Major Research Project Report on

AN ANALYSIS OF RURAL MARKETING IN

INDIA

Submitted By:

Ramandeep Singh Puri

2K17/MBA/70

Under the Guidance of:

Mr. Dhiraj Kumar Pal

Assistant Professor

Delhi School of Management

Delhi Technological University

Bawana Road, Delhi - 110042

i
 CERTIFICATE FROM THE INSTITUTE

This is to certify that the Project Report titled “An Analysis Of Rural Marketing In
India” is an original and bonafide work carried out by Mr. Ramandeep Singh Puri of
MBA 2017-19 batch & was submitted to Delhi School of Management, Delhi
Technological University, Bawana Road, Delhi-110042 in partial fulfillment of the
requirement for the award of the Degree of Master of Business Administration.

Signature of Guide Signature of HOD (DSM)

(Mr. Dhiraj Kumar Pal) (Dr. Rajan Yadav)

Place:

Date:

ii
 DECLARATION

I, Ramandeep Singh Puri, Student of MBA 2017-19 Batch of Delhi School of

Management, Delhi Technological University, Bawana Road, Delhi-42 declare that
the Major Research Project Report titled “An Analysis Of Rural Marketing In India”
being submitted by me in partial fulfillment of the requirement for the award of the
Degree of Master of Business Administration is an original work conducted by me.

The information and data given in the report is authentic to the best of my
knowledge. The report is not being submitted to any other University for the award of
any other Degree, Diploma and/or Fellowship.

Ramandeep Singh Puri

Place:

Date:

iii
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be
incomplete without the mention of the people who have made this possible.

I would like to use this opportunity to express my deep gratitude and a special
thanks to my mentor, Mr. Dhiraj Kumar Pal for the unending support, guidance
and motivation in the completion of this report.

I am also very thankful to all the faculty members of Delhi School of

Management (DTU) who guided me and provided their support whenever
needed.

I thank all those who knowingly and unknowingly have helped me in the
fulfillment of the project.

Sincerely,

Ramandeep Singh Puri (2K17/MBA/070)

Place: New Delhi

iv
 EXECUTIVE SUMMARY

I am Ramandeep Singh Puri (2K17/MBA/70), an MBA student of Delhi school

of Management, Delhi Technological University. My report is on the scenario
of rural marketing in our country, India. This report is a secondary,
descriptive research project which has encased various topics that concern
the rural markets of our country. This report gives an unbiased, clear idea as
to what is rural marketing, what are the challenges that it carries with itself,
the significance and opportunities available in the rural markets of our
country. The various strategies and innovations that the companies have and
can apply to leverage the rural markets. It also encompasses various case
studies of companies that have successfully encountered and made their
presence felt in the rural markets of our country. After reading the whole
report, the reader will able to understand the reasons behind the growing
attractiveness of rural areas and rural marketing in our country.

The title of the project report is ‘An Analysis of Rural Marketing in India’ and
objectives of the report is to understand the scope, attractiveness ,challenges
and the innovations that were/are being undertaken to successfully leverage
the rural areas of our country.

The successful completion of this project report shows that rural marketing is
the next stop for the marketers of our country.

v
 TABLE OF CONTENTS
Content Page No.

Certificate from the Institute ii

Declaration iii

Acknowledgement iv

Executive Summary v

List of figures viii

List Of Tables ix

1. Introduction
1.1 What is Rural Marketing? 3

1.2 SWOT analysis of the rural markets in India 5

1.3 Objective of this study 7

1.4 Research Methodology 8

2. Literature Review

2.1 India-Population 10
2.2 Comparison of urban v/s rural consumers 11
2.3 Nature and characteristics of rural market 13

2.4 Challenges in Indian Rural market 14

2.5 Significance of the rural markets 19

2.6 Opportunities in Rural India 21

2.7 Factors contributing to the changes in the rural market 24

2.8 4 Ps in the rural markets 27

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3. Strategies & Innovations

3.1 Strategies to overcome the rural hurdles 34

3.1.1 Rural Customer Reach 35

3.1.2 Rural Customer Acquisition 37

3.1.3 Rural Customer Retention 38

3.2 Market-driven innovations in the rural marketing sphere of India 40

3.2.1 Agriculture Sector 41

3.2.2 Telecom Sector 43

3.2.3 Banking Sector 45

4. Case Studies

4.1 Dabur 47

4.2 Tata Motors 50

4.3 Novartis 54

5. Conclusion 59

References 60

vii
 LIST OF FIGURES

No. Content Page No.

1.1 Basic distribution model of FMCG 3
companies in India

viii
 LIST OF TABLES

No. Content Page No.

2.1 India’s urban and rural population 10
2.2 India’s urban and rural population- 11
comparison
2.3 India’s urban and rural population- 11-12
comparison (product)
2.4 India’s urban and rural population- 12
comparison (price)
2.5 India’s urban and rural population- 12
comparison (place)
2.6 India’s urban and rural population- 12-13
comparison (promotion)
2.7 Estimate of rural market potential 22

2.8 Division of products in the rural area 28-29

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 1. Introduction

Marketing is the examination and management of exchange

relationships. Marketing is about building relationships with customers
and satisfying them. Oriented to the client, marketing is one of the most
important components of corporate management. In the past, marketing
practices were generally considered a creative sector that included
advertising, distribution and sales. However, since university marketing
studies employ social sciences, psychology, sociology, mathematics,
economics, anthropology, and neurosciences, the profession is now
widely recognized as a science, so many universities can offer a master's
degree in science (Programs).

The commercialization process involves the commercialization of a

product that includes the following steps: an exhaustive market
investigation; Market segmentation and market segmentation;
Determination of distribution strategies, prices and sales. Develop a
communication strategy; budget; and the vision of long-term market
development objectives. Many elements of the marketing process
(product design, art director, brand management, advertising, writing,
etc.) involve the use of creative arts.

"Marketing Concept" refers to the need for an organization to anticipate

and meet the needs and aspirations of potential consumers in order to
achieve the organisation's goals rather than its competitors. This concept
comes from Adam Smith's The Wealth of Nations, but was not widely
used 200 years later. Marketing and marketing concepts are directly
related.

Marketing research to develop new products or to improve products is

often associated with identifying unnecessary consumer needs. Customer

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needs are the key to market segmentation, where markets are divided
into separate groups of buyers according to "different needs". Features or
behaviors that may require separate marketing products or blends.
"Demand-oriented segmentation (also known as profit segmentation)
emphasizes customer aspirations on how a company designs and
markets products or services. “Aims to show how the benefits of a
particular product are unique to a customer's needs, wishes or
expectations. Marketing in general is very popular and splurging career
that offers millions of people employment in various industries and also
creates value as it goes down in value chain activities down the value or
the supply chain.

The 4 P's of marketing:

(1) identification, assemblage and build out of a product,

(2) determination & decision of its price,
(3) assemblage of a distribution channel to reach the customer's place,
and
(4) build out and implementation of a promotional strategy.

It is a business philosophy that calls into question the three corporate

orientations mentioned above. Its central principles crystallized in the
1950s. The key to achieving its organizational objectives (the objectives
of the selling society) is that society is more efficient than its competitors
in the creation, supply and communication, value for your customers. The
marketing concept is based on four pillars: target market, customer
needs, integrated marketing and profitability.

The concepts that have emerged:

 The Production Concept
 The Product Concept
 The Selling Concept

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  The Marketing Concept
 The Societal Marketing Concept

Figure 1.1 Basic distribution model of FMCG companies in India

1.1 What is Rural Marketing?

The term "rural marketing" was a generic term for people who, in one way or
another, dealt with rural people. This concept made sense after the economic
appreciation of India after 1990. Before moving on to other aspects of rural
marketing, we should discuss the development of this area in several areas,
which will be briefly explained here.

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Rural marketing involved the sale of rural products in rural and urban areas and
agricultural inputs for rural markets. It has been treated as a synonym for "Agri
marketing".

Agricultural products such as food crops and industrial supplies such as cotton,
oilseeds, sugarcane, etc. They were at the center of the discussions during this
period. The supply chain of companies supplying agricultural inputs and artisans
in rural areas has received secondary attention. The local marketing of products
such as bamboo baskets, ropes, door and window frames, small agricultural
equipment such as plow sellers, such as blacksmiths, carpenters, shoemakers
and potters, has been presented in general. It was a completely disorganized
market where all the banias and mahajans (local businessmen) dominated this
market.

At that time, the green revolution was the result of scientific agriculture and had
moved many poor villages into thriving shopping malls. As a result, demand for
agricultural inputs has increased, especially in wheat and rice. The best
irrigation systems, soil tests, the use of high-yielding seeds, fertilizers, pesticides
and the use of machinery such as dust collectors, harvesters, threshers etc.
They have changed the rural scene. In this context, the marketing of agricultural
equipment has gained in importance. During this time, two different business
divisions emerged: "commercialization of agricultural equipment" and
"conventional agricultural marketing". During this period, the marketing of
agricultural products has received considerable attention in the general
marketing framework. The creation of agencies such as the Village and Khadi
Industries Commission, the Girijan Cooperative Society, APCOFabrics, IFFCO,
KRIBHCO, etc. as well as the government's special attention in promoting these
products have been the source of this increase. The village industry flourished
and products such as handicrafts, hand-woven textiles, soaps, safety matches,
crackers, etc. They reach the urban market on a large scale from rural areas.

The products that have not received much attention in the last two phases are,
for obvious reasons, the marketing of consumables and sustainable domestic

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products in the rural market. The economic conditions of the country were such
that the rural population could not buy such products. Secondly, our market was
in a good position and we never allowed foreign companies to operate in the
Indian market.

But we have lifted the ... and opened up the economy for businesses in India to
thrive. The small villages / villages were scattered, making the task difficult and
expensive. Rural markets were seen as complementary to the urban market and
conveniently neglected. However, since 1990, the Indian industrial sector has
gained strength and maturity. Their contribution to GDP has increased
significantly. The result is a new service sector that marks the metamorphosis of
the agricultural society into the industrial society. Through the development
programs of governments and governments, service organizations and socially
responsible business groups such as Mafatlal, Tatas, Birlas, Goenkas and
others, rural areas have now progressed socio-economically.

Economic reforms have further accelerated the process by introducing

competition in the market. The rural market for household goods and durable
goods has grown steadily. Rural marketing has been the emerging business of
attracting and serving rural markets to meet the needs and desires of the rural
population, families and professions. As a result of this analysis, we are able to
define rural marketing. "Rural marketing can be understood as a function that
controls all the activities needed to evaluate, stimulate and transform purchasing
power into an effective demand for specific products and services, and to bring
them to rural people, to their satisfaction and create a level of of life for them and
thereby achieve the goals of the organization.”

1.2 SWOT analysis of the rural markets in India

Strengths:

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  A large population of 647 Million largely uncovered by the companies.

 The staggering 72% of India’s population contributes to half on India’s

GDP.

 Size of the Indian rural market is INR 124000 Crores approximately

(bound to increase exponentially).

Weaknesses:

 Low literacy levels exist in majority of the rural areas.

 Major lack of Infrastructure and facilities like uninterrupted, stable or

sustainable power, roads and logistics, etc.

 Language difficulties-22 major languages and other languages as per

geographical area

 The mass population of the area resists change due to a traditional

outlook of India.

Opportunities:

 Central and State Government Interest:

o 41 Million Kisan credit cards issued providing 977 Billion to Rural India.
o Bharat Nirman & Grameen Sadak Yojna has resulted in increased rural
Connectivity via highways and roads.
o 87% of the villages have been electrified, providing a possibility to
industrial marketing & other business activities on a larger scale.

 There is less exposure to various competing brands, meaning less

competition amongst brands and new entrants.

 Resistance to change form people gives established brands a preferred

leverage in terms of retention.

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  Rural literacy levels of the country have improved from 36% to 59%.

 The Percentage of below poverty line families have declined from 46% to
27%.

Threats:

 The process of Creating products and services for rural areas can be a
tricky proposition.

 The Corporate houses that have deeper pockets (Large Capital) can
enter and perform in the market since a huge infrastructure spend is
required.

 Communication is a big challenge-Miscommunication is a threat as

multiple languages; dialects and gestures can be construed as something
else.

 Low levels of infrastructure can cause threaten profitability and

subsequent losses on investment.

1.3 Objective of this study

 The conceptual points and scope of rural markets in India.

 The nature/characteristics and attractiveness of rural markets of our

country.

 Obstacles to the Indian rural markets.

 Solutions, innovations to problems of the rural market.

Since then, rural markets have become more important in recent years Global
economic growth has led to significant results, Increase the purchasing power of

Page 7
rural communities. Typically, a rural market is a community in a rural area of
2,500 to 30,000. The revolution consumes a large amount of rural areas
Industrial and urban products. So, a special marketing strategy, namely rural
marketing, has emerged meet the needs of rural consumers. Therefore, it is
proposed to Participate in this study to find different ways to exploit the potential
of rural markets. The main objective of this study is the observation of potential
of Indian rural markets.

1.4 Research Methodology

Research Methodology is a systematic way to solve the research problem.

My research Methodology included several methods and techniques for
conducting the specified research.

The data source of my research paper that I took into consideration was
‘Secondary’, that is an indirect collection of data from various sources containing
past, present or future predictions and information like, Annual
Publications,books,newspapers,articles,magazines,Etc.,the references of which
are mentioned at the end of my report for better clarification

The project falls in the category of exploratory and descriptive research, i.e., a
research designed to evaluate the opportunities in rural India.

The basic research method is based on the empirical review method; various
sources of information which are mentioned below were taken into
consideration:

 Case studies
 Articles
 Books
 Annual reports (KPMG, Bain & Co., Accenture, etc.)
 Govt. surveys and annual reports
 Published Research Papers
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 Media and information websites
 Company websites

Analysis: The next relevant step is to extract the pertinent findings from the
collected data. I utilized the findings to create a separate chapter which
further showcases the utilization of the gone through data in the form of
strategies and innovations that the companies can take to further establish
presence and leverage the benefit of opportunities available in rural India.

I have further presented 3 case studies of companies that have successfully

positioned themselves in the rural area as per my reading, knowledge and
finding of the collected secondary data.

The analysis has been represented in two descriptive sub-headings which

show the reach, acquisition and retention of the consumers that can be
adopted by the companies to leverage their positions in the rural arenas of
our country.

Further, the sector wise innovation has been mentioned for better clarity and
understanding on the reader’s part. I have further mentioned the case
studies as well for better understanding and the conclusion part represent
the whole picture.

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 2. Literature Review

2.1 India-Population

India also known as the Republic of India is a country in South Asia. It is

the seventh largest country by area size and with more than 1.3 billion people in
population parameters; it is the 2nd most populated country as well as the most
populated democracy in the world. Surrounded by the Indian Ocean on the
southern points, the Arabian Sea on the south-western, and the Bay of
Bengal on the south-eastern, it shares land borders with Pakistan to the western
frontier; China, Nepal, and Bhutan to the north-eastern frontier;
and Bangladesh and Myanmar to the eastern frontier. In the Indian Ocean
arena, India is in the vicinity of Sri Lanka and the Maldives, while its Andaman
and Nicobar Islands share a maritime border with Kingdom
of Thailand and Indonesian Republic.

Population (in Crores)

2001 2011 Difference

India 102.9 121.0 18.1

Rural 74.3 83.3 9.0

Urban 28.6 37.7 9.1

Table 2.1 India’s urban and rural population

 The point of rural urban literacy gap which was 21.2 percentage points in
the year 2001 has come down to 16.1 percentage points in the year
2011.

 The gender gap in literacy levels has come down from 24.6% in 2001 to
19.8% in 2011 in the rural areas of our country.

 Villages:

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 o Census 2001 - 6, 38,588
o Census 2011 - 6, 40,867 {Increase: 2,279}

 Rural Population in our States:

o Uttar Pradesh: 155.11 million - 18.6%

o Bihar: 92.07 million - 11.1%
o West Bengal: 62.21 million - 7.5%

 The number of Literates: Rural : 493.0 million

2.2 Comparison of urban v/s rural consumers

No. Aspect Urban Rural

1 Market Demand High Low
2 Competition Among units in Among units
the organized in the
sector unorganized
sector
3 Customer Location Concentrated Widely
Spread
4 Literacy High Low
5 Income High Low
6 Expenditure Planned, Even Unplanned,
Seasonal
7 Needs High level Low level
8 Innovation/Adoption Faster Slower
Table 2.2 India’s urban and rural population-comparison

Product Mix:

No. Aspect Urban Rural

1 Awareness High Low

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 2 Concept Known Less Known
3 Positioning Easy Difficult
4 Usage Method Easily Difficulty in
grasped grasping
5 Quality Preference Good Moderate
Table 2.3 India’s urban and rural population-comparison (product)

Price Mix:

No. Aspect Urban Rural

1 Sensitivity Low/Moderate High
2 Level Desired Medium-High Medium-
Low
Table 2.4 India’s urban and rural population-comparison (price)

Distribution Mix:

No. Aspect Urban Rural

1 Transport Good Average
facilities
2 Product High Limited
Availability
3 Channels Wholesalers, Haats &
stockists, specialty local Kirana
stores, authorized shops
showrooms
Table 2.5 India’s urban and rural population-comparison (place)

Promotion Mix:

No. Aspect Urban Rural

1 Advertising Print, Audio, Visual T.V, Radio, Print
media, Outdoor in more
exhibitions languages
2 Personal Door to Door, Occasionally
Selling frequently
3 Sales Contests, Gifts, Gifts, Price
promotion Price Discounts Discounts

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 4 Publicity Good opportunity Less opportunity
Table 2.6 India’s urban and rural population-comparison (promotion)

2.3 Nature and characteristics of rural market

It is a saying that the proof of the pudding lies in the food. Likewise, the
proof of the entire production is in consumption / marketing. With the fast
pace of technological progress and the increase in the number of people &
shopping capacity is now more and better goods and services continuous
demand. In India, marketing in rural areas can sometimes be confusing with
those who think that rural marketing is only about agricultural marketing.
Rural area marketing determines the carrier of commercial activity from
urban areas to rural areas, as well as marketing of various products
produced by non-agricultural workers from rural areas to urban areas.

Liberalization and globalization of India, the economy has given the demanding
production an additional advantage, Distribution and mass distribution of goods
and services. Given these elements, the question may arise Marketers must
focus their activities on urban India, consisting of Subways, district offices and
large industrial areas or extend their activities to rural India. Rural India is the
real India. The Most Indians live in villages. In numerical terms, the Indian rural
market is almost twice as high as the US market or USSR. They are further
mentioned:

 Agricultural income is the main source of income in rural areas

 Their income level is seasonal in nature. It is fluctuating also as it

depends on crop production.

 Though huge, the rural market is geographically scattered across the

subcontinent.

 It shows linguistic, social, religious and cultural diversities and economic

disparities.

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  The market is under-developed, as the people who constitute it still lack
adequate purchasing power and knowledge.

 It is largely agricultural oriented, with low and poor standards of living,

low-per capita income, and socio-cultural backwardness.

 It exhibits varied, sharper and varied regional preferences with distinct

predilections, habit patterns and behavioral characteristics.

 Rural marketing process is both a catalyst to hasten as well as an

outcome of the general rural developmental process. Initiation,
development & management of social and economic change in the rural
sector are the core of the rural marketing process. It becomes in this long
process both benefactor and beneficiary.

2.4 Challenges in Indian Rural market

The rural markets as part of any economy have an intact potential. There are
several problems that make an effort to fully explore rural markets. The concept
of rural markets in India is still in changing ways, and the industry presents a
number of challenges. Distribution costs and unavailability of shops are the main
problems for sellers & the success of a brand. The Indian rural market is just as
unpredictable as the rain. Many brands that should have been Success, failed
miserably. This is because most companies are trying to expand their marketing
plans. They are used in urban areas to rural markets. The unique consumption
patterns, tastes and needs.
Household consumers should be analyzed in the product planning phase in line
with the needs of the rural population.

For this reason, marketers need to understand the social dynamics and the
different attitudes. People, even though it follows a uniform national pattern. The
biggest problems with rural marketing,

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They are: -

 Understanding the Rural Consumer

 Poor Infrastructure
 Physical Distribution
 Channel Management
 Promotion and Marketing Communication

The major hurdles in tapping the rural markets of India are mentioned below as:

 High distributional costs

 High initial market developmental expenditure
 Inability of the small retailers to carry inventory without adequate credit &
thrift facilities
 Generating effective & efficient demand for produced foods
 Wholesaler, retailer and dealer networking problems
 Mass communicational and promotional problems
 Banking and credit(BFSI) problems
 Business, management and sales managing problems
 Business & Market research problems
 Limited infrastructure facilities (lack of physical distribution, roads
warehouses and media availability)
 Highly dispersed and sparsely populated markets
 Less per capita and low standards of living, social, economic and cultural
backwardness of the rural population
 Limited level of exposure to different product categories and product
brands
 Cultural gap between the urban-based marketers and rural consumers.

Firstly, the contribution of agriculture to Indian GDP has steadily decreased to

17.5%. In addition, almost half of the Indian rural economy is not based on

Page 15
agriculture and a third of families - around 50 million - are engaged in non-
agricultural activities - people working in the processing industry or as traders,
traders providing services such the production of electricity, construction,
mining, transport and transportation.

Its good Manufacturers of consumer goods who hit the dust clouds of cities are
discovering a set of contradictions and paradoxes in rural areas. A start is made,
but experts say they are too weird and superficial to be consistent. At the
moment. E-choupal and Project Shakti from ITC and HLL, and there seems to
be some enthusiasm you right now.
However, the problems posed by underdeveloped markets are more important.
Consumers are less aware of rural products than urban markets and purchasing
power is not enough. Vendors in urban and semi-urban areas cannot exploit the
full potential of villages.
"We strongly suggested that marketers select and use educated unemployed
people from the villages and venture into larger areas, "said Piruz Kambhatta,
CMD of Rasna. In addition to soap, detergents and toothpaste, ITC e-choupal
sagar sells almost everything - television, DVD players, pressure cookers,
heaters, clocks, sewing machines and mills.

And of course cigarettes, farmers can also buy motorcycles or even tractors. ITC
has also introduced its own clothing line and shoe line in the countryside - 166
rupees, a pair tailored to the villagers. ITC officials say the mall is booming.
There is also a question of population displacement and fierce competition from
local brands on the rural market, which stands out for urban marketers. National
consumers are much less homogeneous than their urban counterparts and vary
from region to region. The Indian national market in India covers approximately
80% of the country's population.
In terms of the number of people, the Indian rural market appears to be almost
twice as large as the entire American or Russian market. This market is large,
but spread and diverse. It presents linguistic, regional and cultural differences as

Page 16
well as economic differences and can therefore easily be considered more
complex than the market of an entire continent.

The prices of rural marketing raise many problems because of the vastness of
the country and the high potential of an effective marketing system. Another
myth says that purchasing power is weak. He said that in 15.6 million "middle-
class" households, rural areas are good compared to 16.4 million urban
households. With the same income, the surplus in the villages is much higher
than in urban India, he said. Businesses have begun to offer an urban-style
shopping experience in locations where domestic business transactions are
conducted. However, domestic consumers are more value conscious than urban
consumers, and market observers are wondering if traders can keep their
interest when the novelty is exhausted. In the long run, these initiatives will bear
fruit, but experts say there is no concerted effort to conquer other companies.

At the royal area level, semi-urban markets still exist. Automobile manufacturers
say that bicycles and cars are not impulsive products, but "sophisticated"
products. In addition to most manufacturers, most national markets have been
developed in recent years. RL Ravichandran, CEO of Eicher: "Shopping centers
like E-Choupal will raise public awareness, but will not lead to real sales."
Shopping center Company, when more than 70% of the goods purchased on
national markets are generated. "

The biggest challenge for managers is to visualize an active market when

poverty prevails. These successful brands do just that: they focus on unused
markets. Take the example of Dandi Namak. Who would have recommended
entering the brand salt market if Tata and HLL practically shared the entire
market? But they entered that category when conventional wisdom said no. And
they became an overnight success story. They did not enter the market to
compete with Tata and HLL, but with the intention of bringing branded salt to
rural and semi-urban areas.

Page 17
The areas with this narrow goal, they not only conquered a large rural and semi-
urban market, but also gained a share in the urban market due to their
destructive effect.

Furthermore, these little players are perfectly aware that marketing needs
money these days. Do not hesitate to invest in marketing. Let's take the
example of Dandi Namak again. They spend money on their long TV
commercials to make sure the message is anchored in the head of the
prospectus. Fairever and Ujala follow the same strategy. Of course they don't
spend so much
Multinationals do, but spend enough to attract visitors.

An important aspect of the strategy is the effective communication of the

product. Take the case of Dandi Namak. Television advertising was boring and
uninteresting. However, he was able to connect with his target customers
without delay because he spoke in the language of his target customers. These
brands send a strong message to their target customers: they are made for each
other.

The core of a scientific approach lies in understanding the market opportunities

for rural products and the country's development priorities and developing a
strategy in which the rural industry plays an important role. Although national
products must increasingly be integrated into global supply chains, these
products must adapt not only to the changing taste of the national market, but
also to the changing taste of the international market. That is why a process is
essential to explore the SHG market interconnections and capacity building
through a bottom-up approach and continuous dialogue with the stakeholders of
the rural enterprise. This process should ensure the participation of the rural
population as consumers and producers in the globalization mechanism with
better livelihoods and access to the world market. This is where the real
challenge begins with building a sustainable market connection.

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The consumer goods market in India is currently one of the largest and is
growing rapidly by almost 60%. Despite the economic crisis, the pipeline market
in India currently stands at about 85,000 crores. The phenomenal growth of the
consumer goods sector, especially in Tier 2 and Tier 3 Indian cities, is due in
large part to the improved standard of living of the inhabitants of these cities.
Increase in disposable income.

The consumer goods sector in India appears to be the fourth largest in the
world. According to experts, this sector will reach $ 33.4 billion by 2015. Both the
organized and unorganized sectors are largely responsible for the success of
the Indian exhaust industry.

By looking at the challenges and opportunities that national markets offer to

marketing professionals, we can say that the future is bright for those who can
understand and make the most of the dynamics of rural markets. A radical
change is needed in marketers' attitudes towards dynamic and fast-growing
rural markets in order to positively impress consumer, Millions of rural
consumers in some six hundred thousand villages in the Indian countryside.

The development of the rural market will be linked to both advertising and
additional costs and distribution. In rural marketing, it is often not important to
market a brand, but promote a particular product domain, for example, fertilizer
and Pesticides. The city and its sellers cannot fully exploit the potential of the
villages. Here, you can suggest that marketers can choose and use educated
people from the unemployed villagers.

2.5 Significance of the rural markets

If you meet a sales representative today and ask which market would you
choose? Dear friends, the immediate answer would be "rural markets" like them
they are still unused/unexploited. Many factors have been recognized
responsible for the development of the rural market. They are mentioned below:

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 Marked up increase in the Indian population, and hence increase in
demand. The rural population in 1971 was 43.80 crores, which increased
to 50.20 crores in 1981, 60.21 crores in 1991 and 66.0 crores in 2001 &
83.3 in 2011.

 A marked increase in the rural income due to agrarian prosperity an

better remittances from the urban areas of India and abroad.

 Better and increased inflow of investment both in terms of FDI and FII for
rural development programmes from the Central and state governments
and other sources.

 Increased communication of rural people with their urban counterparts in

India and abroad due to development of transportation networks and a
wide communication network with respect to 3G.4G, and LTE along with
Fiber networks.

 Marked up increase in the literacy and educational levels among rural

folks, And the resultant inclination to lead sophisticated lives due to better
interaction and connection to sophisticated and advanced products and
services.

 Major Inflow of foreign remittances and foreign made goods in rural area
due to migration of people from rural areas to Indian urban areas and
foreign countries. This is most prevalent in the states of Punjab, Kerala,
Haryana, etc. where the prosperity is seen with plush houses in the midst
of farmlands and outer rural areas due to remittances from abroad.

 Modifications, upgrades and changes in the land tenure/ownership

system causing a structural change in the ownership pattern and
consequent changes in the buying and selling behavior. The general
marked up rise in the level of prosperity appears to have resulted in two
dominant shifts in the rural consuming system. One is conspicuous
consumption of consumer durables by almost all segments of rural
consumers, and the obvious preference for branded goods as compared
to non-branded goods of rural. People there have started demanding
goods that are prevalent in the urban areas, because FMCG goods don’t
require as much infrastructure that is required by white good like
Televisions, refrigerators in terms of service, electricity, etc. Brands like
Axe, Fogg have seen a lot of acceptance and popularity in the rural areas
due to increased advertising and communication by these brands on the
national television.

Page 20
Traders who understand the rural consumer and develop their own, the strategy
will certainly be useful in the coming years. The management of a product or
service is related to the leadership of rural India, with the exception of a few
lifestyle products that depend mainly on urban India. The penetration of
consumers has increased considerably Commodities in the Indian rural sector.
One third of premium luxury products are now sold on the rural market.

Globalization will also affect rural India. It's starting to be something .This will
affect target groups such as farmers, young people and women. The farmers
Stay up to date today and search for what Global move price changes and
availability of products in the International markets seem to determine their local
business strategies. In the youth, it affects knowledge and information and still
depends on women socioeconomically.

By now, two-thirds of middle-income families are in the rural market. A study

comparing income and purchasing power in rural areas if rural income in India
increases by 1%, this would increase purchasing power by nearly 10,000 crores(
rupees). On the other hand, the urban sector has shown saturation in recent
years.

The fact is that the rural market in India has great potential, waiting to be
exploited. Some have moved in this direction, but marketing professionals seem
to have a long way to go to make the most of it. Rural India is not as poor as it
was ten years ago. Goes up in the near future!

2.6 Opportunities in Rural India

There are several reasons why each sector seriously analyses rural markets:
- About 285 million people live in urban areas of India, 742 million in rural areas,
which is 72% of the Indian population lives in its 6, 00,000 villages. The size of
the rural market is estimated at 42 million households and the rural market has
grown. Five times as fast as the urban market.

* More than or equal to 750 million people * this is the estimated annual size of
the rural market in India.

Page 21
FMCG Rs. 70,000 Crores

Durables (Consumers) Rs. 5,500 Crores

Agricultural-Inputs (including tractors) Rs. 48,000 Crores

2 / 4 Wheelers Automobiles Rs. 8,400 Crores

Table 2.7 Estimate of rural market potential

 In the financial year 2011-12, LIC sold more than 50% of its insurance
policies in rural market of our country.

 Due to various initiatives, 42 million of the rural households (HHs) are

availing banking & financial services in comparison to 27 million urban
HHs.

 Investment of funds in formal savings instruments of government and

Private Entities is 6.6 million HHs in rural and 6.7 million HHs in urban.

 In the last 50 years, 45% villages have been connected by road network
by various Central and State Governments as well as Private entities
under the PPP mode.

 More than 90% of the villages are electrified under various schemes,
though only 44% rural homes have electric connections but the
Government is aimed at providing electricity to each and every
household.

 Central and State Government is providing subsidies to the villagers to

use other sources of energy like Solar System, Wind Energy, Biomass
and is now being used in large amount by the villages due to the
incentives available both financially as well as due to emotional stature.

 The number of "pucca/solid” houses are increasing day by day due to the
various schemes like PMAY.

 The overall rural literacy levels of our population have improved from 36%
to 59%.

 The Percentage of BPL families has constantly declined from 46% to

25%.

 Out of the two million BSNL mobile network connections, 50% are tier 2
and tier 3 small towns / villages.

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  Under BFSI, 41 million Kisan Credit Cards have been issued (against 22
million credit-plus-debit cards in urban), with cumulative credit of Rs. 977
billion resulting in tremendous liquidity and increased purchasing power
as well as inclusion in formal finance.

 The basic Lowering of difference between taste of urban and rural

customers in our country due to better networking.

 The constant Setting up of infrastructural channels like e-choupals by

companies like ITC, private sector has played a huge role.

 The rapidly Increasing agricultural productivity leading to growth of rural

disposable income albeit marginally but thanks to new HYV seeds as well
as genetic seeds ,income can grow at a large pace.

 The Growing stature rural infrastructure - thanks to Government initiatives

at the central, state as well as district levels through various schemes and
subsidies.

 Albeit better irrigation facilities and the constant improvement of water

provision facilities to the far flung, dry, ill-irrigated rural areas.

Many companies, such as Colgate-Palmolive, HLL, Godrej, etc. they have

already taken action in rural areas. Households, but still conquering markets, are
a distant dream. Most sellers still lack depth. Knowledge to analyze the complex
rural market is required to tackle it in an effective and efficient manner.

In the Indian context, rural marketing is a complex problem. For a professional

organization, rural marketing is plagued by a series of problems. The prices of
rural marketing face problems related to the size of the country and the
possibility of setting up an effective marketing system.

In addition, other problems are due to underdevelopment of markets, illiteracy

and credulity. People are the main segment of the markets. More buying power
is not enough. It is not enough to have pioneers of consumption. The activation
of large-scale purchases is an essential condition for the use of the rural market.

It is no secret that the Chinese have done an incredible job to improve their rural
economy and to achieve significant progress in terms of extreme poverty. The

Page 23
same trend is visible in Vietnam. In fact, this happens in almost every country I
have visited, including India. To maintain high growth rates, you need an
inclusive growth strategy that includes urban and rural consumers. This is the
key message.

It is now unanimously recognized that rural distribution in India is inadequate

and inadequate and disproportionate to the agrarian revolution. This requires
focusing on increasing rural demand for urban demand.

Companies take risks that they can master. The operations of P & G, Unilever
and Coca-Cola in Western Asia are examples. The end result is the size of the
market: Africa and Asia have more than three billion rural consumers. It is
almost half of the total population. One third or one billion people live in South
Asia (India, Pakistan and Bangladesh). Unilever South Asia, headquartered in
Mumbai, has been meeting consumer needs for decades. These companies, as
I call them, have a rural DNA.

Traditional marketing activities, such as advertising, distribution, sales and

service, which have been carried out so far in the urban and semi-urban context,
will be extended to a much larger area in rural areas innovation, selection, and
appropriate acquisition.

2.7 Factors contributing to the changes in the rural market

 Green revolution:
The considerable attention given to agriculture in successive five-year
plans has contributed to improving agricultural productivity. Adoption of
new agronomic, selective practices. Mechanization, multiple crops,
inclusion of crops and Development of related activities such as dairy
products, fishing and other commercial activities.
The activities have helped increase the disposable income of rural
consumers. In India, more than 75% of the villages have been electrified.
There is also a change from the addiction to rain to irrigation. Farmers
receive high profits for their money and food. Throughout the process,
dependence on seasonality has decreased and, in turn, disposable
income has increased. In this scenario, India is one of the largest giants,
Hindustan Lever Ltd. Enter the rural market for a greater penetration of

Page 24
 Operation Bharat. Since December 1999, HLL has reached 35,000
villages, 22 million homes and issued 20 million rupees. This was one of
the largest sampling exercises conducted recently by a large commercial
building.

 Emerging Role of Bio-Tech. in Indian Agriculture Sector:

In fact, Indian agriculture is less efficient than that of the world's major
countries. Countries such as the United States, Canada, Israel, and
Germany have produced high yields in agricultural production, but
countries such as India, Brazil, and Nigeria have agricultural yields well
below the international average. The main difference in this respect is the
use of biotechnological applications. Biotechnology plays a vital role in
improving the performance of agriculture. For example, in the United
States, wheat yields per hectare are almost three times higher than in
India, and sugar cane yield is two and a half times higher than sugarcane
yield per hectare. These advanced countries have widely used
biotechnology, while the concept is not yet very popular in developing
countries. When we live in a time of globalization, everything becomes
globally competitive, so we cannot live isolated in terms of agricultural
production. We need to exploit the biotechnology applications in an
agricultural sector, both in terms of seed production and cultivation.
The same after the theories of biotechnology. Our farmers, who are
usually unaware of this fact, need to be trained and educated. The
responsibility lies on the shoulders of the country's researchers,
scientists, administrators and policy makers. It will give farmers
discretionary income.

 Rural communication:
About 50% of the villages are connected by all the current climatic routes
and are accessible all year long. However, there are states that are
almost 100% connected to the metal track. Linking roads has not only

Page 25
 increased the mobility of rural consumers, but has also increased their
commitment to products and services. Looking at this scenario in these
areas, Korean consumer goods companies have decided to look closely
at their noses. Now they depend on rural markets. Two giants, LG and
Samsung, have already developed their strategies to enter rural India.
According to a study by the Indian Market Research Bureau (IMRB), 77%
of villages are covered by television channels. Now, even the villages are
configured for satellite dishes and have already contacted several
products. Through advertising, all villages will be connected to telephone
systems in the near future and some villages are already connected to
this facility. Apart from that, the internet is not internet.
A distant reality recently, the Minister of Communications, Ram Vilas
Paswan, announced that this would be the case in the coming days.
100% phone connectivity in rural areas. Watch, with these opportunities
and the interests of rural residents, Tata Cellular has already arrived in
rural India with the first entry into Andhra.
Pradesh Tata Cellular has created the largest mobile communications
corridor in India. Provide connectivity to non-metropolitan and rural
centres.

 Development programmes:
Five-year plans have led to massive investments in rural areas. Number
of development programs implemented by central and provincial
governments. These programs generated income for farmers and helped
them to change their way of life. Some of these programs are:
o Intensive Agricultural District Programme (IADP- Package
Programme)
o Intensive Agricultural Area Programme (IAAP)
o High Yielding Varieties Programme (HYVP- Green Revolution)
o Drought Prone Areas Programme (DPAP)

These programs refer to agriculture and related activities. However, there are
some other guidelines specifically designed for this. The level of the rural

Page 26
population in terms of health, education, hygiene, etc. After the start of economic
reforms in 1991, the government paid special attention to rural India by providing
certain development programs for these areas. The Minister of Finance
announced a series of announcements in the EU budget in 2000 aimed at
enriching existing programs and launching new rural programs such as Kisan
credit cards, microfinance and Pardhan Mantri Gramodyog Yojna and so on. It
was about agriculture and rural development.

Some programs pay particular attention to the EU budget and, taking into
account the progress of economic reforms, poverty is taken into account
decrease faster, and there is a significant increase in the Per capita income of
people, especially for most Indian Union. So we can see that today's changes
are progressing rapidly in all countries. The streets of life and rural areas are no
exception. Improved Infrastructure, economic liberalization, new focus on Agro-
industries and small industries, rapidly changing agricultural technologies and
communication.

The marketing opportunities of agriculture and a larger budget for the rural
population are reasons for this. In addition, various socio-cultural, psychological
and political aspects of rural life are discussed. The changing rural population
today is less fatalistic, less religious. Increasingly individualistic, success-
oriented and emerging beliefs.in front. All this opens up new perspectives for
marketers Millennium, at least in states that lead the per capita income with
sustainable growth, such as Punjab, Haryana, Maharashtra, Tamil Nadu,
Karnataka, Gujarat, Delhi and Western UP etc.

2.8 4 Ps in the rural markets

There is a significant change in the villages. The rural people used to break
the walnuts, eat the nut and throw away the peel. They now want chocolates to
melt in their mouths and not melt in their hands. A new announcement from Rani
Mukherjee’s Perk talks about the demand for chocolates in the rural market.

Page 27
There are charcoal, neem branches and babool trees that brush your teeth now
being replaced with paste .In today's world Colgate, or other brilliant brilliance is
very good. The international toothpaste brand is more attractive than traditional
teeth cleaning methods.

They also accompany the terminology to describe the activities change the
attractiveness of product marketing. Consumer Globalization includes parts of
India where some could endanger& it is likely that time will end forever.

These villages and small towns were once insignificant. On maps, they attract
the attention of men and global media planner. Thanks to globalization,
economic liberalization, the information revolution, Enhancing the power and
female infrastructure currently in the middle class of rural India disposable
income more than in urban India. Rural marketing has new height when
compared to rural advertising.

Most companies consider the rural market as a waste for the lower market, Final
products for a public citizen. However, this scenario is slowly changing and
importance is attributed to the needs of the rural consumer. So it is important to
understand the 4Ps of rural marketing with respect to rural consumers.

 Product

A product is in the heart of rural marketing. It is a need/want satisfying entity to a

rural consumer. NCAER has classified various consumer goods into 3
categories. These categories cover most of the products from Rs. 100 - Rs.
20000 and above.

1st Category 2nd Category 3rd Category

Pressure Cookers 2-in-1 (mono) C TVs (S)

Pressure Pans 2-in-1 (stereo) C TVs (R)

Mono Cassette B and W TV (S) VCRs/ VCPs

Recorders
Wrist watches B and W TV (R) Scooters
(mechanical)

Page 28
Wrist watches (quartz) Instant Geyser Mopeds
Radio/Transistors Storage Geysers Motor Cycles

Electric irons Sewing Machines Refrigerators

Ceiling Fans Vacuum Cleaners Washing Machines

Table Fans Mixer/grinders
Bicycles

Table 2.8 Division of products in the rural area

The structure depends on the needs of the rural consumers. Most of the
products under category 1 are of immediate usage to the families. Category 2-
products reduce the strain on the households and also act as a source of daily
entertainment. Category 3 is a combination of means to supplement the income.
Rural branding majorly aims at creating and disseminating the brand name of
the products so that it is easily understood and recognized by the rural
consumers.

In rural market areas, brands are almost non-existent. They identify FMCG by
three
Criteria:

1. Color,
2. Images of animals and birds and
3. Numeric.

So a 333, 777, laal goli, hara hathi, lal saboon, safed dantmanjan are the kind of
terms through which they identify brands.

Therefore, it is very important to understand that there is much marketing and

branding, communication. There are several cases that suggest that brand
names to educate consumers simultaneously. Branding communication,
education must support marketing activities.

Page 29
The following things have to be kept in mind while the marketer makes a
decision on the product:

o The products for the rural market areas have to be simple, easy to use
and there should be provision of after sales service or maintenance.
o The product has to be packaged for low price and convenient usage
patterns.
o The pack has to be easily construed and understood by the rural
consumer. The information on the pack is to be printed in local language
communicating the functional and other benefits of the product.

 Pricing

A rural area customer is price conscious and business is valuable. This is mainly
because of their lower income level than their urban counterparts. Therefore, the
dealer must find ways to make the product accessible to the domestic
consumer.

Banks offer loans for tractors, sets of pumps, televisions, etc.The product is
accessible to a rural consumer.Smaller units are preferable to consumer goods
at low prices. The packaging and presentation of the product offer enough space
to keep the price low. Reusable packaging or recharging packaging is also
preferred and considered as value added.

 Placement or Distribution

Distribution of products is one of the biggest challenging areas of rural

marketing.

There are CWC (Central Warehousing Corporation) and SWCS (State

Warehousing Corporations) set up in rural market areas to store, inventory and
distribute products.

A three tier rural warehousing setup exists:

Page 30
 · CWC/SWCs
· Co-operatives
· Rural Godowns

CWC and SWC reach district levels. Cooperatives are at the Mandi level. The
rural godowns are located at the village level, where they belong to the chiefs of
panchayats. All of these levels provide only storage for your own members.
Therefore, storing products in rural areas is a big problem.These are some of
the problems of rural distribution:

o Transportation networks have not been fully developed.

o Lack of proper and thorough channels of communicational posse
like telephone, postal services, and so on pose a lot of problem to
marketer to service the retailer as it is difficult for the retailers to
place order for goods.
o Inventory of goods in rural market areas is also a problem for the
marketers.
o Multiple hierarchical structures push up the costs and channel
management becomes a major problem for marketers due to lot of
middlemen in the process.
o Availability of suitable dealers,middlemen,agents
o Poor feasibility of rural outlets
o Rural outlets need BFSI support for remittances to principals, get
fast replenishment of inventory, receive supplies through bank and
facilitate credit. This gets disabled due to inadequate bank
facilities.
o There are a lot of personal shops in the rural sector.

There are varied kinds of retailers:

· Shops within the village areas,

· Shops located on the main arterial road and not exactly within the village

Page 31
· Kasba markets or the tehsil market.

The clientele/customers for these markets also vary. For the shops within the
village, the inventory pattern is very much dependent on the kind of investment
the retailer can make in a single-time purchase.

 Promotion

Communication with rural consumers takes place through organized

media.Many rural consumers (about 70%) listen to the radio and most of them
go to the cinema.Communication in rural areas can be done through traditional
media or through non-traditional media. The most common classic supports are:
printed, cinema, television and print media. Non-traditional media include
theater, posters, hats and molasses.Traditional media have excellent access,
are cheaper and have a better impact. At the same time, however, it is not
personalized for every village and sometimes provides unnecessary protection.

Literacy rate, culture, tradition, rural area, attitudes and poor behaviors are other
problems of rural communication.

Effective advertising should include a suitable media mix. This,It is very

important to create a common spirit among rural consumers. When you speak in
a language that you know with the customer, when you articulate the functional
benefits and promote the product, you make a major contribution to the rural
market.The rural market in India is only Rs 8 billion (53% of consumer goods,
59% of consumer durables, 100% of agricultural products) out of a total of RS
120 billion, representing 6.6% of the total. So it seems that a long way to go.

Hindustan Unilever is the first company that comes to mind and is thinking rural
marketing. Amul is another example of aggressive rural marketing. Other slow
companies in this area include Coca Cola India, Colgate, Eveready Batteries,
LG Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare,
Britannia, and Honda Heroes, just a few people named.

Page 32
Until a few years ago, the rural market was subject to dastard treatment. Many
companies and advertising for rural consumers usually had this treatment. In
most cases, the program involves selecting a shortcut by pushing urban
communication into the rural market through a single transliteration of the
advertising text. As a result, urban-based advertising did not influence rural
attitudes and consumers. This is now changing, but it is always a slow process.
The biggest challenge for advertisers and marketing is to find the right mix that
reflects an all-Indian rural appeal. Coca Cola has done this with Aamir Khan Ad.

Companies are always worried about "Go Rural". Since then the rural
consumers are scattered and it is difficult to anticipate the demand in the rural
market. Agencies wishing to draw attention to the rural market and its
importance are Anugrah Madison, marketing and advertising solutions from
Sampark Ltd, MART, Rural Relations, O & M Outreach,Linterland and RC & M,
just to name a few. In addition, the first four agencies gathered up to form the
rural network. The main purpose of the network is to get customers to look for a
national rural marketing strategy and to support them in their implementation in
different region.

Page 33
 3. Strategies & Innovations

3.1 Strategies to overcome the rural hurdles

The Indian rural market is the key to the future growth of many businesses.
Companies that understand this huge opportunity will step up their efforts in this
market. However, high costs for rural consumers make business profitability
difficult. These challenges must not prevent leaders. This research, it is clear
that the Indian rural market can also generate real benefits in the short term.

The key? Companies must set up effective distribution and sales networks,
adapted to the specificities of rural India. This report explains how companies
can quickly realize and grow profits when they reach, buy and hold consumers
in India.

In the currently unstable commercial environment are Indian rural markets.It

represents an opportunity that no company can afford. Since 2000, the gross
domestic product (GDP) per capita has increased most rapidly in rural India.

Areas only in urban centers:6.2% CAGR vs. 4.7Percent. Revenues in rural

areas are increasing and consumers are buying discretionary products and
lifestyle products, including cell phones, televisions and two-wheelers. Between
the 2009 and 2012 editions for rural India reached $ 69 billion, well above the $
55 billion spent by the urban population.

Companies experiment with different marketing models to participate in this

growth. The results are mixed. To understand why, and how to fix it, an in-depth
study was conducted to find out how companies responded to Indian rural
market opportunities and what sales and distribution problems they encounter.

The study included in-depth interviews with more than 40 business executives,
20 industry experts and scientists, and a quantitative survey of 70

Page 34
Companies that operate in Indian rural markets, our research has shown that an
effective sales and distribution model is the most important determining factor
for a successful rural expansion in India.

Our research suggests, Let the challenges be lived. Companies can be divided
into three main categories: reaching, acquiring and maintaining rural customers
in India. Accenture customer research and experiences show how Companies
respond to these challenges and differentiate them in the rural market.

We also analyze the development of the farm market in the rural market. The
result and the degree of innovation that characterizes the sales and distribution
model of a company. On the basis of these comments we classify those
companies in four categories.

3.1.1 Rural Customer Reach

When it comes to achieving rural customers in India for whom the main
obstacles are insufficient. Distribution networks, partners with limited capacity for
a long time. Payment cycles and weak Marketing channels are not surprisingly,
the respondents. Our survey quoted "high costs for served rural markets "as
your biggest challenge: 50% rated it as one of They have the first three
challenges. Face He asked which units the highest cost more than 60. Reported
percentage plus logistics Costs in rural areas. More than 40 percent of the
companies, considered as "recruitment". Select channel partner "a challenge her
even more Face to reach rural customers.

 Take a solid approach to reaching the last mile: rural masters use a multi-
level approach to reach rural consumers. This allows for deeper
penetration and helps overcome the search for distributors with the right
capabilities and reach. While some companies have used a single-
channel model, such as Turntables and speeches have introduced other

Page 35
 hybrid models to compete and grow. The extension of traditional urban
models to rural areas remains the most used option. Some rural masters
who entered the rural market early adopted the village contractor. ("Pie
on the street") Model to overcome distribution-related infrastructure
challenges others have added layers to their distribution approach to
bridge the gap between traditional cities. Rural partners and clients
distributed. Others use e-commerce and other distribution partners for
quick and efficient access for rural consumers.

 Focus on market expansion: Rural teachers apply a laser-like approach

in their expansion efforts. For example, they use a detailed market.
Analyze and segment to understand the specific nuances of the segment
and prioritize the best opportunities. Some use technologies such as GIS
mapping to create a
Multidimensional image of the target segments. These companies are
trying to make a profit as quickly as possible while making a profit. It’s
time to express the potential value of each target segment. The
introduction of a variable cost model at the beginning gives them the
opportunity to easily change course as they use their current approach.
This does not lead to the desired results.

 Create a sustainable channel: Relationships as rural markets grow, more

players enter the fight that drives that Channel request ability the
partners, and however, few potential partners have they need standards
and skills. As demand increases, so too like the risk of the couple Wear
land teachers recognize this extended channel partner the skills are the
focus of successful implementation of your sales strategies. The most
successful companies Rural India creates sustainable Relationships with
distributors and make sure its partners stay motivated to find non-
transaction contact point to the anchor channel Relationships like
construction family ties with theirs Partner to build trust.

Page 36
3.1.2 Rural Customer Acquisition

Rural consumers’ have diverse, specialized and Settings to acquire these

Customers need companies Understand the cultural, the economic. And the
demographic dimensions that define them. Organizations often make the
mistake of editing the field. Consumers are so homogeneous. Market and offer
the same. They offer value proposition.to urban markets. These values the
sentences are usually focused on the functional advantages of a product. And
pay little attention to how the product corresponds to the unique Needs and
wishes of the rural population. Customer segments, Accepted Strong social
fabric in rural areas. And the crucial role of this tissue Play by influencing the
purchase. Decisions need companies. Integrate into them. Only then can, they
successfully promote their Products and create credibility. Rural teachers
explicitly accept these Steps to achieve these goals:

 Create trust and relevance through a stakeholder ecosystem: Rural

Masters works with a large number of stakeholders to prove it.Your
business is a force for the common good. Because every actor influences
the ecosystem and guides customer behavior, the holistic approach
creates a vicious circle. Business who takes this approach perceived as a
builder of symbiotic relationships focus on everyday consumers it doesn't
need easy on corporate earnings. This Also the ecosystem approach
increases awareness of Company and allows them cover the latent
demand. Moreover, Place companies at the touch Customers to much
more previous points during the purchase often cheaper.

 Define a single value proposal for rural customers: Successful companies

constantly renew their commitment – e strengthen their capacities for the
knowledge of rural customers and provide experiences adapted to their
needs, values and preferences. Victory Market share of these companies
positions their brands to address specific consumers the segments the

Page 37
 rural masters invest strong development skill like Win customer analysis
Focus on rural consumers and their latent needs.

 Set the correct sentence Influencers: for the most part the brands have
relatives, Short story in rural India, Word of mouth plays a lot Greater role
in the acquisition of rural areas. Only customers in urban markets. Rural
masters involving individuals with spectacularity, stop in rural
communities as an "influencer" to strengthen the key. Strategic messages
to access with the good influencers, Identify and classify companies. Key
players behind how influential and supportive they may be. By
identification and turn right Influencer, business form. The perception of
rural clients. Your business and offers and create a repository of
Knowledge of the local market. Smart the use of influencers becomes
one. Powerful way to stimulate Brand and client Satisfaction in the
reduction the costs of customer acquisition.

3.1.3 Rural Customer Retention

Although the companies are focusing strongly on the rural Acquisition and
reach of the consumer, strengthening customer loyalty the efforts have gained
importance. as a competitor deepen theirs penetration in the market, As long as
Reliable and consistent after-sales Trust and construction service stay with local
communities Great obstacles for rural masters. Overcome these challenges by
applying several powerful practices:

 Develop low-cost models for post-sales support: post-sales support is an

important part of customer loyalty. Provides feedback from customers
and generates market information about competitors channel partner
performance. In addition, after-sales assistance. Strengthens the rural
environment of a company Prizes and obligations, what increases the

Page 38
 customer Loyalty in all phases of the Life cycle of the product, successful
Companies often build a commitment .Convenient post-sales support
Infrastructure have Used the local resources they provide “Low cost
service" or leverage. Technology to avoid costs to perform this service.

 Anchor customer relationships with confidence: teachers of the building

land Trust in local communities Even if it's getting closer to building trust.
They vary depending on the company and industries, buildings Trust
relationships are a part of effective organizations »Distinctive character.
Some companies use customer feedback Show your attention Consumer
needs, who can Help them gain the trust of their customers.

 Invest in community development: rural masters. Align your long-term

interests with the development of the premises. Community to get your
trust. And loyalty. This orientation builds synergistic relationships based
on common objectives and Aspirations The most effective Organizations
build a strong Ecosystem of company of Integration of the local
population.in your value chains as Partner with an independent
professional Interest in the company. Survival. Often overlooked, this
approach can guarantee Business sustainability.

The unique challenges that Circumstances that define India the rural markets
will continue develop. So on the way, Years will take over companies additional
approaches to Reach, acquire and preserve. To better focus on rural consumers
of India, emphasis on execution Excellence, and implementation will serve as
new strategies and rural consumers and drawing to a deep understanding of
Crops and needs of the consumer. You will need innovative, efficient & effective
models to take the chance and ways to protect your margins. While the income
grows, the face of a constant change, speed will be an important factor that will
have an intelligent formulation in the Implementation of strategic plans of
companies.

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3.2 Market-driven innovations in the rural marketing sphere of India

An important part of the world population lives in underdeveloped and

underprivileged regions of the world. Although this segment represents a
significant proportion of the population, it has been strongly rejected by
companies and sellers.

Just as the primitive urban market needed the same revolutionary innovation to
accelerate the development process, this market also needs revolutionary and
relevant innovations for the real estate sector, in several sectors.

Therefore, an appropriate combination of appropriate technologies and

pragmatic innovations in commercial and marketing strategies can make this
market as effective and lucrative. This article examines the different dimensions
of innovation to penetrate the rural market and the future of the rural market in
India, Agricultural growth, based on technological innovation, products and
services, particularly in the fields of agriculture, banking and
telecommunications.

Innovation is the main reason for the growth of all countries. It is generally
acknowledged that a country's economic growth largely depends on how it
innovates and reinvents itself in a competitive environment.

With nearly sixty-nine percent of India's total rural population and more than half
of consumer and consumer goods sales in these regions, it has become very
clear that the next big market for India will be In India, product sales will be rural
areas. The characteristics of rural markets in India are very different from those
of Indian city markets.Factors such as literacy level, income and employment
levels, social and cultural factors are important variables, while the segmentation
of markets and products, prices and promotions is performed.

Many rural innovations have the idea of designing and delivering products at
affordable prices. Many examples show that rural innovation is caused by lack of

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resources, be it money, skills shortages or lack of technology. Therefore, this
research tries to highlight some rural innovations in different sectors such as
agriculture, telecommunications and the banking sector.

3.2.1 Agriculture Sector

The degree of urbanization increases from 27.82% in the 2001 census to

31.16% in the 2011 counts. This could be explained by the transformation of
some rural areas near the cities and by the definition of the census. Any
discussion of the rural population and the eradication of poverty and
development are directly related to the future of Indian agriculture. This is
especially true for India, because the population is still the pillar.

 Cold Chain Logistics: In India, the greatest success of cold chain logistics
is packaged milk. You can buy milk from regional and national brands all
over the country. The mere availability of new technologies in agriculture
has increased the production of agricultural products, and companies
such as ITC and Wal-Mart, PepsiCo, etc. They buy these products
directly from farmers. Many perishable horticultural products, such as
tomatoes, apples and peas, can not last long unless stored in a controlled
climate. For example .Safal

 Innovative -Supply Chain: Keggfarms Pvt. Ltd. is one of the oldest poultry
organizations in India, founded in 1967. She is known as a pioneer of the
genetic selection of poultry populations in India. The company is
dedicated to the development of poultry populations for rural areas under
the brand name "Kuroiler". Keggfarms offers chicks through direct
marketing to rural households, small farms and state governments
through a unique and innovative supply chain. Keggfarms provides

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 knowledge, experience and products to all, organizations or authorities
that want to promote and improve poultry production programs in villages.
This unique supply chain affects around one million poor rural
households, especially women. In addition to the rural poultry program,
high-quality, almost organic eggs labeled "KEGGS" were introduced in
the national capital region.

 ITC e‐Choupal: It is specially designed for Indian farmers. Thanks to and

Choupal, farmers who live in remote areas of the country and do not have
direct contact with consumers can contact directly. It provides a
purchasing system that gives the farmer access to the latest and most
up-to-date information (local, national and international) on different
farming practices. It provides farmers with real-time information and
adapted knowledge, allowing them to make better decisions and have
direct contact with the customer, reducing waste through the broker's
distribution channel. Choupal is already the largest initiative among
Internet interventions in rural India. And Choupal is represented in 36,000
villages in almost 6,000 kiosks in nine states. ITC (Indian Tobacco
Company) plans to further expand the generator concept in 15 states in
India.

 Hariyali Kisaan Bazaar: In rural India, farmers have traditionally only had
limited access to quality inputs to their fields and households. The Indian
conglomerate DSCL has launched a unique initiative for rural businesses
to address this issue by establishing a retail chain in rural India with the
goal of:The farmers and their families. With its growing network of
branches, DSCL can connect with farmers and provide them with a
variety of agricultural services, including improved resources, agronomic
support, fuel, banking products and consumer products. , The outlets also
buy part of the farmers' production at harvest time. By using the products
and services offered in the shops, farmers can improve the quality of their
harvest and gain access to a network of useful resources in an
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 environment previously considered to be fully linked to the benefits of
agricultural research. and technology used in other parts of the world.
The World DSCL develops strategies for how society can benefit from
these new connections with millions of rural indigenous people.

 Gyandoot: It was founded in January 2000. It is a module based on e-

government for citizens of rural areas. The project was initiated by the
Madhya Pradesh government. Gyandoot meets the needs of villagers by
providing information on current rates of agricultural products and
property taxes. Each information booth Gyandoot has about 15
panchayats and 30 villages. The module is designed to provide people
with a profitable and sustainable delivery model.

3.2.2 Telecom Sector

In addition to agriculture, a new revolution reduces the distance and barrier

between rural and urban markets. Telecommunications is the new revolution. In
the first decade of the 21st century, the telecommunications revolution
symbolized urban phenomena, since telecommunications companies had found
it cheap. In the cities, but in the second decade, companies such as Airtel,
Vodafone and Idea recognized the importance of rural consumers increasing
their income and profits. The penetration of mobile technology is leading to a
census of more than 500 million per week, more than 500 million. The number
increases week by week as more and more villagers use a cell phone to get
Pruning and weather information. Powerful entertainment tool, you can transfer
money. Mobile is used to distribute new products through SMS such as Safal.
According to the Compound Growth Rate (CAGR), the number of rural
telecommunications customers has reached 282.23 million in March 2011 or
45.71 million in the 2006-2007 period. The remaining 558 million rural
inhabitants of 840 people have not yet been exploited. This was an ideal victory
situation; Mobile manufacturing companies are interested in innovative solutions
to improve their size. To address the low-income segment, especially in rural

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areas, companies are trying to meet the growing demand for low-cost phones
launched by Nokia due to frequent power outages in these areas.

 BSNL: BSNL is poised to play an important role in the rural market with
low-cost tablets, as telecom service providers have partnered with Goa,
the Teracom-based telecommunications equipment manufacturer, to
launch the large tablet for telecommunication tablets.

 Tata Teleservices and Ossian Agro Automation-Nano Ganesh: The

management of irrigation pumps and water supply systems is a difficult
and expensive task for many farmers in developing countries. The time
and energy that farmers spend on watering their plants are often
associated with a time that could otherwise be used for family and
community commitments. This also affects their safety during the night
when they are more exposed to predators. A new innovation from Ossian
Agro Automation, based in India, in partnership with Tata Teleservices,
has launched mobile phones called Nano Ganesh to revolutionize the
way farmers manage their water supply systems. and outside With the
help of Nano Ganesh, farmers can save water and electricity more
efficiently. This minimizes the environmental and financial costs of
agriculture. In fact, the product description suggests that farmers can
cover the cost of the technology in just eleven days by saving water and
electricity that they will generate.

 DOT to subsidies Rural Mobile Telephone: The Telecommunications

Division has begun working on a proposal to provide rural people with a
one-time subsidy for a new mobile connection, with the department
paying 20% of all mobile phone bills, which are less than Rs 300 per
month. . Because all telecommunications activities pay 5% of their gross
annual income adjusted to US dollars. This system can be interesting
because rural customers can expect increased use of their phones.

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 3.2.3 Banking Sector

 Kisan Credit Card: The Indian government has taken several initiatives to
strengthen the rural credit supply system to meet the growing needs of
the lending sector. Significant innovations introduced in recent years to
improve the flow of agricultural credit include the Kisan credit card
system, the reduced agricultural credit, the simplification of credit policies
and the modernization of the credit union. This policy has highlighted the
progressive institutionalization in order to provide farmers with adequate
and adequate credit, especially for small-scale peasants and the most
disadvantaged sectors of society, to introduce modern technologies and
practices. Improve agricultural production to increase agricultural
production and productivity. The purpose of the Kisan credit card is to
provide credit to farmers as quickly as possible and in an informed
manner. The KCC program has been implemented by banks across the
country since 1998-1999. KCC is a simple booklet with cards and sperm.
Farmers can contact the nearest branch of a bank or PACS.

 HDFC: HDFC opens 87 rural offices in the states of Punjab and Haryana
in one day. HDFC Bank has an alliance with Indian Oil Companies Ltd.
announced. There, Kisan Kendra, a rural gas pump company, will act as
correspondent for the bank. This is a great thing that combines the
strengths of the oil distribution company and the bank with modern
banking services.People living in semi-urban and rural India that are not
accessible through the current branch network.

 Govt Plans to Cross Merge RRB: The government is ready to merge and
bring together regional rural banks (RRBs) from eight states to create
economies of scale and promote the program for financial inclusion.
Cross Fusion is a mix of RBIs that move between several state rural
banks. Over the next four years, banking activities in rural areas are

Page 45
 expected to expand into more than one banking machine, as banks
expand their rural and semi-urban networks towards greater financial
inclusion.

 Union Bank of India ties with Jain Irrigation: Partner of the farmers for the
drip irrigation system. The association with Jain Irrigation will provide
farmers with simple credit facilities that will allow them to obtain a greater
and faster return on their investment and better manage infertile land and
grow high yielding crops in addition to sensitization programmes.

 NABARD cut refinance rate, Launches crop Lots: Nabard lowered the
interest rate of refinancing banks for investment loans. The refinancing
rate has been revised to 20 basis points after a resolution of the NABARD
Board of Directors in New Delhi. The bank has approved three specific
potatoes -Hoogly projects, from Karnal- tomatoes and onions - Nasik.

 Corporation Bank to set up Farm Lending: they launched an annual

planning campaign to promote agricultural credit and the financing
initiative in all its sectors. The commercial bank will focus on supporting
agricultural families, especially those with weak and marginal interests,
weaker groups, minorities and self-help. Agriculture and related activities
will continue throughout the banks.

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 4. Case studies

4.1 Dabur

Dabur: Implementation of Reach Extension Technology

Dabur is the largest in the world. Ayurveda and natural health care Business,
with annual sales of more than $ 1 billion and Market capitalization of 4 USD
Billion,it is the fourth largest in India w.r.t. Fast consumer goods Business.
Dabur's offer is very popular in rural markets. Products such as Chyawanprash,
Amla Hair Oil and Hajmola Digestives have been developed on the basis of the
knowledge acquired by the company from consumers in rural areas.

Sales in rural areas are particularly important for Dabur. In fact, about 47% of
sales come from rural markets of less than 50,000 inhabitants. Society occupies
the third place among rural actors. 31% of sales in rural areas are generated by
direct sales networks. Dabur needed to increase its direct reach to increase
revenues in the rural market and create a higher sales margin Categories such
as fruit juice, oral care and home care.

To expand its reach, Dabur launched the Double project in 2010. The objective
of the project was to double sales in the rural market and increase the
penetration of distributed non-passive categories. The initiative was aimed at
towns with more than 3,000 inhabitants, a market that no other consumer goods
company has reached directly. Initially, Dabur focused on high-potential districts
in ten concentration areas, including Uttar Pradesh and Maharashtra, which
account for 72 percent of the production potential of rural consumer goods.

Barriers to Scale:

Insufficient distribution structure: Dabur's organizational and sales structure for

urban markets was not sufficient for rural distribution. The company was divided
into three areas: the house and the personal care, health and foods with a
dedicated sales team for everyone in urban markets, To Rural distribution, and

Page 47
structure. This would dilute the economies of scale as many suppliers of the
company would turn to the same rural point of sale. Reach the local level
through local operators instead of these service providers outside was another
challenge. Rural commercial ecosystems were so locally specific that a local the
distributor was needed despite its use in large The numbers would be
expensive.

Pressure to generate elevations in Income: the Indian rural landscape It is

scattered and the economic potential varies considerably from landscape to
landscape. The southern Maharashtra, for example, is quite wealthy. Dabur
knew, however, that according to historical sales, some districts of that state
were never delivering the expected return in the investment. One size fits all
Approaching a state would never work. The company had to select the areas
within Every Dabur state had to generate additional income through rural outlets
where they were already a strong player. The company had to increase the
village level Consumption to increase sales at the point of sale beyond current
efforts beyond the twin project. Dabur also had to hire staff who were willing to
work and travel to remote areas.

Limited demand for high margins Categories’: Another obstacle for the company
was the need to successfully market high margin categories to justify the
additional costs of a rural direct marketing channel.

Strategies for Success:

Market prioritization with GIS technologies: double project It was divided into two
phases. Phase 1 was started at the UP and Maharashtra to confirm the
sustainability of the idea. In Phase 2, Dabur focused on the I still had eight
states Lessons learned and used by Phase 1 to lead the effort. The initiative
began to prioritize 287 districts. Using a GIS tool the team was able to select
districts, based on such properties like the presence of a bank, Per capita,
income and population and every month distribution. The network has received

Page 48
a new cluster, new destinations and route planning, Optimized software Work in
different regions.

Change in sales structure, to improve the scope: structure your distribution and
avoid. Contacts of several companies in an exit, Dabur decided. Use an
umbrella for all yours Categories and developed a Distribution structure of two
layers. Supermarkets operated by a key city in a neighbourhood and a Covered
feeder undercover Smaller areas supermarkets got the inventory directly from
Dabur and did not appear Any local distribution locally The distribution was
made by sub-states which came in villages with up to 3,000 inhabitants. In order
to avoid parallel distribution, the Super Distributors were only allowed to supply
sub-shareholders through the use of the Company. Transaction Software
Storefronts served outlets in major cities. A rural district administered the system
and administered the three categories and the stock.

Recruit local representatives and offer unique career paths: enable direct
contact with the markets from the beginning and generate additional sales, hired
Dabur many rural sales Representatives of third parties (RSR) pay these
administrators supply the villages within 100 km of their headquarters and are
responsible for orders and orders & Ensuring the realization by the resellers.
Dabur has created her own career paths for RSR to keep her motivated to offer
advice and training.

Use technology around Advantage: To Monitor the workforce, Dabur uses a lot
of work, Mobile application technology- RSR, They are a bit expensive. Instead
they used a tablet that records the activity daily. The variable payment structure
depends on the RSR updates. The tablets also provide information about
transportation routes, routings, and order status. Applications also provide
access to sales history and inventory at the level of sub-stockists.

Incubation of the request: generate Sales by category with less. Penetration had
Dabur Increase the demand of the people. To carry out a customer analysis, the
investigation has discovered the company, what rural customers wanted Quality

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notifications that stress characteristics. News- It is necessary to address the
benefits to solve. The questions and more importantly, involve people. Symbols,
colors and logos were the most common form of brand identification. Dabur has
tested liaison programs for rural customers through Haats and Melas to give
consumers the opportunity to discover Dabur products. The company has also
targeted opinion leaders and health workers to raise awareness and increase
penetration in the categories. Like Chywanprash and baby oil. In addition, Dabur
suggested the mobile service. Health camps provided Medical examinations and
advice.

Impact:

In one and a half years of the Project double reached 24,000 of the 33,000
target villages with Populations over 3000 in the top 10 states. In a mature
State, like Maharashtra, The program has collected 100 Coverage in the
villages, with more than 3000 inhabitants and made progress in Villages more
than 3000 population in Districts with high potential. In the current year the rural
enterprise because Maharashtra is coming in a rate of more than 50 percent
superior to the urban markets and has gone beyond the urban Markets for three
consecutive years the years Extended coverage in cities over 3000 Residents
led the accelerated pace Growth Rural Growth Index The urban growth was 135
against The expected sales revenue was more than twice as disgusting Margins
improved thanks to a The product range is much better.

4.2 Tata Motors

Tata Motors: Fast scale up of agricultural utility vehicle, Business through a

predominantly variable cost model

In 2010, Tata Motors Limited (TML), the largest Indian automobile manufacturer
analyzed and had identified the need for aggressively attack the rural markets,
accelerate sales growth, such as well as keeping his lead Position in advertising

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Vehicle segment. With more than 70%.the Indian population residing in rural
markets are unique. It is the "battlefield" of the future, For TML as for most
others Marketing companies in India.

The moment was well chosen, investments from the Indian government,
Creating a rural infrastructure and employment, leading raise in rural income
and Consumption makes rural markets.an interesting opportunity to do so ,TML
To take advantage of this effectively Emerging segment, launch of TML’s Project
Neev literally means “Foundation" in Sanskrit), with to win an eye for the first
place advantage in these markets.

Barriers to Scale:

Significant access to the campaign Markets: Although small TML Commercial

vehicle (VCS) Portfolio was considered ideal worthy of the rural markets with his
Prices and attractive points, Employment potential, the distribution network of
the company, that was mostly urban and semi-urban nature (located Typically in
cities / towns with more than 100,000 inhabitants) it was seen as a bottleneck for
Growth of these rural markets.

Limited understanding of rural customer: No direct contact. Access meant too

had limited structured trials of understand, define and educate the target
customer segments in rural areas geographies, in value Offer or commercial
potential invest in an MCS. At the View of the customer, lack of Proximity to the
dealer and the absence of The "trusted" advisers meant that they could never
really explore the option to rate a SAM as a mean of Livelihood / business
opportunity.

Access costs: Wide matrix Spread of the rural population and the high cost of
access to these Geographies, dealer coverage to historically limited Villages /
room where the Reseller had the presence and at best About 50 km.

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Financing questions: NBFC and Banks were also careful in Commercial Vehicle
financing in these geographical areas the low availability of relevant
documentation, high Cost of scope and "collections” Associated challenges.

Strategies for Success:

All the above factors, which historically produced rural markets, an unprofitable
segment that can be used you have to develop one innovative approach to TML
Marketing strategy in rural areas, instead of simply changing the existing city
model. The main goal is Penetrates quickly into rural markets And at the same
time the sustainable management low costs for TML and his Dealer The solution
focused, In the following areas:

Better understanding of rural customer: TML performed Personal interviews with

more than 2000 available rural users of SCV receive one better understanding
of yours Needs, preferences and purchase. Behavior Armed with ideas these
talks, the project team identified three Target customer segments:

 Unemployed and young unemployed old man between 21 years old and
30, who saw running an SCV as a viable medium Independence.
 The big farming families, who could invest in a facility? SCV, second
source Income for the family.
 Merchants, small businesses and schools that could use these vehicles
for prisoners and Transportation of goods by third parties, Students or
people in one Radius from 10 to 50 km.

Access to remote rural areas Locations: Dealers arrive in rural apartments, has
been extended. Through two indirect channels. A network "on the road" It was
built by the local level Commitment to the government and nongovernmental
organizations Participation in rural development. This helped give access. Group
of rural talents that were called "Tata Gram Mitras" (TGMs) and acted as "trust"
Rural client advisor They were widely provided Training to work with TML as an
extension of the reseller Sales team on commission. Base for the generation of

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leads and their respective tehsils and talukas this channel was completed by an
exit Network of business partners. With an established rural reach, this served
as the second Great channel when feeding. TML reseller network and they were
retained by 'Tata Kisan Mitras (TKM).

Build these two forms of full indirect channels, the direct sales channel helped
set up a micro presence for LML Sub district (tehsil / taluka) In an accelerated
time.

Activation of rural demand: Workers in the indirect area. Channels were formed
deliver a customized sale Pitch for each target customer Segment, activation
request usually focused on the use the component "independent work", and
position the TML, SCV as The bag as another option- Livelihoods for rural youth.

Rural coverage costs: The balance of former indirect channels has been
structured Ensure fixed costs for TML and dealers were limited to Minimum and
a larger part of the cost of the chain was financed by the sale of vehicles
Incentives carried out. These in turn guaranteed rural sales generated
progressive right to profitability and not seen since its inception as only long-
term investments.

Financing rural area vehicles: Warranty Availability of vehicle financing on a

rural level the project established team relations with district banks, NBFCs,
national lenders and government Agencies At the same time TML internal
financial part new plans that have accelerated The financial approval process.

Rural organization and Technology: Effective Mentor train and manage the rural
above Network and its requirements, Appointed TML dealer Rural District
Manager (DRM) for each district. Inverted LML in the appointment of a rural
company Coordinator (RBC) and area Sales manager to feed the rural, Network
Components Sales and Distribution CRM technology systems were also
available aligned in TML to capture and Support sales processes in rural areas.

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Over time with the development of local demand and Confidence in business
ability, the branches of the distributor are in work and Open for everything in the
Long-term model.

Impact:

Speed in the rural market: The results were significant and fast construction and
operation of a Network of rural and young youth, rural business network It
provided quick access to the campaign. Markets currently in use six states have
the rural enterprise In addition more than 20 percent. Volume of TML SCV
vehicles, this one here currently, it is in use nationwide and it has an annual
increase and Adding a Potential of more than 70,000 vehicles and an income of
$ 500 million.

Continuation of the social agenda: while the main goal of the program should
look like rural markets so profitable, commercial proposal put into use .Rural
youth as sales agents and Creating rural entrepreneurship Possibilities in the
vehicle The property as well as the waterfall. Impact on the rural economy for
the service request, Mechanic, fuel helped to move forward in the social agenda
as well.

Project Neev has contributed and looking immeasurably Long-term strategy of

TML. During the most significant advantage was the creation of a first engine
Advantage for your advertising Vehicles with rural benefits, other benefits
include more competitive distribution partners with an extensive network and
access to great talent and created a pool for future employment Within TML and
its resellers.

4.3 Novartis

Novartis: Building a Stakeholder Ecosystem

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Novartis is a world leader in pharmaceutical products with almost 115,000 more
employees from 140 countries. Novartis India Limited employs a few 4,500
employees and prospects in the country in a series of Therapeutic areas,
including pain management, organ transplants, cardiovascular, immunology,
Diseases and oncology.

Investigation of Novartis discovered a lack of information in rural areas Regions.

Villagers often do not They understand what diseases they have Maybe you
have or what options you have had Available to manage because of the high
cost of the visit of a doctor, often villagers Treatment suspended until illness had
reached an advanced stage.

Aiming to Close the gap and improve the Health Service for marginalized arms,
Novartis Has launched Arogya Parivar (Hindi) that is, a healthy family) in 2006.
The company was then founded and the commercialization of commercial
weapons supported the success of the program. The social arm was loaded with
the generation of demand; the Commercial unit with guarantee of the offer of
treatments. Arogya Parivar offers a complete offer Health solution and that's
anchored in the "4As" framework:

 Awareness: raising Disease awareness and Educate doctors about

Novartis treatments.
 Adaptability: adaptation of the Product portfolios and to use marketing
techniques of local influencers.
 Accessibility: increase Distribution by premises Sub-distributors and
Health camp for doctors.
 Affordability: provision small personalized packages Drugs with less Price
points and innovative medical equipment solutions.

Barriers to Scale:

Limited health awareness: Since then, Novartis has chosen its approach. Single,

Page 55
he could not resort to implement tested models Arogya Parivar Initiative. In
addition, rural areas do not Medical records to help. Business identify health
Subjects of the greatest importance. In addition, awareness of Health care in
rural areas was low, hard to reach and educate the rural population.

Lack of adequate medical attention Ecosystem: In the existing system Doctors,

educators, clinics, Hospitals, medical devices. Companies and pharmacies was
not connected and inconsistent in rural areas, the absence of basic health
facilities in Some villages even showed up. More obstacles and Novartis, It had
to have a lot to do with that. The actors of the ecosystem and build long-term
relationships ,Manage expectations and that was not easy.

New treatments with Limited research and development: To avoid significant R

& D costs, Novartis had to develop affordable Treatments without resorting to
your R & D laboratories. From the offer in rural areas, the regions were indirect
and There were no wholesale channels to ensure that treatments are -they are
available, although Novartis. Demand successfully stimulated.

Strategies for Success:

To create a coherent ecosystem: Novartis has established networks of small

hospitals, doctors, Chemists, diagnostic centers and Patients Each cell is
composed of Educators and supervisors of health. Health educators are trained
in Disease awareness and superior preventive health, they are the sales force of
the initiative and Work with pharmacies, doctors, Hospitals and NGOs"Health
Camp" in which the villagers can be treated and provided Preventive care .The
Company pushes the limits now, this ecosystem through development.
Unconventional associations under the motto "Bring Nearest health
infrastructure to Indian villages ", partner of Novartis. With important medical
devices bring selected companies, cheap equipment that it is suitable for rural
markets for putting this idea into practice, Novartis provides loans for Doctors
through associated banks.

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Raise awareness about health: Awareness was central For the success of the
program. To achieve this, health educators conducted About 130,000
manufactured Meetings in 33,000 villages. Every year these meetings provided
product information and Therapeutic approaches that villagers visited regularly.

Impact measurement: help Soften the ecosystem, Novartis, and Reference

cards introduced at Villagers in health education Meeting and the villagers gave
the cards to the doctors during Visits to the sales team. The collected cards –
which then founded a medical patient on the left - and he used to pursue Health
effectiveness -Stock. Because Novartis is concentrated to women and
childrens’Health, women's health recruited. Educators with the woman Patients
can feel comfortable.

Develop unconventionally associations: Increase Penetration of the most recent

Medical technologies in rural areas was members of Novartis. With important
medical devices Companies including GE launched innovations like favorable
electrocardiogram (ECG) machines. Novartis also establish credit facilities for
the doctor's education and The teams as well as the doctors and Supplies for
pharmacists.

Customize the product Portfolio: The Company has developed a portfolio of

custom products that the villagers could afford it. Novartis- It offers small
packages of medicines with low prices and printed package information in local
languages. That too Some of its products have been reorganized, Satisfy the
needs of rural markets.

Set up a dedicated Sales structure: Ensure the availability of your products;

Novartis has created a dedicated space and separate distribution Structure.
Distribution conventional network supply Channels like pharmacies, Chemist
and wholesaler - as well as the subject of doctors that offer treatments directly to
Patients after diagnosis.

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Impact:

Arogya Parivar sales have increased 25% since the beginning in 2007, and the
program collapsed, even in the first 30 months. Novartis now offers access to
Medicines to more than 42 million People in 33,000 villages in India The
initiative includes 250 Cells in 10 states and at 530 Educator and
supervisors/cares Also serves nearly 39,000 doctors and just over 29,000
pharmacies. The product portfolio includes 11.Therapeutic areas with portfolio of
80 storage units (SKU) it is without prescription Treatments and vaccines.
Novartis has great expectations for the initiative to be generated US$ 4.8 million
in 2013.

The Benefits (Social) also, it was important. Arogya Parivar it is the largest
private sector Health Initiative in India. In the 2012 only more than 2.7 million
Villagers have benefited from health, Educational and health camp. The initiative
also facilitates Exchange of knowledge between about 60 000 rural doctors and
Pharmacies led by the success of the program in India, Novartis is expanding
it.including other emerging markets like Kenya, Indonesia and Vietnam.

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 5. Conclusion

So looking at the challenges and opportunities offered by rural markets to

merchants, and the manufacturers, we can say that the future is very promising
for those who can, understand the dynamics of rural markets and make the most
of it. The radical change in the attitudes of marketers towards emerging and
growing rural markets is mentioned because they can impress the 750 million
consumers in rural areas in nearly six hundred thousand villages in rural India.

Essentially, the scientific approach is to understand the market opportunities for

rural products. With the country's development priorities and the development of
a strategy in which rural industries have a very important role to play. While rural
products are forced to be part of the global supply chains, these products not
only have to adapt to the changing taste of the National market, but also in
accordance with the development of flavour in the international market. This
process is essential to investigate market links and develop the group's
capacity. Open focus and constant dialogue with the stakeholders of the rural
enterprise. This process should ensure the participation of the rural population
as consumers and producers in the process of globalization. With better
livelihoods and global access to markets and the true challenge of sustainable
construction, the connection with the market starts here.

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