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According to the census of India, villages with
clear surveyed boundaries not having a
municipality, corporation or board, with
density of population not more than 400sq.km
and at least 75 per cent of the male working
population engaged in agriculture and allied
activities would qualify as rural. So, from the
above stated conditions, there are 638,000
villages in the country. Of these, only 0.5 cent
has a population above 10,000 and 2 per cent
have population between 5,000 and 10,000.
Around 50 per cent has a population less than
200.
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mural marketing determines the carrying out of
business activities bringing in the flow of goods
from urban sectors to the rural regions of the
country as well as the marketing of various
products manufactured by the non-agricultural
workers from rural to urban areas.
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—arket segmentation

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± A brand is ´name, term, sign, symbol, or design, or a
combination of them, intended to a a the goods
and services of one seller or group of sellers and to
aa them from those of competition.µ
Importance of Brands to Consumers
± Identification of the source of the product

± Assignment of responsibility to product maker

± misk reducer

± Search cost reducer

± Promise, bond, or pact with product maker

± Symbolic device

± Signal of quality
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± Separate your brand from your competitors in a
unique way
± melevant and motivating to your customers
± Prospects and channels-it gives you value and make
you special.
± Enhance your perceived value, there by supporting
premium pricing, sheltering you from low price
competition.
± Contributing to share holder value. (Companies like
—organ Stanley look to evidence of brand strength in
setting buy ratings.)
± Provide resilience in times of negative press.
± Enable you to launch new products more quickly and
cost effectively.
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± In rural India, the branding rules are distinctly
different from urban markets. Not only does the
cultural landscape differ, the factors that
influence purchasing decisions differ too. Price
and value for money are high on their list.
± mural branding calls for a greater component of
local media and less of the mass media. Since
these markets have specialized forums of their
own like temple festivals, melas, cinema halls,
these can be leveraged to promote brands. Direct
—arketing and events like road shows, film
shows, melas, and street theatre can also be used
to promote brands.
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± Marge and Scattered market
± —ajor income from agriculture

± Mow standard of living

± Traditional Outlook

± Diverse socio-economic backwardness

± Infrastructure Facilities
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± The Indian rural market has a huge demand
base and offers great opportunities to marketers.
Two-thirds of Indian consumers live in rural
areas and almost half of the national income is
generated here. The reasons for heading into the
rural areas are fairly clear.
± The rural market is zooming ahead at around 25
per cent annually. "The rural market is growing
faster than urban India now," says Venugopal
Dhoot, chairman of the ms 989 -crore (ms billion)
Videocon Appliances.
± "The urban market is a replacement and up
gradation market today," adds Samsung's
director, marketing, mavinder Zutshi.
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± nderdeveloped People and nderdeveloped
—arkets
± Mack of Proper Physical Communication
Facilities
± —edia for mural Communication
± —any Manguages and Dialects
± Dispersed —arket
± Mow Per Capita Income
± Mow Mevels of Miteracy
± Prevalence of spurious brands and seasonal
demand
± Different way of thinking
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FOm A·S: ,
± MG Electronics defines all cities and towns other
than the seven metros cities as rural and semi-
urban market. To tap these unexplored country
markets, MG has set up 45 area offices and 59
rural/remote area offices.
± To service remote village, stockists use auto-
rickshaws, bullock-carts and even boats in the
backwaters of Kerela.
± 2MM started Project Shakti in partnership with
Self 2elp groups of rural women.
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± Godrej introduced three brands of Cinthol, Fair
Glow and Godrej in 50-gm packs, priced at ms 4-5
meant specifically for —adhya Pradesh, Bihar
and ttar Pradesh ² the so-called `Bimaru·
States
± 2industan Mever, among the first —NCs to
realise the potential of India·s rural market, has
launched a variant of its largest selling soap
brand, Mifebuoy at ms 2 for 50 gm
± Coca-Cola has addressed the affordability issue
by introducing the returnable 200-ml glass bottle
priced at ms 5
$$ 
± MG Electronics developed a customized TV for the
rural market and named it Sampoorna. It was a
runway hit selling 100,000 sets in the very first
year.
± Coca-Cola provides low-cost ice-boxes ² a tin box
for new outlets and thermocol box for seasonal
outlets.
± The customers of Godrej Agrovet product
(muchira, Bypro) started purchasing the product
of 2andrix company as the pallets smells like
¶butter of goat· which makes them familiar to the
2andrix company product.
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For generating awareness, events like fairs and
festivals, 2aats, etc., are used as occasions for brand
communication. Cinema vans, shop-fronts, walls and
wells are other media vehicles that have been utilized
to increase brand and pack visibility.
± Mux and Mifebuoy and fabric wash items like min and
Wheel started putting stickers on the hand pumps,
walls of the wells, putting on tin plates on all the tree,
surrounding the pond which act as the innovative
media.
± 2M used local fairs and festivals
± Coca-Cola used Doordarshan TV
± MG Electronics uses vans and road shows to reach
rural customers
± Philips India uses wall writing and radio advertising
to drive its growth in rural areas.
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± 2enko failed in —aharashtra. Why?
It sound like "2ey Nako" which means No, giving the brand
a negative connotation in —arathi.
± Dabur's health tooth powder containing Tulsi failed. Why?
Tooth powder meant spitting the Tulsi out which was
considered sacrilege in the rural areas.
± Although black is not a lively color and has a lot of negative
connotation to it, it worked for "Chik" shampoo. 2ow?
Perception that if the shampoo is black then the hair would
be pitch black too.
± Dabur traditionally paints the walls of the roads leading to
the temples and mosques in the villages. Why?
The crowd aggregates during all the major festivals, and
the huge traffic to enter the temple and mosque provides
the marketer the ideal opportunity to tap into his mind
space making use of the wall space available. Dabur did
just that
$$ 
Indian rural market is undoubtedly complex but
there are some simple truths that we need to
accept. The rural consumers are very value-
conscious. They may or may not have purchasing
power, but they can make a difference to the
company's growth if concentrated. The growing
power of the rural consumer is an opportunity for
the companies to flock to the rural markets. The
basic underline for preference for brands in rural
areas is the functional and not psychological
benefit. With the technological innovations,
infrastructure development and enrichment of
human capital in rural areas the companies can
earn huge profits.
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