Consequently, two schools of thought emerged. In other words, the approach toward rural markets needs to be distinct from the one adopted for the urban markets. Increased telecom broadband penetration, clean energy investments, Foreign Direct Investment FDI in rural development, PURA Providing Urban Facilities in Rural Areasgrowth in food processing industry and several new initiatives are set to transform India rural and make it an even bigger market place for the global corporates to pounce upon.
The Rural Marketing is a two-way process, i. The agricultural supplies viz. Fruits, vegetables, flowers, milk, etc. Still, the majority of the population in India resides in Villages and therefore, the marketers find more potential in the rural areas and direct their efforts to penetrate the rural market.
The income and the purchasing power of the rural people have increased. With the use of modern agricultural equipment and technology, the farmers can produce more and can get better returns for their agricultural produce. The increased income motivates a farmer to improve his livelihood by purchasing a good quality product and thus, the marketer gets an opportunity to enter into the rural market.
Competition in Urban Market: There is a lot of competition in the Urban market, where people are well aware of the goods and services and have created a brand loyalty.
Therefore, the marketers move to the rural market to escape the intense completion and generate revenues from the untapped areas. Today, many villages are well connected with the roads and transportation facilities that enables the marketer to access the rural market and promote his goods and services.
With the growth in telecom services, the rural people can be reached easily via mobile phones. Also, the marketers may move to the rural markets, when the urban market has reached the saturation point, the i.
Support of Financial Institutions: Several Co-operative banks and public sector banks offer the loan facility to the rural people at low-interest rates. With the loan, the purchasing power of an individual increases, thus resulting in a better standard of living.
The Government is running several employment opportunity programmes, with the intention to engage people in other activities apart from the agriculture occupation.There is growth of infrastructure facilities and public service projects in rural India, which includes construction of roads and transportation, communication network, rural electrification and public distribution system.
Market research firm Nielsen expects India’s rural FMCG market to reach a size of US$ billion by Another report by McKinsey Global Institute forecasts the annual real income per household in rural India to rise to per cent , from per cent in the last 20 years.
rural market. To study the major challenges faced by marketer in rural market. RESEARCH METHODOLOGY The present study is descriptive in nature. The data used is secondary in nature and has been collected from various websites and reputed journals. Rural India has a population of crore (Table: 1) spread across 6, 38, villages.
Therefor a comparative study is made on growth, opportunity and challenges of FMCG’s in rural market. This paper will providedetailed information about the growth of FMCG industry in rural market of India and examining the. 76 Chapter – III RURAL MARKETING STRATEGIES OF CONSUMER DURABLES IN INDIA RURAL MARKETING In recent years, rural markets have acquired significance, as the overall growth .
The Rural Marketing refers to the activities undertaken by the marketers to encourage the people, living in rural areas to convert their purchasing power into an effective demand for the goods and services and making these available in the rural areas, with the intention to improve their standard of living and achieving the company’s objective, as a whole.