Brief About Rural Market

8/9/2019 Brief About Rural Market

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Marketing strategies that worked for urban markets do not necessarily work for the rural ones. There are

7 differentiators identified in why the rural market is different

1. Intra communityinfluences are relatively more important than inter-community ones. Word-of-mouth

in close knit communities is more powerful.

2. Scarcity of media bandwidth. Rural individuals access to media channels is limited and in the case

of broadbandthe comparable upload and download speed may be slower. !nline shopping is seen as a

solution by many but will be dependent on broadband speed."1#

$. Slow to adopt brands.%low to give them up. Rural consumers will be slower to pick up trends or

brands but will remain loyal when accepted.

&. Expenses are year long; income is seasonal. Many rural areas rely on seasonal tourism peaks

when income will be high and to a lesser e'tent agricultural incomes from seasonal crops. This means

there will be more disposable income at certain times with rural businesses and employees.

(. Information hungry; but entertainment starved. )solation from entertainment centres has led to

companies tryingedutainmentto get their message across.

*. Higher receptivity to experience advertising.Retail outlets in rural areas have many demonstration

areas along with markets for tasting.

7. ommercially profitable; and socially acceptable. +rands with demonstrable local, rural,

environmental andor social credibility stand a better chance.

Rural Marketing meant different in $ different periods.

art1/before 10*3)t was a completely an unorgani4ed market,where 5baniyas and maha6ans dominated

the market.Rural marketing was another word for agricultural marketing because agricultural produces

like food grains and industrial like food grains and industrial like cotton,oil seeds,sugarcane etc occupied

primary attention and the supply chain activities of firm supplying agricultural inputs and of artisans in therural areas received secondary attention.

art 2/10* to 1003The greatest thing which happened in this period was green revolution which led to

farming involving scientific and technological methods and many poor villages became prosperous

business centers.8ith better irrigation facilities,soil testing,use of high yield variety

seeds,fertili4ers,pesticides and deployment of machines like power tillers,harvesters,threshers etc,the

output increased especially wheat and paddies.9ue to this marketing of agricultural inputs was also now

there a new potential market.:ow marketing of rural marketing meant 5marketing of agricultural inputs

and 5agricultural marketing.;gencies like ommission,?iri6an >ooperatie

%ocieties ;>! @abrics,)@@>!,! >ompany bloomed and government paid special attention to

promote these products.%ale of handicrafts,handloom te'tiles,soaps ,safety matches and crackersincreased on large scale in urban areas.

art $/after mid 1003%ince 100 ,)ndiaBs industrial sector had gained strength and maturity.)tBs

contribution to ?: increased substantially.There was metamorphosis of agricultural society to industrial

society.8ith support and development programmes of central and state governments,service

organi4ations and socially responsible business groups like Mafatlal,Tatas,+irla,?oenkas and others the

rural areas progressed socially and economically.
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The economic reforms further increased competition in the market,the rural market grew steadily for

household consumables and durables. ; few other companies known for their marketing orientation C

Aindustan Dever, hilip )ndia, ;sian aints, %inger and Darsen and Turbo have also taken great efforts in

this direction.

Hindustan !nilever"H!#$started successful rural marketing pro6ects like %&ro'ect Sha(ti)and

%*peration +harat) in )ndia. Aindustan Enilever began the first home to home operation in rural areas in

personal products in 100F which was known as 5!peration +harat. +y 1000 5+harat !peration covered

1$ million rural household. 9uring the course of operation, there were AED vans which visited villages

across the country distributing sample packs comprising a low unit price pack each of shampoo, talcum

powder ,toothpaste and skin cream priced at 1(rs.This was to create awareness of the companyBs

product categories and of the affordability of the product.

oca olaalso e'plored the market by introducing bottles at rs.(,backed with ;amir G-choupal was a result of this initiative.

Rural Marketing is growing at a far greater speed than its urban counterpart .Multinationals have reali4ed

the potential and are ready to tap rural markets .To name a few >olgate, Gveready batteries ,D?

Glectronics ,hillips ,+%:D, Dife )nsurance >orporation, +ritannia and Aero Aonda are trying to seep in

rural markets.

&roblems in ural ar(eting

1. ommunication/The literacy rate among rural consumers is very low there print media has very

little scope in the rural areas .)n )ndia there are 1F languages which are recogni4ed,these

languages and many dialects are spoken in rural )ndia. Gnglish and Aindi are not understood bymany people. 9ue to this rural consumers do not get e'posure to new products.

2. ,ransportation3 The transportation infrastructure is e'tremely poor in rural )ndia.)n )ndia there

are si' lakh villages. ;lmost ( per cent of them are not connected by road also.)ndia has second

largest railway system in the world,many parts in )ndia are not connected through railways.

$. 0vailability of appropriate media/The radio network in theory covers 0 per cent,but people

who actually listen is less.T.= is not available in every house in rural areas.Therefore

opportunities are very low in rural areas.

&. Warehousing/There are many agricultural products which are produced in a particular seoson

but is demanded throughout. 9ue to lack of adeHuate and scientific storage facilities in rural

areas, stocks are being maintained in towns only.

In India, rural markets account for 70% of the entire population in the country (833

million/1.21 illion per 2011 !ensus". #he rural se$ment of the Indian economy is

$roin$ at a pace of 8&10% per annum and e'pected to add ne consumption of )*

+0100 illion o-er the period 2012&2017 to the current ase of )* 20&20 illion.

#he leadin$ opportunity sectors and $roth indicators are listed elo.


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Automobiles

ural India accounts for almost 3% of automoile industry sales.

Fast Moving Consumer Goods (FMCG)

i$her disposale income in the hands of rural households, alon$ ith massi-e

promotions y the market players, ill take the rural !4 market from 587,+00crore (46 16n/)* 1.6n" to a market sie of o-er 5109,300 crore (46 1.26n/)*

1.+6n" y the end of 2012.

Retail

:r$anied retail in the country currently stands at aout )* 30 illion or 9&7% of

total retailin$. #he total retail market is pro;ected to touch )* 1,20 illion y

2020.

Healthcare

India

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Brief About Rural Market