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JUST IN PRINT SPECIAL Strategies To Unlock Opportunities Of Rural Markets In India

Abstract:Corporates are fighting with strategies to penetrate big rural markets in India. Indian Rural markets are potential and upcoming market for most of the products and services because of its vast size and demand base. Rural population constitutes 128 million households,41% of Indian Middle class and 58% of total disposable income. More and more MNCs (HUL, Coca-Cola, LG Electronics, Britannia, Standard Life, Philips, Colgate Palmolive and the foreign-invested telecom companies) are foraying into rural markets in India. The success of products is depends upon right Ps strategy of an organization in cheap nfl jerseys this market. The importance of the rural market for some FMCG and durable marketers is underlined by the fact that the rural market accounts for 55 per cent of LIC policies, 70 per cent of toilet soaps, 50 per cent of TV, Fans, Bicycles, Tea , Wrist Watches, Washing soap, Blades, Salt, Tooth Powder and 38 per cent of all Two-Wheelers purchased. Of the two million plus BSNL connections, 50% is from small towns/villages and out of 20 million Rediffmail signups, 60% are from small towns. Despite giant strides taken by the companies to create an awareness of their goods and services, vast segments in the rural sectors in our country, still remain untapped. Lifebuoy was one of the first soaps with rural areas as the key target market. Its jingle tandrusti ki raksha karta hai lifebuoy is still fondly remembered by a large number of rural people. Needless to say it commanded great brand loyalty. Colgate, Dalda, Tata, Bajaj, etc., have shown that it is perfectly feasible to build a brand in rural areas. Hero Honda, Mahindra and Mahindra and other auto majors are investing huge in creating brand of their products and services.


Introduction:The rural markets constitute low and spread out population and limited purchasing power. Rural markets have acquired significance, as the overall growth of the economy has resulted into substance revolution; the rural areas are consuming a large quantity of industrial and urban manufactured products. There are various economic layer found in the rural market like small farmers, biglandlords, marginal farmers, labourers and artisans. Demographic Variation at state level is also visible. Low purchasing power and limited disposable income is another challenges.This is improving day by day because of programme directed to enhance our agricultural productivity. In 2008, the rural market has grown at an impressive rate of 25 per cent compared to the 7—10 per cent growth rate of the urban consumer retail market. According to a McKinsey survey conducted recently, rural India, with a population of 700 million, would become bigger than the total consumer market in countries such as South Korea or Canada and it would grow almost four times from its existing size in the next few years.

Rural Market Demand:Rural market witnesses a high demand It’s the rural segment of market that contributes more profit than its urban counterpart Rural households are stepping from datun to tooth brush and tooth paste, from soil to shampoo and beauty soap for hair and body wash,from traditional mosquito repellant to coil and mats.They are shifting from local and unbranded to national brands, from low cost price product to premium products.The general impression is that only agricultural inputs like seeds, fertilizers, pesticides, and cattle feed and agricultural machinery has a potential for growth in the rural market.But it is evident each and every sector is booming in rural areas.

Opportunities:Rural India is next power house for corporates. Opportunities are knocking doors of corporate to tap India’s that lay within India. Rural India has demonstrated greater receptiveness to an affordable low cost communication services, to opportunity for crop diversification, and product enhancement, and to facilities for education. There should be linkages between non farm and farm activities. Growth in agricultural production creates pressure on the infrastructure for supply of raw materials, processing the produce and marketing the final products. Rural market is a base of more no. of customers than urban market.41 million kisan credit card holders show rural population is committed to enhance productivity of farm and non farm activities that is to increase economic strata. Finance is no more issue today as 32000 of bank branches are spreaded over the villages to fulfill the need of farmers/villagers .Enhanced food production indicates one step towards consumerism. Rural communication is also playing vital role in the success of rural marketing strategies. This communication helps customers to get the knowledge of the products and brands. This helps in developing interest in products and services of companies.

Understanding Rural Consumers :Social make Up:Rural People are very much influenced with opinion leaders, Sarpanch,bank Officials,Party Karykarta. Divisions based on caste, community and other hierarchical factors continue to exist in rural areas. Perceptions, traditions and values vary from State to State and, in some cases, from region to region within a State.

Income Make Up: Low Income and limited disposable income.

Psychological Make Up: Simple Thought Process, not known very much to who the influencer is, who is the buyer, how do they go and buy, how much money do they spend on their purchases, etc.

Characteristics of Rural India:Rural areas generally have less pollution, less crime, and less stress than urban areas.

People in rural areas have poor job opportunities than urban.

Rural life is generally less exciting than urban life.

The rural consumer is very conscious about getting value for money.

He understands symbols and colours better, and looks for endorsement by local leaders or icons.

He doesn’t like to pay extra for frills he cannot use.

He has his daily routine, and there is no sense of urgency in his lifestyle.

He has a very high involvement in any product purchased.

Divisions based on caste, community and other hierarchical factors   exist in rural areas.

The rural market of India is a geographically scattered market.

Rural consumers continue to be marked by low purchasing power.

Rural market is culturally a diverse and Heterogeneous

There is also a great deal of difference between different states in extent of development.

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