Understanding Rural Market
Understanding Rural Market
Rural India accounts for over 75% of Indias population and this in itself offers a tremendous opportunity for generating volume driven growth
Contrary to general perceptions, incomes in rural India have improved dramatically over the years mainly due to the eleven successive normal monsoons and increasing crop yields.

50% of India‟s GDP lies in rural purchasing power
60% of villages are connected by and all weather roads
Distribution Channels in Rural Market
Hub and Spoke Model, Example: Coca Cola
Use of Affinity groups, Example: Project Shakti
Haat Activation, Example: Colgate
Syndicated distribution, Example: CavinCare & Amrutanjan
Use of marketing co-operatives, Example: WarnaBazaar in Rural Areas
Mobile traders, Example: FMCG companies
Approach of facing the Challenges
Product designs and packaging which appeals to rural TG
Tie-up with public distribution system (fair price shops)
Use backward and forward integration
Using value based pricing strategy
Effective total quality management
Avoid the marketing myopia, which means the customer will have the same need but will want the new product
Application of value engineering
Use Chinese product design strategy and raw material
Taking care of product duplication and using security features
Provide social outlet campaign
Face-to-face „below the line‟ to
Under Marks continued leadership, Colgate-Palmolive maintained its momentum into the early 2000s. By keeping a tight rein on costs, the company boosted its gross profit margin to 54.6 percent by 2002, when net income reached $1.29 billion on sales of $9.29 billion. On the new product front, the Colgate Actibrush battery-powered toothbrush was brought to market in 2000, soon followed by products in the burgeoning at-home tooth-whitening sector, such as Simply White gel and Total Plus Whitening toothpaste. In pet food, the company in 2002 introduced

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Use And Indias Population. (June 17, 2021). Retrieved from https://www.freeessays.education/%ef%83%92use-and-indias-population-essay/