This document discusses rural marketing strategies in India. It notes that rural markets offer large potential due to their size and growing incomes. However, rural consumers have different behaviors and needs than urban consumers due to factors like lower literacy, occupation in agriculture, and lack of infrastructure. Successful rural marketing requires understanding these differences and segmenting the rural market. Strategies discussed include developing small, affordable product packages; sturdy products that can withstand infrastructure issues; and promoting brands through local leaders.
742 million Indians constituting 138 million households reside in 6, 38,365 villages (Census, 2001). the size of rural market itself speaks of its potential.The current marketing environment and economic scenario have brought the corporate under contemporary roofs of modern India, which is challenging the current standards of segmenting, targeting and reaching the customers. Realistically, India as a nation has come a long way from the place where only urban population which constitutes 20 per cent of customer base for companies are responsible for 80 per cent of their profits. Also rural markets have acquired significance, as the overall growth of economy has resulted into substantial increase in the purchasing power of the rural communities. A survey by India's premier economic research entity, National Council for Applied Economic Research (NCAER) indicates that rise in rural incomes is keeping pace with the rise in urban incomes.
This document provides an overview of rural marketing in India. It discusses the evolution of rural marketing, characteristics of rural markets and consumers, potential and challenges. Some key points:
1) Rural marketing has evolved from agricultural marketing to include marketing of consumer goods and services to rural areas.
2) Rural markets are large but scattered, with low literacy and income levels compared to urban areas.
3) The rural consumer market potential is large due to population size, rising incomes, and government initiatives. However, challenges include low purchasing power and infrastructure issues.
4) Strategies to succeed in rural markets include understanding rural needs, distribution through local channels, and communication in local languages. Some companies that have achieved success
The document summarizes a rural marketing study conducted in the village of Daruthenga, India. It describes the village's population, infrastructure, and retail landscape. Several large FMCG companies have a presence in Daruthenga, selling products through kirana shops and distribution channels connected to urban markets. The document also discusses characteristics of rural consumers, including brand loyalty and the influence of local reference groups on purchase decisions.
Rural mktg mod 3 rural marketing of consumer durables (milon & govind)Nishanth Harapanahalli
The document discusses marketing consumer durables and FMCGs in rural Indian markets. It outlines key distribution channels in rural areas like cooperative societies, public distribution systems, agricultural input dealers, and NGOs. Some related issues for marketing in rural markets include intensified competition, counterfeited goods, consumer awareness, supply chain constraints, and lack of infrastructure. The document suggests effective ways to market in rural India include acquiring Indian brands, utilizing effective media communication, and adopting localized distribution methods.
Indian rural market (potentital or paradox)Gaurav Rawal
Rural India has seen significant growth in connectivity and access to services like cellular networks, satellite TV, internet kiosks, radio, and community radio channels, allowing more effective communication. The rural population also has substantial purchasing power, estimated at over 1 trillion rupees annually. Many companies have launched products, campaigns, and initiatives targeted at rural consumers, focusing on affordability and local needs. These include low-cost smartphones, TVs, appliances, and financial products. Experts say that future growth lies in properly recognizing rural populations as valuable customer markets.
Despite the diverse heterogeneous nature of rural markets. why are marketers ...Daksha Yadav
This document discusses rural marketing in India. It provides definitions of rural areas according to the Indian census and notes that approximately 75% of India's population lives in rural villages. Rural marketing is defined as managing activities to assess, stimulate and convert rural consumers' purchasing power. The rural market is heterogeneous with many ethnic groups and languages. Marketers are focusing more on rural areas because the population and economy are growing, urban markets are saturated, and connectivity between rural and urban areas is improving. The document also presents a case study of Coca-Cola's successful rural marketing strategy in India, which is based on affordability, acceptability, and availability of products for rural consumers.
Rural marketing features & potentialsShefeerShima
This document discusses rural marketing in India. It defines rural marketing and notes that villages make a high contribution to national income mainly through agriculture and related occupations. It outlines several key features of rural Indian markets including traditional customer attitudes, cultural diversity, low incomes, vast scattered markets, seasonal demand, and traditional lifestyles. Infrastructure is also noted to be less developed. Potentials for rural marketing include a growing population, rising literacy and prosperity, changing lifestyles and consumption patterns, and increasing demand for branded products. Overall the document provides an overview of characteristics and opportunities in India's large rural marketing sector.
Role of Corporate Social Responsibility in Rural IndiaRHIMRJ Journal
More than 60% of India's population lives in rural areas and depends on agriculture for employment and livelihood. Rural development faces issues related to infrastructure, healthcare, education, and socioeconomic conditions. Corporate social responsibility can play an important role in rural development by investing in infrastructure, public services, communication networks, agriculture, healthcare, education, and skill development. This will help generate employment opportunities and improve living standards in rural India.
742 million Indians constituting 138 million households reside in 6, 38,365 villages (Census, 2001). the size of rural market itself speaks of its potential.The current marketing environment and economic scenario have brought the corporate under contemporary roofs of modern India, which is challenging the current standards of segmenting, targeting and reaching the customers. Realistically, India as a nation has come a long way from the place where only urban population which constitutes 20 per cent of customer base for companies are responsible for 80 per cent of their profits. Also rural markets have acquired significance, as the overall growth of economy has resulted into substantial increase in the purchasing power of the rural communities. A survey by India's premier economic research entity, National Council for Applied Economic Research (NCAER) indicates that rise in rural incomes is keeping pace with the rise in urban incomes.
This document provides an overview of rural marketing in India. It discusses the evolution of rural marketing, characteristics of rural markets and consumers, potential and challenges. Some key points:
1) Rural marketing has evolved from agricultural marketing to include marketing of consumer goods and services to rural areas.
2) Rural markets are large but scattered, with low literacy and income levels compared to urban areas.
3) The rural consumer market potential is large due to population size, rising incomes, and government initiatives. However, challenges include low purchasing power and infrastructure issues.
4) Strategies to succeed in rural markets include understanding rural needs, distribution through local channels, and communication in local languages. Some companies that have achieved success
The document summarizes a rural marketing study conducted in the village of Daruthenga, India. It describes the village's population, infrastructure, and retail landscape. Several large FMCG companies have a presence in Daruthenga, selling products through kirana shops and distribution channels connected to urban markets. The document also discusses characteristics of rural consumers, including brand loyalty and the influence of local reference groups on purchase decisions.
Rural mktg mod 3 rural marketing of consumer durables (milon & govind)Nishanth Harapanahalli
The document discusses marketing consumer durables and FMCGs in rural Indian markets. It outlines key distribution channels in rural areas like cooperative societies, public distribution systems, agricultural input dealers, and NGOs. Some related issues for marketing in rural markets include intensified competition, counterfeited goods, consumer awareness, supply chain constraints, and lack of infrastructure. The document suggests effective ways to market in rural India include acquiring Indian brands, utilizing effective media communication, and adopting localized distribution methods.
Indian rural market (potentital or paradox)Gaurav Rawal
Rural India has seen significant growth in connectivity and access to services like cellular networks, satellite TV, internet kiosks, radio, and community radio channels, allowing more effective communication. The rural population also has substantial purchasing power, estimated at over 1 trillion rupees annually. Many companies have launched products, campaigns, and initiatives targeted at rural consumers, focusing on affordability and local needs. These include low-cost smartphones, TVs, appliances, and financial products. Experts say that future growth lies in properly recognizing rural populations as valuable customer markets.
Despite the diverse heterogeneous nature of rural markets. why are marketers ...Daksha Yadav
This document discusses rural marketing in India. It provides definitions of rural areas according to the Indian census and notes that approximately 75% of India's population lives in rural villages. Rural marketing is defined as managing activities to assess, stimulate and convert rural consumers' purchasing power. The rural market is heterogeneous with many ethnic groups and languages. Marketers are focusing more on rural areas because the population and economy are growing, urban markets are saturated, and connectivity between rural and urban areas is improving. The document also presents a case study of Coca-Cola's successful rural marketing strategy in India, which is based on affordability, acceptability, and availability of products for rural consumers.
Rural marketing features & potentialsShefeerShima
This document discusses rural marketing in India. It defines rural marketing and notes that villages make a high contribution to national income mainly through agriculture and related occupations. It outlines several key features of rural Indian markets including traditional customer attitudes, cultural diversity, low incomes, vast scattered markets, seasonal demand, and traditional lifestyles. Infrastructure is also noted to be less developed. Potentials for rural marketing include a growing population, rising literacy and prosperity, changing lifestyles and consumption patterns, and increasing demand for branded products. Overall the document provides an overview of characteristics and opportunities in India's large rural marketing sector.
Role of Corporate Social Responsibility in Rural IndiaRHIMRJ Journal
More than 60% of India's population lives in rural areas and depends on agriculture for employment and livelihood. Rural development faces issues related to infrastructure, healthcare, education, and socioeconomic conditions. Corporate social responsibility can play an important role in rural development by investing in infrastructure, public services, communication networks, agriculture, healthcare, education, and skill development. This will help generate employment opportunities and improve living standards in rural India.
Rural areas of India are home to 75% of India's population of over 1.2 billion people, spread across more than 638,000 villages. While rural incomes and standards of living have been improving, poverty remains widespread and infrastructure like electricity, sanitation, and healthcare are lacking in many rural areas. The rural market contributes over half of India's total consumption and is divided into groups based on income levels, with many rural households still classified as "destitute" living on less than 16,000 rupees annually. Various government programs aim to reduce rural poverty and stimulate development.
Rural marketing involves developing, pricing, promoting, and distributing goods and services to rural customers to meet their needs and exchange value, while also achieving organizational objectives. It is a two-way process between urban and rural areas, with FMCG goods, fertilizers, and vehicles going from urban to rural areas, and agricultural products like fruits, vegetables, flowers, and milk going the other way. Rural marketing has evolved over four phases from independence to the present day. The rural market can be segmented based on population size, location, sociological characteristics, and income. Some challenges include fake products, urban bias, lack of competence, distribution issues, and understanding rural consumers. Strategies include small pack sizes, low prices, branding,
This document summarizes key aspects of the rural marketing environment in India based on Chapter 2 of the textbook "Rural Marketing, 2e". It describes the evolution of rural marketing through four phases from an unorganized market to initiatives focused on rural development. It then analyzes the rural demographic, physical, social, cultural, political, and technological environment. Finally, it examines the rural economic structure including the farm and non-farm sectors, rural enterprises, migration trends, income and expenditure patterns, and changing consumption patterns in rural India.
Rural Marketing is a very interesting Concept, because rural Marketing is different as compare to developed cities.there are different Challenges in rural market like, Less population, Roads Connectivity, Internet Connection, Internet Speed, Infrastructure, Purchasing power and so on...
There are number of challenges and some big companies come with different ideas for the development of villages and for their own Branding.
Rural markets in India offer significant opportunities but also have unique challenges compared to urban markets. Rural consumers have lower incomes and literacy, more seasonal demand, and lack access to infrastructure and information. To effectively market in rural areas, companies must segment consumers, develop appropriate products, pricing, and distribution suited to the local context. While rural marketing was initially focused on agriculture, it now encompasses a wide range of consumer goods and services. Initiatives like ITC's e-Choupal have helped connect farmers in remote villages to information.
This document discusses rural marketing in India. It defines rural marketing as developing, pricing, promoting, and distributing rural-specific products and services to satisfy consumer needs in rural areas while achieving business objectives. It notes that over 70% of Indians live in rural areas, making the rural market very large. It provides examples of companies that have tailored products and services for rural consumers, such as affordable soaps, refrigerators, and mobile apps that provide farming information.
Shades of business in urban and rural areasAVI DHALL
Business environment is different at different places.
With this presentation you'll come to know differences between urban and rural business environments.
This document discusses rural marketing of fast-moving consumer goods (FMCG) in India. It notes that the Indian FMCG industry is the fourth largest in India and is estimated to grow to $74 billion by 2018. It faces several challenges in rural areas, including poor transportation infrastructure, lack of warehousing, high packaging costs, low literacy rates, and seasonal demand. However, some companies have found success through products tailored to rural needs, such as low-voltage TVs and hand-cranked radios. Overall, rural marketing in India offers growth opportunities for FMCG companies but requires an understanding of rural consumers' characteristics and challenges.
Rural India represents a significant market opportunity for FMCG and durable goods companies due to its large population and growing incomes. Many FMCG companies have launched small pack sizes and used innovative marketing strategies like village fairs to reach rural consumers. While rural markets offer potential for growth, they also present challenges like low literacy, lack of infrastructure, and cultural diversity that require customized marketing approaches. Government policies aim to promote growth in the FMCG sector by reducing duties and regulations.
The document discusses rural marketing in India. It defines rural as areas with populations under 5,000 and where 75% of males work in agriculture. Rural marketing involves all aspects of bringing a farm commodity to market. Key features of rural markets include their large, scattered size; diverse socioeconomics; agriculture-based income; and traditional outlook. The document outlines strategies for rural marketing, including addressing availability, affordability, acceptability, and awareness. It also discusses the rural consumer profile and strategies to motivate rural consumers.
This document provides an introduction to rural marketing. It discusses why studying rural marketing is important given agriculture's declining share of GDP but continued importance in rural areas. It covers definitions of rural areas, phases of rural marketing development, the scope of rural marketing including different perspectives. It also summarizes key changes in rural India like population trends, employment patterns, income trends and settlement patterns. It discusses different schools of thought in rural marketing and strategic issues like the role of technology and partnerships. The overall document provides a high-level overview of concepts and trends in rural marketing.
This document provides an overview of rural marketing in India. It discusses the evolution of rural marketing from the 1960s to present day, characteristics of rural markets, importance and scope of rural marketing, differences between rural and urban consumers, factors influencing rural consumer behavior, and rural consumer tastes compared to urban tastes. Key points include that 75% of India's population lives in rural areas, rural markets have high growth potential, environmental, personal, psychological, cultural and social factors all influence rural consumer behavior, and rural consumers prefer bold colors and entertainment like folk performances compared to urban preferences.
This document discusses rural marketing in India. It begins by defining rural areas according to different government agencies and organizations. It then discusses what constitutes rural marketing and some of the key reasons for companies to target rural markets, such as large untapped market size and rising incomes. It provides examples of companies that have found success in rural India. The document outlines characteristics of rural markets, including diversity across villages, and challenges such as low awareness, infrastructure issues and geographic spread. It also discusses encouraging indicators for rural market growth and profiles the rural consumer. Finally, it covers aspects of developing a rural marketing strategy, including segmentation, targeting, positioning, product, price, distribution, sales force management and communication considerations.
The document provides a brief profile of rural India, highlighting that around 75% of India's population lives in rural villages. It notes that rural India is heterogeneous with many ethnic groups and languages. Around 55% of rural income comes from agriculture. Infrastructure in rural areas lags urban areas, with only around half of rural households having access to electricity. Literacy rates have risen in rural areas but education levels remain lower than in urban centers on average.
The document discusses segmenting rural consumers and the bases for rural market segmentation. It identifies that rural consumers are heterogeneous and segmentation is needed. It outlines socioeconomic, geographic, psychographic, and consumer behavior factors for segmentation. The Thompson Rural Market Index is also summarized, which assesses rural market potential across 26 factors for 355 districts in India.
Rural marketing in India has evolved over several phases from agricultural marketing to marketing of inputs and now all products and services. It faces many challenges including low literacy, income and infrastructure in rural areas. However, the rural market also has great potential due to its large population and rising prosperity. Successful rural marketing requires understanding rural consumers, improving infrastructure, and employing appropriate media and promotion strategies tailored to rural needs and culture.
The document discusses rural marketing in India, including problems, prospects, and approaches. Some of the key problems in rural marketing are low literacy, seasonal demand tied to agriculture, poor transportation and infrastructure, and traditional decision-making processes. However, there are also significant prospects, such as in agriculture consulting, banking and loans, healthcare, telecommunications, and education. Common approaches to tap the rural market include direct selling, working with self-help groups, offering affordable small packages, product promotions at local events, and providing financing schemes to address cash flow issues. In conclusion, developing e-rural marketing and digital skills can further enhance rural marketing in India.
Rural marketing involves assessing, stimulating, and converting purchasing power in rural areas to create demand for products and services. India's vast rural market offers potential for marketers facing urban competition. Rural consumers have customs and behaviors that differ from urban areas. Improving rural incomes, infrastructure, health, education, and employment opportunities can help realize the vision of a modern rural economy. Marketers have entered rural markets by extending existing product distributions or developing separate rural strategies. The growing interest in rural markets is due to their large size, untapped potential, and increasing incomes.
Rural marketing involves planning and implementing marketing functions tailored to rural areas. It differs from urban marketing in several key ways, including infrastructure availability, income patterns, lifestyle and culture, accessibility, and media habits. The case study describes Akashganga, a computerized dairy management system that helps farmers increase efficiency and transparency in milk collection and payment. By offering trials, responsive service, and hiring local people, the company was able to gain farmers' trust and succeed in the rural market.
Rural areas of India are home to 75% of India's population of over 1.2 billion people, spread across more than 638,000 villages. While rural incomes and standards of living have been improving, poverty remains widespread and infrastructure like electricity, sanitation, and healthcare are lacking in many rural areas. The rural market contributes over half of India's total consumption and is divided into groups based on income levels, with many rural households still classified as "destitute" living on less than 16,000 rupees annually. Various government programs aim to reduce rural poverty and stimulate development.
Rural marketing involves developing, pricing, promoting, and distributing goods and services to rural customers to meet their needs and exchange value, while also achieving organizational objectives. It is a two-way process between urban and rural areas, with FMCG goods, fertilizers, and vehicles going from urban to rural areas, and agricultural products like fruits, vegetables, flowers, and milk going the other way. Rural marketing has evolved over four phases from independence to the present day. The rural market can be segmented based on population size, location, sociological characteristics, and income. Some challenges include fake products, urban bias, lack of competence, distribution issues, and understanding rural consumers. Strategies include small pack sizes, low prices, branding,
This document summarizes key aspects of the rural marketing environment in India based on Chapter 2 of the textbook "Rural Marketing, 2e". It describes the evolution of rural marketing through four phases from an unorganized market to initiatives focused on rural development. It then analyzes the rural demographic, physical, social, cultural, political, and technological environment. Finally, it examines the rural economic structure including the farm and non-farm sectors, rural enterprises, migration trends, income and expenditure patterns, and changing consumption patterns in rural India.
Rural Marketing is a very interesting Concept, because rural Marketing is different as compare to developed cities.there are different Challenges in rural market like, Less population, Roads Connectivity, Internet Connection, Internet Speed, Infrastructure, Purchasing power and so on...
There are number of challenges and some big companies come with different ideas for the development of villages and for their own Branding.
Rural markets in India offer significant opportunities but also have unique challenges compared to urban markets. Rural consumers have lower incomes and literacy, more seasonal demand, and lack access to infrastructure and information. To effectively market in rural areas, companies must segment consumers, develop appropriate products, pricing, and distribution suited to the local context. While rural marketing was initially focused on agriculture, it now encompasses a wide range of consumer goods and services. Initiatives like ITC's e-Choupal have helped connect farmers in remote villages to information.
This document discusses rural marketing in India. It defines rural marketing as developing, pricing, promoting, and distributing rural-specific products and services to satisfy consumer needs in rural areas while achieving business objectives. It notes that over 70% of Indians live in rural areas, making the rural market very large. It provides examples of companies that have tailored products and services for rural consumers, such as affordable soaps, refrigerators, and mobile apps that provide farming information.
Shades of business in urban and rural areasAVI DHALL
Business environment is different at different places.
With this presentation you'll come to know differences between urban and rural business environments.
This document discusses rural marketing of fast-moving consumer goods (FMCG) in India. It notes that the Indian FMCG industry is the fourth largest in India and is estimated to grow to $74 billion by 2018. It faces several challenges in rural areas, including poor transportation infrastructure, lack of warehousing, high packaging costs, low literacy rates, and seasonal demand. However, some companies have found success through products tailored to rural needs, such as low-voltage TVs and hand-cranked radios. Overall, rural marketing in India offers growth opportunities for FMCG companies but requires an understanding of rural consumers' characteristics and challenges.
Rural India represents a significant market opportunity for FMCG and durable goods companies due to its large population and growing incomes. Many FMCG companies have launched small pack sizes and used innovative marketing strategies like village fairs to reach rural consumers. While rural markets offer potential for growth, they also present challenges like low literacy, lack of infrastructure, and cultural diversity that require customized marketing approaches. Government policies aim to promote growth in the FMCG sector by reducing duties and regulations.
The document discusses rural marketing in India. It defines rural as areas with populations under 5,000 and where 75% of males work in agriculture. Rural marketing involves all aspects of bringing a farm commodity to market. Key features of rural markets include their large, scattered size; diverse socioeconomics; agriculture-based income; and traditional outlook. The document outlines strategies for rural marketing, including addressing availability, affordability, acceptability, and awareness. It also discusses the rural consumer profile and strategies to motivate rural consumers.
This document provides an introduction to rural marketing. It discusses why studying rural marketing is important given agriculture's declining share of GDP but continued importance in rural areas. It covers definitions of rural areas, phases of rural marketing development, the scope of rural marketing including different perspectives. It also summarizes key changes in rural India like population trends, employment patterns, income trends and settlement patterns. It discusses different schools of thought in rural marketing and strategic issues like the role of technology and partnerships. The overall document provides a high-level overview of concepts and trends in rural marketing.
This document provides an overview of rural marketing in India. It discusses the evolution of rural marketing from the 1960s to present day, characteristics of rural markets, importance and scope of rural marketing, differences between rural and urban consumers, factors influencing rural consumer behavior, and rural consumer tastes compared to urban tastes. Key points include that 75% of India's population lives in rural areas, rural markets have high growth potential, environmental, personal, psychological, cultural and social factors all influence rural consumer behavior, and rural consumers prefer bold colors and entertainment like folk performances compared to urban preferences.
This document discusses rural marketing in India. It begins by defining rural areas according to different government agencies and organizations. It then discusses what constitutes rural marketing and some of the key reasons for companies to target rural markets, such as large untapped market size and rising incomes. It provides examples of companies that have found success in rural India. The document outlines characteristics of rural markets, including diversity across villages, and challenges such as low awareness, infrastructure issues and geographic spread. It also discusses encouraging indicators for rural market growth and profiles the rural consumer. Finally, it covers aspects of developing a rural marketing strategy, including segmentation, targeting, positioning, product, price, distribution, sales force management and communication considerations.
The document provides a brief profile of rural India, highlighting that around 75% of India's population lives in rural villages. It notes that rural India is heterogeneous with many ethnic groups and languages. Around 55% of rural income comes from agriculture. Infrastructure in rural areas lags urban areas, with only around half of rural households having access to electricity. Literacy rates have risen in rural areas but education levels remain lower than in urban centers on average.
The document discusses segmenting rural consumers and the bases for rural market segmentation. It identifies that rural consumers are heterogeneous and segmentation is needed. It outlines socioeconomic, geographic, psychographic, and consumer behavior factors for segmentation. The Thompson Rural Market Index is also summarized, which assesses rural market potential across 26 factors for 355 districts in India.
Rural marketing in India has evolved over several phases from agricultural marketing to marketing of inputs and now all products and services. It faces many challenges including low literacy, income and infrastructure in rural areas. However, the rural market also has great potential due to its large population and rising prosperity. Successful rural marketing requires understanding rural consumers, improving infrastructure, and employing appropriate media and promotion strategies tailored to rural needs and culture.
The document discusses rural marketing in India, including problems, prospects, and approaches. Some of the key problems in rural marketing are low literacy, seasonal demand tied to agriculture, poor transportation and infrastructure, and traditional decision-making processes. However, there are also significant prospects, such as in agriculture consulting, banking and loans, healthcare, telecommunications, and education. Common approaches to tap the rural market include direct selling, working with self-help groups, offering affordable small packages, product promotions at local events, and providing financing schemes to address cash flow issues. In conclusion, developing e-rural marketing and digital skills can further enhance rural marketing in India.
Rural marketing involves assessing, stimulating, and converting purchasing power in rural areas to create demand for products and services. India's vast rural market offers potential for marketers facing urban competition. Rural consumers have customs and behaviors that differ from urban areas. Improving rural incomes, infrastructure, health, education, and employment opportunities can help realize the vision of a modern rural economy. Marketers have entered rural markets by extending existing product distributions or developing separate rural strategies. The growing interest in rural markets is due to their large size, untapped potential, and increasing incomes.
Rural marketing involves planning and implementing marketing functions tailored to rural areas. It differs from urban marketing in several key ways, including infrastructure availability, income patterns, lifestyle and culture, accessibility, and media habits. The case study describes Akashganga, a computerized dairy management system that helps farmers increase efficiency and transparency in milk collection and payment. By offering trials, responsive service, and hiring local people, the company was able to gain farmers' trust and succeed in the rural market.
This document discusses the rural market in India. Some key points:
- Rural India constitutes 69% of India's population and has seen growing incomes and consumption.
- Rural markets now account for significant portions of sales across many product categories like FMCG goods, motorcycles, cigarettes.
- Factors driving rural market growth include increasing rural incomes, education levels, IT and infrastructure development, and government policies promoting rural development.
- Reaching rural consumers requires tailored marketing strategies that consider local languages, culture, purchasing behaviors. Promotions through TV, word of mouth, and community events are important.
- Some companies have found success targeting rural consumers through affordable product sizes, distribution models, and relevant celebrity
Rural marketing in India is growing in importance as rural populations and incomes rise. Some key points:
- Rural markets now account for over 50% of sales for many FMCG products and are growing faster than urban markets.
- Many major companies have implemented rural marketing strategies like training rural sales agents (Hindustan Unilever) or building rural retail stores (ITC).
- Rural consumers have different characteristics than urban consumers in terms of occupation, income sources, media access, and brand awareness. Successful rural marketing requires understanding rural consumer behavior.
- Segmenting the rural market by factors like geography, demographics, and behaviors is important for effective targeting and positioning of products. Companies must consider
Marketing practices by fmcg companies for rural market shailu (2)Md Aktar
This document provides a literature review and background on marketing practices by fast-moving consumer goods (FMCG) companies in rural markets in India. The literature review covers strategies used by companies like ITC and Hindustan Unilever to target rural consumers. It also discusses the differences between rural and urban markets in India and the need for tailored rural marketing strategies. The background section provides an overview of major FMCG companies in India like Nestle, Hindustan Unilever, Colgate, and Britannia and their history in the Indian market. It also discusses the evolution of the FMCG sector in India and key factors that have shaped marketing to rural consumers.
Marketing practices by fmcg companies for rural market shailu (2)Md Aktar
This document provides a literature review and background on marketing practices by fast-moving consumer goods (FMCG) companies in rural markets in India. The literature review covers strategies used by companies like ITC and Hindustan Unilever to target rural consumers. It also discusses the differences between rural and urban markets in India and the need for tailored rural marketing strategies. The background section provides an overview of major FMCG companies in India like Nestle, Hindustan Unilever, Colgate, and Britannia and their history in the Indian market. It also discusses the evolution of the FMCG sector in India and key factors that have shaped marketing to rural consumers.
This document summarizes a study on consumer behavior and brand preferences in rural India for fast-moving consumer goods. It finds that rural incomes are rising and lifestyles changing, creating a large market opportunity for FMCG companies. Many companies have developed innovative rural marketing strategies like ITC's e-Choupal internet kiosks and HLL's Project Shakti. The rural market is diverse and companies must tailor their products, communications and distribution appropriately to different rural segments to succeed. Understanding rural consumer psychology, traditions and decision making is key to effective rural marketing.
1. The document discusses rural marketing in India, defining rural areas as villages with populations under 5,000 and where 75% of males work in agriculture.
2. It outlines key features of rural markets like their large, scattered size; diverse socioeconomic backgrounds; changing demand patterns; and infrastructure challenges. Rural incomes primarily come from agriculture and standards of living are generally low.
3. Strategies for rural marketing success include ensuring product availability, affordability, acceptability, and creating awareness through village events and unconventional media. Small pack sizes, sturdy designs, and brands represented through symbols are recommended.
1. The document discusses consumer behavior and brand preferences in rural India, specifically regarding fast moving consumer goods (FMCG).
2. Rural incomes are rising and lifestyles changing, creating major opportunities for FMCG companies in rural markets, which now account for around half of India's FMCG consumption.
3. Companies need innovative rural marketing strategies that consider differences between rural and urban consumers and variations within rural regions.
Rural markets have become increasingly significant due to rising incomes in rural communities. Rural areas now represent strategic growth opportunities for both domestic and multinational companies. There is large untapped potential in rural markets, so companies are placing greater emphasis on marketing products to rural consumers. Rural markets now rival urban markets in size and purchasing power due to effective marketing policies that have reached rural customers.
An analytical study on the opportunities of rural marketing in indiaIAEME Publication
1. The document discusses opportunities for marketing in rural India. It notes that rural India has a large population and market potential.
2. Key points covered include reasons for companies to target rural markets like rising incomes, infrastructure growth, and education levels. It also outlines some challenges for marketers in rural areas like lack of infrastructure, seasonal incomes, traditional mindsets, and language barriers.
3. The document presents research on rural consumer spending and technology usage. It describes the methodology used in a study that interviewed 200 rural respondents to understand rural marketing environments and consumer behaviors.
This document discusses the changing dimensions of marketing strategies for the Fast Moving Consumer Goods (FMCG) sector in rural India. It notes that rural markets now represent a huge untapped potential given India's large rural population and rising rural incomes. FMCG companies are increasingly targeting rural consumers through tailored marketing strategies. The document examines reasons for tapping rural markets, including untapped potential, increasing purchasing power, and greater accessibility and infrastructure in rural areas. It also outlines objectives of studying rural marketing strategies and factors driving growth in rural markets like government policies, agricultural development, and education/research.
This document discusses rural marketing environment and factors influencing rural consumer behavior. It defines rural marketing environment as the sum of external factors surrounding a rural marketing organization, including social, economic, ethical, political, physical and technological factors.
Some key points made in the document are:
1) Social factors like sociological, anthropological and psychological aspects influence rural consumer habits, tastes and lifestyles.
2) Economic factors like competition, consumers, prices, ethics, politics, infrastructure and technology shape rural marketing strategies.
3) Factors influencing rural consumer behavior include their environment, culture, social class, personal characteristics, and marketing mix elements.
This document provides an overview of agribusiness and rural marketing in India. It defines rural marketing and discusses the scope and components of rural markets. Key points include:
- Rural marketing involves all operations related to moving farm products from farms to consumers, including pre- and post-harvest activities.
- Rural markets have potential for banking, healthcare, telecom, automotive, and other services.
- Agribusiness refers to commercializing agriculture through a market-oriented approach. Issues in India include food wastage, low processing rates, and an underdeveloped cold chain system.
- Rural and urban markets differ in factors like population size/density, occupations, media reach, and approach (rural
Opportunities and challenges in indian rural marketSAMEER LAKHANI
The document discusses opportunities and challenges in the Indian rural market. It outlines objectives related to studying the current rural market scenario in India. It examines the scope, needs, features and importance of rural markets. Some key opportunities in rural markets include rising incomes, improved infrastructure, and changing consumption patterns. However, marketers also face challenges such as low literacy, distribution issues, and seasonal demand fluctuations. Innovative rural marketing practices adopted by companies are also described.
- 70% of India's population lives in rural areas, representing a large potential market. However, rural markets face several challenges including lack of infrastructure, low literacy rates, seasonal incomes, cultural differences, and difficulties with distribution and media access.
- Some opportunities in rural markets include improving infrastructure, rising literacy rates due to government programs, increased access to credit and communication technologies, and a decline in poverty levels.
- Marketers must understand the uniqueness of rural areas to effectively tap into the large rural consumer base in India despite the challenges. With innovative marketing strategies tailored to rural needs, substantial growth can be achieved.
Strategy for rural pharma marketing India_ver2.0Rajesh Kumar M
This document provides an overview of the rural pharmaceutical market in India. It notes that rural India accounts for around 25% of the total pharmaceutical market and is growing at a faster rate than urban areas. The rural market is large, with 73% of India's population of over 720 million living in rural areas, and economic indicators suggest rural incomes and consumption will continue rising significantly. However, the rural market also faces challenges such as lack of distribution networks and unreliable infrastructure. To succeed in rural India, companies must tailor their products, packaging, pricing, and distribution to address the specific needs and differences compared to urban markets.
How to succeed in Rural Pharma Market-IndiaRajesh Kumar M
This document provides an overview of the rural pharmaceutical market in India. It notes that rural India accounts for around 25% of the total pharmaceutical market and is growing at a faster rate than urban areas. Several factors are driving this growth, including rising rural incomes, improving economic indicators, and government development initiatives. Successful companies targeting rural customers adapt their products, packaging, pricing, and distribution strategies to address the specific needs and challenges of rural communities. These include lower literacy, less developed infrastructure and transportation networks.
The document discusses rural marketing in India. It defines rural marketing and describes the two-way flow of products between rural and urban areas. Rural marketing involves transactions between urban marketers and rural consumers as well as agricultural marketing from rural producers to urban markets. Rural marketing has evolved over phases from agricultural marketing pre-1960s to developmental marketing in the 21st century. Key aspects of rural marketing include segmentation, lifestyle analysis, and defining target markets. The rural market plays a significant role in the Indian economy as rural areas account for 74% of India's population and over half of India's income.
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RURAL MARKETING DOCUMENTARY@RAVENSHAW UNIVERSITY AVILASH MOHAPATRA
1.
2. Rural marketing is a function which manages all those activates
involved in assessing, stimulating and converting the purchasing
power into an effective demand for specific products and services, and
moving them to the people in rural area to create satisfaction and a
standard of living to them and thereby achieves the goals of the
organization.
3. India’s vast rural market offers a huge potential for a marketer facing
stiff competition in the urban markets. The rural market environment
is very different from the familiar surroundings of the urban market.
Rural consumers have customs and behaviour that the marketer may
find difficult to contend with.
4. Prime Minister Manmohan Singh recently talked about his vision for
rural India: "My vision of rural India is of a modern agrarian, industrial
and services economy co-existing side by side, where people can live
in well-equipped villages and commute easily to work, be it on the farm
or in the non-farm economy. There is much that modern science and
technology can do to realize this vision. Rural incomes have to be
increased. Rural infrastructure has to be improved. Rural health and
education needs have to be met. Employment opportunities have to be
created in rural areas."
5. When rural customers discover the new and exciting choice of brands
available in urban markets, a demand for these brands is created in
rural areas. Marketers have entered the rural markets by extending
the distribution of their existing offering or developing a separate
marketing strategy for the rural markets. When Titan, the watch
manufacturer, found rural consumers purchasing their Sonata brand
of quartz watches, they formulated a marketing strategy tailored to
the requirements of the rural market.
6. • There are quite a few reasons for the growing interest in rural markets.
A very straightforward reason is the growth of these markets are :
• Untapped Potential
▫ The large number of consumers
▫ Largely untapped markets
• Market Size and Potential
• Unmet Needs/Low Penetration
• Current Consumption a Pointer to Potential
• Increasing Income and Purchasing Power
• Accessibility of Markets
• Competition in Urban Markets
• Consumer Behaviour Changes
7. The size of rural markets, demographic profi le of the rural market
and market volume help us to draw a broad mental picture of the rural
markets. The number of villages, population and the number of
households indicates the market size. The demographic profile of the
rural market is described in terms of household size, sex distribution,
literacy levels, occupation and income.
8. The market volume is an indication of the market attractiveness and this is
influenced by the market size and also the market profile. The large population
and increasing incomes make the rural markets an attractive proposition for
marketers. The market volume is captured by the consumption expenditure.
The ownership of consumer durables is useful in understanding market volume;
and in the case of consumer non-durables the consumption expenditure
pattern is a useful measure of market volume.
9. The number of villages, population and number of households captures
the rural market size.
◦ Physical Coverage
The number of villages in India is more than .64 million. The number of villages or
locations that are to be served is 124 times that of the urban markets as the number
of urban locations or towns is 5,161.
10. The demographic profile of the rural market is captured by the
household size, sex distribution, literacy level, occupation and income.
Literacy Rate
◦ Literacy rate is available from National Sample Survey Organization (NSSO).
The rural markets have lower levels of literacy as compared to the urban
markets.
11. The National Sample Survey (NSS), initiated in the year 1950, is a nation-wide,
large-scale, continuous survey operation conducted in the form of successive
rounds.
The Steering Committee consisted of 8 Non-official and 8 Official members. The
Non-official members are men of eminence in either of the fields of economics,
statistics and social sciences.
The Official Members are all senior officers of the Ministry of Statistics and
Programme Implementation, Planning Commission and State Directorates of
Economics & Statistics. The Director General and Chief Executive Officer (DG &
CEO) of NSSO is the Convener of the Steering Committee.
NSS is involved in three types of surveys.
◦ Socio-economic surveys
◦ Annual Survey of Industries
◦ Agricultural surveys
12. Occupation
▫ Although majority of the rural population is employed in agriculture, yet a
large percentage of more than 30 per cent employed is in the non-
agricultural sector. Salary earners in the rural areas are a significant
group with more than 11 per cent of the head of the households as salary
earners.
Income
▫ It is short-sighted to view rural markets as an extension of urban markets.
The issue facing the rural marketer is not of adequate consumers who can
afford what the urban market consumes. The situation, instead, requires
the marketer to identify and reach out to consumers with offers that meet
variations in their ability to purchase.
13.
14. Rural consumers exhibit a skewed use of consumer durables possibly
reflecting the lack of suitability of the current products available in the
market. The rural consumers require products suited to their needs.
Rewards await the marketer willing to invest in understanding their
needs and translating them into products and services.
15. A barrier to adoption of a number of consumer durable goods that
require electricity to operate, is the lack of electricity in many rural
households. Thirty-seven per cent of the rural-urban difference in the
penetration levels for consumer durable products is explained by the
lack of the spread of electricity in rural areas.
16. The rural household spends, on an average, Rs 3,384 per year for 22
consumer non-durable products that include toiletries, cosmetics,
packaged foods, washing products, etc. The urban households spend
on an average Rs 7,559 a year for the 22 consumer non-durables.
17.
18. The results from another study which was conducted by Business
world also support the above findings. According to this study:
(a) Fast-moving consumer goods purchased by rural consumers include toilet
soaps, washing soap bars, edible oil, tea and washing powders. These indicate
that rural consumers buy basic products.
(b) The acceptance of hair wash preparations like shampoos is less than that of
products like soaps. This shows that personal hygiene is also considered
important by a number of rural consumers.
(c) The purchase of superior products is also indicated in this study. Toothpowders
were long considered to be the only sort of oral-care product rural markets
would buy, yet toothpaste penetration has actually overtaken toothpowder
penetration.
19. Infrastructural facilities like roads and communication network, rural
electrification, public distribution system, cinemas, television coverage
and the like also received considerable attention in rural areas.
20. Rural electrification has been going on in a big way. Statistics indicates
that 5,09,620, which is about 88 %, now have an electricity
connection.
To achieve its goals the central government created an organisation
called ‘RURAL ELECTRIFICATION CORPORATION’ with the sole idea of
financing rural electrification projects.
Rural Electricity Supply Technology (REST), Pradhan Mantri Gramodaya
Yojna (PMGY).
21. Road Network : The road network of over three million kilometers in
India is the largest in the world.
Rail Network : Indian railway network consists of approx. 63000 km
which is connected to thousands of villages.
Cinema Hall
Television Network
Postal system
Telecommunication
22.
23. The popular image of a rural consumer is of one who has limited
educational background, is exposed to limited products and brands,
chooses price over quality, and is influenced by word-of-mouth
communication. There is also the view that a rural consumer is no
different from his urban counterpart. Changing consumption patterns
reflect the evolving lifestyle of rural consumers.
Examining the lifestyle of the rural consumer helps to understand the
consumption pattern and the influence of the environment on
consumer behavior.
24. Increasing incomes and income distribution.
Marketers’ efforts to reach out and educate potential consumers.
The situation in which the consumer utilizes the product.
25. 1. Many households in the rural area are not electrified which:
(a)affects the ability of the rural consumer to use electrical products
(b) increases the demand for batteries.
2. The non-availability of piped running water affects both the durable and
non-durable markets:
(a) automatic washing machines have no demand in such situations;
(b) washing powders cannot be used if clothes are washed in streams or ponds.
3. The availability of roads influences the purchase of motorized vehicles. In
direct contrast:
(a)more than half the rural households own bicycles;
(b) Automobile manufacturer will face the hurdle to sell car or bikes to rural
households.
26. Since a stereotype of the rural consumer or of rural consumer
behavior is absent, it creates problems as well as opportunities for the
marketer. Variations in behaviour reflect geographical, demographical
and behavioural influences on lifestyle, which provides marketers with
options to segment the market. The creative use of products suggests
possibilities for market development. Behavioural bases for
segmenting could be socio-cultural or consumer perceptions and
attitudes.
27. To understand rural buying behavior, a marketer must first understand
(a) the factors that influence buying behavior and
(b) the variations in behavior.
These help to generate information upon which a marketer can create
bases to segment the rural market.
◦ Environment of the consumer
◦ Geographical influences
◦ Influence of occupation
◦ Place of purchase
◦ Creative use of products
28. Virtually all radios, cassette players and television sets are made to
urban power supply specifications. In many villages, particularly in
power-strapped states, voltages fluctuate wildly, making electrical
products susceptible to frequent breakdowns. Rural consumers may
not mind paying more for products like the television or radio if they
can withstand frequent voltage fluctuations.
29. The rural market is not a homogeneous one. Variations in economic
development and in consumer willingness to accept innovations are
evident in rural markets.
for example, the difference between parts of western and eastern
Uttar Pradesh (UP) is extreme.
In western UP, villagers speak Hindi whereas in eastern UP they speak
Bhojpuri.
Variations in consumer behaviour due to geographical locations are
also reflected in the variations in their innovativeness.
30. • The perception that the rural consumer is either a farmer or an
agricultural laborer restricts marketing effectiveness. In fact there
are other groups of consumers with different needs and behaviour and
having significant purchase volumes.
• Except Farmers other occupation profiles of consumer indicate that
the nonagricultural occupation groups of shopkeepers or traders and
those employed in service (government administration jobs, banks,
teachers, other professionals, etc.) are the high consumption segment.
Television owners in the service class constitute 43 per cent, which
means one in two persons owns a television set.
31. Not all rural consumers buy from the same location. It is also true that
the same consumer could buy from different locations depending on
the product and the need.
A study on haats indicates that, despite the same product being
available in the village shop, 58 per cent of the rural consumers
visiting the haats preferred to buy these from a haat because of better
prices, quality and variety.
Rural consumers do not rely on the local outlets and haats alone, as
some of the purchases are made in the urban areas
32. Understanding the social and attitudinal influences on rural consumer
behaviour is important to the marketer, as these serve as a guide to
decisions on product offering, pricing, distribution, media and
message; in effect forming the ‘rural marketing strategy’.
33. In rural areas the houses are painted during festival season. The demand for
distemper paints is therefore very large. This demand is met by local
brands, which are of low quality. Asian Paints developed a product with
bright colour shades (preferred by the rural consumers) for rural markets
and which had greater durability than the local brands. It launched the
product in a pouch form and with the brand name Utsav.
Utsav was promoted as a good quality economy brand. It used wall paintings
and point-of-purchase displays to create awareness. It identified dealers
and sub-dealers who had the potential to stock and sell Utsav. To
demonstrate the quality of Utsav, the company painted the headman’s house
or post office. The brand was well accepted by the rural consumer.
34.
35. The marketer who seeks to modify the behaviour of the rural
consumer needs to influence the consumer’s perception and attitude.
It is here that the marketer has to be careful in designing products
and developing message for the rural market.
The interpretations of the rural consumer differ from those of the
urban consumers. Colours are interpreted differently, so are sizes and
shapes.
In interior markets, brand identification is through visual patterns—a
red soap cake signifies Lifebuoy soap.
36. Conventional wisdom on rural marketing believes that the villager
craves, but can’t afford the products his city cousin consumes. As a
result, companies usually try to reduce the prices of their products
either by creating smaller pack sizes, or by compromising on quality.
This works sometimes, and with some products.
However, it is not true that only cheap brands sell in rural markets.
Usha found that the sale of its economy models was falling sharply in
rural areas. Farmers preferred Usha’s premier ‘Century’ brand,
though it was priced 20 per cent higher.
37. The rural consumer has a very high involvement in any product
purchased, especially when he decides to buy high-end products which
cost a few hundreds or thousands of rupees. He has his daily routine,
and there is no sense of urgency in his lifestyle. He understands
symbols and colours better, and looks for endorsement by local
leaders or icons
38. A marketer does not perceive an opportunity in rural market when he
or she thinks that the rural consumer buys only unbranded items. It is
useful to have a good understanding of the purchase behaviour of the
consumer in order to guide decisions in the rural markets.
The loyalty of rural consumers to a brand varies according to product
categories. It has been seen that loyalty is low in toilet soaps,
toothpaste, batteries and washing cakes but high in home insecticides,
chyavanprash, shaving preparations and skin cream.
39.
40. A successful attempt in the direction of assessing the potential of
rural markets has been made by Hindustan Thompson Associates
limited.
They made the first attempt in 1972. since most of the data are
available at district level, they collected these data for 334 districts.
They identified 11 factors and assigned a weightage to each other.
However, this was not considered to be satisfactory approach.
Hence another attempt was made in the year 1986. During the
second attempt, they considered 26 factors for constructing the
rural marketing index, in this attempt they considered 383 districts.
41. Area of the district in sq km
Demographics
◦ Population
◦ Males
◦ Females
◦ Density per sq km
◦ Number of villages
◦ Percentage distribution of villages
◦ Literate – rural numbers
◦ Percentage of literacy
◦ Literate : males
◦ Literate : females
Occupational pattern
◦ Cultivators
◦ Agricultural laborers
◦ Non Agricultural laborers
42. Agricultural related data
◦ Gross cropped area in hectares
◦ Gross irrigated area in hectares
◦ Area under non food crops in hectares
◦ Average size of operational holdings in hectares
Agricultural inputs data
◦ Pump sets and tube wells
◦ Fertilizer consumption in metric tonnes
◦ Number of tractors
Rural electrification data
◦ Percentage of villages electrified
Commercial banks data :
◦ Number of rural branches
◦ Deposits in lakh of rupees
◦ Advances in lakh of rupees
43. Considering the environment in which the rural market operates and its
associated problems, and the experience of manufacturer and
marketing men who operates in the rural market, it is possible to evolve
certain strategies specifically for rural marketing.
In this section we try to draw a framework for the adoption of a mix of
marketing strategies pertinent for rural marketing.
44. • Drawn from the experience of companies operating in the rural market,
meaningful product strategies for the rural market and rural consumer have
been discussed here.
• Small unit packaging : this appears to be an effective strategy for
realizing the potential of rural market. The reduced pack sizes attract a
large number of rural consumers to at least try and test the products.
• Low priced packaging : take an e.g. of ‘Janta blend, they marketed a
brand of tea which contained 70 percent tea, 20 percent of chicory and 10
percent of tipoca flour.
• New product designs
• Sturdy products
• Utility oriented products
• Brand name
45. Pricing strategies are linked to the product strategies. The product
packaging and presentation also keeps the price low to suit the rural
consumer.
Some of the pricing strategies are discussed below:
Low cost/ cheap products: the price can be kept low by low unit
packing's like paisa pack of tea, shampoo sachets, Vicks 5 grams
tin, etc. this is a common strategy widely adopted by many
manufacturing and marketing concerns.
Refill packs / Reusable packaging: in urban areas most of the
health drinks are available. The containers can be put to
multipurpose uses. Such measures can a significant impact in the
rural market.
46. Application of value engineering: in food industry,
Soya protein is being used instead of milk protein. Milk
protein is expensive while Soya protein is cheaper, but
the nutrition content of both is the same. The basic aim
is to reduce the value of the product, so that a larger
segment can afford it, thus, expanding the market
47. While it is necessary to formulate specific strategies for distribution
in rural areas, the characteristic of the product – whether it is
consumable or durable, the life of the product and other factors
have to kept in mind.
The following strategies formulated for the rural category.
◦ Coverage of villages with 2000 and above population: Ideally,
coverage of villages with up to 2000 and above population could be the
break-even point for a distribution setup. By doing so the percentage of
villages covered comes to only 10% of all the rural population covered
will b substantial. With improved communication facilities it is possible to
reach distribution vas to these villages.
48. Use of co-operative societies: There are over 3 lacks co-operative
societies operating in rural areas for different purposes like marketing
cooperatives, farmers service cooperatives and other multipurpose
cooperatives. These cooperatives have an arrangement for centralized
procurement and distribution through their respective state level federation.
Utilization of public distributory system: The PDS in the country is fairly
well organized. The revamped PDS places more emphasis on reaching remote
rural areas like the hills and tribals. The purpose of PDS is to make available
essential commodities like food grains, sugar, kerosene, edible oils and others
to the consumers at a reasonable price.
Utilization of multipurpose distribution centres by petroleum/oil
companies: In order to cater to the rural areas the petroleum/oil companies
have evolved a concept of multipurpose distribution centres in rural areas. In
addition to petrol/diesel, lubricants, these outlets also stock consumables
agricultural inputs like fertilizers, pesticides and seeds.
49. Distribution upto feeder markets/mandi towns: Keeping in
view the hierarchy of markets for the rural consumers, the feeder
markets and mandi towns offer excellent scope for distribution. The
rural customers visit these towns at regular intervals not only for
selling the agricultural produce but also for purchasing cloth,
jewelry, hardware, radios, torch cells and other durables and
consumer products.
Shandies/Haaths/Jathras/Melas: These are places where
the rural consumers congregate as a rule. While
shandies/heaths are held a particular day every week, Jathras and
melas are held once or twice a year for longer durations. They are
normally timed with religious festivals. Such places attract large
number of itinerant merchants. Only temporary shops come up
selling goods of all kinds. It can be beneficial for companies to
organize sales of their product at such places.
50. Agricultural Input Dealers: Fertilizers should be made available
to the farmers within the range of 4-5 km from their residence, as
per the essential commodities act. This is why there are about 2
lakh fertilizer dealers in the country, both in cooperative & private
sector. 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. The supermarket in Varana
Nagar caters exclusively to rural consumers. Similarly a co-
operative supermarket called ‘Chintamani’ in Coimbatore (T.N)
arranges free transit of rural consumers to the supermarket of their
purchases.
51. The burgeoning rural markets have become a great opportunity for
many companies to expand sales. However, many of them back out
as they find distribution as a major problem. Used to the developed
distribution network in the urban markets, they try the same tricks in
rural markets, namely, extensive retailing and sustained pull
generation through mass media advertising. As a result they fail and
place the blame on the less developed infrastructure of the rural
markets. Creative companies like HLL, have been experimenting to
find innovative ways of reaching the rural consumers.
52. Difficulty in reaching rural consumers
The major problems are:
◦ Lack of adequate transport facilities,
◦ Large distances between villages,
◦ Lack of pucca roads connecting villages to nearest townships,
◦ Lack of proper retail out lets
53. the rural distribution chain needs the village level shopkeeper, the
mandi-level distributor and the wholesaler/stockiest in the town. And
on top of them are the manufacturers’ own warehouses/branch
office operations at selected centers in the marketing territory. Such
multiple tiers and scattered outfits push up costs and make channel
management a major problem. The scope for manufacturers’ direct
outlets such as show rooms or depots is quite limited in the rural
market unlike in urban areas. Lit become expensive as well as
unmanageable.
54. Another problem is the availability of dealers. Many firms
find that there are a limited number of suitable dealers.
Even if the firm is willing to start from scratch and try out
rank newcomers, the choice of candidates is really
limited.
55. Retail sales outlets in the rural market suffer from poor viability. A
familiar paradox in rural distribution is that the manufacturer incurs
additional expenses on distribution; still the retail outlets find that the
business is un remunerative. The scattered nature of the market
and the multiplicity of tiers in the chain use up the additional funds
the manufacturer is prepared to part with And no additional money
comes to any of the groups.
56. Inadequacy of institutional/bank credit is another constraint. Rural
outlets are unable to carry adequate stocks due to lack of credit
facilities. They are unable to extend credit to their customers. Thus
there is a vicious circle of lack of credit facilities leading to
inadequate stocking and loss of business, finally resulting in poor
viability of outlets.
57. There are wide regional variations in the prosperity levels of the
districts and hence in their market potential. These need to be
analyzed and understood sectorally in order to determine the
methods for approaching them.
A socio-economic survey undertaken in four progressive districts,
one from each part of the country—Tanjore, Ludhiana, Burdwan
and Kolhapur—revealed a healthy per capita income growth of 5
per cent per annum among big and small farmer against a nation
average of 1.5 per cent. This has come about through improved use
of land coupled with a reduction in family size.
58. Consider Hero Honda Motors. Its 360 dealers allover the
country has reported the emergence of an unofficial
channel of distribution –village mechanics, local real
estate agents, shopkeepers who sell non-durables and
so on. These people are taking motorcycles from the
official dealers-usually in twos and threes— displaying
them outside their premises and closing a sale. The
paper work, though, is left to the dealer to complete.
59. In terms of their coverage of population and their share
in total supply of agricultural inputs, including credit,
Cooperatives occupy an important place in India’s rural
economy. India has largest network of cooperatives in
the world. Rural scan reports that there are 4398 primary
marketing societies and 2933 large agricultural
multipurpose primary marketing services(LAMPS) in the
country.
60. Public Distribution System (PDS)
The fair price shops run by government can be utilized to sell consumables
and low value durables.
Agricultural Input Dealers
Fertilizer companies have retail outlets within a range of 5 km to any village.
They offer a scope for marketers.
NGOs
Non government organizations (NGOs), can reach interiors of villages. Most
NGOs have progrms focusing on sustainable development through
providing avenue for income generation. They command substantial
influence in the villages covered by them. Companies may join hands with
them to mutual benefit. With NGOs undertaking distribution, companies
realize benefits accruing from infrastructure and grass roots level
networking. Also organization security would provide a buffer against
delayed retail collections. From the NGOs standpoint, such association with
companies could yield employment opportunities for local residents.
61. Barefoot Salesmen
One useful option is to train sons –of-the soil to operate as barefoot
salesmen. The important requirements like fluency in the local dialect and
familiarity with persons and terrain will be the advantage in hire the persons
form villages.
A barefoot salesman, operating on a retailer-cum-commission basis, could
book orders from retailers in villages with in a limited radius of his village.
When orders are aggregated and served there will be economies in
distribution.
Syndicated distribution
A new alternative approach is syndicated distribution. Under this approach,
marketers of household products could group together and consider the
formation of a syndicated trading organization, which could jointly distribute
collective group of household products in the rural market and enjoy shared
economies.
62. Network Marketing: Network marketing is a form of
direct selling. It can take place at two levels.
◦ Single level—distributor appoints sales persons. He earns profits
on sales, made by him.
◦ Multi-level-distributor introduces another distributor (a friend or
relative, in general), who in turns introduces another distributor.
63. The promotion measure should be cost effective due to the low
literacy rate of the rural population. Word of mouth is an important
message carrier in the rural areas and “opinion leader” play a
significant role in influencing the prospective rural consumers about
accepting or rejecting a product or a brand.
There are other attributes in the promotion strategy which are
explained as under:
◦ Mass media: In the present world mass media is a powerful medium of
communication. The following are the mass media generally used:
◦ Television.
◦ Cinema
◦ Radio
◦ Print media: Handbills and Booklets, posters, stickers, banners,
64. 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, its features, uses and
benefits. This can be achieved only by personal selling by highly
motivated sales person. In fact the word of mouth information holds
lot validity in rural areas even today.
Special campaigns: During crop harvest and marketing seasons
it is beneficial to take up special promotion campaigns in rural
areas. Tractor owners (tonee) conducted by MRF Limited is one
such example. Brooks Bond carries out marches in rural areas with
band, music and caparisoned elephants to promote their brand of
tea.
65. Philips India was among the first consumer durables companies to hit
the rural 143 market with its Bahadur brand of Transistors in the 1950s.
but somewhere down the line, the rural focus was gone. However, in
the mid-1998, Philips felt the need to improve its market share in
upcountry markets. It decided to launch a special project in Tamil Nadu
and Andra Pradesh at a total cost of Rs. 5 Crore. Rural consumers
need to be seen as ‘different’ and ‘not inferior’.
It is with this belief that Philips approached rural buyers in Tamil Nadu
and Andra Pradesh. “the idea was to present Philips in a relevant
manner to the rural consumer, position it as a truly International brand,
the way a rural buyer would understand it,”says V.Swaminathan, Philips
general manager (distribution & rural marketing) at its consumer
electronics department division. So Philips held road shows, van
promotions, merchandising etc. in villages with populations of about
5000.
66. During the exercise, Philips painted 1 lakh square ft of wall area in
Tamil Nadu and Andhra Pradesh. 4 ad campaigns- 2 for B&W (Black
&White) TV and 1 each of C (Colour) TV and audio systems- were
created in Tamil and Telugu. These were executed in cinemas,
theatres and through video vans (68% of people in Tamil Nadu watch
films and 81% in Andhra). The electronic media ads were slickly used.
Philips did not compromise on the production values.
In the ad film for Andhra Pradesh, Philips used popular singer S P
Balasubramanyam. The ad showed star complementing his son for
buying a worldclass Philips TV. The results of the entire exercise: sales
rose by between 25% and 30% in these states in the last 6 months.
Now, Philips is extending the exercise to Uttar Pradesh and
Maharashtra.
67. "The medium is the message" acquires critical importance for advertisers
and marketers in India as different media have varying penetration levels.
For example terrestrial TV has the highest penetration among all types of
media with 78 per cent penetration in urban India and 36 per cent in rural
India. It's reach is the highest in the 14 to 19 age group with 62 per cent.
In contrast satellite TV reaches only 13 per cent of India. The medium's
highest penetration of 52 per cent is in urban Maharashtra. But in the rural
parts of the state it has a penetration of a mere 4 per cent. Similarly in
Assam and Orissa satellite TV reaches only 4 per cent of the population.
Given the high literacy levels it is natural that print media has the highest
penetration in Kerala. It reaches 76 per cent in urban Kerala and 65 per cent
in rural parts of the state. Print media has the lowest reach in Assam with 11
per cent.
68. Few of the available options in the traditional media are
Puppetry, Folk Theater & Song, Wall Painting,
Demonstration, Posters, Agricultural Games, and Post
Cards etc.
Puppetry
◦ Puppetry is the indigenous theatre of India. From time immortal it has been
the most popular form and well-appreciated form of entertainment available
to the village people. It is an inexpensive activity. The manipulator uses the
puppets as a medium to express and communicate ideas, values and social
messages.
◦ Life Insurance Corporation of India used puppets to educate rural masses
about Life Insurance; enlisting the help of the literacy house in Luck now.
These plays were shown to the audience in villages in UP, Bihar, & MP.
The number of inquires at local Life Insurance Companies during the period
immediately following the performance was compared with normal
frequency and found to be considerable higher. The field staff of the
corporation also reported a definite impact on the business.
69. Folk Theater
◦ Folk theaters are mainly short and rhythmic in form. The simple tunes help in
informing and educating the people in informal and interesting manner. It has
been used as an effective medium for social protest against injustice,
exploitation and oppression. Folk Theater / Songs Forms In India Andhra
Pradesh: Veethi Natakam, Kuchupudi, Burratatha Assam: Ankiya Nat, Kirtania
Natak, Ojapali Bihar: Bidesia, Serikela Chhau, Jat-Jatni Bidpada, Ramkhelia
Gujarat: Bhavai etc.
Demonstration:
◦ "Direct Contact" is a face-to-face relationship with people individually and with
groups such as the Panchayats and other village groups. Such contact helps
in arousing the villager's interest in their own problem and motivating them
towards self-development. Demonstration may be
A. i. Method demonstration
ii. Result demonstration
B. i. Simple Demonstration
ii. Composite Demonstration
70. ◦ Information about people
◦ Objectives to be accomplished
◦ Demonstration plan & Execution of the plan
◦ Evaluation of the demonstration
◦ Reconsideration after evaluation.
71. The countries oldest tradition holds the key to solving these
problems. The mobile supermarkets of rural India.
Facts & Figures:
◦ Over 47,000 haats and 25,000 melas are held annually. The
average daily sale at a Haat is about Rs.2.25 Lacs Annual sales at
melas amount to Rs.3,500 crore. Over half the shoppers at haats
have shopping lists. More than 10,000 melas draw visitors from all
over India. Nearly half the outlets at melas are for manufactured
goods. Haats is a better opportunity for promotion after brand
building has been done at Mela. Melas are organized after harvest
season, so the villager has enough money, which he will be ready
to spend.
72. Wall Paintings are an effective and economical medium for
advertising in rural areas. They are silent unlike traditional
theatre .A speech or film comes to an end, but wall painting
stays as long as the weather allows it to. Retailer normally
welcomes paintings of their shops, walls, and name boards.
Since it makes the shop look cleaner and better. Their shops
look alluring and stand out among other outlets. Besides rural
households shopkeepers and panchayats do not except any
payment, for their wall to be painted with product messages.
To get one's wall painted with the product messages is
seemed as a status symbol.
73. The research process is very critical to rural marketing. There are
two reasons for this:
◦ The marketer has limited understanding of the rural consumer;
and
◦ The marketer who is urban oriented may find it useful to unlearn
consumer response to decision variables in the urban market.
This requires the use of research methodology that is sensitive to
social processes in rural markets.
The research process used in urban markets may not always be
appropriate in the rural markets. Selecting the research process
therefore requires care in its application in the rural setting.
74. There are many problems to be tackled in rural marketing, despite
rapid strides in the development of the rural sector. Some of the
common problems are discussed below:
Transportation: Transportation is an important aspect in the
process of movement of products from urban production centers to
remote villages. The transportation infrastructure is extremely poor
in rural India. Due to this reason, most of the villages are not
accessible to the marketing man. In our country, there are six lakhs
villages. Nearly 50 per cent of them are not connected by road at
all. Many parts in rural India have only kachcha roads. During the
monsoons, even these roads become unserviceable.
75. Communication: Marketing communication in rural
markets suffers from a variety of constraints. The literacy
rate among the rural consumers is very low. Print media,
therefore, have limited scope in the rural context. Apart
from low levels of literacy, the tradition-bound nature of
rural people, their cultural barriers and their overall
economic backwardness add to the difficulties of the
communication task.
76. Availability of appropriate media:
It has been estimated that all organized media in the country put
together can reach only 30 per cent of the rural population of India.
The print media covers only 18 per cent of the rural population. The
radio network, in theory, covers 90 per cent. But, actual listenership
is much less. TV is popular, and is an ideal medium for
communicating with the rural masses. But, it is not available in all
interior parts of the country. It is estimated that TV covers 20 per
cent of the rural population. But, the actual viewership is meager.
The cinema, however, is a good medium for rural communication.
But, these opportunities are very low in rural areas.
77. Warehousing:
A storage function is necessary because production and
consumption cycles rarely match. Many agricultural commodities
are produced seasonally, whereas demand for them is continuous.
The storage function overcomes discrepancies in desired quantities
and timing. In warehousing too, there are special problems in the
rural context. The central warehousing corporation and state
warehousing, which constitute the top tier in public warehousing in
our country, have not extended their network of warehouses to the
rural parts.
78. Village structure in India:
In our country, the village structure itself causes many problems. Most of the
villages are small and scattered. It is estimated that 60 per cent of the villages
are in the population group of below 1,000. The scattered nature of the villages
increases distribution costs, and their small size affects economic viability of
establishing distribution points.
Rural markets and sales management:
Rural marketing involves a greater amount of personal selling effort compared
to urban marketing. The rural salesman must also be able to guide the rural
customers in the choice of the products. It has been observed that rural
salesmen do not properly motivate rural consumers. The rural salesman has to
be a patient listener as his customers are extremely traditional. He may have to
spend a lot of time on consumer visits to gain a favorable response from him.
79. Inadequate banking and credit facilities:
In rural markets, distribution is also handicapped due to lack of
adequate banking and credit facilities. The rural outlets require
banking support to enable remittances, to get replenishment of
stocks, to facilitate credit transactions in general, and to obtain
credit support from the bank. Retailers are unable to carry optimum
stocks in the absence of adequate credit facilities. Because of this
problem, the are not able to offer credit to the consumers.
80. Branding:
The brand is the surest means of conveying quality to rural
consumers. Day by day, though national brands are getting popular,
local brands are also playing a significant role in rural areas. This
may be due to illiteracy, ignorance and low purchasing power of
rural consumers. It has been observed that there is greater
dissatisfaction among the rural consumers with regard to selling of
low quality duplicate brands, particularly soaps, creams, clothes,
etc. whose prices are often half of those of national brands, but sold
at prices on par or sightlines than the prices of national brands.
Local brands are becoming popular In rural markets in spite of their
lower quality.
81. Packaging:
As far as packaging is concerned, as a general rule, smaller
packages are more popular in the rural areas. At present, all
essential products are not available in villages in smaller packaging.
The lower income group consumers are not able to purchase large
and medium size packaged goods. It is also found that the labeling
on the package is not in the local language. This is a major
constraint to rural consumers understanding the product
characteristics.
82. The National Co-operative Development Corporation has been
promoting and financing a wide range of economic activities in rural
areas through co-operatives. The Co-operative is a unique
institution in the country catering to the development of the rural
economy and agriculture sector through co-operative. There is no
other institution in the country which is exclusively for meeting the
requirement of co-operatives.
NCDC has been playing special attention to weaker sections co-
operatives in various part of the country. The promotional and
development role of NCDC had lead to continuous diversification
and expansion of co-operative programs under its preview.
83. When producers of agricultural commodities or any other
product form a society with an objective of carrying out
marketing of their produce, such society is called as
cooperative marketing society. The need for co-
operative marketing arose due to many defects
observed and experienced in the private and open
marketing system.
84. Several malpractices prevail in the marketing of agricultural produce. For
example, arbitrary deductions from the produce, manipulation of weights
and measures and cheating the farmers, collusion between the broker and
the buyer while fixing the prices, delay in payment of amounts due to
farmers, etc.
There exists a chain of intermediaries between the producer and the final
consumer.They include village merchant, itinerant trader, wholesaler,
commission agent, pre harvest contractor and retailer. They take their own
margins for the services, they render. But these margins are generally ex-
orbitant, making the commodities costly for the consumers and reducing the
producer's share in the consumer's price. A cooperative marketing society
can eliminate some or all of the intermediaries and can reach to the
consumers and establish direct trade relations with them.
85. Under the system of co-operative marketing whole
responsibility of marketing is taken up by the farmers
themselves, organized on co-operative basis. The area
of operation of marketing society is usually fixed with
reference to local conditions - area based or commodity
based. The commodity-based societies related to
grapes, oranges, banana, pomegranate, etc. have wider
jurisdiction covering the major areas growing each crop.
86. There are some services such as transport, storage, financing,
grading, packing, loading/unloading which are carried out by some
private functionaries who charge high rates for these services. A co-
operative marketing society performs these services efficiently and
at cheaper rates.
A co-operative marketing society provides market finance to
farmers and ensures better returns to their produce. Besides
marketing society can act as an agent of credit co-operative society
and help to recover loans advanced by credit societies.
87. The Government of India has designed and implemented several
issue based programmes aimed at rural development. The
developmental activities under the Ministry of Rural Development
cover infrastructure development and reforms in the agricultural
sector, the non-farm sector and the social sector Within these
sectors, issues related to production, productivity, skills, access to
institutional credit, marketing of produce or services, education,
health, social restructuring, empowerment of women and other
socially deprived section, etc. have been the areas of focus for the
policies.
88. Under the Pradhan Mantri Gramodaya Yojana (Prime Minsiter's
Village Development Programme) (PGGY), announced in the 2001-
02 budget, at fund of Rs 5,000 crore was earmarked for
infrastructural development in village, primarily village roads for
which 50 per cent of the fund was reserved. The remainder was
planned for rural housing, drinking water and sanitation. The Central
Government has achieved considerable success in meeting the
drinking water needs of 91 per cent of rural habitations, with an
investment of more than Rs 40,000 crore on the rural drinking water
supply
89. Employment Opportunities
With the objective of promoting self-employment among the educated
unemployed rural youth, government programmes such as the Pradhan
Mantri Rojgar Yojna (PMRY) and the Intergrated Rural Development Project,
were devloped. Thee programmes, implemented at the grass-roots level
under the system of Panchayati Raj Institution, aim to provide skill-based
training and link access to bank credit (subsidized).
Sampoorna Grameen Rojgar Yojana :
The Employment Assurance Scheme and the Jawahar Gram Samridhi
Yojana (JGSY) are two schemes under the programme. The EAS is meant to
create additional employment opportunities during periods of acute shortage
of wage employment through manual world for the rural poor living below the
poverty line. The JGSY aims at the creation of need-based rural
infrastructure at the village level.
90. Rural Housing :
The 1991 Census revealed the presence of 1.4 crore household
without shelter or residing in unserviceable kuccha house. The
Central Government announced a National Housing and Habitat
Policy in 1998 aiming to provide 'Housing for All' by facilitating the
construction of 20 lakh additional housing units (13 lakh in rural
areas and 7 lakh in urban areas) annually. With an emphasis on
extending benefits to the poor and the deprived, the Government is
committed to ending all shelterlessness by the end of the Tenth
Plan period.
91. Swaranjayanti Gram Swarozgar Yojana:
Swarnjayanti Gram Swarozgar Yojana (SGSY), an ongoing
programme for the self-employment of the rural poor, has been in
effect since 1999 after the restructuring of the erstwhile Intergrated
Rural Development Programme (IRDP) and allied programmes like
Training of Rural Youth for Self Employment (TRYSEM)
Development of Women and Children in Rural Area (DWCRA),
Supply of Toolkits in Rural Areas (SITRA) and ganga Kalyan Yojana
(GKY), besides the Million Wells Scheme (MWS) With the launching
of the SGSY the earlier programmes are no longer in operation.
92. NABARD has decided to extend 100 per cent refinance facility to
banks for financing Farmers Service Centres (FSC) set up in
collaboration with Mahindra Shubhlabh Services Ltd. (MSSL) for
providing various extension services to farmers, including supply of
agri-inputs. FSC is internded to benefit farmers by way of higher
yields and productivity through private-sector participation in
technology transfer and extension services.
93. Land reforms aim at redistributing ownership holding from the
viewpoint of social justice and reorganizing operational holdings as
a method to optimize land utilization.
The reforms measures were as follows :
Distribute land among the landless by taking procession of surplus
land from large landholders.
Provide security to sharecroppers or tenants on tenure and
ownership
rights by regulating rent payable by them to landlords.
Protect the interests of tribals in landownership against
encroachment by non-tribals.
94. The land was described as an economic unit and an economic
holding was defined as one that could provide a reasonable
standard of living to the cultivator and give full employment for a
family. The land ceiling stated that no individual farmer should own
more than three times the economic holding. Factors like soil
fertility, irrigation, methods of cultivation and the nature of crops
were considered when fixing the ceiling. Under this, 4 ha. or 10
acres of the best land and 7.5 acres or 18 acres of average land
were fixed as the ceiling, considering that an annual net income of
Rs. 15,000 would accrue to a family at 1970 prices.
Editor's Notes
What Does Market Penetration Mean?A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service. The amount of sales or adoption can be an individual company's sale or industry while the theoretical market can be the total population or an estimate of total potential consumers for the product.
NCAER has done pioneering research work in areas of applied economics with an emphasis on policy analysis and application of modern quantitative techniques to development issues, regional development and planning, household income, consumption, savings /investment and energy.