Understanding Rural Economy &
Marketing to Rural Consumers
Guide: Dr. Sanjay Pal
by: Animesh Gadennavar
2016 – 2018
assessment of innovative approaches used by companies in Indian rural markets.
Indian rural market
There are two way of
marketing process in rural marketing. There is inflow as well as outflow of
products for production or consumption in rural and urban markets.
In past few years rural
market had been grown steadily and now urban market is smaller than rural
market. Around 72 per cent population of India are in villages. Around 80 crore
people live in rural area of India. The marketer’s slogan is now ‘Go Rural’.
Domestic marketers as well international market, such as Hindustan lever, Colgate
– Palmolive, godrej focused majorly on domestic markets or rural markets of the
opportunities for marketers where rural markets delivering a promising
outcomes, it can be a revolution for those who understand the market dynamics
of rural markets and have advantage over their best efforts Product
Colgate – Palmolive
trusted brand ‘Colgate’ had been voted and also ranked India’s 1st
most trusted and 4th time in the brand equity. “A.C Nielsen 2007
is the Only Brand to be ranked at within top 3 in all the 6 surveys conducted
was Only one to retain the premier position across categories for 4 years consecutively.
purchasing power lies 50 % of total GDP of India.
roads are connected to villages is only at 60%
Give better training facilities to
independent trades to explore deeper
500 ex volunteers were selected by MART
for company promotion
All facilities were provided to
volunteers like (storages space, t-shirts, cycle, etc)
Volunteer’s purchases stock from nearby
and sells at nearby by melas, Haats and villages outlets on the way.
There is sales of average 1000Rs Per day
Nearly 46,000 haats
were covered by Disha, – the unorganized periodic markets ( market size – US 1
billions) of the conventional cost by unemployed youth in India.
Number of villages
covered increased up to 4,600 in Dec 2007
4A’s concept adapted by
Colgate to attract Rural India
They try to place the new (innovative)
toothpaste of different brands under the shelter of Colgate Palmolive
Concentrating towards the upper rural
and consuming class by indulging the development of “Colgate Ayurveda
Smaller packets were being introduced in
the form of sachets and being positioned for the villagers who buy in smaller
the toothbrushes for different age groups.
Eg 2 they came up with
a special segments for kid under the age of 4-10 years
Keeping in mind the affordability factor
they fix the price at the lower side as the people are price conscious.
They offer value and quantity to their consumers
keeping the price range as low as possible and accordance with their
To be the market leader they have
adopted the strategies of market penetration pricing.
950 direct accounts were being created.
3.67 million Retail outlets were opening
Second most widely distributed product
in the country.
The company is trying to crack the deal
with initiatives like E-chopal and Disha to further strengthen and enhance its
In 1998, Colgate contacted 6,000,000 people
in 21,000 villages.
We observe that the markets in rural
areas are made not particularly found anywhere in the domestic regions of the
A marketer with the forte in marketing
skills will excel in such a market as promotions are the biggest obstacle for
them in the rural markets
Due to presence of many languages,
cultures and lifestyles the marketers need to be well prepared and need to
observe the change around the country and need to develop the skills for better
We need to have international standards
but need the desi tadka (traditional) ways to operate in such areas, ” think
globally and act locally”
piece of the pie.
limited time strategies.
share is constrained because of the nearness of other solid FMCG Brand
Brands are provided under their image names
provincial market and increment infiltration in same
markets may pull in business
methodology is required
in item costs.
participants in the market can be a danger to Colgate
The Colgate Company has
actualized this technique by growing its business in more than 200 nations. The
organization does not showcase a similar item in each nation. For example, in
United States they are offering sixteen unique kinds of toothpastes while in
UK; they are offering twenty two distinct sorts of assortments.
The Company caters the
market fragment in view of various socioeconomics, for example, age, sexual
orientation, social class and so forth. For kids matured 8-10, they have items
like transitional toothpastes. They have a different area for babies,
youngsters, adolescents and grown-ups.
Here the organization
offers the items thinking about the way of life and requirements of the
customers. For individuals who are touchy about their teeth, they have
presented Sensitive master help toothpaste and brushes which are made to
diminish tooth affectability issues.
The founder of the
organization Dr. Karsanbhai khodidas patel was born in 1945, in Ruppur town in
north Gujarat in a group of agriculturists.
He graduated in
Chemistry at 21 years old. At first, he filled in as a lab professional and
later served the state government. In 1969 at the of 24, he began fabricating
phosphate free detergent powder, Nirma (Named after his little girl Nirupama)
in his patio.
He committed after
available time for assembling Nirma and sold on his bike while heading off to
his working environment, which was 17km from his home. The high quality
detergent parcels were sold at rs 3 for every kg, which was 33% of the
slightest evaluated prevalent detergents.
At the time local
detergent advertise was restricted just to premium fragment and was overwhelmed
Karansbhai patel began
way to-entryway offering of Nirma and evaluated it at Rs 3 for each kg.
accessible least expensive brand in the market around then Rs13 per kg.
Nirma changed the
entire detergent powder fragment and in a limited capacity to focus time made a
totally new market portion in the local detergent division showcase. It gave
the greater set up brands a keep running for their cash and soon possessed the
best piece of the overall industry.
To add to this Nirma
was made of an imaginative detailing, which worldwide detergent mammoths were
later on constrained to imitate, it was sans phosphate and subsequently
condition well-disposed and the way toward assembling was work escalated, which
offered substantial scale business.
NirmA Division Low-End
Segment, Rural Households (Basically all having a place with base of the
pyramid) ‘Sabki Pasand Nirma’ Focusing on Nirma is spread over a gigantic
market having a great dispersion channel. Low Income and provincial families.
Situating Nirma situated itself as a moderate item between the general
population who couldn’t manage the cost of detergents and for individuals who
were searching for something more sensible.
Distribution Strategy Development
Setting up financially
savvy approaches to get merchandise to India’s country occupants is the basic
initial phase in infiltrating these business sectors. Savvy organizations have
discovered that they have to concentrate on conveyance even before making the
apparently judicious moves of recognizing and moving toward target clients.
utilizing an assortment of methodologies to expand their dispersion systems
into the wide open (see the display “Deals and Distribution Approaches:
Pros and Cons”). The best organizations, however, have embraced a
multipronged approach. The $7 billion combination ITC, for example, has added
three layers to its urban nourishment dissemination arrange, which adjusts to
the regular distributor– stockiest (wholesaler)– retailer display. In
provincial regions with populaces of 10,000 to 20,000, where there’s
satisfactory transportation framework however insufficient request to help a
conventional wholesaler, ITC depends on littler scale sub distributors who
convey a smaller combination of items adapted to nearby tastes.
Occupation: Primarily-Housewives and Working
urban cities in India
Women seeking for a detergent with the
quick and fast stains removal technologies yet affordable
priority for cost-effectiveness was high
Doesn’t have enough patience time-consuming
procedures like soaking clothes overnight and to remove stains on it
brand value created throughout the years
leadership in detergent
effective beginning promoting effort
In 2004, Nirma’s detergent approached 8 lakhs tones –
one of the largest volumes sold in the world- under a single brand
fare advertise when contrasted with global brands
to totally enter in premium portion due to picture
to developing countries
piece of the overall industry in premium portion by propelling variations.
attack from local independent producers
income of Indian can cause shift to premium segment washing powders.
attack from HUL and P