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Study of rural marketing in the present scenario in India

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market study
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  1. Objective
  2. Introduction
  3. Characteristics of rural markets
  4. Difference between rural customer & urban customer
  5. The rural market environment
    1. The rural consumer
    2. The rural demand
    3. Other aspects of the rural market environment
  6. The future of rural marketing
  7. The major players in the rural market
  8. Market mix for rural products
  9. Industrial development programmes
  10. Evolution of e marketing in rural areas
  11. The impact of power brands
  12. Power brands in perspective
  13. Changes in rural marketing
  14. Opportunity of rural marketing
  15. Problems in rural marketing
  16. Conclusion
  17. Bibliography

While we all accept that the heart of India lives in its villages and the Indian rural market with its vast size and demand base offers great opportunities to marketers, we tend to conclude that the purse does not stay with them. Nothing can be far from truth. Rural marketing involves addressing around 700 million potential consumers, over 40 per cent of the Indian middle-class, and about half the country's disposable income. According to a NCAER study the consuming class households in rural equals the number in urban. and awareness The recent NCAER publication "The Great Indian Middle Class" further reveals that the Indian middle class consisted on 10.7 million households or 57 million individuals of which 36 per cent lived in rural areas. No wonder, the Rural markets have been a vital source of growth for most companies. For a number of FMCG companies in the country, more than half their annual sales come from the rural market. Although with the substantial improvement in purchasing power, increasing brand consciousness, changing consumption pattern and rapid spread of communication network rural India offers a plethora of opportunities all waiting to be harnessed, the marketers lack the in-depth knowledge of the village psyche, strong distribution channels and awareness that are indeed the prerequisites for making a dent into the rural market. Moreover, vast cultural diversity and vastly varying rural demographics, poor infrastructure - be it inadequate roads and highways or the availability of telephones and electricity, low income levels, low levels of literacy often tend to lower the presence of the corporates in the rural markets. Thus, although the rural markets must be alluring, tapping the vast potential calls for a systematic psychographic analyses and an appropriate marketing mix to meet the consequent challenges of availability, affordability, acceptability. To achieve success, in rural India, companies will need to establish rural market development program. There is a need to innovate and adapt products that suit rural operating conditions. The rural consumers need to be educated of new concepts, relevant to the environment and usage habits that will improve their quality of life. In addition to focusing on targeted promotions and advertising there is an urgent need to work on economical packaging, dual pricing and special sizes of FMCG and household products. IT can be considered as an important marketing tool.

[...] This study using the sap-lap methodology examines the experiences of a number of internet portals from India and other countries engaged in rural marketing or disseminating rural development information, with usability measures derived from farmers and traders and those suggested by researchers. The findings are used in developing a conceptual framework for e-marketing info design for agricultural market in rural northern India for the portal (DM). Situation Common wisdom has it that the advent of modern information and communication technologies (ICTs) such as telephony or the internet hold unprecedented opportunities for rural development. [...]

[...] Company Household penetration HLL Nirma Chemical Company Household penetration HLL 88% Nirma Chemical Works 56% Colgate Palmolive 33% Parle Foods 31% Malhotra marketing 27% Category % volume of local brands/unbranded Washing cakes/bars 88 Tea 56 Salt 33 Of the expenditure on consumer goods in rural household, approximately is on food articles such as biscuits, tea, coffee and salt on toiletries on washing material on cosmetics on OTC products and on other consumables. A number of category products have established themselves firmly in the rural households. [...]

[...] This will also reduce rent seeking behavior COMMUNICATION Dealing with two very different worlds Initiatives breakdown because of lack of understanding of the other world Organizations aren't on the same page Market Linkages Sales & Distribution of GPO's Branded Goods: Promote ears-to-ground approach Analyze sales data for understanding and directing production to the market Identify domestic and international markets for expansion Identify products for markets based on GPO's capability Create responsibility/accountability for sales targets Large Retailers: Identify buyers based on GPO's capability Facilitate understanding of buyers' requirements Enhance GPO's skills to supply to large buyers through domain experts Vendor Development: Identify buyer interested in vendor development exercise Map GPO products to buyer needs Define where buyer and domain experts will work with GPO to upgrade skills Capacity-Building Support Conduct Analysis to determine gap between GPO's status and vision Map business processes to identify bottlenecks in supply chain Engage domain experts to work with GPOs to address critical problem areas, develop or refine systems, and upgrade skills Knowledge and Information Management Host workshops bringing together experts from GPOs, businesses, government, development and multilateral agencies for sharing knowledge and best practices Document and disseminate case studies based on hands on experience with GPOs Policy Analysis and Advocacy Partner with international bodies/lobbies to promote interests of GPOs Host multi-stakeholder consultations for GPOs to voice their thoughts OPPORTUNITY OF RURAL MARKETING Urban consumers shop daily and have 365 opportunities a year to switch brands while the rural purchasers who buy their goods in weekly haats have only 54. [...]

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