Indias way is not Europes. India is not Calcutta and Bombay.

ombay. India Lives in its seven hundred thousand Villages

Mahatma Gandhi

Rural India contributes.

70% of Indian Population . 56% of Indian Income 46% of Indian Expenditure 33%of Indian Saving

Some Myth About Rural India

Rural India is all about agriculture .

Less than 50% of the population in agriculture.

Rural income is mainly come from agriculture thus uncertain

Only 41% of the rural income comes from agriculture

Rural growth is slow ,investment gives late results

Rural markets showed 25% of growth in consumer durables, whereas urban markets showed only 8 to 10 % of growth.

How Is Rural Market Different From Urban Market

India

Bharat

Modern out look: Old custom s and traditional cultural values have faded Level of literacy: High level of literacy Communication and infrastructure facilities: All major facilities are available to the urban customer Higher per capita Income: 65% of gross domestic product produced is shared by 30% of population.

Traditional out look: It values old customs and traditions. Cultural values have not yet faded Level of literacy: Low level of literacy Communication and infrastructure facilities: Facilities like roads, warehouses, communication systems and financial facilities are inadequate in rural India which makes distribution costly . Low per capita Income: 35% of gross domestic product produced is shared by 70% of population.

Approaches to Rural Marketing

Affordability

Acceptability

Rural Marketin g

Availability

Awareness

Rural Marketing Mix

Retailer Packaging Product, Price, Place Promotion
Education Empowerment
Customization

Product level
Potential

Urban Customer Demand

Core Basic Expected Augmented

Augmented Expected

Rural Consumer Demands

Core Basic Expected(Sometime )

Basic

Core

Example: Shampoo

Consumer Behaviour
Status Seeking Customer Budget Conscious Customer

Brand Model

Budget Warranty After Sales Service Brand Name Model

Technology
Image Budget

Consumer Behaviour
Status Seeking Customer Budget Conscious Customer

Brand Model

Budget Warranty After Sales Service Brand Name Model

Rural Consumer

Technology
Image Budget

The pull of the market.

Aspiration Media Penetration What is Changing? Infrastructure Deposable Income

Realising the potential..

Brands fail in India, but are hit in Bharat

Some brands which have done better in the rural market than the urban market, for example:

The Future is bright..

HUL Project Shakti

Back

Packaging

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Yaara da tashan..