Understanding Rural Market
Understanding Rural Market
Rural India accounts for over 75% of Indias population and this in itself offers a tremendous opportunity for generating volume driven growth
Contrary to general perceptions, incomes in rural India have improved dramatically over the years mainly due to the eleven successive normal monsoons and increasing crop yields.
50% of India‟s GDP lies in rural purchasing power
60% of villages are connected by and all weather roads
Distribution Channels in Rural Market
Hub and Spoke Model, Example: Coca Cola
Use of Affinity groups, Example: Project Shakti
Haat Activation, Example: Colgate
Syndicated distribution, Example: CavinCare & Amrutanjan
Use of marketing co-operatives, Example: WarnaBazaar in Rural Areas
Mobile traders, Example: FMCG companies
Approach of facing the Challenges
Product designs and packaging which appeals to rural TG
Tie-up with public distribution system (fair price shops)
Use backward and forward integration
Using value based pricing strategy
Effective total quality management
Avoid the marketing myopia, which means the customer will have the same need but will want the new product
Application of value engineering
Use Chinese product design strategy and raw material
Taking care of product duplication and using security features
Provide social outlet campaign
Face-to-face „below the line‟ to
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