Prepared by Rupesh Kumar Gupta Programme Coordinator (Management Deptt)

Rural

marketing can be define as a function that manages all activities involved in assessing, stimulating and converting the purchasing power of rural consumers into an effective demand for specific products and services and moving these products and services to the people in rural areas to create satisfaction and a better standard of living and thereby achieving organizational goals.

 Because rural India offers to greatest hub to Indian

markets seeking growth for their production services with 73 % of Indian population and 12% of world population living in villages of india.

In India--

28 states

600000 villages 4 major religions 1650 ethnic group 15 major languages 1350 dialects

 Proliferation(rapidly change) of brands in

urban High saturation levels in urban Greater awareness of brands in rural Ever-growing aspirations in rural No effects of slow down on rural markets ! Greater opportunities for business Large customer area ( 73 % customers live in rural area in India) Low competition

FMCG Rs.65000 crore Agri-inputs Rs.45000 crore Durables (long life goods) Rs.5000 crore Automobiles (2 & 4 Wheelers) Rs.8000 crore Clothes, footwear etc. Rs.35000 crore Construction material Rs.15000 crore Total Rs.173000 crore Source: CII Report (2008)

 Very intelligent and clever cannot be easily

cheat.

Daily activity is routinised

Plenty of time / No Sundays

Very conscious of value for money Does not like to pay extra for frills he cannot

use.
Eg. Colour TV

High involvement in any product purchased

Eg. Durables (LIC)

 Perceptions, traditions, values vary from state to

state and in some cases from region to region within a state.(MRF Bullock Cart Tyres) Divisions based on caste, community and other hierarchical factors continue to exist.

 Keep the communication simple No scope for gimmicks( tricks) Take time in communicating the message

Quickies have no impact.

Think in the local language to capture the local

spirit in the communication aimed at specific region. Demonstration a key element for success

 provided your communication is not gimmicky,

suggestive and is easy to comprehend.

Target the opinion leaders first.( Educated village

youth as opinion leaders)

Hence

need for different communication packages focused on rural audience

 Build Recognition Rural folks understands colours better.

symbols

and

Pahelwan Chap MRF Haathi Beedi Laal Sabun Lifebuoy Peela Powder Nirma White paste- Colgate This also leads to duplicates and fake products Largely sold in the Haats (weekly markets) in Rural India Rs.12000 crore p.a. is the estimated loss to FMCG sector

 Untapped potential: it offers a great chance for different branded goods as well as services for large number of customers. It is estimated by HLL that out of 5 lakh villages in India , only lakh has been taped so far , which goes on to indicate the market potentials of the rural market . Market size and potential :The size of India s rural market is stated as 12.2 % of the percentage of the old population this means 12.2% of the worlds consumers leave in rural India. In India, rural household farm about 73 % of total household constitutes a huge market by any standard.

 Increasing

:Different programs undertaken have helped to improve the economic the economic situation of the rural areas. The increase in income is seen in both absolute values as well as in the increase in average number of days of occupation in a year. is getting saturated and thus is enable to provide the much needed market to many companies and in search of greener pastures many of these companies are now targeting the rural market.

income

Competition in urban areas :The urban market

 Accessibility markets :Though the road network has not developed to the best possible extent but a fire amount of development has been made in many regions, making these regions accessible from the urban region and making in easier for supplying products to these regions To create brand image

 Distribution and logistics: Infrastructure

continues to be a challenge in rural India. Moreover, the lack of an efficient distribution network prevents penetration of products/services into rural India. One of the most innovative models in recent times has been the usage of the postal service by mobile operators to penetrate scrat Payment collection: The majority of the rural population is still unbanked. Clearly, non-cash collection becomes rather unlikely. Cash collections, on the other hand, are messy and difficult to monitor, especially since cash cards or technology-enabled centralized POS (like Suvidha or Itz World) have still not reached rural areas. ch cards to the villages

 Pricing: In rural areas peoples dont purchase high price goods Social and cultural challenges: The cyber caf (or kiosk) model has not worked in many parts of rural India due to socio-cultural issues. Education level in rural areas

 Consumer behaviour Income level of consumer Standard of living Education of consumer Cultural environment Taste and preference of consumer Consumption criteria of consumer

Purchasing pattern of consumer( cash or borrow)

etc..

 They understand the regional ethos better They satisfy a perceived local need Their communication touches a chord which

helps in brand acceptance They are flexible

Adapt to changing market situations

Eg. Anchor, Gadi, Ajanta, Cavinkare (Chik), Power,

Goldwinner, Swagat baniyans If you are small with limited budgets start by concentrating on smaller areas
Outdoor / local Cable TV / Radio / participate in

local festivals etc.

 Even Nirma started very small

Today it is a Rs.2000 plus crore company!

Marketers will have to understand the rural customers before they can make inroads in to rural makers. Indian rural market is undoubtedly complex but there are some simple truths that we need to accept. The rural consumers are very value-conscious. They may or may not have purchasing power, but they can make a difference to the company's growth if concentrated. So, it is apt to say that The heart of India still lies in the villages..