Importance of Rural Marketing in India

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Why Rural Market is so Important? Rural market has following arrived and the following facts substantiate this. • 742 million people • Estimated annual size of the rural market • FMCG Rs 65,000 Crore • Durables Rs 5,000 Crore • Agri-inputs (incl. tractors) Rs 45,000 Crore • 2 / 4 wheelers Rs 8,000 Crore Opportunities: • Infrastructure is improving rapidly. • In 50 years only 40% villages connected by road, in next 10 years another 30%. • More than 90 % villages electrified, though only 44% rural homes have electric connections. • Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD. • Social Indicators have improved a lot between 1981 and 2001 • Number of “pucca” houses…show more content…
Higher sales growth has been one reason why the major players have been able to put up a reasonable show in recent years. But what probably brought about the dramatic turnaround in financial performance in 1999 is the sharp improvement in profit margins in the business. Price fluctuation The selling prices of major detergent brands were hiked (much of it in the mid-priced to medium segments) by between 9 percent and 25 percent in recent times, in response to rising production costs. For instance, price increases in the case of brands such as Nirma Popular and Wheel Green were around 8 percent. Selling prices of products in the mid price segment, such as Ariel Supersoaker, were hiked 20 to 25 percent, while that of those in the premium end, such as Surf Excel, Henko Stain Champion were raised 10 to 12 percent. INDIAN DEMAND ISTMA (Indian Soaps and Toilet Manufacturer Association) has estimated the Indian detergent bars and powders demand to be in the region of 3.5 million tonnes per annum Per capita consumption of detergent on all India basis is around 2.5 to 3 Kg, which could vary between different regions depending upon the prevailing economic and social conditions. Likely growth rate in demand 7 to 8% per annum new product Different Strategies Rural markets, as part of any economy, have untapped potential. There are several difficulties confronting the effort to fully explore rural markets. The concept of rural markets in
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