1. The future of rural marketing

2. The future of rural marketing
Introduction
India is an agro-based economy and the growth of
most of the other sectors of economy is driven by rural
demand.
Urban market is reaching towards the saturation
point, thus bringing in and urgent need to focus on
rural development.
Moreover, more than 70% of India's population lives in
villages and constitutions a big market for industry
because of increasing disposal incomes and awareness
level.

3. In comparison to just 5,161 towns in India there are
6, 38,365 villages in India. This in itself is an indicator
where the real India resides. Companies are realizing
slowly but surely that the key to gain true market
leadership lies in tapping the rural potential.
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.

4. MARKET GROWTH:
• Market is growing at a rate of 3-4% per annum.
• In 2001-02, LIC sold 55% of its policies in rural India.
• Of two million BSNL mobile connections, 50% are in small
towns / villages.
• Of the 6.0 lakh villages, 5.22 lakh have a Village Public Telephone
(VPT).
• 41 million Kisan Credit Cards have been issued (against 22 million
credit-plus-debitc ards in urban), with cumulative credit of Rs. 977
billion resulting in tremendous Liquidity
• Of the 20 million Rediff mail sign-ups, 60% are from small towns.
• 42 million rural households (HHs) are availing banking services in
comparison to 27million urban HHs.
• Investment in formal savings instruments is 6.6 million HHs in rural
and 6.7 million HHs in urban.

5. “ A farmer went to near by small town to book a
rent cab to attend an auspicious occasion near
by village ,finding no cab available for rent he
instantly purchased Brand new Mahindra
Bolero”

6. With 742 million people,
rural India is the largest
potential market in the
world estimated 1,25,000
crores
FMCG – 53%
Rs.65,000
crores
Agri-inputs
Rs.45,000
crores
2/4 wheelers
Rs.8,000
crores
Consumer
Durables
Rs.5,000 crores
The increase in procurement (minimum support price) MSP has contributed to a rise in
rural demand. Government schemes like NREGS [National Rural Employment Guarantee
Scheme, which guarantees 100 days of employment to one member of every rural
household] reduced rural underemployment and raised wages. Also, farmers benefited
from loan waivers [introduced in the last Union Budget]. The increase in rural purchasing
power is reflected in rural growth across a number of categories.

7. Focused marketing strategies
• To succeed in rural market, companies will
need to adapt the 4Ps of marketing and the
4As in their strategy – awareness, access,
availability and affordability.

8. Focused Marketing Strategies
Product –
Developing relevant products to meet the specific
needs of rural consumers will exercise the minds
of marketers.
For eg. We know that voltage fluctuation is a
major problem in our villages, because of which
bulbs last but a few days. Companies will put
their R & D teams to develop filaments that can
withstand violent fluctuations, thereby extending
the life of the bulb.

9. Focused Marketing Strategies
• Price
As rural incomes continue to rise in the coming
years, we may see the share of low unit packs
coming down somewhat and economy packs
gaining share. Also as the reach of media and
awareness level improve, we are likely to see
companies shift their focus from trade to
consumers.

10. Focused Marketing Strategies
• Distribution / Place
Challenge of reach will be addressed through
innovation. Project Shakti of HUL is one such
successful example. Nehru Yuva Kendra
‘volunteers’ model through haats being piloted
by MART for Colgate, is another such new model.
Amway is already selling bio-fertilizers in rural
India, through its famous multi-layer distribution
model.

11. Proliferation of large format rural
retail stores
 TATA/Rallis Kisan Kendras
 Escorts rural stores
 DSCL Haryali stores
 M & M Shubh Labh stores
 Warnabazaar, Maharashtra
 ITC Choupal Sagar

12. Focused Marketing Strategies
• Communication
Indian advertising industry has to be firmly
grounded in rural perception, values and
traditions. It has to drown itself in local colors,
customs and modes of communication, to make
itself relevant to rural society. It has to gain the
trust of masses, by undercutting excessive
dependency on western advertising.

13. BIJLI
SAMPOORNA
MAHASANGR
AM
SAPNO KA
GHAR
Launched New Refrigrtor for Rural and Semi urban market priced at
10,000
Range of TV’s with Devnagri script on display Priced at 12,000
Focusing on rural town with population less than 5000 with special
economy model of color TV priced at 8000
Road Show in semi urban & Rural with mid priced consumer durables
to provide Touch & Feel experience

14. SHAKTI
Operation
JAGRUTI
Parachute
Rural initiative targeted villages population less than 2000, providing
income generating opportunity through shakti vani
ASHA
OPERATION Jagruti, a village consumer contact campaign was
launched with the objective of massive rural penetration
targeted at the non-users and infrequent users of dentifrices.
Anti Loose Campaign and Temper proof Packaging in Smaller Variants
Low cost snacks & Beverages . Especially for girls aged between 12-
16.

15. E- Choupal
Chick
Chota Coke
Great Value
Product
A rural shopping mall where farmers can sell their commodities and
everything including cosmetics, garments, electronics, appliances and
even tractors. It serves as an agri-sourcing centers, shopping centers,
and facilitation centersa
Launched Coca Cola in Rs 5 with tag line “Thand Matlab Coca Cola”
US-based direct seller Amway Corporation, is looking to reverse its
fortune with the launch of a range of low-priced fast moving
consumer goods (FMCG) products aimed at rural tier II & III cities.
CavinKare launched an aggressivecampaign to educate people on how
to use shampoo through live ‘touch and feel’ in Rural Folks

16. Har Gaon Har
angan
Panchayat
scheme
Ghar Ghar ke
pehchan
Mera sapna
meri maruti
After securing its foothold in urban and semi-urban markets, it has
launched a pan-India campaign — Mera Sapna Meri Maruti — to tap
the vast potential of the rural market.
The promotional scheme ‘Ghar Ghar ki Pehchaan’ is aimed at
taking highly accomplished product like Santro into the depth of rural
India.
runs a panchayat scheme wherein it gives Rs 2,000 as incentive on
every buy of a Spark
Har Gaon Har Angan seeks to build an ongoing relationship with
millions of households in rural India through a network of 500 rural
sales executives

17. Arogya
parivar
Hume Jitna
Hain
Elvista
initiative to build a sustainable, profitable business that improves
access to healthcare among the underserved millions in rural India by
creating awareness, enhancing local availability, and designing
appealing and affordable health solutions
Campaign run rural part of north india , in which rural masses and
key opinion leader are educated and aware about epilepsy
Elder has launched its new division to reach deep pocket of the rural
hinterland with separate team of sales force
ASTRA Advance sales training for retail ascendance in rural areas

18. Samridhi
TATA ACE
MAGIC
Gold Plus
Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes
having 600 Mahindra Samriddhi centres and five million farmers
under its ambit by 2020.
Titan Industries’ GoldPlus is designed for the jewellery preferences of
the semi-urban and rural Indian customer.
TATA’s Rural Transport Vehicle for Rural and Semi Urban Landscape

19. Utsav
Miss Palampur
campaign
Met Suvidha
Kamdhenu
campaign
A Range of Colour solution intended for the Rural Mass & Market
Cadbury has rolled out campaign “ Miss Palanpur “ eyeing to captured
Rural Mass Market
Met Suvidha (Rural) is a participating flexible Endowment Plan that
combines savings and security to Rural Masses
The Kamdhenu campaign, a unique high-impact marketing and sales
campaign through cattle loans to farmers

20. Market research
• As the rural market develops in the next few years,
more qualitative studies will be needed to understand
the rural consumer, his lifestyle, aspirations and
motivations.
• PRA is one of the tool used in the social sector which
involves rural people in the research process and they
enjoy sharing and analyzing about themselves.
• Quantitative studies on demand estimation, market
shares, customer satisfaction will need to be
undertaken in the rural market as well, as demand
grows and rural India becomes more attractive for
marketers.

23. Consumer finance
• The evolution of urban markets in the 90s was fueled
by the entry of consumer finance products as an
outcome of the financial sector reforms in the Indian
economy.
• Banks like ICICI and HDFC and others moving
aggressively into the rural markets and durable
companies like LG, Philips and others extending their
distribution, it can be expected that the urban boom of
90s should be repeated in the rural market during the
current decade.

25. Rural vertical
• Companies will need to equip themselves, if they want to
succeed in the dynamic rural market . To begin with, top
management commitment would be absolutely essential.
• The CEO would need to articulate a strong commitment to
rural marketing, only then will the marketing team give its
focused attention and sustained support to this growing
market segment.
• HUL has already created a separate rural vertical with a
team of RSMs, ASMs, SOs and RSPs committed exclusively
to servicing the rural market. Rural has been given separate
sales targets and the company is in the process of allocating
separate sales promotion and advertising budgets for this
market.

26. Retail and IT models
• India boast of a huge unorganized rural
retailing system through the 4200 haats.
However organized rural retailing has not
taken deep roots in rural India .
• IT and connectivity impact the way business is
done. Today with STD facility, the retailer can
dial the town distributor instantly and fresh
stocks would reach him in just a couple of
days, because of better road connectivity.

27. Benefits of IT Driven business strategy
• Ease of access
• Up-to-date content
• Layout, design, consistent themes
• Easy navigation
• Higher interactivity
• Access through multiple media
• Higher use of non-textual information
• Multiple languages
• Lower transaction cost.

28. Rural managers
• As the rural market is already bigger than its
urban counterpart, there is need to develop a
good understanding about it among corporate
managers. For this to happen rural marketing
should be taught as a subject in every
business school.

29. Glamorize rural marketing
• Rural is considered as unglamorous. Industry
seminars on these subjects also evoke a
similar response. This must change as the
rural market in size is bigger than any of the
other markets mentioned here.
• Industries associations (CII,FICCI,ASSOCHAM)
government agencies and academic
institutions should take upon themselves to
give due importance to rural marketing.

30. Public private partnership
 In the coming years, it is hoped Companies
would join hands with the government in self-
interest to increase the size of the pie, by
creating economic activity in villages through
micro-enterprises and mainstream these
efforts, by linking them with large industry.

31. In 2009, Karnataka planned to privatize the
development of rural roads in the state. The state has
around 1,50,000 km of rural roads that cannot be
developed with only government funds. Hence, the state
planned to develop these roads through public-private
partnership. The Secretary, Public Works, Ports & Inland
Water Transport, Government of Karnataka, stated that
government is keen towards designing a new policy for
rural roads on the lines of Karnataka Road Fund Policy,
Karnataka Tolling Policy and Karnataka Road Sector
Policy 2009.

32. e-rural marketing

33. Conclusion
• Last but not the least , with the fast improving
rural infrastructure and higher exposure to
city life the sharp divide between urban and
rural will get blurred. But this process has only
just began.