Scope for Rural Marketing in India

Let us take at some of the points with respect to Rural India as per Census

  1. Population density of less than 400 per sq.km.
  2. At least 75% of the male working population is engaged in agriculture.
  3. No municipality or board.

If we go by statistics, roughly around 70% of the Indian population lives in the rural areas. That is almost 12 % of the world population. To expand the market by tapping the countryside, more and more MNCs are foraying into India’s rural market.

Below are the few points why organizations are looking at rural marketing with a positive attitude

1. Population

According to 2011 Census rural population is 72% of total population and it is scattered over a wide range of geographic area. That is 12% of the world population which is not yet fully utilized.

2. Rising Rural Prosperity

Average income level has unproved due to modern farming practices, contract farming industrialization, migration to urban areas etc. There has been an overall increase in economic activities because during the planned rural development heavy outlay of resources on irrigation, fertilizers, agricultural equipment’s and agro processing industry has been made. Saving habits in rural people also has increased. This too contributes in higher purchasing power

3. Growth in consumption

There is a growth in purchasing power of rural consumers. But, the average per capita house hold expenditure is still low compared to urban spending

4. Change in life style and Demands

Life style of rural consumer changed considerably. There has been increase in demand for durables and non-durables like table fans, radios, mopeds, soaps, etc. by rural consumers. This provides a ready market for the producers. Rural market is expanding day after day.

5. Market growth rate higher than urban:

The growth rate of fast moving consumer goods [FMCG] market and durable market is high in rural areas. The rural market share is more than 50% for products like cooking oil, hair oil etc.

6. Life cycle advantage

The products which have attained the maturity stage in urban market is still in growth stage in rural market.

7. Decision-making Units

Women in rural areas are beginning to make fast decisions for purchases. Studies reveal that 72.3% decisions are taken jointly in a family. With education and mass media, role of children in decision making is also changing

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