Page 170 - DMGT509_RURAL MARKETING

Unit 8: Rural Product Strategy

high. Most companies ignore the fact that the cost of Market tests is insignificant in comparison Notes
to the total project cost.

Self Assessment

Fill in the blanks:

6. ...................... development starts with idea generation—the systematic search for new-
product ideas.
7. ...................... gives management the information needed to make a final decision about
whether to launch the new product.
8. A significant portion of the ...................... population is paid in daily wages.
9. Market Testing of any new product is the most important aspect, and it decides the failure
or success of that ....................... .
10. Marketers in the rural scenario often confuse Brand stickiness with ....................... .



Case Study Branding in Rural India – The Rules of Marketing

or any Business to survive today, it has to remember one Golden Rule: The Business
is only that much successful as it is remembered amongst people. This, in simple
Fwords, is the Brand of Business. It will be from the Name, Logo, symbol, Slogans to
even Colours of its products. But the big question today CMOs & CEOs of various companies
from FMCG to Consumer Durables are facing is: How to create this Brand in Rural Market?
Is it actually possible to do so? How to get a share of the pie of this underutilized and
mostly under-penetrated market? After all, they know- for most of their products, it will
be their Brand which will be the important factor in deciding on how well they perform in
this market.

While there are sceptics about pay-offs from building brand for Rural India, the marketers
cannot deny the facts: nearly 136 Million households still reside in rural areas even by
broadest classification- which comes to more than 800 Million population. Total income
in rural India (about 43% of total national income) is expected to increase from around
US$220 billion in 2004-2005 to US$425 billion by 2010-2011, a CAGR of 12. The market
penetration is still significantly low in rural areas and there is increasing Brand Awareness
Contd...

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