Study of rural marketing in the present scenario in India

Type :

Market study

Pages :

53 pages

Format :

.doc

Published date :

05/08/2009

Category :

Business & market

Sub category :

Marketing

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Summary :

Objective
Introduction
Characteristics of rural markets
Difference between rural customer & urban customer
The rural market environment
1. The rural consumer
2. The rural demand
3. Other aspects of the rural market environment
The future of rural marketing
The major players in the rural market
Market mix for rural products
Industrial development programmes
Evolution of e marketing in rural areas
The impact of power brands
Power brands in perspective
Changes in rural marketing
Opportunity of rural marketing
Problems in rural marketing
Conclusion
Bibliography

Abstract

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.