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.
City | Population | Area (km ) | Pop. Density |
---|---|---|---|
Chennai | 4,681,087 | 181 | 25,854 |
Delhi | 11,007,835 | 431 | 25,535 |
Kolkata | 4,486,679 | 185 | 24,252 |
Mumbai | 12,478,447 | 603 | 20,694 |
India | 1,210,569,573 | 3,287,590 | 382 |
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).
Facility | Location/Type | Households having Access | ||
---|---|---|---|---|
Total | Rural | Urban | ||
Drinking water source | Tapwater from treated source | 32% | 18% | 62% |
Handpump | 33% | 44% | 12% | |
Tubewell | 8% | 8% | 9% | |
Other (pond, lake, river, well) | 26% | 30% | 17% | |
Location of drinking water source | Within premises | 47% | 35% | 71% |
Near premises | 36% | 43% | 21% | |
Away | 18% | 22% | 8% | |
Main source of lighting | Electricity | 67% | 55% | 93% |
Kerosene | 31% | 43% | 6% | |
Other | 1% | 1% | 0% | |
No lighting | 0% | 1% | 0% | |
Latrine facility | Within premises | 47% | 31% | 81% |
Public latrine | 3% | 2% | 6% | |
Open | 50% | 67% | 13% | |
Bathing facility | Within premises | 42% | 25% | 78% |
Community facility | 16% | 20% | 9% | |
No facility | 42% | 55% | 13% | |
Waste water outlet connected to | Closed drainage | 18% | 6% | 45% |
Open drainage | 33% | 31% | 37% | |
No drainage | 49% | 63% | 18% | |
Type of fuel used for cooking | Fire-wood | 49% | 63% | 20% |
Piped gas/Gas cylinder | 29% | 11% | 65% | |
Other fuels | 22% | 26% | 15% | |
Kitchen facility | Inside house | 87% | 83% | 96% |
Outside house | 12% | 16% | 4% | |
Communication/entertainment | Radio/Transistor | 20% | 17% | 25% |
Television | 47% | 33% | 77% | |
Mobile phones | 53% | 48% | 64% | |
Landphones | 4% | 3% | 6% | |
Both mobile and landphones | 6% | 3% | 12% |
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.
Areas | All | Male | Female |
---|---|---|---|
Rural | 77% | 86% | 67% |
Urban | 90% | 94% | 85% |
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 ).
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.
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 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 ).
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.
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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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
4 digital marketing case studies for rural india.
Mentor Stanford SEED & LISA
In this Article:
Internet users in rural India are around 227 million as per research firm Nielsen, and total India has 504 million active internet users.
Due to connectivity, quality of service and affordability in rural India, the numbers are increasing day by day, so the potential for brands to connect and engage has rise. Brands need to leverage Digital Marketing, connecting with the users in a way that make an impact through the channels used in digital.
Below are few Digital Marketing case studies of Rural India campaigns which we have executed for NETAFIM & Japfa
Let’s understand each of them
NETAFIM is a global leader in irrigation solutions, their objective was to connect with the farmers and showcase the value of drip irrigation, so that the yield increases for different crops which they are planning.
We crafted a strategy that focused on communication different pieces related to crop including:
We communicated all these pieces by creating a social media property called as Krishi Samvaad
Krishi Samvaad property was a live content piece by Agronomist communicating different aspects including why drip, best practices, how to increase yield, technical aspects, save water etc for crops including Sugarcane, Ginger, Turmeric and Banana.
This property was broadcasted on social media in different languages including Marathi, Gujarathi, Kannada, Tamil and Telugu
Read detail case study here – NETAFIM India Krishi Samvaad Case Study
NETAFIM India wanted to launch FlexNet flexible pipes through digital, create awareness, showcase value proposition and wanted to drive traction for the product.
So in order to launch the product on digital, we crafted a communication campaign, #FarmingSimplified which focused on positioning the thought, now farming is simplified through FlexNet pipes and it allows more flexibility to farmers compared to traditional method of using pipes.
The campaign started with teasers raising questions
Post teasers, we revealed the FlexNet film which communicated what value the product brings in, including performance, durability, flexibility, ease with connectors and low labour cost for entire irrigation system.
We further delayed a multi-lingual strategy to launch the product in different regions of India
Read detail case study here – NETAFIM India FlexNet Case Study
Japfa is a leading agro industrial company with a prime focus in poultry feed. If offers Poultry & Integration along with feed solutions globally.
The objective of the campaign was to reach prospective poultry farmers and educate them on the benefits of poultry farming, enhance brand reach and drive engagement.
So we crafted a digital marketing strategy which focused on communicated below pieces:
Clean Farm Challenge was one of the effective campaign we did to drive buzz and engagement. It was a challenge where farmers were asked to follow 5 simple biosecurity measures and share their videos on Facebook and WhatsApp.
The campaign was launched with a film and promoted on social channels to drive traction, here is the film
Read detail case study here – Japfa India Clean Farm Challenge Case Study
The objective of the campaign was to assure and instill faith in customers that, “Consuming Chicken is Safe” during the COVID times
The strategy focused on content pillars including communicating quality & hygiene assurance and benefits of consuming chicken during COVID-19
We created videos which showcased hygiene & safety measures taken at Japfa’s manufacturing plant and bird grower farms, which highlighted Japfa COVID warriors who worked during the COVID times to serve the protein needs of the country through Chicken and Eggs.
Read detail case study here – Japfa India COVID-19 Case Study
When an unknown printegalley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting.
Mentor: stanford seed & abu dhabi sme hub.
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JASH MATHEW
For empowering the rural poor the corporate enterprise like HUL approximates it self to the use of bottom of the pyramid marketing. This paper focuses mainly upon the working of this model called project shakti, its pre requisites & problems and its operational view& How is the performance of shakti entreprenures in anantapur district.
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.
International Journal of Case Studies in Business, IT, and Education (IJCSBE)
Srinivas Publication , Keerthan Raj
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.
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Case Study Rural Marketing: A Case Study on Hindustan Unilever Limited Author: Manpreet Kaur * Address For correspondence: Assistant Professor, Guru Gobind Singh College for Women, Sector - 26, Chandigarh Abstract: In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted into substantial ...
Case Studies of Successful Rural Marketing Campaigns. Analyzing successful rural marketing campaigns can provide invaluable insights for businesses looking to penetrate these markets. Here are two examples: 1. HUL's Project Shakti: Unilever's Project Shakti in India is one of the most successful examples of rural marketing. Recognizing the ...
Here, we'll be discussing challenges that are present in rural marketing and some effective strategies to overcome the odds and establish your brand. We will also discuss some popular case studies where brands could overcome barriers and establish themselves in rural markets using innovative marketing and communication strategies.
PDF | On Aug 28, 2024, S V Akilandeeswari and others published Rural Marketing Strategies A Case Study of Pottery Artisans | Find, read and cite all the research you need on ResearchGate
The case discusses key issues pertaining to rural marketing, business viability, social issues and public sentiment.Easy access is an entrepreneurial venture by an erstwhile intellectual marketing professor of a premier B-school. The objective behind this initiative is multiple, viz., rural marketing, developing alternative distribution ...
Alternatively, you can explore our Disciplines Hubs, including: Journal portfolios in each of our subject areas. Links to Books and Digital Library content from across Sage.
The case focuses on the rural marketing initiatives undertaken by the cola major - Coca Cola in India. The case discusses in detail the changes brought about by Coca Cola in distribution, pricing and advertising to make inroads into rural India. The case also discusses the concept of rural marketing and its characteristics in a developing country like India.
Marketing to Rural India: Making the Ends Meet ... and it has become a case study for business schools and evolved beyond its original goals. ... since studies have shown that just 15% of Indian ...
The case discusses key issues pertaining to rural marketing, business viability, social issues and public sentiment.Easy access is an entrepreneurial venture by an erstwhile intellectual marketing ...
Rural and Urban Markets — Whither Differences? 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.. The first thing that makes rural markets very different is the population density, which is very low, compared to urban areas.
This study reveals that the term "rural marketing" traces its origin back to about a hundred years ago. In the Indian context the first mention of the term "rural marketing" is traced back ...
Key Features: · Rich pedagogy including opening and closing case studies, mini case studies, engaging chapter-end exercises and project assignments · Inclusion of references to recent research data, important journal articles and videos for classroom teaching · Comprehensive overview of the future of rural marketing through BoP approach ...
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 ...
The Study Is Mainly Based On The Examination Of The Marketing Strategies For Durable And Non-Durable Consumer Products In Rural Areas Of Three Selected Districts In Andhra Pradesh. The Conclusions Drawn And Suggestions Made In This Study Are Useful For The Policy Makers For Improving The Market Potential In Rural India.
The Rural Marketing plays a very important role in the lives of people in Indian Economy. The rural market is a main cause in India which brings in greater revenues in the country.
Abstract. With the opening of the Indian economy, the sombre market place has become intensely competitive. The domestic big players which had smooth going for years in a sellers' market are forced to develop new trajectories of growth. For the last several years, Corporate India has overlooked the rural areas where 72% of the population live.
A case study on Rural Marketing Strategies of MNCs using 6E framework in India and Indonesia Dr. Alka Maurya, Associate Professor, Amity International Business School, Amity University, India Abstract Multinational Companies in a bid to increase their revenue and profit are now eyeing the emerging markets. Considering the saturation in the ...
Internet users in rural India are around 227 million as per research firm Nielsen, and total India has 504 million active internet users. Due to connectivity, quality of service and affordability in rural India, the numbers are increasing day by day, so the potential for brands to connect and engage has rise. Brands need to leverage Digital Marketing, connecting with the users in a way that ...
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.
The case focuses on the rural marketing initiatives undertaken by the cola major - Coca Cola in India. The case discusses in detail the changes brought about by Coca Cola in distribution, pricing and advertising to make inroads into rural India. The case also discusses the concept of rural marketing and its characteristics in a developing country like India.
Rural Marketing in India (A Case Study) Rural Marketing in India! In countries like India, the rural market centres are the farmer's first contact point with the marketing channel. Therefore, rural markets are considered as the nerve-centres of the economic, social and cultural activities of rural life. The producer farmers not only depend on ...