Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural

area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural
as well as marketing of outputs from the rural markets to other geographical areas.
Marketing is the process used to determine what products or services may be of interest to customers,
and the strategy to use in sales, communications and business development. It generates the strategy
that underlies sales techniques, business communication, and business developments. It is an integrated
process through which companies build strong customer relationships and create value for their
customers and for themselves. It is a function which manages all the activities involved in assessing,
stimulating and converting the purchasing power to effective demand for a specific product and service.
This moves them to the rural areas to create satisfaction and uplift the standard of living.
Rural areas of the country or countryside are areas that are not urbanized, though when large areas are
described country towns and smaller cities will be included. They have a low population density, and
typically much of the land is devoted to agriculture. Defra have a working definition, The Rural/Urban
Definition, that was introduced in 2004 as a joint project between a number of Government Departments
and was delivered by the Rural Evidence Research Centre at Birkbeck College (RERC).
Marketing strategies that worked for urban markets do not necessarily work for the rural ones. There are
7 differentiators identified in Why the rural market is different, JWT, 2009
1. Intra community influences are relatively more important than inter-community ones. Word-of-mouth in
close knit communities is more powerful.
2. Scarcity of media bandwidth. Rural individual's access to media channels is limited and in the case
of broadband the comparable upload and download speed may be slower. Online shopping is seen as a
solution by many but will be dependent on broadband speed.[1]
3. Slow to adopt brands. Slow to give them up. Rural consumers will be slower to pick up trends or
brands but will remain loyal when accepted.
4. Expenses are year long; income is seasonal. Many rural areas rely on seasonal tourism peaks when
income will be high and to a lesser extent agricultural incomes from seasonal crops. This means there will
be more disposable income at certain times with rural businesses and employees.
5. Information hungry; but entertainment starved. Isolation from entertainment centres has led to
companies trying edutainment to get their message across.
6. Higher receptivity to experience advertising. Retail outlets in rural areas have many demonstration
areas along with markets for tasting.
7. Commercially profitable; and socially acceptable. Brands with demonstrable local, rural, environmental
and/or social credibility stand a better chance.
Rural Marketing meant different in 3 different periods. Part1(before 1960):It was a completely an
unorganized market,where baniyas and mahajans dominated the market.Rural marketing was another
word for agricultural marketing because agricultural produces like food grains and industrial like food
grains and industrial like cotton,oil seeds,sugarcane etc occupied primary attention and the supply chain
activities of firm supplying agricultural inputs and of artisans in the rural areas received secondary
attention. Part 2(1960 to 1990):The greatest thing which happened in this period was green revolution
which led to farming involving scientific and technological methods and many poor villages became
prosperous business centers.With better irrigation facilities,soil testing,use of high yield variety
seeds,fertilizers,pesticides and deployment of machines like power tillers,harvesters,threshers etc,the
output increased especially wheat and paddies.Due to this marketing of agricultural inputs was also now
there a new potential market.Now marketing of rural marketing meant marketing of agricultural inputs
and agricultural marketing.Agencies like Khadi and Village Industries Commission,Girijan Cooperatie
Societies APCO Fabrics,IFFCO,KRIBHCO Company bloomed and government paid special attention to
promote these products.Sale of handicrafts,handloom textiles,soaps ,safety matches and crackers
increased on large scale in urban areas. Part 3(after mid 1990):Since 1990 ,Indias industrial sector had
gained strength and maturity.Its contribution to GNP increased substantially.There was metamorphosis
of agricultural society to industrial society.With support and development programmes of central and state
governments,service organizations and socially responsible business groups like
Mafatlal,Tatas,Birla,Goenkas and others the rural areas progressed socially and economically.
The economic reforms further increased competition in the market,the rural market grew steadily for
household consumables and durables. A few other companies known for their marketing orientation
Hindustan Lever,Philip India,Asian Paints,Singer and Larsen and Turbo have also taken great efforts in
this direction.
Hindustan Unilever(HUL) started successful rural marketing projects like Project Shakti and Operation
Bharat in India.Hindustan Unilever began the first home to home operation in rural areas in personal
products in 1998 which was known as Operation Bharat.By 1999 Bharat Operation covered 13 million
rural household.During the course of operation, there were HUL vans which visited villages across the
country distributing sample packs comprising a low unit price pack each of shampoo,talcum powder
,toothpaste and skincream priced at 15rs.This was to create awareness of the companys product
categories and of the affordability of the product. Coca Cola also explored the market by introducing
bottles at rs.5,backed with Aamir Khan advertisement .Amul is another case in point of aggressive rural
marketing .In 2000,ITC tried developing direct contact with farmers in remote villages in Madhya
Pradesh.ITC E-choupal was a result of this initiative.
Rural Marketing is growing at a far greater speed than its urban counterpart .Multinationals have realized
the potential and are ready to tap rural markets .To name a few Colgate, Eveready batteries ,LG
Electronics ,Phillips ,BSNL, Life Insurance Corporation, Britannia and Hero Honda are trying to seep in
rural markets.
Problems in Rural Marketing Communication: The literacy rate among rural consumers is very low there
print media has very little scope in the rural areas .In India there are 18 languages which are
recognized,these languages and many dialects are spoken in rural India. English and Hindi are not
understood by many people. Due to this rural consumers do not get exposure to new products.
Transportation: The transportation infrastructure is extremely poor in rural India.In India there are six lakh
villages.Almost 50 per cent of them are not connected by road also.India has second largest railway
system in the world,many parts in India are not connected through railways. Availability of appropriate
media:The radio network in theory covers 90 per cent,but people who actually listen is less.T.V is not
available in every house in rural areas.Therefore opportunities are very low in rural areas. Warehousing:
There are many agricultural products which are produced in a particular seoson but is demanded
throughout. Due to lack of adequate and scientific storage facilities in rural areas, stocks are being
maintained in towns only.
[1] http://www.myfinances.co.uk/cut-your-bills/2011/06/01/rural-broadband-problems-make-online-
shopping-a-postcode-lot


Rural Marketing Project

Introduction
In our country over 70% of the total population live in villages. There are states like U.P, M.P,
Bihar, Rajasthan and Orissa where rural population varies form 80 to 90 per cent. Agriculture
and agriculture related activities contribute to about 75% of the income in rural areas.
The general impression is that the rural markets have potential only for agricultural inputs like
seeds, fertilizers and pesticides, cattle feed andagricultural machinery. More than 50% of the
national income is generated in rural India and there are opportunities to market moderngoods
and services in rural areas and also market agricultural products in urban areas. Infact it has been
estimated that the rural markets are growing at fives times the rate of urban markets. About 70%
of bicycles, mechanical watches and radios and about 60% of batteries, sewing machine and
table fans are sold in rural India. At the same time the sales of colour television, washing
machines, refrigerators, shampoos, face cream, mosquito repellent and tooth paste are very low
and there is tremendous potential for such products in rural markets
While rural markets offer big attractions to the marketers, it is not easy to enter the market and
take a sizeable share of the market within a short period. This is due to low literacy, low income,
seasonal demand and problems with regards to transportation, communication and distribution
channel. Further there are different groups based on religion, caste, education, income and age.
There is a need to understand the rural markets in terms of buyer behaviour, attitudes, beliefs and
aspirations of people.
Characteristics of Rural Markets
Large number of consumers:
According to the 1991 census, the rural population constitutes about 74% of the total population
in our country. While the population went from 55 crores (1971) to 85 crores (1991), the rural-
urban proportion have remained more or less the same as in 1971. There are states like U.P, M.P,
Bihar, Rajasthan and Orissa where rural population varies from 80 to 90 percent. Therefore a
large population gives an opportunity for marketing a variety of goods and services. However
income and purchasing power play a major role in determining the demand in rural areas.
Occupation pattern:
Agriculture and related activities continue to be the main occupation for majority of the rural
population. Land is the major source of income for about 77% of the population. Others are
engaged in business (10%), non-agriculture labour (9%), salary earners (2%) and not gainfully
employed (2%). It is evident that rural prosperity depends upon growth and development of
agriculture.
Literacy level:
It has been estimated that the rural literacy level is 36% compared to 62% in urban areas.
Literacy is one of the important factors in developing awareness and knowledge about
technological changes. As many as 16 major languages are spoken adding to the complexities in
rural communication.
Low standard of living:
Low income, low purchasing power, overall social and economic backwardness lead to low
standard of living. In general a rural consumer spends less on non-food items.
Media reach:
The media reach in rural household is low. Statistics indicates that the reach of Print media is
10%, followed by TV 31%, Radio 32% and Cinema 36%. Therefore the marketer has to consider
rural specific promotion media and methods to reach the villagers.
Communication facilities:
About 20% of the six lakh villages are without telephone facility even today. This includes
Rajasthan (17600 villages), MP (14200 villages), Maharashtra (12000 villages), Gujarat (7000
villages), and AP, Assam, Orissa about 6000 villages each. (Source: The Indian Express dated
30.3.2003).
Transportation facilities:
About 50% of the markets are not connected by road. Most of the roads are kachha and become
unusable during rainy season. Many farmers use bullock cart for transporting their produce from
village to the market. This means of transport is time consuming.
Rural electrification:
The main objective is to provide electricity for agricultural operations and for small industries in
rural areas. About 5 lakh villages (77%) have electric supply and this has increased the demand
for electric supply and this has increased the demand for electric motors, pumps and agricultural
machinery.
Medical facilities:
Medical facilities are quite inadequate and the villagers have to travel long distances for getting
medical treatment.
Distance:
Village nearer to towns has elements of the urban life. Interior villages are more traditional.
Informal/Rural Specific Media
These media with effective reach and personalized communication will help in realizing the
promotional objectives. Companies to suit the specific requirements of rural communication are
using a variety of such media effectively and some of the more important media and methods are
given below.
Farm-to-Farm/House-to-House visit:
Rural people prefer face-to-face communication and farm visits facilitate two-way
communication. The advantage is that the sales person can understand the needs and wants of the
rural customer by directly discussing with him and answer his queries on products and services.
Potential customers in the village are identified and the company's/distributor's representative
makes farm-to-farm visits and highlight the benefits of the products. The person carries with him
literature in local language and also samples of products. The person does not sell the product
but only promotes the use of the product. Very often the local dealer also joins the representative
in making farm-to-farm visits. The dealer clarifies the terms and conditions of sale and also
makes independent follow up visits for securing orders. Example: This approach has been found
to be very effective for agricultural machinery, animal health products and agricultural inputs.
Many LIC agents and companies dealing with high value consumer durables have tried this
method with success in rich rural areas.
Group meeting:
Group meetings of rural customers as well as prospects are an important part of interpersonal
media. The company is able to pass on the message regarding benefits of the products to a large
number of customers through such meetings. Group meeting of key customers are conducted by
banks, agricultural inputs and machinery companies in rural areas. The bankers visit an identified
village, get the village people in a common place and explain the various schemes to the
villagers. Such meetings could be organized in prosperous villages for promoting consumer
durables and two wheelers also. Example: MRF Tyres conduct tractor owners meet in villages to
discuss repairs and maintenance of tractors.
Opinion leaders:
Villagers place more emphasis on the experience of others who have used a product/brand to
make purchase decision. Opinion leader is a person who is considered to be knowledgeable and
is consulted by others and his advice is normally followed. Such opinion leaders could be big
landlords, bank official, panchayath-president, teachers, extension workers etc. Examples: a)
Mahindra Tractors use bankers as opinion leaders for their product. b) Asian Paints promoted its
Utsav brand of paint by painting the village Sarpanch's house a few months prior to the launch if
the branch to demonstrate that the paint does not peel off.
The Melas:
Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may be held
only for a day or may extend over a week. Many companies have come out with creative ideas
for participating in such melas. Examples: a) Britannia promotes Tiger Brand Biscuits through
melas. b) The mahakumbh at Allahabad is the biggest mela in India. HLL has put up 14 stalls in
the mela grounds for promoting Lifebuoy. Handcarts have been deployed for increasing access.
The Haats:
Traditionally on certain days of week, both the sellers and buyers meet in the village to buy and
sell goods and services. These are the haats that are being held regularly in all rural areas. The
sellers arrive in the morning in the haat and remain till late in the evening. Next day they move to
another haat. The reason being that in villages the wages are paid on weekly basis and haat is
conducted on the day when the villages get their wages. For the marketer, the haat can be an
ideal platform for advertising and selling of goods. By participating in haats and melas, the
company can not only promote and sell the products but also understand the shared values,
beliefs and perceptions of rural customers that influence his buying behaviour.
Folk dances:
These are well-appreciated form of entertainment available to the village people. The folk dance
"Kuravan Kurathi" is popular in Tamil Nadu. The troupe consists of dancers, drummers and
musicians and they move in a well-decorated van from one village to another village singing and
dancing. In a day the troupe covers about 8-10 villages. As soon as the van reaches a village,
film songs are played to attract the attention of the villages. This is followed by folk dances.
Mike announcement is made about the company's products and leaflets are distributed. After the
dance programme, queries, if any, about the products are answered by the sales person. Folk
dance programme costs about Rs.5000 per day and therefore these programmes are conducted
during the peak season in selected villages. Examples: Fertilizer and pesticide companies
organize folk dance programmes during peak season in selected markets. Thumps Up has
sponsored Lavnis, the folk dance programme of Maharashtra and over 30 programmes have been
arranged in selected rural markets.
Audio Visual Publicity Vans (AVP Vans):
AV unit is one of the effective tools for rural communication. The van is a mobile promotion
station having facilities for screening films slides and mike publicity. The sales person makes a
brief talk about situation in the village, the products and the benefits. The ad film is screened
along with some popular film shots and this continues for about 30 minutes. At the end of the
film show, he distributes handbills and answers queries of the customers. The whole operation
takes about 1-2 hours depending upon the products under promotion, number of participants in
the meeting and time taken for question and answers. The vans move to the next village for the
second show. The cost of running a fully equipped AVP unit is about Rs.4000 per day and AVP
van operation has to be considered as an investment for business development in rural areas.
Example: Companies such as HLL, Colgate, and Phillips have made effective use of AVP vans
for popularizing their products in rural areas.
Product display contests:
Package is an integral part of the product. Its main purpose is to protect the product during
transit, to preserve the quality and to avoid any loss in quality and quantity. The main purpose of
this contest is to remind the customer to buy the product as soon as he enters the shop. Another
objective is to influence the dealer to stock the product and support the company in increasing
the sales. The display contest has to be announced well in advance and promotional materials to
be distributed to all the selected dealers in a geographical area. Prizes for best displays are
announced to motivate the dealers; the contest lasts for about a month. A well-planned product
display contest not only increases the involvement of dealers in the company's products but also
increases the sales during the contest period. This is used for promoting consumer goods such as
shampoos, soaps and toothpaste.
Reference :
Business Today
Advertising & Management
Economic Times
Hindustan Times
www.wikipedia.org