2. Meaning of FMCG on Rural Marketing
FAST- MOVING CONSUMER GOODS
Rural marketing is now a two-way marketing
process.There is inflow of products or
consumption and there is also outflow of
products to urban areas.The urban to rural flow
consists of agricultural inputs, fast-moving
consumer goods(FMCG) such as soaps,
4. 1. PRODUCT STRATEGIES
. A Company has several major strategies at its disposal, with
respect to width, depth and consistency
1] PRODUCT STRATEGIES
For the rural segment and rural consumer, many MNCs and Indian
companies have done market surveys to understand the product
to be adopted.
The rural people identify the brands in their own
way. For example:Evereday battery cells are called
5. Small Size Packaging
The low per capital income, non-availability of regular pay and cash
forces the rural consumer to buy in small packets various products. The
examples can be explained in plenty.
F.M.C.G.: Almost all F.M.C.G. goods manufactures have come out with
smaller packets and low price varieties. Toothpastes are available in 10
gm,25 gm,and 50 gm packets/ tubs. Soap powders are available for 2,
5,1/4 kg packets.
The innovation in products design will be appreciated by the rural
people only if it leads to price reduction.The changes made should suit
their tastes and likes
6. 2] PRICING STRATEGIES
It is natural that pricing strategies for rural segments
must be in tune with the packing and product strategy.
LOW PRICING :
Smaller packets of tea, toothpowder, shampoo,detergent powder, soap cakes,
some standard quality and some low quality are sold at prices with very low
AVOID SOPHISTICATED PACKING :
For selling in rural areas, producers have resorted to use of cheap
quality or ordinary packing so that to some extent, price reduction is
7. 3. DISTRIBUTION STRATEGY
Some of the studies reveal that the bigger villages of above 5000
population are fairly covered by the marketing people of various
companies manufacturing consumable and durable products.
SMALL VILLAGE :
In order to reach smaller villages, two types of strategies have to be
adopted i.e., reach all villages above 2000 population and reach
those within 50 km radius of big towns and cities.
ANGRO INPUTS DEALERS
Agricultural input dealers have known how and scope to deal with
rural public as they are already in touch with them for essential
inputs like fertilizers, seeds and chemicals.
8. 4] PROMOTION STRATEGIES
Various types of promotion methods work as integrative system between
products and consumer.
For the last 60 years, cinema continues to be influencing in style,
tastes, dress materials and total indian culture.
Since the last decades, TV viewing has been a regular pastime for all
Indian public.The TV serials like ‘mahabharata;,’Hum log’and cricket.
Due to low literacy rate and poor reading habits, this is not a popular
9. CHALLENGES FACED BY FMCG SECTORS FOR
1} Transportation problems :
Marketing activities require transportation facilities. Due to poor
transportation facilities, farmers and marketers find it difficult to reach
markets.Nearly 80% of village in the country are not connected by well
2} WAREHOUSING :
In the rural areas, there are no facilities for public as well as private
warehousing. Marketers face the problem of storage of their goods.
3} PACKAGING :
It is the first important step of product processing. If the packaging cost
is high, the total cost of products goes up.
10. 4} MEDIA PROBLEMS :
Media have lots of problems in rural areas. Television is a good medium to
communicate message to the rural people. But due to non-availability of
power, as well as television sets, majority of the rural population cannot get
the benefits of various media.
5}SEASONAL MARKETING :
The main problem of rural marketing is seasonal demand in rural areas,
because 75% of rural income is also seasonal.
6} LOW PER CAPITAL INCOME :
Per capital income is lower in rural areas compared to those in urban areas.
Again, the distribution of rural income is highly skewed, since the land
holding pattern, which is the basic asset, is skewed.
7} LOW LEVEL OF LITERACY RATE:
Literacy rate is low in rural areas compared to urban areas. This again leads
to the problem of communication for promotion purpose. Print medium
becomes ineffective and to an extent irrelevant in rural areas.