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Rural markets – a critical review

Rural markets – a critical review

By

Miss P. PIRAKATHEESWARI, a professor of Commerce

Sri Sarada College for Women (Autonomous), Salem – 16

Prime Minister Manmohan Singh spoke of his vision of rural India: "My vision of rural India is a modern agricultural, industrial and services economy co-exist side by side, where people can live in well-equipped villages and easy to make in the Work or on a farm or agricultural economy. There are many things that modern science and technology do to make this vision a reality. Income on the country must be improved. Rural infrastructure must be improved. Health education and rural development must be achieved. Opportunities jobs have be created in rural areas. "

Go Rural "is the motto of the marketing gurus for analyzing the socio-economic changes in the villages. The rural population is nearly three times that the city rural consumers have become the most important target market for consumer goods and food nondurable, construction, electrical, electronics, automotive, banking, insurance and other sectors, more than one hundred percent of agricultural inputs such as seeds, fertilizer, Pesticides and agricultural machinery. The market is in rural India is currently only about Rs eight billion of the total advertising pie of Rs 120 billion EUR, claimed 6.6 percent of the total quota. It is clear, it seems to go a long way. While many spoke of the enormous potential of the unexplored rural market find advertisers and companies It is easier to compete for a piece of the city is already divided.

The success of a brand Indian rural market is as unpredictable as rain. It was already to assess more difficult, the rural market. Many brands have been successful, have failed miserably. Often attribute success happiness of the rural market. Therefore merchants must understand the social dynamics and changes in the attitude of each village at the national level, if they look a model based on the challenges and opportunities of rural markets for suppliers follows, we can say that the future is very promising for those who understand the dynamics of rural markets and use it to their advantage. A radical change in the attitude of providers dynamic markets and increasing rural calls, it can be successful on the 230 million rural Consumers distributed to about six hundred thousand villages in rural India impress.

These rural markets to buy?

Rural India buys small packages as they are, such as price / performance ratio perceived. There is stiffness of the brand when a consumer buys a brand out of habit and not really choice. Brands rarely fight for market share, need only visible to the right place. The high price brands such as foreground, cookies and shampoo Mary Hospital is doing well, because of the depth distribution, many brands are doing well without much advertising support – Ghadi, a brand of detergent in northern India, is one example.

Why the rural market?

Market in rural India has a strong demand base offers great opportunities for advertisers. Two thirds of Indian consumers live in rural areas and almost half of national income generated can be found here. The reasons for leaving in rural areas are very clear. The urban consumer durable market for products like color televisions, washing machines, refrigerators and air conditioners more and more each year between 7 percent and 10 percent.

The rural market zooming about 25 percent. "The rural market is growing faster than urban India now," said Venugopal Dhoot, chairman of the R-989 crore (Rs billion EUR) Videocon Appliances. "The urban market is a market for replacement and grading today," said Director of Samsung, marketing, Ravinder Zutshi.

Reasons for business development in rural areas

  • The changes in the socio-economic Factors (lifestyle, habits and preferences, economic situation)
  • Literacy (25% before independence – more than 65% in 2001)
  • Infrastructure (roads, electricity, media)
  • Increase revenue
  • Increased expectations

MART, Marketing and Consulting Rural Rural Development showed that 53 percent of sales of consumer goods in rural areas, that 59 percent of sales of consumer goods Pradeep Kashyap said the head of the seminar. Two million BSNL mobile connection went to 50 percent in small towns and villages, 20 million subscriptions rediffmail, 60 percent came from small towns, so do half the transactions in Rediff shopping site.

Characteristics of the rural market

In contrast to the urban markets, rural markets are difficult to predict and have special properties. The population is mostly illiterate Fore, have a low income, which is characterized by irregular income, lack of income and monthly fluctuations in revenue flows with the Monsoon.

Rural markets are facing critical problems of distribution, consumer understanding of the communications infrastructure and the rural poor. The seller must strengthen distribution and pricing strategies. The rural consumers expect and value for money, the unstable and low income should have a week, Families with higher incomes and improve the distribution are viable strategies that need to use the adjustment to the market huge potential.

Media coverage is a compelling reason, the penetration of products such as cosmetics, mobile phones, which are only used by the urban population. Increased awareness and to accelerate knowledge of various products and brands demand. The public in most rural areas of crucial importance for the glamorous TV commercials, Opinion leaders and depend, to introduce a product through the use and recommend.

Opinion leaders play an important role in the popularization of products and Impact on the rural markets. Today, the educated youth of the rural population also affects the rural consumers. Rural consumers through the Lifestyle they see on TV influences. Exposure to the outside world and makes them innocent fascinated messages. Scope of mass communication television, especially television influences the buying behavior largely

Branding Rural India

Rural markets are delicately powerful. Some adjustments are necessary to meet the rural masses, have the hope and change for the four parameters product price, promotion and distribution.

Much has been said about the adaptation of the product and its price in terms of packaging, flavors and envelopes, etc., depending on the prices of the economic situation in rural India and Rs.5 Re.1 size packets and parcels that are perceived as a price-performance ratio. This is a typical entry strategy promises to the customer first to transform regular customers.

Promotional strategies and distribution strategies are important principles. Ad makers have learned the benefits to take advantage of the improved infrastructure and the means of destruction. TV spots broadcast in order to attract the rural masses, and we are confident that the achievement of the target group, like most of rural India and glued to the TV!

The parcel delivery routes Thro small and medium crude oil, over long distances in deep pockets of the rural India and learn to trust stockier mobility is a Herculean task. To maintain confidence in the announcements of support. Sales Force is trained to gain the confidence of opinion. Opinion leaders play an important role in the expansion of the brand. Sometimes, the role of entry barriers to new products.

The method of support should be adapted to the expectations of the market. The proven techniques that successful campaigns have Van edutainment films, the production of advertising by word of mouth by opinion leaders, colorful paintings on the wall. The broad Television showed the other Westernization prudent conservative audience. TV in Tamil Nadu Panchayat is the message that is well maintained and contribute to community.

Dynamics of rural markets differ from other types of markets, marketing strategies and other rural areas are also significantly different targeted marketing strategies at the urban or industrial consumers. That the region as well as some other Issues were the subject of intense discussion and debate in countries like India and China, and the approach of the international symposia organized in these countries.

Rural Markets and marketing in rural areas include a number of strategies, including:

* Clients and the Development of site-specific

* Promotion of joint or cooperative

* Group of input

* Association for Sustainable Development

Customer location and targeted promotion includes a strategy designed to track the location and the customer's needs. Policy or strategy includes the promotion of cooperative involvement between marketers and customers. Grouping Inputs "a marketing strategy many items that are sold to client stations, including credit terms, after sales service, and so on. The media, both traditional and modern media is to attract as a marketing strategy, customers in rural areas. Partnership for Sustainability on the parties and provide a basis for stable relations with current and long term.

innovative media can be used to achieve, to rural customers. Radio and television are the traditional Media to effectively reach rural audiences. But shopping carts horse, oxen and writing on the wall are that other media, the message actually on the rural Customers to carry.

Rural marketing is a concept, development, and as part of an economy's potential untapped, have recently made the opportunity sellers. The Improving infrastructure and the extent of the promise of a future best for those who want to go rural. Rural consumers are very brand of products progressed interested today, and thus, the size of the market products and services. The rural population has a tendency to a state of progressive Development in terms of exposure shown in power, habits, lifestyles, and finally the consumption of goods and services. There are dangers that focus more to rural customers. Reduction characteristics of the product for the price decline is a very dangerous game.

 

References:

First Rural Marketing, Naranyansa Ravindranath V and V Badi Badi, Himalaya Publishing House, 2004

2nd The Hindu – Sector Activity

3rd www.deccanherald.com

4th www.indiantelevision.com

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