Page 9 - DMGT509_RURAL MARKETING

Rural Marketing

Notes 1.3 Challenges and Opportunities

 More than 750 million people.
 Estimated annual size of the rural market.

Table 1.1: Pros and Cons of Client-Side Programming Tools

FMCG 70,000 Crore
Durables 5,500 Crore
Agricultural-Inputs (including tractors) 48,000 Crore
2/4 Wheelers 8,400 Crore

 In financial year 2001-02, LIC sold more than 50% of its policies in rural market.
 42 million rural households (HHs) are availing banking services in comparison to 27
million urban HHs.

 Investment in formal savings instruments is 6.6 million HHs in rural and 6.7 million HHs
in urban.
 In last 50 years, 45% villages have been connected by road.

 More than 90% villages are electrified, though only 44% rural homes have electric
connections.
 Government is providing subsidiaries to the villagers to use other source of energy like
Solar System and is now being used in large amount.
 Number of “pucca” houses increasing day by day.
 Rural literacy level improved from 36% to 59%.

 Percentage of BPL families declined from 46% to 25%.
 Out of two million BSNL mobile connections, 50% are in small towns/villages.
 41 million Kisan Credit Cards have been issued (against 22 million credit-plus-debit cards
in urban), with cumulative credit of 977 billion resulting in tremendous liquidity.

Tasks

1. Make a list of popular brands and rate them.
2. Find out differentiated products, which have been introduced in the market.

Challenges in Indian Rural Markets

Rural markets, as part of any economy, have untouched potential. There are several difficulties
confronting the effort to fully explore rural markets. The concept of rural markets in India is still
in evolving shape, and the sector poses a variety of challenges. Distribution costs and non-
availability of retail outlets are major problems faced by the marketers. The success of a brand
in the Indian rural market is as unpredictable as rain. Many brands, which should have been
successful, have failed miserably. This is because most firms try to extend marketing plans that
they use in urban areas to the rural markets. The unique consumption patterns, tastes, and needs

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