The rural population has shown a trend of wanting to move into a state of gradual urbanization in terms of exposure, habits, lifestyles and lastly, consumption patterns of goods and services.
By creating a partnership with an Indian company plays down the foreign factor and helps to dispel some of this mistrust. Visual Communication The rural area is a market where large portions of the population are illiterate.
Another technique used by multinational corporations has been tailoring products, including changing brand names, to give them a rural image.
Attraction of Higher Standard of Living: They earn urban salaries but continue to live in self-owned homes in the villages, they have high purchasing power. According to Shanthi Kanaan, writer for The Hindu, rural markets are growing twice as fast as the urban markets They built an insightful and unbiased understanding of the characteristics that make it unique Prahalad and Lieberthal, India is no exception.
Rural Marketing in India: However, there are several disadvantages to this method of marketing to rural India.
Importing has only been a viable means of getting consumer goods into India for just over ten years, when trade restrictions were eased Luce, By partnering with local entrepreneurs who own and manage their own plants, Hindustan Lever is able to manufacture their products with minimal amounts of fixed capital.
Definition and Features of Rural Marketing Article shared by: Point of Sale The retail establishment where most rural consumers purchase their day-to-day goods is at a kirana or street shop. Money available to spend on FMCG products by urban India in was Rsmn as against Rsmn in rural India, the book quoting another research study said.
Strategically Align with Industry Another key aspect to consider is how and where to produce and package the product. It calls for developing products for rural consumers.
After introducing the smaller size bottle, sales increased 34 percent by the end of the first quarter in Kripalani, The rural population is highly scattered, but holds a big promise for the marketers.
Consumers purchase everything from bananas to razors at a kirana. In addition, Indian consumers tend to feel more loyalty and trust toward locally made products.
The rural population is scattered in over 6 lakhs villages. By thinking small, using pronounced colors and logos, and planning for material usage, multinationals can create packages that meet the needs of the rural Indian consumer. Success Stories In spite of all the distribution challenges, there have been several multinational corporations that have experienced great successes in tackling the distribution networks.
Eight factors which contributes to the growth of rural markets are as follows: An increase in literacy levels has resulted in an increase in demand for consumer goods.
The most common Indian breakfast consists of biscuits and tea Dawar and Chattopadhyay, Though Thumbs Up is a cola of lower quality that Coke, it is a locally made Indian brand that rural consumers can relate with.
One way companies are able to keep the prices of sachet-type packages down is partially due to lower government duties on small packs. Shakti distributors are rural Indian women who partner with Hindustan Lever to receive training in micro-business skills, which includes a Personal Digital Assistant PDA to access product prices.
Today, many villages are well connected with the roads and transportation facilities that enables the marketer to access the rural market and promote his goods and services.
Not only does this help Hindustan Lever move products from manufacturing facilities to retail outlets, it also provides a large deterrent to potential competitors.
The Government is running several employment opportunity programmes, with the intention to engage people in other activities apart from the agriculture occupation. Sachets meet the needs of the rural consumer in several ways.
Today, multinational corporations view emerging markets such as India as prime opportunities for growth. Various socio-economic policies of the government have resulted in the development of rural India, which has resulted in new employment opportunities; for example, IRDP Integrated Rural Development Program.
Gradually, the rural population is changing its demand pattern, and there is demand for branded products in villages. With a rural population equal to just under 2. Due to lack of deeper insights into the psyche of the rural consumers, companies are hesitant to explore this territory and the market scenario today is also changing very rapidly.Purchasing power of the rural people is on rise.
Marketers have realized the potential of rural markets, and thus are expanding their operations in rural India. 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 purchasing power of rural communities.
3. Market growth: The rural market is. Rural India offers sustainable sales and profit for growth. There are more enterprises in rural India than in urban today contributing significantly to the non-farm output.
Following factors have contributed to the growth of rural marketing.
Recent years have seen rural markets emerging as an important growth engine in the India consumption story. With 69 per cent of India’s population living in rural areas, they present a significant market opportunity.
Today, for instance, close to a third of both FMCG and durable sales is contributed by rural markets. Overall, rural consumption in value terms has grown per cent per annum in the FY. Definition: The Rural Marketing refers to the activities undertaken by the marketers to encourage the people, living in rural areas to convert their purchasing power into an effective demand for the g.
Total rural income is estimated to reach $ trillion by Rural market is the market of the new millennium. Urban markets are becoming increasingly competitive for many products. In some cases, they are even saturated. Rural market is still a mystery for most of the companies.
76 Chapter – III RURAL MARKETING STRATEGIES OF CONSUMER DURABLES IN INDIA RURAL MARKETING In recent years, rural markets have acquired significance, as the overall growth .Download