INTRODUCTION TO RURAL

MARKETING
Prof. V.R. Kishore Kumar
M.A., M.Phil
INDEX
Introduction
Evolution of rural marketing
Why companies go rural?
Definition
Classification of rural markets
Characteristics of rural markets
Problems in rural markets
Conclusion
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. Welcome to the land of
mysticism. The Real Bharat.
EXPLORE THE RURAL MARKETS, DONOT
EXPLOIT THEM
INTRODUCTION
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 untapped
because 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 entered
1960- 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
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
Problems in Rural Marketing
Although the rural market does offer vast
potential, it should also be recognized that it is
not easy to operate there. Rural marketing is a
time consuming affair and requires
considerable investments interms of evolving
appropriate strategies.

Problems
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
Narrow constraint basket
CONCLUSION
Rural marketing will grow in importance in the
coming years. Some crude estimates point out that
rural markets are growing at the rate of Rs400
crore per annum (at present the total estimated
rural market is growing is Rs1,00,000crore).
Corporates that have understood the psyche of
rural consumers and markets and how to work it
have notched up successes.
Thank You