Group members :

Mareena 1

Sagar 2

Mrunal 14

Surekha 16

Khushal 53
Introduction
From the strict marketing point of view, the
market structure in India is dichotomous
having rural and urban markets.  But many
do not concur with this view as they contend
that consumer everywhere is a consumer and
hence their needs, aspirations, beliefs and
attitudes will also be the same.  The fact,
however, remains that there are certain
unique characteristic features which call for
separate marketing strategies to be
distinctively developed to suit the rural and
urban market behaviour. 
Secondly, competition is becoming tough
in urban markets compelling many firms
to incur heavy costs in promotional
expenditure.  Thirdly, the awareness level
of urban consumers is high and hence
product features have to be changed
often.  Needless to say this process needs
a huge investment which will have a
negative impact on profitability.  Thus,
except perhaps for easy reach the urban
markets have become as oasis.
Significance of Rural Markets
The rural markets are estimated to be
growing fastly compared to the urban
markets.  The potentiality of rural markets
is said to be like a 'woken up sleeping
giant'.  These facts are substantiated in a
study of market growth conducted by
various researches. In recent years, rural
markets have acquired significance in
countries like China and India, as the
overall growth of the economy has resulted
into substantial increase in the purchasing
power of the rural communities.
 A number of factors
have been recognized as
responsible for the rural
market boom to come into
existence
1. Increase in population and hence
increase in demand.
2. A marked increase in the rural income
due to agrarian prosperity.
3. Standard of living is also increasing in
rural areas.
4. Large inflow of investment for rural
development programmes from
government and other sources.
5. Increased contact of rural people with
their urban counterparts due to
development of transport and wide
communication network.
What makes rural
markets attractive?
* 742 million people
* Estimated annual size of the rural market

- FMCG Rs. 65,000 Crores

- Durables Rs. 5,000 Crores
- Agri-inputs (incl. tractors) Rs. 45,000
Crores
- 2 / 4 wheelers Rs. 8,000 Crores
* In 2001-02, LIC sold 55 % of its policies
in rural India.
* Of two million BSNL mobile
connections, 50% in small towns/villages.
* Of the six lakh villages, 5.22 lakh have a
Village Public Telephone (VPT)
Problems related to rural marketing
Barter system
Underdeveloped people and market
Lack of proper physical communication
facilities
Inadequate media coverage for rural
communication
Many languages and dialects

Other influencing factors

The major weakness and challenges
Traditional mind not to react new minds
Agricultural income mostly invested in
gold ornaments and weddings.
 Low rural literature.
 Not persuading new thinking and
improved products.
 STRATEGIES
 Client and Location specific promotion

 Joint or co-operative
promotion
Bundling of inputs
Developmental marketing
 Media
 Unique Selling Propositions (USP)

 Extension Services
 Ethics in Business

Partnership for sustainability

 Selection of sales force

Extension
Eg. Parle-G
Adaptation
Small packs or sachets

Rural Product Development

The rural market is a fast growing one and
has a huge population with a great level of
disposable income. To encash this, products
have to be specifically developed to meet
the needs of rural markets. Sometimes,
existing products might have to be modified
to suit these markets too accordingly.
Example
Tata sumo first in white and then turned
into yellow, red and blue.
Innovation
LG’s CCTV named “Sampoorna”

Rural gatherings like temple festivals,

melas, cinema halls and so on can be used
as venues to promote brands. Direct
Marketing and events like road shows;
film shows, melas, street theatre can also
be used to promote brands.
Example
In 2002 – 2003, LIC sold 50 percent of its
policies in rural India by doing street plays
How do brands position themselves
in the Rural Market ?
Coca Cola Conquered Rural India

ICICI Prudential Life Insurance

3 A‟s of rural marketing- Coca Cola
 Affordability

 Acceptability

 Availability
Affordability:
The first “A‟ focuses on product pricing
Coca Cola launched a 200 ml bottle for
just Rs.5, a affordable amount on the
pockets of the rural audience.
Acceptability :
The advertisement with the tag line -
'Thanda Matlab Coca-Cola ' was targeted
at rural and semi-urban consumers. The
series of Amir Khan Ads on hill station
acting like a nepali and those in a Punjabi
„ Yaara da Tashan‟ were a great success
and an important aspect focusing on
acceptability. Except TV ads, CCI also
concentrated on 47,000 hatts (weekly
markets) and 25,000 melas ( fairs ) held
annually in various parts of the country.
Availability :
The third „A‟ focused on strengthening its
distribution network there. Rural India meant
reaching 6,27,000 villages spread over
32,87,263 square kms; it meant getting
distributors to travel 200 kms to reach five
shops.
Large distributors (Hubs) were appointed, and
they were supplied from the company's depot in
large towns. On their part, the hubs appointed
smaller distributors (Spokes) in adjoining areas.
The smaller distributors undertook fixed journey
plans on a weekly basis. The distributors also
hired rickshaws (cycle operated vans) that
travelled to villages daily.
 the traditional village..
where life stands still
An Unwise Saying: waiting……..
but…..
the winds of change approach..

sounding the drums of tomorrow, today!

wake up to new world…
start a new revolution….

In your lives
 change today…

for a better tomorrow

A Wise Saying:

Badli Zarooratein, Badle Khwaab

Badli Duniya, Badle Aap,
Brands just have to be visible in the right
place many brands are doing well without
much advertising support — Ghadi, a big
detergent brand in North India, is an
example.
 RECENT TRENDS IN RURAL
MARKETING

1) Online Rural Market (Internet, Nicnet)

2) Product differentiation

3) Use of technology
4) Think differently (need
based production)

5) Supply Chain
Management

6) Communicate in their
language
SALES PROMOTIONAL STRATEGIES
USED IN RURAL MARKET

1) Dabur ASTRA

2) Brooke Bond Lipton

India Ltd (BBLIL)

3) HLL's ‘Operation
Bharat’
4) Philips India Ltd:
'Philips Super
Shows’

5) ITC Mangaldeep
Agarbatti
The Promotion Media
1) Newspaper

2) Television

3) Radio

4) Cinema
Some forms of advertising used in rural
market

1) Outdoor
Advertisement

2) Farm to Farm / House

to House

3) Group Meeting

4) Opinion Leaders
1) The Melas

2) Haats

3) Audio Visual Van

Mela
Haat
Hoardings
Brands Modes of Transport
Brand Modes of Transport
CONCLUSION