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    imad
    This document discusses rural marketing in India. It notes that around 70-72% of India's population resides in around 627,000 villages. Rural markets currently account for around $220 billion but are projected to grow to $600 billion by 2020. While rural incomes are often perceived as low, there are actually around 27.4 million rural households with middle-class annual incomes between $645-3,075. The document also dispels myths about rural markets being homogeneous and having only individual purchasing decisions, noting they are heterogeneous and purchasing decisions are often made collectively.

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    Introduction

    Uploaded by

    imad
    28 views10 pages
    This document discusses rural marketing in India. It notes that around 70-72% of India's population resides in around 627,000 villages. Rural markets currently account for around $220 billion but are projected to grow to $600 billion by 2020. While rural incomes are often perceived as low, there are actually around 27.4 million rural households with middle-class annual incomes between $645-3,075. The document also dispels myths about rural markets being homogeneous and having only individual purchasing decisions, noting they are heterogeneous and purchasing decisions are often made collectively.

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    This document discusses rural marketing in India. It notes that around 70-72% of India's population resides in around 627,000 villages. Rural markets currently account for around $220 billion but are projected to grow to $600 billion by 2020. While rural incomes are often perceived as low, there are actually around 27.4 million rural households with middle-class annual incomes between $645-3,075. The document also dispels myths about rural markets being homogeneous and having only individual purchasing decisions, noting they are heterogeneous and purchasing decisions are often made collectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    28 views10 pages

    Introduction

    Uploaded by

    imad
    This document discusses rural marketing in India. It notes that around 70-72% of India's population resides in around 627,000 villages. Rural markets currently account for around $220 billion but are projected to grow to $600 billion by 2020. While rural incomes are often perceived as low, there are actually around 27.4 million rural households with middle-class annual incomes between $645-3,075. The document also dispels myths about rural markets being homogeneous and having only individual purchasing decisions, noting they are heterogeneous and purchasing decisions are often made collectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    of 10

    Rural marketing

    -delivering manufactured or
    processed inputs or
    services to rural producers
    or consumers
    Exploring untapped rural
    potential
    -population

    6,27,000 villages across the country


    70-72% population residing in these
    villages; 74 crore population
    Exploring untapped rural
    potential
    -share of market

    2004-05: 220 billion dollar market


    2010-11: 425 billion dollar market
    2020 : 600 billion dollar market
    (approx.)
    Exploring untapped rural
    potential
    -share of disposable income
    Rural markets: 3.6%
    Urban markets: 5.8%
    Total market: 5.3%
    McKinsey report on growth in disposable
    income approximation for year 2025
    Companies already into rural
    markets
    Company Rural sales (% of total)
    HUL 50
    Colgate 50
    Godrej 30
    Cavinkare 33
    Cadbury’s 25
    Marico 25
    Cipla 18
    Myths about rural markets
    Myth #1
    “ Rural market is a homogenous
    mass”
    Reality
    Heterogeneous dispersed distribution
    Urban population spread over 3,200 cities
    Rural population spread over 5,70,000villages
    40-50% having more than 1000 population
    16 languages
    Myths about rural markets
    Myth #2
    “Disposable income is low”
    Reality
    Number of households of middle class
    (annual income: Rs. 45,000-2,15,000)
    Rural 27.4 million
    Urban 29.5 million
    Myths about rural markets
    Myth # 3
    “ Individuals decide about purchases”
    Reality
    Decision process is collective
    Different purchase roles ;i.e.. Decider, buyer,
    user etc. are played by different people so
    marketers must brand message at several
    levels.
    Rural youth brings knowledge to households
    Core essentials of rural markets
    Intra community influences are relatively
    more than inter community ones.
    Scarcity of media bandwidth but
    abundance of attention
    Slow to adopt brands; slower to give them
    up.
    Expenses are year long; income is
    seasonal
    Core essentials of rural markets
    Information hungry; but entertainment
    starved
    Higher receptivity to advertising , with
    lower persuasion
    Commercially profitable when socially
    acceptable

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