Prof: Gangadhar G Hugar

IBS Mumbai.

Today's Flow
Why Rural Markets?
How is Rural Customer Different? Peculiarities and Problems in Rural Marketing Strategies for Rural Marketing

Why Rural Markets?

3/4th of the population in India is rural. Nearly 1/3rd of the National Income is generated by rural areas. Rising Prosperity in Rural Areas

A study by the Chennai-based Francis Kanoi Marketing

Planning Services says that the rural market for FMCG is worth $14.4 billion, far ahead of the market for tractors and agri-inputs which is estimated at $10 billion.

Rural markets accounts for about 70% of toilet- soap users.

Rural India also accounts for sales of $1.7 billion for cars, scooters

and bikes and over one billion dollars of durables.

Contd.
In total, that represents a market worth a whopping

$27 billion.
The rural market accounts for almost half the total

market for TV sets, fans, pressure cookers, bicycles, washing soaps, blades, tea, salt and toothpowders.
The rural market for FMCG products is growing faster

than the urban counterpart.

How is Rural Customer Different?

Education Profile
Low Income Levels Occupation

Reference Groups
Media Habits The Culture

The Attitude

Peculiarities and Problems in Rural Marketing

Lack of developed markets Lack of proper infrastructure Large and scattered market Major income from agriculture

Low living standards

Traditional outlook Socio-economic backwardness

Many languages and dialects

Contd.
Media for Rural Communication
Low per capita income Low levels of literacy

Seasonal demand
Dependence of companies on retailers Problems in market research

Before Moving Ahead.

HLL_Rural_Marketing ITC_eChoupal

Strategies for Rural Marketing

Small Unit/Size Packaging Simple and easily understandable product literature New product designs Sturdy products Proper selection of colors Utility oriented products Mnemonics and Brand name Logo Basic Packaging

Contd.
Reusable packaging

Innovative and extensive distribution strategies

Developmental marketing

Appointing opinion leaders

Product demonstrations Taking care of price sensitivity

Relevant promotional strategies

Right recruitment and training practices Strategy against the me too products/brands

Whats the Bottom-line?

We need to move from the 4Ps to the 4As

framework for the rural marketing. Affordability Availability Acceptability Awareness

One can clearly understand that the spirit behind marketing in rural and urban areas is the same. It is nothing but mapping the minds of people, their desires, needs, expectations and tuning to their psychology. However, due to different environmental factors and psychographics, marketing strategies for different products will be different in urban and rural areas.

MERRY CHRISTMAS