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Opportunities in Rural Marketing

Introduction:

The rural market is an area of darkness to Indian entrepreneur's .an area, which is vast in size but amorphous in detail.
An area which it self off from the nations economy because its own is not fully monetized. And yet, the rural market
represents the large potential market in the country.

India is a country where the majority population, almost 70%, lives in villages. There are 627000 villages in the country
spread across its length and breadth. Their primary activates are agriculture, animal husbandry, fisheries and forestry
.the village people are poorer than the city folk as the village contribute less 50% to total country income however now
the situation is gradually is changing for the better. There are 25 official languages and some 400 dialects spoken in the
country. Most old religions have their adherents here. In the first half of the twentieth century, village people were using
neem or babul tree twitch for cleaning their teeth. Today, they are using tooth powder or toothpaste instead of groundnut
the children's are asking for chocolate candies. Face cream are lotion are replaced basal (chickpea flour) has face
cleanser.

Appreciating the size and business potential of the rural market, major companies including, HUL, P&G have make
special strategy for targeting rural markets.

IMPORTANCE OF THE RURAL MARKET

The rural market in made of two brad areas

a) The market for consumptions goods both consumer convenient and shopping and durable goods.
b) The market for agriculture input and other investments goods such as tractors etc.

FACTORS OF RURAL MARKET

* Size of the rural market


* Rural market in value terms
* Rural target populations
* The market for agricultural inputs

Name of the input Percentage


Fertilizers 10
Pesticides 12
Area under high yielding variety 11
Tractors 15
Pumps and tub wells 11

* Source of rural purchasing capacity

Opportunities in rural markets

Rural marketing provides opportunities for marketers

* untapped potential: it offers a great chance for different branded goods as well as services for large number of
customers.

It is estimated by HLL that out of 5 lakh villages in India, only lakh has been taped so far, which goes on to indicate the
market potentials of the rural market.

* Market size and potential

The size of India s rural market is stated as 12.2 % of the percentage of the old population this means 12.2% of the
worlds consumers leave in rural India.
In India, rural household farm about 72% of total household constitutes a huge market by any standard.

Current consumption

Consumer durables 95-96 2001-2002 2009-10


Scooters 33.1 39.4 39.9
Motor cycles 47.3 39.8 48.3
Mopeds 52.7 58.2 57.7
Cars/jeeps 2.1 8.0 10.9
Auto motives 37.9 36.0 37.9
Television 54.0 54.5 44.2

Increasing income

Different programs undertaken have helped to improve the economic the economic situation of the rural areas. The
increase in income is seen in both absolute values as well as in the increase in average number of days of occupation in
a year.

Accessibility markets

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

Competition in urban areas

The urban market is getting saturated and thus is enable to provide the much needed market to many companies and in
search of greener pastures many of these companies are now targeting the rural market.

Conclusion:

Marketers will have to understand the rural customers before they can make inroads in to rural makers.

The size of the rural market is past expanding. Arvind mills decision rural market with ruff and tuff brand has met with
astounding success. In the first two-month demand crossed a million pieces has against a production capacity of 250000
kites. Britannia to venture into basic items such as biscuits, with brand called tiger. This brand is statically gaining market
share also creating new markets.

L G has ventured into the rural market, selling block and white and TV with great success and hopes to further penetrate
the market in the near future with colour television. ITC's e-chaupal initiative to equip the rural farmers, HLL's project
shakti to empower rural human consumers through income generation project are some the examples, which have
opened new vistas in rural marketing.

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