Rural India – a promising market place

8/7/2019 Rural India a promising market place

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Rural India a promising market place

Post reforms many mncs arrived with international householdbrands.

Their Initially focus in u.m.as easy access Resulting saturation/intense competition Forcing search of new

markets /r.m.

A promising potential mkt with 742 mn r.c. many of whom nottasted modernity even with increasing incomes.

Consecutive 13 good monsoons ( ex-02&03),600% increasedoutlay by goi in rdp, 230% increased institutional agro credit 98-to 05 and issue of more than 40 mn kisan cards , together98000 cr sanction since 98 to 05 + recent loan waiver of morethan 60000 cr- improved rural economy.

Agro sector is improving with increased consumption of inputsso comfortable to consume hh products

Demographic data shows consuming hh ( rs 45000 to 215000income pa ) r equal in rural and urban and disposable surplus(buying power) income being higher in rural as basic needs r atnominal cost vs. urban hh spends almost 60-70% for food,shelter, primary education etc


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Already major fmcg, fmcd firms 50% more growth from r.m.and others r putting efforts to overcome difficulties due togrowth potential

Some impressive facts more than 42000 haats, lic policymore than 50% penetration, bsnl phones more than 50%,inrural, more than 5 lakh villages connected, internet penetration,technology penetration, kisan credit cards,

Some myths-

branded products r not consumed, national and regional brandsaccount more than 80% in r.m. Not cheap but value for moneyNot homogenous but heterogeneous

Definition of r mkts and r mktg by corporate

R mkts- population , density, governance, occupation, infra

R mktg -a function that manges all activities involved inassessing, stimulating, and converting the purchasing power ofrural consumers in to effective demand for specific productsand services and moving these products and services to thepeople in rural areas to create satisfaction and better standardof living and thereby achieving organizational goals.

Evolutionary and not revolutionary mktg process


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Understanding r. c-

Heterogeneity calls for region specific approaches-progressivestates vs. less. more educated vs. less etc, buying decisions athh,not individual levels. Community decisions, strong castsystems etc

New influencers- traditional o.l.+ ict due to increasededucation hul and itc initiatives

Products- rural cooking on ground so 2 sided handles of

pressure cookers, solar cookers, voltage fluctuation so built instabilizers , detergents to deal with untreated water, no pipedwater so hand operated machines, packaging of salt, sachets-value for money

Rural distribution- traditional fmcg channels new channels,

role of hats, role of retailers. out of 6.4 lakh 1.00 r homes for50% of rural population. durables r purchased fro block h.q.with 20000 populations

Rural communications- face 2 face , touch, feel and talk ,demos at haats. Melas and mandis. AICDA model-(awareness ,interest, conviction- desire- action) suits , ad agencies need to

develop rural region specific campaigns with creative.


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Developing rural markets thru ict- itc, I shakti,dairy portals of amul, e-commerce initiatives.

Large format retail stores- varna , c-sagar

r.m. the way ahead- adapt 4 ps to 4 as, use ofnon-conventional medias- accessibility jodikhata hai thru deep distribution and easyavailability, affordability

R.m for socio economic development and forlong term growth of markets thru public privatepartnerships

NCAER projections decline trends of poor hhand increase in mig groups , involvement of bplthru innovations , micro finances

Agri retail chains boost to rural activity

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Rural India – a promising market place