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.

1. Rural Marketing of
FMCG’s By NISHANTH H

2. Rural Marketing of FMCG’s

3. FMCG
 Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products
that are sold quickly and at relatively low cost
Characteristics:
Customer Perspective
Frequent
Purchase
Low
Involvemen
t
Low Price
Short
Shelf life

4.  Marketer’s Angle:
High Volume
Low
Contribution
Margin
Extensive
Distribution
Network
High Stock
Turnover

5. INDIAN FMCG COMPANIES

6. INDIAN FMCG INDUSTRY
Fourth Largest in the Indian Economy
The market size of FMCG in India is estimated to grow from US$ 30 billion in
2011 to US$ 74 billion in 2018.
Food products is the leading segment, accounting for 43 per cent of the
overall market.
The most common in the list are toilet soaps, detergents, shampoos,
toothpaste, shaving products, shoe polish, packaged foodstuff, and household
accessories and extends to certain electronic goods.

7.  FACT
According to the study conducted by AC Nielsen, 62 of
the top 100 brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own
these 62 brands, and 27 of these are owned by
Hindustan UniLever.

8. TOP TEN TOWNS SPENDING ON FMCG
PRODUCTS

9. CHARACTERISTICS OF INDIAN FMCG SECTOR
Products with quick turnover and relatively low cost
Absolute profit is relatively small
High Demand
Profit driven sales volume

10. SUCCESS OF FMCG
High Sales
Good
Marketing
Strategy
High
Profit

11. CHALLENGES IN THE FMCG INDUSTRY
Transportation Problem: Transportation infrastructure is quite poor in rural
India. Nearly 80 percentages of villages in the country are not connected by well
constructed roads.
Warehousing: In the rural areas, there are no facilities for public as well as
private warehousing. Marketers face problem of storage of their goods.
Packaging: It is the first important step of product processing. If the
packaging cost is high, it will increase the total cost of products
Media Problems: Media have lots of problems in rural areas. Television is a
good medium to communicate message to the rural people
Seasonal Marketing: The main problem of rural marketing is seasonal demand
in rural areas, because 75% of rural income is also seasonal.

12.  Low Per Capita Income: Per capita income is lower in rural areas compared
to those in urban areas.
Low Level of Literacy Rate: The literacy rate is low in rural areas compared to
urban areas. This again leads to the problem of communication for promotion
purpose.
Career in Rural Market: While rural marketing offers a challenging career, a rural
sales person should require certain qualifications and specialized talent to deal with
rural consumers..
Cultural Factors: Culture is a system of shared values, beliefs and perceptions
that influence the behavior of consumers

13.  Change in Rural Market
Villagers who used to crack
open the peanut, eat the nut
and throw away peanut are
now demanding for chocolate
candies that will melt in their
mouths, and not in their hands
Charcoal cleaned teeth are a
rare sight these days

14. EXAMPLES OF RURAL MARKETING
Philip developed a TV “Vardan” for rural markets. This TV works on the
voltage of 90-270 volts.
Philip developed a “Free Power Radio” this radio do not power or battery also
and runs on simple winding of level. Priced at attractive price of Rs. 995/-
LG launched Color TV called “Cineplus” and priced at Rs. 5,000.

15. THANK YOU