mahindra & Mahindra is bullish on the rural and semi-urban markets, with its utility vehicle, Scorpio clocking 60-65 per cent sales from the rural markets as against 20 per cent earlier. TVS Motor also registered around 50 per cent of its sales from the rural and semi-urban markets.

Consumer durables
A survey carried out by RMAI has revealed that 59 per cent of durables sales come from rural markets. Presently, around 50 per cent of sales in the US$ 5.14 billion consumer electronics industry come from the urban markets, 30 per cent from tier-II and -III towns and balance 20 per cent from rural India. Many leading consumer durable companies are now increasing their presence in rural India. Recently, LG has set up 45 area offices and 59 rural and remote-area offices. Moreover, it

Rural marketing has outlined plans to invest around US$ 40 million towards development of entry-level products targeted at rural markets. 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. Samsung expects that its rural revenues would increase to US$ 287.7 million in 2009 from US$ 164.4 million last year. The company also plans to expand its sales channel by 25-30 per cent in rural India. Whirlpool, is eyeing rural markets in India for its next phase of growth. The company is set to tap markets with a population between 100,000 and 500,000 in the first phase, and in the next phase, will look at expanding the base in villages with a population of 50,000.

Nature of Rural Market

Large, Diverse and Scattered Market: Rural
market in India is large, and scattered into a number of regions. There may be less number of shops available to market products.

➢ Standard of Living and rising disposable income of the rural customers: It is known that majority of the rural population lives below poverty line and has low literacy rate. In the event of a crop failure. They are also educating themselves on the new technology around them and aspiring for a better lifestyle. Rising literacy levels: It is documented that approximately 45% of rural Indians are literate. low savings. Traditional Outlook: Villages develop slowly and have a traditional outlook. societal backwardness. good monsoon. low per capital income. Hence awareness has increases and the farmers are well-informed about the world around them. Diverse socioeconomic background: Due to dispersion of geographical areas and uneven land fertility. Change is a continuous process but most rural people accept change gradually. communication system. But the new tax structure. warehouses. Today the rural customer spends money to get value and is aware of the happening around him. This is gradually changing due to literacy especially in the youth who have begun to change the outlook in the villages. the income of the rural masses is directly affected. Infrastructure Facilities: The infrastructure facilities like cemented roads. etc. and financial facilities are inadequate in rural areas. Hence physical distribution is a challenge to marketers who have found innovative ways to market their products. ➢ ➢ ➢ ➢ . rural people have disparate socioeconomic background. government regulation on pricing has created disposable incomes.Rural marketing ➢ Major Income of Rural consumers is from Agriculture: Rural Prosperity is tied with agriculture prosperity. which ultimately affects the rural market.

15. 3.000) for rural sector is 27.4 million as compared to the figure of 29. decider. Purchase processinfluencer.0002.Myth-1: Rural Market Is a Homogeneous Mass Reality: It’s a heterogeneous population. Literacy (Kerala 90%.5 million for urban sector.Rural youth brings brand knowledge to Households (HH). buyer. Marginal farmers: Labors. .74% in urban between 1970-71 and 1993-94. Rural incomes CAGR was 10.95% compared to 10. small farmers. State wise variations in rural demographics are present viz.Myth-2: Disposable Income Is Low Reality: Number of middle class HHs (annual income Rs 45. 2. Bihar 44%) and Population below poverty line (Orissa 48%. Punjab 6%).Myth-3: Individuals Decide About Purchases Reality: Decision making process is collective. Traders. artisans. one who pays can all be different.Rural marketing Some Myths: 1. So marketers must address brand message at several levels. Various Tiers are present depending on the incomes like Big Landlords.

rural markets have become an attractive proposition for commercial business organizations. Vs Developmental: Transactional Vs Development Marketing S. The role of rural marketing as such is more developmental than transactional. societal concept Catalytic and transformation agent Social change Social innovations and communications 2. 4. projects/schemes/prog rams . Nature activity Participants 7. Aspect Concept Transactional Consumer orientation. Marketing concept Stimulating and conversional marketing Product-market fit Product innovations and communications of Commercial Corporate enterprises.N o 1. Transactional For better comprehension of this role let us distinguish development marketing and transactional marketing. Table brings out the differences in brief. Role 3.Rural marketing Is rural marketing transactional or developmental in its approach? It is true. voluntary agencies. Offer Socio-cultural. Focus Key task 5. 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. corporate enterprises. benefactors and Development. 6. Sellers Products services Development Society orientation. economic Government.

Communicati on Goal Buyers Functional Profits. encourage . Initiation and management of social and economic change in the rural sector is the core of the rural marketing process. Such a change narrows the rural-urban divide. • Rural marketing process is both a catalyst as well as an outcome of the general rural development process. • Communication is the vital element of rural marketing. It should serve to resolve social conflicts. 12. • The exposure of ruralites 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. Time-Frame Motivation Model: The model of rural marketing represents a combination of the transactional and developmental approaches. • Innovation is the essence of marketing. Customer satisfaction Brand image Short-medium Profit-motive Business policy Beneficiaries buyers Developmental and Market development Corporate Image Medium-Long Service-motive Ideological or Public policy 11. Innovative methods of social change for successful transformation of traditional society are virtual. • The process of transformation can be only evolutionary and not revolutionary. Target group 9.Rural marketing 8. 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. 10. It becomes in this process both benefactor and beneficiary.

• The Poor: This constitutes a huge segment. Thus the market is also . The farmers of Bihar and Orissa fall under this category. They have affordability but not form a demand base large enough for marketing firms to depend on. logistics. Roadblocks of Indian Rural Market There are several roadblocks that make it difficult to progress in the rural market. proper and effective deployment of sales force and effective marketing communication when they enter rural markets. Marketers encounter a number of problems like dealing with physical distribution. Purchasing power is less. Standard of living: The number of people below the poverty line is more in rural markets. Another critical point for communication is the point of conversion of ruralite from an "induced beneficiary" to an "autonomous buyer". Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group. Farmers cultivating sugar cane in UP and Karnataka fall in this category. 1.Rural marketing cooperation and strengthen competitive spirit during interactions between rural and urban as well as within rural areas. They receive the grants from government and reap the benefits of many such schemes and may move towards the middleclass. The major problems are listed below. Classification of rural consumers The rural consumers are classified into the following groups based on their economic status: • The Affluent Group: They are cash rich farmers and a very few in number. but strength is more. • The Middle Class: This is one of the largest segments for manufactured goods and is fast expanding.

who are not easily available for rural areas. Low literacy levels: The low literacy levels in rural areas leads to a problem of communication. However. Many villages are located in hilly terrains that make it difficult to connect them through roads. 2. They are mainly dependent on dealers. the rest of the rural markets do not even have a proper road linkage which makes physical distribution a tough task. As far as road transportation is concerned. as there is hardly any organized agency to look after the storage issue. Many languages and diversity in culture: Factors like cultural congruence. Due to lack of proper infrastructure.Rural marketing underdeveloped and marketing strategies have to be different from those used in urban marketing. 3. 5. Print media has less utility compared to the other media of communication. about 50% of Indian villages are connected by roads. different behaviour and language of the respective areas make it difficult to handle the . 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. which in turn increases the cost and creates administrative problems. Transportation and warehousing: Transportation is one of the biggest challenges in rural markets. manufacturers are reluctant to open outlets in these areas. Most marketers use tractors or bullock carts in rural areas to distribute their products. Warehousing is another major problem in rural areas. 6. Demand may not be stable or regular. Low per capita income: Agriculture is the main source of income and hence spending capacity depends upon the agriculture produce. 4. Ineffective distribution channels: The distribution chain is not very well organized and requires a large number of intermediaries.

Traits among the sales force are required to match the various requirements of these specific areas. Dispersed markets: Rural population is highly dispersed and requires a lot of marketing efforts in terms of distribution and communication. Spurious brands: Cost is an important factor that determines purchasing decision in rural areas. providing a low cost option to the rural customer. 7. The literacy rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional. 8. 9. Lack of communication system: Quick communication is the need of the hour for smooth conduct of business. A lot of spurious brands or look-alikes are available. Harvest season might see an increase in disposable income and hence more purchasing power. Seasonal demand: Demand may be seasonal due to dependency on agricultural income. which may be a problem for effective communication. Attractiveness of rural market .Rural marketing customers. but it continues to be a far cry in rural areas due to lack of communication facilities like telegraph and telecommunication systems etc. 10. Many a time the rural customer may not be aware of the difference due to illiteracy.

the rural areas continue to be the place of living majority of Indians.000.Rising Rural Propensity: INCOME GROUP ABOVE 100.001100.7 8.Rural marketing 1. 2. 25.6 20. 50.0 41.000 RS.8 4.00177.25.000 RS.0% in 2006-07.000 will increase from 34. 77.3% in 1994-95 to 67.8 22. 25. Large Population: The rural population is large and its growth rate is also high.6 2.4 200809 5.000 RS.0 61.000 & BELOW 200001 RS. 1.77.000 RS.6 5.3 26.1 37.4 44.2 Thus we see that population between income level of Rs.00150. Despite the rural urban migration.7 13. The rural consuming class is increasing by .4 2005 -06 3.

382/-) 5 Low (Below 382/-) Rs.Rural marketing about 3-4% per annum. 3.2 million new consumers yearly.) LEVEL N O. STATES Punjab Kerala Haryana Rajasthan Gujarat Andhra Pradesh Maharashtr a West Bengal Orissa Tamil Naidu Uttar Pradesh Karnataka Assam Madhya Pradesh Bihar EXPENDITUR E High (Above 382/-) Rs 7 614 604 546 452 416 386 384 382 381 381 373 365 338 326 289 Average (Rs.Growth in consumption: PER CAPITA HOUSEHOLD EXPENDITURE (IN RS. 3 Distribution household’s income wise (projection in Rs Crore) 2001 – 02 2006 – 07 RURAL RURAL . which roughly translates into 1.

89 26 .4 TOTA L NO. 96 23 .26 12.9 0 Spending pattern (Rural Household’s in Rs.7 2 3. 32 3.7 3 5. % 0.) ITEM FOOD ARTICLES TOILETRIES WASHING MATERIAL COSMETICS OTC PRODUCTS % RIC H POO AVERAG R E 4 4 2 0 1 3 1 0 4 14 7 67 43 33 13 73 33 22 17 6 95 43 28 21 9 .52 16.9 64 .0 4 0.5 2 13.7 66 .0 7 7.0 4 5.1 61 .Rural marketing TOTA INCOME HIGH GROUPS MIDDLE LOW TOTAL L NO. % 0.7 71 .8 95 .7 0.1 2 10.68 20.2 88 .0 9 12.7 18.

4. milk & vegetables are Rs. 215/-.Life style changes: Income vs.Life cycle advantage: STAGES IN LIFE CYCLE PRODUCT URBAN MARKET GROWTH RATE % 2 11 6 RURAL Popular soaps Premium soaps Washing Maturit y Late growth Late Growth Early growth Early .Rural marketing OTHERS TOTAL 9 30 33 3 15 19 166 215 Average rural household spends on consumables excluding food grains.) UP TO 351 – 751 – 150 GOODS 350 750 1500 1+ WASHING 60 78 86 91 CAKES/BARS SHAMPOOS 57 72 89 93 TOOTH 22 36 65 85 PASTE/POWDER BATHING SOAPS 20 25 41 63 TEA (PACKAGED) 22 30 48 64 5. usage of packed consumer goods (% of household using) MONTHLY HOUSEHOLD INCOME (RS.

which can reach millions. cooking medium (oil). cigarettes and hair oil.Haats & Melas. However. and ➢ Lack of marketer’s imagination and initiative. failed in analyzing the rural side and exploiting rural India’s traditional selling system. tea.Their near obsession with just duplicating the urban-type . costs twice as much in urban area. ➢ Lack of proper infrastructure such as all-weather roads. radio. According to one research it costs roughly Rs. Campaign like this. Remoteness is no longer a problem: Remoteness in a problem but not insurmountable. Marketers have so far.Rural marketing powder Skin creams Tea growth Maturit y Maturit y 1. 8. The rural distribution is not much developed for the reasons.1 Crore to promote a consumer durable inside a state. The rural market share will be more than 50% for the products like toilet soaps. reaching them is costly. cooking medium (vanaspati). incinema advertising. van operations and merchandising and point of purchase promotion.1 4 growth Growth Growth 6. electrification and sanitation. Rural marketing is not expensive: Conventional wisdom dictates that since rural consumers are dispersed. new research indicates that the selling in Rural India is not expensive. Market growth rates higher: Growth rates of the FMCG market and the durable market are higher in rural areas for many products. television spots. 7. This includes the expenses of advertising in vernacular newspapers. body talcum powder.

Even High Level Faster Widely Spread Low Low Seasonal. Variation Low Level Slow CONSUMERS LOCATION LITERACY INCOME EXPENDITURE NEEDS INNOVATION/ADOPTI ON 3 PRODUCT AWARENESS CONCEPT POSITIONING USAGE METHOD QUALITY PREFERENCE High Known Easy Easily Grasped Good Low Less Known Difficult Difficult To Grasp Moderate . has kept them blind to the potential of these two outlets. Development Marketing & Relationship Marketing PHILOSOPHY 2 A) MARKET B) DEMAND C) COMPETITION High Low Among Units In Mostly From Organized Unorganized Sector Units Concentrated High High Planned. RURAL VS URBAN MARKETING N O.Rural marketing network and that too with very limited success. 1 ASPECT URBAN Marketing Societal Concepts Relationship Marketing RURAL & Marketing & Societal & Concepts.

stockists. More languages Occasionally Gifts. Village shops. & authorised showrooms Good Average High Limited ADVERTISING PERSONAL SELLING SALES PROMOTION PUBLICITY Print. price discount Good opportunities TV. few languages Door-to-door. specialty stores. radio. supermarket. print media to some extent. exhibitions etc. “Haats” retailer.Rural marketing 4 PRICE SENSITIVE LEVEL DESIRED Yes Medium-high Very much Medium-low 5 DISTRIBUTION CHANNELS TRANSPORT FACILITIES PRODUCT AVAILABILITY 6 PROMOTION Wholesalers. gifts. frequently Contests. outdoors. audio visual media. price discounts Less opportunities .

It spent Rs. . Imitations may result in two types of goods depending upon the purpose. Sampoorna TV: LG Electronics. In fact it is considered to be a high priority list. copycat products. a poor imitator may even produce an improved version of the original product. it is poor cousin to the original. On the other hand. and competence of imitator. The logic. spurious. He prefers thick watches than slim watches. Tamil and Bengali. the Korean firm has rejigged the TV to appeal to local needs. He dupes the gullible customer by offering products having close resemblance with the original. fake. In quality. Transporter: The biggest problem that the Marketers are facing in the Rural Markets is Of IMITATIONS.Rural marketing Special Products for Rural Markets: • Rural • • 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. 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 tractor-trolley. Titan Watches: A recent NCAER study revealed that there is a great potential for watches in rural areas. 21 Lacs to develop a set that would have on-screen displays in the vernacular languages of Hindi. rural consumers unfamiliar with English would still be able to use the TV without being intimidated. commitment. A poor imitator will end up in producing deceptive. It was also found that a rural consumer looks for the ruggedness of the watch more than the urban consumer does.

Pump Sets Shikakai powder. Brick Powder. Motors. 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 Need-Product Relationships and the changes happening in Rural India Needs Old Products New Products Brushing Teeth Neem sticks. Besan hair care soaps CONSUMER BEHAVIOR IN RURAL MARKETS: Promotion of brands in rural markets requires the special measures. Motor cycles Wells. Horses. LCVs. Shampoos and Retha. Husk Coconut fiber. 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. Due to the social and backward condition the personal . Ash Bullock Cart. Water Bore-wells. lifters. Earthy materials. Rocksalt. Charcoal. Scooters. soaps and liquids Washing Vessels Transport Irrigation Hair Wash Tractors. Canals. Wind Mills Power Generators. Donkeys Toothpaste. tooth powder Washing Powders. Mopeds.Rural marketing In this scenario the job of the Marketer becomes even more difficult insense that he has not to fight other competitors but also the imitated products.

The low rate finance availability has also increased the affordability of purchasing the costly products by the rural people. The companies are trying to trigger growth in rural areas. (i)The rural market has the opportunity for. (ii) The rural marketing required the separate skills and techniques from its urban counter part. which MNC don't enjoy in this regard. They are identifying the fact that rural people are now in the better position with disposable income. 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. Marketer should understand the price sensitivity of a consumer in a rural area. The Marketers have following facilities to make them believe in accepting the truth that rural markets are different in so many terms. Infect the opinion leaders are the most influencing part of promotion strategy of rural promotion efforts. (ii) Low priced products can be more successful in rural markets because the low purchasing. This paper is therefore an attempt to promote the brand image in the rural market. consumer demand-pull and efficient and dedicated dealer network which have been created over a period of time. The Indian established Industries have the advantages. purchasing powers in rural markets.Rural marketing selling efforts have a challenging role to play in this regard. The rural market has a grip of strong country shops. . The experience of agricultural input industry can act as a guideline for the marketing efforts of consumer durable and non-durable companies. Relevance of Mass Media is also a very important factor. The word of mouth is an important message carrier in rural areas. which affect the sale of various products in rural market. The strong Indian brands have strong brand equity.

which will be presented in the paper. geographical location. (iv) The rural markets can be worked with the different media environment as opposed to press. The work is . India's rural consumers account for about 73 percent of the total consumers. economic conditions and problems. A free market economy provides freedom to the consumers to buy and consume goods of their choice. etc. film. cultural environment. radio and other urban centric media exposure.Rural marketing (iii) Rural consumers have mostly homogeneous group with similar needs. The strategy. How does reality affects 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 in the rural market with the definite goals and targets but not for a short term period but for longer duration. governmental intervention through legislations. exposure to the media. more importantly. In India. The ultimate objective of all production is consumption. literacy level. such as socio-economic conditions. The buying preferences of consumers send signals to producers to produce various commodities in required quantities. therefore. occupation. efforts on the part of sellers. produces only those commodities which are desired by the consumers. information technology. The buying behavior of the rural consumers is influenced by several factors. The Research paper will discuss the role of regard. 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. Producers. In recent years. consumer behavior has changed in recent years owing to enhanced awareness. This book examines the buying behavior of India's rural masses and the diverse factors which influence their choices.

RURAL CONSUMER PREFERENCES: In order to assess the buyer behavior towards certain critical aspects of marketing. has a very strong influence on the buyer behavior. It includes: 1) Media 2) Newspaper brand 3) Sources of information. Factors influencing buying behavior The various factors that affect buying behavior of in rural India are: 1. Electrification.The environment or the surroundings. Environmental of the consumer . water supply affects demand for durables. the preferences of the consumers is directly related to: 1) Price 2) Quality 3) Credit 4) Variety 5) Dealer advice 6) Specific brand. PURCHASE BEHAVIOR: Rural people can buy only from three places includes: 1) From the shop in the same village 2) Weekly bazaar 3) From the shop of nearby town. egs. within which the consumer lives.Rural marketing useful for understanding the Indian rural consumer psyche in order to formulate an appropriate marketing strategy. .

More than 70% of the people are in small-scale agricultural operation. Many people in the rural market are below poverty line & for large number of people. 6. Washing machine being used for churning lassi. HMT sells more winding watches in the north while they sell more quartz watches down south.Rural marketing 2. 4. 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 better quality. The study of product end provides indicators to the company on the need for education and also for new product ideas. Geographic influences . Thus. purchase of durable has less to do with income. Place of purchase . villages in South India accept technology quicker than in other parts of India. Creative use of product . agriculture is the primary occupation. becomes an attractive proposition. variety & price) Companies need to assess the influence of retailers on both consumers at village shops and at haats. Industry observers are increasingly realizing that at times. For instance.The geographic location in which the rural consumer is located also speaks about the thought process of the Consumer. 5. what the customer will be able to buy. which determine to a great extent. Family size & the roles played by family members exercise considerable influence on the purchase decisions. These factors affect the purchase decision. Family – it is an important buying decision making organization in consumer markets. Economic factors – The quantum of income & the earning stream are one of the major deciding factors. 3. .ex Godrej hair dye being used as a paint to colour horns of oxen.

But however. Social practices: There are so many different cultures. in rural India. which could be used individually. Product (colour. the viewpoint is totally opposite. with a larger seating capacity and ability to transport good. Some of the few cultural factors that influence buyer behavior are: 1. Culture is the most basic element that shapes a person’s wants and behavior.(80% of sale is branded items in 16 product categories) Cultural factors influencing consumer behavior Cultural factors exert the broadest and deepest influence on consumer behavior. For example. That is the main reason for the large acceptance of big audio systems. b. the Tata Sumo. However. This helped lifebuoy to introduce smaller 75-gram soap bars. and each culture exhibits different social practices. a.Rural marketing 7. and shape): There are many examples that support this point. 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. the acceptance was higher. was not well accepted. size. Another good example would be Philips audio systems. The marketer needs to understand the role played by the buyer’s culture. in a few villages they have common bath areas. design. Urban India looks at technology with the viewpoint of ‘the smaller the better’. which was launched in rural India in a white colour. which only goes on to make the marketer’s job tougher. there are so many different cultures. In India. when the same Sumo was re-launched as Spacio (a different name) and in a bright yellow colour. 2. Thus Philips makes audio systems. Brand preference and loyalty . For example.

The more daring MNC’s are meeting the consequent challenges of availability. and inaccessibility to conventional advertising media. Changes in saving and investment patterns: From gold. land. to tractors. this trend is very prominent. In rural areas. acceptability and awareness (the so-called 4 A’s) » Availability The first challenge is to ensure availability of the product or service. However. acute dependence on the vagaries of the monsoon. For example.Rural marketing 3. the rural consumer is not unlike his urban counterpart in many ways.2 million sq km. large number of daily wage earners. finding them is not easy. seasonal consumption linked to harvests and festivals and special occasions. Decision-making by male head: The male in Indian culture has always been given the designation of key decision maker. However.000 villages are spread over 3. power problems. in most cases. VCR’s. LCV’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. poor roads. 700 million Indians may live in rural areas. the Mukhiya’s opinion (Head of the village). India's 627. is shared with the rest of the village. affordability. Even in a house the male head is the final decision maker. 4. given the poor state of roads. Any serious marketer must strive to reach at least . it is an even greater challenge to regularly reach products to the farflung villages.

Hindustan Lever. Lifebuoy at Rs 2 for 50 gm. among the first MNC’s to realize the potential of India's rural market. has built a strong distribution system which helps its brands reach the interiors of the rural market. most of who are on daily wages.113 villages with a population of more than 5. » Affordability The second challenge is to ensure affordability of the product or service. once a week. twice a week. Colgate toothpaste launched its smaller packs to cater to the travelling segment and the rural consumers.Godrej recently introduced three brands of Cinthol. To tap these unexplored country markets. smaller distributors in adjoining areas. Bihar and Uttar Pradesh — the so-called `Bimaru' States. Fair Glow and Godrej in 50-gm packs. which considers rural India as a future growth driver. Fair and lovely was launched in a smaller pack. priced at Rs 4-5 meant specifically for Madhya Pradesh. bullock-carts and even boats in the backwaters of Kerala. LG Electronics defines all cities and towns other than the seven metros cities as rural and semi-urban market. To ensure full loads. products need to be affordable to the rural consumer.000. Marketers must trade off the distribution cost with incremental market saturation. a subsidiary of Unilever.Rural marketing 13. LG has set up 45 area offices and 59 rural/remote area offices. stockiest use auto rickshaws. The move is mainly targeted at the rural market. Coca-Cola has addressed the affordability issue by introducing the returnable 200-ml glass . Over the years. has launched a variant of its largest selling soap brand. has evolved a hub and spoke distribution model to reach the villages. CocaCola. the company depot supplies. Most of the shampoos are available in smaller packs. These distributors appoint and supply. With low disposable incomes. large distributors which who act as hubs. Hindustan Lever. India's largest MNC. To service remote village. Some companies have addressed the affordability problem by introducing small unit packs.

» Acceptability The third challenge is to gain acceptability for the product or service. In 1998. One company which has reaped rich dividends by doing so is LG Electronics. a powdered soft-drink concentrate. 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. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. the rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer.Rural marketing bottle priced at Rs 5. 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. Because of the lack of electricity and refrigerators in the rural areas. HDFC Standard LIFE topped private insurers by selling policies worth Rs 3.5 crores in total premium. It was a runway hit selling 100. Coca-Cola has also introduced Sunfill. The company tied up with non-governmental organizations and offered reasonably-priced policies in the nature of group insurance covers. the family is the key unit of identity. however.000 sets in the very first year. it developed a customized TV for the rural market and christened it Sampoorna. The insurance companies that have tailor-made products for the rural market have performed well. the rural consumer expressions differ from his urban counterpart. The initiative has paid off: Eighty per cent of new drinkers now come from the rural markets. . there is a need to offer products that suit the rural market. Fortunately. Therefore. Consumption of branded products is treated as a special treat or luxury. However. Coca-Cola provides low-cost ice boxes — a tin box for new outlets and thermocol box for seasonal outlets.

Evolving a New Marketing Mix for Selling to Rural Indians The marketing mix in the case of Indian rural markets consists of 4P’s i. which alone reached 41 per cent of rural households. posters and tapped all the local forms of entertainment. the family is the key unit of identity.6 per cent of rural households.Rural marketing » Awareness Brand awareness is another challenge. LG Electronics uses vans and road shows to reach rural customers. . Coca-Cola advertising stressed its `magical' price point of Rs 5 per bottle in all media. These are promotional events organized by stockiest. The company uses local language advertising. Godrej Consumer Products.e. Coca-Cola uses a combination of TV. Since price is a key issue in the rural areas. Hindustan Lever relies heavily on its own companyorganized media. which is trying to push its soap brands into the interior areas. however. the rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer. However. It doubled it’s spend on advertising on Doordarshan. It has also used banners. the rural consumer expressions differ from his urban counterpart. Philips India uses wall writing and radio advertising to drive its growth in rural areas. uses radio to reach the local people in their language. Fortunately. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. Consumption of branded products is treated as a special treat or indulgence. The key dilemma for MNC’s ready to tap the large and fast-growing rural market is whether they can do so without hurting the company's profit margins. cinema and radio to reach 53.

Place combined with 1 P that is Packaging and one R i. However. . Put in a different EDUCATIO context. India’s rural markets are often misunderstood. Promotion.e. Price. demographical. The concept of marketing has to be taken in conjunction with economic. 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. Retailer as special focus areas. individual subsets of this market tend to be rather small and disparate. However. Hence. 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. If such a distinction is not made. The face of Indian agriculture is changing from dry land and irrigated agriculture into high-tech and low-tech agriculture. Though the aggregate size is very large. this works out to 1 in 8 NT people on Earth. psychological and social implications. The rural market is not homogeneous. In rural India’s case the two most important considerations are Education and Empowerment opportunities which traditional approaches of marketing fail to acknowledge. logistical differences are very apparent. A clear distinction needs to be made with regard to the reality versus the image of rural India. The traditional marketing hypothesis tends to ignore the CUSTOMIZATI ONN requirement of a developing country’s rural needs. at the base of this marketing mix will be 2 E’s of Education and Empowerment. 12.Rural marketing Product. myths abound. statistical. Being able to N successfully tap this growing market is every marketer’s dream. Then only the opportunity provided by the rural market can be fully tapped. we will be unable to distinguish between the serpent and the rope and the rope and the serpent. Geographical.2% of the world livesEMPOWEREME in Rural India.

Such creation of demand needs efficient management of the supply chain. This has radically changed the economics of farming.. At most times.. However.. 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. including green house cultivation. plan and act locally. the need for a product or service is now adequately backed up with the capacity. The various product levels as outlined by Philips Kotler.. due to the diversity of this market.. profits to producers and benefits for stakeholders... the market still remains largely unexploited. Product “Authentic marketing is the art of identifying understanding customer needs and creating solutions deliver satisfaction to the customers. The growing incomes have modified demand patterns and buyer behaviour.” . The aspirants are becoming climbers showing a sustained economic upturn as purchasing power is increasing in the rural markets. As a result. increasing yields due to integrated crop management practices and reducing the dependence on rainfall. with the investment in these systems lowering the cost of cultivation.. Philip Kotler and that the the The product offerings have to be not only customized but also at a different plane altogether in case of rural markets. namely Core Benefit. even created.. ... Moreover. marketers need to think... potential markets need to be found and at times.Rural marketing Farmers in states like Maharashtra and Andhra Pradesh have reaped the benefits of adopting new age farming practices.fold.. fert-irrigation and hydroponics. The proportion of very rich has increased five.. ability and willingness to pay.... Further. disposable income has grown sharply. To increase market share.

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

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

Rural marketing Product life cycles as are becoming shorter and these are having their impact on company life cycles. Thus for any company wishing to develop its product portfolio, allegiance to the classic American P-A-L Principle of Partnership - Alliances - Linkages is a basis for survival.

Pricing
A significant portion of the rural population is paid in daily wages. Daily wage earners tend to have little stock of money, and therefore tend to make purchases only to meet their daily needs. The implication is that pack sizes and price points are critical to sales, and importantly, that rural consumers view the purchasetradeoff dilemma across a much wider range of product categories. As a result, the nature of competition is much greater; a beverage manufacturer is not only competing with other manufacturers in its category, but also other products that consumers may consider one-off luxury purchases such as shampoo. So marketer will have to examine method by which he can make the product more affordable. In the case of consumer durable one way is to work through rural bank and offer higher purchase terms to consumer. In short, the Value for money is the most important concept that will differentiate the successful brand from the rest.

Rural marketing
STATUS SEEKING CONSUMERS BUDGET CONSCIOUS CONSUMER

Every marketer must realize that the rural consumer is not a miser. He is not simply looking for the cheapest product in every category. He understands and demands value for money in every purchase that he makes. Pricing therefore is a direct function of factors including cost-benefit advantage and opportunity cost. Pricing offered to consumers should be for value offerings that are affordable. Price sensitivity is extremely high and comparison with competitive prices is common. Consumers seem to create narrow psychological price bands in their minds for product groups and price elasticity beyond the extreme price points are very high. The perceived utility or value of the product or service is the ultimate decision making factor. It is certain however, that buying cheap is not the primary objective. Rather, it is “buying smart”. 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. 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. It must be remembered that the rural consumer does not have a budget problem. He has a cash flow problem. This is because the village folk receive funds only twice a year. At these times, he is capable of making high volume purchases. At all times, however, the unit price is critical and so is the pack size. Because of this, in the lean season when there is a cash flow crunch, marketers need to provide financial products, schemes or solutions that suit the needs of the rural population.

Promotions & Advertising

Rural marketing There are a lot of barriers that militate against homogenous media and message delivery. These barriers stem from the fact that rural markets vary immensely in terms of tastes, habits and preferences leading to different expectations of every segment of the population. However, one fact is certain across all areas. The rural consumer likes to touch and feel a product before making a choice. Demonstrations are undoubtedly the most effective promotional tool that shapes purchase decisions of the rural population. Demonstrations establish the credentials of any new technology used in developing the product. In today’s information era, it is very important for companies to wise-up on emerging technologies. It has in fact become a medium to attract larger audiences for a product demonstration. Technology must be used to prepare a database of customers and their requirements. The use of video using mobile vans and even large screen video walls at events should be arranged. The classic conundrums of reach and coverage of the media are shattered. 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. This is required because a large proportion of the rural population cannot read or write. Alliances with cottage industries, dharmsalas, panchayats, post offices and police stations for advertising have also helped immensely. More importantly, in rural India, experience has proved time and time again that word of mouth is the key influencer. Intermediaries are the foundation to rural distribution. If the intermediary understands and is constantly reminded about your product, then the end user will not be allowed to forget. 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. This becomes all the more important when in rural India, more often than not, the overlap

the point at which the customer actually comes in contact with a product may not be the point at which the sale is affected. free samples. encourage spending.Rural marketing between the product categories sold in a single outlet in tremendous. So marketers must address brand messages in their campaigns at several levels. decider. In such cases. The re-use capacity and colour of the container in which the product is packed is also a crucial factor. Consumer and Trade schemes that Incentivise Spending using discount coupons. For instance. etc. Lucky draws and gift schemes are a major hit in most states. In fact. 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. 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. off season discounts. buyer. This has forced several companies to change the focus and positioning of . This promotion strategy thus makes women influence purchase decisions that they would ordinarily not be involved in. The persons involved in the purchase process . Youth power is becoming increasingly evident in villages.influencer. one who pays can all be different. reusable packaging is considered a major aid in promoting sales for products in the rural market. Another unique feature of rural markets is that the Decision making process is collective. Rural youth bring brand knowledge to the households. Apart from regular household goods. 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. No high voltage publicity is required. 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.

Rural marketing their products and services towards this segment that is growing in absolute number and relative influence. This is the reason why opinion leaders and word of mouth are thriving among rural consumers. This can be achieved only by personal selling by highly motivated sales person. The following are the mass media generally used: ✔ Television. In fact the word of mouth information holds lot validity in rural areas even today. There are other attributes in the promotion strategy which are explained as under: 1. Brooks Bond carries out marches in rural areas with band. 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. Personal selling and opinion leaders: In personal selling it is required that the potential users are identified and awareness is created among them about the product. Mass media: In the present world mass media is a powerful medium of communication. Special campaigns: During crop harvest and marketing seasons it is beneficial to take up special promotion campaigns in rural areas. banners. ✔ Cinema. ✔ Radio. etc. its features. ✔ 2. stickers. posters. uses and benefits. music and caparisoned elephants to promote their brand of tea. The opinion leaders may be big landlords or politicians or progressive farmers. 3. Mandi and Mela magic . Tractor owners (tonee) conducted by MRF Limited is one such example. ✔ Print media: Handbills and Booklets.

it has been observed that melas are fit to generate product exposure. However. On an average. such melas are not suitable promotion media. 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. package familiarity.000 a day. India witnessed over 50. distribution & consumption is very different from a town or city. 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. Of these 25. Thus. thus the general marketing theories can’t be applied directly in rural markets. brand reminder and word of mouth. There is however. Managing Director of Multimedia Aquarius. 5. a caveat when an organization is considering using mela for marketing their products. A village as a place for promotion.000 melas. 3 lakh people visited the annual mela at Navchadi which lasts for 7 days in Meerut. visitors at these melas spend between Rs. a large amount of qualitative judgment is indeed in planning promotions at melas by media planners. Place place is the major reason behind the evolution of rural marketing as a distinct discipline. promotion at melas is like a “one night stand”. The largest such mela is the Maha Kumbh Mela which is visited by an average of 12 crore people. There will be no reminder later. 50. This is 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. cultural festivals as well as local fairs and events.Rural marketing At last count. for products that need concept marketing and those that have high prices. On considering these questions.000 to Rs. In the words of Mr. Neville Gomes.000 meals are held to signify religious. For example. Reaching the right place .

the most crucial link in ensuring the success of rural marketing efforts is distribution. However. Thus.5. Most of the times. Further compounding this problem is the fact that even this meagre sale is mostly on credit. Distribution must be strengthened and this would raise investment cost barriers for new entrants. . 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 rural retailers themselves go to the urban areas to procure these goods. these products fails to reach the village as the distribution channel fails to put in the required efforts. Urban and Rural India both have approximately 3 million retail outlets.3 lakh villages. but due to higher distribution costs. as most of the products reach up to the nearest townships of any village. In Rural India. Significance of Distribution No matter how well devised a company’s product. The reason for this is very clear when we consider that on an average.Rural marketing is the toughest part in today’s rural marketing. Rural India’s 3 million outlets are located in 6. the selection and use of distribution channels is a nightmare.000 per outlet. The diversity in the distribution of shops is the self-limiting factor in terms of servicing the rural distribution network. Rural markets imply complex logistical challenges that show up as high distribution costs. Urban India has only 4. pricing or promotion strategy. On the other hand.000 towns where these outlets are located.

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

They are a readymade distribution network embedded in the fabric of rural . It is therefore not necessary for a marketer of TV sets to take their distribution channel all the way down to the village shop. Keeping the hierarchy in mind will help decide the optimum level of penetration required to reach a critical mass of rural consumers. Rural folk are habituated to travelling once a week for their weekly purchases to a satellite town. A television distributor must be present at assembly markets which are much smaller in number. They do not expect such items to be present in every village. After such sale of produce. easier to reach and service.Rural marketing It is essential for rural marketing companies to understand this hierarchy. A TV will not be sold there as the cash flow does not exist at that point in the hierarchy of markets. For durables where the outlay involved is typically large. they are cash rich and can afford to make such purchases. Haats Haats are the nerve centre of Rural India. 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. the purchase would be made in an assembly market for reasons of choice and availability of adequate cash flow.

Traditionally. They have been held on a regular basis across the length and breadth of the country for over 1000 years. the system gets derelationalised. incorporating haats in the distribution strategy of a rural marketing organization selling consumer goods and FMCG products (typically once a week purchase items) is a tremendous opportunity. Participation fees at haats are a flat Re. One in every five villages with a population of over 2000 has a haat. Thus.000 haats are conducted in rural India. Considering that over 5000 visit a haat from 5 villages. 5 to 7% is conducted on barter system and the rest 3 to 5% is on credit.Rural marketing society for over 1000 years. Considering that the average population of an Indian village is approximately 1000. Apart from the 90% cash sale. cultural and economic interchange. What is most attractive to marketers is that 90% + of sales in haats are on cash basis. each haat serves 5 villages. in village shops a lot of credit sales occur due to the fact that in a small geographic area of a village. Perhaps the other most important factor to consider while developing rural distribution strategy is that the move from transactional marketing to relationship marketing is most evident .1 to Rs. These rural super markets are much larger than all the world's K-marts and Wal-marts put together. A haat usually serves around 5000 visitors. Also attractive to companies wishing to use the system is the low selling overheads. an average haat will have close to 300 stalls. In villages with less than 2000 people this figure reduces to 1 in 20 villages. everybody knows everybody. Haats are seen as a place for social. A lot of re-distribution also occurs through haats. This is because. Right from the time of Chandragupta Maurya. Typically.5 per stall and this rate is common to a giant like Hindustan Lever and the smallest local seller. A study estimates that 47. Distribution costs must be reduced through optimum utilization of the network. a large number of retailers and sub-wholesalers buy from haats for their village stores.

The dealers' feedback needs to be obtained as the direction for future strategy emanates here. There is a trade of . a tough heart and stiff hands survive. Marketing in Rural India is undoubtedly a long-haul exercise and one that involves great expense. The organization can do the following thing to start with: ✔ Focus on select markets. There is also a need to realise that the dealer is the company's "unpaid" sales force. It is essential to educate and involve him as he is the local company representative and is the only member in the channel of distribution that is in direct contact with the final consumer. The important thing is that appropriate segmentation basis need to be applied. ✔ Focus on select villages. ➢ BY COMMUNICATING AND CHANGING QUALITY PERCEPTION Companies are coming up with new technology and they are properly communicating it to the customer. Only those with a strong mind. Different product categories have different rural markets to cater to & these can be selected by applying different criteria of segmentation.Rural marketing in the village market. MARKETING STRATEGIES TO CAPTURE RURAL INDIA ➢ SEGMENTATION OF RURAL MARKET The first step is to develop & implement any strategy for the rural market should include the appropriate segmentation of the rural market. A strong bond needs to be created with every consumer even in the remotest village and the smallest town.

Their main focus is to change the Indian customer outlook about quality. ➢ BY PROPER LANGUAGE COMMUNICATION IN INDIAN The companies have realized the importance of proper communication in local language for promoting their products. this positioning of technology is very crucial. rural customer started asking for value for money. Villagers are constantly looking forward for new branded products. but they want value for money. Cinthol etc. They are ready to pay premium for the product if the product is offering some extra utility for the premium. As a rural Indian customer always wanted value for money with the changed perception. ➢ BY UNDERSTANDING CULTURAL AND SOCIAL VALUES Companies have recognized that social and cultural values have a very strong hold on the people. With their promotion. What can one infer from these incidents. villagers are using soaps like Nima rose. Now they know the difference between the products and the utilities derived out of it. even when they can use locally manufactured very low priced soaps. is the paradigm changing and customer no longer price sensitive? Indian customer was never price sensitive. ➢ BY TARGET CHANGING PERCEPTION If one go to villages they will see that villagers using Toothpaste. They have started selling the concept of quality with proper communication. The perception of the Indian about the desired product is changing. even when they can use Neem or Babool sticks or Gudakhu. Cultural values play . Breeze. Thus.Rural marketing between Quality a customer perceives and a company wants to communicate. one can notice difference in current market scenario.

They do not see any value in frills associated with the products. Moreover. However. They are happy with such a high technology that can fulfil their need. seven models of Cellular Phones of high technology but none took off. Thus. They aim for the basic functionality. ➢ BY PROMOTING INDIAN SPORTS TEAM . by explicitly saying that they are Indian. actors for advertisements as this helps them to show themselves as an Indian company. As "Motorola" has launched. ➢ BY PROVIDING WHAT CUSTOMER WANT The customers want value for money. if the seller provides frills free of cost they are happy with that. M-TV during Independence Day and Republic daytime make their logo with Indian tri-colour. 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. rural people are emotional and sensitive. with the India tri-colour and a ringing tone of "Sare Jahan se achcha". to promote their brands.Rural marketing major role in deciding what to buy. which has captured the market. Nokia has designed a new cellular phone 5110. On the other hand. they are exploiting social and cultural values. "Nokia" has launched a simple product. ➢ BY PROMOTING PRODUCTS MODELS AND ACTORS WITH INDIAN Companies are picking up Indian models. ➢ BY ASSOCIATING THEMSELVES WITH INDIA MNCs are associating themselves with India by talking about India.

Similarly. all the best". That is why companies like Daewoo based their advertisements on a normal Indian family. Whirlpool has also launched a campaign during world cup.000. all in towns with a population of around 10. during world cup they have launched a campaign "Jeeta hai jitega apna Hindustan India India India". Keeping into consideration the requirements. LG has launched a campaign "LG ki Dua. Like LG has used India brand name "Sampoorna" for its newly launched TV. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water. ITC is promoting Indian cricket team for years. and to withstand long power cuts. keep cooked food fresh. In the past one year. a firm develops these products. Hindi. Marathi and Tamil tongue. they influence Indian mindset. he /she become loyal to it. ➢ BY ACQUIRING INDIAN BRANDS . The word is a part of the Bengali. It is a normal tendency of an Indian to try to associate him/her with the product. ➢ BY DEVELOPING RURAL-SPECIFIC PRODUCTS Many companies are developing rural-specific products.Rural marketing Companies are promoting Indian sports teams so that they can associate themselves with India. With this. ➢ BY TALKING ABOUT A NORMAL INDIAN Companies are now talking about normal India. LG has sold one lakh 20-inch Sampoorna TVs. If he/she can visualize himself/herself with the product. ➢ BY GIVING INDIAN WORDS FOR BRANDS Companies use Indian words for brands.

MNCs have found that it is much easier for them to operate in India if they acquire an Established Indian Brand. folk theatre etc. The traditional media include melas. As well as trust of people. ➢ BY ADOPTING DISTRIBUTING LOCALISED WAY OF Proper distribution channels are recognized by companies. ➢ BY EFFECTIVE MEDIA COMMUNICATION Media Rural marketing is being used by companies. they thought that a similar system can be grown in India. they were wrong. Gold Spot. LIC uses puppets to educate rural masses about its insurance policies. the lights are switched of and a torch is flashed in the dark (EVEREADYs tact). and e-chaupal. puppetry.Rural marketing As Indian brands are operating in India for a long time and they enjoy a good reputation in India. They can either go for the traditional media or the modern media. Brook Bond Lipton India ltd used magicians electively for launch of Kadak Chap Tea in Etawah district. Citra and Limca so that they can kill these brands. but later on they realized that to survive in the market and to compete with their competitor they have to rejuvenate these brands. The distribution channel could be big scale Super markets. soon they realized that to . while the modern media includes TV. Electrolux has acquired two Indian brands Kelvinator and Allwyn this has gave them the wellestablished distribution channel. Similarly Coke has acquired Thumps up. Govt of India uses puppetry in its campaigns to press ahead social issues. as people believe these brands. In between such a show. radio. However.

➢ PAINTINGS . Makbul Fida Hussain a renowned painter who has created "Gajgamini" range of paintings. Companies take advantage of such events to market their products. They have to reach the "local Paan wala. Reebok. and to capture the market share in India they have to go the local market shoe sellers. 5000. Escorts also display its products like tractors and motorcycles in such melas. MNC shoe giants.Rural marketing succeed in India they have to reach the nook and the corner of the country. Local Baniya" only they can succeed. Adidas. who is promoted by Reebok. NCAER estimates that around half of items sold in these melas are FMCG products and consumer durables. a JV of Gillette and Luxor has launched 500 "Gajgamini" ranges of Parker Sonnet Hussain special edition fountain pens. priced at Rs. Dabur uses these events to sell products like JANAM GHUTI (Gripe water). Recently Luxor Writing Instruments Ltd. Companies are promoting players like Bhaichung Bhutia. They have to reach to local cities with low priced products. so that they can associate their name with players like him and get popularity. ➢ MELAS Melas are places where villagers gather once in a while for shopping. and Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India. ➢ BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES MNCs have realized that in India celebrities enjoyed a great popularity so they now associate themselves with Indian celebrities. This pen is signed by Mr.

The rural product usage environment is tough because of rough handling. They allow consumers to buy only what they need. etc.Rural marketing A picture is worth thousand words. pickles. experiment with new products. all these environmental factors must be considered while developing the products meant for rural audience. 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. The message is simple and clean. The advantage is that the price is low and the rural consumer can easily afford it. Thus. biscuits. Single serve packets or sachets are enormously popular in India. PEPSI and TATA traders advertise their products through paintings. Vicks cough drops in single tablets. tooth paste. This method has been tested by products life shampoos. Product Strategies The specific strategies. . COKE. Small unit packing: Given the low per capita income & purchasing habits of the rural consumers. Also the Red Label Rs. can be classified as follows: 1. Small packing stands a good chance of acceptance in rural markets. The small unit packing will definitely attract a large number of rural consumers. 3. which can be employed to develop or modify the products to targets the rural market.00 pack has more sales as compared to the large pack. small unit packages stand a good chance of acceptance in rural market. Rural people like the sight of bright colors. 2. rough roads & frequent power fluctuations. New product designs: Keeping in view the rural life style the manufacturer and the marketing men can think in terms of new product designs. & conserve cash at the same time.

A brand name or a logo is very important for a rural consumer for it can be easily remembered. the rural consumers do give their own brand name on the name of an item. heavier weight meant that it has more over and durability. 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. Its design has been modified to protect it against rough usage in rural environment. This is in real terms. For them. 3. On investigation it was found that the rural consumer bought radios not only for information and news but also for entertainment.Rural marketing Nokia’s 1100 model is a very good example of a customized model for rural markets. Utility oriented products: The rural consumers are more concerned with utility of the product and its appearance Philips India Ltd. Initially the sales were good but declined subsequently. 5. Brand name: For identification. The fertilizers companies normally use a logo on the fertilizer bags though fertilizers have to be sold only on generic names. thinking global & acting local. Many a time’s rural consumers ask for peeli tikki in case of conventional and detergent washing soap. transportation & storage. The product should be sturdy enough to stand rough handling. 4. It is also introduces messaging in Hindi language now. it is dust resistant & has a small torch light in view of the frequent power cuts in rural India. in some of the economically priced models in order to cater to the semi-urban or rural consumers. Sturdiness of a product either or appearance is an important for the rural consumers. Sturdy products: Sturdiness of a product is an important factor for rural consumers. . Developed and introduced a low cost medium wave receiver named BAHADUR during the early seventies.

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

Overall efficiency & passing on benefits to consumers: For rural products. generating large volumes & not big profit margins on individual products. Large volume-low margins (Rapid or slow penetration strategy): Marketers have to focus on 4. In categories where maintaining the price point is extremely critical. charges more than the MRP. If an organization gets the price point right. 5. 6. as was done by Coca Cola. The manufacture has to ensure price compliance either through promotional campaigns.Rural marketing product. then it can work in rural market. in the rural markets of India. so that a larger segment can afford it. Low volume-low price strategy: This strategy of reducing prices by reducing the package size in order to make it appear more affordable. distribution & advertising costs & passing on these benefits to the customers to further increase the turnover. expanding the market. or by ensuring the availability of products at the retail outlets directly. this strategy is delivering very good results. Promotion strategies . the strategy should be to cut down the production. Ensuring price compliance: Rural retailers. Most often. most of the times. is delivering very good results for a large number of FMCG product categories. 7. If they price their product at a level which can lead to good volumes. then they can still generate good returns on the capital employed. it has been observed that advertising has less to do with product sales in the rural areas. thus.

The theme of . The only we can have insights like ‘Thanda matlab Coca Cola’. Bombarding rural consumers with too much. 4. storyline.Rural marketing Customized promotional media & messages need to be developed by the organizations to effectively target the rural market. the theme of the advertisement needs to revolve among universal themes. in less time can easily confuse them & leave them bewildered. Think Global Act Local Rural population is diverse. It is preferable that it has only a few propositions at a time. There should be the use of language writers who understands the rural & regional pulse better. Think in Local Idiom This is the need of the advertising professionals who can think like the rural people. which can be easily understood. such as family-love. language & idioms should be such that the rural audience of different rural market segments can relate to. But the context. The following strategies can be considered while developing promotional campaigns for the rural markets: 1. but the commonalities of their ethos & simple living habits need to be understood for advertising to succeed. 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. 2. 3. & they should not include any confusing elements. 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. Simplicity & Clarity All promotional messages targeted at rural audience need to be simple & clear. For that.

The road blocks to reach the rural customers are: • Lack of adequate transport facilities. 5. Distribution Strategy Many companies view the rural markets as great opportunity for expanding their sales but find distribution as a major problem. 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. . Choice of Brand Ambassador Brand Ambassador for the rural markets need to be picked carefully as urban successes might not get replicated in the rural markets. Unfortunately.Rural marketing the story line can be about how the product can solve the problems of the rural consumers. That is why Govinda in the Mirinda as boosted the sales of the drink in the rural markets. The marketers were of the opinion that the villagers would come to nearby towns and buy the products that they want. it is almost impossible to transplant strategies which work successfully in urban markets onto rural markets. • Lack of proper retail outlets • Lack of mass media infrastructure. • Lack of pucca roads connecting villages to nearest townships. • Large distances between villages. 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. extensive retailing and sustained pull generation through mass media advertising. namely.

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

lubricants. In addition to petrol/diesel. sugar. The rural consumer who has tractors. radios. The rural customers visit these towns at regular intervals not only for selling the agricultural produce but also for purchasing cloth. 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. The manufacturing and marketing men should explore effective utilization of PDS. Distribution up to feeder markets/mandi towns: Keeping in view the hierarchy of markets for the rural consumers. kerosene. Utilization of public distributory system: The PDS in the country is fairly well organized. These shops are run by the state civil Supplies Corporation. From the feeder markets and mandi towns the stockiest or wholesaler can arrange for distribution to the village shops in the interior places. these outlets also stock consumables agricultural inputs like fertilizers. jewelry. Here again there is an arrangement for centralized procurement and distribution.Rural marketing 4. This . hardware. oil-engine pump sets and mopeds frequent these outlets for their requirement. torch cells and other durables and consumer products. The revamped PDS places more emphasis on reaching remote rural areas like the hills and tribal’s. 5. These outlets can be profitably utilized for selling consumables and durable items also. The shops that distribute these commodities are called fair price shops. the feeder markets and mandi towns offer excellent scope for distribution. It is estimated that there are about 450 such outlets in operation in the country. pesticides and seeds. cooperatives as well as private entrepreneurs. 6. edible oils and others to the consumers at a reasonable price. The purpose of PDS is to make available essential commodities like food grains.

Shandies/Haaths/Jathras/Melas: These are places where the rural consumers congregate as a rule. Merits: • • Convenience: The entire market can be related to large departmental stores in cities. cycles. 7. It can be beneficial for companies to organize sales of their product at such places. There are 50 such big rural fairs held in various parts of country. . which attract urbanite also like ‘Mankanavillaku’ in Malappara in Kerela. it is an attractive place to those who want to buy second hand durables and to those who prefer barter transactions. depending upon the township. Further the freshness of the produce. These outlets crop up every week. Such places attract large number of itinerant merchants. In respect of transactions. bullock-carts. Promotion can be taken. where the advantage is a onestop shopping exercise.000 fairs are held in the country and the estimated attendance is about 100 million rural consumers. ‘Periya Kirthigai’ at Tiruparunkunaram in Tamil Nadu.P. there will be entertainment. Attractive: The weekend shopping is not only convenient but also entertaining. buying in bulk for.Rural marketing distribution can be done by mopeds. For convincing the 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. The markets start early and will be over by lunch. as there will be ready captive audience. camelbacks etc. It is estimated that over 5. Jathras and melas are held once or twice a year for longer durations. Only temporary shops come up selling goods of all kinds. While shandies/heaths are held a particular day every week. Biggest fair ‘Pushkar Mela’ is estimated to attract over 10 million people. providing consumers immense choice and prices. Kumbh Mela at Hardwar in U. a week and the bargaining advantage attract the frugal and weeklong hard working rural folk. Afterwards. They are normally timed with religious festivals.

THE OLD SETUP . 10. It adds a personal touch to the marketing. Household goods. This is why there are about 2 lakh fertilizer dealers in the country. Similarly a co-operative supermarket called ‘Chintamani’ in Coimbatore (T.N) arranges free transit of rural consumers to the supermarket of their purchases. as the salesmen are the resident of the village or community itself. clothes. as per the essential commodities act. Joint distribution by Non-competing Companies: As the cost of distributing the products in the rural market through distribution vans can be unviable for a single company. raw materials and a host of products are available. making it easier to sell the product & maximise sales for the company. both in cooperative & private sector. Personal Selling Network: It is very successful distribution channel being developed by companies like HUL. Agricultural Input Dealers: Fertilizers should be made available to the farmers within the range of 4-5 km from their residence. cattle. jewellery. durables. 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. 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. 8. the entire operation can become financially viable for all the players. 9. The supermarket in Varana Nagar caters exclusively to rural consumers.Rural marketing • Availability: It is a market for everyone and for everything. different non-competing companies can come together to jointly operate distribution vans for the rural market. machinery. farming equipment.

Whole seller. Therefore many companies were dependent on whole salers. 1. Retailers There are different kinds of retailers. As a result of retail based distribution was weakened. • Rural markets were neglected by many. and Bazaars & Shadies. The occurrence of retail outlets was low. Vans. 1. There was no need for active sales growth. ✔ Shops within the village ✔ Shops located on the main road and not exactly within the village ✔ Kasba market or the tahsil market. Weekly Haats. The reason for this speculative character and dormant role of wholesalers are:• Indian market was largely sellers market. • Companies laid more emphasis or retailers in urban areas. who are very large in number. Wholesalers The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the belief that business is speculative rather than distributive in character. Retailer. 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.Rural marketing The historically available people & places for distribution include: . . He is a trader / commodity merchant rather than a distributor and therefore tends to support a brand during boom and withdraw support during slump.

Rural marketing Village retailers have traditionally been among the most mobile of rural residents. ➢ The role of urban retailer is weak. (. recommend the brands. I.The urban retailer is not trusted. I. (The urban retailer has a limited role as a brand . ➢ 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.) II. ➢ The urban consumers have numerous sources of information.CREDIBILITY: ➢ He enjoys the confidence of the villagers. – His view points are evaluated with other sources of information. promoter. ➢ Retailers helps in identification and selection of brands. – He is seen as a businessman with profit motto.INFLUENCE LEADER: ➢ His role as influence leader is indisputable. ➢ Presence of spurious brands is an ample testimony to this view. there is less influence of shelf displays and point of purchase promotion. ➢ His views are accepted and followed by the rural people whose awareness and media exposure levels are low. BRAND PROMOTER: ➢ In rural market retailers remains the deciding factor to sell particular brand. He cannot directly.

(on the contrary. backed by historical credibility of the retailer as a product referral. if not more. he has been harbinger of change.) II.) II. as urban consumers do not trust him completely. ➢ He caters to a set of buyers who have income from immovable land resources and would be static over a much longer time span. – It is through shelf displays and incentive offers that he has to push the brands.RELATIONSHIP MARKETER ➢ Village retailer practices relationship marketing. (As against this. the urban retailers have to make an effort to adopt relationship marketing. ➢ He is one of the main sources of information and opinion as well as supplier of product and services. This limits the time span and perspective of the retailer – customer relationship. in less than a decade.HARBINGER OF CHANGE ➢ In an environment relatively isolated from external developments. ➢ The relationship could extend beyond three generations. we find urban retailer. wielding limited influence in changing the product choices and quality of life of consumers.Rural marketing He is to intelligently drive home his recommendations. – His customers base comprises largely the mobile service class prone to shift residence at least once.) 1. Vans .

But they are strikingly similar in what they sell. Weekly Haats. Shandies The haats are the oldest outlets to purchase household goods and for trade. 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. Media Vehicles Through the rural markets offer big attractions to the marketers.Rural marketing Mobile vans long since. These markets have different names in different regions. about 47.000 haats held throughout the country. A typical market is in an open field with ample space for displaying all sorts of goods. Fairs Direct Communication Cinema Wall Paintings Dealers Press Hoardings Sales Persons TV Leaflets Researchers Video Vans Folk Media Animal Parade Transit Media  Formal media . have an important place in distribution and promotion of the products in villages. Its location changes every week. It is reported that there are. in all. 2. These markets are very well organized with shopkeepers having pre-assigned spaces for them to sell their wares. Bazaars.

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

Rural marketing Radio reaches large population in rural areas at a relatively low cost. tree boards. is cost effective in rural areas. Lifebuoy and SPIC fertilizers are shown in rural cinema halls. The advertisement has to be released during this time to get maximum coverage in rural areas. hoarding. product display boards etc. bus boards. Examples: Films on products like Vicks. Generally rural people prefer bright colours and the marketer should Utilize such cues. Another advantage is that the radio commercial can be prepared at short notice to meet the changing needs of the rural folk. Local distributor or dealer who has good contacts with cinema houses in villages can easily monitor this activity. Ad slides can also be screened in village theatres. ➢ Cinema: About 65% of the earnings from cinema are from rural markets. which includes signboards. Example: Colgate. Village theatres do roaring business during festivals by having four shows per day. Apart from films. The farmers have a habit of listening to regional news/agricultural news in the morning and the late evening. The monthly charge for showing an ad film is within Rs. wall painting. Example: Release of a pesticide ad at the time of outbreak of a pest or disease in crops. Zandu Balm. Zuari industries are some of the companies using radio communication programme. Film viewing habits is high in certain states like Tamil Nadu. dealer boards.500. There are specific programmes for farmers like Farm and Home/Krishi Darshan in regional languages. Karnataka and Andhra Pradesh. Jyoti Labs. pictures and colours should be used in POPs meant for rural markets so that they can easily identify the products. Symbols. . ➢ Outdoor advertisements: This form of media.

The matter should be in the form of pictures. Walls of farm houses. Very often the owner takes responsibility for taking care of the wall painting. toothpaste. The walls have to be painted at least one or two feet from ground level. Retailers welcome painting of their shops so that the shop will look better.10. fans. branded coffee/tea. shops and schools are ideal places for painting and the company need not have to pay any rent for the same. fertilizers etc. festoons and product packs in the shops will catch the attention of prospective buyers. ➢ Direct mail advertising: It is a way of passing on information relating to goods or services for sale. 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.Rural marketing ➢ Point of purchase: Display of hangings. . Companies marketing TV. slogans for catching the attention of people. It is a medium employed by the advertiser to bring in a personal touch. use wall painting as promotion medium in rural areas. It is better to take permission of the owner. Painting to be avoided during election time and rainy season. since it stays there for a long time depending upon the weather conditions. However a clutter of such POP materials of competing companies will not have the desired effect and is to be avoided. directly to potential customers through the medium of post. pesticides. The cost of painting one square foot area is just Rs. ➢ Wall paintings: It is an effective and economical medium for communication in rural areas.

➢ Farm-to-Farm/House-to-House visit: Rural people prefer face-to-face communication and farm visits facilitate two-way communication. The advantage is that the sales person can understand the needs and wants of the rural .Rural marketing ➢ 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. 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.  Informal/Rural specific media These media with effective reach and personalized communication will help in realizing the promotional objectives. even the buses move at slow speed through village road. bullock carts and tractors and people walking on the road. These boards attract the attention of slow moving vehicles like cycles. The cost of such a painted board is about Rs. These are low priced promotion items and can be used by consumer goods companies too.80. These boards are fixed to the trees on both sides of the village road at a height of about 10 feet from ground level. Fertilizer and pesticide companies in rural areas extensively use tree boards.

The bankers visit an identified village. agricultural inputs and machinery companies in rural areas. Very often the local dealer also joins the representative in making farm-to-farm visits. Opinion leader is a person who is considered to be knowledgeable . The company is able to pass on the message regarding benefits of the products to a large number of customers through such meetings. Example: This approach has been found to be very effective for agricultural machinery. The person carries with him literature in local language and also samples of products. Group meeting of key customers are conducted by banks. ➢ Group meeting: Group meetings of rural customers as well as prospects are an important part of interpersonal media. Such meetings could be organized in prosperous villages for promoting consumer durables and two wheelers also. ➢ Opinion leaders: Villagers place more emphasis on the experience of others who have used a product/brand to make purchase decision.Rural marketing customer by directly discussing with him and answer his queries on products and services. The person does not sell the product but only promotes the use of the product. animal health products and agricultural inputs. Many LIC agents and companies dealing with high value consumer durables have tried this method with success in rich rural areas. Example: MRF Tyres conduct tractor owners meet in villages to discuss repairs and maintenance of tractors. Potential customers in the village are identified and the company’s/distributor’s representative makes farm-to-farm visits and highlight the benefits of the products. get the village people in a common place and explain the various schemes to the villagers. The dealer clarifies the terms and conditions of sale and also makes independent follow up visits for securing orders.

These are the haats that are being held regularly in all rural areas. b) The mahakumbh at Allahabad is the biggest mela in India. By participating in haats and melas. 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. beliefs and perceptions of rural customers that influence his buying behaviour. the haat can be an ideal platform for advertising and selling of goods. extension workers etc. The reason being that in villages the wages are paid on weekly basis and haat is conducted on the day when the villages get their wages. HLL has put up 14 stalls in the mela grounds for promoting Lifebuoy. both the sellers and buyers meet in the village to buy and sell goods and services. Handcarts have been deployed for increasing access. cattle fairs and religious fairs and may be held only for a day or may extend over a week. ➢ The Haats: Traditionally on certain days of week. ➢ Folk dances: . teachers. the company can not only promote and sell the products but also understand the shared values. Examples: a) Britannia promotes Tiger Brand Biscuits through melas. ➢ The Melas: Melas are of different types i. bank official. panchayath-president. For the marketer. Examples: a) Mahindra Tractors use bankers as opinion leaders for their product. Next day they move to another haat. Many companies have come out with creative ideas for participating in such melas. The sellers arrive in the morning in the haat and remain till late in the evening. Such opinion leaders could be big landlords.Rural marketing and is consulted by others and his advice is normally followed.e. commodity fairs.

In a day the troupe covers about 8-10 villages. film songs are played to attract the attention of the villages. The folk dance “Kuravan Kurathi” is popular in Tamil Nadu. Examples: Fertilizer and pesticide companies organize folk dance programmes during peak season in selected markets. This is followed by folk dances. The troupe consists of dancers.5000 per day and therefore these programmes are conducted during the peak season in selected villages. After the dance programme. if any. the products and the benefits. queries. At the end of the film show. Thumps Up has sponsored Lavnis. Folk dance programme costs about Rs. about the products are answered by the sales person. As soon as the van reaches a village. the folk dance programme of Maharashtra and over 30 programmes have been arranged in selected rural markets. The sales person makes a brief talk about situation in the village. Mike announcement is made about the company’s products and leaflets are distributed.Rural marketing These are well-appreciated form of entertainment available to the village people. The ad film is screened along with some popular film shots and this continues for about 30 minutes. ➢ Audio Visual Publicity Vans (AVP Vans): 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. . drummers and musicians and they move in a well-decorated van from one village to another village singing and dancing.

Rural marketing 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 such as HLL, Colgate, and Phillips have made effective use of AVP vans for popularizing their products in rural areas.

Product display contests:

Package is an integral part of the product. Its main purpose is to protect the product during transit, to preserve the quality and to avoid any loss in quality and quantity. The main purpose of this contest is to remind the customer to buy the product as soon as he enters the shop. Another objective is to influence the dealer to stock the product and support the company in increasing the sales. 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. Prizes for best displays are announced to motivate the dealers; the contest lasts for about a month. 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. This is used for promoting consumer goods such as shampoos, soaps and toothpaste.

Field demonstration:

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. A progressive farmer who is an opinion leader is selected and the demonstration is conducted in his field in the presence of a group of farmers in the

Rural marketing village. 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. Examples: a) Spraying a particular brand of an insecticide against insect pests and showing the farmer how effectively the insects are controlled. b) Demonstrating the use of tractor/implements for different agricultural operations. c) Hawkins pressure cooker has demonstration representatives who carry out demos in rural households. The representative receives 1% commission for every customer who approaches the dealer via demonstrations. e) Similarly effectiveness of detergents, pressure cookers, vaccum cleaners and mosquito coils could be promoted by demonstrations in selected markets.

Field days:

These are extension of field demonstrations. 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. All the fertilizers, pesticides, nutrients etc. are applied after making field observations. Just before harvest, all the important farmers are invited to see demonstration plot and see for themselves how the yields are better in the plot compared to other fields. Field demonstrations/field days consume lot of time and efforts and therefore have to be planned well.

Information centers:

They provide latest information on cultivation of crops, fertilizer application, weed, management and control of pests and diseases. Experienced agricultural graduates who make frequent visits to the field and advice farmers on modern agricultural practices manage the centers. They also provide information on farm implements, seeds, fertilizers, pesticides, diesel engines, sprayers and tractors etc. Many consumer goods companies have

Rural marketing opened show rooms in prosperous rural areas. Example: Hero Honda has opened extension counters with show room facilities in major rural markets.

Life-style marketing:

Each rural market segment has certain special features i.e. they share common life-style traits. They include village sports, religious events, prominent personalities and role models. Examples: Textile mills maintaining community gardens, Mineral water companies supplying clean drinking water during summer festivals in villages and Consumer goods companies sponsoring Kabaddi.

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

After LUX. the product of HUL covers 36%of the market share. LUX. This is . DETTOL. it could easily be concluded that LUX.Rural marketing • Well tiles • Calendars/labels (a)High reach Low frequency • Van based advertising • Melas • Direct to home • Folklore group • Exhibitions/created events (a)Low reach Low frequency • Tin painting – tree/shops • Leaflets • Posters & banners • Streamers • Danglers FINDINGS AND ANALYSIS 1. LIFEBUOY) covers 24%of the market share. the other brands (EXCEPT LUX. Which soap u prefer to use? The reaction of people towards various SOAP brands can be tabulated in the following manner: BRANDS PERCENTA GE LUX 36 DETTOL 18 LIFEBUOY 22 OTHERS 24 In the survey. the product of HUL was highly in demand.

56% consumers demand single pack. . I tried to differentiate amongst people with below average household income. This data can be graphically explained with the help of the following bar graph: 2. Which pack u prefer to use? In order to determine the income pattern of the consumers.44% consumers demand family packs i. the product of RECKITT BENCKISER with a market share of 18%. However. the reaction of people towards various packs of SOAP can be tabulated in the following manner: PACK OF SOAPS PERCENTAGE SINGLE PACK 56 FAMILY PACK ( 3 IN 1) 44 In the survey.Rural marketing then followed by LIFEBUOY. average household income &above household income.e. the product of HUL with a market share of 22%.3 in 1 pack.which is then followed by DETTOL. 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. This classification can be done on the basis of the daily expenditure that people make.

However. the reaction of . the product of TATA has a market share of 32%.Rural marketing This data can be graphically explained with the help of the following bar graph: 3. BROOKE BOND.TAJ MAHAL)with a market share of 22%. This data can be graphically explained with the help of the following bar graph: 4. it could easily be concluded that TATA TEA. the product of HUL which holds18%of the market share. Which tea u prefer to use? The reaction of people towards various TEA brands can be tabulated in the following manner: BRANDS PERCENTA GE TATA TEA 32 BROOKE BOND 28 TAJ MAHAL 18 OTHERS 22 In the survey.BROOKE BOND. Which tea pack u prefer to use? In order to determine the income pattern of the consumers. with a market share of 28%.Followed by other brands (EXCEPT TATA TEA.This is finally followed by TAJ MAHAL. 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.This is followed by.

the rural consumers preferred tooth powders. the reaction of people towards various TOOTH PASTES can be tabulated as follows: BRANDS PERCENTA GE PEPSODENT COLGATE 27 35 CLOSE UP 22 OTHERS 16 .e. This data can be graphically explained with the help of the following diagram: 5. This classification can be done on the basis of the daily expenditure that people make.Rural marketing people towards various TEA packs can be tabulated in the following manner: TEA PACKS PERCENTAGE SACHET 48 MEDIUM PACK 32 LARGE PACKS 20 In the survey. However. I tried to differentiate amongst the people. But from the last decade. 48%consumers demand sachet packs. the preference of consumers towards toothpaste has been changed. datoons etc. it can be concluded that sachets are most commonly used by the people . with below average household income. However. average household income & above household income. A huge number of toothpastes of different companies are sold in rural market. 32%consumers demand medium pack.i. 20%consumers demand large pack. Which tooth paste u prefer to use? In the initial years.

Rural marketing In the survey that the researcher conducted. After that. This is followed by BRU. COLGATE.& NESCAFE.. the product of HUL is demanded by the customers. Which coffee u prefer to use? The reaction of people towards various COFFEE brands can be tabulated in the following manner: BRANDS PERCENTA GE BRU 26 NESTLE 32 NESCAFE 32 OTHERS 10 In the survey.A. it can be easily concluded that all the brands are facing tough competition. which covers 22%of the market share. shares equal market share of 32%each. This data can be graphically explained with the help of the following bar graph: . which covers 27%of the market share. which covers 35%of the total market. Followed by CLOSE – UP. 26%of the market share. the product of HUL which holds. the product of NESTLE S. the product of HUL is demanded by the customers. the product of COLGATE PALMOLIVE is the market leader.This means that they are in a very tough competition. another product of NESTLE S. This data can be graphically explained with the help of the following bar graph: 6. it could easily be seen that COLGATE. PEPSODENT. Which is then followed by others brands (EXCEPT PEPSODENT.A. which covers 16%of the total market share. CLOSE -UP). While the other brands hold only 10%of the market share. NESTLE.

This is followed by. Which cream u prefer to use? The reaction of people towards various CREAM brands can be tabulated in the following manner: BRANDS PERCENTA GE PONDS 28 FAIR LOVELY 32 & AYUR 14 OTHERS 26 In the survey. FAIR &LOVELY &AYUR). the brand of AYUR ACADEMY OF NATURAL BEAUTY (AANB) which holds 14%of the total market share. PONDS. that I conducted. another product of HUL. other brands (EXCEPT. which hair oil u prefer to use? The reaction of people towards various HAIR OIL brands can .This is followed by. This is followed by AYUR. POND ’s. which captures 26%of the market share. the product of HUL. holds the major market with a share of 32%. which holds 28%of the market share. it can easily be concluded that FAIR &LOVELY. This data can be graphically explained with the help of the following bar graph: 8.Rural marketing 7.

And after that. Which biscuits u prefer to use? The reaction of people towards various BISCUITS brands can be tabulated in the following manner: BRANDS PERCENTA GE MARIE GOLD 24 GOOD DAY 21 PARLE G 38 OTHERS 17 . the product of MERICO captures 37%of the total market share. This data can be graphically explained with the help of the following bar graph: 9. followed by other brands (EXCEPT PARACHUTE. This is followed by DABUR VATIKA. DABUR VATIKA) captures 15% of the market share. it can easily be concluded that PARACHUTE. DABUR AMLA.Rural marketing be tabulated in the following manner: BRANDS PERCENTA GE PARACHUT E 37 DABUR AMLA 29 DABUR VATIKA 19 OTHERS 15 In the survey. the product of DABUR which captures 29%of the total market share. This is followed by DABUR AMLA. another product of DABUR which captures 19%of the market.

Rural marketing In the survey. This data can be graphically explained with the help of the following bar graph: . the product of PARLE . GOOD DAY. it can easily be concluded that PARLE-G.This is followed by MARIE GOLD. holds a major market share of 38%. GOOD DAY.This is finally followed by other brands (EXCEPT SURF. This data can be graphically explained with the help of the following bar graph: 10.This is followed by TIDE. it could be easily concluded that RIN. the product of HUL which has a market share of 27%. holds 21%of the market share. This is followed by SURF. a product of BRITANNIA which holds 24%of the market share. This is followed by other brands (EXCEPT MARIE GOLD. After that.RIN. the product of HUL captures 35%of the total market share.Which detergent u prefer to use? The reaction of people towards various DETERGENT brands can be tabulated in the following manner: BRANDS PERCENTA GE SURF 27 RIN 35 TIDE 22 OTHERS 16 In the survey. the product of PROCTER & GAMBLE which has a market share of 27%.TIDE)which captures 16%of the market share. PARLE-G) which hold a market share of 17%. another product of BRITANNIA.

Which pack u prefer to use? In order to determine the income pattern of the consumers. HEAD & SHOULDERS) with a market share of 14%. the product of PROCTER &GAMBLE which holds 28%of the market share. captures the major portion of the market with a market share of 33%. SUNSILK.Rural marketing 11.This is followed by HEAD & SHOULDERS. the product of HUL which holds 25%of the market share. it can easily be concluded that CLINIC PLUS. This data can be graphically explained with the help of the following bar graph: 12. Finally followed by other brands (EXCEPT CLINIC PLUS. it was necessary for the researcher to distribute the .Which shampoo u prefer to use? The reaction of people towards various SHAMPOO brands can be tabulated in the following manner: BRANDS CLINIC PLUS 33 SUNSILK HEAD & OTHERS SHOULDER S 28 14 PERCENTA GE 25 In the survey. the product of HUL. This is followed by SUNSILK.

the reaction of people towards various SHAMPOO packs can be tabulated in the following manner: SHAMPOO PACKS PERCENTA GE SACHET 23 SMALL PACK 32 MEDIUM PACK 28 FAMILY PACK 17 In the survey.17% consumers demand large packs. 28% consumers demand medium pack. However. 32%consumers demand SMALL PACK. This data can be graphically explained with the help of the following bar graph: 13. However.Which Television you prefer to use ? The reaction of people towards various television brands can be tabulated in the following manner: BRANDS PERCENTA GE ONIDA 40 BELTEK 23 CROWN 33 OTHERS 4 . This classification can be done on the basis of the daily expenditure that people make. with below average household income.Rural marketing consumers on the basis of their demand for the various packs of SHAMPOO brands available in the market. average household income & above household income. I tried to differentiate amongst the people.

it can easily be concluded that the BICYCLE of ATLAS. This is followed by AVON . captures the major portion of the market with a market share of 37%. hero and avon ) with a market share of 8%. which holds 22%of the market share. LG.Which bicycle you prefer to use? The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS PERCENTA GE ATLAS 37 HERO 33 AVON 22 OTHERS 08 In the survey. This is followed by BELTEK . Finally followed by other brands ( SAMSUNG. which holds 33%of the market share. which holds 23%of the market share. This data can be graphically explained with the help of the following bar graph: . it can easily be concluded that TELEVISION of ONIDA.This is followed by CROWN. SONY etc) with a market share of 4%.Rural marketing In the survey. captures the major portion of the market with a market share of 40%.This is followed by HERO. This data can be graphically explained with the help of the following bar graph: 14. which holds 33%of the market share. Finally followed by other brands (EXCEPT atlas.

Finally followed by other brands (LG. which holds 28%of the market share.Rural marketing 15. This is followed by VIDEOCON . This data can be graphically explained with the help of the following bar graph: 16.Which refrigerator you prefer to use? The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS PERCENTA GE GODREJ 38 VIDEOCON 20 KELVINATO R 28 OTHERS 14 In the survey. SAMSUNG etc ) with a market share of 14%.This is followed by KELVINATOR.Which wrist watch you prefer to use? . which holds 20%of the market share. it can easily be concluded that the REFRIGERATOR of GODREJ. captures the major portion of the market with a market share of 38%.

captures the major portion of the market with a market share of 32%.Rural marketing The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS PERCENTA GE HMT 26 MAXIMA 14 TITAN 40 OTHERS 20 In the survey. Finally followed by other brands (EXCEPT HMT. MAXIMA AND TITAN ) with a market share of 8%. This is followed by KHAITAN . This is followed by MAXIMA .This is followed by HMT. captures the major portion of the market with a market share of 40%. it can easily be concluded that the FANS of LOCAL COMPANIES. Which In the survey. which .This is followed by POLAR. it can easily be concluded that the WRIST WATCH of TITAN. which holds 26%of the market share. which holds 28%of the market share. This data can be graphically explained with the help of the following bar graph: fan you prefer to use? The reaction of people towards various bicycle brands can be tabulated in the following manner: BRANDS PERCENTA GE LOCAL FANS 32 POLAR 28 KHAITAN 22 CROMPTON FANS 18 17. which holds 14%of the market share.

They should adapt rigorous marketing strategies. then it will definitely take some time to capture the market. the organizations should try to gain competitive advantage against their competitor’s.Rural marketing holds 22%of the market share. They should try to reach as many people as possible. because in the introduction stage. so that the organizations can easily sell their products to their consumers: 1. the demand of a product is also affected by its life cycle. Therefore. However. 2. it is the responsibility of the organization to create awareness amongst the consumers. 4. Therefore. There is immense competition in this sector. . This data can be graphically explained with the help of the following bar graph: Suggestions &recommendations The researcher would like to suggest the following points. 3. If the product is in the introduction stage. in order to sustain in the market. consumers are not much aware about the product. Finally followed by CROMPTON with a market share of 18%.

Application of 4A’s has also become an important task for all the organizations. as their marketing strategies. Affordability. In urban India. for the organizations that are not much popular amongst the consumers should adopt Sales Promotion. Packaged consumer products: More than Rs. 6. According to the NCAER projections. Awareness) APPENDIX 1. the same is expected to grow from 46 million to 59 million.Rural marketing 5. 2000 crores Market for Non-food items: Rs. Some Facts about the rural market 70 % of India’s population lives in 627000 villages in rural areas.a. 90 % of the rural population is concentrated in villages with a population of less than 2000. the number of middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2007.5% p. (*4A=Availability. . Acceptability. 20000 crores growing at 2.

Their research indicated that a prevailing consumer habit in rural India was to use soap for hair and body care.000 tonnes. Companies thought that women would be attracted to this product because it was cost-effective. however. While rural women may wear faded saris and little jewelry. several years back. What companies failed to recognize is that most rural consumers had previously never used shampoo and did not value or understand the full benefits of conditioner. growing at 12%p. However. Hindustan Lever focused on product development strategies for rural consumers who still did not use shampoo in India. few step out without ensuring that their hair is in place. Share of Rural market in overall consumption Toiletries Safety Razor Blades Premium Soaps Tooth Paste Hair Oil OTC products Medicated dress Cold Analgesic Antiseptic Creams 48% 24% 20% 20% 25% 42% 28% 2. Consumer goods companies introduced a transplanted product from developed markets. initial sales were dismal. Rather than try to change instilled consumer .Rural marketing Consumption of pesticides: 68.a. the 2-in-1 shampoo/conditioner.) 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.

➢ Buffaloes displayed at the haats for sale are dyed an immaculate black with Godrej hair dye. ➢ Horlicks is used as a health beverage to fatten up cattle in Bihar. and is targeted towards consumers in rural areas.wells. a product that cleans the hair and body. washing machines are being used to make frothy lassi in bulk. For the first in the history of advertising . And the red-faced marketers admit that they actually sell their products in areas they would otherwise find difficult. In many a case. simply because there are other uses for them.) Communication Adaptation: Both. product developers focused on creating an opportunity.one requires water. washing and for taking bath . the walls of the wells were lined with advertising tiles and tinplates were put on all the trees . 3.Rural marketing behavior. ➢ Iodex is rubbed into the skins of animals after a hard day's work to relieve muscular pain. Indian rural market is still a puzzle to marketers. Now for rural markets there are three sources of water . Consumers wanted a product that was convenient and low-cost. Special stickers were put on the handpumps. For instance.these were branded. SOME STRANGE FACTS Amazing innovator With a queer psychology of purchase and usage. it stretches its imagination to find surprisingly different uses of some of the products. The result was a new 2-in-1 soap. ➢ In villages of Punjab. handpumps and ponds.

Rural marketing surrounding the ponds.25.000 • address: 1. Now.000 d) d. More than 50. Which soap u prefer to use? a) Lux b) Lifebuoy c) Dettol d) Others 1. It was right there when the consumer wants it and responds to his needs when wanted.000 c) c.000 b) b. So the customer could also see the advertising when he was bathing or washing.10. 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. Less than 10.000 –50. 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. Which pack u prefer to use? a) Medium pack b) Family pack .000 –25. Questionnaire • name: • occupation: • monthly salary: a) a.

Which cream u prefer to use? a) Ponds b) Fair and lovely c) Ayur d) Others 1. Which coffee u prefer to use? a) Nestle b) Nescafe c) Bru d) Others 1. Which tooth paste u prefer to use? a) Colgate b) Close up c) Pepsodent d) Others 1. Which tea u prefer to use? a) Taj mahal b) Tata tea c) Brooke bond d) Others 1.Rural marketing 1. Which tea pack u prefer to use? a) Sachet b) Small pack c) Medium pack 1. which hair oil u prefer to use? a) Parachute b) Dabur amla c) Dabur vatika .

Which detergent u prefer to use? a) Surf b) Rin c) Tide d) Others 1. Which pack u prefer to use? a) Sachet b) Small pack c) Medium pack 1. Which biscuits u prefer to use? a) Good day b) Marie gold c) Parle G d) Others 1. Which Television you prefer to use ? a) Onida b) Beltek c) Crown d) others 1.Rural marketing d) Others 1. Which shampoo u prefer to use? a) Sunsilk b) Head and shoulders c) Clinic plus d) Others 1. Which bicycle you prefer to use? .

Which fan you prefer to use? a) Local fans b) Khaitan c) Polar d) Crompton .Rural marketing a) Avon b) Atlas c) Hero d) Others 1. Which refrigerator you prefer to use? a) Videocon b) Kelvinator c) Godrej d) Others 1. Which wrist watch you prefer to use? a) Titan b) Hmt c) Maxima d) Others 1.

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