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RURAL MARKETING: ANOPPORTUNITY TO BE

EXPLORED

Satya C. Mehta Pankaj R. Sorathia

Kosha D. Vasavada

(BHOLABHAI PATEL COLLEGE OF BUSINESSADMINISTRATION)

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ABSTRACT

The future lies with those companies who seethe poor as their customers

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MEANINGOF RURAL MARKETING

Village with clear surveyed boundaries not havinga municipality, corporation or board, with density ofpopulation not more than 400/sq.km and with atleast 75 per cent of the male working population

engaged in agriculture and allied activities wouldquality as rural.

Fact Figures: There are 6,38,000 villages in thecountry. Of these, only 0.5 per cent has a

population above 10,000 and 2 per cent havepopulation between 5,000 and 10,000. Around 50per cent has a population less than 200.

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DIFFERENCEBETWEEN AGRICULTURALMARKETING & RURAL MARKETING

Agricultural marketing - Marketing of producedgoods of the rural areas to the urban consumers orindustrial consumers.

Rural marketing - It involves deliveringmanufactured or processed inputs or services torural producers or consumers.

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FACTSTHATMAKES RURAL INDIAATTRACTIVE

650 million people

Estimated annual size of the rural market

FMCG Rs 65,000 Crore

Durables Rs 5,000 Crore

Agri-inputs (incl. tractors) Rs 45,000 Crore 2 / 4 wheeler vehicles Rs 8,000 Crore

Of two million BSNL mobile connections, 50% are insmall towns/villages. Of the six lakh villages, 5.22 lakhhave a Village Public Telephone (VPT)

42 million rural households are availing banking servicesin comparison to 27 million Urban households.

Investment in formal savings instruments: 6.6 millionhouseholds in rural and 6.7 million in urban India.

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THREATSIN RURAL MARKETING

Under Developed People

Tradition bound

Poor Infrastructure for Communication

Lack of Mass Media Many Languages & Dialects

Scattered Market

Low Level of Literacy Rate

Popularity of spurious brands & seasonal demand

Different way of Thinking

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MARKETING STRATEGIESTO CAPTURE RURALINDIA

Marketing Strategy to capture rural India dependsupon 4 As.

Availability

Affordability Acceptability

Awareness

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4 AS

Availability - It emphasizes on the availability ofthe goods and services to the end consumers.

Affordability - It focuses on product pricing. Acompany buys from farmers directly in the lastdays closing price and even pays them fortransportation. Goods are weighted electronicallyand hence farmers are no more cheated as they

used to be previously. Hence it is a win-winsituation both for farmers and the company.

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CONTD

Acceptability - It focuses on convincing thecustomer to buy the product.

Awareness - It focuses on making people aware ofthe product. It provides active servicing up to ruraloutlets. It provides them with wide range of productcategories. Moreover it has made entrepreneursout of farmers as they are managing most of the

work; it instills in them the sense of ownership.

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WAYSTO CAPTURE RURAL INDIA

By Communicating and Changing Qualityperception

By proper Communication in Regional Languages

By understanding Cultural & Social Values By providing what Customer wants

By promoting Products with Indian Celebrities

By Target Changing Perception

By Associating themselves with India By promoting Indian Sports Team

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CONTD

By Talking about a Normal Indian

By developing Rural Specific Products

By giving Indian Names to Brands

By acquiring Indian Brands By effective Media Communication

By Adopting Localised way of distributing

By associating them with Indian Celebrities

By participating in MELA

By putting company Hoardings as COKE, PEPSI &TATAs do.

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CONCLUSION

The future is very promising for those who canunderstand the dynamics of rural markets andexploit them to their best advantage. For achievingsuccess in rural market paradigm shift in the belief

of top management those who think that RuralMarket is bundle of problem & unattractive isrequired. It is only the matter of strategicallydeveloping rural market for getting competitive

advantage. Thus the future lies with those companies who

see the poor as their customers."

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Thank You