1. Kushagra Saxena
Vishwamitra Vats
Zafar Imran
Rakesh Babu
Vidweta Sachan
Anandkumar Lotlikar
Pratiti Bhattacharya
Kevin Moses
Tanvi Kulshreshtha

2. The strength of future companies in the coming
years would neither be saturated urban markets
or export markets which suffer from
uncompetitive prices overseas but the rural
market.

3. What is Rural marketing?
“Rural marketing can be seen as a function
which manages all those activities involved in
assessing, stimulating & converting the
purchasing power into an effective demand
for specific products & service & moving them
to the people in rural areas to create
satisfaction & a standard of living for them &
there by achieves the goals of the
organization.”
- Dr. Omkareshwar Manappa

4. Profile of rural consumers
About 68% of India's population (593731 villages ,300 cities and 4600
towns) (*Census Board 2011)
Consumer Characteristics:
• Low purchasing power
• >600 million consumers spread over 5,93,731 villages
• Low per capita income
• Low literacy level-58% (Urban  79% )
• Divisions based on caste, community and other hierarchical
factors
• 60% of rural income is from Agriculture
Rural consumers  value for money (Don’t pay extra for frills)
• Rural Demand
– Seasonal or Festival

5. Factors influencing rural consumer
behavior
• Environment of the consumer: (Electrification, water supply
,road network, education)
• Creative use of product:
– Godrej hair dye being used as a paint to colour horns of oxen,
– Washing machine being used for churning lassi.
• Product: preferences for color, size, design and shape differs . Eg.
Philips audio systems.
• Social practices: Variety in cultures  each exhibits
different social practices
• Decision making by male head:
– For example, the Mukhiya’s opinion in most cases, is
shared with the rest of the village

6. Profile of urban consumers
• High literacy
• High income
• High awareness
• High standard of living
• Brand conscious
• Buying decisions;
– family influences,
– peer group influences,
– personal interest,
– information and experience,
– Situational influence
– Social surroundings -Physical surroundings - Temporal factors

7. Current Scenario Of Rural India
& Govt. Initiatives

8. • 700 million potential consumers,
• over 40 per cent of the Indian middle-class,
and about half the country's disposable
income

9. • 68% population of India is in Rural India.
• More than 10 Government schemes Running.
• Main Target is to Increase Rural income by
generating employment.
• SGSY, MNREGA, SHG’s – Step towards
Generating Employment.

10. • Budget Allocation up from INR 10,000 Crs. to
58,000 Crs. for rural development.
• As per BCG and CII reports Rural Customers
will be 36% of House Holds by 2025.
• This market will be open for retail sector.
• Ten Fold growth In rural Market by 2025 to
reach USD 100 Bn Mark. - HUL

11. Marketing In Rural India
• Rural Marketing is Less Liquidity Demanding.
• Village Meals, Nukkad Natikas, Mobile Vans,
Wall Paintings Can do the trick.
• These marketing attempts have been very
effective.

12. Why Companies need to target rural market
• Saturation in urban market.
• To counter or match the competitor’s strategies.
• The government increase in spending in rural
areas.
• Increase in rural purchasing power.
• New favorable policy measures by government.
• Rural spending is now less dependent on farm
income,.
• Source of raw material in a cost efficient manner
• Gaining access to cheap labor pools.

13. Challenges in rural marketing
• Right Competence
• Limited knowledge
• Transportation
• Communication
– Literacy rate 41.2%(1991) to 58.4%in 2011
• Retailing & Warehousing
– For every 16 villages there is one bank

14. Traditional four P’s of marketing —
product, price, place and promotion,
Four A’s — affordability, awareness,
availability and acceptability

15. HUL : Khushiyon Ki Doli
• Awareness: 4-5 teams of promoters head to each
village and invite the residents to gatherings (
‘mohallas’) to make them aware of the company
and its products.
• Consumer Engagement: The promoters go door-
to-door and conduct consumer home visits to
generate trials where they offer promotions to
the consumers.
• Retail: Finally, there is another team which visits
all the shops in the village which ensures
improved availability and visibility of the brands.

17. PRIVATE COMPANY EFFORTS
Coca-Cola’s Parivartan
• Trained more than 6,000 retailers to display and
stock products Coca-Cola
• Provided low-cost iceboxes as regular power
outages meant families could not depend on
refrigerators.
• Doubled sprnding on advertising on Doordarshan,
which alone reached 41% of rural households.
Dabur ASTRA
• ASTRA [advanced sales training for retail
ascendance]
• In several regional languages.

18. • Godrej introduced three brands of Cinthol,
Fair Glow and Godrej (soap) in 50-gram packs,
priced at Rs 5;
• Adidas and Reebok increased their sales by
50% in rural markets by reducing prices.

19. FMCG
• HUL’s Project Shakti,
• Colgate Palmolive: Operation Jagruti-Switch from
Charcoal to Colgate tooth powder
• Tata Tea’s Gaon Chalo
• ITC’s E-Chaupal
• Cavin Kare : Free sample of Chik Champoo
• Marico Industries
- Parachute coconut oil -“Sudhata ki pehchan”

20. –Airtel
–SBI
–PNB
–Dena bank

21. Consumer Durables
• Videocon introduced a washing machine
without a drier for US$60;
• Philips launched a low-cost smokeless chulha
• DCM Shriram developed a low-cost water
purifier especially for rural areas
• LG Electronics Sampoorna : developed a
customized TV which was cheap and capable of
picking up low-intensity signals for the rural markets