Understanding Rural Market

Understanding Rural Market

Rural India accounts for over 75% of India's population and this in itself offers a tremendous opportunity for generating volume driven growth

Contrary to general perceptions, incomes in rural India have improved dramatically over the years mainly due to the eleven successive normal monsoons and increasing crop yields.

50% of India‟s GDP lies in rural purchasing power

60% of villages are connected by and all weather roads

Distribution Channels in Rural Market

Hub and Spoke Model, Example: Coca Cola

Use of Affinity groups, Example: Project Shakti

Haat Activation, Example: Colgate

Syndicated distribution, Example: CavinCare & Amrutanjan

Use of marketing co-operatives, Example: WarnaBazaar in Rural Areas

Mobile traders, Example: FMCG companies

Approach of facing the Challenges

Product designs and packaging which appeals to rural TG

Tie-up with public distribution system (fair price shops)

Use backward and forward integration

Using value based pricing strategy

Effective total quality management

Avoid the marketing myopia, which means the customer will have the same need but will want the new product

Application of value engineering

Use Chinese product design strategy and raw material

Taking care of product duplication and using security features

Provide social outlet campaign

Face-to-face „below the line‟ to

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