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NAME: VRUSTI.RAO

DIV: B (SEM II)

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IntroductionRural Marketing is defined as any marketing activity in which the one dominant participant isfrom a rural area. This implies that rural marketing consists of marketing of inputs (products orservices) to the rural as well as marketing of outputs from the rural markets to other geographicalarea

The number of households and population, residing in the rural area makes this sector, veryfascinating to the compani es. Theres excitement among the corporate about the opportunities in

this sector, which has led to new innovations for products and services, keeping rural consumersin mind.

Rural Marketing is growing at a far greater speed than its urban counterpart .Multinationals haverealized the potential and are ready to tap rural markets .To name a few Colgate, Everyday

batteries, LG Electronics, Phillips, BSNL, Life Insurance Corporation, Britannia and HeroHonda are trying to seep in rural markets .

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To add these recent examples of rural marketing is asfollowing :

(1)Coca-Cola India has identified rural markets for volume growth in India. The cola giant isslowly adopting a localized marketing strategy with local brand ambassadors and localized

marketing campaigns to reach out to the rural consumers. The move has been undertaken toincrease Coca-Cola India's consumer base by 30 crore in 2004.Nearly 30% of our sales comefrom the rural markets. The management has decided to focus on the rural markets to give asignificant boost to the entire sales.

(2) Bharti Axa to focus on rural markets.

(3) Whirlpool s ays entry into smaller markets would mainly be driven through refrigerators. Inthe urban market, there will be a significant push in the water purifier space, which the company

made a foray into last year. The company is looking at an investment of over Rs 100 crore overthe next three years, and will significantly strengthen its distribution network in the rural markets

(4) FabMart.com launches new retail model for rural markets .FabMart. com, a part ofMadanapalle Retail Pvt. Ltd. Venture introduced in Andhra Pradesh, a new retail model aimed ataddressing the demand-supply need of retail that exists in smaller towns in India. Christened'RU-

http://economictimes.indiatimes.com/topic/FabMarthttp://economictimes.indiatimes.com/topic/Madanapalle%20Retail%20Pvthttp://economictimes.indiatimes.com/topic/Madanapalle%20Retail%20Pvthttp://economictimes.indiatimes.com/topic/FabMart

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BAN' FabMart.com wants to integrate their retail business with the social fabric of small townsto empower the rural consumer. Rural customers will be offered a choice of products that areotherwise available only in metros and large Indian cities.

How rural Indian shoppers are changing

As per a recent survey 'Shopper Trends' released by Nielsen, there are various parallels betweenhow urban Indian shoppers are evolving and how their rural counterparts too are changing.

The study is a global consumer research study conducted in 52 countries to understand shopper

attitudes and behavior, and the agency has released the Indian study that was done across 14cities . The study shows that the companies that win in rural markets are more adept at ensuringthe right promotion and better distribution growth than their competitive set.

Rural shoppers are much more connected than they were 3 years back. Better employmentopportunities, more money flowing back into the villages, awareness of large format retail hasmeant increased exposure and awareness (to the urban way of living).

Add to that the content on mobiles (songs, pictures, downloads), which has also contributed toincreased awareness to urban experiences.

Rural women now know that they need a 'conditioner' along with a shampoo or how a 'facewash' is better than a regular soap . Rural men no longer wait in front of a tailor shop to getclothes stitched as they have an option of cheaper yet 'fashionable' readymade clothes. "Theneeds and wants are making way for desires and the line dividing the urban and the rural rich areslowly but surely blurring.

http://economictimes.indiatimes.com/topic/Nielsenhttp://economictimes.indiatimes.com/topic/Nielsen

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Rural consumption boost for automobiles

Shares of India's top utility vehicle maker Mahindra and Mahindra touched a 52-week high of 874.75 latelast month, given the company's robust model of a strong focus on rural and semi-urban markets with itstractors and utility vehicles portfolio.

Rural consumption boost for electronics

Consumer durables makers are rolling out newer, tweaked products targeting professionalsworking in small towns, marking a shift in strategy that earlier depended heavily on goodmonsoon rains and consequently strong rural demand.

Increasingly, companies such as LG, Godrej, Panasonic, Mirc and Samsung are targeting anemerging base of consumers in semi-urban areas employed in sectors like telecom, banking and insurance , as well as entrepreneurs, who have more disposable income than farmers.

http://economictimes.indiatimes.com/topic.cms?search=Mirchttp://economictimes.indiatimes.com/topic.cms?search=Samsunghttp://economictimes.indiatimes.com/topic.cms?search=Samsunghttp://economictimes.indiatimes.com/topic.cms?search=Samsunghttp://economictimes.indiatimes.com/topic.cms?search=Mirc

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Communication Stages in Rural AreaRural Communication to be effective - repeat exposures is a must; and if the gapbetween them is long, the message loses its edge during this period.

1. Selecting media:Evidently, in the rural context the firm has to choose a combination of formal andnon-formalmedia.Formal / Organized :TV, Cinema, Press, Other print media, direct mail, radio, point of purchase (POPs),outdoors,Non-formal / rural Specific Media :A V vans / Publicity vans, Dance-dramas, Puppet Shows,rural specific art forms like H a ri ka t h a a nd Vi l l u p a t u p e rf o rm e d a t vi l l a g eme l a s an d t e mp l e f es t i v a ls , demonstrations, s tudy classes , mikeannouncements, processions, caparison elephants, decorated bullocks carts carrying adpanels, music records, house to house campaigns by special promotion squads, information centerson companies products. TV: 77 % of villages in India now receive TV transmission and 27 % of all rural people actualwatch TV.

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Radio; is a well established medium in rural areas while radio as a medium cannotmatch TV in potentiality or effectiveness, radio does have a major role in ruralcommunication.Cinema: 29 % of all rural people do see cinema as a matter of regular lifestyle or habit. Shortfeature films with disguised advertisement. Messages, direct advertisement, films or

documentaries, that combine knowledge or advertisement can be employed for ruralcommunication.Outdoors: Hoardings, wall paintings, illuminations and other displays in rural areas.Pops: More than written words, symbols, pictures and colours must be used.

A V vans : Films can exhibit its films or other A-V presentations such as slide shows,sound or sight presentations, puppet shows, etc. The van is a comprehensive mobileAV vans: Firms which cannot effort to operate publicity vans of their own utilize the syndicatedAV van service offered independent agencies2. Communication for th e Rural Market has to be uniquely assembled anddelivered: The theme, the message, the copy, the language or the delivery must match the ruralcontext .In rural marketing; usually a greater time lag is involved between introduction ofa product and its economic size sale. This is the rural buyers adoption process is usually moretime consuming

Rural markets and rural marketing involve anumber of strategies, which include:

Client and location specific promotion Joint or cooperative promotion.. Bundling of inputs

Management of demand Developmental marketing Unique selling proposition (USP) Extension services Business ethics Partnership for sustainability

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Future segment

(1) What cos like Future Group, Piramal Healthcare, Dabur, PepsiCo, Nestle andothers are doing to tap the Rs 30,000 crore slum economy

It might have lost the humiliating tag of being the largest slum in Mumbai and Asia, but Dharavistill feels like a large piece of humanity squeezed into a small box. About a million people residein an area of 1.7 sq km boxed between Mahim and Sion.

While a few thousands of them go to work in the leather and garment units in Dharavi, most go

to houses and offices as maids, cooks, plumbers, electricians, security guards, constructionworkers, and more, earning up to Rs 10,000 a month. Life is not easy. Yet, nudged by need andwant, they are spending more.

(2)LG India has launched an exhaustive consumer research on lifestyle in villages. Godrej,which is piloting a 45-litre refrigerator called 'Chotukool' in rural Maharashtra, Gujarat andKarnataka priced at Rs 3,750, plans to roll this out across the nation in six months. It is

partnering with India Post, NGOs and micro-finance firms for sales support.

http://economictimes.indiatimes.com/topic.cms?search=slumhttp://economictimes.indiatimes.com/topic.cms?search=Dharavihttp://economictimes.indiatimes.com/topic.cms?search=India%20Posthttp://economictimes.indiatimes.com/photo/10307896.cmshttp://economictimes.indiatimes.com/photo/10307896.cmshttp://economictimes.indiatimes.com/topic.cms?search=India%20Posthttp://economictimes.indiatimes.com/topic.cms?search=Dharavihttp://economictimes.indiatimes.com/topic.cms?search=slum

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ConclusionSince, the rural market is very large compared to the urban market, its way more complicated tohandle it than its counterpart and it has a huge untapped potential. Despite the large size of the

market the blend of opportunities and challenges offered by it makes the future very promising tothe companies, which can supply the right product at the right price. Companies need to keep pace with highly volatile needs of the rural customers and exploit the market to their bestadvantage.

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