Page 171 - DMGT509_RURAL MARKETING

Rural Marketing

Notes in Rural Markets. As seen from the chart above, there is a huge population out there in
India, who has buying power- with higher untapped potential compared to Urban India.

Source: National Sample Survey Office
As Dinesh Malhotra, GM of Rural arm of Lintas points out: ”With media exposure and increasing
literacy levels, people in rural India are now demanding a better lifestyle.” The Rural lifestyle is
changing. The educated “rural yuppie” (males in the 15-34 age group) is more educated
now- they often send money to their families home from the cities they work in. This also
has created “Bandwagon Effect” to some extent – often these people, when come back to
villages, are the new role models of other population in the villages. With their Brand
conscious consumption, they also have a deep impact on the villagers. Word of mouth
publicity is after all, most effective publicity in building brand in rural areas.
Because his cousin from city purchases the same, a consumer from rural areas will go to
local kiryana shop and demand Head & Shoulders – and not Shampoo. He will ask for
Medicare or Lifebuoy – not just a low-priced soap. This shows that the Branding campaigns
of these companies did actually have its impact. When urban consumers are using Shampoo
sachets, they forget that these sachets were introduced first for penetration and increasing
Sales & Awareness amongst Rural India.
In Rural areas, the strategy for a firm to create its own brand is significantly different than
in urban areas. This is not just due to income level- though that plays an important part in
it- but also due to the fact that this is the market where life has revolved around deep
rooted community values, joint families, and social customs and taboos. Here, marketers
need to understand that the traditional routes of market entry and brand building employed
in urban India are often not feasible. From the size of products in case of shampoos, to its
pricing strategy to its position- all or some have to be tweaked to get in this market. In
fact, some companies enter with totally different product for rural markets – like Neem by
Colgate-Palmolive. Here, the company tried to create Brand awareness of it by combining

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