case study of rural marketing

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Rural Marketing Explained With Examples

Rural marketing is a dynamic field that involves developing, pricing, promoting, and distributing products and services specifically tailored to meet the needs of rural consumers. It aims to improve the standard of living in rural areas by increasing awareness and access to new and innovative offerings. Understanding rural consumer behavior and implementing effective rural advertising strategies are key to successfully tapping into this market.

In this article, we will explore the concept of rural marketing, its history, challenges, strategies, and current trends, while highlighting successful examples from leading brands.

Key Takeaways:

Rural marketing involves catering to the specific needs of rural consumers through tailored products and services.
Understanding rural consumer behavior and implementing effective rural advertising strategies are crucial for success.
Rural marketing has four development phases, with the emergence of the global market being the most recent.
The 4As of rural marketing are availability, affordability, acceptability, and awareness.
Successful rural marketing examples include Coca-Cola’s distribution plan, Hero Honda’s “servicing on wheels” initiative, and Unilever’s launch of affordable sachets.

History of Rural Marketing

The history of rural marketing can be divided into four phases, each representing significant developments in the marketing of agricultural products and industrial inputs in rural areas.

Phase 1: Agricultural Products and Industrial Inputs

In the first phase, rural marketing primarily focused on agricultural products and essential industrial inputs. It excluded heavy and durable products that were not relevant to the rural consumer base.

Phase 2: Influence of the Green Revolution

The second phase of rural marketing was heavily influenced by the advent of the Green Revolution. This movement brought about a transformation in agricultural practices and infrastructure, resulting in increased productivity and improved living conditions in rural areas.

Phase 3: Industrial Sector and Increased Competition

The third phase witnessed the growing importance of the industrial sector in developing countries. This shift led to increased competition in rural markets as companies sought to expand their reach and tap into the untapped potential of rural consumers.

Phase 4: Emergence of the Global Market

The fourth and most recent phase marked the emergence of the global market. Factors such as the information revolution and urbanization played a significant role in shaping this phase. As rural areas became more connected and integrated into the global ecosystem, rural marketing strategies had to adapt to the evolving consumer behavior and market dynamics.

This historical overview highlights the evolution and growth of rural marketing, influenced by agricultural advancements, industrial development, and global trends.

Concept of Rural Marketing

The concept of rural marketing revolves around the marketing mix , which includes product, price, place, and promotion. However, in rural marketing, the focus is on the 4As: availability, affordability, acceptability, and awareness.

Availability: Providing consistent product availability in remote rural settings is crucial in rural marketing. Rural consumers should have easy access to products, ensuring that they are readily available when needed.
Affordability: Targeting price-sensitive rural consumers is essential. Companies can introduce smaller packages at cheaper rates to make their products more affordable and accessible to rural consumers with limited purchasing power.
Acceptability: Understanding and meeting the unique needs of rural consumers is vital. Product design and features should be tailored to cater to the preferences, lifestyle, and cultural aspects of the rural population.
Awareness: Grabbing the attention of rural consumers through effective communication and entertainment mediums is key in rural marketing. Marketers need to leverage the communication channels and platforms readily available in rural areas to build awareness and create brand recall.

This conceptual framework guides marketers in developing effective strategies for rural marketing. By focusing on these 4As, companies can better engage with rural consumers and meet their specific needs and preferences.

Challenges in Rural Marketing

Inaccessibility: One of the major challenges in rural marketing is the inaccessibility of scattered villages. Due to the lack of proper transportation infrastructure, reaching rural areas can be difficult and time-consuming.
Unprofessional Retailers: Finding and reaching the right retailers in rural areas can be a challenge. Many retailers in rural areas are unprofessional and lack the necessary skills to effectively sell products. This can lead to inefficiencies in distribution and hinder the reach of products to rural consumers.
Limited Media and Communication: Rural areas often have limited access to media and communication channels. This makes it challenging for marketers to effectively reach and communicate with rural consumers. Traditional advertising methods may not be as effective in rural markets.

Overcoming these challenges is crucial for successful rural marketing. Marketers need to find innovative ways to navigate the inaccessibility of rural villages, identify and partner with reliable retailers, and utilize alternative communication channels to reach rural consumers effectively.

Strategies for Rural Marketing

Successful rural marketing requires the implementation of specific strategies to effectively reach and engage rural consumers. By adopting the following strategies, marketers can enhance their rural marketing efforts.

1. Effective Marketing Communication

Given the limited reach of traditional media in rural areas, it is crucial to explore alternative communication channels. Leveraging local influencers, such as community leaders or popular figures, can help in establishing trust and credibility among rural consumers. Additionally, utilizing mediums like local radio stations, outdoor advertising, and community events can effectively disseminate marketing messages to the rural population.

2. Optimized Distribution Channels

Optimizing distribution channels is vital for successful rural marketing. Marketers need to understand the unique challenges of rural areas, such as limited transportation infrastructure and scattered villages. Establishing a well-designed network of retailers strategically located in rural areas can ensure accessibility and convenience for rural consumers. The focus should be on efficient logistics to ensure timely delivery and availability of products in rural markets.

3. Product Customization

Rural consumers often have unique needs and preferences, which necessitate product customization. Marketers should conduct thorough research to identify the specific requirements of rural consumers and develop products tailored to their preferences. This approach not only enhances consumer satisfaction but also helps in capturing a larger share of the rural market.

By implementing these strategies, marketers can overcome the challenges associated with rural marketing and successfully tap into the immense potential of rural consumers.

Research in Rural Marketing

Research plays a crucial role in understanding rural consumers and their behavior in the context of rural marketing. By conducting extensive research, marketers can gain valuable insights into various aspects of the rural market, including consumer preferences, purchasing behavior, and market segmentation. This knowledge can inform the development of effective marketing strategies and enable businesses to connect with rural consumers in a meaningful way.

Rural Market Segmentation

Market segmentation is an essential step in rural marketing research , as it helps identify different consumer segments within the rural market. By segmenting the market based on demographic, geographic, and psychographic factors, marketers can tailor their strategies and offerings to meet the specific needs and preferences of each segment.

For instance, a company may find that there are distinct differences in consumer behavior between rural consumers from different regions or income groups. By understanding these differences, marketers can develop targeted marketing approaches that resonate with each segment, effectively increasing the chances of success in the rural market.

Purchasing Behavior Insights

Research can provide valuable insights into rural consumers’ purchasing behavior, helping marketers understand the factors that influence their buying decisions. This knowledge is crucial for designing products, setting prices, and creating effective promotional campaigns that align with the needs and aspirations of rural consumers.

For example, research may reveal that rural consumers prioritize affordability and value for money when making purchasing decisions. Armed with this insight, marketers can focus on offering cost-effective products or bundle deals that cater specifically to the budget-conscious nature of rural consumers.

Designing and Promoting Products

Research in rural marketing facilitates the effective design and promotion of products in the rural market. By studying consumer preferences, marketers can develop products that are tailored to the unique needs and aspirations of rural consumers, making them more appealing and desirable.

Research can also provide valuable guidance when it comes to choosing the right communication channels and promotional strategies to reach rural consumers effectively. For example, if research reveals that rural consumers rely more on word-of-mouth recommendations and local community networks, marketers can focus their efforts on building strong relationships with influential local figures or implementing grassroots marketing initiatives.

Current Trends in Rural Marketing

Rural marketing is undergoing significant transformations due to the changing trends and advancements in technology. This has provided new opportunities for marketers to reach rural consumers and promote their products. Let’s explore some of the current trends in rural marketing:

E-commerce Platforms and Digitalization

The rapid digitalization has revolutionized the rural marketing landscape. The rise of e-commerce platforms has facilitated easier access to products and services for rural consumers. It has also eliminated geographical barriers, allowing consumers in remote areas to make purchases conveniently. With digitalization, rural consumers can now access a wide range of products and compare prices before making a purchase. This has opened up new avenues for businesses to tap into the growing rural market.

Social Media Engagement

Social media has become an integral part of rural marketing strategies. Platforms like Facebook, Instagram, and Twitter are being leveraged to engage with rural consumers, create brand awareness, and promote products or services. Marketers are utilizing targeted advertising campaigns to reach specific rural demographics and build a strong online presence. Social media influencers from rural areas are also playing a crucial role in influencing consumer behavior and driving product recommendations.

Emphasis on Local Sourcing

An emerging trend in rural marketing is the focus on local sourcing. Consumers in rural areas are showing increased interest in products that are locally sourced and support artisans and farmers from their own communities. This trend aligns with the growing importance of sustainable practices and ethical sourcing. Marketers are leveraging this trend by highlighting the local origins of their products and showcasing the positive impact their purchases can have on rural communities.

In summary, rural marketing is evolving with the advent of digitalization, e-commerce platforms, and social media engagement. Marketers are adapting their strategies to leverage these trends and tap into the vast potential of the rural market. Additionally, the emphasis on local sourcing reflects the changing consumer preferences and the need for sustainable practices in rural marketing.

Successful Examples of Rural Marketing

Several companies have successfully implemented rural marketing strategies to tap into the vast potential of rural markets. These examples demonstrate the effectiveness of targeted marketing campaigns in reaching rural consumers and satisfying their needs.

HDFC Bank’s “Festive Treats” and “Har Gaon Hamara” Campaigns

HDFC Bank has leveraged rural marketing to create awareness and provide special offers on banking products to rural customers. The “Festive Treats” campaign offers exclusive benefits and discounts during festive seasons, encouraging rural consumers to avail themselves of banking services and products. The “Har Gaon Hamara” campaign focuses on promoting financial literacy and accessibility by establishing bank branches in rural areas, making banking services easily available to the rural population. These initiatives have not only helped HDFC Bank expand its customer base but have also improved financial inclusion in rural communities.

Hyundai’s “Experience Hyundai” Campaign

Hyundai implemented the “Experience Hyundai” campaign to engage rural customers and showcase their cars in villages and smaller towns. This campaign involved setting up experiential zones where potential customers could interact with Hyundai vehicles and experience their features firsthand. By taking their cars directly to rural areas, Hyundai successfully created brand awareness, built trust, and increased sales among rural consumers. The “Experience Hyundai” campaign demonstrates the importance of localized marketing and understanding the unique needs and aspirations of rural customers.

Dabur’s “Khushion Ki Doli” Campaign

Dabur, a leading consumer goods company, launched the “Khushion Ki Doli” campaign to promote its home care and personal care products in rural areas. This campaign focused on bringing joy and happiness to rural consumers’ lives by providing affordable and high-quality products. Dabur adopted a targeted approach by customizing their product offerings to cater to the specific needs and preferences of rural consumers. The “Khushion Ki Doli” campaign exemplifies how product customization and a deep understanding of rural consumer behavior can drive successful rural marketing initiatives.

Coca-Cola and Pepsi’s Rural Marketing Efforts

Both Coca-Cola and Pepsi have recognized the immense potential of the rural market and have made concerted efforts to penetrate and capture this market segment . They have expanded their distribution networks in rural areas to ensure wider availability of their products. Additionally, they have deployed innovative marketing strategies that resonate with rural consumers. For example, Coca-Cola’s “Thanda Matlab Coca-Cola” campaign and Pepsi’s “Yeh Dil Maange More” campaign have successfully connected with rural consumers by leveraging emotional appeals and reinforcing brand loyalty. These efforts reflect the importance of understanding rural consumers’ preferences and using localized marketing techniques to engage with them.

Rural marketing is a crucial factor in driving business success by tapping into the vast potential of rural markets. With the right strategies, marketers can unlock opportunities and reach rural consumers effectively. By understanding consumer insights and implementing targeted marketing campaigns, companies can cater to the unique needs and preferences of rural consumers.

Real-world examples of successful rural marketing initiatives demonstrate the impact of these strategies. For instance, HDFC Bank’s “Festive Treats” and “Har Gaon Hamara” campaigns created awareness of financial services and provided special offers to rural customers, resulting in increased market penetration. Hyundai’s “Experience Hyundai” campaign engaged rural customers and showcased their cars in smaller towns and villages, effectively expanding their customer base.

Continued innovation and adaptation are crucial as the rural market continues to grow and evolve. Marketers must stay ahead by leveraging consumer insights, developing effective strategies, and embracing digital platforms. By capitalizing on the opportunities presented by the rural consumer market, companies can achieve long-term business success in this dynamic and promising sector.

What is rural marketing?

Rural marketing is the process of developing, pricing, promoting, and distributing rural-specific products and services to satisfy the needs of rural consumers.

What are the phases of rural marketing development?

The phases of rural marketing development include agricultural products, Green Revolution, industrial sector growth, and the emergence of the global market.

What is the concept of rural marketing?

The concept of rural marketing focuses on the 4As: availability, affordability, acceptability, and awareness, which guide marketers in developing effective strategies for rural markets.

What are the challenges in rural marketing?

Challenges in rural marketing include inaccessibility, unprofessional retailers, and limited media and communication access.

What strategies can be used in rural marketing?

Strategies for rural marketing include effective marketing communication, optimized distribution channels, and product customization to cater to rural consumers’ unique needs.

What role does research play in rural marketing?

Research in rural marketing helps in understanding consumer behavior, market segmentation, and the factors that influence buying decisions, guiding marketers in designing effective marketing strategies.

What are the current trends in rural marketing?

Current trends in rural marketing include digitalization, e-commerce, social media, and the emphasis on local sourcing and supporting rural artisans and farmers.

Can you provide examples of successful rural marketing?

Examples of successful rural marketing include HDFC Bank’s “Festive Treats” campaign, Hyundai’s “Experience Hyundai” initiative, Dabur’s “Khushion Ki Doli” campaign, and Coca-Cola and Pepsi’s innovative marketing strategies.

How does rural marketing contribute to business success?

Rural marketing plays a significant role in fueling business success by tapping into the potential of rural markets, understanding consumer insights, and implementing targeted marketing campaigns.

Editorial Team

Saas marketing explained with examples, what is sal in marketing.

Rural Marketing

Strategic Marketing Management in Asia

ISBN : 978-1-78635-746-5 , eISBN : 978-1-78635-745-8

Publication date: 19 December 2016

Bhanot, A. (2016), "Rural Marketing", Andaleeb, S.S. and Hasan, K. (Ed.) Strategic Marketing Management in Asia , Emerald Group Publishing Limited, Leeds, pp. 511-525. https://doi.org/10.1108/978-1-78635-746-520161018

Emerald Group Publishing Limited

Marketers have started looking at the large mass of consumers living in the rural areas whose purchasing power has been growing slowly but surely. Mass media had already started to make inroads into these areas. The low penetration of branded packaged products surely offered vast potential for growth in these markets. This chapter examines the differences between urban and rural markets and offers insights into how things may be done differently from a marketer’s perspective to gain share of this lucrative and emerging market.

Let us examine what makes the rural markets different and understand how some organizations came up with successful strategies to meet the challenges of charting marketing programs in a different territory.

Areas that have a population density of less than 400 persons per square kilometer,

Areas that do not have a municipal body/notified area committee/army cantonment providing utility services — such as clean drinking water, roads, electricity, sewerage system, and other civic services, and

Areas where more than 25 percent of the male working population is engaged in agricultural pursuits.

According to the Indian government’s census in 2011, over 833 million persons (69 percent of the total population) live in 640,930 villages. The remaining 377.10 million persons (31 percent of the total population) live in 7933 cities and towns. Table 1 shows the vast difference in rural and urban population spread.

Spread of Population.

Source : Census of India ( www.censusindia.gov.in ).

The population density of India’s four largest cities is shown in Table 2 .

Population Density of India’s Major Metro Cities.

Source : Population density in India. 1

The table above shows that the population density of large cities is more than 60 times compared to that of the rural areas considering the highest population density of 400 persons per square kilometer for each village.

The second feature that separates rural areas from urban areas is the low- or non-availability of utility services . Since rural areas, by definition, do not have municipal bodies there is a large infrastructure gap when it comes to provision of utility services like electricity, roads, tele-communication, clean drinking water and sewerage system. Consider the contrast between urban and rural areas, in access to utility services ( Table 3 ).

Availability of Households to Amenities/Utility Services (Rural vs. Urban).

The third feature that separates rural areas from urban areas is the big difference in income levels . A report by the Centre for Monitoring of Indian Economy (CMIE) a reported that in 2013, the average household income in urban India was Rs. 240,172 while in rural areas it was Rs. 116,672. Because of the smaller size of households in urban India, the per capita income of urban households was 2.2 times compared to the per capita income of rural households. One major reason for this wide difference is the practice of agriculture by the vast majority of families in rural areas and the fact that agricultural income varies widely by crops, availability of irrigation and agricultural inputs as it does by agro-climatic conditions in different regions.

The fourth feature that makes rural markets unique is the low levels of literacy , particularly female literacy. Table 4 shows the difference in male and female literacy rates for urban and rural India:

Literacy Rates in India in 2011.

Challenges Related to 4Ps

There are many other social, cultural, and environmental factors that make the rural markets unique and different from urban markets, but the features discussed above contribute the most.

Product. If we look at the data on household electrification in villages, it is easy to understand why there is a low demand for consumer electronics like mixer-grinders, refrigerators or ceiling fans in the rural area. The same reason also explains why the market for dry cells was growing at a healthy rate of over 10 percent in rural areas when it was actually shrinking in urban areas. Data on use of cooking fuels explains the limited market for pressure cookers or gas burners in the rural areas ( Table 3 ).

Price. The difference in urban and rural incomes explains the low spending patterns in rural areas on branded packaged good. Market research studies by numerous organizations showed that the average rural consumer has limited purchasing power compared to his/her urban counterpart. Marketers learnt that they must rethink technological and management processes to create “affordable” products for the rural consumers. Arvind Mills, the manufacturers of premium denim brands, created ready to stitch brand “Ruff & Tuff” for the rural youth who aspired to wear denim jeans but could not afford to buy high priced readymade denims. “Ruff & Tuff” started selling a complete package of denim cloth, stitching thread, buttons, and leather labels at a fraction of what the popular urban brands cost. The rural consumers could buy the “kit” and get their jeans custom stitched at the local tailor for a very reasonable price. “Nirma,” the largest selling detergent brand in Asia, took on the multinational Unilever by producing a low-cost detergent packed in polythene bags and distributed in villages using local transport solutions like bicycle salesmen. Another company that used smart thinking to penetrate rural markets was Cavincare that started marketing “Chic” shampoo in small sachets for one time use. Rural consumers started buying the sachets as they did not have to lock-in a lot of money in bigger packsizes. The success of “Chic” shampoo spawned a whole range of products in smaller pack sizes for rural markets from toothpaste to fairness creams as the companies discovered that the volumes from small packs were growing faster than large packs marketed in urban areas. Promotion. Through mid-1980s and early 1990s, cable and satellite technology was penetrating the urban markets, but the rural markets could access only terrestrial television channels. In India, this meant being able to watch only the state-run TV channel “Doordarshan.” To supplement advertising through the public broadcaster, companies used strategies like use of mobile audio-visual vans, participation in religious festivals and fairs where millions of rural consumers congregated, participation in weekly haat bazaars where buyers and sellers came together from nearby areas, and numerous other strategies like parading elephants or camels for new product launches. Companies also relied on cinema and outdoor advertising forms like wall-sites, bill-boards, and posters/tablets for creating local advertising. By the late 1990s cable and satellite had started penetrating the semi-urban and semi-rural areas, and consumers started getting exposed to advertising messages playing on television, and FM radio. However, companies soon learnt that it was incorrect to assume that what appealed to the urban consumer would be liked in rural areas also. Given the different levels of literacy, different lifestyles, and cultural and linguistic differences in rural areas it became imminent that the advertisers needed to use local dialects, rural and folk motifs, culturally appropriate messages, and characters/storylines with whom the rural audiences associate easily. Advertisers and brand marketers started traveling to villages to understand how the rural audiences process their messages, and what clicks and what does not. In his article “Focused communication for rural India,” 2 R. V. Rajan, Chairman, Anugrah Madison Advertising, noted that tricky, clever, gimmicky, or even suggestive advertising does not work with the rural audience. “Slice of life” approaches, simple, and direct, using aspirational urban-looking models worked very well. Soft drinks major Coca-cola was among the early marketers who created very successful campaigns like “ Thanda Matlab Coca-Cola ” (Cold means Coca-Cola) aimed specifically at rural and small town audiences. Place. One of the most unique features of the rural markets is the spread of consumers over a large number of small villages. As discussed earlier, more than two-thirds of India’s 1.2 billion consumers live in 640,930 villages. It is impossible to supply the products to small retail shops in each village — especially small hamlets of 50–60 households that do not have an approach road and enough buyers to justify the high expense of transporting goods to such remote locations. When multinationals like Unilever, Colgate, Coca-Cola started analyzing the data on the spread of rural population they realized that it will take them years and billions of dollars to connect every retailer in the villages to their distribution network. They realized that it was important to prioritize the villages in which servicing the retailers would allow them to reach a larger number of consumers (hub and spoke strategy). Figure 1 shows that 20 percent of all the villages (with population above 2000 persons) accounted for almost 60 percent of the rural population. Opens in a new window. Figure 1:

Population Spread by Size of Villages.

Companies soon realized that focusing on one-fifth of the villages would allow them to reach 60 percent of the rural consumers, a strategy that itself was sufficient to ensure high growth in times when the urban markets were stagnating.

Companies also learnt that small shopkeepers from very small villages would often visit large villages nearby from where they would pick up branded packaged products and bring them back for re-selling in their villages. The retailers would often use their bicycle or popular modes of rural transport like pony-carts to economize on transport costs. As volumes started to grow, some enterprising shopkeepers started using motorcycles to bring bigger volumes of personal care and food products to their villages for re-selling.

In the meantime, companies like Amul, ITC Agro-products and many other organizations had begun to start using internet and mobile phones for creating networks of farmers who would act as both consumers and spokespersons for their products. The e-choupal b network set up by ITC allowed the company to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. The Amul success story through its Anand pattern of co-operatives c had demonstrated that it was possible to source milk from small milk producers in small villages, process it in professionally managed dairy plants and sell milk to urban consumers. Amul was successfully using the milk procurement network to distribute cattle-feed and veterinary products to the dairy farmers in villages.

Maruti — Focusing on Rural Markets

Anurudra Bhanot

Maruti Suzuki India Limited, is an automobile manufacturer in India, a subsidiary of Suzuki Motor Corporation of Japan. It manufactures and sells popular brands such as Swift, Zen, Swift, Alto, Omni, etc.

Maruti’s Focus on Rural Market Drives Sales

Maruti Suzuki’s six-year-old rural focus has earned rich dividends. Now, one-third of all cars sold by the company drive down to the hinterland.

Maruti’s rural sales grew 16 percent in financial year 2013–2014. At 336,463 units, this segment comprises 32 percent of the car market leader’s total sales spread over 93,500 villages, up from 44,374 villages where the company sold its cars in 2012–2013. Maruti, according to top officials, sees its non-metro push as the drive to the future.

“Our car sales in rural areas are now 32 percent of our total sales. Future growth of our industry will be more and more from non-metro cities and rural areas,” Maruti chairman R. C. Bhargava said. “We continue to strengthen our sales and service structure in these areas.”

The rural focus comes on the back of Maruti’s strategy of hitting sales of three million units in the longer term. In his address to shareholders, Bhargava talked of parent Suzuki’s investment in the new Gujarat plant freeing up capital for Maruti to “strengthen R&D to develop and maintain the much larger number of models required to achieve sales of 3 million cars.” Analysts say Maruti has managed to “crack” the rural market thanks to its focus on fuel efficiency and network expansion.

The company achieved a 3–15 percent increase in fuel efficiency last fiscal across all models “by working on different technologies and areas like optimization of crank and intake system, new low viscosity oil, use of new technologies for rolling resistance reduction of tyres etc.” Maruti MD & CEO Kenichi Ayukawa said in the address to shareholders.

Maruti has announced fuel efficiency as one of its top focuses for R&D activity. On its agenda are reducing vehicle weight and cost and use of alternate material plus new technologies. Maruti saw its total R&D spend as a percentage of total income increase from 1.17 percent in FY2012–2013 to 1.48 percent in FY2013–2014.

Of course, no village road show can work without service accessibility. Maruti, which has 3000 rural service outlets, is planning to expand that network by 200 this year. It is also planning to double its 1000-strong mobile service vans across rural markets.

Maruti’s rural target began in the slowdown of 2008 but really came good in 2013 when the car market saw its worst slowdown in a decade. While the rest of the market ground to negative growth curve, Maruti saw its smaller/rural markets — with populations of less than 10,000 people growing around 14–15 percent.

Source : Case Study ( http://timesofindia.indiatimes.com/business/india-business/Marutis-focus-on-rural-market-drives-sales/articleshow/40312727.cms ).

Questions for Discussion

What changes did Maruti make in their product design to manufacture cars suited to the needs of rural consumers?

Do you think Maruti’s strategy of increasing its dealer network from 44,374 to 93,500 villages was an effective strategy for increasing sales? Why?

Why does Maruti need to expand its service network from 3,000 to 3,200 in the current year?

If you were the Sales Head at Maruti, would you allocate more resources for expanding the brick and mortar service network or would you allocate more resources to expand the mobile service vans across rural markets? Explain your reasons.

You are the Marketing Head at Maruti and you have to brief the new advertising agency for creating a promotional campaign for rural markets. Prepare a short brief for the advertising team describing the profile of potential rural customers, the value proposition for the rural customers and media strategy for the rural markets.

Tips for Discussion

Answer guide Q1:

Maruti made fuel efficiency as one of its top focuses for R&D activity. On its agenda were reducing vehicle weight and cost, and use of alternate material plus new technologies. The company achieved a 3–15 percent increase in fuel efficiency last fiscal across all models “by working on different technologies and areas like optimization of crank and intake system, new low viscosity oil, use of new technologies for rolling resistance reduction of tyres etc.”

Answer guide Q2:

Maruti’s strategy of increasing its dealer network from 44,374 to 93,500 villages was an effective strategy because it allowed the company to offer its product range to a larger number of prospective customers. By more than doubling its dealer network, the company was able to showcase its product range to more than two times the potential customers.

Answer guide Q3:

Once the cars are sold they will need regular servicing. If Maruti does not expand its service network simultaneously, the customers will have to travel far to get their cars serviced, and this will lead to customer dissatisfaction. This will impact the market expansion and growth, as the word of mouth spreads about Maruti’s lack of service network in rural areas. This will potentially impact the sales of both new and pre-owned cars which is emerging a big market in rural areas.

Answer guide Q4:

I would allocate more money to expand the mobile service network through vans. Since a brick and mortar service center can service only a limited number of villages in the catchment area or vicinity, its running costs will become unviable forcing the company to shut it down. Also, the capacity utilization will be low given the density of car owners in rural areas. Mobile van-based service network has lower fixed costs and can be utilized to service larger number of clients over a wider area.

Answer guide Q5:

My brief would focus on promoting high mileage (fuel efficiency) and low maintenance costs as the key value proposition for rural customers. I would also brief the advertising agency to develop a media mix suitable for rural costumers based on their media consumption patterns and preferences. For the creative team, my brief would be use language, models, motifs, and story lines that the rural customers would easily be associated with that.

http://www.consumer-pyramids.com/kommon/bin/sr.php?kall=wclrdhtm&nvdt=20140303172910846&nvpc=095000000000&nvtype=INSIGHTS

http://www.itcportal.com/businesses/agri-business/e-choupal.aspx

http://www.amuldairy.com/index.php/anand-pattern1

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Rural Marketing: A Case Study On Hindustan Unilever Limited

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In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has emerged. This paper is an attempt to find out the various initiatives taken by HUL to reach the rural consumer. Hindustan Unilever is the pioneer and largest player in India’s FMCG market. HUL was the first company to step into the Indian rural marketing. HUL started its first effort towards going rural 1960’s onwards, through indirect coverage of accessible rural market through its urban network stockists and distributors. HUL proactively engaged in rural development in 1976 with Integrated Rural Development Programme in Etah district of Uttar Pradesh. In 1990, HUL launched ‘Operation Streamline’ for distribution of products to inaccessible rural markets with High potential using unconventional transport like bullock carts, tractors and bicycles and appointed rural distributors and star sellers. In 2000, HUL started Project Shakti to reach inaccessible low potential rural markets. This project has reached 100,000 villages. HUL embarked upon Project Samuriddhi in 2003 to create sustainable villages in Dadra and Nagar Haveli. Today HUL’s products touch the lives o f two out of every three Indians

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India has become a second home to many multinationals’ over the years. The fact that India has second largest population in the world is alluring because it translates itself into a huge opportunity to encash for marketers across the globe. Hindustan Lever Limited which set foot as the subsidiary of Unilever has been one such multinational which has almost become a home grown brand. The strategies adopted by this corporate leaves no stone unturned in cashing in on the tiniest niche markets available. Reaching the four billion populations in the base of the pyramid markets has been a topic of research in recent times. Lot of exploratory and case studies have been made in this field. This paper is a study on the strategies developed by Hindustan Lever Limited which has been one of the most successful companies to foray into the emerging markets in South East Asia and successfully tapped the base of the pyramid in India. A case study using archival material and secondary information sources suggest that having a global lookout and one world one market strategy is not successful when attempting to cut into base of the pyramid segments in emerging markets. The critical aspect here is developing grassroots’ connection and social empathy which should translate to a cooperative spirit which will leverage the strengths and overcome the weaknesses.

IJAR Indexing

Largest consumer products company in India, is the Hindustan Unilever Limited (HUL), formerly known as Hindustan Lever Limited (HLL).The vision of HUL is to meet everyday needs of people everywhere – to anticipate the aspirations of our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life. HUL Project Shakti was piloted in 2002 in 50 villages of the state of Andhra Pradesh involving members of Self Help Groups (SHGs). They are trained and provided micro credit to buy and sell HUL’s products. The present study focuses on the comparative analysis of the performance of project sakthi between the Anantapur & chittoor of Andhra Pradesh.

This is a review article which emphasizes theneed for corporate sectors to focus on ruralconsumers, with a view to bring them into the mainstream of global marketing. It is the corporate responsibility of these sectors to spread the knowledge of digital technology to rural and remote areas and distribute the technological benefits evenlywhich helps to expand the business world. Especially Fast-MovingConsumer Goods(FMCG) industries should focus on rural consumers as majority of them are unable to enter the digital marketing/on-line shopping because of technological illiteracy due to their existing socio-economic conditions. In this backdrop, the present study triedto find out the possibilities of transitionof rural consumption pattern from traditional to modern through digital literacy.

ESTUDIOS SOCIOLÓGICOS

David Stoll

Hankook Kwanghak Hoeji

Younghun Yu

Digital holographic microscopy allows optical path difference measurement. Optical path difference depends on both the refractive index and the morphology of the sample. When interference fringes are very closely spaced, the phase data contain high frequencies where ambiguities cannot be resolved. The immersion testing method, which is a transmission test while the sample is immersed in liquid, is very effective in reducing high frequency fringes in transmission measurements so that large dynamic range testing is possible for a non-null configuration. We developed a digital holographic microscope using liquid that can measure the high numerical aperture aspheric morphology of a sample. This system provides highly precise three-dimensional information on the sample. By improving the experimental method, choosing liquids which have similar refractive index to the sample, we can measure more accurate three-dimensional information on the samples.

Educação & Realidade

Paulo Carrano

Resumo: Apresenta-se trajetória de um grupo de pesquisa dedicado à produção de conhecimento sobre jovens de espaços populares no contexto de produção de filmes de pesquisa. Dois filmes são descritos e interpretados com especial destaque aos dispositivos utilizados para colocar em diálogo as narrativas de si e contextos de vida e sociabilidade de jovens através de imagens e sons. A representação fílmica não se confunde com um retrato do real, mas, em vez disso, é reconstituição através da seleção, tradução e montagem do produto que se quer compartilhar com o público. As entrevistas narrativas concebidas em bases dialógicas são elementos estruturantes da produção dos filmes que buscam apresentar o ser-jovem em sua complexidade.

Janet Kolodner

KK Lamberty, Amy Mitchell, Jakita N. Owensby, Daniel Sternberg, Janet L. Kolodner. In Proceedings of Design: Connect, Create, Collaborate (2001). bibtex-import digital-library dlbook. Search all the public and authenticated articles in CiteULike. Enter a search phrase. ...

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