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    Rural MRKTG 1

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    Karan Khanna
    Rural marketing involves assessing, stimulating, and converting rural populations' purchasing power into effective demand for specific products and services. Rural areas have lower population densities and less social mobility than urban areas. Rural markets have become attractive targets for corporations as urban markets have become congested and saturated. Factors that have made rural markets viable include large populations, rising prosperity, lifestyle changes, and market growth rates higher than urban. The main challenges of rural marketing are understanding rural consumers who differ from urban consumers and distributing products to remote villages with poor infrastructure. Some companies that have effectively tapped into rural markets include Coca-Cola, Amul, Colgate, and ITC.

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    Rural MRKTG 1

    Uploaded by

    Karan Khanna
    33 views16 pages
    Rural marketing involves assessing, stimulating, and converting rural populations' purchasing power into effective demand for specific products and services. Rural areas have lower population densities and less social mobility than urban areas. Rural markets have become attractive targets for corporations as urban markets have become congested and saturated. Factors that have made rural markets viable include large populations, rising prosperity, lifestyle changes, and market growth rates higher than urban. The main challenges of rural marketing are understanding rural consumers who differ from urban consumers and distributing products to remote villages with poor infrastructure. Some companies that have effectively tapped into rural markets include Coca-Cola, Amul, Colgate, and ITC.

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    Rural Mrktg 1

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    Rural marketing involves assessing, stimulating, and converting rural populations' purchasing power into effective demand for specific products and services. Rural areas have lower population densities and less social mobility than urban areas. Rural markets have become attractive targets for corporations as urban markets have become congested and saturated. Factors that have made rural markets viable include large populations, rising prosperity, lifestyle changes, and market growth rates higher than urban. The main challenges of rural marketing are understanding rural consumers who differ from urban consumers and distributing products to remote villages with poor infrastructure. Some companies that have effectively tapped into rural markets include Coca-Cola, Amul, Colgate, and ITC.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views16 pages

    Rural MRKTG 1

    Uploaded by

    Karan Khanna
    Rural marketing involves assessing, stimulating, and converting rural populations' purchasing power into effective demand for specific products and services. Rural areas have lower population densities and less social mobility than urban areas. Rural markets have become attractive targets for corporations as urban markets have become congested and saturated. Factors that have made rural markets viable include large populations, rising prosperity, lifestyle changes, and market growth rates higher than urban. The main challenges of rural marketing are understanding rural consumers who differ from urban consumers and distributing products to remote villages with poor infrastructure. Some companies that have effectively tapped into rural markets include Coca-Cola, Amul, Colgate, and ITC.

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    RURAL MARKETING

    In the India context, the word RURAL is so much associated with agriculture and farmers that rural marketing tends to be seen as a marketing of inputs or outputs related to agriculture.

    What is Rural Marketing?


    Rural marketing is a function which manages all those activates involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.

    Density of population
    Rural:density of population is lower than urban

    Mobility
    Rural:social mobility less.More migration from villages to town. Urban:social mobility inreases with urbanity.

    Attractiveness of rural market


    Rural markets have become the new targets to corporate enterprises for two reasons : 1. Urban market has become congested with too many competitors. 2. The market have reached a near saturation point.

    Various factors which have made rule markets viable:1. Large population 2. Raising prosperity 3. Growth in consumption 4. Life-style changes 5. Life-cycle advantages 6. Market growth rates higher than urban 7. Rural marketing is not expensive 8. Remoteness is no longer a problem

    Clearly the main challenge that one faces while dealing with rural marketing is the basic understanding of the rural consumer who is very different from his urban counterpart. Also distribution remains to be the single largest problem marketers face today when it comes to going rural. "Reaching your product to remote locations spread over 600,000 villages and poor infrastructure - roads, telecommunication etc and lower levels of literacy are a few hinges that come in the way of marketers to reach the rural market

    Khaitan fans' ad on a horse cart

    The greatest challenge for advertisers and marketers continues to be in finding the right mix that will have a pan-Indian rural appeal. Coca Cola, with their Aamir Khan ad campaign succeeded in providing just that.

    "Yaara da Tashan... ads with Aamir Khan created universal appeal for Coca Cola

    "Yaara da Tashan..." ads with Aamir Khan created universal appeal for Coca Cola Coca-Cola India tapped the rural market in a big way when it introduced bottles priced at Rs 5 and backed it with the Aamir Khan ads. The company, on its behalf, has also been investing steadily to build their infrastructure to meet the growing needs of the rural market, which reiterates the fact that this multinational has realised the potential of the rural market is going strength to strength to tap the same.

    Amul is another case in point of aggressive rural marketing. Some of the other corporates that are slowly making headway in this area are Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero Honda to name a few.

    Satellite dish antennas reach rural India

    In 2000, ITC took an initiative to develop direct contact with farmers who lived in farflung villages in Madhya Pradesh. ITC's Echoupal was the result of this initiative.

    So the fact remains that the rural market in India has great potential, which is just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor as it used to be a decade or so back. Things are sure a changing

    Typical shop in rural India stocked with sachets, etc

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