“India’s way is not Europe’s. India is not Calcutta and

Bombay. India Lives in its seven hundred thousand

Villages”

Mahatma Gandhi

70% of Indian Population .

56% of Indian Income

46% of Indian Expenditure

33%of Indian Saving

Rural India contributes…….

Rural India is all about agriculture .

Less than 50% of the population in agriculture.

Rural income is mainly come from agriculture thus uncertain

Only 41% of the rural income comes from agriculture

Rural growth is slow ,investment gives late results

Rural markets showed 25% of growth in consumer durables,

whereas urban markets showed only 8 to 10 % of growth.

Some Myth About Rural India

India

• Modern out look: Old custom s and traditional cultural values have faded

• Level of literacy: High level of literacy

• Communication and infrastructure facilities: All major facilities are available to the urban customer

• Higher per capita Income: 65% of gross domestic product produced is shared by 30% of population.

Bharat • Traditional out look: It values

old customs and traditions. Cultural values have not yet faded

• Level of literacy: Low level of literacy

• Communication and infrastructure facilities: Facilities like roads, warehouses, communication systems and financial facilities are inadequate in rural India which makes distribution costly .

• Low per capita Income: 35% of gross domestic product produced is shared by 70% of population.

How Is Rural Market Different From Urban

Market

Approaches to Rural Marketing

Rural

Marketing

Affordability

Availability

Awareness

Acceptability

Retailer

Packaging

Product, Price, Place Promotion

Rural Marketing Mix

Education Empowerment

Customization

Potential

Augmented

Expected

Basic

Core

Product level

Rural Consumer Demands

•Core •Basic •Expected(Sometime )

Urban Customer Demand

•Core •Basic •Expected •Augmented

Example: Shampoo

Brand

Model

Technology

Image

Budget

Consumer Behaviour

Budget

Warranty

After Sales Service

Brand Name

Model

Status Seeking Customer Budget Conscious Customer

Brand

Model

Technology

Image

Budget

Consumer Behaviour

Budget

Warranty

After Sales Service

Brand Name

Model

Status Seeking Customer Budget Conscious Customer

Rural Consumer

Aspiration Media Penetration

Infrastructure Deposable Income

What is Changing?

The pull of the market….

Realising the potential…..

Some brands which have done better in the

rural market than the urban market, for

example:

Brands fail in India, but are hit in

Bharat…

The Future is bright…..

HUL Project Shakti

Back

Packaging

Back

Yaara da tashan…..