Prasanna M Kashettiwar

FMS/MBA/2018-20/083
Management Game
1.Make a note on current trends, opportunities and challenges in rural marketing, India.
Nature of Rural Marketing:

Answer: Current trends, opportunities and challenges in rural marketing, India are as follows:

 Current Trends: The companies should start 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 asks for value for money
Large population: The Indian rural market with its vast size and demand offers great
opportunity to marketers. Indian rural market is huge in size because rural population
accounts for almost 70% of Indian population, 833 million live in rural India, 33% of rural
population includes youth, number of households increased from 25 to 33 crore.
marketplace by 2025.
Green revolution: The dream of Dr. Swami Nathan, the father tan of the green
transformation on accomplish independence on nourishment grain handling previously,
1995, provided for An major leap forward Previously, nourishment grain generation by the
utilization for exploratory techniques On farming worker. In present, provincial India
generates 299 million tonsil yearly.
Smart phones penetrating into rural India.
Increased level of education and employability of rural youth
Increased purchasing power: Rural purchasing power has grown faster than urban in the
recent years. Rural Indian economy is highly supported by increasing disposable income,
Government initiatives and schemes and favourable demographics. As a result, the rural
segment of the Indian economy is growing at a pace of 8-10% per annum.
 Government Incentives and polices.
Better credit facilities through banks
 Opportunities:
The rural market has been growing gradually over the past few years and is now even bigger
than the urban market. The saving to income percentage in rural area is 30% higher than urban
area. At present 53% of all FMCGs and 59% of consumers durables are being sold in rural area.
Major opportunities available in rural market are as follow:

 Increase in Literacy Rate.

 Increasing in Disposable Income and Purchasing Power.
 Infrastructure Improving Rapidly.
 Increase Population and Hence Increase in Demand
 IT Penetration in Rural India

 Challenges in Rural Marketing:

 Transportation Problems.
 Low literacy level.
 Traditional way of life.
 Communication issues.
 Media for promotions.
 Seasonal demand.
 Distribution problems.
 Cultural factors.
 Inadequate Media Coverage.

CHALLENGES
 Advertising strategies in India

2. Make a note on current trends, opportunities and challenges in rural marketing, International.
Answer: Current trends, opportunities and challenges in rural marketing, International are as follows:
 Current Trends:
 Increase in population and hence increase in demand.
 A marked increase in the rural income due to agrarian prosperity.
 Standard of living is also increasing in rural areas.
 Large inflow of investment for rural development programmes from
 government and other sources.
 Increased contact of rural people with their urban counterparts due to
 development of transport and wide communication network.
 Increase in literacy and educational level and resultant inclination to
 sophisticated lives by the rural folks.
 Inflow of foreign remittances and foreign made goods into rural areas.
 Change in the land tenure systems causing a structural change in the ownership
patterns and consequent changes in the buying behaviour.
 Rural markets are laggards in picking up new products. This will help the
 companies to phase their marketing efforts. This will also help to sell
inventories of products out dated in urban
markets.

 Opportunities:

 Infrastructure is improving rapidly.

- In 50 years only 40% villages connected by road,
in next 10 years another 30%.
- More than 90 % villages electrified, though only
44% rural homes have electric
connections.
 - Rural telephone density has gone up by 300% in the last 10 years; every 1000+
pop is connected by STD.
- Social Indicators have improved a lot between 1981 and 2001
- Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved
(41% to 23%)
- Rural Literacy level improved.
 Low penetration rates in rural so there are many marketing opportunities.
 Marketers can make effective use of the large available infrastructure.

 Challenges: Many of the countries face challenges in Rural Marketing

 Underdeveloped People and Underdeveloped Market.
 Lack of Proper Physical Communication Facilities
 Many Languages and Dialects.
 Media for Rural Communication.
 Vastness and Uneven Spread.
 In some of the countries Low Per Capita Income is bigger problem.
 Logistics, storage, Holding and transport.
 Market Organization and Staff.
 Hierarchy of Markets.

Globally companies that have gone beyond business objectives and incorporated social
objectives in their purpose.

Company/brand Business Social objectives

Alibaba Online portal Organising villages in China to
become producer communities

Bolthouse Farms Fruits and vegetables Encouraging the habit of healthy

General Electric (GE)
Google
Grameen Bank/Bandhan
Bank/Grameen Phone
Machines for medical diagnosis
Digital Services
Banking/Telecom services
snacks
Re-inventing machines to make them
cheaper and portable for rural areas
Internet penetration in villages,
capacity building
Organising people for
microfinance/Cheap telecom services
to villages in Bangladesh

Global Buying Decision

Process in Rural Marketing