Certain facts that strengthen the position of rural India as an economic segment are enlisted hereafterRural India accounts

for around 55 per cent of the manufacturing GDP; rural areas were host to nearly 75 per cent of new factories built in the last decade, and rural factories account for 70 per cent of all new manufacturing jobs. Rural consumption per person has increased by 19 per cent yearly between 2009 and 2012; two percentage points higher than its urban peers. In incremental terms, spending in rural India during this period, increased by US$ 69 billion(4,30,00), significantly higher than US$ 55 billion (3,43,475) by urban populations. HUL strategy HULs decade-old Shakti initiative underwent a technology-overhaul in 2012 wherein about 40, 000 Shakti Ammas were equipped with a basic smartphone. These smartphones had inbuilt software that enabled them to take and bill orders, manage inventory and receive updates on promotional schemes offered by the company. This enhanced their productivity. Reportedly, the Shakti initiative delivers around 20 per cent of Unilevers overall rural sales. Daburs strategy While HUL empowered rural women as Shakti Ammas, Dabur India made rural people use the companys sample products and experience the benefits for themselves. The idea was to spread the awareness about the companys products through the word-of-mouth advertising.

Issues in Rural Marketing The major issues faced by companies are: *Unorganized and dispersed Markets, *Lack of proper infrastructure and other physical communication facilities, *Media for Rural Communication, *Many Languages and Dialects, *Low Per Capita Income, *Low Levels of Literacy, *Availability of duplicate and cheap brands.

Why Rural Market ? 1 2 3 4 Rs 80,194 crore has been allocated to Rural sector Indian Budget 2013-14 74,24,90,639: Population in rural India ( twice of Americas Population) census 75,090 Cr FMCG market nielsen survey expected to be 100bn $ in 2025 19 % : increase in consumption per person i.e 4,30,905 Cr of increase 2009-12 http://www.ibef.org/

About Aazde Gaon The Aazde Gaon comprises of 5 small villages : Aazde Pada, Aazde Gaon, Sudarshan Nagar, Milap Nagar & Sudama nagar Total Population : 24,239 Aazde Gaon population : 9236 No.of houses : 1735 No. of registered shops in main Aazde gaon : 23 Retail shops : 15 approx Market: Types of shops : Small medium size Average foot fall in small type shops : 50-60 Generally Customer buys 2-3 products worth Rs 30-40 on daily basis Average footfall in medium size shops : 150-175 Customers buys 4-5 products worth Rs 100-125 on daily basis Has regular customers buy in bulk

Challenges 1 Improper Distribution: The Distributors dont visit these shops, retailer himself has to go to the wholesaler in the nearby town and has refill his stocks. The retailer has to arrange his own transport for this purpose which incurs him high costs. Due to this reason the shopkeeper refills the stocks of all products together to avoid excess cost on the transport. Suppose shopkeeper refills stocks every 30 days, & if stocks of any particular product gets over in 20 days , now he cannot refill this even if he wants to because it wouldnt be feasible for him to travel to nearby city only for that product. The reason behind distributors not visiting these shops is, a) low order, order must be atleast worth 1000 or above b) location (far from city). Distributors are more focused on completing their targets and hence avoid these shops

Local Competition: Counterfeit Products are a) Cheaper b) Equivalent quality c) More in quantity d) Profitable for retailers e) Provide better services f) Similar in packaging

Why is this competition? a) Consumers Not brand conscious (aware but not conscious) b) Ignorant to the consequences c) Buy what shopkeepers give them

Habbit ; The people are still not habituated of using an antibacterial soaps or antiseptic liquid in rural. The home remedies are prominently used in rural areas (ghar ke nushke ) eg : Even today if asnybody gets a cut/ bruise they would use a turmeric powder as a antiseptic

Viscous circle : Retailers dont keep them because customers dont buy & Customers cannot buy as retailers dont keep them