The document discusses rural marketing in India. It notes that rural areas make up a large portion of India's population and market, and outlines some of the key characteristics of rural consumers including traditional outlooks, rising literacy, and diverse socioeconomic backgrounds. It also discusses challenges of rural marketing like lack of infrastructure and the benefits for companies in tapping this attractive market segment. Specific initiatives by companies like HUL to better reach rural customers through micro-enterprise programs and last-mile distribution networks are also examined.

1. “The heart of India lies in the villages……..”

2. -2
Kanak Binayakiya
Gautam Chopra
Saurabh Chopra
Abhay Chawla
Chaman Tanwar

3. What are Rural Areas?
In general, a Rural area is a geographic area that is located
outside towns and cities.
As per Census: Any habitation with a population density of
less than 400 per Sq. Km, is known as Rural.

4. Rural Marketing
Rural marketing is a process of developing, pricing, promoting,
and distributing rural specific goods and services leading to
desired exchange with rural customers to satisfy their needs
and wants, and also to achieve organizational objectives.

5. Nature Of Rural Market
Traditional Outlook
 Rising literacy level.
Diverse socio-economic background
Infrastructural facilities

6. Attractiveness of rural market
Rural markets have become the new targets to corporate
enterprises for two reasons :
1. Urban market has become congested with too many
competitors.
2. The market have reached a near saturation point.

7. Benefits of rural marketing
 Size of rural market
Employment
Better living
 Contribution to national income
 Increase in farm income

8. Problem and difficulties faced in
rural marketing
Lack of proper communication.
Distribution problem.
Low literacy level.
Lack of adequate transport facilities.
Lack of proper retail outlets

9. Various factors which have made rural markets
viable
1.Large population
2. Remoteness is no longer a problem
3. Growth in consumption
4. Life-style changes
5. Market growth rates higher than urban
6. Rural marketing is not expensive

10. 4 A Model

11. Affordability
Availability
Awareness
Acceptability
Price
Place
Promotion
Product
4 A’s 4 P’s

12. Affordability
 Challenge is to ensure affordability of the product or service.
 Rural people have low disposable income.
 Products need to be affordable to consumer who are daily
wagers.
 E.g. Coca-Cola introduced 200 ml bottle at Rs.5

13. Affordability

14. Greatest problem is to reach to customer or retailer.
Challenge to reach far flung villages.
Products reaches the customers late.
Reaching the market should be considered.
Availability

15. Awareness
 The main way of reaching the customer is through the
commercial on media like television ,radio and outdoor.
 Lack of media source in rural areas
 Coca-Cola uses a combination of T.V., cinema and radio to
reach 53.6 percent of rural households.
 It doubled its spend on advertising on Doordarshan, which
alone reached 41% of rural Households

16. Awareness

17. Acceptability
 The customer should feel that the product is designed as
per their needs.
 The customer should feel the product familiar and there
should not be any hesitation to go for it.
 E.g. :- LG Electronics. In 1998, it developed a customized
TV for the rural market and named it Sampoorna, which
was a great success due to sale of 1,00,000 sets in the
very first year.

18. Acceptability

19. Difference Between Rural And Urban
Marketing
Basis Of Difference Urban Rural
Product Large packaging, more
emphasis on quality
Small packaging, More
emphasis on core benefit
Place Direct and Indirect
Distribution Channel
Indirect Distribution
channel
Price High Price Product Low Price Product
Promotion More emphasis on media Emphasis on organizing
events, Opinion Leader

20. Initiatives taken for rural marketing[HUL]

21. Introduction
 An ambitious venture by HLL to spur growth and penetration
of its products in rural India while changing lives and boosting
incomes.
Sales and Distribution initiative – delivers growth
Communication initiative – build brand
Micro-enterprise initiative – creates livelihoods
Social initiative – improve standard of living in rural
India

22. Objectives
 Business objective:
 To extend HLL's reach into untapped markets
and to develop its brands through local
influencers.
 To reach 100 million consumers by 2006
 Social objective:
 To provide sustainable livelihood opportunities for underprivileged rural
women.
 To scale up the number of Shakti entrepreneurs from 12000 (2004) to 25000
(2006)

24. Project Shakti :
Consumer Marketing Channel
HLL
(Manufacturer)
SHG
Retailers
Consumers
Shakti
Entrepreneur
s
• Integrated Multichannel
System

25. References
 https://www.scribd.com/doc/2462654/4-A-s-of-rural-market
 http://managementstudiesentries.blogspot.com/2008/12/4-ps-and-4-as-of-rural-
marketing.html
 http://www.saching.com/Articles/4A-s-of-Rural-Marketing-501.html
 http://www.authorstream.com/Presentation/khannadeemco-1601003-rural-
marketing-ppt/
 http://www.hul.co.in/sustainable-living/casestudies/Casecategory/Project-
Shakti.aspx
 http://www.managementexchange.com/story/doing-well-doing-good-changing-
lives-rural-india