An article on rural marketing-Going local

1. Rural
Marketi
ng
Going local
Touseef R Bhat
ID:09PR00014B062
12/21/2009

2. a demand in the market. Out of the lots,
‘ethnic origin’ and ‘indigenous design &
Rural Marketing:
appearance’ are
Going local
two traits of rural products, attracting a
premium in the market. But, contrary to this,
Distinct from the other types of markets like
the non-uniformity of rural products (from
stock market, commodity markets or Labor
one another) and lack of its quality control
economics. Rural Markets constitute an
measures has been creating a negative
important segment of overall economy. The
demand. Besides, the small sized and
overall growth of the economy has resulted
dispersed production units of these rural
into substantial increase in the purchasing
products hinder realization of the economies
power of the rural communities, On account
of scale in marketing and result in high
of the green revolution in India; the rural
transaction costs per unit of output. Niche-
areas are consuming a large quantity of
based products have no local market.
industrial
Dabur’s rural strategy covers villages with
and urban manufactured products. In this
population of around 3,000 across several
context, a special marketing strategy,
states. The company has also moved from
namely, rural marketing has taken shape.
traditional media options and directly
Armed with innovative pricing and smart
engages with customers with ideas like a
marketing strategies, marketers are
rural beauty and talent contest etc.
venturing deep into the hinterland looking
Rural India will consume more of consumer
for more buyers and rural India is happy to
items like toothpaste, Soap, detergent,
be wooed. Until 20 years ago, rural
coffee, Ketchup and jam which currently
marketing were synonymous with farmers.
have less than 30% penetration in rural and
The television revolution, Liberalization of
semi-urban areas. And in the future 2-3
the economy and increased competition has
years this market will account for 90% of
forced marketers to move deep into the
the consumption of fast-moving consumer
country-side. What’s truly reinforced this
goods in the country as consumption in
reality is a steady demand for products ad
urban areas will stagnate.
services from rural India, despite the
Companies like Hero Honda, Titan and
economic slowdown.
nokia have been working on their rural
In a rural road show called Dream Home
strategies and they are now rolling out
series. Samsung hosts four-day exhibitions
products and services to capture a share of
in small towns. The company hires a place
the wallet of this hungry consuming class.
to showcase its products and engaged vans
Har Gaon Har Angan seeks to build an on-
to popularize the events. |it offers various
going relationship with millions of
deals on its products and builds brand
households in rural India through a network
awareness through theses events.
of 500 rural sales executives. The Hero
Rural products of India are unique,
Honda set up a rural vertical in 2007 to
innovative and have good utility and values.
approach this market in a very much focused
Large number of these rural products (like
manner and seeks to reach 25000 villages at
handicraft items, food products, embroidery,
the end of this December. Currently the
clothes & other products) sustains a
company is carrying out foundation activity
significant segment of the population in the
to connect with the consumers as word of
rural areas. Several attributes of rural
mouth is very important in this segment.
products can be identified, for which, it has

3. industry’s intervention will also empower
the rural mass (producers, farmers &
The basic scope of this novel initiative will entrepreneurs) to cope with socio-economic
be the mutual benefits of the rural problems in the rural society and will ensure
entrepreneurs and industries. The economic self –reliance.
entrepreneurs – primary beneficiaries, SHGs Rural India does hold maximum of India’s
– bridge with the community, participating population, so opportunity wise it’s a
companies/industries and rural consumers promising land but biggest issue for entire
have befitted through a robust commercial country is infrastructure a better thought
relationship. These models of marketing about and planned one.
linkages demonstrate a large corporation Global warming is already killing
which can play a major role in reorganizing agriculture, middle men conning is already
markets and increasing the efficiency of a putting farmers at verge of suicide
rural product generation system. While etc.Whoever is going to target rural area,
doing so it will benefit farmers and rural need to have customized solutions since a
communities as well as shareholders. widened gap and culturally different
Moreover, the key role of information earning’s and lifestyle of urban and rural
technology—provided and maintained by area exists to great extent, customized
the industry/company for building linkages, solutions is the key, hopefully pre-packaged
and used by local farmers—brings about in some device like mobile phone that
transparency, increased access to people already use. The bare minimum
information, and rural transformation. necessities need to be provided much ahead
Besides, this strategy of market linkage, of Internet, but I still think some scenarios
addresses the challenges faced by rural can be fulfilled in a much better way with
entrepreneurs due to institution voids, some basic Internet capability, which can
numerous intermediaries and infrastructure really make a difference. Essentially just
bottlenecks. Moreover, the prime scope of cheaper, richer and better communication
this model is the creation of opportunities with the outside world to explore the
for the rural entrepreneurs for product potential of
differentiation and innovation by offering Rural markets, critically analyze the rural
them choices. Because of this sustainable market opportunities so as to formulate
market linkages, rural producers can better marketing programmes. Discussion
participate in the benefits of globalization would also involve issues related to
and will also develop their capacity to segmentation, targeting, and position and
maintain global quality standard. other key strategic issues.
Nonetheless, it creates new stakeholders for
the industry sector. And subsequently, they Customer acquisition in rural areas may be
become part of the firms’ core businesses. difficult, but retaining them is not because
The involvement of the private /industry the rural consumer is not a fickle.
sector at the rural product and market
development can also provide opportunities
for the development of new services and
values to the customers, which will find
application in the developed markets. It will
be worth mentioning that building a
sustainable market linkage through