Tapping Rural Market

Topics: Corporation, Rural, Population Pages: 7 (2181 words) Published: February 19, 2011
Tapping Rural Market

“Sustainable strategies of corporate”

Sandeep Porwal

(PGDM Student, CDSM, Indore)


Rural market is getting an importance because of the saturation of the urban market. As due to the competition in the urban market, the market is more or so saturated as most of the capacity of the purchasers have been targeted by the marketers. So the marketers are looking for extending their product categories to an unexplored market i.e. the rural market. This has also led to the CSR activities being done by the corporate to help the poor people attain some wealth to spend on their product categories. Here we can think of HLL (now, HUL) initiatives in the rural India. One of such project is the Project Shakti, which is not only helping their company attain some revenue but also helping the poor women of the village to attain some money which is surely going to increase their purchasing power. Also this will increase their brand loyalty as well as recognition in that area. Similarly we can think of the ITC E-Chaupal, which is helping the poor farmers get all the information about the weather as well as the market price of the food grains they are producing.In other view these activities are also helping the companies increase their brand value. So as it is given above the significance of the rural market has increased due to the saturation of the urban market as well as in such conditions the company which will lead the way will be benefited as shown by the success of HUL and ITC initiatives.

Rural people consume most products such as shampoo, biscuits, tooth powder, etc in micro units. This is majorly linked to the fact that they earn in daily or weekly wages. The following discussion is to reason out why do they prefer daily/weekly wages in turn to explain the popularity of shampoo sachets (and not a shampoo bottle).

Rural people plan weekly budgets unlike the Indian government which does 5-year budgets. As we have seen before that is because rural people earn in similar periods. And surprisingly, it is their choice to earn in daily but not monthly. Yes, you read it right, it is their preference. Why is that so? It is because, their logical capability to think is very limited. Just like birds, they can do additions up to 10, beyond which it is difficult for them to count. To understand things for a year period, you need to foresee a lot of things, and plan accordingly. This requires arithmetic skill-set. So it is skill-set deficiency that makes an issue with them. Again, what exactly is the issue??

Defining Rural

“A location is defined as rural if at least 75 percent of the population is agrarian”

Seventy percent of India’s population, or approximately 700 million people, do belongs to rural India, with such a large number of potential consumers; it is clear why corporations would like to successfully penetrate the rural Indian market. Present position

Rural markets, as part of any economy, have untapped potential. There are several difficulties confronting the effort to fully explore rural markets. The concept of rural markets in India, as also in several other countries, like China, is still in evolving shape, and the sector poses a variety of challenges, including understanding the dynamics of the rural markets and strategies to supply and satisfy the rural consumers. OBJECTIVE

The objectives of this research paper is to explore the potential of rural markets, critically analyze the rural market opportunities so as to formulate better marketing strategies. Discussion would also involve issues related to segmentation, targeting, and position and other key strategic issues of rural markets for organizations and Business Corporation.

The discussion would center on some of the key issues like; Understanding what is ‘rural’ ‘market’ and developing sustainable corporate...
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