Rural Marketing

What is Rural Marketing

• Developing of the market in the area as defined as Rural

• Hence it could be aptly said that it encompasses the
• Activities such as developing the process to meet this
• Objective – Right product at the right price to the right
people
• at the right time. Exchange between rural and Urban is a
• Factor . Could be Urban to Rural: Rural to Urban, Rural to
• Rural
Points to Note with Regard to Rural Markets

 Extremely Diverse Market

Villages – Size,
Population,
Spread,
Income
Literacy levels ,
awareness level,
languages

 Urban Market – scope and saturation

 Flow of funds – from Urban National /International

 Literacy levels on the rise

 Media Penetration
 RURAL CONSUMER CLASS

The Affluent Class

The Middle Class

The Poor
RURAL CONSUMER BEHAVIOR

How does an individual decide to spread his

Available resources (time,money effort) on
Consumption-related products.

That is – what they buy

why they buy
when they buy
where they buy it
how often they buy it
how often they use it
Very Rich
Well Off
Climbers
Aspirant
Poor
Simple Model of Rural Consumer Behaviour

Need Recognition

Pre Purchase Search

Evaluation of Alternatives

Purchase Decision

Post purchase behaviour

 Key Awareness
Affordability
Challenges

4A Availability

Acceptability

4 Ps 4 As

Promotion Awareness
Price Affordable
Product Acceptable
Place Available
SEGMENTATION

Very Varied –hence proper segmentation very essential

Geographic:
Region North, East, West and South
Village size
Climate

Demographic
Age
Family Size
Gender
Income
Occupation
Education
Caste

Psychographics
(consists of psychological: sociology: anthropological)
Lifestyle Rigid ,changing attitude, urban influence
Personality Authoritarian, Ambitious

Behavioral
Different variables could be used.. multilevel segmentation
Occasions Regular, special occasion
 Low per capita income
Low disposable income

Inadequate fixed income

PROBLEMS (daily wages)
Majority – depends on Agricultural
IN Income
Acute dependence on monsoon
RURAL Consumption linked to harvest
Infrastructure problems
MARKETING Roads, power
Low awareness
Communication- difficult & expensive
Too many languages
Geographic Spread

Digging for Diamond

 Urban & Rural Markets

Key Differences

Per capita Income

Disposable Income

Literacy levels

Infrastructure

Communication

Geographical Spread

Customer has many choices

Profile of the Rural Consumer
Profile of the Rural Consumer

>Low Literacy Level

>Low Income Level
>Massive Geographic Spread
Urban population concentrated 3200 cities town
Rural scattered over 630000 villages

>Reference Group
Health Workers
Doctors
Teachers
Panchayat Members
Rural Bank Managers
District Managers

Occupation – Principal Farming

Trading
Handicrafts
Cattle & Poultry Farming
>Media Habits Fond of music T.V Radio Video Films

Generally they have a lot of reservation/inhibition

RURAL PRODUCT

RURAL PRICE

RURAL DISTRIBUTION

RURAL SALES FORCE MANAGEMENT

RURAL COMMUNICATION
Rural Product

Product to be marketed with the requirements of the Rural Consumer should not be an extension of urban
offerings
(Philips launched Free Power Radio – does not require
Battery/electricity you wind it with a lever and radio runs
FMCG
For approximately
Classification 30 min. (HLL, Dabur, Marico, Colgate=Palmolive
Coke, Pepsi)
Of
Consumer Durables
TV ,Fridge, Fan, Presssure Cooker,
Rural
Cycle, Two wheelers, Sewing machines,
watch, mixer grinder, radio, music system,
Products
Fans, Washing machines
(Philips, LG, Videocon, Onida )
Services
Telecom, Banking, Health care ,Insurance
(Airtel, BSNL, SBI, PNB,Dena bank,)
Agri-inputs
Product Seeds, pesticides,Maturity
tractors
Life (Rallis India, Bayer,)
Cycle Take Off Decline
(PLC)
Launch
 Points to note
Rural Products
Easy to Use
After sales support
Conveniently packed- success of Sachets
Product literature to be simple
Have a logo – easy to identify eg Thums Up
Rural Packaging
Packaging
Rural Branding material –plastics, poly packs, unbreakable materials
Looks - attractive colors (like all tea companies)
SizeName
1. Brand and convenience- small is beautiful
2 Create Brand Identity
3 Enhance Recognition
4 Build a Brand Image
5 Countering Spurious brands
Look alike
Spell alike
Duplicates

Enhancing Brand Strategies with Social Perspective

Soaps for Hygiene
Cooking gas for environment
Creating need by more awareness
 RURAL COMMUNICATION

Effective Communication goes a long way in establishing the right

Messages and thereby more interaction with Potential Customers
Communication, however, is not complete if there is no feedback
It is very important to re enforce messages in Rural areas

Factors Affecting Rural Communication

Literacy level

Media Habits

Traditional approach

High resistance – more so initially

Lavish at occasions (eg Marriage)

Purchasing power also depending on weather- the crops

Inequitable distribution of wealth

Too many languages

 RURAL MEDIA

Mass Media Traditional Media

(Conventional) (Non Conventional)
T.V /Cable network Puppet Shows
Satellite Channels
Folk Theatre/Opera
Radio
Demonstration
Print
Cinema/ Haats and Mela
Theatre
Wall painting
Word of
Mouth Post card and posters
Video on
Wheels Booklets/Calendar

Advantages Advantages
>Excellent Reach >High involvement
Less expensive ,wider High Interest
coverage Localized administered at low
cost
Disadvantages
At times unnecessary Disadvantages
coverage Coverage
No customized messages Repeat /Re enforcement
Skill of performer
Companies using this medium
 You are the Marketing Director of A Company dealing
in Consumer Durables (TV, Fridge, Washing Machine
Music System, Microwave etc).
Your business has been growing steadily in the
Urban Market – however, you are aware that the
Business will grow manifold if you also cater to the
Rural market. (Present growth rate has been 8%.
You are targeting a growth of 14%)
Present your case to the Managing Director and the
Take Board
into account
– How the
youfollowing
intend going achieving the desired
The Target Audience
Objective – with your plans for opening up the
The Product proposition
Rural Market
Distribution Strategies and Sales Forecast
Pricing Strategies
Promotional Strategies

How the above strategies will help in achieving the

Business Objectives.

While making the presentation – you need to be clear on

1. Why you chose to launch the particular product
2. Why did you chose the particular location
(Opportunity Assessment)