ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me dur ng the wr t ng o! th s pro"e#t$ My deepest thanks to Dr$ %akh Gupta the Gu de o! the pro"e#t !or gu d ng and #orre#t ng &ar ous do#uments o!

m ne w th attent on and #are$ 'he has taken pa n to go through the pro"e#t and make ne#essary #orre#t on as and when needed$ I e(press my thanks to the )r n# pal o!* IN'TIT+TE O, COO)E%ATI-E AND CO%)O%ATE MA%KETING %E'EA%C. AND T%AINING * L+CKNOW* !or e(tend ng h s support$ My deep sense o! grat tude to Mr$ANADI ANAND /DE'IGNATION0 * %+%AL O+T%EAC. )-T LTD$ support and

gu dan#e$ Thanks and appre# at on to the help!ul people at %+%AL O+T%EAC. )-T LTD* !or the r support$ I would also thank my Inst tut on and my !a#ulty mem1ers w thout whom th s pro"e#t would ha&e 1een a d stant real ty$ I also e(tend my heart!elt thanks to my !am ly and well w shers$

DECLA%ATION
I here1y de#lare that the pro"e#t work ent tled )ENET%ATION O, %+%AL MA%KET su1m tted to the IN'TIT+TE O, COO)E%ATI-E AND CO%)O%ATE MANAGEMENT %E'EA%C. AND T%AINING* s a

re#ord o! an or g nal work done 1y me under the gu dan#e o! Mr$ ANADI ANAND AND Dr$ %AK.I G+)TA and th s pro"e#t work has not per!ormed the 1as s !or the award o! any Degree or d ploma and s m lar pro"e#t ! any$
MOHD ADEEL KHAN [ENROLMENT NO]

TABLE OF CONTENTS

Acknowledgement ii

'tudent2s De#larat on...

Cert ! #ate .

&

1.0 Synopsis 00 2.0 Introduction to the Topic... 00 3.0 Introduction to the Organization/Industry 00 3.1 Introduction to company profile00 4.0 Objectives of the Study. 00 5.0 Scope of the Study 00 6.0 Literature 7.0 evie!...... 00 00 00

esearch "ethodology 7.1 #niverse of the study.

7.2 Sample Size............ 00 7.3 Sampling "ethod... 7.4 Tools for $ata %ollection... 00 00

8.0 $ata &nalysis ' Interpretation. 00 9.0 (indings.. 00 10.0 ecommendations ' Suggestions 00 00

11.0 %onclusion...

12.1 Limitations of the Study.. 00 12.2 Scope for further research. 00 Bibliography......

Appendix )*uestionnaire+... iii

SYNOPSIS

Title: '#ope O! %ural Market ng ,or ,MCG Compan es$

Objective:
Rural marketing of FMCG Companies Present and

future. ,uture growth potent al o! rural market ng o! ,MCG Compan es n Ind a$ D !!erent 'trateg es adopted 1y d !!erent ,MCG #ompan es to n#rease our rural market share$
Challenges !a#ed 1y d !!erent ,MCG Compan es$$

-ar ous opportun t es !or ,MCG Compan es n the !uture$

Rationale: As now a day2s market s ! lled w th a num1er o! ,MCG Compan es3 E&ery #ompany want to n#rease our market share$ Due to lot o! #ompet t on n the ur1an market and ur1an market s saturated$ E&ery #ompany want to #aptured the w de rural market$ 4e#ause a1out 567 o! our #ountry populat on l &e n the rural market$ -ar ous ,MCG l ke .LL* ITC et# mplement our strateg es to #aptured the rural market are d s#ussed$ And what the r mpa#t and also the pro1lems and #hallenges !a#ed 1y the &ar ous ,MCG #ompan es are d s#ussed$ And the Opportun t es !or the ,MCG Compan es n the !uture$
$

Research Methodology: The non8e(ploratory resear#h methodology w ll 1e used !or the thes s wr t ng$

Research design: O&er& ew O! 'trateg es Adopted 4y 4 g$ ,MCG Compan es$ -ar ous Opportun t es !or the ,MCG Compan es$$ Comparat &e Data Analys s$ O! D !!erent ,MCG Compan es 'hare n

%ural Market$

Research Instruments:-

The 'e#ondary data w ll 1e #olle#ted through Internet* 1ooks and the mater als maga9 nes$ pu1l shed n "ournals and

INTRODUCTION The rural market o! Ind a s !as# nat ng and #halleng ng at the same t me$ It o!!ers large s#ope on a##ount o! ts sheer s 9e$ And* t s grow ng stead ly$ E&en a modest growth pushes up the sales o! a produ#t su1stant ally* n & ew o! the huge 1ase$

It s attra#t &e !rom yet another angle$ Whereas the ur1an market s h ghly #ompet t &e* the rural market s relat &ely :u et$ In !a#t* !or #erta n produ#ts* t s totally & rg n market$ ' multaneously* the market also poses se&eral pro1lems and hurdles$ The ! rms ha&e to en#ounter them s:uarely and put n a great deal o! e!!ort* ! they ha&e to get a s 9ea1le share o! the market$ E!!orts to #apture the market w th due thought and !o#us on the #onstra nts w th streaml ned strateg es to o&er#ome the same w ll tend to de! ne the path ahead !or rural market ng n Ind a$ A . nd poet has r ghtly sa d* ; Bharat mata gram vasini< wh #h means Mother Ind a l &es n her & llages$ A##ord ng to the =>>= #ensus* Ind a2s populat on was ?@6 m ll on* o! wh #h 5@ per#ent l &ed n & llages$ These are a&erage stat st #s$ There are states l ke +)* M)* %a"asthan* Kerala* 4 har and Or ssa where the rural populat on

&ar es !rom ?6 to >6 per#ent$ The spread o! populat on n A*B66 # t es and towns s to the e(tent o! B@ per#ent* and o! the rema n ng 5@ per#ent s n @*5C*666 & llages$ Th s sheer 1ase de! nes the &olume and s#ope o! rural market ng$

Market ng n Ind a has !or a long t me meant ur1an market ng$ 4ut now rural market ng s 1e ng w dely resear#hed and d s#ussed$ I! market potent al s #ons dered* the rural market s 1 g w th appro( mately 56 per#ent o! the populat on st ll res d ng n rural areas and w th A6 per#ent the Gross Nat onal )rodu#t emanat ng !rom agr #ulture$ The !ollow ng transa#t ons* /wh #h 1roadly outl ne the lands#ape o! rural market ng0 * #an 1e #ategor 9ed as !ollowsD

Market ng o! agr #ultural nputs l ke !ert l 9ers* pest # des* !arm

ma#h nery et#3

Market ng o! produ#ts made n ur1an #enters and sold to rural areas

l ke soap* toothpaste* tele& s on sets* et#3

Market ng o! produ#ts made n rural areas sold to ur1an #enters l ke

khad #loth* hand #ra!ted produ#ts et#3 and

Market ng o! produ#ts made and sold n rural areas l ke m lk and

m lk produ#ts* lo#ally manu!a#tured toothpowder* #loth et#$

COMPANY PROFILE RURAL OUTREACH PRIVATE LIMITED In the era where #ompan es !o#us and momentum has sh !ted to Ind a2s heartland $e$* %ural Ind a* there s a need to rea#h out to the 1urgeon ng rural market w th the r ght set o! market ng and #ommun #at on tools$ %ural Outrea#h )r &ate L m ted has #ome up as an ntegrated rural !o#used Agen#y w th spe# al sed &ert #als de&oted #ompletely to #reat ng work that works and 1u ld ng 1rands that per!orm$ Whate&er 1e the s#ale and s#ope o! the market ng #ommun #at ons e!!ort re:u red* our network a#ts as a #ru# al nter!a#e 1etween the #l ents and the rural market and s #apa1le o! del &er ng the 1est results to meet the o1"e#t &es o! the #l ents

%+%AL C.ALLENGE' 1. Unorganized and dispersed markets 2.

Lack of proper infrastructure and other physical communication facilities

3. Media for rural communication/promotion 4. Distri ution system !. Di"erse socio#economic ack$ardness %. &re"alence of spurious rands and seasonal demand '. Many languages and dialects (. Lo$ le"els of literacy ) a$areness *. +uying decisions

RURAL MYTHS
MYTH 1: RURAL INDIA IS ALL ABOUT AGRICULTURE REALITY:

%ural Ind a s way 1eyond agr #ulture , rst* agr #ulture2s #ontr 1ut on to Ind a2s GD) has stead ly #ome down to "ust =5$@ per #ent$ ,urther* almost hal! o! the rural Ind an e#onomy s non8agr #ulture81ased and a th rd o! the households E around @6 m ll on E are engaged n non8agr #ultural a#t & t es E people work ng n manu!a#tur ng* or as traders* shopkeepers* pro& d ng ser& #es su#h as ele#tr # ty generat on* #onstru#t on* m n ng and

:uarry ng* transportat on and haulage$ A1out A6 per #ent o! rural households are landless$ .al! o! the rema n ng C6 per #ent are marg nal !armers /own ng less than B he#tares o! land0$ Large !armers* own ng more than =6 a#res o! land* !orm a t ny A per#ent o! the rural populat on$ In B665* 1y NCAE% est mates* the spl t was a1out A6DC6 E A= per #ent 1e ng !arm n#omeF

MYTH 2: DISPOSABLE INCOME IS LOW REALITY:

Num1er o! m ddle #lass ..s /annual n#ome %s$ A@*666 8 B*=@*6660 !or rural se#tor s B5$A m ll on as #ompared to the ! gure o! B>$@ m ll on !or ur1an se#tor$ %ural n#omes CAG% was =6$>@7 #ompared to =6$5A7 n ur1an 1etween =>5685= and =>>G8>A$

MYTH 3: THAT RURAL MARKETS ARE HIGHLY PRICE INELASTIC AND ONLY SUITED FOR !VALUE FOR MONEY! PRODUCTS AS AGAINST PREMIUM "UALITY PRODUCTS THE REALITY:

Desp te lower n# den#e o! prem um produ#t pur#hases* the rural #onsumers a#ross all n#ome segments e(h 1 t marked propens ty to spend on prem um h gh :ual ty produ#ts wh #h are 1a#ked 1y strong 1rand &alues* where they #orrespond to the r own asp rat ons and :ual ty needs$ The pro1lem really l es n mark et not 1e ng a1le to o!!er a prem um produ#t n the spe# ! # #onte(t o! rural demand$

MYTH #: RURAL CONSUMERS LACK PURCHASING POWER REALITY: A##ord ng to N''O report no$ @B5* there was l ttle d !!eren#e 1etween rural and ur1an households n the share o! the 1udget allo#ated to !uel and l ght /=6 per #ent !or rural* > per #ent !or ur1an0 and #loth ng* n#lud ng 1edd ng and !ootwear /5 per #ent !or rural* C per #ent !or ur1an0$ Wh le n =>>?8>> o&er ?G per #ent o! rural households !ell n the lower and lower8m ddle #lasses* the num1er has !allen to 56 per #ent n B66C8653 the #omparat &e !all !or ur1an Ind a s !rom @G per #ent to B5 per #ent /NCA E% data0$ And ! e(perts are to 1e 1el e&ed* the num1er s set to !all at a rap d rate o&er the ne(t B6 years$

MYTH$: GROWTH IN RURAL IS SLOW. INVESTMENTS GIVE LATE RESULTS REALITY: It s mu#h !aster than we th nk$ , rst* wh #h market does not need a #erta n gestat on per od !or growth and de&elopmentH A ,ICCI sur&ey nd #ated that #onsumer dura1les would see =B per #ent growth n B66?$ The rural market s grow ng !aster than the ur1an market$ The rural market* wh #h a##ounts !or nearly 56 per #ent o! the total num1er o! households* saw B@ per #ent annual growth wh le the ur1an #onsumer dura1les market grew at 5 to =6 per #ent$$$ 'e&enty per #ent o! Ind a2s populat on* @C per #ent o! ts n#ome* CA per #ent o! ts e(pend ture and GG per #ent o! ts sa& ngs #ome !rom rural Ind a$ It s t me we d d 1etter than "ust Iassume2 what these people des re* detest* appre# ate and e(pe#t

SERVICES

R%&'( M'&)*+,-. / B&'-0,-. %O)L helps you n manag ng the mo&ement and the growth o! your 1us ness$ We analy9e the present s#enar o and the 1rand2s pos t on and then #reate a path 1y #on#eptual 9 ng nno&at &e deasJ#ampa gns !or all

#ustomers and spe# ! # markets$ We ensure s#ala1le and susta na1le 1us ness de&elopment solut ons through our w de 1ou:uet o! 'er& #es$

)rodu#t Laun#h 4rand )romot onJManagement ATLJ4TL A#t & t es E8Market ng /'M'* I-% #alls0 4u99 J - ral Market ng D re#t Market ng

R%&'( E1*-+2 / A3+,1'+,4-2 %O)L spe# al ses n plann ng and e(e#ut ng ground le&el a#t & t es at &ar ous rural market pla#es l ke haats* mand s and melas$ %O)L2s e(tens &e e(pert se and rea#h n %ural Ind a ena1le ts #l ents to tap th s market !or produ#t promot on and sampl ng$ In add t on* ts e(haust &e knowledge on rural Ind a helps t to tra#k and e(plo t more opportun t es n these markets$

E(h 1 t ons Con!eren#es Trade ,a rs /Melas0 .aats CollegeJ'#hool A#t &at on , eld Demonstrat onsJTra n ngs

R%&'( R*2*'&35 As an essent al element to strengthen strategy !or 1rands eye ng the %ural Market* we #ondu#t %esear#h &ary ng !rom #onsumer 1eha& our* strategy resear#h* Industry o&er& ew* 1rand pos t on ng* et#$ !or 1randsJ#ompan es a m ng to e(pand or penetrate nto th s segment$$

-alue Cha n Analys s 4rand %esear#h Entry K Market )enetrat on 'trateg es C'% A#t & ty )lann ng Content Creat on )rodu#t related 'tud es

UPCOMING EVENTS L Gramotsa& B6=G /=G d str #ts %ural Trade ,a r0 L +ttar )radesh ACA4 Con#la&e B6=G L Custom 9ed a#t &at ons

STRATEGIC PARTNERS 4hag dar s a strong grass root network o! more than =B6 agr 1us ness #entres n d !!erent d str #ts o! +ttar )radesh*

pro& d ng :ual ty agr 8 nputs K agronom # !armers* workshops* ad& #es organ 9 ng to the

!armer tra n ng

programmes* #ontra#t !arm ng* and part # pat ng n e(e#ut on o! Go&t$ '#hemes CACL s an Agr Consult ng , rm solut ons #onsult ng Corporates pro& d ng to the Complete 1us ness o! the

needs

OB6ECTIVE

The o&er all o1"e#t &e o! the thes s s to ! nd out how to )enetrate %ural Market ng !or ,MCG Company n Ind a$

SUB OB !"TI#! :

%ural market ng o! ,MCG Compan es M )resent and !uture$

,uture growth potent al o! rural market ng o! ,MCG Compan es n Ind a$

D !!erent 'trateg es adopted 1y d !!erent ,MCG #ompan es to n#rease our rural market share$

Challenges !a#ed 1y d !!erent ,MCG Compan es$

-ar ous opportun t es !or ,MCG Compan es n the !uture$

SCOPE OF THE STUDY

The Ind an rural market w th ts &ast s 9e and demand 1ase o!!ers great opportun t es to marketers$ Two8th rds o! #ountr es #onsumers l &e n rural areas and almost hal! o! the nat onal n#ome s generated here$ It s only natural that rural markets !orm an mportant part o! the total market o! Ind a$ Our nat on s #lass ! ed n around A@6 d str #ts* and appro( mately CG6666 & llages wh #h #an 1e sorted n d !!erent parameters su#h as l tera#y le&els* a##ess 1 l ty* n#ome le&els* penetrat on* d stan#es !rom nearest towns* et#$ The su##ess o! a 1rand n the Ind an rural market s as unpred #ta1le as ra n$ It has always 1een d !! #ult to gauge the rural market$ Many 1rands* wh #h should ha&e 1een su##ess!ul* ha&e !a led m sera1ly$ More o!ten than not* people attr 1ute rural market su##ess to lu#k$ There!ore* marketers need to understand the so# al dynam #s and att tude &ar at ons w th n ea#h & llage though nat onally t !ollows a #ons stent pattern$ Wh le the rural market #erta nly o!!ers a 1 g attra#t on to marketers* t would 1e na &e to th nk that any #ompany #an eas ly enter the market and walk away w th s 9a1le share$ A#tually the market 1r stles w th &ar ety o! pro1lems$ The ma n pro1lems n rural market ng areD

)hys #al D str 1ut on Channel Management )romot on and Market ng Commun #at on

The pro1lems o! phys #al d str 1ut on and #hannel management ad&ersely a!!e#t the ser& #e as well as the #ost aspe#t$ The e( stent market stru#ture #ons sts o! pr mary rural market and reta l sales outlet$ The stru#ture n&ol&es sto#k po nts n !eeder towns to ser& #e these reta l outlets at the & llage le&els$ 4ut t 1e#omes d !! #ult ma nta n ng the re:u red ser& #e le&el n the del &ery o! the produ#t at reta l le&el$ One o! the way #ould 1e us ng #ompany del &ery &ans wh #h #an ser&e two purposes8 t #an take the produ#ts to the #ustomers n e&ery nook and #orner o! the market and t also ena1les the ! rm to esta1l sh d re#t #onta#t w th them and there1y !a# l tate sales promot on$ .owe&er* only the 1 gw gs #an adopt th s #hannel$ The #ompan es w th relat &ely !ewer resour#es #an go n !or synd #ated d str 1ut on where a t e8up 1etween non8#ompet t &e marketers #an 1e esta1l shed to !a# l tate d str 1ut on$ As a general rule* rural market ng n&ol&es more ntens &e personal sell ng e!!orts #ompared to ur1an market ng$ Marketers need to understand the psy#he o! the rural #onsumers and then a#t a##ord ngly$ To e!!e#t &ely tap the rural market a 1rand must asso# ate tsel! w th the same th ngs the rural !olks do$ Th s #an 1e done 1y ut l 9 ng the &ar ous rural !olk med a to rea#h them n the r own language and n large num1ers so that the 1rand #an 1e

asso# ated w th the myr ad r tuals* #ele1rat ons* !est &als* melas and other a#t & t es where they assem1le$ One &ery ! ne e(ample #an 1e :uoted o! Es#orts where they !o#ussed on deeper penetrat on $In 'eptem1er8>? they esta1l shed rural market ng sales$ They d d not rely on T$- or press ad&ert sements rather #on#entrated on !o#used approa#h depend ng on geograph #al and market parameters l ke !ares* melas et#$ Look ng at the Iku#hha2 roads o! & llage they pos t oned the r mo1 ke as tough &eh #le$ The r ad&ert sements showed Dharmendra r d ng Es#ort w th the pun#h l ne INandar 'awar * 'handar 'awar 2$ Thus* they a#h e&ed whopp ng sales o! >@666 &eh #les annually$

RURAL MARKETING ENVIRONMENT The rural market en& ronment need a separate e(am nat on as t &ar es s gn ! #antly !rom that o! the ur1an market$ We shall deal w th the su1"e#t under the three head ngs D8 =$ The rural #onsumer$ B$ The rural demand$ G$ Other en& ronment$ aspe#ts o! the rural market

7A8 T$! RUR%& "O'SUM!R : % (etailed )ro*ile :Si+e o* Rural "onsumer ,roup In numer #al terms * Ind a2s rural market s ndeed a large one 3 t #ons sts o! more than 5A6 m ll on #onsumers$ 5G7 o! Ind a2s total populat on s rural $ The rural market #ons sts o! more than =B #rores households* !orm ng o&er 567o! the total households n the #ountry$

"haracteristics o* Rural "onsumer ,roup: LOCATION PATTERN : %ural Market o! Ind a s a geograph #ally s#attered market$ The rural populat on s s#attered a#ross @*56*666 & llages $ And* o! them * only CG66

& llages * ha&e a populat on o! more than @*666 ea#h $ More than G lakh & llages* are n the #ategory o! @66 people or less$

SOCIO ECONOMIC POSITION : %ural Consumers #ont nue to 1e marked 1y low per #ap ta n#omeJ low

pur#has ng power$ ' m larly* they #ont nue to 1e a trad t onal 81ound #ommun ty* w th rel g on* #ulture and trad t on strongly n!luen# ng the r #onsumpt on ha1 ts$ Nearly C67 o! rural n#ome #omes !rom agr #ulture$ %ural )rosper ty and d s#ret onary n#ome w th rural #onsumers are thus l nked to a s 9ea1le e(tent w th agr #ultural prosper ty$

LITERACY LEVEL : %ural Ind a has a l tera#y rate o! B?7 #ompared w th @@7 !or the whole

#ountry$ The adult l tera#y programmes laun#hed n the rural areas are 1ound to enhan#e the rural l tera#y rates n the years to #ome $ The rate s #erta nly on the low s de$

LIFESTYLE :

The rural #onsumers are marked 1y a #onser&at &e and trad t on81ound l !estyles$ 4ut th s l !estyle o! a s 9ea1le segment o! rural #onsumers has

already #hanged s gn ! #antly n re#ent years $The #hanges #an 1e attr 1uted to se&eral !a#tors su#h asD Growth n n#ome and #hange n n#ome d str 1ut on $ Growth n edu#at on$ Enlarged med a rea#h / part #ularly tele& s on0$ Grow ng ntera#t on w th ur1an #ommun t es$ Marketers e!!ort to rea#h out the rural market$

BU-I', B!$%#IOUR :4uy ng 1eha& our o! rural #onsumers ha&e 1een e!!e#ted 1y the !ollow ng !a#torsD8

I'.&U!'"! O. "U&TUR!:%ural #onsumers per#ept on o! produ#ts are strongly n!luen#ed 1y #ultural ,a#tors $ ,or e(ample8the pre!eren#e n respe#t o! 34(4%&9 2,:* '-0 25';* ,2 +5* &*2%(+ 4< 3%(+%&'( <'3+4&2.

GEOGRAPHIC LOCATION: %ural #onsumer 1eha& our s also n!luen#ed 1y the geograph #al lo#at on o! the #onsumers$ ,or e(ample * nearness to !eeder towns and ndustr al pro"e#ts n!luen#ed the 1uy ng 1eha& our o! the #onsumers n respe#t &e #luster o! & llages$

E=POSURE TO URBAN LIFESTYLES: E(tent o! e(posures o! rural #onsumers to ur1an l !estyles also n!luen#es the r 1uy ng 1eha& our$

T$! /%- T$! "O'SUM!R US!S T$! )RO(U"T:The s tuat on n wh #h the #onsumers ut l 9e the r the produ#t also the r 1uy ng 1eha& or $ ,or e(ample M La#k o! ele#tr # ty automat #ally n#rease the pur#hase o! 1atter es 1y rural #onsumers$D s n#e the rural #onsumers #annot use wash ng powders Jdetergents powders that mu#h* as they wash the r #lothes n streams or ponds * they go s more !or wash ng 1ars and detergents #akes$

PLACE OF PURCHASE: D !!erent segments o! rural 1uyers 1uy the r re:u rements !rom d !!erent pla#es O outlets$ 'ome 1uy !rom the & llage * shopkeepers3 some !rom & llage marketsJ meals3 other 1uy !rom the town that ser&es as the !eeder to the rural area$

M%R0!T!RS1 !..ORT TO R!%"$ OUT T$! RUR%& M%R0!T :

Many #orporate ha&e 1een try ng hard to de&elop a market the r produ#ts n rural areas * n&est ng su1sta nlly n these areas$ De&elopmental market ng has #reated d s#r m nat ng 1uyers demand n the rural market$ Th s has 1rought a1out some #hange n the way 1uyers pur#hase d !!erent produ#t$

7B8 T$! RUR%& (!M%'( :% (etailed )ro*ile :-

Steady gro2th %ural demand has grown stead ly o&er the years$ Not only has the market grown n :uant tat &e terms * 1ut :ual tat &e terms too t has undergone a s gn ! #ant #hange$

"hange in the composition o* Rural (emand

The #ompos t on o! rural demand has also 1een #hang ng s gn ! #antly n re#ent years Many new produ#ts ha&e entered the #onsumpt on 1asket o! the rural #onsumers$ and the relat &e shares o! the d !!erent #ategor es o! produ#ts n the #onsumpt on 1asket $The upper segments* n part #ular * ha&e started 1uy ng and us ng a &ar ety o! modern #onsumer produ#ts* wh #h were t ll re#ently unknown n the rural market$

Several products already 2ell established in the rural mar3et

Marketers #annot now assumes that rural Ind a #onsumes only #erta n trad t onalJ essent al produ#ts and that ts share n other produ#t #ategory s meager$ It s perhaps well known that produ#ts l ke pa#kaged tea * 1ath soaps and wash ng produ#ts* n#lud ng detergentsJdetergents #akes * are popular tems o! #onsumpt on n rural market $)rodu#ts l ke shampoo *toothpaste and tal#um powder * and dura1les l ke ele#tr # rons * 1 #y#les * mopeds* s#ooters and motor#y#les ha&e "o ned th s #ategory n re#ent years$ The rural

demand !or ele#tr # rons * mopeds and motor#y#les ha&e note 1etween G6 and @6 per#ent o! the all8Ind a demand$

In many products 4 rural consumption accounts *or a larger share than urban:-

In many produ#ts * rural #onsumpt on now a##ounts !or a larger share than ur1an $ In wash ng soaps /#akesJ1ars 0* the rural share s o&er C6 per #ent $

In popular 1ath soaps * t s more than @6 per #ent and n 1atter es * t s more than @C per #ent $s m lar s the #ase w th pa#ked tea and ha r o ls$

In Many )roducts4 the rural mar3ets has overta3en the urban in gro2th rate:A sur&ey 1y NCAE% shows that the rural market s grow ng !aster than the ur1an market !or se&eral produ#ts $ These n#ludes pa#kaged tea* detergent powder * wash ng soap* and detergent #ake$ Growth o! motor#y#le too has 1een more n the rural market than the ur1an market$

.actors Behind the gro2th and (iversi*ication in Rural (emand:-

-ar ety o! !a#tors * a#t ng n #on#ert * ha&e 1rought a1out the 1 g growth and wel#ome #hanges n the rural demand* a !ew o! them su#h as growth n n#ome * #hanges n n#ome d str 1ut on * #hanges n l !estyles* and the e(pe#tat on$

'e2 income due to agricultural 5rural development:The te#hnolog #al 1reak through * popularly known as the G%EEN %E-OL+TION* wh #h took pla#e n Ind an agr #ulture !rom the m d =>56 onwards* has added to the prosper ty o! rural Ind a #ons dera1ly$ Moreo&er* n re#ent years * as part o! the new !arm pol #y * h gh support pr #es are o!!ered !or !arm produ#ts$ As a result * there s now more money n the hands o! the owner8!armers n the rural areas$

The e6pectation revolution:The Ir s ng e(pe#tat ons2 o! the rural people ha&e greatly n!luen#ed the rural market en& ronment $ It has enlarged the des re as well as awareness o! the rural people 3 t has strengthen the r mot &at on to work *earn and #onsume$ The r se n#ome pro& de su1stan#e to the asp rat on$

Rural (emand is More Seasonal:%ural demand s more seasonal #ompared to ur1an demand $The pre8 dom nan#e o! agr #ulture n the n#ome pattern s one ma n reason !or th s$ The relat &ely greater n!luen#e o! marr ages and !est &al on the pur#hase pattern s the another$ A!ter all* agr #ulture n many parts o! Ind a s st ll depends on the &agar es o! the monsoon$

T%))I', T$! RUR%& M%R0!TS :Wh le rural Ind a does #onst tute an attra#t &e and s 9ea1le market* ! rm ha&e to str &e hard !or se#ur ng a share o! t$ )ra#t #ally n e&ery task o! market ng * rural market ng poses some un :ue pro1lems$ The ma"or tasks that need un :ue handl ng n rural market ng areD 'egmentat on and target ng$ )rodu#t management$ )hys #al d str 1ut on$ Channel management$ Market ng #ommun #at ons$

A. S!,M!'T%TIO' %'( T%R,!TI', : The rural #onsumers are not a homogeneous lot n e#onom # #ond t ons* or l tera#y* or l !estyles* or 1uy ng 1eha& our$ It would* there!ore* ! rm to assume that the rural market as a whole #an 1e ser&ed 1y a s ngle o!!er or a s ngle produ#t 8pr #e8promot on #om1 nat on$ ! rm ha&e to analyses the #onsumers n Mdepth* #arry out thorough market segmentat on and sele#t rele&ant segments as target markets$ And they ha&e to de&elop a d st n#t &e pos t on ng and a d st n#t &e market ng m ( !or ea#h target segment$

,eographical Segmentation:The rural market #an 1e segmented geograph #ally* us ng d !!erent geograph #al 1ases$

"limate and level o* irrigation:Cl mate #an 1e one o! them3 reg ons endowed w th !a&ora1le #l mate are usually more prosperous #ompared w th #l mat #ally hand #apped reg on$ Le&el o! rr gat on #an 1e another 1ase3 rr gated areas and dry land areas pose d !!erent e#onom # and market ng en& ronments.

'earness to a *eeder to2n:, rms #an also segment the rural market us ng Inearness to a !eeder town2 as the 1ase$ Consumers lo#ated #lose to a !eeder town & s t t at least on#e a month to sell the r produ#t andJor to 1uy the r re:u rements* and n 1uy ng ha1 ts * they d !!er !rom those l & ng n the nter or areas$ It w ll thus 1e mean ng!ul to segment the rural market n to #onsumers lo#ated #loser to a !eeder town and #onsumers lo#ated away !rom them $

(emographic segmentation:The rural market #an 1e segmented demograph #ally too$ In !a#t* there are many poss 1 l t es o! segment ng the rural market demograph #ally$

)opulation concentration:It #an 1e one 1ase$ A1out A6 per#ent o! the rural populat on l &e n 5 per#ent o! the & llages n the #ountry and rema n ng C6 per#ent n the other >G per #ent o! the & llages$ Thus* the market #an 1e segmented on the 1as s o! d !!erent s 9e #lasses w th regard to populat on.

%ge:-

In part #ular* the youth n the rural areas #an 1e p #ked up as a separate market$ There s a populat on o! more than B6 #rore n the age group o! =C8 G6 years n the rural market$ 'ur&eys ha&e re&ealed that the younger generat on dom nates the pur#hase n the rural market$ The rural youth d !!er !rom the r elders n the r 1uy ng 1eha& ours $It w ll thus 1e mean ng!ul to segment the rural youth as a separate market$

&iteracy level:It #an 1e another demograph # 1ase !or segment ng the rural market$ Though rural Ind a* s #hara#ter 9ed 1y low l tera#y *there are w de &ar at ons n the matter o! l tera#y w th n rural Ind a $ !or e(ample8 The rural l tera#y rate n Kerela s ?6 )er #ent * that n 4 har s only =@ per #ent$

Income:The rural #onsumers #an 1e segmented n to d !!erent n#ome #lasses$ The rural #onsumers #an also 1e segmented nto regular n#ome and demand $All rural #onsumers are not #hara#ter 9ed 1y seasonal ty o! n#ome $There s a s 9ea1le salar ed #lass n the rural areas $ There s also a s 9ea1le sel!8 employed group* #ons st ng o! shopkeepers and ser& #e pro& ders$ There s

noth ng seasonal a1out the n#ome o! su#h people $O1& ously* those w th regular n#ome w ll d !!er n 1uy ng ha1 ts #ompared w th those whose n#ome s seasonal$

Buying behaviour segmentation:-

%ural #onsumer d !!er

n the r 1uy ng 1eha& our !rom the r ur1an

#ounterparts as well as among themsel&es$ Th s !a#t too #ould 1e !a#tored n to segmentat on e(er# se $ ! rms should *howe&er * generate rele&ant data on the rural #onsumers and the r 1uy ng 1eha& our * per#ept on and att tudes *and then segment them us ng the r 1uy ng 1eha& our as the 1ase$

Thompson rural inde6:-

. ndustan

Thompson

Asso# ates

ha&e

de&eloped the 7Thompson rural mar3et inde62 1ased on BC &ar a1les * n#lud ng area o! the #on#erned d str #t * demograph # pattern

o##upat onal pattern * agr #ulture Mrelated data *

rural ele#tr ! #at on data and #ommer# al 1ank data $ The nde( #an 1e used n segmentat on$

B. )RO(U"T STR%T!,- :The ! rst de# s on to 1e made n produ#t strategy n the rural #onte(t s whether the )rodu#t s sold n the ur1an market #an 1e suppl ed to the rural market as t s * or whether t must 1e adapted $ It depends on the s tuat on and the nature o! the produ#t .4as #ally * the ! rm must ! nd out what k nd o! produ#t s a#tually re:u red 1y the rural #onsumer and then de# de ! t should make an altogether d st n#t produ#t or adapt the e( st ng produ#t$ E#onom # and n#ome real t es o! the market should #erta nly 1e #ons dered wh le de&elop ng the produ#t strategy !or the rural market $ when produ#ts are des gned re!le#t ng 1oth these n!luen#es *the #han#e o! su##ess s greater$ Lower pr #ed produ#t &ers ons do help n many #ases n the rural market *1ut no general 9at on #an 1e made n th s regard $ Many #ompan es try to redu#e the pr #es o! the r produ#ts !or the rural market 1y #reat ng smaller s 9e *m or 1y de#reas ng the :ual ty $ The approa#h works somet mes and w th some produ#ts* 1ut not all t mes* w th all produ#ts$

Speci*ically 8 (esigned )roducts:'pe# ! #ally Mdes gned produ#t to help n many #ases

TRACTOR >TRAILER :
The tra#tor Jtra ler s an apt e(ample$ It s a produ#t spe# ! #ally des gned !or the rural market$ It s des gned as a repla#ement !or the plough as well as a &eh #le !or transport ng 1oth men and mater al n rural areas$

EVEREADY?S 6EEVAN SATHI TORCH:

E&eready Is Nee&an 'ath 1rass tor#h s another e(ample o! suu#esss!ul rural spe# ! # produ#t strategy$ In t ally E&eready2s 1rass tor#h was not p #k ng up well n the rural areas $ +n on #ar1 de laun#hed a market resear#h study !or lo#at ng the reasons$ The study 1y the ad agen#y O4M !ound that the rural !olks re"e#ted the tor#h s n#e all o! ts parts are not made o! 1rass $the des gn * de&eloped a1road* had g &en the produ#t #erta n plast # parts* l ke the re!le#tor$ The Ind an rural #onsumer !elt that the plast # parts would not dura1le $ O4M also !ound that the rural people were prepared to pay h gh pr #es !or the same tor#h ! t were made 2all 1rass2$ E&eready then

ntrodu#ed !or the rural market the all 1rass tor#h des gned to last l !e long and pos t oned t INee&an 'ath 2 as a Il !e long I #ompan on$

MODEL VARIANT:
Models de&eloped spe# ! #ally !or the rural market ha&e !ound more takers n the market $ ,or nstan#e* Motor#y#les that are des gned to take on the r g ours o! rural roads ha&e su##eeded more n the rural market$

COLOUR VARIANT :
The rural #onsumer d !!er !rom the r ur1an #ous ns n #olour pre!eren#e $ n #ase o! some produ#ts * #olour may matter &ary mu#h $ ! rms #an e(plo t th s !a#t to the r ad&antage $ ,or e(ample * A'IAN )AINT' understood the su1stant al d !!eren#e 1etween the rural 1uyer n the #olour pre!eren#e $ As an )a nts ntrodu#ed pa nts w th 1r ght #olours !or the rural markets $ As an )a nts also #ommun #ated the !eature well through ts #ommun #at on #ampa gns$

(i**erent products5 models 4 (i**erent brands4 pac3ing4 pricing and di**erent positioning:4y and large* the rural market #an 1e tapped 1etter through d !!erent produ#ts J models * d !!erent 1rands* d !!erent pa#kag ng and d !!erent pos t on ng$

PACKAGE DESIGN AND PACK SI@E:

In some #ase * the produ#t #an 1e the same * 1ut the pa#kage and pa#k s 9e may ha&e to 1e d !!erent !or the rural target group$ )a#kage des gn and #olour help dent ! #at on o! 1rands 1y rural 1uyers $ Many rural #onsumers are not :u te #on&ersant w th &ar ous 1rands $All the same* they manage to p #k the 1rand that they want $ They re#ogn 9e the 1rands 1y ts pa#kag ng $ Th s the reason why a num1er o! lo#al 1rands n rural areas m tate the pa#kag ng o! 1 g nat onal 1rands$ As regard pa#k s 9e * as a general * t #an 1e stated that smaller pa#ks are more su ted to the rural areas $ Low pur#has ng power and l m ted a&a la1 l ty o! #ash !or shopp ng !or#e the rural #onsumer to go n !or smaller pa#ks w th low un t pr #e$ In some #ases *they also pre!er small pa#ks so that they #an make a 1eg nn ng on small s#ale and a!ter tr al and sat s!a#t on go n !or regular pur#hases$

In re#ent years * sale o! shampoo 1rands were pr #ed at %e = or 1elow per sa#het helped the tra l and adopt on$ The @8gram - #ks -apour1 t n and the small Ms 9e L !e1uoy soap are other su#h e(amples$

.LL* has deepened #o&erage o! many o! ts produ#ts n the rural market through su#h #om1 nat on$ It has #ome up w th a ser es o! small pa#k s 9esJsa#hes that spe# ally #ater to low Mend #onsumers$

&ogo 4 Symbols and Mnemonics :

Image s !ar more potent the rural market * wh #h n many #ases s an un n t ated market$ 'ym1ols * there!ore * add &alue to 1rand re#all and 1rand personal ty n the rural market$

%sian )aints1 ,attu:As an )a nts Gattu though e:ually well known n ur1an and rural market * has greater e!!e#t &eness as an dent ty tool n the rural market $A#tually n many rural parts o! Ind a * As an )a nts s re!erred to as the bahahawala or chokrawala #ompany$

The 'irma ,irl:-

The N rma G rl n ,ro#k on the pa#ks o! N rma wash ng powder has 1e#ome the mnemon # !or e!!e#t &e and good &alue n wash ng powders$

The (ettol S2ord and the Mortein ,enie: ,or the same reason * %e#k ttK Colman has 1een !o#us ng on the Dettol 'word and the Morte n gen e n ts rural #ommun #at on$

Brand (ecisions :
4rand ng too needs sk ll!ul handl ng n the rural market$ The rural #onsumers ha&e already graduated !rom gener # produ#ts to 1randed produ#ts$ Today* the 1rand name s the surest means o! #on&ey ng :ual ty to rural #onsumers$ In other words* 1rand s the key to #on! den#e 1u ld ng among the rural #onsumers$ 4es des :ual ty* t #on&eys that the

manu!a#turer s go ng to show susta ned nterest n those produ#ts ands markets$ Whether the same 1rand s used n 1oth ur1an and rural market* or appropr ate &ar ants o! the 1rand must 1e adopted !or the rural market * s a matter !or #ons# ous de# s ons 1y the nd & dual ! rms depend ng on the #onte(t$ In :u te a!ew #ases * the Isame 1rand2 s pro& d ng r ght and #ost e!!e#t &e $ In some #ases* howe&er* the 1rand name that s su ted to the ur1an

market may not 1e :u te su ta1le to the rural market$ Low pr #ed &ar ants seem to work 1etter n ma"or ty o! #ases n the rural market$ It w ll* howe&er * 1e n#orre#t to assume that rural #onsumers pre!er lo#al 1rands to nat onal 1rands$

Sell #alue Brands4 'ot "heap BrandsA

Wh le 1rands spe# ! #ally de&eloped !or the rural market and low M pr #ed &ar ants may work 1etter n many #ases * the strategy should 1e one o! sell ng &alue 1rands $ .LL2s L !e1uoy* !or e(ample* s a low Mpr #ed #ar1ol # soap that s o!ten the ! rst #ho #e o! 1ath soap 1y a rural #onsumer $.LL* howe&er * does not sell t as a #heap soap$ Instead* sell t as a hyg ene 1rand$ It #ommun #ates the &alue o! the 1rand to the target market$ It also tr es to enhan#es the &alue o! the o!!er 1y g & ng su ta1le Iadd8ons2 $!or e(ample* wh le target ng rural students !or the soap * t d str 1uted he ght #harts along w th the soap and #on&eyed ts #on#ern !or the r health and well 1e ng $ %ural marketers would do well to add some &alue to the r produ#ts n th s !ash on ! they are keen to se#ure the loyalty o! the #onsumers$

C. )$-SI"%& (ISTRIBUTIO' :

The pro1lems !a#ed 1y the marketer n the )hys #al d str 1ut on n rural #onte(t are as !ollowsD8

The )roblems in Transportation and /arehousing :

It s well known that transportat on n!rastru#ture s :u te poor n rural Ind a $ Though the #ountry has the !ourth largest ra lway system n the world * many parts o! rural Ind a rema n outs de the ra l network $ As regards %oad transport * nearly @6 per #ent o! the @56*666 M odd & llages n the #ountry are st ll not #onne#ted 1y proper roads $ Wh le some mpro&ement s tak ng pla#e on a##ount o! the &ar ous rural de&elopment programmes* many areas st ll ha&e only KAC.A roads and most o! the nter ors ha&e hardly any roads worth ment on ng $As regards transport #arr ers * the most #ommon ones are del &ery &ans and the an mal drawn #arts$ 4e#ause o! the d !! #ulty n a##ess 1 l ty* del &ery o! produ#ts and ser& #es #ont nues to 1e d !! #ult n rural areas$ In warehous ng too* there are spe# al pro1lems n rural #onte(t$ 4us ness ! rms ! nd t :u te d !! #ult to get su ta1le godowns n many part o! rural Ind a$

"ost 8service (ilemma Becomes more %cute :

The ! rms #an not s mply rely on Itr #kle down o! sto#ks Ito the rural 1uyers$ They need a network o! #lear ng and !orward ng /#K!0 agents and d str 1utors at strateg # lo#at ons !or !a# l tat ng proper d str 1ut on o! the produ#ts n the rural market$ They ha&e to #omm t themsel&es to ser& # ng the & llages w ll help not only the a&a la1 l ty o! the produ#t* 1ut produ#t promot on as well$ In the matter o! transportat on* #om1 n ng d !!erent modes #an 1e #ost Me!!e#t &e$ Tru#ks !or med um d stan#e mo&ement and del &ery &ans and 1ullo#k #arts !or lo#al haulage may ser&e the purpose 1etter$ Water transport too has a role n spe# ! # areas 4ullo#k #arts ha&e a spe# al role on rural d str 1ut on* espe# ally n tert ary transport$ They are #heaper3 they are a&a la1le n plenty and are deal !or the rural roads$

The (elivery #an A

The del &ery &an has a key role n rural d str 1ut on The #ompan es #on#erned and the r C K , agents Jsto#k st J d str 1utors operates these &ans$ Compan es l ke . ndustan le&er and ITC * who are p oneers n rural market ng n Ind a* ha&e a !leet o! #ompany del &ery &ans !or rural d str 1ut on $ The &an take the produ#ts to the reta l shops n e&ery nook and

#orner o! the rural market $ It ena1les the ! rms to esta1l sh d re#t #onta#t w th rural dealers and #onsumers$ It also help the ! rm n promot on $ 4ut the #ost o! operat ng su#h &ans s :u te h gh $ , rms l ke .LL and ITC had the resour#es as wells the w sdom to #ons der &an as n t al n&estment n the market$ Through the &an * they were not only sol& ng the r transportat on pro1lem o! the rural market* 1ut were also de&elop ng the market !or the r produ#ts$

D. "hannel Management :
Organ 9 ng market ng #hannels s the se#ond part o! the d str 1ut on task $

Multiple tier add to the cost :

The d str 1ut on #ha n n rural #onte(t usually re:u res more t ers* #ompared w th he ur1an d str 1ut on #ha n $ The d stan#e 1etween the produ#t on po nts and the rural market * and the s#attered lo#at on o! the #onsumer make t ne#essary $ At the m n mum* the d str 1ut on #ha n n the rural #onte(t need three t ers $e$ The & llage shopkeeper* the d str 1utor * and the Whole sellerJ sto#k stJ CK, agent n the town $ n add t on t n&ol&es the manu!a#tures2 1ran#h o!! #e operat ons n the terr tory$

)rodu#ers who #an rea#h the #ustomers through the shortest d str 1ut on #ha n #an do 1etter n th s market$

'on-%vailability o* (ealers :, rms ! nd that a&a la1 l ty o! dealers s l m ted and the s#ope !or appo ntment !resh J e(#lus &e dealers o! the #ompany s e:ually l m ted n & ew o! the low demand and non8a&a la1 l ty o! su ta1le #and dates$

)oor viability o* the outlets :A good num1er o! reta l outlets n the rural market su!!er !rom poor & a1 l ty $ A !am l ar parado( n rural d str 1ut on s that on the one hand the manu!a#turer n#urs add t onal e(panses on d str 1ut on and on the other hand * the reta l outlets ! nd that the 1us ness s un M remunerat &e to them$ The add t onal !unds the manu!a#turers pumps nto the system are used 1y the s#attered nature o! the market and the mult pl # ty t ers n the d str 1ut on #ha n$

Inade9uate ban3ing and credit *acilities :

D str 1ut on n rural markets s also #apped due to the la#k o! ade:uate 1ank ng and #red t !a# l t es$ It s est mated that there s only one 1ank

1ran#h !or e&ery @6 & llages$ %ural outlets need 1ank ng support !or two mportant purposesD /=08 ,or rem ttan#es to pr n# pals and to get !ast replen shment o! sto#ks $ /B08 ,or se#ur ng #red t$ , rms ha&e 1een n sear#h o! a low8 #ost system o! d str 1ut on w th the wholesaler ser& ng all the reta lers * n#lud ng the ones at the ta l M end * and the latter ser& # ng the #onsumer $ Th s s the strategy !ollowed 1y N rma to #ompete w th .LL$ N rma rel es on the wholesaler network $ .LL s try ng to get around the pro1lem 1y g & ng #red t to the d str 1utors$

E. Mar3eting "ommunication:In market ng #ommun #at on and promot on too* rural markets pose many pro1lems$ The l tera#y rate among the rural #onsumers 1e ng low* the s#ope !or us ng the pr nted word s rather l m ted$ The trad t onal 1ound nature o! the people and he r #ultural 1arr ers add to d !! #ulty o! the #ommun #at on task$ Market ng #ommun #at on n the rural areas has to 1e ne#essar ly n the lo#al language and d om$ %ural #ommun #at on s :u te e(pans &e$ %ural #ommun #at on has to go through the t me #onsum ng stages o! #reat ng awareness* alter ng

att tudes and #hang ng 1eha& or$ In add t on* t has to 1reak the deep8 rooted 1eha& our pattern$

Managing the communication tas3:

The rural #ommun #ator w ll do well to #hoose a #om1 nat on o! !ormal and non !ormal med a$ The poss 1 l t es are nd #ated n 1elow ta1leD8

POSSIBLE MEDIA MI= IN THE RURAL CONTE=T F4&B'( > 4&.'-,2*0 B*0,' N4- <4&B'( >R%&'( S;*3,<,3 M*0,' TAud o8- sualJ)u1l # ty -ans C nema %ural spe# ! # art !orms l ke puppet show and .A%IK.AT.A$ %ad o Demonstrat ons Meet ng *Announ#ements* )r nt Med a8)ress Other )r nt Med a )ro#ess ons Capar soned elephants and de#orated 1ullo#k #arts #arry ng ad&ert sement panels Mus # re#ords$

Outdoor )O)s

Selecting The Media Mi6 :

T# :
W th he n#rease n #o&erage and n#rease n T- ownersh p n rural areas * T- s gradually 1e#om ng the pr me med a !or rural #ommun #at on $

"inema :
The # nema s a use!ul med um n rural #onte(t $ most large and med um & llages ha&e one or more # nema house$ Also* more than one8th rd o! all rural people do see # nema as a matter o! regular l !estyle$ Ad&ert sement ! lms * short !eature ! lms* w th d sgu sed ad&ert sement message* and do#umentar es that #om1 ne knowledge and ad&ert sements* #an 1e employed !or rural #ommun #at on$ It has 1een est mated that GG per #ent o! the total # nema earn ngs n the #ountry #ome !rom rural Ind a$

Radio:
The rad o s well 8esta1l shed med um n rural areas$ A 1 g e(pans on n 1road#ast ng !a# l t es has taken pla#e n the #ountry o&er the years$ The a&a la1 l ty o! rad o sets has also e(panded$ Wh le rad o as a med um #annot mat#h T- n poten#y and e!!e#t &eness* n the e( st ng #onte(t * t #an #erta nly play a s gn ! #ant role n rural #ommun #at on$

)rint media too has some scope :

The role o! pr nt med a s #erta nly l m ted n the rural #onte(t$ E&en the remotest rural parts ha&e a small group* wh #h s l terate$ Moreo&er* wh le the group may 1e numer #ally small * ts mem1er usually happen to 1e the op n on leaders * n!luen# ng the pur#has ng 1eha& our o! the large segment o! the rural #onsumers$ so* t would 1e unw se to assume that the pr nt med a has no s#ope at all n the rural areas $ Moreo&er* the younger generat on n the rural areas s #omparat &ely more l terate$ W th the new trend o! n#reas ng rural l tera#y * the s#ope !or us ng pr nt med a n rural #ommun #at on w ll n#rease !urther$

Outdoor:
The outdoors * wh #h n#lude hoard ngs* wall pa nt ngs* llum nat on and other d splays* also lend well !or rural #ommun #at on $ In !a#t * many #ompan es are us ng the outdoors n the rural #ommun #at on m ($

)O)s: print o* purchase; :

The )O)s M )o nt o! pur#hase promot onal tools8 are also :u te use!ul n the rural markets$ The )O)s meant !or the rural market should 1e spe# ally des gned to su t the rural re:u rements$ 'ym1ols* ) #tures* and #olours must 1e l 1erally n )O)s meant !or the rural market$ Colour s o! part #ular s gn ! #an#e $ As a general rule *the rural people lo&e 1r ght #olours$ The e!!e#t &e Commun #ator ut l 9e su#h #ues$

%udio-visual 5 publicity vans :

The A- un t or the pu1l # ty &an s &ery use!ul !or the rural

#ommun #at on $The &an s a #omprehens &e mo1 le promot on stat on at the e(#lus &e #ommand o! the #on#erned ! rm$ The ! rm #an e(h 1 t ts ! lms and other aud o8& sual presentat ons* su#h as sl de shows* sound and s ght presentat ons* puppet shows et#$ !rom the nstant promot on stat on$ A pota1le shamiana or )lat!orm o!ten !orms a part o! the &an$ E&en pu1l # meet ng #an 1e organ sed us ng the pota1le shamiana . The &an #an also 1e used !or the sale #ampa gn$ It #an also 1e used !or )rodu#t demonstrat on$ Naturally* the A- &ans are :u te popular w th rural market ng ! rms2 $)ra#t #ally all ! rms n the agr M nputs 1us ness ha&e the r own A&ans !ollowed 1y those market ng #onsumer dura1les$

Colgate8)almol &e has supply &ans that o!!er the !ree samples and s#reen & deo ! lms on oral hyg ene$ It has an on M go ng rural &an programme* wh #h #o&er on an a&erage ?6 m ll on rural #onsumers per year$ -ans are supplemented w th 1 #y#le &endors* who go to & llages not a##ess 1le 1y the &ans$ Godre" has &ans that play mus # and announ#e !ree g !ts n the & llage s:uare$ The &an than goes to !ew shops n the & llages to sell the produ#t$

Syndicated %# vans :
In re#ent years* rural A- &ans ha&e 1e#ome a shara1le ser& #e$ , rms wh #h #an not a!!ord to operate &ans o! the r own* ut l 9e synd #ated A- &an ser& #e o!!ered 1y ndependent agen# es$

Multi-purpose vans: ain T#1s #ideo -on-2heels :%e#ent years ha&e w tnessed the emergen#e o! tools that are more nno&at &e than the A- &an$ Nan T-Is - deo M on8 wheels s one o! them$

)uppet sho2s4 $ari3hatha :

)opular enterta nment programmes l ke puppet show * dan#e* dramas* and Harikathas * spe# ally de&eloped !or the produ#t8 promot on purpose * are now 1e ng used n rural markets$ The trad t onal art !orms read ly render !or #ommun #at on w th rural so# ety $ - llage !a rs * !est &als and melas are deal &enues !or pro"e#t ng these programmes$ In #erta n #ases * pu1l # meet ng too many 1e used !or rural promot on$

Music "assettes :
Mus # #assettes are another e!!e#t &e med um !or rural #ommun #at on$ It #an 1e rea#hed s an appeal ng and a #omparat &ely ne(pens &e med um$ D !!erent language groups #an 1e rea#hed w th low 1udget$ They #an 1e played n # nema houses or n other pla#es where rural people assem1le$

$&& rural speci*ic communication *or Sur* :

,or propagat ng I'ur!2* . ndustan Le&er 1rought out separate ad&ert sement ! lms !or the ur1an and rural aud en#e$ In the ! lm meant !or the rural aud en#e* the #ompany took part #ular #are to demonstrate step81y8step the method to 1e adopted n wash ng w th sur! !or gett ng the 1est wh ten ng

e!!e#t$ The #ompany knew that an ela1orate demonstrat on was essent al !or the rural aud en#e$

RESEARCH METHODOLOGY In order to #arry out any resear#h n&est gat on there s a need o! a 'ystemat # method and to adopt a well de! ned pro#edure !or ea#h and e&ery resear#h there s also a need o! methodology $ Methodology o! any resear#h #onst tutes the sele#t on o! representat &e sample o! the un &erse or the general populat on * appl #at on o! the appropr ate

resear#h tools and the te#hn :ues$

There s an old say ng n 'pa n ;TO 4E A 4+LL,IG.TE% PO+ M+'T LEA%N TO 4E 4+LL< means you ne&er really understand a )erson unt l you #ons der th ngs !rom h s po nt o! & ew $ In the same way to meet and sat s!y the target #ustomer the study o! #ustomers 1eha& our o! #ru# al mportant 1e#ause he s k ng$ Customer 1eha& our stud es * how nd & duals * groups and organ 9at ons sele#ted 1uy use and d spose o! goods * ser& #es* deas or e(per en#es to sat s!y the r needs and des res$

A##ord ng to NAME' ,$ ,+GAL* ;Customers 1eha& our #ons sts o! the a#ts o! nd & duals n o1ta n and us ng goods and ser& #es n#lud ng the de# s on pro#ess that pre#ede and determ ne these a#ts$

The resear#h n&ol&es the !ollow ng stepsD8 1. DEFINE THE PROBLEM AND RESEARCH OB6ECTIVE: I! the pro1lem s #learly de! ned * t s hal! sol&ed $ The pro1lem

J O1"e#t &e here to ! nd out how to penetrate the rural market !or ,MCG se#tor$

COLLECT THE INFORMATION : The n!ormat on s #olle#ted !rom se#ondary sour#es8 we1s tes *

maga9 nes * newspapers * and maga9 nes$

3 ANLAY@E THE INFORMATION : The ne(t step n the market ng resear#h pro#ess s to e(a#t ! nd ngs !rom the #olle#ted data .

# PRESENT THE FINDINGS AND CONCLUSIONS : As the last step *the ! nd ngs and #on#lus on o! whole resear#h are presented n the end $

INTERPRETATION
Rural Mar3eting Becomes %ttractive To "orporate :

A &ar ety o! !a#tors ha&e rendered the rural market :u te attra#t &e to #orporate n re#ent years$

The grow ng opportun ty n the rural market s no dou1t the pr me !a#tor$ The rural demand has 1een grow ng rap dly and ts #ompos t on has 1een #hang ng !or the 1etter n the re#ent years$ The n#reased n#omeJ pur#has ng power o! the rural #onsumer and the mpro&ed n#ome d str 1ut on has enhan#ed rural demand !or se&eral produ#ts$ 4etter a##ess to many modern produ#tsJ1rands has added to th s growth$ The heat o! #ompet t on n the ur1an market a#tually ser&es as the stronger dr &er 1eh nd the grow ng nterest o! #ooperates n the rural market$ The !a#t that the rural market s st ll largely an untapped as well as the early entrants #an tap t w thout ha& ng to !a#e ntense #ompet t on as n the #ase o! the ur1an market* makes the rural market all the more attra#t &e to them$

Corporate ha&e 1een ! nd ng the go ng n#reas ngly tough n the ur1an market * espe# ally !or the produ#ts n respe#t o! wh #h penetrat on le&els are already h gh $ ,or e(ample penetrat on le&el !or the toothpaste n the ur1an market has now rea#hed #lose to ?6 per #ent$ In #ontrast* t s 1elow G6 per #ent n the rural market$ Moreo&er n the ur1an market many #onsumers ha&e 1een us ng a toothpaste !or :u te some t me and ha&e settle down to the 1rand* ts !la&our * and other #hara#ter st #s $They #an not 1e e(pe#ted to sw t#h the r 1rand &ery eas ly $ In #ontrast* n rural markets*

there a lot o! ! rst t me users o! toothpaste whom the #ompany #an tap !rom the s#rat#h$ Corporate ! nd that the h ghly penetrated ur1an markets allow l ttle room !or &olume growths !or most o! what are #alled*2 ne#ess ty produ#ts2 /toothpaste* 1ath soap* wash ng produ#ts* tea et#0$ Growth opportun ty !or many o! the Iemerg ng produ#ts2 /#o!!ee* shampoo* tal#um powder et#0 too s rather low n the ur1an market $ The rural market thus 1e#omes essent al !or #ompan es w th strong asp rat ons$ Not #ompr s ng n the rural market keep them out o! a1out hal! o! the #ountry2s market !or the Ine#ess ty produ#ts2 and the one8th rd !or the Iemerg ng produ#ts2 1y &alue $It s 1ut natural that n these # r#umstan#es* #orporate set the r s ghts on the rural market

Many company have already ta3en to the mar3et in a Big /ay :

E=TENT OF RURAL SALES BY SELECTED COMPANIES C4B;'-C .LL COLGATE CAD4+%P 'MIT.KLINE 4EEC.AN .EINQ GLARO CI)LA %AN4ARP 'O+%CEDE34-4B,3 +,B*2 R%&'( S'(*27D 25'&*8 @6 @6 B@ B@ B6 B@ =? =5

E=TENT OF RURAL SALES BY SELECT INDUSTRIES

A1o&e

ta1les

shows

that

the

e(tent

o!

rural

sales

1y

sele#t

#ompan esJIndustr es$ Many #ompan esJ Industr es ha&e already taken to the rural market n a 1 g way$ It #an 1e shown !rom a1o&e ta1le that n the ,MCG Category* hal! o! the re&enue o! .IND+'TAN LE-E% and Colgates Come !rom the rural market $ In the #ase o! another #ompan es too* the #ountrys de a##ounts !or a su1stant al part /B@8G60 per #ent o! the total sales$ It #an also 1e seen that a1out One8, !th o! )harma sales o##ur n rural Ind a $

STRATEGIES ADOPTED BY DIFFERENT FMCG COMPANIES IN RURAL MARKETING

Strategies adopted *or rural mar3eting by di**erent .M", "ompanies :-

IT"<s e-choupal :ITCSs e8#houpal n t at &e s #hang ng the l &es o! !armers on a s#ale no other &enture has e&er done$ The #ompany s enter ng more than G6 new & llages a day* e&ery s ngle day o! the week* GC@ days a year$ Take a remote & llage$ Go to the smallest !armer there$ Edu#ate h m n the 1est !arm ng te#hn :ues$ In!orm h m o! da ly weather #ond t ons and pr #e mo&ements n the market$ Make a&a la1le to h m at h s doorsteps the 1est poss 1le seeds* pest # des and !ert l 9ers at the most #ompet t &e pr #es$ And when h s #rop s ready* help h m ! nd the 1est 1uyer$ Imag ne do ng all o! th s n G6*666 & llages a#ross s ( states season a!ter season* year a!ter year$ Do ng t at no #ost to the !armer and yet mak ng money !or yoursel!$ Imposs 1le* would 1e the most o1& ous &erd #t to su#h a proposal$ Pogesh Chander De&eshwar* #ha rman o! %s =B*666 #rore ITC* sa d when '$ ' &akumar* #h e! e(e#ut &e o! ts agr 81us ness* approa#hed h m w th an e:ually am1 t ous dea n B666$ Know ng that he was ask ng !or the moon* ' &akumar n t ally re:uested %s @6 lakh to test the dea among soya !armers n Madhya )radesh$ De&eshwar granted h m %s =6 #rore$ The rest* as they

say* s h story$ ITCSs e8#houpal network has already rea#hed G$= m ll on !armers* and s e(pand ng nto G6 new & llages a day8mak ng t #orporate Ind aSs most am1 t ous rural n t at &e e&er$ )artner ng ITC n the network are G5 #ompan es* NGOs and state go&ernments* together #reat ng a new e#osystem !or & llages and esta1l sh ng a d re#t l nk 1etween what #onsumers eat and what !armers grow$

T$! )O/!R O. <e<

The e8#houpal rede! nes #houpal* the . nd word !or & llage s:uare where elders meet to d s#uss matters o! mportan#e$ The all8 mportant letter n the word s TeT$ It stands !or a #omputer w th an Internet #onne#t on !or !armers to gather around and ntera#t not "ust among themsel&es 1ut w th people anywhere n the #ountry and e&en 1eyond$ It 1eg ns w th ITC nstall ng a #omputer w th solar8#harged 1atter es !or power and a -'AT Internet #onne#t on n sele#ted & llages$ The #omputerSs !un#t on ng s !reed !rom the notor ous power and tele#om !a# l t es at the & llage le&el$ A lo#al !armer #alled san#halak /#ondu#tor0 operates the #omputer on 1ehal! o! ITC* 1ut e(#lus &ely !or !armers$ The e8#houpal o!!ers !armers and the & llage #ommun ty ! &e d st n#t ser& #es$

,arm ng methods spe# ! # to ea#h #rop and reg on* so l test ng* e(pert ad& #e8mostly sour#ed !rom agr #ulture un &ers t es8all !or !ree$ )ur#haseD ,armers #an 1uy seeds* !ert l sers* pest # des and a host o! other produ#ts and ser& #es rang ng !rom #y#les and tra#tors to nsuran#e pol # es$ O&er G@ #ompan es ha&e 1e#ome partners n the e8#houpal to sell the r produ#ts through the network$ 'alesD ,armers #an sell the r #rops to the ITC #entres or the lo#al market* a!ter #he#k ng the pr #es on the Net$ De&elopment workD NGOs work ng !or #attle 1reed mpro&ement and water har&est ng* and women sel!8help groups are also rea#h ng & llages through e8 #houpal$ In some states !armers #an e&en a##ess the r land re#ords onl ne* s tt ng n the r & llage$ A##ess to health and edu#at on ser& #es through e8 #houpal 1eg ns ne(t month$ In many & llages e8#houpals ha&e 1e#ome the a( s around wh #h the lo#al #ommun ty re&ol&es$ 4e t !or a##ess ng newspapers onl ne n the morn ngs /many & llagers ha&e d s#ont nued the r newspaper su1s#r pt ons0 or #he#k ng the supply o! produ#ts they ordered on the Net* or wat#h ng mo& es on !arm ng te#hn :ues n the e&en ngs* !armers !re:uent e8#houpal at all t mes o! the day$ Ea#h e8#houpal #o&ers 1etween ! &e and s ( & llages$

!M)O/!RI', T$! SM%&&!ST

Ind an !armers typ #ally 1uy at reta l pr #es and sell the r produ#e at wholesale pr #es* los ng out on 1oth ends o! the deal$ 4y & rtually aggregat ng them* e8#houpal 1r ngs the power o! s#ale to the smallest o! !armers$ ITC ensures that there are at least two suppl ers o! all produ#ts sold through the e8#houpal$ ,armers #an pool the r demand* #ompare pr #es and pla#e orders on the Net$ 4arga n and #ho #e8two key & rtues o! #ompet t on8 are del &ered to the !armers r ght on the r doorstep$ When t s t me to sell the produ#e* e8#houpal helps the !armers 1y 1reak ng the monopoly o! lo#al markets that are #ontrolled 1y trade #artels$ In most mand s* !armers are #heated at se&eral stages8ar1 trary pr # ng* under we gh ng* delayed payments$ In +ttar )radesh* !armers lose 1etween =6 and G6 per #ent o! the r n#ome to su#h malpra#t #es$ ITC s sett ng up ts own pur#hase #entres n the s ( states #o&ered 1y e8#houpals$ The !armersS response has 1een o&erwhelm ng$ In B66=8B* the #ompany pur#hased C6*666 metr # tonnes o! #rop through e8#houpal$ 4y B66G8A the pur#hase n#reased to B*=6*666 tonnes and n !our months o! B66A8@* the #ompany p #ked up =*?6*666 tonnes o! !arm produ#e$ ,or !armers t s a w n8w n s tuat on$ ' tt ng n the r & llage* they #an #he#k the pre&a l ng pur#hase pr #e at the mand and the ITC #entre through e8

#houpal and sell where&er they w sh to$ ITCSs entry nto #rop pur#hase n&ar a1ly means a r se n mand rates too* 1ene! t ng e&en those !armers who #anSt sell to ITC$ In pla#es where ITC rates arenSt h gher than the mand rates* !armers are drawn to ITC #entres 1e#ause the #ompany uses ele#tron # we gh ng* 1etter :ual ty test ng and ensures spot payment$

IT"<S !- choupal achievement ItSs a#h e&ement D8 /=08 @*6@6 #houpals* B>*@66 & llages* G$= m ll on !armers$ /B08 +s ng e8#houpal to sour#e a range o! !arm produ#e /!oodgra ns* o lseeds* #o!!ee* shr mps0$ /G08 Market ng a &ar ety o! goods and ser& #es though e8#houpal/agr 8 nputs* #onsumer goods* nsuran#e* market resear#h0$ /A08Transa#t onsDU=66 n /B66G0$

STR%T!,- %(O)T!( B- $&& $industan &ever to e6pand )roject Sha3ti reach the rural mar3et:-

,MCG ma"or . ndustan Le&er w ll take ts )ro"e#t 'hakt * the rural d re#t8 to8home d str 1utor model* nat onal and rea#h out to =66 m ll on people n !our yearsS t me$ The pro"e#t s at present on n Andhra )radesh 1ut w ll 1e soon 1e rolled out to other remote & llages a#ross the nat on$ The target s to esta1l sh a##ess w th =66 m ll on people n G8A yearsS t me$The mportan#e o! the pro"e#t s rural e#onomy had mmense potent al and they were the #onsumers o! tomorrow$ 'upported 1y m #ro8#red t* the women !rom sel!8help groups were .LLSs rural d re#t8to8home d str 1utors$ The dea 1eh nd )ro"e#t 'hakt was to help the #ompany rea#h* penetrate and #ommun #ate w th rural #onsumers$ The n t at &e 1ene! ted women n more than A*5@6 & llages$

#ISIO' O. T$! )RO !"T:The & s on was to #hange the l &es o! women n =66*666 & llages 1y mak ng them 'hakt dealers$ Th s would pro& de e#onom # opportun t es !or the underpr & leged wh le #reat ng a d str 1ut on and #ommun #at on #hannel !or 1rands to a##ess untapped rural markets w th a #onsumer 1ase o! =66 m ll on rural Ind ans$

STR%T!,- %(O)T!( B- "O"%-"O&%

Co#a8Cola Ind a dou1led the num1er o! outlets n rural areas !rom ?6*666 n B66= to =C6*666 n B66G* wh #h n#reased market penetrat on !rom =G per #ent to B@ per #ent$ It 1rought down the a&erage pr #e o! ts produ#ts !rom %s =6 to %s @* there1y 1r dg ng the gap 1etween so!t dr nks and other lo#al opt ons l ke tea* 1utter m lk or lemon water$ It dou1led the spend on Doordarshan* n#reased pr #e #ompl an#e !rom G6 per #ent to @6 per #ent n rural markets and redu#ed o&erall #osts 1y A6 per #ent$ It also tapped lo#al !orms o! enterta nment l ke annual haats and !a rs and made huge n&estments n n!rastru#ture !or d str 1ut on and market ng$ %esultD the rural market a##ounts !or ?6 per #ent o! new Coke dr nkers and G6 per #ent o! ts &olumes$ The rural market !or Co#a8Cola grew at G5 per #ent o&er the last year* aga nst a BA per #ent growth n ur1an areas$ )er #ap ta #onsumpt on n rural areas has dou1led n the last two years$

The laun#h o! the %s @ pa#k has reaped r #h d & dends n terms o! sales and the 1ottles are e(pe#ted to a##ount !or @6 per #ent o! the #ompanySs sales n B66G$ Co#a8Cola s "ust one e(ample$ A lot o! !ast8mo& ng #onsumer goods and #onsumer ele#tron # #ompan es are aggress &ely target ng rural #onsumers$ The ne#ess ty arose 1e#ause the growth rates o! #onsumer produ#ts were slow ng down not 1e#ause the markets were gett ng saturated n terms o! penetrat on$ Wh le o&erall &olumes #ont nue to grow reasona1ly well* there are too many players eat ng nto ea#h otherSs market share$ The #ompan es* there!ore* redu#e pr #es n ur1an areas and n&est hea& ly n sales promot on* ntens !y ng the 1attle !or market share$

The #ompan es* there!ore* redu#e pr #es n ur1an areas and n&est hea& ly n sales promot on* ntens !y ng the 1attle !or market share$ Operat ng marg ns #ome under pressure and new growth markets ha&e to 1e e(plored$ Th s s where the rural markets play an mportant role$ The rural market was tempt ng s n#e t #ompr sed 5A per #ent o! the #ountrySs populat on* A= per #ent o! ts m ddle #lass* @? per #ent o! ts

d sposa1le n#ome and a large #onsum ng #lass* Co#a8Cola Ind a CEO 'an" & Gupta sa d$ Today* real growth s tak ng pla#e n the rural8ur1an markets* or n the =G*==G & llages w th a populat on o! more than @*666$ O! these* >*>?? & llages are n se&en states 88 +ttar )radesh* 4 har* West 4engal* Maharashtra* Andhra )radesh* Kerala and Tam l Nadu$ ,or manu!a#turers o! #onsumer goods* these are the markets to look out !or$ Wh le the =>?6s saw a 1oom n Class I towns w th the spread o! tele& s on* the Class II towns showed strong growth n the >6s propelled 1y re!orms$ A##ord ng to the Nat onal Coun# l !or Appl ed E#onom # %esear#h* the m llenn um 1elongs to the Class III and I- rural8ur1an towns$ It est mates that an a&erage rural Ind an household w ll ha&e ! &e ma"or #onsumer appl an#es 1y B66C* almost dou1le o! what t had ! &e years ago$ In order to e!! # ently and #ost8e!!e#t &ely target the rural markets* the #ompan es w ll ha&e to #o&er many ndependent reta lers s n#e n these areas* the reta ler n!luen#es pur#hase de# s ons and sto#k a s ngle 1rand n a produ#t #ategory$ In su#h an en& ronment* 1e ng ! rst on the shel! and de&elop ng a pr & leged relat onsh p w th the reta ler s a sour#e o! #ompet t &e ad&antage to #onsumer good #ompan es$

Most o! the #ompan es ha&e started t nker ng w th pa#k s 9es and #reat ng new pr #e po nts n order to rea#h out to rural #onsumers s n#e a s gn ! #ant port on o! the rural populat on are da ly wage workers$ Thus* sa#hets and m n ature pa#ks* as n the #ase o! shampoo sa#hets pr #ed at %e = and %s B or toothpaste at %s =6* ha&e 1e#ome the order o! the day n h nterland Ind a and help mpro&e market penetrat on$ Pet* dr & ng #onsumpt on o! goods n rural areas s not "ust a1out lower ng pr #es and n#reas ng &olumes 1ut also a1out produ#t nno&at on and de&elop ng nd genous produ#ts to #ater to the r demands$ ,or e(ample* soap makers use ad&an#ed te#hnology to #oat one s de o! the soap 1ar w th plast # to pre&ent t !rom wear ng out :u #kly$ Also* the #ompan es need to turn to nno&at &e methods o! ad&ert s ng l ke !a rs or haats to rea#h the r potent al #ustomer 1ase$ Two years ago* many #ompan es #ongregated at the Ganges r &er !or the Kum1h Mela !est &al* where a1out G6 m ll on people* mostly !rom rural areas* were e(pe#ted to #ome o&er the span o! a month$ The #ompan es pro& ded Stou#h and !eelS demonstrat ons and d str 1uted !ree samples$ Th s pro&ed to 1e e(tremely e!!e#t &e n ad&ert s ng to the rural market$

DATA ANALYSIS AND INTERPRETATION 1.FRE"UENCY OF PURCHASE :

B$BRAND CONCIOUSNESS

3.PLACE OF PURCHASE

#.PRICE AFFORDABILITY

$.PACKAGING PREFERENCE

E.FEATURE OF PREFERENCE

RECOMMENDATION / SUGGESTION

=$ Ad&ert sements on rural med a l ke rad o* press med a has 1een n#reased $ B$ )hys #al D str 1ut on #hannel must 1e made strong$ G$ Awareness a1out the produ#t must 1e n#reased among the peoples$ A$ )ro! t Mmarg n per#entage o! the produ#t !or the reta lers should 1e n#reased$ @$ The rural #ustomers are usually da ly wage earners and they don2t ha&e monthly n#omes l ke the ones n the ur1an areas ha&e$ 'o the pa#kag ng s n smaller un ts and lesser8pr #ed pa#ks that they #an a!!ord g &en the r k nd o! n#ome streams$ #olour that attra#ts h m s also mportant$ C$ A d !!eren#e n the k nd o! med a m ( that s used to #on&ey the messages to the rural #ustomers$ We need to use d !!erent them as what appeals to the ur1an due to &ary ng l !estyles$ The models and means to rea#h Then a th ng l ke the

#ustomer may not appeal to h m

#ommun #at on and the des gn o! t are also

d !!erent as what attra#ts one need not attra#t the other as well$ 'o aga n* e&en ! the med a rea#hes h m* there m ght not 1e an mpa#t as t may

!a l to attra#t h m as !a ls to #onne#t to t due to the l !estyles 1e ng d !!erent$

5$ In!rastru#ture l ke8 road* ele#tr # ty !a# l ty must 1e mpro&ed 1e#ause most o! the MNC2s tap the rural market due to su#h d !! #ult es$ ?$ In ad&ert s ng lo#al languages #an 1e used to attra#t more and more & ewers$

THE CHANGING FACE OF FMCG MARKETING IN RURAL SECTOR ,MCG /,ast Mo& ng Consumer Goods0 market ng s no more go ng to 1e the same aga nF The #hang ng #onsumer m ndset thanks to more knowledgea1le and d s#ern ng #ustomers #oupled w th #hang ng

#ompet t on and saturated market s g & ng a tough t me to the ,MCG marketers$ The #hanged s#enar o not only demands a new game plan w th a sharp and de# s &e strategy 1ut also a lot o! #reat & ty and ns ght$ 'ome o! the players n Ind an ,MCG ndustry ha&e already taken a lead and are smartly mo& ng to #hart a su##ess story !or the r 1rands$ 'ome 1rands that reaped magn ! #ent d & dend !rom adopt ng a new strategy are Fairever, Ujala, Ghadi detergent* Chik* and Dandi namak$ The greatest #hallenge !or managers s to & sual 9e an a#t &e market when what e( sts s a1"e#t po&erty$ These su##ess!ul 1rands are "ust do ng that8 !o#us ng on untapped markets$ Take the e(ample o! Dandi namak$ Who

would ha&e ad& sed them to enter the 1randed salt market when Tata and .LL & rtually share the whole market among themH 4ut they entered th s #ategory when #on&ent onal w sdom sa d no$ And they 1e#ame a su##ess story o&ern ght$ $They entered the market not to #ompete w th Tata and .LL* 1ut w th the !o#us to take 1randed salt to rural and sem 8ur1an areas$ W th th s narrow !o#us* they not only #aptured a large rural and sem 8ur1an market 1ut also got some share o! the ur1an market due to ru1 o!! e!!e#t$ Moreo&er* these small players !ully real 9e that n today2s world* market ng needs money$ 'o they don2t shy away !rom n&est ng n market ng$ Aga n take the e(ample o! Dandi namak$ They splashed out money on the r lengthy T- #ommer# als to ensure that the message gets ngra ned n the m nd o! the prospe#t$ Fairever and Ujala adopted the same strategy$ O! #ourse they don2t spend as mu#h as the MNCs do 1ut they do spend enough to get attra#t on$ One o! the mportant aspe#ts o! the strategy 1e ng adopted s e!!e#t &e #ommun #at on a1out produ#t$ $ Take the #ase o! Dandi namak$ The Tad&ert sement was 1land and un nterest ng$ .owe&er* w thout any gl t9* t was a1le to #onne#t to ts target #ustomers 1e#ause t talked n the language o! ts target #ustomers$ These 1rands send a power!ul message to the r target #ustomers that they are made !or ea#h other$

ADVERTISING IN RURAL INDIA

%dvertising in Rural India: A dramat # #hange s n progress$ - llagers who used to #ra#k open peanut M K M #and es* eat the nut and throw away the shell are now demand ng #ho#olate #and es that w ll melt n the r mouths* not n the r hands$ Char#oal8#leaned teeth are a rare s ght3 so s the #ase w th tw gs o! niim /neem0 and babul /1a1ool0 tree$ Today* the ultra 1r ght sh ne o! Colgate or some other nternat onal 1rand o! toothpaste holds more appeal than the trad t onal methods o! #lean ng teeth$ E&en the nat &e e(press ons o! #lean ng teeth* su#h as daatun karnaa and musaag lagaanaa* are endangered to 1e ng repla#ed 1y new e(press ons su#h as paste karnaa* Sto 1rush teeth w th pasteS$ - llages and small towns* wh #h were on#e n#onse:uent al dots on maps* are now gett ng the attent on o! glo1al market ng g ants and med a planners$ Thanks to glo1al 9at on* e#onom # l 1eral 9at on* IT re&olut on* Ind an !emale power* and mpro& ng n!rastru#ture* m ddle #lass rural Ind a today has more d sposa1le n#ome than ur1an Ind a$ %ural market ng s ga n ng new he ghts n add t on to rural ad&ert s ng 1e#ause o! the !ollow ng reasonD8

-ar ous rural med a /#on&ent onal and non8#on&ent onal0 and ntegrated

market ng #ommun #at on$ In add t on to rural market d s#ourse* med a !orms su#h as wall pa nt ngs* #alendar ad&ert s ng* outdoor ad&ert s ng* pr nt* rad o and tele& s on ad&ert s ng In part #ular* un :uely Ind an med a !orms su#h as & deo &an te#hnology*

wh #h has #hanged the !a#e o! not only market ng 1ut also pol t #al #ampa gn ng$ %ural markets /haat0 wh #h are the mo1 le M#DonaldSs or Walmarts o! Ind a$ Target ng women and rel g ous groups n add t on to rural populat on$ Market ng ta1oo produ#ts su#h as S1 d S* # garettes* san tary suppl es* and

other su#h produ#ts Glo1al 9at on and ts e!!e#ts on produ#t nam ng* produ#t mon tor ng*

rural d s#ourse and med a !orms$ Creat & ty and de#ept on* together w th gu del nes !or ad&ert sers and

marketers$ In!ormat on stru#tures and log # o! rural ads$ Ads as a so# al 1arometer o! #hang ng relat onsh ps and &alue systems$

CONCLUSION

Where the rural market does o!!er a &ast untapped potent al * t should also 1e re#ogn 9ed that t s not that easy to operate n the rural market 1e#ause o! se&eral attendant pro1lems $ %ural market ng s thus t me #onsum ng a!!a r and re:u res #ons dera1le n&estment n terms o! e&ol& ng appropr ate strateg es w th a & ew to ta#kle the pro1lems $ The ma"or pro1lems !a#ed 1y manu!a#tur ng and market ng men n rural areas are des#r 1ed 1elowD8

=> Underdeveloped people and underdeveloped mar3et:The agr #ulture te#hnology has tr ed to de&elop the people and market n rural areas $ un!ortunately *the mpa#t o! the te#hnology s not !elt un !ormly through out the #ountry $wh le there are po#kets8 some d str #ts n pun"a1 * .aryana or western +ttar )radesh M where a rural #onsumer s some what #ompara1le to h s ur1an #ounterpart * there are lager areas and groups o! people who ha&e rema ned 1eyond the te#hnolog #al 1reak thorough $ E&en today a1out 5@ d str #ts n #ounty are drought prone and none te#hnology worth the name has per#olated to n #rease n the standard o! l & ng o! these people n add t on *the small agr #ultural land hold ngs ha&e una1le to take ad&antage o! new te#hnolog #al 1reakthrough $ the num1er o! people 1elow po&erty l ne has not de#reased n any appre# a1le

manner$ Thus the rural markets* 1y large num1er* 1y and large are #hara#ter 9ed 1y underde&eloped market$$$ a &ast o! the rural people mage old #ustoms trad t on ha1 ts* ta1oos and pra#t #es

?> &ac3 o* proper physical communication *acilities:Nearly @67 o! the & llages s the #ountry do not ha&e & llages n the #ountry don2t ha&e all weather roads$ )hys #al #ommun #at on to these & llages s h ghly e(pens &e$ e&en today *most & llages s n eastern part today n 1y

na##ess 1le dur ng monsoon season $hen#e* d str 1ut on put

manu!a#turer pro&e e(pens &e and some t mes o! no #onse:uen#es $to 1e e!!e#t &e the produ#ts ha&e to 1e phys #ally mo&ed to pla#es o! #onsumpt on or pla#es to pur#hase$

@> Media *or rural communication:Among the mass med a* at some po nt o! t me* say n late @6s or early C6s *rad o was #ons dered to 1e a potent al *med um !or #ommun #at on to the rural !am l es $ now the ad&ent and e(pans on o! tele#ast network appears !or easy #ommun #at on w th rural masses$ The :uest on s how many people a##ess & ew ng tele& s onH There s a need to e(am ne the ownersh p pattern o! tele& s on sets n rural areas to "udge the potent al rea#h o! th s med um$

Another e mass med a s # nema$ It has 1een o1ser&ed that # nema & ew ng s !a rly sat s!a#tory* where a&a la1le$ Mo1 le theaters are also good med um 1ut &ery e(pans &e #ompan es l ke .LL us ng these &ans !ound =6 to=B t mes h gher n rural areas than ur1an areas due to 1ad roads n areas$

A> $ierarchy o* mar3ets:%ural #onsumer has dent ! ed market pla#es !or d !!erent tems o! the r re:u rements$ 'o there #an not 1e un !orm d str 1ut on pattern !or all produ#ts$ It has 1een seen that >67 o! !armers & s ted the nearest town * where an agr #ultural produ#es assem1l ng market s s tuated at least on#e a :uarter !or e ther sell ng the produ#e or !or pur#hase o! there re:u rements$ 'o townJ mand #enters w th large h nterland & llages 1e#ome the !o#al po nt thus depend ng upon the pur#hase ha1 t o! rural people$ The d str 1ut on network !or d !!erent #ommod t es has to 1e d !!erent$

$. &o2 level o* literacy:The l tera#y rate s low n rural areas as #ompare to ur1an areas$ Th s aga n lead to the pro1lem o! #ommun #at on !or promot on purposes$ )r nt med um 1e#omes n e!!e#t &e and to an e(tent rrele&ant n rural areas s n#e ts rea#h s poor and so s the le&el o! l tera#y$ The dependent should 1e

more on ele#tron # med a # nema* rad o and tele& s on$ Wh le the e(#ess to # nema and rad o appears to 1e !a rly easy and #ommon$ n not so n #ase o! tele& s on$ Tele& s on ad&ert s ng s &ery e(pens &e$ )ro1a1le t w ll 1e prudent to take ad&antage o! su#h pro!ess onal rural ad&ert s ng agen# es$ The promot on o! produ#t along w th d str 1ut on s also 1e ng resorted to 1y many$

E. Seasonal demand:
The d str 1ut on o! any produ#t n rural areas agr #ultural nputs*

#onsuma1les or dura1le should ne#essar ly !ollow a seasonal pattern$ ' n#e 5@7 o! the rural n#ome s generated through agr #ultural operat on wh #h s seasonal so the demand pattern s also seasonal$ A typ #al e(ample s that o! !ert l 9ers$ The demand o! !ert l 9ers s always h gh dur ng the start o! khar ! and %a1 system the !ert l 9ers manu!a#turers ha&e e&ol&ed a d str 1ut on pattern so that the seasonal demand #an 1e met$ L ke w se the demand !or #onsuma1les and dura1le w ll 1e h gh dur ng the peek #rop har&est ng and market ng season$ $ Th s s the t me at wh #h the rural people ha&e su1stant al #ash n!lows$ .en#e the d str 1ut on should 1e !a rly ntens &e$ Dur ng har&est ng season th s arrangement would result n ade:uate sales real 9at on & se &ersa n summer months the demand w ll 1e &ery

low !est &als seasons l ke sankrant * poangal* &a sakh or depawal are also demand seasons$ 'o the d str 1ut on o! rural areas should 1e more and !re:uent dur ng the har&est and !est &al seasons as opposed to a !a rly un !orm demand pattern n ur1an areas$

F. Many languages and dialects:

E&en assum ng that med a are a&a la1le !or #ommun #at on or the #ompany #omm t ts own med a &ans the large num1er o! languages and d ale#ts &ery w ldly !rom statue to state and reason to reason$ The messages ha&e to 1e del &ered n lo#al3 languages and d ale#ts$ E&en though the num1er o! re#ogn 9ed languages s only =C* the num1er o! d ale#ts s est mated to 1e around ?@6$

G. &o2 per capita income:

E&en though a1out GG to G@ per#ent o! gross domest # produ#t s generated 1y rural areas$ It s shared 5@7 o! populat on hen#e the per #ap ta n#ome s low #ompared to ur1an areas$ Th s apart the d str 1ut on o! n#ome s h ghly s skewed$ ' n#e the land hold ng patterned tsel! s skewed thus the rural populat on present a h ghly heterogeneous seen$ $G &en the low per #ap ta n#omes and populat on spread n the & llages* what w ll 1e the o!! take o!

any produ#t 1y rural #onsumer* say !rom a & llage shopH What should 1e the n&entory le&els to 1e ma nta ned 1y a rural shopkeeper and how long w ll t take !or the rural areas shopkeeper to l :u date h s sto#kH I! a #ompany opts to d str 1ute the produ#ts up to & llage these aspe#ts re:u re &ery #are!ul #ons derat on wh le e&ol& ng d str 1ut on strateg es !or rural markets$

O))ORTU'ITI!S .OR (I..!R!'T .M", M'"1s

The Indian rural mar3et 2ith its vast si+e and demand base o**ers a huge opportunity that M'"s cannot a**ord to ignore :-

TO e(pand the market 1y tapp ng the #ountrys de* more and more MNCs are !oray ng nto Ind aSs rural markets$ Among those that ha&e made some headway are . ndustan Le&er* Co#a8Cola* LG Ele#tron #s* 4r tann a* 'tandard L !e* )h l ps* Colgate )almol &e and the !ore gn8 n&ested tele#om #ompan es$

Opportunity :

The Ind an rural market w th ts &ast s 9e and demand 1ase o!!ers a huge opportun ty that MNCs #annot a!!ord to gnore$ W th =B? m ll on

households* the rural populat on s nearly three t mes the ur1an$ As a result o! the grow ng a!!luen#e* !uelled 1y good monsoons and the n#rease n agr #ultural output to B66 m ll on tons !rom =5C m ll on tonnes n =>>=* rural Ind a has a large #onsum ng #lass w th A= per #ent o! Ind aSs m ddle8#lass and @? per #ent o! the total d sposa1le n#ome$ The mportan#e o! the rural market !or some ,MCG and dura1le marketers s underl ned 1y the !a#t that the rural market a##ounts !or #lose to 56 per #ent o! to let8soap users and G? per #ent o! all two8wheeler pur#hased$ The rural market a##ounts !or hal! the total market !or T- sets* !ans* pressure #ookers* 1 #y#les* wash ng soap* 1lades* tea* salt and toothpowder* What s more* the rural market !or ,MCG produ#ts s grow ng mu#h !aster than the ur1an #ounterpart$

The A% approach
The rural market may 1e allur ng 1ut t s not w thout ts pro1lemsD Low per #ap ta d sposa1le n#omes that s hal! the ur1an d sposa1le n#ome3 large num1er o! da ly wage earners* a#ute dependen#e on the &agar es o! the monsoon3 seasonal #onsumpt on l nked to har&ests and !est &als and spe# al

o##as ons3 poor roads3 power pro1lems3 and na##ess 1 l ty to #on&ent onal ad&ert s ng med a$ .owe&er* the rural #onsumer s not unl ke h s ur1an #ounterpart n many ways$ The more dar ng MNCs are meet ng the #onse:uent #hallenges o! a&a la1 l ty* a!!orda1 l ty* a##epta1 l ty and awareness /the so8#alled A As0

%vailability
The ! rst #hallenge s to ensure a&a la1 l ty o! the produ#t or ser& #e$ Ind aSs CB5*666 & llages are spread o&er G$B m ll on s: km3 566 m ll on Ind ans may l &e n rural areas* ! nd ng them s not easy$ .owe&er* g &en the poor state o! roads* t s an e&en greater #hallenge to regularly rea#h produ#ts to the !ar8 !lung & llages$ Any ser ous marketer must str &e to rea#h at least =G*==G & llages w th a populat on o! more than @*666$ Marketers must trade o!! the d str 1ut on #ost w th n#remental market penetrat on$ O&er the years* Ind aSs largest MNC* . ndustan Le&er* a su1s d ary o! +n le&er* has 1u lt a strong d str 1ut on system wh #h helps ts 1rands rea#h the nter ors o! the rural market$ To ser& #e remote & llage* sto#k est use auto r #kshaws* 1ullo#k8 #arts and e&en 1oats n the 1a#kwaters o! Kerala$ Co#a8Cola* wh #h #ons ders rural Ind a as a !uture growth dr &er* has e&ol&ed a hu1 and spoke d str 1ut on model to rea#h the & llages$ To ensure !ull loads* the #ompany

depot suppl es* tw #e a week* large d str 1utors wh #h who a#t as hu1s$ These d str 1utors appo nt and supply* on#e a week* smaller d str 1utors n ad"o n ng areas$ LG Ele#tron #s de! nes all # t es and towns other than the se&en metros # t es as rural and sem 8ur1an market$ To tap these une(plored #ountry markets* LG has set up A@ area o!! #es and @> ruralJremote area o!! #es$

%**ordability
The se#ond #hallenge s to ensure a!!orda1 l ty o! the produ#t or ser& #e$ W th low d sposa1le n#omes* produ#ts need to 1e a!!orda1le to the rural #onsumer* most o! who are on da ly wages$ 'ome #ompan es ha&e addressed the a!!orda1 l ty pro1lem 1y ntrodu# ng small un t pa#ks$ Godre" re#ently ntrodu#ed three 1rands o! C nthol* ,a r Glow and Godre" n @68gm pa#ks* pr #ed at %s A8@ meant spe# ! #ally !or Madhya )radesh* 4 har and +ttar )radesh E the so8#alled V4 maruS 'tates$ . ndustan Le&er* among the ! rst MNCs to real 9e the potent al o! Ind aSs rural market* has laun#hed a &ar ant o! ts largest sell ng soap 1rand* L !e1uoy at %s B !or @6 gm$ The mo&e s ma nly targeted at the rural market$ Co#a8Cola has addressed the a!!orda1 l ty ssue 1y ntrodu# ng the

returna1le B668ml glass 1ottle pr #ed at %s @$ The n t at &e has pa d o!!D

E ghty per #ent o! new dr nkers now #ome !rom the rural markets$ Co#a8 Cola has also ntrodu#ed 'un ! ll* a powdered so!t8dr nk #on#entrate$ The nstant and ready8to8m ( 'un ! ll s a&a la1le n a s ngle8ser&e sa#het o! B@ gm pr #ed at %s B and mut ser&e sa#het o! B66 gm pr #ed at %s =@$

%cceptability
The th rd #hallenge s to ga n a##epta1 l ty !or the produ#t or ser& #e$ There!ore* there s a need to o!!er produ#ts that su t the rural market$ One #ompany wh #h has reaped r #h d & dends 1y do ng so s LG Ele#tron #s$ In =>>?* t de&eloped a #ustom 9ed T- !or the rural market and #hr stened t 'ampoorna$ It was a runway h t sell ng =66*666 sets n the &ery ! rst year$ 4e#ause o! the la#k o! ele#tr # ty and re!r gerators n the rural areas* Co#a8 Cola pro& des low8#ost #e 1o(es E a t n 1o( !or new outlets and thermo#ol 1o( !or seasonal outlets$ The nsuran#e #ompan es that ha&e ta lor8made produ#ts !or the rural market ha&e per!ormed well$ .D,C 'tandard LI,E topped pr &ate nsurers 1y sell ng pol # es worth %s G$@ #rore n total preem e$ The #ompany t ed up w th non8go&ernmental organ 9at ons and o!!ered reasona1ly8pr #ed pol # es n the nature o! group nsuran#e #o&ers$

%2areness:-

W th large parts o! rural Ind a na##ess 1le to #on&ent onal ad&ert s ng med a E only A= per #ent rural households ha&e a##ess to T- E 1u ld ng awareness s another #hallenge$ ,ortunately* howe&er* the rural #onsumer has the same l kes as the ur1an #onsumer E mo& es and mus # E and !or 1oth the ur1an and rural #onsumer* the !am ly s the key un t o! dent ty$ .owe&er* the rural #onsumer e(press ons d !!er !rom h s ur1an #ounterpart$ Out ng !or the !ormer s #on! ned to lo#al !a rs and !est &als and T- & ew ng s #on! ned to the state8owned Doordarshan$ Consumpt on o! 1randed produ#ts s treated as a spe# al treat or ndulgen#e$ . ndustan Le&er rel es hea& ly on ts own #ompany8organ 9ed med a$ These are promot onal e&ents organ 9ed 1y sto#k est$ Godre" Consumer )rodu#ts* wh #h s try ng to push ts soap 1rands nto the nter or areas* uses rad o to rea#h the lo#al people n the r language$ Co#a8Cola uses a #om1 nat on o! T-* # nema and rad o to rea#h @G$C per #ent o! rural households$ It dou1led ts spend on ad&ert s ng on

Doordarshan* wh #h alone rea#hed A= per #ent o! rural households$ It has also used 1anners* posters and tapped all the lo#al !orms o! enterta nment$ ' n#e pr #e s a key ssue n the rural areas* Co#a8Cola ad&ert s ng stressed ts Vmag #alS pr #e po nt o! %s @ per 1ottle n all med a$LG Ele#tron #s uses &ans and road shows to rea#h rural #ustomers$ The #ompany uses lo#al

language ad&ert s ng$ )h l ps Ind a uses wall wr t ng and rad o ad&ert s ng to dr &e ts growth n rural areas$ The key d lemma !or MNCs eager to tap the large and !ast8grow ng rural market s whether they #an do so w thout hurt ng the #ompanySs pro! t marg ns$ Mr$ Carlo Donat * Cha rman and Manag ng8D re#tor* Nestle* wh le adm tt ng that h s #ompanySs produ#t port!ol o s essent ally des gned !or ur1an #onsumers* #aut ons #ompan es !rom plung ng headlong nto the rural market as #aptur ng rural #onsumers #an 1e e(pens &e$ TAny general 9at onT says Mr$ Donat * Ta1out rural Ind a #ould 1e wrong and one should !o#us on h gh GD) growth areas* 1e t ur1an* sem 8ur1an or rural$

LIMITATIONS OF THE STUDY A

The study s 1ased totally on the pr mary data as well as se#ondary data and su#h data relates to someth ng o! the past and not the e(a#t present s#enar o$ .en#e totally depend ng on su#h g &en data #ould at t mes 1e m slead ng* that s no matter how good the report s one has to do #erta n amount o! homework 1e!ore "ump ng to #on#lus ons on the 1as s o! su#h study$

Market ng a#t & ty s someth ng that s ne&er sta1le and s #onstantly #hang ng w th the #hang ng # r#umstan#es* e&er #hang ng rules and regulat ons that #ontrol these a#t & t es$ .en#e someth ng wh #h s &ery up8 to8date as o! now m ght 1e#ome o1solete n a &ery short span o! t me$ One has to 1e &ery #aut ous 1e!ore tak ng any de# s on 1ased on su#h data and has to th nk 1eyond what s g &en$ No amount o! data #an 1e a##urate enough to g &e the des red results$

Another ma"or draw1a#k w th respe#t to the study o! '#ope O! %ural Market ng ,or ,MCG Company In Ind a s that t s someth ng that has 1een here !or the past !ew years only and hen#e try ng to get mu#h n!ormat on regard ng t s also d !! #ult* and whate&er l ttle that s a&a la1le has to 1e

taken note o! and 1el e&ed nto$ Only a !ew stud es on the top # are a&a la1le and hen#e &ery !ew !a#ets o! t #an 1e seen$ A lot more #an 1e known a1out t 1ut at a later stage when t has grown n proport ons and s more !re:uently used 1y the &ar ous MNC2s !or n#reas ng the r market share and lot o! #ompet t on n#reases among the MNC2s and the ur1an market s saturated$

SCOPE OF THE FURTHER RESEARCH

The rural Ind a o!!ers a tremendous market potent al$ A mere one per#ent n#rease n Ind a2s rural n#ome translates to a m nd81oggl ng %s =6*666 #rore o! 1uy ng power$ Nearly two8th rds o! all m ddle8 n#ome households n the #ountry are n rural Ind a$ And #lose to hal! o! Ind a2s 1uy ng potent al l es n ts & llages$ Thus !or the #ountry2s marketers* small and 1 g* rural rea#h s on the r se and s !ast 1e#om ng the r most mportant route to growth$ %eal 9 ng th s Corporate Ind a s now n&est ng a s 9ea1le #hunk o! ts market ng 1udget to target the rural #onsumers$

Increasing brand a2areness

In the rural !am l es* stud es nd #ate a slow 1ut determ ned sh !t n the use o! #ategor es$ There s a remarka1le mpro&ement n the !orm o! produ#ts used$ ,or nstan#e* households are upgrad ng !rom nd genous teeth8#lean ng ngred ents to tooth powder and tooth8pastes* !rom trad t onal mos:u to repellant to #o ls and mats$ There s also a & s 1le sh !t !rom lo#al and un1randed produ#ts to nat onal 1rands$ ,rom low8pr #ed 1rands to prem um 1rands$

)rice promotion
In an o##as onal e!!ort to #apture &olume sale* mult nat onal 1rands use pr #e promot ons that o!ten y eld dramat #* ! temporary* sales n#reases n the rural areas$ The r large &olume n#reases re&eal a potent ally large market n the & llages that rema ns untapped* "ust 1elow the a#tual pr #e po nts$ To penetrate th s market and generate susta na1le &olume sales* a permanent produ#t entry at the lower pr #e po nt s re:u red$ ,a lure to re#ogn 9e the potent ally huge market o! the & llages that l es 1elow the sur!a#e o! nternat onal pr #e po nts #an e&en pla#e the prem um 1randed 1us ness at r sk

.M", consumption

Organ 9at ons l ke . ndustan Le&er Ltd$* N rma Chem #al Works* Colgate )almol &e* )arle !oods and Malhotra Market ng ha&e #ar&ed nroads nto the heart o! rural markets$ -ar ous #ategor es o! produ#ts ha&e 1een a1le to spread the r tenta#les deep nto the rural market and a#h e&ed s gn ! #ant re#ogn t on n the #ountry households$ And* n the pro#ess* the reg onal 1rands* lo#al 1rands and the other un1randed o!!er ngs got d spla#ed 1y the lead ng 1rands$

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O! the e(pend ture on #onsumer goods n rurahousehold* appro( mately* AA7 s on !ood art #les su#h as 1 s#u ts* tea* #o!!ee and salt* B67 on to letr es* =G7 on wash ng mater al* =67 on #osmet #s* A7 on OTC produ#ts and >7 on other #onsuma1les$ A num1er o! #ategory produ#ts ha&e esta1l shed themsel&es ! rmly n the rural households$

It s e& dent that n the & llages low8pr #ed 1rands are well a##epted and one m ght !eel that a larger proport on o! the pur#hases made n rural market #an 1e attr 1uted to lo#alJ un1randed players$ 'urpr s ngly* howe&er* the un1randedJlo#al #omponent #ontr 1utes to a su1stant al port on o! the &olume o! only a !ew o! the h ghly penetrated #ategor es$

C'+*.4&C

C'+*.4&C P*-*+&'+,4-

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T4,(*+ S4'; J1D W'25,-. 3')*2>B'&2 GGD E0(I(* 4,( T*' W'25,- ;4H0*& (,K%,0 S'(+ B,23%,+2 G#D FFD > FLD E#D E1D

L,<*I%4C W5**( D4%I(* I&'- M%2+'&0 L,;+4- T'::' N,&B' T'+' S'(+ P'&(* G

.ocus on urban categories

Though the #ommod ty produ#ts ha&e greater penetrat on* trad t onally ur1an #ategor es su#h as sk n #reams and tal#um powder ha&e also made a mark$ Wh le the ur1an tal#um powder market su!!ered a de8growth* the rural tal#um powder market darted ahead$ ' m larly* growth o! rural sk n #ream market was at par w th that o! ur1an sk n #ream market$ Th s #learly nd #ated that a!ter 1e ng #ons dered ur1an !or a long t me* some #ategor es are now wear ng a rural !a#e$ And* n many a #ase* t s the rural market that s a#tually dr & ng the growth o! #ategory$

)remium brands
)ond2s s the leader n the tal#um powder #ategory w th a penetrat on o! C@7 and &olume #ontr 1ut on o! @C7$ Its r &als & 9$ Ny# l and L r l are tra l ng !ar 1eh nd$ Moreo&er* C67 o! the )ond2s users ha&e pur#hased no

other 1rand $e$ they are =667 1rand loyal$ Th s re!le#ts the strength o! the 1rand n rural 1a9aar

C'+*.4&C S),- C&*'B T'(34B P4H0*&

H4%2*54(0 P*-*+&'+,41GD 1$D

In the sk n #are #ategory* ,a r K Lo&ely !a rness #ream* w th a penetrat on o! 5@7* a##ounts !or C67 o! the sk n #are market n rural Ind a$ It also en"oys t he und st ngu shed patronage o! @?7 o! ts user households$ 4oth )ond2s and ,a r K Lo&ely are en"oy ng a monopoly n the rural markets In the r respe#t &e #ategor es$

%ural Ind a s not a&erse to try ng out the prem um 1rands at h gh pr #es$ A study nd #ated that a ma"or ty o! the prem um 1rand users are us ng the 1rand !or the ! rst t me$ ' m larly 6$>7 o! the tal#um powder8us ng !am l es ha&e started us ng Den m tal# and 6$57 o! the shampoo us ng households started us ng )antene$ 'ur&eys also re&eal that tr als are not restr #ted to the more a!!luent e#helon o! the & llages$ The e(per ment ng households are more8or8less e&enly spread a#ross the &ar ous so# o8e#onom # #lusters o! the

rural market$ Th s should !urther en#ourage the marketers to !o#us the r attent on on rural 1uyers$

4rand 'ur! Ar el )antene Den m

)enetrat on o! Category users C$B67 A$@67 =$?67 =$?67

The rural youths are more open to !resh #on#epts as aga nst the r elderly !am ly mem1ers$ The r d !!eren#e n #ho #e o! produ#tsJ1rands w th the sen ors o! the households o!ten leads to a ;dual8usage< o! produ#t #ategor es$ As an nstan#e* B67 o! the households us ng tooth powder also use tooth paste$ ' m larly* many o! the households us ng prem um 1rands also use mass market 1rands$ ,or e(ample* wh le =@7 o! 'ur! and =B7 o! Ar el us ng !am l es also use N rma detergent* G7 o! Den m users use )ond2s Dream !lower tal# and =?7 o! )antene us ng households use Cl n # shampoo as well$

Income gro2th goes into consumption

In ur1an households there are a num1er o! #ompet ng demands !or ones money$ In rural households* they hardly #hange the r house or go out on a &a#at on$ They sa&e only a small !ra#t on o! h s money and spend the rest$ And when there s a growth n the r n#ome* the money goes stra ght nto #onsumpt on$

Rural media
+r1an #onsumers shop da ly and ha&e GC@ opportun t es a year to sw t#h 1rands wh le the rural pur#hasers who 1uy the r goods n weekly haats ha&e only @A$ Attempts to rea#h rural #onsumers* e&en on#e dur ng the pur#hase #y#le to ensure repeat pur#hase* make po nt o! pur#hase ad&ert s ng and trade push nd spensa1le$ Th s re:u res a s gn ! #ant reor entat on n the allo#at on o! !unds a#ross med a$ ,or e(ample* outdoor ad&ert s ng a##ounts !or o&er 57 o! all med a e(pend tures n Ind a$

%ural 1uyers l & ng n small solated groups d str 1uted a#ross &ast d stan#es ha&e l m ted a##ess to the 1road#ast med a$ The e( sten#e o! a mult pl # ty o! languages and &ary ng le&el o! ll tera#y #ompl #ates the task o!

#ommun #at on !urther$ To o&er#ome some o! these #hallenges* +n le&er p oneered the #on#ept o! & deo &ans that tra&el !rom & llage to & llage

s#reen ng ! lms n the lo#al language* nterspersed w th ad&ert sements !or +n le&er2s produ#ts$ The #ompany also pro& des produ#t usage

demonstrat ons to the #apt &e aud en#e 1e#ause wr tten nstru#t ons on the pa#k may

Buality consciousness
It w ll 1e un"ust ! ed to th nk that rural #onsumers are less 1othered a1out produ#t :ual ty$ E&en the & llage 1uyers des re to 1uy a :ual ty produ#t and upgrade the r :ual ty o! l !e$ Mar #o* an Ind an ed 1le o l #ompany* has !ound the rural #onsumers n the nter or o! Ind a w ll ngly pay a reasona1le pr #e prem um !or 1randed #ook ng o l* o&er #ommun ty o l* 1e#ause they are #erta n o! ts #ons stent :ual ty$ +n1randed produ#ts are o!ten #ons dered 1y some o! them to 1e adulterated$

Travails in distribution
In sp te o! re#ogn 9 ng the potent al o! th s &ast market o! 566 m ll on* marketers are o!ten una1le to #ater to t 1e#ause o! la#k o! ade:uate

n!rastru#ture$ The d stan#es 1etween & llages* the terra n and the la#k o! pu##a roads #onne#t ng the pla#es a#t as mped ments !or them to rea#h the r #ustomers$ 4ut on#e ! they o&er#ome these hassles and rea#h those remote 1a9aars to 1e ! rst on the shel! n the produ#t #ategory* they de&elop a pr & leged relat onsh p w th the reta ler that o!!ers them a tremendous #ompet t &e ad&antage$ %ural reta lers are !ar less spe# al 9ed than the r ur1an #ounterparts and #arry a w der range o! produ#ts$ ' n#e !re:uent del &ery s not poss 1le n the r part o! the world* they tend to #arry only a s ngle 1rand n ea#h produ#t #ategory$ And* usually* the 1rands that are ! rst on the rural shel&es 1e#ome synonymous w th produ#t #ategory and are d !! #ult to d slodge$ ,or nstan#e* Magg e noodles* the 1rand that #reated the #ategory o! nstant noodles* rea#hed the rural shel&es 1e!ore anyone else and rema ned the market leader e&er s n#e$ Thus* a dr &e down the rugged #ountrys de* sans ele#tr # ty and other modern !a# l t es* s* surely* torturous$ 4ut the pa n s worth 1ear ng$

)re*erence *or &o2 Unit )ac3s :&U);

Tr al s o!ten en#ouraged 1y Low +n t )a#ks /L+)0 or sa#hets$ The sa#het pa#kag ng strategy #aught the popular ,MCG mag nat on n the early =>>6s and t was #ons dered as a 1reakthrough n the psy#he o! the rural #onsumers$ Today* the sa#hets are n#reas ngly dom nant on shel&es$ 'hampoo* !or nstan#e* has n&aded the rural households w th sa#hets at low a!!orda1le pr #es$ 'a#hets o! tea* 1lues and wash ng powder are 1e ng laun#hed n a 1 g way n the & llage hats 1y lead ng manu!a#turers$ Compan es l ke .LL and Mar #o are mak ng #on#rete e!!orts to #reate and then meet the demand o! rural #onsumers 1y laun#h ng produ#ts n small a!!orda1le pa#ks$

"hannel po2er

The rural #onsumers ntera#t d re#tly w th the r reta l salespersons who has a strong #on& #t on power and whose re#ommendat ons #arry we ght$ The owners2 relat onsh p w th #ustomers s 1ased on an understand ng o! the r needs and 1uy ng ha1 ts and s #emented 1y the reta ler e(tend ng #red t$ 'ome o! the su##ess!ul manu!a#turers #reat &ely de&elop new re&enue a#t & t es !or the rural reta ler$ +n ted )hosphorous L m ted /+)L0* an Ind an #rop prote#t on #ompany* real 9ed that n ts rural markets small !armers

were not apply ng pest # de at all* or apply ng t nappropr ately due to the la#k o! appl #at on e:u pment$ The #ap tal #ost o! the e:u pment /mounted pumps and d spensers that #ost up to UG6660 was pla#ed out o! rea#h o! small !armers and most rural reta lers$ +)L des gned a program n wh #h t arranged !or 1ank loans !or ts rural reta lers to pur#hase appl #at on e:u pment and demonstrated to the r reta lers the add t onal re&enue poss 1 l t es !rom rent ng th s e:u pment to small !armers$ The result was an added re&enue stream !or rural reta lers$

/ider competition *or a product

Many o! the rural 1uyers tend to ha&e l ttle sto#k o! money* only a !low$ Conse:uently* they tend to make pur#hases only to meet the r da ly needs and ha&e l ttle #apa# ty to 1u ld n&entory$ The market ng mpl #at ons o! th s are !ar8rea#h ng$ Not only are pa#k s 9es and pr #e po nts a!!e#ted* 1ut n turns out that #onsumers ha&e to make a sele#t on !rom a mu#h w der array o! produ#t #ategor es$ Thus the nature o! #ompet t on !or any g &en

produ#t s mu#h 1roader$ ,or nstan#e* n a & llage hat* Co#a Cola #ompetes not "ust w th )eps * 1ut w th a 1road set o! pur#hases that the rural #onsumers #ons der as ;treats<$

BIBLIOGRAPHY 4us ness maga9 nesD 4us ness Today

InternetD

www$Ind a n!ol ne$#om www$Google$#om www$ Census nd a$#om www$.LL$#om

4us ness Da l esD

The E#onom # T mes 4us ness 'tandard

'tudy 1ooksD

Market ng Management8 )h l p kotler Market ng Management8 -' %amaswamy

APPENDI= 7"UESTIONNAIRE8:

Wuest onna re On %ural )enetrat on ,or ,MCG

Dear #onsumer *I am do ng a spe# ! # sur&ey o! R%&'( ;*-*+&'+,4- <4& FMCG$ I hope

you would ! nd t nterest ng

C4-2%B*& P&4<,(* NameDXXXXXXXXXXXXXXXXXXXXXXXX AgeDXXXXX Gender a0Male 10,emale Mar tal 'tatus ' ngle Marr ed - llageDXXXXXXXXXXXXXXXXXXXXXXX Tehs lDXXXXXXXXXXXXXXXXXXXXXXXX D str #tDXXXXXXXXXXXXXXXXXXXXXXX Conta#t No$DXXXXXXXXXXXXXXXXXXX S43,4 E34-4B,3 P&4<,(* Edu#at on Ill terate )r mary M ddle '#hool . gh '#hool Graduate and a1o&e O##upat onDXXXXXXXXXXXXXXXXXXXXXXXX ' 9e O! Land .old ng DXXXXXXXXXXXXXXX

Annual ,am ly In#ome 4elow =66666 =666668@66666 A1o&e @66666 Wuest ons ,or 'ur&ey =$.ow ,re:uently do you )ur#hase ,MCG produ#tsH Da ly Weekly Monthly Pearly Other ')ECI,PDXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX B$Ment on ,eature O! )re!eren#eH Wual ty Wuant ty )r #e )a#k ng Other ')ECI,PDXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

G$Are you Cons# ousness a1out 1randH Pes No 'omet me A$What s your 'at s!a#t on Le&el On the a&a la1 l ty o! &ar ous 1randsH . ghly 'at s! ed 'at s! ed Neutral D ssat ! ed . ghly D ssat s! ed @$Does Wual ty a!!e#ts your 1uy ng de# s onH Pes No C$ Does Good Wual ty produ#ts a&a la1le here n the rural marketH Pes No 5$What s your )r #e Op n onH +na!!orda1le

'l ghtly E(pens &e A!!orda1le Cheap -ery #heap

?$Does Wuant ty a!!e#ts your 1uy ng de# s onH Pes No

>$Are the d !!erent :uant ty o! goods are a&a la1le n th s rural market w th n reasona1le pr #eH 'trongly Agree Agree Ne ther agree nor d sagree D sagree 'trongly D sagree =6$Does )a#k ng A!!e#t your 1uy ng d # s onH Pes No ==$)a#k ng guarantees the good :ual ty o! produ#tsH

 Agree D sagree =B$Where do you )ur#hase these goods !romH Own - llage Near1y Town =G$Do you tra&el to +r1an areas !or pur#has ng goodsH a0 Pes 10No =A$.ow mu#h do you spend n tra&ell ng to other areas ,or pur#has ng :ual ty produ#tsH Less than =66 =66 M G66 G66 8 @66 More than @66 =@$W ll you 1uy :ual ty produ#ts * ! they are made a&a la1le n th s rural market w th a l ttle r se n pr #e/An art #le #ost %s=6 made a&a la1le here !or %s =B0H Pes No

Any 'uggest on XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX