Advantages & Disadvantages of rural marketing

There is a lot of discussion about the best way to market a business, and it can be hard to decide what to do. One option that many people overlook is rural marketing. This article will help you learn more about this type of marketing and the advantages and disadvantages it offers.

Advantages of rural marketing

One of the easiest ways to explore rural markets is by visiting them and speaking with their people. There are many key reasons why it's important to travel to these areas and see what they need:

1. Growth of Rural Markets:

As a general rule, the rural population in developing countries are looking for goods similar to those found in urbanized areas. This is due to their increasing incomes and government spending on their quality of life. For example, better agriculture methods have improved people's lives and created a higher purchasing power. This leads people to demand better living standards, paving the way for development.

2. Creation of Job Opportunities in Rural Areas:

The Indian government has developed several programs to encourage employment in rural areas. These include the Training of Rural Youth for Self-employment, The Integrated Rural Development Program (IRDP), and Jawahar Rozgar Yojana.

3. Severe Competition in the Urban Markets:

The city's market is fully saturated by highly competitive brands, which has lead to increased costs and weaker market share for brands. The urban markets are already dominated by brand loyalty, so entering into them can be difficult. Many marketers will move to the rural markets as urban markets become saturated. This means that the rural markets are becoming a new opportunity to introduce your companies' products or services in an area that is not as developed and crowded as the city.

4. Tourism in the Rural Areas:

Rural tourism is popular, not just because it gives people the chance to get out of the city, but also because of rural people's hospitality and unique lifestyle. This can attract urban tourists who want to get back to their roots or experience rural living occasionally. No matter what the intentions, tourism is welcome in areas where there are few hotels and tourist attractions, which has generated lots of revenue for rural people.

5. Large Population:

There's a primary appeal to the rural population simply because it encompasses such a large customer base. Marketers can enjoy an exceptionally high revenue, enabling them to experiment and make mistakes at their own pace without risking their company's economic stability. Marketing in these areas is also highly profitable due to the lack of service they currently receive.

The need for marketing in rural areas is certainly high. From banking and insurance to basic healthcare, the people don't have access to quality amenities. Because of this, marketing to them can be a lucrative endeavor.

6. Low Foreign Competition:

Foreign companies who want to introduce their products in other countries will often target the more urban population. As a result, they largely ignore rural communities and create opportunities for other brands to market their products and create brand loyalty.

7. Life Cycle Advantage:

There are several brands in urban markets that have reached maturity and a decline stage, due to saturation. This is because the demand has been well-supplied, with every individual product offered. Whereas rural markets aren't as saturated as they may have untapped potential; this is where opportunity lies.

8. Supports offered by Financial Institutions:

Public sector and cooperative banks offer loans to citizens in rural areas at low-interest rates, increasing their purchasing power. In addition, these financial institutions provide support for businesses that want to invest in the rural market.

9. Better Infrastructure facilities:

In recent years, India has placed a strong emphasis on enhancing rural connectivity with many highways, roads and other transportation methods. This helps promote products and services in the rural market for businesses. The internet is also playing a big role by providing a wide range of information quickly to rural consumers, which can ultimately lead to more sales.

10. Favourable Government Policies:

To enhance the economic condition of rural areas, the government is running different programs and policies that promote job opportunities and marketing rural goods and services.

11. Expansion of Digital & Information Technology:

Nowadays, rural residents are also experiencing the benefits of the digital revolution. Most people are using new media like smartphones and TVs that provide us with tremendous opportunities to grow our business in regional markets.

Challenges of Rural Marketing

One of the toughest obstacles to cross when optimizing brand reach in complex rural markets is

The world has many people living in poverty.

Low literacy rates and low per capita income

Transportation and supply chain management are all aspects of logistics. Logistics is the science of everything moving from one place to another. It also includes managing transportation, warehousing, inventory, purchasing and more.

Depending on your distribution channels, you may need bulk sellers. But don't worry, there are intermediaries for that.

Many languages and cultures from around the world
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Lack of communication system

Changes in the seasons speed up or slow down demand.

The popularity of fake or counterfeit brands

When marketing to rural areas, it's important to develop a unique strategy. Below are details on different aspects of an effective strategy for these markets.

Rural Marketing Strategies

If you're marketing in a rural market, it can be tough to figure out what strategies will work for your business. However, there are ways to increase your reach and conversions. Here are a few strategies you might want to employ-

1. Product Strategies

When creating product strategies for rural populations, consider-

Product Launch

New Product Design

Brand Name

Small Unit Low Price Packaging

2. Pricing Strategies

Businesses should adopt different pricing strategies when promoting their products in rural markets.

Differential Pricing

Psychological Pricing

Create Value for Money

Pricing on Special Events

Simple Packing

Low Price Points

Schemes for Retailers

Bundle Pricing

3. Distribution Strategies

To optimize your presence in rural markets, there are a variety of distribution strategies that can be tried:

Target local market

Open company depots in rural areas

Use public distribution system

Use power of retailers in the rural market

Utilize redistribution stockists and clearing agents

Use delivery vans, traders, salespeople, and NGOs.

4. Promotion Strategies

When you're designing strategies for rural consumers, it's important to keep their unique perspective in mind. What might work for a suburban market won’t necessarily work for a rural one. Strategies like these can help:

The mass media is a method that has been used in the past to communicate with one's target audience.

Using personalized content

Using local media

Hiring actors, influencers and models to promote your business

Advertising through painting

5. Additional Strategies

Some of the other strategies for utilizing the full potential of the rural market include:

When you're thinking about marketing for your business, remember: every market is different.

Rural communities value their traditions and put great importance on their values.

Hire enthusiastic individuals from your rural background who want to work with more rural populations

Social Responsibility In business is important. Using innovative models like socially-conscious ones will allow others to get opportunities they may not have had otherwise.

Utilize the expertise of a rural marketing specialist agency

Use the power of digital marketing and mobile phones

Offer your products and services to your friends and family to explore the potential of a rural market.

Run rural marketing with a long-time perspective

Rural Marketing Examples

1. Khushion Ki Doli by Hindustan Unilever Ltd (HUL)

Hindustan Unilever Ltd. (HUL) came up with a marketing campaign called "Khushion Ki Doli" that was quite popular in rural areas. This campaign made HUL's brand name more well-known in villages and helped to develop deep customer engagement for HUL's brand adoption. A wide range of products for home care and personal care, such as Surf Excel, Lifeboy, Fair and Lovely, Wheel, and Close-Up were promoted via this rural marketing campaign to meet the needs of people who live in rural areas on a daily basis.

2. Cola Brands Rural Marketing

Coca-Cola and Pepsi Cola Brands used rural marketing strategies to enter into rural markets and increase their reach. Variety of distribution, pricing strategies, etc were used like offering refrigerators, ice boxes, credit facilities, etc. To optimize its availability in rural areas Coca-Cola introduced Chota Cola which was smaller than the traditional Coke bottle, plus it was also offered at a lower price. This increased Coca-Cola's sales in the rural areas by around 60% with Chota Cola.

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

HDFC offered rural consumers special offers. There was the Festive Treats campaign for financial services, and Har Gaon Hamara to create awareness of social welfare schemes and financial products.

Conclusion

Marketing to rural consumers necessitates understanding their needs and lifestyle.

In short, rural marketing is a study of different activities and policies involved in the process of procuring agricultural inputs for the farmers and getting their products to consumers. It also includes other services that might meet the needs of the rural population.

Frequently Asked Questions (FAQ)