Paying Intermed, 30% Food, 40% Social Liabilities, 15% Health, 15%Average Income: $ 50 per month
Rural markets, as part of any economy, have untapped potential. There are several difficulties confronting the effort to fully explore rural markets. The concept of rural markets in India, as also in several other countries, like China, is still in evolving shape, and the sector poses a variety of challenges, including understanding the dynamics of the rural markets and strategies to supply and satisfy the rural consumers.
Under developed people and underdeveloped market . Lack of physical communication facilities . Media for rural communication. Many language and dialects. Prevalence of spurious brands and seasonal demad. Different way of thinking . Banking and credit problems
The rural consumer is savvy and demands real“value for money”
First and the foremost challenge Indias 6,38,365 villages are spread over 3.2 mn.sq.kms. 720 mn people-reaching them is not easy Given the poor state of roads ,it is an even greater challenge.
With low disposable incomes, products need to be affordable to rural consumers ,most of them are on daily wages. Some companies have addressed the affordability problem by introducing small unit packs :GODREJ Introduced Cinthol and Fairglow in 50 gram packs priced at rs.4 coca-cola introduced Sunfill ( a powdered soft drink concentrate ) 25 gram pack priced at rs.2
Next challenge is to gain acceptability for theproduct or service. Therefore there is a need to offer products that suit the rural markets and conditions.coca-cola is providing low cost ice-boxesbecause of the lack of electricity and refrigeratorsin the rural areas.
With large parts of rural India inaccessible to conventional advertising media, building awareness is another challenge.
The company’s e-chaupal initiative is a novel idea which bypasses the brokers between the Company and the farmers.
It is helping Indian agriculture to enhance its competitiveness by empowering Indian farmers through the power of internet . This unique transformational strategy has become the subject matter of a case study at Harvard b school ,has created for I.T.C a huge rural distribution infrastructure , significantly enhancing the company’s marketing reach