Opportunities in Rural Marketing


By

Kandasamy. C.
Nagesha. B.N.
Aparna. B.
Faculty of Advanced Management College
18th K.M. Bannerghatta Road, Bangalore-83
 


Introduction:

The rural market is an area of darkness to Indian entrepreneur's .an area which is vast in size but amorphous in detail. An area which it self off from the nations economy because its own is not fully monetized. And yet, the rural market represents the large potential market in the country.

India is a country where the majority population, almost 70%, lives in villages. There are 627000 villages in the country spread across its length and breadth.  Their primary  activates are  agriculture, animal husbandry , fisheries and forestry .the village people are poorer than the city folk as the village contribute less 50% to total country income however now the situation is gradually is changing for the better . There are 25 official languages and some 400 dialects spoken in the country. Most old religions have their adherents here.  In the first half of the twentieth century, village people were using neem or babul tree twitch for cleaning their teeth.  Today, they are using tooth powder or tooth paste instead of ground nut the children's are asking for chocolate candies. Face cream are lotion are replaced basal (chickpea flour) has face cleanser.

Appreciat6ing the size and business potential of the rural market , major companies  including , HUL , P&G  have make special strategy for targeting rural markets.

IMPORTANCE OF THE RURAL MARKET

The rural market in made of two brad areas

a) The market for consumptions goods both consumer convenient and shopping and durable goods.
b)  The market for agriculture input and other investments goods such as tractors etc.

FACTORS OF RURAL MARKET

* Size of the rural market
* Rural market in value terms
* Rural target populations
* The market for agricultural inputs

Name of  the input

Percentage

 Fertilizers

10

Pesticides

12

Area under high yielding variety 

11

Tractors

15

Pumps and tub wells

11


*
Source of rural purchasing capacity

Opportunities in rural markets

Rural marketing provides opportunities for marketers

* Untapped potential: it offers a great chance for different branded goods as well as services for large number of customers.

It is estimated by HLL  that out of 5 lakh villages in India , only  lakh has been taped so far , which goes on to indicate the market potentials of  the rural market .

* Market size and potential

The size of India s rural market is stated as 12.2 % of the percentage of the old population this means 12.2% of the worlds consumers leave in rural India.

In India, rural household farm about 72% of total household constitutes a huge market by any standard.

Current consumption

Consumer durables

95-96

2001-2002

2009-10

Scooters

33.1

39.4

39.9

Motor cycles

47.3

39.8

48.3

mopeds

52.7

58.2

57.7

Cars/jeeps

2.1

8.0

10.9

Auto motives

37.9

36.0

37.9

Television

54.0

54.5

44.2


Increasing income

Different programs undertaken have helped to improve the economic the economic situation of the rural areas. The increase in income is seen in both absolute values as well as in the increase in average number of days of occupation in a year.

Accessibility markets

Though the road network has not developed to the best possible extent but a fire amount of development has been made in many regions, making these regions accessible from the urban region and making in easier for supplying products to these regions

Competition in urban areas

The urban market is getting saturated and thus is enable to provide the much needed market to many companies and in search of greener pastures many of these companies are now targeting the rural market.

Conclusion:

Marketers will have to understand the rural customers before they can make inroads in to rural makers.

The size of the rural market is past expanding. Arvind mills decision rural market with ruf and tuff brand has met with astounding success. In the first two month demand crossed a million pieces has against a production capacity of 250000 kites. Britannia to venture into basic items such as biscuits, with brand called tiger. This brand is statically gaining market share also creating new markets.

L G has ventured into the rural market, selling block and white and TV with great success and hopes to further penetrate the market in the near future with colour television. ITC's e-chaupal initiative to equip the rural farmers, HLL's project shakti to empower rural human consumers through income generation project are some the examples, which have opened new vistas in rural marketing.
 


Kandasamy. C.
Nagesha. B.N.
Aparna. B.
Faculty of Advanced Management College
18th K.M. Bannerghatta Road, Bangalore-83
 

Source: E-mail June 25, 2010

          

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