6,38,667 villages, 597 districts, 700 million people, myriad of languages, many traditions and a rich culture.

A vibarant land with a long history.Rural Indian people are known as much for their warmth as their diversity. The Real Bharat .EXPLORE THE RURAL MARKETS,DO NOT EXPLOIT THEM The rise of rural markets has been the most important marketing phenomenon of the 1990s, providing volume growth to all leading companies. Many corporates have been trying get a grip on rural market.But challenges are many: how to make the product affordable, how to penetrate the villages with small population, languages, brands etc. The reasons why companies are going rural are manifold. Ex: high rural incomes driven by agriculture growth,mass media etc.Marketers and manufactures are increasingly aware of the burgeoning , purchasing power, vast size and demand base of the once neglected Indian hinterland. Efforts are now on to understand the attitude of rural consumers, and to walk their walk and talk their talk. Definition of Rural: Village with a population of less than 5000 with 75%of the male population engaged in agriculture --- IRDA & NCAER 2/3 of consumers in rural areas(700 million) 26% NI generated, increasing purchasing power India has 597 districts,6,38,667 villages 32% connected with pucca roads 68% stilled untappedbecause of inaccessibility and lack of awareness etc., EVOLUTION OF RURAL MARKETING THE GLORIOUS PAST(1940-1990) THE PULS OF THE PRESENT(1990-2000) THE FURIOUS FUTURE (2000 onwards) The glorious past(1940-1990)1949- Asian Paints first entered1960- HLL entered with Lifebuoy soap,dominates presence in more than 1 lakh villages,Colgate, Dabur followed it.1980- Nirma,Cavincare and Marico entered,Procter and Gamble also entered.

The pulse of Present (1990-2000 70% of rural population lies in villages 1% increase in purchasing power leads to increase of Rs 10,000 crores in government revenue. Companies launching plethora of products to cater changing life style in rural India.

The Furious of Future(2000 onwards)The media explosion and satellite invasion have brought about drastic changes in the consuming habits of rural Indians and the future would hold a lot in store for companies entering rural markets. Why companies go rural? In the present scenario, companies operating in India will have only two options: - either to go Global or go Rural. Today rural markets are as critical as urban markets for marketers. Reasons: urban markets are getting saturated a huge untapped market

- rising disposable income remittances from abroad and impact of media Rural marketing is the process of developing, pricing, promoting, distributing rural specific goods and services, leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organisational objectives -- Ramkishen.Y Classification of Rural Markets URBAN TO RURAL RURAL TO URBAN RURAL TO RURAL Characteristics of Rural Markets India is a big country and its rural markets have varied characteristics that change from people to people, region to region. Some of the main characteristics of India's rural markets are: Diverse nature

 Urban market saturation Rising disposable income Rising literacy levels Spread of cable television Changing patterns in rural market Increased production of food grains Increased exports Better banking facilities Companies make a bee-line to rural markets The power of rural communication Government policies Government employment schemes Socio-political changes in the wake of govt., policies Credit cards for formers Cooperatives and corporate support Problems in Rural Marketing Although the rural market does offer vast potential, it should also be recognised that it is not easy to operate there. Rural marketing is a time consuming affair and requires considerable investments in terms of evolving appropriate strategies. Deprived people and deprived markets Lack of proper physical communication facilities Transport Many languages and dialects Dispersed markets Low percapita incomes Low levels of literacy

 Prevalence of spurious brands and seasonal demand Different way of thinking Distribution problem CONCLUSION Rural marketing will grow in importance in the coming years. Corporates that have understood the psyche of rural consumers and markets and how to work it have notched up successes Market Size and Physical Structure of Rural Society Size of Rural Market Rural Product Anything that has a value in exchange -product to be marketed within the requirement of the rural consumer should not be an extension of urban offerings -(philips launched free power radio does not require battery/electricity you wind it with a lever and radio runs for approximately 30 min. Classification of rural products FMCG (HUL,DABUR,MARICO,COLGATE= PALMOLIVE,COKE,PEPSI) CONSUMER DURABLE (TV,FRIDGE,FAN,PRESSURE COOKER,CYCLE,TWO WHEELERS,SWING MACHINES,WATCH,MIXER GRINDER,RADIO,MUSIC SYSTEM,WASHING MACHINES-PHILIPS,VIDEOCON,ONIDA) SERVICE (TELECOM,BANKING,HEALTH CARE,INSURANCE EG. AIRTEL,BSNL,SBI,DENA BANK AGRI-INPUTS

(SEEDS,PESTICIDES,TRACTORS-RALLIS INDIA,BAYER RURAL COMMUNICATION CHALLENGES SPREAD AND DIVERSITY

The large number of consumers scattered across the country,many of whom are not tuned to mass media. Rural markets vary by geography, demography, etc LOW LITERACY LEVELS Indicate that it would be unrealistic to use print media. POOR INFRASTRUCTURE FACILITIES Such a lack of roads, telecom facilities, postal services, etc.This undermines the utility of press and even TV viewership is affected by low voltage and uncertain supplies. RURAL COMMUNICATION CHALLENGES UNIQUE MEDIA HABITS All the readership is secondary. LACK OF RESEARCH DATA Decisions on message and media-mix are largely dependent on feedback from sales networks. LINGUISTIC & SOCIO-CULTURAL DIFFERENCES- DIFFERENT LEISURE TIME ACTIVITIES For people in rural areas, as agricultural activities have no fixed timings, and often requiring work during nights and in odd hours. The difficulty is to find the times lot for the ads, as the leisure times are situation based. RURAL COMMUNICATION STRATEGIES MANAGING SPREAD AND DIVERSITY Languages : The message has to be understood. Identifying geographical locations with a larger concentration of rural consumers. Locating potential consumers with a higher propensity(a natural tendency) to spend. USE OF AUDIO-VIDEO MEDIUM Literacy rates being less in rural areas, and TV andRadio having much more reach in rural masses compared to print media, communication through electronic media must be given priority over press. APPROPRIATE COMMUNICATION MIX Needs to be used giving priority to local promotional tools over advertising , as advertising in rural areas is marked by selective attention and retention.Usually 70:30 is recommended.

TAILOR-MADE COMMUNICATION Ad messages should be modified to suit to regional requirements, in order to counter linguistic, social and cultural differences. USE OF PUBLICITY VANS / ANIMALS Especially in remote/tribal and hilly areas USE OF STALLS & HAATS Especially in village festivals to spread messages and can also include brand trials. USE OF CINEMA HALLS AND VIDEO PARLOURS Especially in those states/regions having maximum exposure to cinema. USE OF LOGOS AND SYMBOLS FOCUS ON OPINION LEADERS OR REFERENCE GROUPS