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    Rural Marketing: "India Is Not Calcutta & Bombay. India Lives in Her Several Hundreds of Villages" - Gandhi

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    Maitry Patel
    Rural markets in India are significant due to 70% of the population living in rural areas. Rural consumers account for 65% of India's population but only 11% of per capita consumption. Several initiatives by FMCG companies have helped increase rural penetration and market share. Project Shakti by HUL and e-Choupal by ITC integrated rural sellers and provided education to farmers, removing middle-men and improving prices. Rural consumers are often characterized by low education, seasonal agriculture-based income, and influence from opinion leaders. However, rural consumers are also brand loyal, value quality, and are open to learning. Product availability in small packs, opinion leaders, and BTL activations have been effective in rural marketing.

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    Rural Marketing: "India Is Not Calcutta & Bombay. India Lives in Her Several Hundreds of Villages" - Gandhi

    Uploaded by

    Maitry Patel
    25 views12 pages
    Rural markets in India are significant due to 70% of the population living in rural areas. Rural consumers account for 65% of India's population but only 11% of per capita consumption. Several initiatives by FMCG companies have helped increase rural penetration and market share. Project Shakti by HUL and e-Choupal by ITC integrated rural sellers and provided education to farmers, removing middle-men and improving prices. Rural consumers are often characterized by low education, seasonal agriculture-based income, and influence from opinion leaders. However, rural consumers are also brand loyal, value quality, and are open to learning. Product availability in small packs, opinion leaders, and BTL activations have been effective in rural marketing.

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    Rural markets in India are significant due to 70% of the population living in rural areas. Rural consumers account for 65% of India's population but only 11% of per capita consumption. Several initiatives by FMCG companies have helped increase rural penetration and market share. Project Shakti by HUL and e-Choupal by ITC integrated rural sellers and provided education to farmers, removing middle-men and improving prices. Rural consumers are often characterized by low education, seasonal agriculture-based income, and influence from opinion leaders. However, rural consumers are also brand loyal, value quality, and are open to learning. Product availability in small packs, opinion leaders, and BTL activations have been effective in rural marketing.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    25 views12 pages

    Rural Marketing: "India Is Not Calcutta & Bombay. India Lives in Her Several Hundreds of Villages" - Gandhi

    Uploaded by

    Maitry Patel
    Rural markets in India are significant due to 70% of the population living in rural areas. Rural consumers account for 65% of India's population but only 11% of per capita consumption. Several initiatives by FMCG companies have helped increase rural penetration and market share. Project Shakti by HUL and e-Choupal by ITC integrated rural sellers and provided education to farmers, removing middle-men and improving prices. Rural consumers are often characterized by low education, seasonal agriculture-based income, and influence from opinion leaders. However, rural consumers are also brand loyal, value quality, and are open to learning. Product availability in small packs, opinion leaders, and BTL activations have been effective in rural marketing.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Rural Marketing

    “India is not Calcutta & Bombay. India lives in her several hundreds of villages” - Gandhi
    Rural-Urban Market Structure
    Rural Urban

    Rural Seller - Rural Buyer Urban Seller - Rural Buyer


    Rural
    All Products Consumer Goods | Services | Agro Inputs

    Rural Seller - Urban Buyer Urban Seller - Urban Buyer


    Urban

    Agricultural Products All Products


    Facts

    70% 65%
    has <1000
    of India population

    6.4L 11%
    Per Capita
    Villages Consumption
    Growth
    Nielsen Survey Sep 2021 - Urban PC Con Gw -9.5%
    Rural Initiatives in FMCG Industry

    Project Shakti - Hindustan Unilever Limited FMCG product sales>

    Forward Integration
    Rural Penetration Increase>

    Mkt Share Increase>

    Project E-Choupal - ITC Farmer crop education

    Backward Integration
    Removed middle-man - Better crop

    Better buying price > Better Margins >


    Rural Consumer -
    Characteristics/Challenges
    Low Education level

    Income - Mainly from Agriculture |


    Seasonal Income (as per crop harvest)

    Influence of opinion leader -


    Mukhiya | Anganwadi Teachers
    Rural Consumer -
    Characteristics/Challenges
    Brand Loyalty

    Getting value for money - Not chep products!

    Consumer is open to learning (Demonstration) -


    As basic as how to apply cream
    Rural Consumer -
    Characteristics/Challenges
    Deprived of Basic Necessities (Electricity|
    Telephone|Infrastructure)

    Many languages & Dialects

    Tradition bound
    Rural Consumer - Myths
    Rural consumers buys low priced products

    Homogeneous Consumer Base

    No Brand Awareness
    Rural Consumption Pattern - Aspirational
    71% buys brands & views them as reliable & trustworthy!

    66% weightage is given to brand image, functionality &


    ashthetics

    55% buys when the need arises - not on occasions.

    27% claimed celebrity endorsement have impact on purchase


    decisions

    51% plan to increase their spend on education & healthcare

    An Acenture Survey across 8 states & 100 focus groups


    What seems to be working
    Product Availability in Low unit - Value Packs

    Opinion Leaders trusting the Category/Brand

    Depth in availability
    (Village Chou pal | Retail Outlets | Fairs | Haats)

    Assets which works - TV | Influencers/Opinion leaders | OBD |


    Radio | Wall Painting
    What seems to be working
    Colour Association in Brands

    Home to Home activation


    (Customer education & Engagement)

    Customer education activations - Insurance | Bank


    Investments/Loans |

    BTL activations during product launches


    Thank You

    Avirup Mukhopadhyay
    Category Lead

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