Project Report

On

“COMMUNICATION STRATEGIES IN
RURAL MARKET”

Submitted To: Submitted By:-

Group no
 Executive Summary

A debate continued for a long time amongst the Indian marketers, both practitioners &
academicians, on the justification for the existence of the distinct discipline of rural marketing.
Consequently, two schools of thought emerged. The first school belived that the
products/services, marketing tools & strategies that are successful in urban areas, could be
transplanted with little or no more modifications in rural areas. However, the second school saw
a clear distinction between urban & rural India, & suggested a different approach, skills, tools &
strategies to be successful in rural markets.

What differentiates the two markets is not mere income, but a host of other infrastructural &
socio-cultural factors. Thus, the rural market cannot be tapped successfully with an urban
marketing mindset & would definitely require its thorough understanding. In other words, the
approach toward rural markets needs to be distinct from the one adopted for the urban markets.

Thus, in a large rural economy like India’s, rural marketing has emerged as an important &
distinct internal sub-division within the marketing discipline. This sub-division clearly highlights
the differences between rural marketing & mainstream marketing.
RURAL MARKETING
Rural marketing involves the process of developing, pricing, promoting, distributing rural
specific product and a service leading to exchange between rural and urban market which
satisfies consumer demand and also achieves organizational objectives.

URBAN RURAL

RURAL URBAN

RURAL RURAL

It is a two-way marketing process wherein the transactions can be:

1. Urban to Rural: A major part of rural marketing falls into this category. It involves the
selling of products and services by urban marketers in rural areas. These include:
Pesticides, FMCG Products, Consumer durables, etc.
2. Rural to Urban: Transactions in this category basically fall under agricultural marketing
where a rural producer seeks to sell his produce in an urban market. An agent or a
middleman plays a crucial role in the marketing process. The following are some of the
important items sold from the rural to urban areas: seeds, fruits and vegetables, milk and
related products, forest produce, spices, etc.
3. Rural to Rural: This includes the activities that take place between two villages in close
proximity to each other. The transactions relate to the areas of expertise the particular
village has. These include selling of agricultural tools, cattle, carts and others to another
village in its proximity.

Rural marketing requires the understanding of the complexities. Indian agricultural industry has
been growing at a tremendous pace in the last few decades. The rural areas are consuming a large
number of industrial and urban manufactured products. The rural agricultural production and
consumption process plays a predominant role in developing the Indian economy. This has
designed a new way for understanding a new process called Rural Marketing.

CLASSIFICATION OF RURAL CONSUMERS

The rural consumers are classified into the following groups based on their economic status:

• The Affluent Group: They are cash rich farmers and a very few in number. They have
affordability but not form a demand base large enough for marketing firms to depend on.
Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group.

• The Middle Class: This is one of the largest segments for manufacturedgoods and is fast
expanding. Farmers cultivating sugar cane in UP andKarnataka fall in this category.

• The Poor: This constitutes a huge segment. Purchasing power is less,but strength is
more. They receive the grants from government and reapthe benefits of many such
schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall
under this category.
ROADBLOCKS OF INDIAN RURAL MARKETS

There are several roadblocks that make it difficult to progress in the rural market. Marketers
encounter a number of problems like dealing with physical distribution, logistics, proper and
effective deployment of sales force and effective marketing communication when they enter
rural markets. The major problems are listed below.

1. Standard of living: The number of people below the poverty line is more in rural
markets. Thus the market is also underdeveloped and marketing strategies have to be
different from those used in urban marketing.
2. Low literacy levels: The low literacy levels in rural areas leads to a problem of
communication. Print media has less utility compared to the other media of
communication.
3. Low per capita income: Agriculture is the main source of income and hence spending
capacity depends upon the agriculture produce. Demand may not be stable or regular.
4. Transportation and warehousing: Transportation is one of the biggest challenges in
rural markets. As far as road transportation is concerned, about 50% of Indian villages are
connected by roads. However, the rest of the rural markets do not even have a proper
road linkage which makes physical distribution a tough task. Many villages are located in
hilly terrains that make it difficult to connect them through roads. Most marketers use
tractors or bullock carts in rural areas to distribute their products. Warehousing is another
major problem in rural areas, as there is hardly any organized agency to look after the
storage issue. The services rendered by central warehousing corporation and state
warehousing corporations are limited only to urban and suburban areas.
5. Ineffective distribution channels: The distribution chain is not very well organized and
requires a large number of intermediaries, which in turn increases the cost and creates
administrative problems. Due to lack of proper infrastructure, manufacturers are reluctant
to open outlets in these areas. They are mainly dependent on dealers, who are not easily
available for rural areas. This is a challenge to the marketers.
6. Many languages and diversity in culture: Factors like cultural congruence, different
behaviour and language of the respective areas make it difficult to handle the customers.
 Traits among the sales force are required to match the various requirements of these
specific areas.
7. Lack of communication system: Quick communication is the need of the hour for
smooth conduct of business, but it continues to be a far cry in rural areas due to lack of
communication facilities like telegraph and telecommunication systems etc. The literacy
rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional,
which may be a problem for effective communication.
8. Spurious brands: Cost is an important factor that determines purchasing decision in
rural areas. A lot of spurious brands or look-alikes are available, providing a low cost
option to the rural customer. Many a time the rural customer may not be aware of the
difference due to illiteracy.
9. Seasonal demand: Demand may be seasonal due to dependency on agricultural income.
Harvest season might see an increase in disposable income and hence more purchasing
power.
10. Dispersed markets: Rural population is highly dispersed and requires a lot of marketing
efforts in terms of distribution and communication.
EVOLVING A NEW PROMOTIONAL MIX FOR SELLING TO
RURAL INDIANS
Promotions & Advertising
There are a lot of barriers that militate against homogenous media and message delivery. These barriers
stem from the fact that rural markets vary immensely in terms of tastes, habits and preferences leading to
different expectations of every segment of the population.

However, one fact is certain across all areas. The rural consumer likes to touch and feel a product before
making a choice. Demonstrations are undoubtedly the most effective promotional tool that shapes
purchase decisions of the rural population. Demonstrations establish the credentials of any new
technology used in developing the product.

In today’s information era, it is very important for companies to wise-up on emerging technologies. It has
in fact become a medium to attract larger audiences for a product demonstration. Technology must be
used to prepare a database of customers and their requirements. The use of video using mobile vans and
even large screen video walls at events should be arranged.

The classic conundrums of reach and coverage of the media are shattered. Several creative
communication media have been used by various companies to tackle the problem of having to use visual
communication and non-verbal communication to reach the rural audience. This is required because a
large proportion of the rural population cannot read or write. Alliances with cottage industries,
dharmsalas, panchayats, post offices and police stations for advertising have also helped immensely.
More importantly, in rural India, experience has proved time and time again that word of mouth is the key
influencer.

Intermediaries are the foundation to rural distribution. If the intermediary understands and is constantly
reminded about your product, then the end user will not be allowed to forget. The companies must
reinforce this highly effective medium and use all their innovation and money tom develop more dramatic
point of sale and point of contact material. This becomes all the more important when in rural India, more
often than not, the overlap between the product categories sold in a single outlet in tremendous. For
instance, a store may call itself as a grocery store but will stock everything from groceries to vegetables to
fertilizers and may at times even stock medicines. In such cases, the point at which the customer actually
comes in contact with a product may not be the point at which the sale is affected.
The re-use capacity and colour of the container in which the product is packed is also a crucial factor. In
fact, reusable packaging is considered a major aid in promoting sales for products in the rural market.

Consumer and Trade schemes that Incentivise Spending using discount coupons, off season discounts,
free samples, etc. encourage spending. Lucky draws and gift schemes are a major hit in most states.

The use of local idioms and colloquial expressions are an excellent way to strike a rapport with the rural
consumer and must be borne in mind when developing media plans and public relations programmes. No
high voltage publicity is required. The rural consumer is very down to earth but equally discerning and
marketers need to step into the shoes of the rural folk while creating product promotion campaigns.

Another unique feature of rural markets is that the Decision making process is collective. The persons
involved in the purchase process - influencer, decider, buyer, one who pays can all be different. So
marketers must address brand messages in their campaigns at several levels. Apart from regular
household goods, several agribusiness companies have also started providing gift schemes with offers for
free jewellery that influences the ladies to pressure the farmers to purchase agricultural inputs from select
companies. This promotion strategy thus makes women influence purchase decisions that they would
ordinarily not be involved in.

Youth power is becoming increasingly evident in villages. Rural youth bring brand knowledge to the
households. This has forced several companies to change the focus and positioning of their products and
services towards this segment that is growing in absolute number and relative influence.

There are other attributes in the promotion strategy which are explained as under:

1. Mass media: In the present world mass media is a powerful medium of communication.
The following are the mass media generally used:

Television.

Cinema

Radio
Print media: Handbills and Booklets, posters, stickers, banners, etc.

2. Personal selling and opinion leaders: In personal selling it is required that the
potential users are identified and awareness is created among them about the product, its
features, uses and benefits. This can be achieved only by personal selling by highly motivated
sales person. In fact the word of mouth information holds lot validity in rural areas even today.
This is the reason why opinion leaders and word of mouth are thriving among rural consumers.
An opinion leader in rural areas can be defined as a person who is considered to be
knowledgeable and is consulted by others and his advice is normally followed. The opinion
leaders may be big landlords or politicians or progressive farmers.

3. Special campaigns: During crop harvest and marketing seasons it is beneficial to take
up special promotion campaigns in rural areas. Tractor owners (tonee) conducted by MRF
Limited is one such example. Brooks Bond carries out marches in rural areas with band, music
and caparisoned elephants to promote their brand of tea.

MANDI AND MELA MAGIC

At last count, India witnessed over 50,000 melas. Of these 25,000 meals are held to signify religious,
cultural festivals as well as local fairs and events. On an average, visitors at these melas spend between
Rs. 5,000 to Rs. 50,000 a day. For example, 3 lakh people visited the annual mela at Navchadi which lasts
for 7 days in Meerut. The largest such mela is the Maha Kumbh Mela which is visited by an average of
12 crore people.

There is however, a caveat when an organization is considering using mela for marketing their products.
Is the audience at this mela fit for promotion of the product at hand? What are the psychographics of this
audience? What is the motivational and behavioural impetus that brings visitors to each of these melas.
On considering these questions, it has been observed that melas are fit to generate product exposure,
package familiarity, brand reminder and word of mouth. However, for products that need concept
marketing and those that have high prices, such melas are not suitable promotion media. This is because
the time and the mood of the people that visit these melas are not right to digest technical information or
for making large purchases. People come to melas to have a good time and are not reminded of such high
technology or high priced products when they return home. In the words of Mr. Neville Gomes,
Managing Director of Multimedia Aquarius, promotion at melas is like a “one night stand”. There will be
no reminder later. Thus, a large amount of qualitative judgment is indeed in planning promotions at melas
by media planners.

Significance of Distribution
No matter how well devised a company’s product, pricing or promotion strategy, the most crucial link in
ensuring the success of rural marketing efforts is distribution. Distribution must be strengthened and this
would raise investment cost barriers for new entrants.

In Rural India, the selection and use of distribution channels is a nightmare. The reason for this is very
clear when we consider that on an average, Urban and Rural India both have approximately 3 million
retail outlets. However, Urban India has only 4,000 towns where these outlets are located. On the other
hand, Rural India’s 3 million outlets are located in 6.3 lakh villages. Thus, marketers are faced with the
problem of feeding 3 million shops located in vastly diverse areas each of which records an average sale
of only Rs.5,000 per outlet. Further compounding this problem is the fact that even this meagre sale is
mostly on credit. The diversity in the distribution of shops is the self-limiting factor in terms of servicing
the rural distribution network.
The distribution of outlets however shows that a marketer need not be present in all markets at all times.
Being present in 6 lakh villages is virtually impossible for an organization of any size. Rural wealth and
demand is concentrated typically at satellite towns, district headquarters, assembly markets and such
central locations. Rural distribution has a rigid hierarchy of markets that make channel decisions
relatively structured.

It is essential for rural marketing companies to understand this hierarchy. Rural folk are habituated to
travelling once a week for their weekly purchases to a satellite town. They do not expect such items to be
present in every village. For durables where the outlay involved is typically large, the purchase would be
made in an assembly market for reasons of choice and availability of adequate cash flow. This is due to
the fact that it is at assembly markets that auction yards are present where the farmers congregate to sell
their output. After such sale of produce, they are cash rich and can afford to make such purchases. It is
therefore not necessary for a marketer of TV sets to take their distribution channel all the way down to the
village shop. A TV will not be sold there as the cash flow does not exist at that point in the hierarchy of
markets. A television distributor must be present at assembly markets which are much smaller in number,
more controllable, easier to reach and service. Keeping the hierarchy in mind will help decide the
optimum level of penetration required to reach a critical mass of rural consumers.
Haats
Haats are the nerve centre of Rural India. They are a readymade distribution network embedded in the
fabric of rural society for over 1000 years. They have been held on a regular basis across the length and
breadth of the country for over 1000 years. Right from the time of Chandragupta Maurya, Haats are seen
as a place for social, cultural and economic interchange.

One in every five villages with a population of over 2000 has a haat. In villages with less than 2000
people this figure reduces to 1 in 20 villages. Typically, an average haat will have close to 300 stalls. A
haat usually serves around 5000 visitors. Considering that the average population of an Indian village is
approximately 1000, each haat serves 5 villages. A study estimates that 47,000 haats are conducted in
rural India. These rural super markets are much larger than all the world's K-marts and Wal-marts put
together.

A lot of re-distribution also occurs through haats. This is because, a large number of retailers and sub-
wholesalers buy from haats for their village stores. What is most attractive to marketers is that 90% + of
sales in haats are on cash basis. Traditionally, in village shops a lot of credit sales occur due to the fact
that in a small geographic area of a village, everybody knows everybody. Considering that over 5000 visit
a haat from 5 villages, the system gets derelationalised. Apart from the 90% cash sale, 5 to 7% is
conducted on barter system and the rest 3 to 5% is on credit. Also attractive to companies wishing to use
the system is the low selling overheads. Participation fees at haats are a flat Re.1 to Rs.5 per stall and this
rate is common to a giant like Hindustan Lever and the smallest local seller.

Distribution costs must be reduced through optimum utilization of the network. Thus, incorporating haats
in the distribution strategy of a rural marketing organization selling consumer goods and FMCG products
(typically once a week purchase items) is a tremendous opportunity.

Perhaps the other most important factor to consider while developing rural distribution strategy is that the
move from transactional marketing to relationship marketing is most evident in the village market. A
strong bond needs to be created with every consumer even in the remotest village and the smallest town.
Marketing in Rural India is undoubtedly a long-haul exercise and one that involves great expense. Only
those with a strong mind, a tough heart and stiff hands survive.

There is also a need to realise that the dealer is the company's "unpaid" sales force. It is essential
to educate and involve him as he is the local company representative and is the only member in
the channel of distribution that is in direct contact with the final consumer. The dealers' feedback needs to
be obtained as the direction for future strategy emanates here.
MARKRTING STRATEGIES TO CAPTURE RURAL INDIA

SEGMENTATION OF RURAL MARKET

The first step is to develop & implement any strategy for the rural market should include the
appropriate segmentation of the rural market. The important thing is that appropriate
segmentation basis need to be applied. Different product categories have different rural markets
to cater to & these can be selected by applying different criteria of segmentation. The
organization can do the following thing to start with:
 Focus on select markets.
 Focus on select villages.

BY COMMUNICATING AND CHANGING QUALITY PERCEPTION

Companies are coming up with new technology and they are properly communicating it to the
customer. There is a trade of between Quality a customer perceives and a company wants to
communicate. Thus, this positioning of technology is very crucial. The perception of the Indian
about the desired product is changing. Now they know the difference between the products and
the utilities derived out of it. As a rural Indian customer always wanted value for money with the
changed perception, one can notice difference in current market scenario.

BY PROPER COMMUNICATION IN INDIAN LANGUAGE

The companies have realized the importance of proper communication in local language for
promoting their products. They have started selling the concept of quality with proper
communication. Their main focus is to change the Indian customer outlook about quality. With
their promotion, rural customer started asking for value for money.
BY TARGET CHANGING PERCEPTION

If one go to villages they will see that villagers using Toothpaste, even when they can use Neem
or Babool sticks or Gudakhu, villagers are using soaps like Nima rose, Breeze, Cinthol etc. even
when they can use locally manufactured very low priced soaps. Villagers are constantly looking
forward for new branded products. What can one infer from these incidents, is the paradigm
changing and customer no longer price sensitive? Indian customer was never price sensitive, but
they want value for money. They are ready to pay premium for the product if the product is
offering some extra utility for the premium.

BY UNDERSTANDING CULTURAL AND SOCIAL VALUES

Companies have recognized that social and cultural values have a very strong hold on the people.
Cultural values play major role in deciding what to buy. Moreover, rural people are emotional
and sensitive. Thus, to promote their brands, they are exploiting social and cultural values.

BY PROVIDING WHAT CUSTOMER WANT

The customers want value for money. They do not see any value in frills associated with the
products. They aim for the basic functionality. However, if the seller provides frills free of cost
they are happy with that. They are happy with such a high technology that can fulfil their need.
As "Motorola" has launched, seven models of Cellular Phones of high technology but none took
off. On the other hand, "Nokia" has launched a simple product, which has captured the market.

BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS

Companies are picking up Indian models, actors for advertisements as this helps them to show
themselves as an Indian company. Diana Hyden and Shahrukh Khan are chosen as a brand
ambassador for MNC quartz clock maker "OMEGA" even though when they have models like
Cindy Crawford.
BY ASSOCIATING THEMSELVES WITH INDIA

MNCs are associating themselves with India by talking about India, by explicitly saying that
they are Indian. M-TV during Independence Day and Republic daytime make their logo with
Indian tri-colour. Nokia has designed a new cellular phone 5110, with the India tri-colour and a
ringing tone of "Sare Jahan se achcha".

BY PROMOTING INDIAN SPORTS TEAM

Companies are promoting Indian sports teams so that they can associate themselves with India.
With this, they influence Indian mindset. LG has launched a campaign "LG ki Dua, all the best".
ITC is promoting Indian cricket team for years; during world cup they have launched a campaign
"Jeeta hai jitega apna Hindustan India India India". Similarly, Whirlpool has also launched a
campaign during world cup.

BY TALKING ABOUT A NORMAL INDIAN

Companies are now talking about normal India. It is a normal tendency of an Indian to try to
associate him/her with the product. If he/she can visualize himself/herself with the product, he
/she become loyal to it. That is why companies like Daewoo based their advertisements on a
normal Indian family.

BY DEVELOPING RURAL-SPECIFIC PRODUCTS

Many companies are developing rural-specific products. Keeping into consideration the
requirements, a firm develops these products. Electrolux is working on a made-for India fridge
designed to serve basic purposes: chill drinking water, keep cooked food fresh, and to withstand
long power cuts.
BY GIVING INDIAN WORDS FOR BRANDS

Companies use Indian words for brands. Like LG has used India brand name "Sampoorna" for its
newly launched TV. The word is a part of the Bengali, Hindi, Marathi and Tamil tongue. In the
past one year, LG has sold one lakh 20-inch Sampoorna TVs, all in towns with a population of
around 10,000.

BY ACQUIRING INDIAN BRANDS

As Indian brands are operating in India for a long time and they enjoy a good reputation in India.
MNCs have found that it is much easier for them to operate in India if they acquire an
Established Indian Brand. Electrolux has acquired two Indian brands Kelvinator and Allwyn this
has gave them the well-established distribution channel. As well as trust of people, as people
believe these brands. Similarly Coke has acquired Thumps up, Gold Spot, Citra and Limca so
that they can kill these brands, but later on they realized that to survive in the market and to
compete with their competitor they have to rejuvenate these brands.

BY EFFECTIVE MEDIA COMMUNICATION

Media Rural marketing is being used by companies. They can either go for the traditional media
or the modern media. The traditional media include melas, puppetry, folk theatre etc. while the
modern media includes TV, radio, and e-chaupal. LIC uses puppets to educate rural masses
about its insurance policies. Govt of India uses puppetry in its campaigns to press ahead social
issues. Brook Bond Lipton India ltd used magicians electively for launch of Kadak Chap Tea in
Etawah district. In between such a show, the lights are switched of and a torch is flashed in the
dark (EVEREADYs tact).
BY ADOPTING LOCALISED WAY OF DISTRIBUTING

Proper distribution channels are recognized by companies. The distribution channel could be big
scale Super markets; they thought that a similar system can be grown in India. However, they
were wrong; soon they realized that to succeed in India they have to reach the nook and the
corner of the country. They have to reach the "local Paan wala, Local Baniya" only they can
succeed. MNC shoe giants, Adidas, Reebok, and Nike started with exclusive stores but soon they
realized that they do not enjoy much Brand Equity in India, and to capture the market share in
India they have to go the local market shoe sellers. They have to reach to local cities with low
priced products.

BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES

MNCs have realized that in India celebrities enjoyed a great popularity so they now associate
themselves with Indian celebrities. Recently Luxor Writing Instruments Ltd. a JV of Gillette and
Luxor has launched 500 "Gajgamini" ranges of Parker Sonnet Hussain special edition fountain
pens, priced at Rs. 5000. This pen is signed by Mr. Makbul Fida Hussain a renowned painter
who has created "Gajgamini" range of paintings. Companies are promoting players like
Bhaichung Bhutia, who is promoted by Reebok, so that they can associate their name with
players like him and get popularity.

MELAS
Melas are places where villagers gather once in a while for shopping. Companies take advantage
of such events to market their products. Dabur uses these events to sell products like JANAM
GHUTI (Gripe water). NCAER estimates that around half of items sold in these melas are
FMCG products and consumer durables. Escorts also display its products like tractors and
motorcycles in such melas.

PAINTINGS

A picture is worth thousand words. The message is simple and clean. Rural people like the sight
of bright colors. COKE, PEPSI and TATA traders advertise their products through paintings.
PROMOTION STRATEGIES

Customized promotional media & messages need to be developed by the organizations to

effectively target the rural market. The following strategies can be considered while developing
promotional campaigns for the rural markets:
1. Think Global Act Local
Rural population is diverse, but the commonalities of their ethos & simple living habits
need to be understood for advertising to succeed. For that, the theme of the advertisement
needs to revolve among universal themes, such as family-love. But the context, storyline,
language & idioms should be such that the rural audience of different rural market
segments can relate to.
2. Think in Local Idiom
This is the need of the advertising professionals who can think like the rural people. The
only we can have insights like ‘Thanda matlab Coca Cola’. There should be the use of
language writers who understands the rural & regional pulse better.

3. Simplicity & Clarity

All promotional messages targeted at rural audience need to be simple & clear, which can
be easily understood, & they should not include any confusing elements. It is preferable
that it has only a few propositions at a time. Bombarding rural consumers with too much,
in less time can easily confuse them & leave them bewildered. Promotional message
should highlight only the functional values of the product & explains how those values
can make the consumer’s life even better & solve any of his problems.

4. Narrative Story Style

The promotional message can be delivered in the form of an entertaining story with a
message depicting how the brand delivers “larger good” to the family & society. The
theme of the story line can be about how the product can solve the problems of the rural
consumers.
 5. Choice of Brand Ambassador
Brand Ambassador for the rural markets need to be picked carefully as urban successes
might not get replicated in the rural markets. That is why Govinda in the Mirinda as
boosted the sales of the drink in the rural markets. An organization might spend a lot of
money in hiring a brand ambassador only to find out later that it had little impact on the
rural consumer.

DISTRIBUTION STRATEGY
Many companies view the rural markets as great opportunity for expanding their sales but find
distribution as a major problem. Unfortunately, it is almost impossible to transplant strategies
which work successfully in urban markets onto rural markets, namely, extensive retailing and
sustained pull generation through mass media advertising.

The road blocks to reach the rural customers are:

• Lack of adequate transport facilities.

• Large distances between villages.
• Lack of pucca roads connecting villages to nearest townships.
• Lack of proper retail outlets
• Lack of mass media infrastructure.

The marketers were of the opinion that the villagers would come to nearby towns and buy the
products that they want.

What has been found is that if we have to serve the rural consumer we will have to take our
products to him through the channels that he is using and some innovative ways of getting to
him.
The following distribution strategies formulated for the rural category.

1. Coverage of villages with 2000 and above population: Ideally, coverage of

villages with up to 2000 and above population could be the break-even point for a distribution
setup. By doing so the percentage of villages covered comes to only 10% of all the villages, but
the rural population covered will be substantial, to the extent of about 40 to 45 percent. With a
distribution network in about 55,000 villages, which have a population of 2000 persons & above
each, one can cover about 25 crores rural consumers. This strategy is good to begin with & then
subsequently, villages with lesser populations can be added.

2. Segmentation: The number of villages in India is huge & it is not viable to contact &
serve all villages directly. Therefore, companies or distributors can carefully examine the market
potential of different villages & target the villages that can be served in a financially viable
manner through an organized distribution effort.

3. Use of co-operative societies: There are over 3 lacks co-operative societies operating
in rural areas for different purposes like marketing cooperatives, farmer’s service cooperatives
and other multipurpose cooperatives. These cooperatives have an arrangement for centralized
procurement and distribution through their respective state level federation. Such state level
federation can be motivated to procure and distribute consumables items and low value durable
items to the members to the society for serving to the rural consumers. Many of the societies
extend credit to the members for purchases.

4. Utilization of public distributory system: The PDS in the country is fairly well
organized. The revamped PDS places more emphasis on reaching remote rural areas like the hills
and tribal’s. The purpose of PDS is to make available essential commodities like food grains,
sugar, kerosene, edible oils and others to the consumers at a reasonable price. The shops that
distribute these commodities are called fair price shops. These shops are run by the state civil
Supplies Corporation, co-operatives as well as private entrepreneurs. Here again there is an
arrangement for centralized procurement and distribution. The manufacturing and marketing
men should explore effective utilization of PDS.
5. Utilization of multipurpose distribution centers by petroleum/oil
companies: In order to cater to the rural areas the petroleum/oil companies have evolved a
concept of multipurpose distribution centers in rural areas. In addition to petrol/diesel, lubricants,
these outlets also stock consumables agricultural inputs like fertilizers, pesticides and seeds. It is
estimated that there are about 450 such outlets in operation in the country. The rural consumer
who has tractors, oil-engine pump sets and mopeds frequent these outlets for their requirement.
These outlets can be profitably utilized for selling consumables and durable items also.

6. Distribution up to feeder markets/mandi towns: Keeping in view the hierarchy of

markets for the rural consumers, the feeder markets and mandi towns offer excellent scope for
distribution. The rural customers visit these towns at regular intervals not only for selling the
agricultural produce but also for purchasing cloth, jewelry, hardware, radios, torch cells and
other durables and consumer products. From the feeder markets and mandi towns the stockiest or
wholesaler can arrange for distribution to the village shops in the interior places. This
distribution can be done by mopeds, cycles, bullock-carts, camelbacks etc. depending upon the
township.

7. Shandies/Haaths/Jathras/Melas: These are places where the rural consumers

congregate as a rule. While shandies/heaths are held a particular day every week, Jathras and
melas are held once or twice a year for longer durations. They are normally timed with religious
festivals. Such places attract large number of itinerant merchants. Only temporary shops come up
selling goods of all kinds. It can be beneficial for companies to organize sales of their product at
such places. Promotion can be taken, as there will be ready captive audience. For convincing the
manufacturing and marketing man with regard to the importance of these places from rural
marketing point of view a visit to such places is necessary. It is estimated that over 5,000 fairs
are held in the country and the estimated attendance is about 100 million rural consumers.
Biggest fair ‘Pushkar Mela’ is estimated to attract over 10 million people. There are 50 such big
rural fairs held in various parts of country, which attract urbanite also like ‘Mankanavillaku’ in
Malappara in Kerela, Kumbh Mela at Hardwar in U.P. ‘Periya Kirthigai’ at Tiruparunkunaram in
Tamil Nadu.
Merits:

• Convenience: The entire market can be related to large departmental stores in cities,
where the advantage is a one-stop shopping exercise. These outlets crop up every week,
providing consumers immense choice and prices.

• Attractive: The weekend shopping is not only convenient but also entertaining. The
markets start early and will be over by lunch. Afterwards, there will be entertainment. In
respect of transactions, it is an attractive place to those who want to buy second hand
durables and to those who prefer barter transactions. Further the freshness of the produce,
buying in bulk for, a week and the bargaining advantage attract the frugal and weeklong
hard working rural folk.

• Availability: It is a market for everyone and for everything. Household goods, clothes,
durables, jewellery, cattle, machinery, farming equipment, raw materials and a host of
products are available.

8. Agricultural Input Dealers: Fertilizers should be made available to the farmers within
the range of 4-5 km from their residence, as per the essential commodities act. This is why there
are about 2 lakh fertilizer dealers in the country, both in cooperative & private sector. Example
of Varana Nagar in Maharashtra proved an eye opener in this regard where the sugar and milk
co-operatives have totally changed the life style of people. The supermarket in Varana Nagar
caters exclusively to rural consumers. Similarly a co-operative supermarket called ‘Chintamani’
in Coimbatore (T.N) arranges free transit of rural consumers to the supermarket of their
purchases.

9. Joint distribution by Non-competing Companies: As the cost of distributing the

products in the rural market through distribution vans can be unviable for a single company,
different non-competing companies can come together to jointly operate distribution vans for the
rural market. This will enable them to share the cost of operating the van & on account of the
sharing of the cost by four or five companies; the entire operation can become financially viable
for all the players.

10. Personal Selling Network: It is very successful distribution channel being developed
by companies like HUL. It adds a personal touch to the marketing, as the salesmen are the
resident of the village or community itself, making it easier to sell the product & maximise sales
for the company.

THE OLD SETUP

The historically available people & places for distribution include: - Whole seller, Retailer, Vans,
Weekly Haats, and Bazaars & Shadies.

1. Wholesalers

The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the
belief that business is speculative rather than distributive in character.

He is a trader / commodity merchant rather than a distributor and therefore tends to support a
brand during boom and withdraw support during slump.

The reason for this speculative character and dormant role of wholesalers are: -

• Indian market was largely sellers market. There was no need for active sales growth.

• Companies laid more emphasis or retailers in urban areas, who are very large in
number. As a result of retail based distribution was weakened.

• Rural markets were neglected by many. The occurrence of retail outlets was low.
Therefore many companies were dependent on whole salers.
 The current need is to activate and develop wholesaler of the adjoining market as a
distributor of products to rural retail outlets and build his loyalties to the company.

2. Retailers
There are different kinds of retailers.
 S hops within the village
Shops located on the main road and not exactly within the village
Kasba market or the tahsil market.
Village retailers have traditionally been among the most mobile of rural residents.
Often doubling up as money lenders.
Their multi – person interaction in the closed village society.

As a result retailers play a significant role.

I. CREDIBILITY: -
 He enjoys the confidence of the villagers.
 His views are accepted and followed by the rural people whose awareness and
media exposure levels are low.

(- The urban retailer is not trusted.

- He is seen as a businessman with profit motto.
- His view points are evaluated with other sources of information.)

II. INFLUENCE LEADER: -

 His role as influence leader is indisputable. From tender twig of neem to
washing powder retailer testimony has been vital part of the product adoption
process.
 The role of urban retailer is weak.
 The urban consumers have numerous sources of information.
  Although retailer’s opinion is sought it may not be 100% believed and
followed.

III. BRAND PROMOTER: -

 In rural market retailers remains the deciding factor to sell particular brand.
 Retailers helps in identification and selection of brands, there is less influence
of shelf displays and point of purchase promotion.
 Presence of spurious brands is an ample testimony to this view.

(- The urban retailer has a limited role as a brand promoter.

- He cannot directly, recommend the brands.
- He is to intelligently drive home his recommendations, as
urban consumers do not trust him completely.
- It is through shelf displays and incentive offers that he has to push the
brands.)

IV. RELATIONSHIP MARKETER

 Village retailer practices relationship marketing.
 He caters to a set of buyers who have income from immovable land resources
and would be static over a much longer time span.
 The relationship could extend beyond three generations, backed by historical
credibility of the retailer as a product referral.
(- on the contrary, the urban retailers have to make an effort to adopt
relationship marketing.
- His customers base comprises largely the mobile service class prone to
shift residence at least once, if not more, in less than a decade. This
limits the time span and perspective of the retailer – customer
relationship.)

V. HARBINGER OF CHANGE
  In an environment relatively isolated from external developments, he has
been harbinger of change.
 He is one of the main sources of information and opinion as well as
supplier of product and services.

(As against this, we find urban retailer, wielding limited influence in changing the
product choices and quality of life of consumers.)

3. Vans

Mobile vans long since, have an important place in distribution and promotion
of the products in villages.

JK Dairy launched whitener ‘Dairy Top’ in small 50 gm sachets priced at Rs.

6.50. It decided to make a concerted foray into rural India in 1996. It hired vans to
penetrate the rural interior, each van traveling around 125 km a day, 25 days a
month.

4. Weekly Haats, Bazaars, Shandies

The haats are the oldest outlets to purchase household goods and for trade. These markets are
very well organized with shopkeepers having pre-assigned spaces for them to sell their
wares. A typical market is in an open field with ample space for displaying all sorts of goods.
Its location changes every week. These markets have different names in different regions.
But they are strikingly similar in what they sell. It is reported that there are, in all, about
47,000 haats held throughout the country.

Media Vehicles

Through the rural markets offer big attractions to the marketers, one of the most
important questions frequently asked is “How do we reach the large rural population through
different media and methods?
Mass Media Local Media Personalized Media
Radio Haats, Melas, Fairs Direct Communication
Cinema Wall Paintings Dealers
Press Hoardings Sales Persons
TV Leaflets Researchers
Video Vans
Folk Media
Animal Parade
Transit Media

 Formal media

It includes Press and print, TV, Cinema, Radio, and Point of purchase and Outdoor
advertisement. Reach of formal media is low in rural households (Print: 18%, TV: 27%, Cinema:
30%, and Radio: 37%) and therefore the marketer has to consider the following points:

 Newspapers and magazines:

English newspapers and magazines have negligible circulation in rural areas. However local
language newspapers and magazines are becoming popular among educated facilities in rural
areas. Examples: Newspapers: Eenadu in A.P., Dina Thanthi in Tamil Nadu, Punjab Kesari
in the North, Loksatta in Maharashtra and Tamil magazine Kumudam are very popular in
rural areas.
 Television:

It has made a great impact and large audience has been exposed to this medium. HLL has
been using TV to communicate with the rural masses. Lifebuoy, Lux, Nihar oil etc are some
of the products advertised via television. Regional TV channels have become very popular
especially in Southern states. Examples: SUN TV is very popular even in rural areas in Tamil
Nadu and Asianet is a preferred regional channel in Kerala. Many consumer goods
companies and fertilizer companies are using these TV channels to reach the rural customer.

 Radio:

Radio reaches large population in rural areas at a relatively low cost. Example: Colgate, Jyoti
Labs, Zandu Balm, Zuari industries are some of the companies using radio communication
programme. There are specific programmes for farmers like Farm and Home/Krishi Darshan
in regional languages. The farmers have a habit of listening to regional news/agricultural
news in the morning and the late evening. The advertisement has to be released during this
time to get maximum coverage in rural areas. Another advantage is that the radio commercial
can be prepared at short notice to meet the changing needs of the rural folk. Example:
Release of a pesticide ad at the time of outbreak of a pest or disease in crops.

 Cinema:

About 65% of the earnings from cinema are from rural markets. Film viewing habits is high
in certain states like Tamil Nadu, Karnataka and Andhra Pradesh. Village theatres do roaring
business during festivals by having four shows per day. The monthly charge for showing an
ad film is within Rs.500. Local distributor or dealer who has good contacts with cinema
houses in villages can easily monitor this activity. Examples: Films on products like Vicks,
Lifebuoy and SPIC fertilizers are shown in rural cinema halls. Apart from films, Ad slides
can also be screened in village theatres.

 Outdoor advertisements:

This form of media, which includes signboards, wall painting, hoarding, tree boards, bus
boards, dealer boards, product display boards etc, is cost effective in rural areas. Symbols,
pictures and colours should be used in POPs meant for rural markets so that they can easily
identify the products. Generally rural people prefer bright colours and the marketer should
Utilize such cues.

 Point of purchase:

Display of hangings, festoons and product packs in the shops will catch the attention of
prospective buyers. However a clutter of such POP materials of competing companies will
not have the desired effect and is to be avoided.

 Direct mail advertising:

It is a way of passing on information relating to goods or services for sale, directly to

potential customers through the medium of post. It is a medium employed by the advertiser
to bring in a personal touch. In cities lot of junk mail is received by all of us and very often
 such mails are thrown into the dustbin whereas a villager get very few letters and he is
receptive to such mailers.

 Wall paintings:

It is an effective and economical medium for communication in rural areas, since it stays
there for a long time depending upon the weather conditions. The cost of painting one square
foot area is just Rs.10. Retailers welcome painting of their shops so that the shop will look
better. Walls of farm houses, shops and schools are ideal places for painting and the company
need not have to pay any rent for the same. The walls have to be painted at least one or two
feet from ground level. It is better to take permission of the owner. Very often the owner
takes responsibility for taking care of the wall painting. Painting to be avoided during
election time and rainy season. The matter should be in the form of pictures, slogans for
catching the attention of people. Companies marketing TV, fans, branded coffee/tea,
toothpaste, pesticides, fertilizers etc. use wall painting as promotion medium in rural areas.

 Tree boards:

These are painted boards of about two square feet in dimension having the picture or name or
slogan of the product painted on it. The cost of such a painted board is about Rs.80. These boards
are fixed to the trees on both sides of the village road at a height of about 10 feet from ground
level. These boards attract the attention of slow moving vehicles like cycles, bullock carts and
tractors and people walking on the road. Considering the poor condition of roads, even the buses
move at slow speed through village road. Fertilizer and pesticide companies in rural areas
extensively use tree boards. These are low priced promotion items and can be used by consumer
goods companies too.

 Informal/Rural specific media

These media with effective reach and personalized communication will help in realizing the
promotional objectives. Companies to suit the specific requirements of rural communication
are using a variety of such media effectively and some of the more important media and
methods are given below.

 Farm-to-Farm/House-to-House visit:

Rural people prefer face-to-face communication and farm visits facilitate two-way
communication. The advantage is that the sales person can understand the needs and wants of
the rural customer by directly discussing with him and answer his queries on products and
services. Potential customers in the village are identified and the company’s/distributor’s
representative makes farm-to-farm visits and highlight the benefits of the products. The
person carries with him literature in local language and also samples of products. The person
does not sell the product but only promotes the use of the product. Very often the local dealer
also joins the representative in making farm-to-farm visits. The dealer clarifies the terms and
conditions of sale and also makes independent follow up visits for securing orders. Example:
This approach has been found to be very effective for agricultural machinery, animal health
products and agricultural inputs. Many LIC agents and companies dealing with high value
consumer durables have tried this method with success in rich rural areas.
  Group meeting:

Group meetings of rural customers as well as prospects are an important part of interpersonal
media. The company is able to pass on the message regarding benefits of the products to a large
number of customers through such meetings. Group meeting of key customers are conducted by
banks, agricultural inputs and machinery companies in rural areas. The bankers visit an identified
village, get the village people in a common place and explain the various schemes to the
villagers. Such meetings could be organized in prosperous villages for promoting consumer
durables and two wheelers also. Example: MRF Tyres conduct tractor owners meet in villages to
discuss repairs and maintenance of tractors.

 Opinion leaders:

Villagers place more emphasis on the experience of others who have used a
product/brand to make purchase decision. Opinion leader is a person who is considered to be
knowledgeable and is consulted by others and his advice is normally followed. Such opinion
leaders could be big landlords, bank official, panchayath-president, teachers, extension workers
etc. Examples: a) Mahindra Tractors use bankers as opinion leaders for their product. b) Asian
Paints promoted its Utsav brand of paint by painting the village Sarpanch’s house a few months
prior to the launch if the branch to demonstrate that the paint does not peel off.

 The Melas:
Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may be held
only for a day or may extend over a week. Many companies have come out with creative ideas
for participating in such melas. Examples: a) Britannia promotes Tiger Brand Biscuits through
melas. b) The mahakumbh at Allahabad is the biggest mela in India. HLL has put up 14 stalls in
the mela grounds for promoting Lifebuoy. Handcarts have been deployed for increasing access.

 The Haats:

Traditionally on certain days of week, both the sellers and buyers meet in the village to buy and
sell goods and services. These are the haats that are being held regularly in all rural areas. The
sellers arrive in the morning in the haat and remain till late in the evening. Next day they move to
another haat. The reason being that in villages the wages are paid on weekly basis and haat is
conducted on the day when the villages get their wages. For the marketer, the haat can be an
ideal platform for advertising and selling of goods. By participating in haats and melas, the
company can not only promote and sell the products but also understand the shared values,
beliefs and perceptions of rural customers that influence his buying behaviour.

 Folk dances:

These are well-appreciated form of entertainment available to the village people. The folk
dance “Kuravan Kurathi” is popular in Tamil Nadu. The troupe consists of dancers,
drummers and musicians and they move in a well-decorated van from one village to another
village singing and dancing. In a day the troupe covers about 8-10 villages. As soon as the
van reaches a village, film songs are played to attract the attention of the villages. This is
followed by folk dances. Mike announcement is made about the company’s products and
leaflets are distributed. After the dance programme, queries, if any, about the products are
answered by the sales person. Folk dance programme costs about Rs.5000 per day and
therefore these programmes are conducted during the peak season in selected villages.
 Examples: Fertilizer and pesticide companies organize folk dance programmes during peak
season in selected markets. Thumps Up has sponsored Lavnis, the folk dance programme of
Maharashtra and over 30 programmes have been arranged in selected rural markets.

 Audio Visual Publicity Vans (AVP Vans):

AV unit is one of the effective tools for rural communication. The van is a mobile promotion
station having facilities for screening films slides and mike publicity. The sales person makes a
brief talk about situation in the village, the products and the benefits. The ad film is screened
along with some popular film shots and this continues for about 30 minutes. At the end of the
film show, he distributes handbills and answers queries of the customers. The whole operation
takes about 1-2 hours depending upon the products under promotion, number of participants in
the meeting and time taken for question and answers. The vans move to the next village for the
second show. The cost of running a fully equipped AVP unit is about Rs.4000 per day and AVP
van operation has to be considered as an investment for business development in rural areas.
Example: Companies such as HLL, Colgate, and Phillips have made effective use of AVP vans
for popularizing their products in rural areas.

 Product display contests:

Package is an integral part of the product. Its main purpose is to protect the product during
transit, to preserve the quality and to avoid any loss in quality and quantity. The main purpose of
this contest is to remind the customer to buy the product as soon as he enters the shop. Another
objective is to influence the dealer to stock the product and support the company in increasing
the sales. The display contest has to be announced well in advance and promotional materials to
be distributed to all the selected dealers in a geographical area. Prizes for best displays are
announced to motivate the dealers; the contest lasts for about a month. A well-planned product
display contest not only increases the involvement of dealers in the company’s products but also
increases the sales during the contest period. This is used for promoting consumer goods such as
shampoos, soaps and toothpaste.

 Field demonstration:

This is based on the extension principle “seeing is believing” and is one of the most effective
methods to show the superiority of the company’s products to the customers. A progressive
farmer who is an opinion leader is selected and the demonstration is conducted in his field in the
presence of a group of farmers in the village. The farmers observe the results in the field and the
local dealer calls on them in their farms and persuades them to buy the particular brand of
pesticide or fertilizer. Examples: a) Spraying a particular brand of an insecticide against insect
pests and showing the farmer how effectively the insects are controlled. b) Demonstrating the
use of tractor/implements for different agricultural operations. c) Hawkins pressure cooker has
demonstration representatives who carry out demos in rural households. The representative
receives 1% commission for every customer who approaches the dealer via demonstrations. e)
Similarly effectiveness of detergents, pressure cookers, vaccum cleaners and mosquito coils
could be promoted by demonstrations in selected markets.

 Field days:
These are extension of field demonstrations. One of the main objectives of following modern
agricultural practices is to increase the yield. The company organizes demonstrations in a piece
of land belonging to progressive farmers. All the fertilizers, pesticides, nutrients etc. are applied
after making field observations. Just before harvest, all the important farmers are invited to see
demonstration plot and see for themselves how the yields are better in the plot compared to other
fields. Field demonstrations/field days consume lot of time and efforts and therefore have to be
planned well.

 Information centers:

They provide latest information on cultivation of crops, fertilizer application, weed, management
and control of pests and diseases. Experienced agricultural graduates who make frequent visits to
the field and
advice farmers on modern agricultural practices manage the centers. They also provide
information on farm implements, seeds, fertilizers, pesticides, diesel engines, sprayers and
tractors etc. Many consumer goods companies have opened show rooms in prosperous rural
areas. Example: Hero Honda has opened extension counters with show room facilities in major
rural markets.

 Life-style marketing:

Each rural market segment has certain special features i.e. they share common life-style traits.
They include village sports, religious events, prominent personalities and role models. Examples:
Textile mills maintaining community gardens, Mineral water companies supplying clean
drinking water during summer festivals in villages and Consumer goods companies sponsoring
Kabaddi.

Choosing media vehicles

The choice of different media vehicles for any market is based on an analysis of the standard
features like: reach, frequency, cost & availability. Depending on the factor of reach &
frequency, the different media can be classified into the following categories. This categorization
can help the marketer to make a decision about which type of media would be more suitable to
the product & the organization.
(a) High reach High frequency
• Jeep based advertising
• Wall painting
• Bus stand & bus panels
• Haats
• Hoardings
• Postal branding
(b) Low reach High frequency
• Co-operative notice board
• Shop front painting
• Tin plating – house
• Dealer boards
• Village boards
• Well tiles
• Calendars/labels
(c) High reach Low frequency
• Van based advertising
• Melas
• Direct to home
• Folklore group
• Exhibitions/created events
(d) Low reach Low frequency
• Tin painting – tree/shops
 • Leaflets
• Posters & banners
• Streamers
• Danglers

COMMUNICATING TO RURAL CONSUMER IS ONE

OF THE BIGGEST CHALLEGES FOR ANY MARKETER
REASONS :

1. consumers spread over the entire country.

further compounded by the fact that most of the consumers are not tuned to the mass
media.

2. heterogeneity of the market.

variations occur by geography , demography , language , culture level of involvement .

to grapple with this problem the marketer has to,

1) Identify geographical locations with a high concentration of rural consumer.

Example : in up 27% of the villages account for 71% of the population.

2) Locate potential consumers with high propensity to spend

Example : villages of western Maharashtra are more prosperous than those who reside in
vidharba western up more prosperous than eastern up.

3) Localize decisions on media & message using region specific budget.

Example : advertize should be molded to suit regional requirements. promotion budgets to be

distributed among regional offices on the basis of past & expected sales .this amount will be then
be utilized in conformity with local market conditions to create maximum synergy with sale &
distribution spread.

haats & melas present this opportunity. Information seeking & processing behaviour of the rural
consumer influence media & message many a times the rural consumer may not recieve the
intended message for any of the following reasons.

1. consumer may not notice the stimuli provided in the advertisement

2. message is wrongly interpreted .
3. consumer retains only part of the message.

Comprehension of message a critical problem in Indian rural markets.

ex : following study was carried out on comprehension of communication near Udaipur.

media used : posters / leaflets / film / radio programs.

message related to

1) issues on rat control

2)spraying of urea solution on wheat crop &

3)poultry farming.

respondents : 80 farmers

observation :

message is either not recd or distorted.

drawing of the cynide pump was taken to be a bicycle pump.

rat was not understood to be dead

a beautifully made film about a fertilizer spray was wrongly understood as a process for pest
control before we go to the communication strategies we need to know the rural consumer
phyche.

1)for any consumer the buying process includes a shift from

a)state of awareness

b)knowledge

c)conviction ,

which results in purchase.

ex : case study on fertilizers

efforts were to create awareness of the product

generate interest

followed by imparting knowledge .

agricultural officers educated farmers about fertilizers and explained the benefits.

conviction was related by demonstrating the use of fertilizers in selected plots .

2)involvement level : very high in case of consumer durables like refrigerator / tvs.

he seeks more info about the product to reduce the risk of purchase.

willing to spend time & effort in making purchase decision.

low involvement in case of consumer non durables like salt

ex: in rural market sewing machine is a high involvement purchase. usha intl started tailoring
schools to educate & promote its sewing machines.

on the other hand nirma promoted its detergents thru television.

communication strategies :

1)launch of a new non durable product :

consumer not aware of the product & its usage.

marketer has to create awareness of the product & induce its trial.

sampling & demonstrations are the methods to educate a customer.

ex : shampoo was promoted by demonstrating the application of shampoo.

people queued up to have their hair shampooed. it was helpful to instruct the rural consumer in
the use and benefits of shampoo encourageing them to maintain clean & healthy hair.

in certain cases it converted the consumer from using bath soaps and other traditional methods.

case study : recollect the case study on the laucnch of cigarettes by imperial tobacco .

2)launch of a non durable brand

consumers are aware of the product.loyalty to existing brand among rural consumers is generally
very high.

harp on the usp of the product.create awareness of the product and induce trial .

get the retailers to push your product by offering attractive margins & incentives.

case study : nirma vs wheel of hll..

market : around jamshedpur.

nirma was an early entrant. it entered the rural market without any strong distn network.

what did the trick was the catchy advertisement . it created a demand pull in the market.

wheel was a late entrant. strategy was easy on hands. (usp). very soon it created a dent in the
market share of nirma thru better availability (distn network was in place)and creating a
perception about quality.

3)communication for an existing non durable brand.

major focus is on reminder advertising , servicing the rural retailer & sales promotion.

ex : colgate palmolive uses supply vans to service the retailer and uses van for promotion. it
offers free sample & screens video films on oral hygiene during the visits.

4)communication for launch of a new durable

consumer becomes aware during the launch of the durable. interest is further generated when he
hears neighbours & friends discuss the new product.

on his own tries to learn more abt the product and on the advice of others decides on the
purchase.

decision to purchase the product ,model,type is made by the consumer after deliberating with the
retailer & other users.

demonstrations & identifying opinion leaders for focussed communication are critical in such
situations.

ex : arvind mills promoted ruf & tuf jeans to rural markets. promotion efforts included teahing
tailors in village sto stitch jeans.tailors r opinion leaders for clothing .became votaries for jeans
and for ruf & tuf brands.

usha intl ran sewing schools in villages to offer short term courses for women. creates excitement
around the product and demonstarates utility.educates consumer on its use and builds confidence
with potential buyers.

5)launch of a durable brand

marketer has 2 invest time & effort to break into such markets.

product needs to have demonstratable advantage over other competitive products.

ex : m&m 25 hp tractors. creates brand acceptance thru awareness,interest,knowledge &

persuasion.

*** recollect the case study . blue revolution

6)communication for existing durable brand

performance of the existing brand is very impt 4 consumer who is using the product & keen to
replace it.

loyalty is high if the consumer is satisfied with the existing brand.

very impt 4 marketer to maintain image by offering timely service & thereby ensuring customer
satisfaction.

harp on advantage of the brand over the competitors.

necessary 4 consumers 2 percieve that their choice of brand is correct.

ex: eicher : highlights fuel efficiency . supplemented with the emotional route to appeal rural
consumer.

oranises tug of war contests between its own tractors & those of its rival cos at the pushkar mela
in rajasthan.

as audience cheers , eicher wins the contest.

message effectiveness :-

message decision has to take into account the following factors

1)language , culture, religion, festivals & local sentiments of the rural area

dabur : ramcharitra manas , hanuman chalisa , calenders with religious themes .

rural specific messages : ngos recount stories of advts that confuse & scandalise viewers .

halo shampoo : ad features models with beautiful , bouncy hair .

women folk in rural udaipur took offence to the ad as it is considered indecent for women to let
down their hair in public.

strepsils ad says bahut mazaa aaya .

in their dialect the word mazaa has a strong sexual connotation and they could not understand
how anyone could get corporeal pleasure from a cough lozenge .

2)simple & comprehensible presentation :-

case study : market survey on pesticides

all the material released by pesticide companies identify the pests by their english & academic
nomenclature.

generic names r used 4 pesticides which r again in english which r very difficult to pronounce .

ex : monocrotophos

brand name nuvacron

formulation strength , dosage , product form , varying %ges of technical material content
compounds the situation further.

entire exercise complicated .mktg people were are still not able to communicate effectively with
the farmer .

results in improper selection of pesticides , recommended dosages are not being used .farmer
blames the fertilizer manuf. for the ineffective treatment.

introduced simple symbols : star / crescent.

4)language , signs, symbols and pictorial presentations :

design of the product, packaging , size shape & color helps create a strong image of the brand in
the mind of the customer.

savvy marketer uses signs and symbols the villager can identify with to successfully market his
product.

5)utilitarian message :-

rural.consumer prefer utilitarian messages that link benefit to product attribute over value
expressive advts.

case study :

1st advt shown was of a detergent soap bar which promised xtra whiteness thru extra foam.

2nd advt showed a mother & child in dazzaling white clothes askng the viewer whether he /she
used the detergent bar like they did.

63% of the respondents preferred the brand which promised xtra whiteness thru xtra foam .

sometimes multiple claims in an advt appear to create favourable attitudes , though viewers do
not necessarily comprehend all claims.

study:-

mosquito repellent coils with the single claim of ‘delivering good night’s sleep ‘ and another ad
with multiple claims like it drives away flies ,mosquitoes and spread pleasant perfume.

noticed that 40% of the respondents recalled claims made in multiple claims advt , 90% preferred
brand which supports multiple claims.

6)narrative mssge :-
use of stories for promotion of products is common approach

castrol has a 20 min movie with the brand name of lubricants portrayed as characters in the
movie.

7)source of message :

likeable source : -

testimonial advt using film & sports stars hve been quite successful .

ex : lux

ex : rajdoot motor cycle sales dipped from 85000 bikes to 76000 in 1987.percieved to be a
rugged bike , easily manoevrable on rural tracks and hvng abilty to carry heavy loads.

used dharmendra who represented son of the soil image.advt resulted in sale scrossing 1 lac
pieces in 1990.

trustworthy source : -

ru markts depend on word of mouth commn.most important interpersonal source was the person
who possessed the product.

expert source :-

credibility of the source more impt than the attractiveness of a source.

study :-

60 respondents from 3 villages exposed to 2 advts for motorcycles.

one recommende by kapil dev and the other by an engineer.

67% of the respondents preferred a brand endorsed by the engineer.

8)context associations :

associations create interests.

a)products to be of interest to consumers

recall of advts on products of relevance to the rural audience was higher when compared with the
recall for the same products by urban consumers

fertilizer and pesticide advts had far higher recall in rural areas.

b)relevant environment

advts with urban settings or those that are far removed from their daily life do not find favour
with ru cons as they are unable to relate to such presentation.

*** recollect the example cited on the 2 bicycle ad .

reach of the media in rural markets

influence of audience profile and behaviour on the effectiveness of media

non conventional media and their impact in rural markets.

media reach.

compared to urban areas the reach of terrestrial television & satellite television is less in rural
areas.

advantages of advt’ng in tv : lowest cost per thousand and is therefore attractive to fmcg.

disadvt : absence of focus on consumer segments .

non seperation of urban & rural audiences.

radio has urban & rural audience

vividh bharathi & news popular with rural audience.

press has ltd reach in rural areas barring kerala which has a reach of 65%.

use of outdoor media is very relevant in rural areas . options available include wall paintings ,
posters , hoardings , use of space in hand pumps.
no benchmark for pricing and quality usually suffers in bargain for rates.

factors that influence media effectiveness :-

1)audience profile : upmarket rural audience exposed to mass media .

youngsters r the majority viewers of television.

2)media preferences :

rural.cons in high income category are more receptive to mass media.

traditional media are more effective with av ru audience which is less cosmopolitan and have a
lower income.

3)channels & programmes viewed :-

rural viewer does not switch channels.brand loyalty to a programme is fairly high.this is
influenced by the prescence of large no of b/w tvs and low priced tv sets that hve ltd channels.

dd1 is the channel with maxn viewership.(rangoli , hindi films )

it has been observed that a large no of rural audience do not fully comprehend the main theme.

a fairly large no of them feel advertisements not related to their world and do not view them
favourably.

a study on audience response to commercials was conducted in purulia , erode and kheda.
findings.

< 35 yrs watch more television.

70-80% are males

30-40% illiterate

majority were farmers or land labourers.

more than 60% watch national programs

in south and north chitrahaar & films are very popular.

in south news programs are very popular.

60% understand the stimuli provided / main theme.

20% remember only the visuals and do not comprehend meaning

12% understood words .

programs in english understood by minority.

26% do not like advt slots between programs.the visuals show a different world and they are not
able to identify with them. whereas 70% like advts slots between programs.

in purulia 15% felt the attire depicted vulgar.

erode 10% felt so.

with respect to toiletry items proximity to urban areas inluenced purchases.

4)audience behaviour :-

a)tv viewing behaviour :-

tv in ru mkt means doordarshan.

rural routine is not dominated by clock.

prime time tv program – 20-30 mn before switch on the tv.

10 min b4 prime time there is a switch over to national network.

advt rates are relatively low and can bring the same amt of mileage as prime time advtsg does.

b)radio listening:-

vividh bharathi, farm news , samachar and film music very popular.

sponsor has to exercise care in the media and its usage as otherwise the message is unlikely to be
hear among target audience .

tractor jinle at 11.00 pm hardly has any rural audience and is of little advantage to the advertiser.

c)access to news papers.:-

feeder markets or small towns or in shops or roadside hotels.

people sometimes buy from one of these place and take them home where others read .
newspapers also read at common gatherings.

audience response to media :-

a)recall by media

b)influence on attitude

more than tv exposure , proximity to urban areas was instrumental in changing rural habits.

in many cases the retailers were major influencing factors in ourchase of soaps.

kavi sammelans and puppet shows hold sway over rural audience.

traditional media like dramas meet all intellectual ,emotional & aesthetic needs of the villagers.

non conventional media

wall paintings

direct mail

banners placed on elephants parading thru main bazaars.

puppetry

audio visual vans

demonstration and sampling at haats and fairs.

contests to promote products.

non conventional ideas impt from the following communication objetives.

1)reach

2)ability to generate interest

3)create product or brand knowledge .

4)educate and persuade

1. media for effective reach :

ex :wall paintings – low cost option – create only visual impact as

 literacy is low.ex-nirma.

mailing campaign –useful with opinion leaders , influencing agencies and agents of
change.

copy should be brief but well illustrated.

2. media that generates interest in the audience.

puppets / drama / animals.

medium of message should help in attracting attention.

message on animals : camel race in pushkar rajasthan. each camel displays different colors. some
have the blue of rin , green of wheel,white of h.b a strong vet medicine from indian herbs.

message on objects : hll used to station a giant lifebouy boat at alwaye during the onam festival’s
boat race in kerala

colgate pal used to splash its names on kites during kite festival in gujarat.

spic would sponsor bull fights in tamilnadu.

3)media that creates product or brand knowledge :-

processions and tableaus , contests, audio visual vans , pop channels.

hll dressess up the propagandist as ‘superman’ to demonstrate the super washing power of rin.

philips organises shouting matches . the person who can shout philips name the loudest wins.the
contest makes a clear asociation between the company’s audio equip & loudness.

4)educating and persuading a ruralconsumer.

demonstration ,sampling, interactive comm at points of contacts.

demonstation and sampling to build brand preference :

asian paints - pola fair maharahtra. apply sampling strategy.

did not hand out trial tins of paint to consumers.

zeroed in on the bullock cart race.

owners paint the horns with bright colours of asian paints. handed only 100-200gms samples as
opposed to 1kg tin with the mascot conspicuously printed on the packing.
interactive media. :

points of contact with rural audience – fairs, haats, mandis , folk performances, special events in
banks , p.o , schools .

contests involving consumers can b interactive and help create awareness, knowledge and trial.

ex: building tower stacks with cigarette packets or locating buried treasure. entry ticket is a pack
of cigarette , so the game provides a good method for inducing trial.

stalls at local fairs can also be interactive. brooke bond adopts tea stalls that tempt villages to
sample its products by offering free cups of tea. geoffery manners participates in village melas ,
where its salesmen who r dressed in white aprons resembling doctors extol the virtues of anacin.

emerging non conventional media.

van is festooned with banner or painted in gay colours.

audio visual van – colgate.

Conclusion

Thus looking at the challenges and the opportunities which rural markets offer to the marketers it
can be said that the future is very promising for those who can understand the dynamics of rural
markets and exploit them to their best advantage. A radical change in attitudes of marketers
towards the vibrant and burgeoning rural markets is called for, so they can successfully impress
on the 230 million rural consumers spread over approximately six hundred thousand villages in
rural India.
The rural market is very large in compare to the urban market as well as it is more challenging
market. The consumer wants those products which are long lasting, good, easy to use and
cheaper. The income level of rural consumers is not as high as the income level of urban
consumers that’s why they want low price goods. It is one of the reasons that the sell of sachet is
much larger in the rural area in all segments.
It is necessary for all the major companies to provide those products which are easy to available
and affordable to the consumers. It is right that the profit margin is very low in the FMCG
products, but at the same time the market size is much large in the rural area. The companies can
reduce their prices by cutting the costs on the packaging because the rural consumers don’t need
attractive packaging. Application of 4A* is also a major task for the major companies in this
area.
Rural market has an untapped potential like rain but it is different from the urban market so it
requires the different marketing strategies and marketer has to meet the challenges to be
successful in rural market.