Importance of Rural Marketing in India

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Why Rural Market is so Important?
Rural market has following arrived and the following facts substantiate this.
• 742 million people
• Estimated annual size of the rural market
• FMCG Rs 65,000 Crore
• Durables Rs 5,000 Crore
• Agri-inputs (incl. tractors) Rs 45,000 Crore
• 2 / 4 wheelers Rs 8,000 Crore

Opportunities:
• Infrastructure is improving rapidly.
• In 50 years only 40% villages connected by road, in next 10 years another 30%.
• More than 90 % villages electrified, though only 44% rural homes have electric connections.
• Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD.
• Social Indicators have improved a lot between 1981 and 2001
• Number of “pucca” houses doubled from 22% to 41% and “kuccha” houses halved (41%to 23%)
• Percentage of BPL families declined from 46% to 27%
• Rural Literacy level improved from 36% to 59%
• Low penetration rates in rural so there are many marketing opportunities.
Durables Urban Rural Total (% of rural HH)
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0
FMCGs Urban Rural Total (% of rural HH)
Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6

Detergents
Formulation
Synthetic Detergents are formulations comprising surfactants like alkyl benzene sulphonate, fatty acid soaps, fatty alcohol, ester and similar compounds, bleaching, optical brighteners, phosphates and anti-redeposition agents, fabric softeners and certain other chemicals to improve the detergent action.
Classification
Classified either based on the charge on the organic part of the detergent (like anionic, cationic or non-ionic) or on the case with which they decompose into smaller units which would no longer foam (bio degradable or soft detergents and non bio degradable or hard detergents). Use pattern
Anionics are the most commonly used detergents for washing and cleaning applications,

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