Rural Marketing and Advertising22-2023

RURAL MARKETING &
ADVERTISING
 Marketing refers to activities a company undertakes to
promote the buying or selling of a product or service.
Marketing includes advertising, selling, and delivering
products to consumers or other businesses.
 At its most basic level, marketing seeks to match a company's

products and services to customers who want access to those
products.
 Rural marketing is a type of marketing in which activities are

planned according to the needs and requirements of the
people living in the rural areas.
Seema Narendran, KPB Hinduja College of Commer 2

ce
 Rural marketing is now a two-way marketing process. There is
inflow of products into rural markets for production or
consumption and there is also outflow of products to urban
areas.
 The urban to rural flow consists of agricultural inputs, fast-

moving consumer goods (FMCG) such as soaps, detergents,
cosmetics, textiles, and so on.
 The rural to urban flow consists of agricultural produce such

as rice, wheat, sugar, and cotton. There is also a movement of
rural products within rural areas for consumption.

ce
 The rural population has shown a trend of moving to a state of
gradual urbanization in terms of exposure, habits, lifestyles,
and lastly, consumption patterns of goods and services.
 Rural population (% of total population) in India was reported

at 64.61 % in 2021, according to the World Bank collection of
development indicators

ce
 “The study of Rural Marketing comprises of all the operations,
and the agencies conducting them, involved in the movement
of farm produced food, raw materials and their derivatives,
such as textiles, from the farms to the final consumers, and
the effects of such operations on producers, middlemen and
consumers.”
 The above definition reflects only one side of the coin and are
narrow in explanation, i.e., it explains only the movement of
goods from rural to urban areas, whereas, the rural markets
also need agricultural inputs like seeds, fertilizers, pesticides,
cattle feed and agricultural machinery, as well as the rural
population needs consumables, consumer durables and
services also.
ce
EXAMPLES OF RURAL MARKETING
 “Khushion Ki Doli” by Hindustan Unilever Ltd (HUL)

ce
 The well-known FMCG Company, Hindustan Unilever Ltd’s
(HUL) campaign “Khushion Ki Doli” also known as “Caravan of
Happiness” was very popular in the rural areas. The main
purpose of this campaign was to establish the HUL brand in
dark rural areas or villages and to develop a deep customer
engagement for brand adoption. Different HUL home care and
personal care products or brands were promoted under this
campaign like Surf Excel, Fair and Lovely, Lifeboy, Wheel, and
Close-Up as per the daily needs of rural customers.

ce
The soft drink giant Coca-Cola’s “Accessibility” campaign introduced
“Chota Coke,” which was smaller in size than the traditional bottle of
Coke and that is also at a lesser price. This rural marketing strategy of
Coke helped in closing the gap between Coke and common
refreshments that rural people generally took, like tea, lemonade, etc. It
increased the company’s sales in the rural market by almost 60%.

ce
ce
 The well-known paint brand, Asian Paints “Utsav” campaign
has been very popular in rural areas. In this campaign, the
Mukhiya’s home in villages was painted 6 months before
launching the paint as a demonstration for non-peel-off
quality of paint. The concept for doing such a demonstration
was that rural customers give more focus on other’s
experiences of using brands to make purchase decisions. So,
the Utsav campaign grabbed the attention of rural customers
and also successfully built reliability and durability due to
painted Mukhiya’s house walls and attracted lots of rural
customers

ce
SCOPE AND AN OVERVIEW OF RURAL
MARKETING IN INDIA
 The rural marketing structure is not uniform in all par ts of the countr y.
The type of structure prevalent in a par ticular State or Region depends on
various factors like the state of development of agriculture, condition of
transpor t and communication facilities, purchasing power of population,
etc.
 In the Nor th-Eastern region and far-flung areas of the countr y where the
‘agricultural production and levels of income are low and communication
and transpor t facilities are not available the marketing structure
comprises predominantly. Primar y markets like hats and shandies which
have sprung-up at convenient places to cater to the needs of the local
population.
 At the other end are areas in Nor th- West like Punjab and Har yana where
the agriculture and other facilities are developed. The market structure
comprises a larger number of organised markets.
ce
RURAL MARKETS OF INDIA CAN BE
BROADLY CATEGORISED INTO THREE
T YPES.
 Periodic Markets: fairs, and weekly markets, Kumbha-Mela,
Godavari Pushkarmas, etc.
 Mobile Traders:There is another important agency known as

mobile traders to fulfill the limited needs like vegetables,
fruits, clothes, utensils, cosmetics, spices, toiletries etc. of
rural consumers.
 Permanent Retail Shops:are developed as the population of

villages increased, their incomes improved, the demand for
goods and that too on daily basis increased.

ce
SCOPE OF RURAL MARKETING
 Rising Rural Prosperity: Average income level has improved

due to modern farming practices, contract farming
industrialization, migration to urban areas etc. There has
been an overall increase in economic activities because
during the planned rural development heavy outlay of
resources on irrigation, fertilizers, agricultural equipment's
and agro processing industry has been made. Saving habits in
rural people also has increased. This too contributes in higher
purchasing power.

ce
 Growth in consumption There is a growth in purchasing power
of rural consumers. But, the average per capita house hold
expenditure is still low compared to urban spending.
 Change in life style and Demands Life style of rural consumer

changed considerably. There has been increase in demand for
durables and non-durables like table fans, radios, mopeds,
soaps, etc. by rural consumers. This provides a ready market
for the producers.
 The growth rate of fast moving consumer goods [FMCG]

market and durable market is high in rural areas. The rural
market share is more than 50% for products like cooking oil,
hair oil etc.
ce
 Growth in consumption
 There is a growth in purchasing power of rural consumers.
But, the average per capita house hold expenditure is still low
compared to urban spending
 Change in life style and Demands

 Life style of rural consumer changed considerably. There has
been increase in demand for durables and non-durables like
table fans, radios, mopeds, soaps, etc. by rural consumers.
This provides a ready market for the producers

ce
 Market growth rate higher than urban:
 The growth rate of fast moving consumer goods [FMCG]
market and durable market is high in rural areas.
 Government schemes for entrepreneurship has exposed rural

population to various options for setting up businesses and
travel .
 Better connectivity to urban cities and products .

ce
EVOLUTION OF
RURAL MARKETING IN INDIA.
 Phase I (Before the 1960s):
 Rural marketing referred to marketing of rural products in

rural and urban areas and agricultural inputs in rural markets.
It was considered synonymous with ‘agricultural marketing’.
Agricultural produces like food grains and industrial inputs
like cotton, sugarcane etc. were the primary products
marketed during this period.
 The scope of farm mechanization equipment’s (tractors,

pump-sets, threshers) and agriculture inputs like fertilizers,
seeds and pesticides was very limited, as the rural economy
was in a primitive stage, with traditional farming methods.
The market was totally unorganized.
ce
 Phase II (1960s to 1990s):
 The ‘green revolution’, during this phase, changed the face of
rural India ushering in scientific farming practices. Better
irrigation facilities, use of fertilizers, pesticides, high- yield
variety seeds, coupled with application of implements like
tractors, power tillers, harvesters, pump sets and sprinklers
resulted in growth of agricultural production, changing the
very content of rural markets. During this phase, apart from
conventional ‘agricultural marketing’, a new area –
‘marketing of agricultural inputs’ emerged.

ce
 Phase III (1990s Onwards):
 During this phase, India’s industrial sector gained in strength

and maturity. A new service sector emerged, signifying the
transition of an agricultural society into an industrial one.
 Meanwhile, the increased plan outlay of Central and State

governments for rural development and strengthening of local
governance (through Panchayati raj institutions) witnessed
socio-economic progress. In addition, the economic reforms
further accelerated the process by introducing competition
into the markets. All these factors resulted in the growth of
rural markets.

ce
EMERGING TRENDS OF RURAL
MARKETING IN INDIA.
 Population: The Indian rural market due to its immense size
and demand offers a chance to advertisers with more than
400 districts and six lakh villages approximately. rural
masses address
 It was observed that on a yearly basis the rural purchaser is
spending more than USD$ 9billion in the FMCG sector making
the Indian rural market worthwhile.

ce
 Green revolution: Dr. Swami Nathan, in the year 1995, gave a
breakthrough by introducing green revolution by the
utilization of scientific strategies in rural agricultural
development. At present, Rural India makes 299 million tons
yearly. The idea to develop rural agriculture by the
implementation of dynamic five-year plans had helped in
improvement of agricultural profitability. It helps in the
development allied agro and horticultural exercises like dairy,
fisheries have helped in churning some money in the favour of
the rural customers.

ce
 Entering of Mobile smart phones in rural India: 320 million
rural cell phone users both young people and seniors,
translates to more awareness, access to products, news and
availability.
 Increased purchasing power: The rural economy is supported

by a rise in disposable income resulting to increase in the
purchasing power. The government initiatives have focused on
various schemes that favour the growth of consumption.

ce
RURAL MARKET RESEARCH
 Organisations like NCAER (National Council of Applied

Economic Research), ORG-MARG, National Institute of Family
Health and Welfare (NIFHW), Statistical Institutes of India,
GOI’s Census Study Organisation, etc. have for quite some
time now been involved in rural research.
 Rural consumers are fundamentally different from their urban

counterparts. The lower levels of literacy and limited exposure
to product and services are well-known, but there are also
differences in occupation options, with a direct impact on
income levels and income flows, and a high level of inter-
dependency affecting the dynamics of rural community
behavior. All contribute to make rural consumer behavior
starkly distinct from the urban.
ce
AGRICULTURAL MARKETING: MARKETING
OF AGRICULTURAL PRODUCE.
 According to Thomsen, the study of agricultural marketing,
comprises all the operations, and the agencies conducting them,
involved in the movement of farm-produced foods, raw materials
and their derivatives, such as textiles, from the farms to the final
consumers, and the ef fects of such operations on farmers,
middlemen and consumers. This definition does not include the
input side of agriculture .
 According to the National Commission on A griculture (XII Repor t),

agricultural marketing is a process which star ts with a decision to
produce a saleable farm commodity, and it involves all the aspects
of market structure or system, both functional and institutional,
based on technical and economic considerations, and includes pre-
and post-har vest operations, assembling, grading, storage,
transpor tation and distribution.
ce
 The special characteristics which the agricultural sector
possesses, and which are dif ferent from those of the
manufactured sector, are:
 1. Perishability of the Product:
Most farm products are perishable in nature; but the period of
their perishability varies from a few hours to a few months. To a
large extent, the marketing of farm products is virtually a race
with death and decay.
Their perishability makes it almost impossible for producers to fix

the reserve price for their farm-grown products. The extent of
perishability of farm products may be reduced by the processing
function; but they cannot be made non-perishable like
manufactured products. Nor can their supply be made regular.

ce
 Seasonality of Production: Farm products are produced in a
particular season; they cannot be produced throughout the
year. In the harvest season, prices fall. But the supply of
manufactured products can be adjusted or made uniform
throughout the year. Their prices therefore remain almost the
same throughout the year.
 Bulkiness of Products: The characteristic of bulkiness of most

farm products makes their transportation and storage difficult
and expensive. This fact also restricts the location of
production to somewhere near the place of consumption or
processing. The price spread in bulky products is higher
because of the higher costs of transportation and storage

ce
 Variation in Quality of Products: There is a large variation in
the quality of agricultural products, which makes their
grading and standardization somewhat difficult. There is no
such problem in manufactured goods, for they are products of
uniform quality.
 Irregular Supply of Agricultural Products: The supply of

agricultural products is uncertain and irregular because of the
dependence of agricultural production on natural conditions.
With the varying supply, the demand remaining almost
constant, the prices of agricultural products fluctuate
substantially.

ce
 Small Size of Holdings and Scattered Production: Farm
products are produced throughout the length and breadth of
the country and most of the producers are of small size. This
makes the estimation of supply difficult and creates problems
in marketing.
 Processing: Most of the farm products have to be processed

before their consumption by the ultimate consumers. This
processing function increases the price spread of agricultural
commodities. Processing firms enjoy the advantage of
monopsony, oligopsony or duopsony in the market. This
situation creates disincentives for the producers and may
have an adverse effect on production in the next year.

ce
EXAMPLES OF RURAL MARKETING
 https://www.youtube.com/watch?v=xNBgDCWtw70
 https://
vimeo.com/84366501?embedded=true&source=vimeo_logo&
owner=14713612

ce
RURAL ECONOMY : CONCEPT AND
CHARACTERISTICS OF RURAL
ECONOMY,
 Size of the Community:
 The village communiti es are smaller in area than the urban
communiti es. As the village communiti es are small, the
populati on is also low.
 Social Mobility:
 In rural areas, mobility is rigid as all the occupati ons are based
on caste. Shift ing from one occupati on to another is diffi cult as
caste is determined by birth. Thus, caste hierarchy determines
the social status of the rural people.
 Density of Populati on:
 As the density of populati on is low, the people have inti mate
relati onships and face-to face contacts with each other. In a
village, everyone knows everyone.

ce
 Agriculture is the Main Occupati on:
 A farmer has to perform various agricultural acti viti es for which
he needs the cooperati on of other members. Usually, these
members are from his family. Thus, the members of the enti re
family share agricultural acti viti es.
 Close Contact with Nature:

 The daily acti viti es revolve around the natural environment. The
villagers consider land very important as they depend on it for
their food, clothing and shelter.

ce
 Homogeneity of Population:
 The village communities are homogenous in nature. Most of
their inhabitants are connected with agriculture and its allied
occupations, though there are people belonging to different
castes, religions and classes.
 Social Stratification:
 In rural society, social stratification is a traditional
characteristic based on caste. The rural society is divided into
various strata on the basis of caste.
 Social Solidarity:
 The degree of social solidarity is greater in villages as
compared to urban areas. Common experience, purposes,
customs and traditions form the basis of unity in the villages.
ce
 Social Interaction:
 The frequency of social interaction in rural areas is
comparatively lower than in urban areas. However, the
interaction level possesses more stability and continuity. The
relationships and interactions in the primary groups are
intimate. The family fulfills the needs of the members and
exercises control over them.
 Joint Family:
 Another characteristic feature of the rural society is the joint
family system. The family controls the behaviour of the
individuals. Generally, the father is the head of the family and
is also responsible for maintaining the discipline among
members. Hemanages the affairs of the family.
ce
FACTORS AFFECTING RURAL ECONOMY
 Infrastructure – The infrastructural condition of a rural area

has a direct link with its scale of development. Primarily,
infrastructure consists of good roads, a consistent supply of
electricity, and availability of transport.
 With these factors, governing bodies have been able to reduce

connectivity issues related to these areas. As a result, there
has been an increase in the efficiency of the supply of
agricultural output to mainland markets all over India.
Therefore the opportunity of income increases among the
rural residents.

ce
 Education –The level of education plays an integral role in the
overall progress of rural areas. Education introduces one to new
and innovative ideas to improve his/her social condition.
 Educating the rural population at an early age ensures that, they
are open to countless employment oppor tunities from multiple
sectors and industries.
 Healthcare –healthcare is an impor tant factor af fecting rural

development in India. The rural population is of ten susceptible to
diseases that can be avoided with proper healthcare measures.
Besides, this contributes directly to their productivity.
 Proper healthcare systems also reduce the mor tality rate, thus
ensuring a healthy and meaningful life.
ce
 Technology –modern production techniques in various sectors
can actively increase their rate of production, which allows for
a remarkable rise in the scale of economic activities in rural
areas.
 On the other hand, the technology significantly reduces

irrigation and quality issues. Therefore, the presence of
appropriate technological means such as pumps, tractors is
the make-or-break factor of rural economic development.
 In addition, access to clean drinkable water and sanitation is

a must for the development of rural areas.

ce
RURAL-URBAN DISPARITIES AND POLICY
INTERVENTIONS,
 There are glaring disparities in income distribution,
consumption and quality of life between rural and urban India.
 Income disparity: The rural-urban divide in India is so

prominent that the income of an average person in the rural
parts of India is less than even half of the urban counterpart.
 Lack of opportunities: There is a lack of livelihood
opportunities, modern amenities and services, necessary for
decent living in rural areas.
 Insufficient public healthcare infrastructure. A majority of
health infrastructure is in the private sector, which is limited
to the middle classes in urban India. Rural areas are catered
by government-run dispensaries which lack infrastructure and
medicines.
ce
 Exclusion: A majority of rural society remains excluded from
India’s journey of development.
 Lack of infrastructure: There is improper and inadequate

provision of infrastructure when compared to urban areas.
 Decline in profitability and productivity within agriculture: The

decline of India’s agriculture and the rise of the urban-centric
service-led economic growth has led to the widening of rural-
urban disparities

ce
 Some impor tant schemes for Rural Development launched by
Government of India are –
 Pradhan Mantri Gram Sadak Yojana (PMGSY)

 Launched on 25 December 2000 by then Prime Minister Atal
Bihari Vajpayee, the scheme aims at enhancing rural road
connectivity. This scheme provides connectivity to the
habitations with less or no connectivity at all and helps in
pover ty reduction by promoting access to economic and social
ser vices. This ensures sustainable pover ty reduction in the long
run as people get an oppor tunity to get connected with the rest
of the world. The scheme has been benefiting several villagers
and is helping them lead better lives. Nearly 82% of roads have
been built till December 2017 which have successfully connected
several rural areas to cities.
ce
 Deen Dayal Upadhyaya Grameen Kaushalya Yojana, a part of
National Livelihood Mission, has the objectives of catering to
the career aspirations of the rural youth and adding diversity
to the income of rural families. Launched on 25th September
2014, the scheme’s prime focus is on the rural youth of poor
families aged between 15 and 35. An amount of Rs 1500
crores has been provided for the scheme which will help in
enhancing employability.

ce
 Deendayal Antyodaya Yojana/ National Rural Livelihood
Mission
 Swarnjayanti Gram Swarozgar Yojana which is redesigned as
National Rural Livelihood Mission was launched in 2011 by
Ministry of Rural Develop. Also known as Ajeevika , this
scheme aims at empowering women self-help model across
the country. Under this scheme, the government provides a
loan of 3 lakh rupees at an interest rate of 7% which can be
reduced to 4% at the time of repayment. The scheme was
aided by World Bank and aimed at creating efficient and also
effective institutional platforms for poor people.

ce
 Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA)
 As per the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) of 2005, 100 days of employment
is guaranteed to any rural household adult who is willing to do
unskilled manual work in a financial year. The Act addresses
the working people and their fundamental right to live life
with dignity. If a person does not get a job within 15 days, he
is eligible for getting unemployment allowance. National
Rural Employment Guarantee Act (NREGA) also highlights the
importance of basic right to work.

ce
ROLE OF AGRICULTURE IN THE
ECONOMIC
DEVELOPMENT OF INDIA.
 The Indian economy is dominated by the agriculture sector,
evidenced by the fact that approximately 60 per cent of
India’s population is involved in Agriculture and Allied sectors.
 Recently, India has seen a gradual occupational shift in the

rural regions from farm to non-farm employment and rural
India has seen an increase in non- agriculture income.
 This is primarily attributed to below par agricultural yields in

many years, seasonal unemployment, lack of modern
agriculture practices, and increased awareness and education
amongst rural youth.

ce
 Due to the COVID-19 pandemic, the Indian economy has
shrunk by 23.9 per cent in the second quarter of FY2020-21,
the worst decline recorded in the last 15 years.
 Consumer expenditure and business investment are the two

key drivers for growth. During the first quarter of 2020,
consumer expenditure declined by 27 per cent, while business
investments declined by 47 per cent

ce
 Agriculture not only supplies food to a country’s growing
population, it also supplies raw materials to a large number
of industries. In truth, most of India’s traditional industries
such as sugar, tea, jute, textiles, etc. are agro-based in
nature. So a setback on the agricultural front adversely
affects the growth of such industries. This is known as the
supply linkage of agriculture with industry.
 2. Agriculture has also demand linkage with industry.

Agriculture creates demand for basic inputs such as chemical
fertilizers, pesticides, etc., but also for capital goods, like
tractors, pump sets, etc., and for light consumer goods such
as two wheelers, radios, mobiles, T V sets etc., more so after
the recent trend towards rural electrification.
ce
 With transformation of traditional agriculture, there is
specialisation which leads to production for exports.
 Thus, agricultural development is so much important for

reducing urban unemployment and income inequality.
Moreover, understanding the interactions between agriculture
and the other sectors of the economy is crucial for shaping
appropriate developmental policies.

ce
C H A N N E L S O F D I S T R I B U T I O N L I K E I T C E - C H O U PA L , G O D R E J
A D H A R , H U L , S H A K T I A N D T R A D E M A N AG E M E N T, R U R A L
R E TA I L I N G
 ITC E- Choupal – https://www.youtube.com/watch?v=to5_HxvrZMs
 ITC is a leading Indian company .
 Its International Business Division was created in 1990 for trading in

agricultural commodities. The concept of eChoupal was introduced in
June 2000 as an initiative to improve the supply chain by linking
directly with farmer s for procurement.
 It was also designed to play the role of a social gathering place, for
the exchange of information as well as a place for e-commerce
transactions. What star ted initially as a way to modify the
procurement process for crops like soy, and wheat, turned into a
lucrative distribution and product development channel for ITC. The e-
Choupals are operated by a sanchalak (operator), who also doubles up
as an ITC salesman.
ce
 A farmer can visit the kiosk and show a sample of his produce
to the sanchalak, who gives him a quote. If the farmer finds
the quote attractive, he can take the produce to an ITC
collection centre and receive payment within two hours. The
e-Choupal also provides other information to the farmer,
including crop-prices, weather and knowledge on scientific
farming techniques

ce
GODREJ
ADHAR
 Started in December 2003, Aadhaar Retailing was Godrej
Agrovet’s rural retail initiative catering to the growing
consumption demand in rural India.
 Godrej Agrovet Ltd., a part of the Godrej Group, is a market

leader in animal feeds, branded chicken, innovative agri-
products & oil palm development,
 The Godrej Aadhar centres offers soil testing facilities,

veterinary services. The company also provides farmers with
solutions to problems regarding their agricultural output,
which includes what kind of crop can they plant and when,
along with techno-commercial suggestions to help them give
a better output. .
ce
 In Ma rch 2 0 0 8 , A a dha r Re ta i l i n g e nte r e d i nto a j oi n t-ve n t u r e betw ee n Fut u r e
Ven tu r e s Indi a Li mi te d (F V IL) w hi ch he l d 7 0 pe rce n t s t a ke a n d G odr e j A grove t
w hi ch he l d r e s t of th e 3 0 pe rce nt s t a ke i n A a dha r Re ta i l i n g Li mi te d.
 F V IL i s pa r t of Fut u r e G rou p – a n e s ta bl i s he d l e a de r i n In di a n r eta i l s e ctor. It

ha d pu rch a s e d t he s ta ke fo r R s 3 0 .1 8 cror e from i t s promote r G odr e j
A grovet.
 It n ow ope r a te s s tor e s i n G u j a r a t , Ma ha r a s ht r a , H a r ya na a n d Pu n j a b a n d
ma i nl y s e l l s w h e a t a n d pa ddy a pa r t f rom da i l y n e e d produ ct s . •
 A a dha a r S u pe r Ma rket i s pa r t of Futu r e G rou p w i t h mor e t h a n 1 3 3 s tor e s

s pr e a d i n Pu n j a b, R a j a s t h a n, G u j a r a t a n d A ndhr a Pr a de s h . A a dh a a r S u pe r
Ma rket prov i de s mode r n s h oppi n g expe r i e nce to i t s cu s tome r i n Ru r a l a n d
S e mi U r ba n a r e a s of t he Indi a n Sta te s .

ce
HUL
 Hindustan Unilever is the pioneer and largest player in India’s

FMCG market. HUL was the first company to step into the
Indian rural marketing.
 HUL started its first effort towards going rural 1960’s
onwards, through indirect coverage of accessible rural market
through its urban network stockists and distributors.
 HUL proactively engaged in rural development in 1976 with
Integrated Rural Development Programme in Etah district of
Uttar Pradesh.
 In 1990, HUL launched ‘Operation Streamline’ for distribution

of products to inaccessible rural markets with High potential
using unconventional transport like bullock carts, tractors and
bicycles and appointed rural distributors and star sellers.
ce
 In 2000, HUL started Project Shakti to reach inaccessible low
potential rural markets. This project has reached 100,000
villages. HUL embarked upon Project Samuriddhi in 2003 to
create sustainable villages in Dadra and Nagar Haveli.
 It also creates livelihood opportunities for rural women who

work under this scheme as Shakti Amma’s (SA). Project
Shakti that has enrolled about 45,000 women entrepreneurs
from about 18 different states is HUL’s rural direct-to-
consumer retail distribution initiative where the Shakti
Amma’s act as ambassadors for the product promotion.

ce
 HUL appoints Shakti Amma’s by identifying underprivileged
women through help of village panchayats. They train them to
become saleswomen & after training she invests small money
to buy products for selling from HUL.
 Hence a Shakti Amma is HUL’s last mile connectivity in small

villages, where appointment of distributors isn’t economically
viable. Shakti Amma sells the product through setting a petty
shop at home or doing a door-to-door sale. Products are also
sold to the retail shops in that village through Shakti Amma.

ce
 Shakti Amma’s are trained by HUL sales trainers who coach
them on product pitching and convincing customers to buy. As
Shakti Amma regularly visits the homes on a day to day basis
with her products she becomes a familiar face in the village
and starts to build trust with villagers over time. This makes
selling an easy business for her.
 She also has the advantage of convincing people in local

language they understand. As it’s difficult for women to
commute longer distance and distribute products in nearby
villages, HUL launched the initiative ‘Shaktimaan’.
‘Shaktimaan’ are men from Shakti Amma family, who are
supported with bicycles by HUL for delivery of products

ce
 In order to make the programme more ef fective, HUL organizes
Shakti Days in villages which is an market place (haats) filled with
music and gif ts. Products are put on display and on sale to
consumers. Haats are an bonanza for Shakti Amma’s as it helps
them clear their stock quickly.
 Product literacy is at minimal level in many small villages &

people are still ignorant of the harm germs could cause. This
brings in a need for brands to create basic awareness to people on
hygiene and other factors.
 HUL organizes hygiene campaigns in schools, health and other

camps in villages that help them spread message on hygiene and
nutrition. Such initiatives help HUL take their products more
ef fectively to consumers.
ce
RURAL RETAILING
 Previously, rural retail was not considered as a force to reckon

with but since the urban markets globally are fast
approaching saturation on the lines of western economies,
the rural segment has become quite effective in tackling such
problems arising due to the global recessionary effects which
have left markets shaken.
 This could be attributed to the constant moving of the rural

customers up the value chain whether in terms of productivity
or consumption in various parts of the world.

ce
 Companies like McDonalds and Pepsi have given bulk deals to
farmers in the states of Maharashtra and Punjab to supply
with the raw materials which are used in the finished goods
sold in huge numbers, predominantly in the urban region.
 To understand the importance of rural marketing in the

overall portfolio of a company, the example of Tiger brand
biscuits of Britannia Ltd. would be an apt one. Britannia
launched this biscuit prominently for the rural market and
was rewarded with an increase from 7 to 15% in the glucose
biscuit segment.

ce
ce
 Godrej has designed a refrigerator especially for the rural
market by the name Chotukool. This 45-litre refrigerator
represented a technological marvel-a small, inexpensive
thermoelectric appliance powered by a rechargeable battery.
 Rejecting standard models of distribution, Godrej & Boyce

worked with India Post to deploy the Chotukool to target
communities as the India Post network is very well spread in
India and is about three or four times larger than the best
logistic suppliers.

ce
 Another example of the changing face of the rural market and
the effect of the same can be envisaged from the case of
Nirma Ltd., a detergent maker based in the Indian state of
Gujarat, which made detergent powder and soap available to
rural segments at a much more competitive price than its
pricey competitors like HUL and P & G.
 The company launched a slew of initiatives such as new

product formulation, well-distributed channels, low -cost
manufacturing, sensible packaging and value pricing.

ce
 As a testimony to its ability to tap the bottom of the pyramid,
today, Nirma stands as one of the leading brands in the
detergent market across the nation.
 The success of Nirma detergent compelled the industry leader

HUL to come out with products like Wheel detergent and to
water down their premium offering Surf Excel detergent to
bring out its more pocket-friendly avatar namely Rin Advanced
and budget brand Wheel.
 The same happened with P & G which brought economical

versions of its Arial detergent as well as pocket-friendly
brands like Tide.

ce
ce
ce
 DCM Shriram came up with its Hariyali Kisan Bazar project in
the year 2002 in the Indian states of Haryana, Punjab,
Rajasthan, Uttar Pradesh, Madhya Pradesh and Uttarakhand
to cater to the requirements of the farmers in these regions.
 Through its growing network of stores, DSCL is able to

establish relationships with farmers and provide them with a
host of agricultural services, including improved crop inputs,
agronomic support, fuel, banking, and consumer goods. The
outlets also buy back some of the farmers' production at
harvest time. In utilizing the products and services offered by
the stores, farmers are able to improve the quality of their
crops and access a network of helpful resources

ce
ce
 Companies like Micromax, Kabonn, Lava, Lemon, during their hey days,
gave sleepless nights to the MNC brands like Nokia, Samsung and LG
owing to their ability to under stand the basic problem which the rural
people faced when it came to the usage of mobile phones namely lack
of electricity and high-end sets.
 These companies came out with such sets which were energy -ef ficient,
inexpensive, came with multitude of features like dual SIM and gave
value for money to the customer s. In no time, these brands were lapped
by the rural people along with their lower-class urban counterpar ts.
 Although in the present scenario the above-mentioned brands have lost

their sheen and position in the Indian mobile market but this has to do
with the aggressive pricing of the Chinese giants like Vivo, Oppo and
Xiaomi which the home-grown Indian brands were not able to match

ce
DEMOGRAPHY OF RURAL MARKETING-
POPULATION,
OCCUPATION PATTERN, LITERACY RATE
 Nature of Rural Market (Population)
 1. Large, Diverse and Scattered Market: Rural market in India is
large, and scattered into a number of regions. There may be less
number of shops available to market products.
 2. Major Income of Rural consumers is from Agriculture: Rural
Prosperity is tied with agriculture prosperity. In the event of a
crop failure, the income of the rural masses is directly af fected.
 3. Standard of Living and rising disposable income of the rural
customers: It is known that majority of the rural population lives
below poverty line and has low literacy rate, low per capital
income, societal backwardness, low savings, etc. But the new tax
structure, good monsoon, government regulation on pricing has
created disposable incomes. Today the rural customer spends
money to get value and is aware of the happening around him.

ce
 4. Traditional Outlook: Villages develop slowly and have a
traditional outlook. Change is a continuous process but most
rural people accept change gradually. This is gradually
changing due to literacy especially in the youth who have
begun to change the outlook in the villages.
 5. Rising literacy levels: It is documented that approximately

45% of rural Indians are literate. Hence awareness has
increases and the farmers are well-informed about the world
around them. They are also educating themselves on the new
technology around them and aspiring for a better lifestyle.

ce
 Diverse socioeconomic background: Due to dispersion of
geographical areas and uneven land fertility, rural people
have disparate socioeconomic background, which ultimately
affects the rural market.
 7. Infrastructure Facilities: The infrastructure facilities like

cemented roads, warehouses, communication system, and
financial facilities are inadequate in rural areas. Hence
physical distribution is a challenge to marketers who have
found innovative ways to market their products.

ce
I N C O M E S O U R C E , E X P E N D I T U R E PAT T E R N , R U R A L D E M A N D A N D
C O N S U M P T I O N PAT T E R N , R U R A L I N F R A S T R U C T U R E H O U S I N G ,
E D U C AT I O N , E L E C T R I C I T Y, R OA D S .
 The Affluent Group: They are cash rich farmers and a very few
in number. They have affordability but not form a demand
base large enough for marketing firms to depend on. Wheat
farmers in Punjab and rice merchants of Andhra Pradesh fall
in this group.
 • The Middle Class: This is one of the largest segments for
manufacturedgoods and is fast expanding. Farmers cultivating
sugar cane in UP andKarnataka fall in this category.
 • The Poor: This constitutes a huge segment. Purchasing
power is less,but strength is more. They receive the grants
from government and reapthe benefits of many such schemes
and may move towards the middleclass. The farmers of Bihar
and Orissa fall under this category.
ce
 Ineffective distribution channels : The distribution chain is not
very well organized and requires a large number of
intermediaries, which in turn increases the cost and creates
administrative problems.
 Due to lack of proper infrastructure, manufacturers are

reluctant to open outlets in these areas. They are mainly
dependent on dealers, who are not easily available for rural
areas. This is a challenge to the marketers.

ce
 Factors like cultural congruence, different behaviour and
language of the respective areas make it difficult to handle
the customers. Traits among the sales force are required to
match the various requirements of these specific areas.
 Quick communication is the need of the hour for smooth

conduct of business, but it continues to be a far cry in rural
areas due to lack of communication facilities like telegraph
and telecommunication systems etc. The literacy rate in the
rural areas is rather low and consumer’s behaviour in these
areas is traditional, which may be a problem for

ce
 Spurious brands: Cost is an important factor that determines
purchasing decision in rural areas. A lot of spurious brands or
look-alikes are available, providing a low cost option to the
rural customer. Many a time the rural customer may not be
aware of the difference due to illiteracy.
 Seasonal demand: Demand may be seasonal due to
dependency on agricultural income. Harvest season might see
an increase in disposable income and hence more purchasing
power.
 Dispersed markets: Rural population is highly dispersed and
requires a lot of marketing efforts in terms of distribution and
communication.

ce
UN DE RSTAN DI N G R UR A L C ON SUM E R BE H AV I OUR :
R UR A L SOC I E T Y- DE M OG R A P H I C SOC I OLO G I CAL , C ULT UR A L
P E RSP E C T I VE A N D LI F E ST Y L E OF R UR A L I N DI A .
 Traits of rural consumer –

 Low purchasing power
 Low Literacy levels
 Lower standard of living
 Low per capita income
 Lower economic and social position

ce
 The level of involvement in buying products & services
depends on various factors such as price, availability, variety,
knowledge and purpose.
 Rural & Urban consumer behaviour is different to same

product. Wrist watch buy may be low involvement product for
urban consumer whereas same is high involvement product
for rural consumers

ce
 Factor s Influencing the Rural Consumer Behaviour -
 Attitudes
 Stimuli
 Perception
 Changing Belief
 Belief s & values ,Culture
 The role of rural women role is changing. Increasing education levels and
awareness about the health & education needs of family. Women
involvement in family buying decision process is also increasing.
 Companies use various ways to influence rural consumer s such as -

 Magic shows
 Nautanki per formance
 Puppet show
 Wheel of for tune game at melas
ce
FACTORS AFFECTING RURAL CONSUMER BEHAVIOUR-
GLOBALIZATION/MODERNIZATION AND
TECHNOLOGICAL FACTORS
 To understand the buying behavior of rural consumers, we must go to
the factors that influence their buying behavior. The factors include:
 1 . Socio-economic environment of the consumer

 2. Cultural environment
 3. Geographic location
 4. Education/literacy level
 5. Occupation
 6. Exposure to urban lifestyles
 7. Exposure to media and enlarged media reach.
 8. The points of purchase of products.
 9. The way the consumer uses the products
 10. Involvement of others in the purchase.
 11 . Marketers ef for t to reach out the rural markets

ce
R UR A L M A RKE T ST R ATE G I E S W I T H S P E C I A L R E F E R E N C E TO
SE GM E N TATI ON , TARG E T I N G A N D P OSI T I ON I N G .
 Market segmentation is the subdividing of a market into

homogeneous subsets of customers, where conceivably any
subset may be selected as a market target, to be reached
through a distinct marketing mix.
 The power of this concept is that in an age of intense

competition for the mass market, marketers venturing into
rural markets may prosper through creatively serving specific
market segments, whose needs are imperfectly satisfied by
the mass –market offerings.

ce
 In some places, toothpaste and soap are luxuries, whereas in some
other places, it is necessity.
 Buf faloes displayed at the haats for sale are dyed an immaculate
black with Godrej hair dye. Horlicks is used as a health beverage to
fatten up cattle in Bihar. Paints meant for coloring up the rich-smooth
walls are used to paint the horns of cattle to make identification
easier and to achieve a long-term protection from thef t. Iodex is
rubbed into the skins of animals af ter a hard day’s work to relieve
muscular pain, washing machines have been used for making lassi.
 In some par ts of Rajasthan, utensils are cleaned with ash and sand
due to water scarcity. A washing powder would face competition from
these alternatives that need ver y little water.
 Hard water in most villages in Bikaner is the reason for the low
acceptance of soap.
ce
 Difference in levels of infrastructural development (BIMARU
vs. other states) Media exposure levels (media-dark, media-
grey, and media-green regions)
 Variation in literacy levels (Bihar vs. Kerala)
 Differences in income levels and patterns of income flow

(farmers vs. daily wage earners)
 Family structure (large joint families vs. small nuclear

families)
 Climate : Summer, Rainy, Winter (Talcum Powder is used more
in hot and humid regions)

ce
P R O D U C T A N D S E R V I C E S T R AT E G I E S . R U R A L P R O D U C T
C AT E G O R I E S - F M C G S ,
A G R I C U LT U R E G O O D S A N D S E R V I C E . I M P O R TA N C E O F B R A N D I N G ,
PAC K AG I N G A N D L A B E L I N G .
 The Rural market is not a homogenous set of customers with

preferences frozen in time. When developing products in any
category, marketers must identify the typical rural specific
needs. Urban products cannot be dumped onto rural markets
without modifications. Tailor-made products are better
received by the rural audience as the consumers feel
empowered and tend to dentify with the offering.
 For instance, shampoos or soaps with distinctive, strong rose

or jasmine perfumes are very popular with the rural women in
South India. The urban women do not identify as strongly with
these perfumes. Sachetization is also a distinctly rural-driven
phenomenon.

ce
T H E S P E C I F I C P R O D U C T S T R AT E G I E S , W H I C H C A N B E E M P LOY E D TO
D E V E LO P O R M O D I F Y T H E P R O D U C T S TO TA R G E T S T H E R U R A L
M A R K E T, C A N B E C L A S S I F I E D A S FO L LOW S :
 1 . Small unit packing: Given the low per capita income & purchasing
habits of the rural consumers, small unit packages stand a good
chance of acceptance in rural market.
 Single ser ve packets or sachets are enormously popular in India. They

allow consumers to buy only what they need, experiment with new
products, & conser ve cash at the same time. This method has been
tested by products life shampoos, pickles, biscuits, Vicks cough drops
in single tablets, tooth paste, etc. Small packing’s stand a good
chance of acceptance in rural markets.
 The advantage is that the price is low and the rural consumer can
easily af ford it. Also the Red Label Rs. 3.00 pack has more sales as
compared to the large pack . This is because it is ver y af fordable for
the lower income group with the deepest market reach making easy
access to the end user satisfying him.
ce
 Cavin Kare introduced shampoo in 4 ml sachets at 0.50 paise,
Rasna is now available in sachet at Rs 1, Ponds introduced 20
gm talcum powder, and Tiger biscuit is available in four
biscuits pack at Rs 1.

ce
 New product designs: The rural product usage environment is
tough because of rough handling, rough roads & frequent
power fluctuations. Thus, all these environmental factors
must be considered while developing the products meant for
rural audience..
 PVC shoes and chappals are designed to work in adverse
conditions, LG electronics launched “Sampoorna” T V that can
withstand power fluctuations.

ce
 3. Sturdy products: Sturdiness of
 Sturdiness of a product is an important factor for rural
consumers. The rural consumers believe that heavier the
product higher the power and durability. To illustrate, Bullet
motorcycle is popular in village due to its ruggedness, Escorts
has positioned their motorcycle “Rajdoot” as a tough vehicle.
 4. Utility Oriented Products:

 Rural consumers are more concerned with the utility of the
product and its appearance. To illustrate, Philips introduced
low cost radio “Bahadur” with only medium wave receiver,
which was failed and found that rural consumer purchase
radio not only for news but also for entertainment.

ce
 Storage of the product : Because of the erratic supply in rural
areas it is a test for marketers to make proper arrangements for
storage of edible products like ice creams and cold drinks.
Companies now provide ice boxes to retailers for the storage of
cold drinks, ice creams etc. Such ice boxes are usually made of
thick thermo cal and keep the products cool and also increases
their shelf life.
 6. Brand name: For identification, the rural consumers do give

their own brand name. Everyday battery with a cat symbol – rural
consumers remember it as ‘billi wali batter y’, Lifebuoy soap –
rural consumers remember it as ‘lal saboon’, and Mahindra
tractor’s brand ‘Bhumiputra’. Slogan of Red Label Tea “jiyo mere
lal” proved ver y ef fective to promote sales.
ce
 Tata Steel has branded its galvanised corrugated sheets as
Tata Shakthi, a sign of power. Similarly the galvanised
corrugated sheet produced by Ispat Industries has been
named as Ispat Kavach .The brand name conveys strength,
durability and toughness.

ce
PRICING STRATEGIES, PROMOTIONAL STRATEGIES.
SEGMENTATION, TARGETING AND
POSITIONING FOR RURAL MARKETING .
 A rural customer is price-sensitive mainly because of his relatively
low level of income and unit price of a product will have an impact
on sales. Pricing the product at a lower price really attracts rural
population for tr ying the products. Though rural incomes have
grown in the past decade, the money earned by the average rural
consumer is still much lower than that of his urban counterpar t.
 A large par t of the income is spent on the basic necessities, leaving

a smaller por tion for other consumer goods. Examples- (1) Bharath
Petroleum has introduced five k g gas cylinders to reduce initial
deposit and refill cost for rural consumers. The deposit for 5 k g
cylinder is Rs.350/- against Rs.700/- for 14 k g cylinder and refill
cost is Rs.90/- against Rs.250/- for 14 k g cylinders. (2) Small unit
packs of shampoo, hair oil, toothpaste, biscuits and bathing soap.

ce
 The production cost can be lowered by using less
sophistication and rather concentrating on sturdiness and
utility of the product. Examples- 1. Maharaja Appliances Ltd.,
sells a sturdy Bonus washing machine, without a drier for
rural market at Rs.2,990/-. 2. The rural markets operate on a
price-value proposition. LC Electronics has knocked off some
of the frills in the products.The idea is to give features that
are absolutely indispensable.
 By giving refill packaging marketers can add value to the

pricing of the product. Examples- Bourn vita available in refill
pack and detergents made available in reusable packaging.

ce
 Credit Facilities:
 Success or failure of crop depends upon climatic conditions.

Favourable conditions give bumper yields and unfavourable
conditions result in very low yields, and, therefore, rural income
is seasonal in nature. The farmer requires credit for meeting
cultivation expenses as well as running the family between
marketing of produce and the har vest of next crop.
 He avails credit facilities from the village merchant for buying

household necessities. The rural retailer in turn requires credit
facilities from the distributors of consumer goods. Many
companies extend credit to the village retailers to persuade
them to stock the company’s products and push it in the market.

ce
 Pricing Strategy # (e) Discounts:
 Discounts are offered to motivate the retailers to sell more of

the companies’ products. A discount of about 10 per cent is
given on the maximum retail price in the case of fast-moving
consumer goods. Many Companies offer attractive additional
discounts to motivate the retailer to stock the products during
off-season.

ce
 Pricing Strategy # (f) Promotional Schemes:
 Normally farmers purchase consumer durable items after the

harvest of crops. Similarly, Diwali, Pongal, Onam, Dassera, Id
and Christmas are the festivals for buying household articles.
Special promotion schemes such as new product introduction
scheme, festival offer by way of special discounts, exchange
offer i.e., taking back used consumer durables are
aggressively promoted during harvesting and festival seasons
in rural areas for increasing sales of the products.

ce
CHALLENGES AND INNOVATIVE MEASURES
FOR RURAL
MARKETING’;
 Some of the challenges of rural marketing are:
 1. Understanding the Rural Consumer

 2. Seasonal Demand
 3. Undeveloped People and Underdeveloped Markets
 4. Many Languages and Diversity in Culture
 5. Ineffective Distribution Channels
 6. Inadequate Media Coverage
 7. Warehousing Problems
 8. Low Literacy Levels
 9. Inadequate Banking and Credit Facilities
 10. Rural Sales Management

ce
 Krish-e, Mahindra’s new Farming as a Service (FaaS) business,
roped in Manoj Bajpayee, India’s most versatile actor with
family roots in farming, as brand ambassador for its Krish-e
App and Krish-e Nidaan App in October. Krish-e is a new
business vertical from Mahindra that provides technology -
driven services, which are progressive, affordable and
accessible to farmers. With an omnichannel presence, Krish-e
aims to increase farm incomes through physical as well as
digital services across the complete crop cycle.

ce
ce
 7.Renault joins hands with CSC Grameen eStore to expand into
rural markets
 To strengthen its rural presence and move closer to the customers

in the remote areas, Renault India, in April, joined hands with CSC
Grameen eStore, a subsidiar y of CSC eGovernance Ser vices India.
As par t of the par tnership, Renault India’s leading product range
will be listed on the CSC Grameen eStore and made available to
potential customers in the rural markets through aspirational
Village Level Entrepreneurs (VLEs). Renault will build a
mechanism that would facilitate the supply of its products to VLEs
who will help list the products on select CSC Grameen eStores.
The VLEs will fur ther promote, generate enquiries, and facilitate
sales to end customers in rural markets through the suppor t of
respective Renault authorised dealerships.

ce
 Renault launches ‘Workshop on Wheels-Lite’ to strengthen rural
presence
 Following the success of the Workshop on Wheels (WOW) initiative,

an endeavour to of fer a hassle-free car ownership experience to
the customers in rural markets, Renault has introduced the new –
‘Workshop on Wheels-Lite’ initiative in December. ‘Workshop on
Wheels-Lite’ is a mobile workshop on a two-wheeler equipped with
all the key tools and technologies to undertake minor ser vices,
repairs and other related works for all Renault vehicles. To cater to
the rural customers, Renault launched ‘Workshop on Wheels’
(WOW) in 2016 to facilitate the ser vicing of Renault vehicles. In
the past one year, Renault India has been aggressively pursuing an
innovative and comprehensive strategy to amplify and grow its
presence in smaller towns and cities including rural markets.

ce
ce
 Bharti AXA Life Insurance launched its crop insurance
campaign – ‘Bohot Zaroori Hai’ – for farmers in Maharashtra
and Karnataka to encourage them about their crop protection
and financial security. The campaign is aimed at making the
farming community aware about the relevance and
significance of crop insurance that mitigates the rural
distress caused by crop failure or damage due to factors like
unseasonal rains, monsoon failure, storms, floods, pests and
diseases.

ce
ce
RURAL COMMUNICATION:
MEANING AND SCOPE.
 The communication process model remains standard for both
rural and urban markets. The sender sends the encoded
message using a selected media which receiver receives and
decodes to understand the message. This is more or less
same as in urban markets.
 However, there are many variables in the model in case of

communication strategy in Rural Marketing. e.g. There can be
language barrier and the message doesn’t get decoded the
right way and gets wasted as ‘noise’. Also due to
unavailability of mature media in rural markets the message
might not be hitting the right target audience.

ce
 Rural markets vary immensely in terms of tastes, habits and
preferences leading to different expectations of every
segment of the population.
 However, one fact is certain across all areas. The rural

consumer likes to touch and feel a product before making a
choice. Demonstrations are undoubtedly the most effective
promotional tool that shapes purchase decisions of the rural
population. Demonstrations establish the credentials of any
new technology used in developing the product.

ce
 Languages – The message should be easily understood by the
rural consumer. It should be simple and use appropriate key
words for instant connect. Message should reflect culture and
religious sentiments of the audience. e.g. Dabur distributed
religious calendars in rural markets.
 Pictorial Presentation – Considering the literacy levels of rural

markets, pictorial representation of message becomes an
important part of communication.
 Message Form – The message should be native to the place

and have utility for the consumer.

ce
 Alliances with cottage industries, dharmsalas, panchayats,
post offices and police stations for advertising have also
helped immensely. More importantly, in rural India,
experience has proved time and time again that word of
mouth is the key influencer.
 The re-use capacity and colour of the container in which the

product is packed is also a crucial factor. In fact, reusable
packaging is considered a major aid in promoting sales for
products in the rural market.

ce
 Consumer and Trade schemes that incentivize spending using
discount coupons, off season discounts, free samples, etc.
encourage spending. Lucky draws and gift schemes are a
major hit in most states.
 Another unique feature of rural markets is that the Decision

making process is collective. The persons involved in the
purchase process - influencer, decider, buyer, one who pays
can all be different. So marketers must address brand
messages in their campaigns at several levels.

ce
 Apart from regular household goods, several agribusiness
companies have also started providing gift schemes with
offers for free jewellery that influences the ladies to pressure
the farmers to purchase agricultural inputs from select
companies. This promotion strategy thus makes women
influence purchase decisions that they would ordinarily not be
involved in.

ce
Personal selling and opinion leaders: In personal selling it is
required that the potential users are identified and awareness
is created among them about the product, its features, uses
and benefits.
This can be achieved only by personal selling by highly
motivated sales person. In fact the word of mouth information
holds lot validity in rural areas even today. This is the reason
why opinion leaders and word of mouth are thriving among rural
consumers.
An opinion leader in rural areas can be defined as a person who

is considered to be knowledgeable and is consulted by others
and his advice is normally followed. The opinion leaders may be
big landlords or politicians or progressive farmers.
ce
 Special campaigns: During crop har vest and marketing seasons it is
beneficial to take up special promotion campaigns in rural areas.
Tractor owners marches conducted by MRF Limited is one such
example. Brook Bond carries out marches in rural areas with band,
music and caparisoned elephants to promote their brand of tea.
 Melas:
 Melas are of dif ferent 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
par ticipating 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. Handcar ts have been deployed for increasing
access.
ce
 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.

ce
T E LE V I SI ON , C I N E M A , R A DI O, H A N DBI L LS A N D BOOKLE T S,
POST E RS , ST I C KE R S, BA N N E R S, E TC .
 Newspapers and magazines: English newspapers and

magazines have negligible circulation in rural areas. However
local language newspapers and magazines are becoming
popular among educated facilities in rural areas. Examples:
Newspapers: Eenadu in A.P., Dina Thanthi in Tamil Nadu,
Punjab Kesari in the North, Loksatta in Maharashtra and
Tamil magazine Kumudam are very popular in rural areas.
 Television: The ownership of T V in rural area and wide

coverage has made a rural market to opt the T.V. as a prime
media of advertising. A rural marketer can advertise his
products on regional channel to seek the more attention of
rural consumers. For instance, advertisement on ET V Gujarati,
DD Girnar, Sun T V, Asianet, Star Bangla, Star Pravah.
ce
 It has made a great impact and large audience has been
exposed to this medium. HLL has been using T V to
communicate with the rural masses. Lifebuoy, Lux, Nihar oil
etc are some of the products advertised via television.
Regional T V channels have become very popular especially in
Southern states. Examples: SUN T V is very popular even in
rural areas in Tamil Nadu and Asianet is a preferred regional
channel in Kerala. Many consumer goods companies and
fertilizer companies are using these T V channels to reach the
rural customer.

ce
 Radio: Radio reaches large population in rural areas at a
relatively low cost. Example: Colgate, Jyoti Labs, Zandu Balm,
Zuari industries are some of the companies using radio
communication programme. There are specific programmes
for farmers like Farm and Home/Krishi Darshan in regional
languages. The farmers have a habit of listening to regional
news/agricultural news in the morning and the late evening.
 The advertisement has to be released during this time to get

maximum coverage in rural areas. Another advantage is that
the radio commercial can be prepared at short notice to meet
the changing needs of the rural folk.

ce
 Example: Release of a pesticide ad at the time of outbreak of
a pest or disease in crops. To the larger extent, radio plays a
significant role in rural market communication. Interestingly,
FM Radio has revitalised the era of radio. Besides,
affordability and portability of radio make the rural
consumers to possess the radio.
 Different brand sponsors promote their brand by the way of

sponsoring gift voucher or contest prices through the medium
of radio. Advertising message in local language is
broadcasted. For instance, Zandu Balm, Indigo, Dabur,
Colgate, Rasna were advertised on radio.

ce
 Community radio: Community radio is a type of radio that ser ves
to a par ticular geographic region or a group, as the name
suggests they cater to a specific audience and often use content
that is popular amongst the natives. While it provides them with
enter tainment, it also acts an information por tal of sor ts.
 Cinema: Seemingly, as a par t of regular lifestyle, rural

consumers now go for movie in theatre. In fact, big villages have
now theatres / cinema and therefore, a rural marketer can take
an advantage of it by employing adver tisement film, shor t
feature film and documentar y with creative and disguised
adver tising message. For instance, Lifebuoy, Vicks, shampoos,
Colgate adver tisement were shown in theatre of villages,

ce
 Outdoor adver tisements: At prime locations in rural areas viz. market
place, bus depot or other places where fair s are held, hoardings, wall
painting, illumination and other display can be ideally used fo r rural
communication. This fo rm of m edia, which includes signboards, wall
painting, hoarding, tree boards, bus boards, dealer boards, product display
boards etc, is cost ef fective in rural areas. Symbols, pictures and colour s
should be used in PO Ps meant fo r rural markets so that they can easily
identify the products. Generally rural people prefer bright colour s and the
marketer should Utilize such cues.
 Wall paintings: It is an ef fective and economical medium for

communication in rural areas, since it stays there fo r a long time
depending upon the weather conditions. The cost of painting one square
foot area is just Rs.10. Retailer s welcome painting of their shops so that
the shop will look better. Walls of farm houses, shops and schools are ideal
places fo r painting and the company need not have to pay any rent fo r the
same.
ce
ce
 Tree boards: These are painted boards of about two square
feet in dimension having the picture or name or slogan of the
product painted on it. The cost of such a painted board is
about Rs.80. These boards are fixed to the trees on both sides
of the village road at a height of about 10 feet from ground
level.
 These boards attract the attention of slow moving vehicles

like cycles, bullock carts and tractors and people walking on
the road. Considering the poor condition of roads, even the
buses move at slow speed through village road. Fertilizer and
pesticide companies in rural areas extensively use tree
boards. These are low priced promotion items and can be
used by consumer goods companies too.
ce
 Point of purchase: Display of hangings, festoons and product
packs in the shops will catch the attention of prospective
buyers. However a clutter of such POP materials of competing
companies will not have the desired effect and is to be
avoided.

ce
INFORMAL/RURAL SPECIFIC MEDIA
 Farm-to-Farm/House-to-House vi sit: Rural people prefer face-to-face

communicati on and farm visits faci li tate two -way commu ni cation. The
advantage i s that the sal es per son can under stand the needs and wants of
the r ural customer by di rectly discussi ng with hi m and answer his queries on
products and ser vi ces. Potenti al customer s in the vil lage are i dentified and
the company’s/distribu tor’s representative makes farm-to-farm vi sits and
hi ghli ght the benefits of the products. The per son carri es with hi m l iterature
in l ocal language and also samples of products.
 The per son does not sell the product but only promotes the use of the
product. Ver y of ten the local dealer also j oins the representati ve in making
farm-to-farm vi sits. The dealer clari fies the terms and condi ti ons of sal e and
al so makes i ndependent fo ll ow up vi si ts fo r securing order s.
 Example: This approach has been fo und to be ver y ef fective fo r agri cul tu ral
machiner y, animal heal th products and agricul tural i nputs. Many LIC agents
and companies deali ng wi th high value consumer durables have tried this
method wi th success i n ri ch rural areas.

ce
 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.
ce
 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.

ce
 Folk dances: These are well-appreciated form of enter tainment available
to the village people. The folk dance “Kuravan Kurathi” is popular in Tamil
Nadu. The troupe consists of dancer s, drummer s and musicians and they
move in a well-decorated van from one village to another village singing
and dancing. In a day the troupe cover s 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.
 Af ter the dance programme, queries, if any, about the products are
answered by the sales per son. Folk dance programme costs about
Rs.5000 per day and therefore these programmes are conducted during
the peak season in selected villages. Examples: Fer tilizer and pesticide
companies organize folk dance programmes during peak season in
selected markets. Thumps Up has sponsored Lavnis, the folk dance
programme of Maharashtra

ce
 Puppet Shows / Ramlila / Harikatha / Decorated Bullock cart:
Puppet shows, local dance performance, Harikatha, Ramlila
are commonly arranged in rural area for an entertainment.
These are the events where people gather together in huge
number. So, a rural marketer can not only adopt product
placement strategy in such events but also sponsor them.
Similarly, puppet shows should also be designed featuring the
product therein. For example, Colgate Palmolive, Titan made
the best use of festivals viz. Rathyatra, Kumbhmela and
Onam. Similarly, Parachute Oil, Nirma Washing Powder, Tiger
brand biscuits were promoted in Haat.

ce
ce
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. Seema Narendran, KPB Hinduja College of Commer 125
ce
 Information centers: They provide latest information on
cultivation of crops, fertilizer application, weed, management
and control of pests and diseases. Experienced agricultural
graduates who make frequent visits to the field and advice
farmers on modern agricultural practices manage the centers.
 They also provide information on farm implements, seeds,

fertilizers, pesticides, diesel engines, sprayers and tractors
etc. Many consumer goods companies have opened show
rooms in prosperous rural areas. Example: Hero Honda has
opened extension counters with show room facilities in major
rural markets.

ce
 Life-style marketing: Each rural market segment has certain
special features i.e. they share common life-style traits. They
include village sports, religious events, prominent
personalities and role models. Examples: Textile mills
maintaining community gardens, Mineral water companies
supplying clean drinking water during summer festivals in
villages and Consumer goods companies sponsoring Kabaddi.

ce
 Field demonstration: This is based on the extension principle “seeing
is believing” and is one of the most ef fective methods to show the
superiority of the company’s products to the customers.
 A progressive farmer who is an opinion leader is selected and the

demonstration is conducted in his field in the presence of a group of
farmers in the village.
 The farmers obser ve the results in the field and the local dealer calls
on them in their farms and persuades them to buy the par ticular
brand of pesticide or fer tilizer. Examples: a) Spraying a par ticular
brand of an insecticide against insect pests and showing the farmer
how ef fectively the insects are controlled. b) Demonstrating the use of
tractor/implements for dif ferent agricultural operations. c) Hawkins
pressure cooker has demonstration representatives who carr y out
demos in rural households.
ce
 The representative receives 1% commission for every customer
who approaches the dealer via demonstrations. e) Similarly
effectiveness of detergents, pressure cookers, vaccum cleaners
and mosquito coils could be promoted by demonstrations in
selected markets.
 Information centers: They provide latest information on

cultivation of crops, fer tilizer application, weed, management
and control of pests and diseases. Experienced agricultural
graduates who make frequent visits to the field and advice
farmers on modern agricultural practices manage the centers.
They also provide information on farm implements, seeds,
fer tilizers, pesticides, diesel engines, sprayers and tractors etc.
Many consumer goods companies have opened show rooms in
prosperous rural areas. Example:
ce
COMMUNICATION STRATEGIES FOR RURAL MARKET
ADVERTISING AND SALES PROMOTION STRATEGIES
 It is the short term tool adopted by the marketer to increase

the sales of the particular product or service in the particular
territory for a particular period of time.
 According to the American marketing association- “in a
specific sense, sales promotion includes those sales activities
that supplement both personal selling and advertising, and
coordinate them and make them effective , such as displays,
shows and exhibitions, demonstrations and other non-
recurrent selling efforts not in the ordinary routine.”

ce
 Types of sales promotion:
 • Push-up sales promotion: it is the tool where marketer
persuade third parties i.e., intermediaries like dealers,
retailers etc., to stock the products of the respective company
and actually push them towards the ultimate customers.
 Marketers provide various incentives, pop material etc. To the
intermediaries which encourage them to sell the products to
the customers. Push-up sales promotion is the important part
of promotion efforts taken up by the companies. In case of
rural marketing too the companies widely follows push-up
sales promotion strategies.
 Some of the commonly followed push-up sales promotion
strategies include-

ce
 Free display materials or point of purchase (pop) material: free
display materials like banners, sign boards, neon lights etc. Are
distributed among dealers to attract and inform the customers
about the products.
 b. Storage materials: storage materials like racks, shelves, crates,
refrigerators etc. Are distributed among shopkeepers who not only
help in visual merchandising but also aid in storing the product.
 c. Demonstrations: impor tant technique of push-up sales
promotion, free demos at dealers’ shops informs the consumers
about the handling of the product.
 d. Incentives to dealers: under the push-up sales promotion
special incentives are provided to dealers on the number of units
sold to the ultimate consumers

ce
 e. Lucky draw contest- to motivate dealers to stock the company’s
products and promote sales, lucky draw contest are organized
among dealers.
 f. Free gif ts- a common practice adopted by the companies, free
gifts are often distributed among dealers during festive seasons.
For example- Lucknow based dair y Parag distributes ‘pedhe’
among its dealers during festivals.
 Pull-up sales promotion: as the name suggests, pull-up sales

promotion is the tool where marketer pulls the customers towards
his product through various promotional schemes and adver tising.
Customers through schemes like bog-off of fers (buy1 , get 1free),
discounts, exchange of fers etc. are attracted towards the product
and purchase it.
ce
 In context of rural m arketing, follow ing pull-up sales prom otional
strategies can work:
 a. Free distribution of sam ples: distributing free sam ples am ong rural
folks not only popularize the product am ong them but also help in gaining
acceptance am ong them . When the com pany decides to en ter into new
market or launc h the new product, in suc h cases free distribution of
samples is an ef fe ctive pull-up sales prom otional activity. As com pared to
urban consum er s, the tendency to tr y the new product is low in case of
rural people and they are skeptical about the new products. Free sam ples
do the trick here and encourage trial purchase am ong consum er s.
 b. With -pack prem ium s: in with-prem ium pack s, a free product is give n
either inside the pac k or outside the pac k . It lures the custom er s to
purchase the product ove r that of com petitor s. It is successful on ly when
the free product is either com plem entar y or useful. Fo r e.g. A free
toothbrush is give n with the Babool toothpaste.

ce
 c. Price-of f premiums: it refers to cut backing the price of the
product. It can be useful not only in case of FMCG’s but also in
case of consumer durables if the discount is substantial.
 d. Money refund premiums: under this, the price of the product is
partially refunded to the consumers on the repurchase of same
product on presentation of proof of previous purchase like empty
wrapper, poly packs etc.
 e. Exchange premiums: quite similar to the above, under this
instead of refund of money a new product is given to consumers
on presentation of proof of previous purchase. HUL’s fair & lovely
has followed this tool where rural women get one new sachet of
Fair & Lovely free by exchanging for four empty packs of Fair &
Lovely.
 f. Interactive games: innovative fun filled games generates
interest among the crowd.
ce
 The winner of the game can be rewarded with the product of the
company that has sponsored such games. Such games ensure high
customer involvement and increase the interaction between the
marketer and target customers.
 g. Fairs and exhibitions: Fairs are the integral par t of rural people’s
life. For the rural people, they are the source of enter tainment and for
the marketers a good oppor tunity to launch their products in the rural
market. It has mass appeal as several villagers flock the fairs.
 Customers can be attracted by using the folk media like organizing

folk songs competition, folk dances, magic shows, puppetr y shows,
street theatre, acrobatic skills, juggler, etc. Another impor tant means
to attract the crowd can be animal parade and use of clowns. Use of
vibrant colours in the company’s stalls and organizing game shows
involving customers’ par ticipation also helps in pulling the crowd.
ce
 h. Haats: Haats are the weekly markets from where rural
consumers purchase the items of daily necessities, garments,
farm inputs etc. They are the source of entertainment for rural
people and a place of social get-together. Traces of rural haat
can be find is ancient history and dates back to as old as the
times of Chandragupta maurya. Haats provides marketers
with the opportunity to display their products. Consumers are
more ready to try the product by overcoming all inhibitions
and can 'touch and feel of the product and can generate sales
as people come to the haats with an intention to buy.

ce
 i. Melas: Melas are again the essential element of India’s
culture and pulls large population. In a trade mela, one can
find variety of products across categories. Melas are held
usually during festive seasons like dusshera, diwali, holi, eid
etc. During melas marketers gets an opportunity to interact
with large number of consumers and can encourage trial
purchase.
 Rural consumers have more money in hand during festivals as
they fall in harvest season. Consumers are ready to splurge.
Another advantage of melas to the marketers is that they get
a chance to interact with rural females which otherwise is
difficult. The mela is flocked by men, women and kids alike.
Therefore, marketers can target large audience.

ce
 j. Mandis: Mandis the market of agricultural produce and
inputs. Government regulated mandis are the common sight
in villages of india. Mandis can be a good platform for
manufacturers of agri-inputs- both durables and non-durables.
Durable are tractors, pump sets, threshers etc. Non-durable
includes seeds, fertilizers etc.

ce
NEW PRODUCT LAUNCH TECHNIQUES
FOR RURAL MARKETS
 https://www.youtube.com/watch?v=A1k62pSQ7so
 https://www.youtube.com/watch?v=A6gTKZHdWB0

ce
NEW PRODUCT LAUNCH TECHNIQUES
FOR RURAL MARKETS
 Design and features of the products: While designing the
products for the rural market, comprehensive market research
is very important. Marketer can not push the products
manufactured for the urban consumers towards the rural
market.
 • New product designs: R&D activities become lot more

important when company enters into unexplored territory. A
close observation of rural people and their lifestyle indicates
the significance of redesigning or modifying the products.
Efforts should be channelized towards the manufacturing of
products that are specifically meant for rural market by
understanding behavior of the rural consumer.

ce
 Robust products: Rural people give immense importance to
durability of a product. They also have a psychological belief
that products which are heavy in weight and bulky in
appearance are sturdier and long lasting. Given the fact that
rural people in general roughly handle the product, the
product manufactured for rural market must be sturdy to bear
the rough handling by rural people.
 • Alteration to the existing product: Product innovation

requires heavy investment. In certain cases, instead of
completely designing the new product, marketers can make
changes to the existing product to suit the requirement of the
rural customers.

ce
 Avoid complexity: Too much of intricacies in the product add
up to its complexity. It makes it difficult for rural consumers
to understand the functioning of the product. Simpler
products can be more conveniently used by the rural
consumers.
 • Easy to maintain: To keep the maintenance cost of the
product low is equally important while manufacturing the
product for the rural market. Durability and ease in
maintenance must go hand in hand.

ce
 Ser vicing of the product: For the ser vicing of the products, it becomes
cumber some for rural consumer s to carr y huge consumer durables to
towns. Arrangements must be made to provide accessibility to af ter sales
ser vice.
 Brand strategy:
 • Brand name: Brand makes product recognizable and dif ferentiate the
product from that of competitor s. A brand name is ver y essential for rural
consumer s. It should be such that can be easily remembered. To promote
brands in rural markets, special strategies are required. The brand name
should click with the rural consumer s. Fancy names like D’ Dmas, Reid &
Taylor don’t connect with the rural people.
 Brand name must be Simple and shor t. Long names with technical
sounding jargons should be avoided. Brands like Rin Shakti, Nirma have
done well in rural India as such names are easy to memorize.
ce
 Easy to pronounce- The brand name should be such that the
rural folks can easily pronounce it. Examples can be Lux, Jai,
and Navratna Tel.
 • Distinctive: Brand name must be different and unique.

Similar sounding names are unable to create a distinctive
image in the mind of rural folks any hardly does any good for
the marketer. For example Pepsi is different from Coca cola.

ce
 Ch oi ce of a bra n d a m ba s s a dor- Un de r s ta n di n g rura l pe opl e ’s s e n s i bi l i ti e s , h ow
th ey pe rce i ve th e g i ve n product a n d th e i r a tti tude towa rds th e product n ot on l y
i n flue n ce s th e product’s de s i g n a n d deve l opm e n t but a l s o i n flue n ce th e bra n d
n a me a n d th e c h oi ce of bra n d a m ba s s a do r.
 Th e a dve r t i s e m e n t of co s m eti c fe a turi n g Hol l ywo o d s ta r Pe n e l ope Cruz i s w el l

a ppre ci a te d by th e urba n fol k s a n d pus h e s th e product’s s a l e s upwa rds . B ut th e
s a m e a dve r t i s e m e n t h a s n o pl a ce i n rura l In di a . E ve n i f th e a dve r t i s e m e n t th a t
fe a ture s om e pro m i n e n t B ol l ywo o d s ta r m ay n o t be wel l re ce i ve d i n South e rn
In di a ’s v i l l a g e s a n d h a rdl y do a ny g o od for boos ti n g th e s a l e s .
 Th e re a s on be h i n d th i s i s th a t th e B ol l ywo o d s ta r s m ay n o t be a h o us e h ol d
n a me dow n South . In s te a d for a com pa ny, i t i s fe a s i bl e to m a ke s o m e So uth e rn
Sta r a s i ts bra n d a m ba s s a dor. In th e Pur va n c h a l be l t w h i c h fa l l s i n th e s ta te s
of U.P a n d B i h a r, B h oj puri a ctor s Ma n oj Ti wa ri a n d Rav i K i s a n a re ve r y m uc h
popul a r a m on g rura l m a s s e s . Ma n o j Ti wa ri ’s ph otos ca n be s e e n be s e e n i n
‘P OP ma te ri a l ’ of th e n a ti o n a l l eve l bra n d l i ke B re e ze s oa p.

ce
ASSIGNMENTS
 Case study - TATA Namak,

 Colgate toothpaste. Dabur Dantmanjan Tooth powder.
 Case study – Rural and Urban Babool Tooth Paste.
 Navratan Hail Oil.

ce
D I F F E R E N T A P P R OAC H E S O F R U R A L C O M M U N I C AT I O N I N
C O N T E M P O R A RY R U R A L
S O C I E T Y- R U R A L R A D I O . C O M M U N I T Y B A S E D R A D I O .
T E L E V I S I O N . AU D I O
V I S UA L M E D I A .
 Refer to slides 110-112
 The two vital arms of rural communication are the

development of creative to suit specific target audiences and
communication delivery using appropriate vehicles.
 Though rural folks receive all types of selling messages

through multiple sources, it has been found that the two-tier
system — opinion leaders and the masses — continues to
exist. Opinion leaders continue to play an important role in
the decision-making, which is still community or group-based.

ce
 However, the composition of the opinion leaders has changed
over a period of time.
 For decisions regarding farm inputs, farmers may consult the

traditional opinion leaders, including other successful
farmers, agricultural officers and dealers. But with the
growing aspiration levels (thanks to television), village youth
who go to the cities for education and employment have also
become important opinion leaders for lifestyle products. And
in the case of personal care products, similar to the trend in
the urban areas, school-going children do influence the brand
decision. Kids' pester power is not unique to urban India.

ce
 Radio is one of the cheapest mass media to reach rural masses. Even
where electricity is unreliable, transistor radios are ver y popular among
the poorer sections of rural India. With the number of FM stations set to
explode af ter expansion under Phase Three, it would be possible to reach
even more remote areas through radio.
 Haats (weekly markets) and melas tied to temple and religious festivals
are great for promoting brands. While haats help in reaching a few
thousand villager s from dif ferent villages in one place, melas attract
lakhs of visitor s across the State or across the countr y as in
kumbhmelas .
 They of fer a variety of media oppor tunities in one place. However, it

must be remembered that haats are gradually losing their impor tance in
economically developed markets such as Tamil Nadu because of the
tremendous progress made by small towns and their easy accessibility to
villager s due to better and reliable transpor t facilities.
ce
 Television is invariably the primar y medium used by most FMCG brands.
As television does not distinguish between urban and rural, whether
one likes it or not, the commercials are also exposed to a vast majority
of the rural audiences.
 If a company is clear that a par ticular brand can be targeted at both

urban and rural audiences, and since television is already considered
the primar y medium, it might be a good idea to produce commercials
that appeal to both urban and rural audiences. Pre-testing of such
commercials among both audiences is vital to ensure success among
both.
 Apar t from regional T V channels, one can consider the use of local
cable T V networks largely telecasting local shows popular among
communities in semi-urban and rural areas. Rural cinemas, especially
in South India, are still a popular medium to reach consumer s.

ce
RURAL ADVERTISING.
MEANING AND DEFINITION OF ADVERTISING.
 Rural advertisement consist of various brand promotional

activities carried out by companies in order to enhance brand
awareness and visibility in Indian villages among rural
audience.
 OOH media options like Mobile van advertising, Kiosk

Advertising, Hoardings and Wall painting are used to target
rural markets and audience in India.

ce
 Before one sets out to plan the marketing strategy of a brand in the
rural areas, one needs to carr y out detailed research. The research
should include the following strategies:
 The demand for a product – The feasibility of a product depends on the

consumption pattern and the need of the people. This is why, before a
rural brand launch, the company should indulge in extensive sur veys in
the area. Generally, rural people wish to buy longer-lasting products at
low costs.
 The price of a product – Usually, the rural people are more inclined
towards lower prices. That is to say, they pay more heed to the price
tag than the quality of a brand. Therefore, the manufacturer of a brand
should be extra careful in managing the production costs of the brand.
In this way, the brand will be more accessible to rural consumer s. This
approach helps in geo-targeting the consumer base of a brand.

ce
 The brand awa reness strategy – To spread m axim um awa ren ess am ong the
target audience, a m arketer should c halk out an intricate plan to prom ote
the brand. The awa reness strategy of a rural adve r tising cam paign needs
to be easy and direct to grasp. This approac h would be sim ple enough for
the brand to pur sue an d influence rural consum er s. Since th e literacy rate
in rural India is not that high, m arketing tec hniques like new spaper and
magazine adve r tising could be a failure. The rural people are m ore
inclined to the m edium s of radio, television, and cinem a to absorb
information.
 The distribution of a product – Any m arketing strategy m ight turn out to be

a failure if the distribution of the products is not m onitored properly. To
ensure that the product reac hes eve r y corner of the rural areas, strategies
suc h as selling the product in the local village fair, haats, and m elas could
be adopted. The other distribution policies can include the inauguration of
retail outlets, regular interaction with the village consum er s to know about
the status of the products, m onitoring com pany delive r y va ns delive ring to
the rural m arkets, etc.
ce
 One can take the help of a few age-old advertising strategies
that have always clicked in the case of rural advertising. Rural
people get more engaged with a brand with the incorporation
of media for promotional purposes. One could take refuge to
the following measure to increase brand visibility:
 Cultural shows like folk shows

 Village melas
 Regional newspaper
 Promotional activities in the concerned village school
 Puppet shows; and
 Involving the members of the village panchayat or the gram
sabha.

ce
R U R A L M A R K E T I N G S T R AT E G I E S
 https://www.youtube.com/watch?v=ennB2YxxRQs

ce
RURAL MARKETING STRATEGY OF COCA -
COLA

ce
RURAL MARKETING STRATEGY OF HERO
HONDA

ce
The packaging of Colgate toothpaste is shown both in rural and urban areas.
Colgate altered the size of the product along with the price and sold it at Rs.10
to be positioned as an affordable product in the rural market.

ce
 Rural marketing strategies are most effective when personal
selling is involved. As in the case of Hero Honda, where they
appointed sales representatives to go to the rural areas and
talk with the people and tell them the benefits and features
of the bikes.
 Personal selling enables the building of relationships which

guarantees sales. Personal selling sometimes also requires to
target a specific set on consumers, even in the small
population of the village. For example, Hero Honda built
relationships with teachers, panchayat leaders or members,
doctors etc. Basically, people that have a strong influence
over the people in the village.

ce
 In the case of Colgate, they persuaded the women of the
village and educated them about the importance of oral care
since women in the concern of their child’s health will
definitely be ready to use the product.

ce
RURAL MARKETING STRATEGY OF LG

ce
MODERN MEDIA: SELECTING MEDIA MIX-
 A media mix is the combination of communication channels

your business can use to meet its marketing objectives.
Typically, these include newspapers, radio, television,
billboards, websites, email, direct mail, the Internet and
social media, such as Facebook or Twitter.
 Combining these channels in a media mix enables you to

communicate in the most effective way with different types of
customers and prospects at different stages of the purchase
decision

ce
Puppetry is the first theatre of India. It is the least expensive form of
marketing. The manipulator employs the puppets as a means to express and
communicate ideas, values and social messages.
In villages, people like getting together and sharing others daily routines.
When a brand breaks through a puppet show, it is sure to work as word of
mouth advertising. A positive word of mouth and exposure goes a long way
with the brand.
ce
 Folk theatres are short and rhythmic. Folk media consists of
folk songs, folk dances and other theatrical forms, which is an
intrinsic part of culture and heritage of the land. Simple tunes
aid in informing and educating people in an informal and
interesting manner. The government of India has employed
this media for popularizing an improved variety of seeds,
agricultural implements, and fertilizer and so on.

ce
Wall Paintings are an effective and economical means of advertising in rural
markets. This is the most widely used form of advertising and is counted among
the favourite of Indian masses. They are silent advertisements unlike other
forms of advertisements. Retailers welcome paintings of their shops since the
painting comes free of cost and the wall looks cleaner and better. Wall
paintings endlessly remind rural masses about the product and the brand. Wall
painting is economical when compared to other social media. Recall rates of
the audiences are high. The biggest benefit of this means of advertising is the
power of the picture which is completed with a local touch.
ce
 A direct or a face to face demonstration of the product with
individual people and with groups such as Panchayats and
other groups in the village have proven to work well. Such
contact helps in stimulating villager’s interest and motivating
them towards development. Demonstrations could be method
demonstration, result demonstration, simple demonstration
and composite demonstration.
 Outdoors:
 The outdoor also lend itself well to rural communication.
many companies usE the outdoor medium imaginatively in
their rural communication mix, through hoardings, wall
paintings, illuminations and other displays in the rural areas

ce
 Point of Purchase: The POPs, point of purchase promotion tools
are also quite useful in the rural markets. The POPs meant for
the rural market should be specially designed to suit the rural
requirements.
 More than written words, symbols, pictures and colours must be

used in POPs meant for the rural markets. Colour is of par ticular
significance in the rural context. As a general rule, the rural
people love bright colours. The effective communicator utilizes
such cues.
 Syndicated Audio-Visual vans In recent years, rural publicity vans

have become a purchasable ser vice. Firms which cannot af ford to
operate publicity vans of their own can utilize the syndicated AV
van ser vice of fered by independent agencies. •
ce
 Audio-Visual Publicity Vans. The A V unit or the publicity van is ver y
useful for rural, communication. The van is a comprehensive mobile
promotion station at the exclusive command of the concerned firm.
The firm can exhibit its films and other audio-visual presentations
such as slide shows, sound and sight presentations, puppet shows,
etc. from this instant promotion station. •
 Music records, puppet shows, Harikatha, etc. Music cassettes and

records is another ef fective medium for rural communication. It is
an appealing medium and a comparatively inexpensive medium. One
complete language group can be reached on a low budget through
specially developed records or cassettes. They can be played in
cinema houses or in other places where rural people assemble

ce
C OP Y W RI T I N G A N D C R E ATI V E A DV E R T I SE M E N T FO R R UR A L
C ON SUM E R .
DE S I G N I N G T H E M E SSAGE .

ce
 1. Advertising should reflect the rural life style Eg: BSNL
internet service advertisement endorsed by Deepika
Padukone, in one of the advertisements of Coca-Cola Aamir
Khan was featured as Punjabi farmer offering Coca-Cola to
ladies asking for Thanda Background music and tune should
be purely local and jingle should be so composed that it can
seek the greater attention of rural consumers,
 2. If possible, personality symbol representing or targeting

rural consumers should be incorporated in advertising.
Generally, it is an animated character that personifies the
product Eg: Chacha Chaudhari, Chhota Bhim, Animated image
of farmer or shepherd.

ce
 3.Similarly, local slang can also be part of advertising and
well known creative phrase can also have a great impact in
the minds of rural consumers. Advertising message should be
accompanied by interesting punch line. For Example: Thanda
Matlab Coca-Cola, washing powder – Safedi ki chamkar,
Swasthay Chetna Campaign by HUL in rural areas impacted
the sales of Lifebuoy .
 4. Format of advertising message should carefully be thought.
It means it should not be too much lengthy, bright shades of
colour should be used and be featured in an illustrative
manner.

ce
 As a part of scientific evidence, comparison of brands should
be shown
 Testimonial evidence should be included through celebrity
endorsement, featuring the opinion of satisfied customers For
example: dentist for toothpaste, actress for hair oil, satisfied
farmer for agricultural inputs
 Advertising message should be conveyed in an appropriate
positive tone expressing emotion and feeling. For instance, an
advertisement of Tata Sky connection in hilly rural area

ce
 At the village it is a magic show with a dif ference. Amidst the
laughter of children, the magician breaks into the vir tues of Tiger
biscuits, sometimes even drawing them out of nowhere or making
the packet disappear.
 In between a nautanki per formance, the lights go out. An ar tiste

carr ying a torch appears. The ray of light is so bright that it
disturbs actors on stage and one says, "Who is there? What is it
that is shining so brightly? This is Eveready tr ying to make its mark.
 A puppet show targeted at the sugarcane farmers of Uttar Pradesh

weaves a stor y around Round Up, a weedicide brand. This is a
Monsanto sales pitch... The wheel of for tune game at the
Nauchandi Mela in Meerut spor ts a dif ferent brand of tractor at
ever y number. This is Escor t's ef for t at brand dif ferentiation..

ce

Rural Marketing and Advertising22-2023

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Rural Marketing and Advertising22-2023

Uploaded by

Copyright:

Available Formats

RURAL MARKETING &

 At its most basic level, marketing seeks to match a company's

 Rural marketing is a type of marketing in which activities are

Seema Narendran, KPB Hinduja College of Commer 2

 The urban to rural flow consists of agricultural inputs, fast-

 The rural to urban flow consists of agricultural produce such

Seema Narendran, KPB Hinduja College of Commer 3

 Rural population (% of total population) in India was reported

Seema Narendran, KPB Hinduja College of Commer 4

 “Khushion Ki Doli” by Hindustan Unilever Ltd (HUL)

Seema Narendran, KPB Hinduja College of Commer 6

Seema Narendran, KPB Hinduja College of Commer 7

Seema Narendran, KPB Hinduja College of Commer 8

Seema Narendran, KPB Hinduja College of Commer 10

 Mobile Traders:There is another important agency known as

 Permanent Retail Shops:are developed as the population of

Seema Narendran, KPB Hinduja College of Commer 12

 Rising Rural Prosperity: Average income level has improved

Seema Narendran, KPB Hinduja College of Commer 13

 Change in life style and Demands Life style of rural consumer

 The growth rate of fast moving consumer goods [FMCG]

 Change in life style and Demands

Seema Narendran, KPB Hinduja College of Commer 15

 Government schemes for entrepreneurship has exposed rural

 Better connectivity to urban cities and products .

Seema Narendran, KPB Hinduja College of Commer 16

 Rural marketing referred to marketing of rural products in

 The scope of farm mechanization equipment’s (tractors,

Seema Narendran, KPB Hinduja College of Commer 18

 During this phase, India’s industrial sector gained in strength

 Meanwhile, the increased plan outlay of Central and State

Seema Narendran, KPB Hinduja College of Commer 19

Seema Narendran, KPB Hinduja College of Commer 20

Seema Narendran, KPB Hinduja College of Commer 21

 Increased purchasing power: The rural economy is supported

Seema Narendran, KPB Hinduja College of Commer 22

 Organisations like NCAER (National Council of Applied

 Rural consumers are fundamentally different from their urban

 According to the National Commission on A griculture (XII Repor t),

Their perishability makes it almost impossible for producers to fix

Seema Narendran, KPB Hinduja College of Commer 25

 Bulkiness of Products: The characteristic of bulkiness of most

Seema Narendran, KPB Hinduja College of Commer 26

 Irregular Supply of Agricultural Products: The supply of

Seema Narendran, KPB Hinduja College of Commer 27

 Processing: Most of the farm products have to be processed

Seema Narendran, KPB Hinduja College of Commer 28

Seema Narendran, KPB Hinduja College of Commer 29

Seema Narendran, KPB Hinduja College of Commer 30

 Close Contact with Nature:

Seema Narendran, KPB Hinduja College of Commer 31

 Infrastructure – The infrastructural condition of a rural area

 With these factors, governing bodies have been able to reduce

Seema Narendran, KPB Hinduja College of Commer 34

 Healthcare –healthcare is an impor tant factor af fecting rural

 On the other hand, the technology significantly reduces

 In addition, access to clean drinkable water and sanitation is

Seema Narendran, KPB Hinduja College of Commer 36

 Income disparity: The rural-urban divide in India is so

 Lack of infrastructure: There is improper and inadequate

 Decline in profitability and productivity within agriculture: The

Seema Narendran, KPB Hinduja College of Commer 38

 Pradhan Mantri Gram Sadak Yojana (PMGSY)

Seema Narendran, KPB Hinduja College of Commer 40