Function that manages all activities involved in

assessing, stimulating and converting the

purchasing power of rural consumers into
effective demand for specific products and
services to create satisfaction & a better
standard of living for achieving organizational
goals.
 The Indian rural market has a huge demand base and
offers great opportunities to marketers. Two-thirds of
Indian consumers live in rural areas and almost half of
the national income is generated here.
 The reasons for heading into the rural areas are fairly
clear. The urban consumer durable market for products
like color TVs, washing machines, refrigerators and air
conditioners is growing annually at between 7 per cent
and 10 per cent.
 The rural market is zooming ahead at around 25 per
cent annually.
 Today Rural market is highly growing sector
in India. It is full of opportunities, If you
have seen, most of the rural consumers go to
the nearby city to buy branded products and
services.
 Today most of the companies run to rural
market to establish their brands as there is a
lot of potential present in these markets.
 Trends indicate that the rural markets are
coming up in a big way and growing twice as
fast as the urban.
 Rural India buys small packs, as they are perceived as
value for money. There is brand stickiness, where a
consumer buys a brand out of habit and not really by
choice. Brands rarely fight for market share; they just
have to be visible in the right place.
 Even expensive brands, such as CloseUp, Marie
biscuits and Clinic shampoo are doing well because of
deep distribution, many brands are doing well without
much advertising support — Ghadi, a big detergent
brand in North India, is an example.
 1995-96 2001-02 2005-06 2009-10

Cars 276 788 1560 3466

Motorcycles 760 2599 4663 8369

CTV 1785 4580 6295 9957

Regulars

Refrigerator 1850 3006 4335 6774

s

White goods 3437 6024 8727 13149

 1995-96 2001-02 2009-10

Edible Oil 64.3 67.1 62.9

Health Beverages 28.6 27.3 28.1

Packaged 36 42.8 30.3

Biscuits
Shampoos 27.2 31.9 33.0

Toilet soaps 49.8 52.5 54.7

Washing cakes 68.7 71.4 75.6

Washing powders 50.4 50.8 54.9

Unique Selling Propositions (USP) involves presenting a theme with the
product to attract the client to buy that particular product. For
examples,some of famous Indian Farm equipment manufacturers
have coined catchy themes, which they display along with the
products, to attract the target client that is the farmers. English
version of some of such themes would read
like:
The heartbeats of rural India
With new technique for a life time of company
For the sake of progress and prosperity
The concept of rural markets in India is still in evolving shape, and
the sector poses a variety of challenges. Distribution costs and non-
availability of retail outlets are major problems faced by the
marketers.
The success of a brand in the Indian rural market is as
unpredictable as rain.
Many brands, which should have been successful, have failed
miserably.
This is because most firms try to extend marketing plans that they
use in urban areas to the rural markets.
The unique consumption patterns, tastes, and needs of the rural
consumers should be analyzed at the product planning stage so
that they match the needs of the rural people.
Marketing Strategy
Marketers need to understand the psyche of the rural
consumers and then act accordingly. Rural marketing involves more
intensive personal selling efforts compared to urban marketing.
Firms should refrain from designing goods for the urban markets
and subsequently pushing them in the rural areas. To effectively
tap the rural market, a brand must associate it with the same
things the rural folks do.

Distribution Strategy
One of the ways could be using company delivery van which can
serve two purposes - it can take the products to the customers in
every nook and corner of the market, and it also enables the firm
to establish direct contact with them, and thereby facilitate sales
promotion.
Promotional strategy
Annual "meals" organized are quite popular and provide a very
good platform for distribution because people visit them to
make several purchases. This can be done by utilizing the
various rural folk media to reach them in their own language
and in large numbers so that the brand can be associated with
the myriad rituals, celebrations, festivals and other activities
where they assemble.
Hurdles
The rural population is spread over a large area where reach is
expensive and the mass is heterogeneous. The spending power of
rural population fluctuates with the agri-yield. Hence, demand is
not consistent. Besides this, low level of product exposure, poor
standard of living, spurious products with high margins for retailers
and lack of infrastructure leads to low penetration.
Strategies
The base work should be extremely clear — distribution, visibility
and the right communication can make a product. One needs to
educate the target audience and pick up self-help groups/villages
between entrepreneurs/literate unemployed youth for sustainable
distribution channel.
Reach
For a product to reach six lakh villages, one need to know that 700
million villages are spread over 3.2 million sq. meter of area. The road
conditions are usually poor. It is, therefore, important for the marketer to
have a good distribution system.

Pricing
Pricing of a product needs to be low and affordable. For example,
FMCGs have creams and soaps@ Rs 5, hair oil and shampoo sachets @ Re 1
and small Coke @ Rs 5. To develop a product to suit the rural scenario, the
focus should be on items of necessity.

Product Awareness
This is very important for the marketer to induce a trial. Rural
consumers visit high congregation areas like haats/fairs etc. where
product awareness can be created. Therefore, the right product needs to
reach the right person at the right time and place
 Established : 1884

 Founder: Dr. S K Burman

 Basic Motive : Manufacture of Ayurvedic Drugs

 Achieved: By setting up manufacturing units and

setting up Research and Development Labs
 One of the largest FMCG company
 Consolidated turnover of Rs. 2234 crores
 Differentiated product
 Strongherbal & natural product profile
 More than 120 years of experience
 Wide distribution network
 Covering1.9 million retail outlets
 High penetration in urban & rural markets
 Brand strength
 Variousstrong brands in diverse categories
 Mother brand Dabur has strong image in customers
mind.
 Consumer Care Division (CCD) adresses consumer needs
across the entire FMCG spectrum through four distinct
business portfolios of Personal Care, Health
Care, Home Care & Foods
 Master brands:
 Dabur - Ayurvedic healthcare products
 Vatika - Premium hair care
 Hajmola - Tasty digestives
 Réal - Fruit juices & beverages
 Fem - Fairness bleaches & skin care products
 9 Billion-Rupee brands: Dabur Amla, Dabur
Chyawanprash,Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant
Manjan,Babool, Hajmola and Dabur Honey
 Strategic positioning of Honey as food product, leading
to market leadership (over 75%) in branded honey
market.
 Dabur Chyawanprash the largest selling Ayurvedic
medicine with over 65% market share.
 Vatika Shampoo has been the fastest selling shampoo
brand in India for three years in a row
 Hajmola tablets in command with 60% market share of
digestive tablets category. About 2.5 crore Hajmola
tablets are consumed in India every day
 Leader in herbal digestives with 90% market share
 Dabur Lal Dant Manjan & Shampoo leads the rural
market with 85% availability.
 Next to these Dabur Lal Tel & Toothpaste is available in
most of the retail outlets including Medicine store,
Grocery store as well as the betel shop.
 Products like Amla, Hajmola & Vatika are available in a
moderate range in all shops
 Anmol, Pudin Hara, Glucose & Honey are the products
which are present in the shops in a considerable amount
because consumers prefer Local honey as it is cost
effective.
 Odomos, Odonil, Chyawanprash & Gulabari are showing
less availability in rural shops as they are priced very
high & sophisticated in nature.
 Dabur Lal Tail  Vatika Hair oil
 Dabur janam ghuti  Dabur Red Toothpaste
 Dabur Chyawanprash  Babool Toothpaste
 Dabur Glucose D  Dabur Lal dant
 Hajmola manjan
 Hajmola Candy  Promise toothpaste
 Pudin hara  Odomos cream
 Dabur Hingoli  Amla hair oil
 Dabur Amla Hair Oil (available in 7 different
quantities packs)
 Nihar Amla
 Shanti Amla
 Bajaj Bhrami Amla
 Parachute coconut Oil
 Keokarpin
 Himani Navratna
 Banphool
 Dabur Amla: 23.3%
 Nihar Amla: 15.7%
 Shanti Amla: 13.5%
 Parachute coconut Oil: 11.0%
 Bajaj Bhrami Amla: 9.7%
 Bajaj Almond drops: 7.3%
 Others: 6.2%
 Dabur announced beauty contests all across
the country.
 Dabur heavily advertised its brand through
mass advertising tools like: Radio,
newspapers, and POP displays.
 Dabur has a vast distribution network in the
rural area, through which they easily reach its
customers.
 Company launched Rs. 1 sachet of Dabur Amla
Hair Oil.
 Dabur did celebrity endorsements with Rani
Mukherjee.
 For attracting more customers Dabur used
the following promotional tools in rural
markets:
 TV commercials
 Radio ads
 Newspaper ads
 POP Displays
 Wall paintings
 Contests in Melas or Haats
 Video Vans
 Sales promotion
 Dabur heavily advertised Dabur Amla Hair Oil
through Rani Mukherjee (The famous
celebrity)
 Dabur conducted beauty contests apt for the
rural customers like:
 Dabur Amla Sunder
 Dabur Amla Susheel
 Dabur Yogya Pratiyogita
 Dabur is trying to capture market by
launching products with regional twist.
 Example: Sivappu Pal Podi is sold in Tamil
Nadu, which is a local version of Dabur Lal
Dant manjan.
 Also in North it is sold with an English name “
Dabur Red Tooth Powder”.
Thank You