Did you know? More than 60% of India’s population is concentrated in rural areas where there is a lack of opportunity, awareness, and resources as compared to urban areas. Rural India is completely different from the rest in every aspect – quality of life, clothing, education, housing, accessibility to services, transportation, occupation, etc. And it is the need of the hour to expand there. The rural people might have lived a traditional and conservative lifestyle, but with the rising awareness of growth in education, health, income, and the internet they will gradually overcome it.
Adopting similar marketing strategies as that of urban areas would not be beneficial and the companies might not be successful. These companies should realize the need to reach these areas where there is a lot of potentials to grow. Since more than half of the population of our country is in these areas, the marketing strategies to be adopted should be very different and should be made after analysing the environment, the resources and the knowledge they have. Proper planning needs to be done and the whole plan should be modified according to the needs and requirements of the rural customers.
The rural markets have special features that allow new and existing firms to expand and grow. With concentrated market effort, there is a great scope to rise.
With the increase in per capita income, there is a rise in agricultural production and an increase in its price. With the rise in penetration of mobile usage and internet access, usage of Apps like WhatsApp there is a chance to grow and increase awareness. The government is also improving the electricity supply in these areas and introducing broadband connections.
Any marketing strategy here should take care of the 4 A’s- AWARENESS, ACCEPTABILITY, AFFORDABILITY, AND AVAILABILITY.
The FMCG sector, keeping in mind the needs and conditions of the people, is growing here with their marketing strategies. They sell their products in small quantities because people here have less cash and buy products only to satisfy their daily needs and consumption. So many companies practice – Low Unit Packs (LUP). E.g. – Shampoo, soaps, and hair oils come in small packs ranging from Rs 2-5. Many companies are adopting these practices. This enables rural consumers to try new products and trust the brand. This method is also used in urban areas for lower-middle-class families. Combo-Packs are also introduced for their benefit. Family packs are also introduced to benefit rural customers.
The method of refilling is also used wherein on the first purchase the consumers get a container or a bottle and on the next purchase, they can take refilling packs which are less costly and would give increased results. E.g. – Hand Wash, Spices, beverages, etc.
There is a huge scope for the FMCG Companies to grow in these rural areas. No FMCG company should overlook this opportunity and try to generate plans by penetrating deeper. Good infrastructure will improve their chance of marketing. Rural people would also buy their products due to the awareness of better living conditions. If these companies focus on providing branded products to their rural consumers at reasonable prices, there is a huge possibility to grow.
Since the electricity supplies are not very established, the need for electrical appliances like washing machines, televisions, geyser, microwave, etc get reduce as the rural people think they might not use them properly. The rural people are ‘smart buyers’ and won’t buy a product until they analyse their pros and cons.
There is a huge growth in this sector and by solving this problem they would be able to use these products. These products should be simple, cost-effective, and modified according to their needs which might not be similar to urban people so that they are attracted to buy it because for them these are luxury products and they have been living without it anyway. They will only buy the products only when they are fully satisfied as they ‘value money’.
There is an opportunity for companies to grow in the farming and irrigation fields. Since, most of the rural people are a part of primary activities like agriculture- directly or indirectly, there is a need for products and machines like tractors, pesticides, fertilizers, good quality seeds, water pumps, cattle feed, etc. They can be designed at lower prices which can help the farmers who find high charging labour to perform activities like harvesting etc. by using these machines.
Farmers would also buy pocket-friendly modern products which will make their work easy, improve their living conditions and quality of life and a chance to grow and earn more. A marketing model can be prepared to cater to their need which would help these companies to grow.
There is a need for better infrastructure, transportation, telecommunication, health, education facilities for the poor. With the rising awareness among rural people, they are keen to improve and upgrade their standard of living and demand better necessities.
It is very important to understand and know that rural people are not poor. It is the lack of resources and facilities. Marketing in rural here would make products easily accessible to them which would improve infrastructure, income, and standards of living. It would also improve employment and which will help promote all services here. More and more people would be able to lead a comfortable life.
The agriculture sector would also be improved and all the rural resources would be used effectively and efficiently. The economy of our country would rise. The literacy rate which is 28% would also improve with the child and adult literacy programs being launched by the government for the benefit of these people. The health rate would also rise.
Relationship building is an integral part of the marketing strategy. A good understanding of the people will make them believe in your product which would increase sales.
Technology should be used judiciously for the promotion of products. Verbal and Non-verbal communication should be used to reach the rural audience.
Increased effort to understand the people should be made to win their trust. A network has to be built to promote their goods and services. Rural areas are a part of our nation and we must uplift them and take this opportunity to grow and expand our business in the roots of our country. The future of rural markets is very bright. Increased efforts are already being made here and more efforts should be made. The market here is a bit complex to understand but after the complete study of the environment and people and strategy formulation, wonders can happen. This is such a huge opportunity to grow and cannot be missed.
The road to developing a perfect marketing structure in rural areas might take some extra time but would surely make the country’s future very bright. Marketers and Companies should realize that this market is primarily developed and their increased efforts can improve the conditions of rural areas and make our country a better place to live in.
All Comments () +