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This document discusses rural marketing of fast-moving consumer goods (FMCG) in India. It outlines 4 main strategies used in rural marketing: product, pricing, distribution, and promotion. For product strategy, companies develop smaller package sizes and lower price varieties to suit rural customers' lower incomes. Pricing strategy aims to keep prices low through minimal packaging. Distribution focuses on reaching villages over 2,000 people and within 50km of cities. Promotion uses mass media like cinema and television but print has low effectiveness due to low literacy. Challenges include transportation and storage infrastructure gaps as well as seasonal incomes and literacy rates.

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Meaning of FMCG on Rural Marketing FAST- MOVING CONSUMER GOODS Rural marketing is now a two-way marketing process.There is inflow of products or consumption and there is also outflow of products to urban areas.The urban to rural flow consists of agricultural inputs, fast-moving consumer goods(FMCG) such as soaps, detergents,cosmetics…etc
Sales Promotion strategies 1. Product strategies 2. Pricing strategies 3. Distribution strategy 4. Promotion strategies
1. PRODUCT STRATEGIES . A Company has several major strategies at its disposal, with respect to width, depth and consistency 1 PRODUCT STRATEGIES For the rural segment and rural consumer, many MNCs and Indian companies have done market surveys to understand the product to be adopted. BRAND IMAGE The rural people identify the brands in their own way. For example:Evereday battery cells are called “red battery”.
Small Size Packaging The low per capital income, non-availability of regular pay and cash forces the rural consumer to buy in small packets various products. The examples can be explained in plenty. F.M.C.G.: Almost all F.M.C.G. goods manufactures have come out with smaller packets and low price varieties. Toothpastes are available in 10 gm,25 gm,and 50 gm packets/ tubs. Soap powders are available for 2, 5,1/4 kg packets. The innovation in products design will be appreciated by the rural people only if it leads to price reduction.The changes made should suit their tastes and likes
2] PRICING STRATEGIES It is natural that pricing strategies for rural segments must be in tune with the packing and product strategy. LOW PRICING : Smaller packets of tea, toothpowder, shampoo,detergent powder, soap cakes, some standard quality and some low quality are sold at prices with very low maegins. AVOID SOPHISTICATED PACKING : For selling in rural areas, producers have resorted to use of cheap quality or ordinary packing so that to some extent, price reduction is possible.
3. DISTRIBUTION STRATEGY Some of the studies reveal that the bigger villages of above 5000 population are fairly covered by the marketing people of various companies manufacturing consumable and durable products. SMALL VILLAGE : In order to reach smaller villages, two types of strategies have to be adopted i.e., reach all villages above 2000 population and reach those within 50 km radius of big towns and cities. ANGRO INPUTS DEALERS Agricultural input dealers have known how and scope to deal with rural public as they are already in touch with them for essential inputs like fertilizers, seeds and chemicals.
4] PROMOTION STRATEGIES ▶Various types of promotion methods work as integrative system between products and consumer. ▶CINEMA : ▶For the last 60 years, cinema continues to be influencing in style, tastes, dress materials and total indian culture. ▶TELEVISON: ▶Since the last decades, TV viewing has been a regular pastime for all Indian public.The TV serials like ‘mahabharata;,’Hum log’and cricket. ▶PRINT MEDIA: ▶Due to low literacy rate and poor reading habits, this is not a popular promotion strategy.
CHALLENGES FACED BY FMCG SECTORS FOR RURAL MARKETING 1} Transportation problems : Marketing activities require transportation facilities. Due to poor transportation facilities, farmers and marketers find it difficult to reach markets.Nearly 80% of village in the country are not connected by well constructed roads. 2} WAREHOUSING : In the rural areas, there are no facilities for public as well as private warehousing. Marketers face the problem of storage of their goods. 3} PACKAGING : It is the first important step of product processing. If the packaging cost is high, the total cost of products goes up.
4} MEDIAPROBLEMS : Media have lots of problems in rural areas. Television is a good medium to communicate message to the rural people. But due to non-availability of power, as well as television sets, majority of the rural population cannot get the benefits of various media. 5}SEASONAL MARKETING : The main problem of rural marketing is seasonal demand in rural areas, because 75% of rural income is also seasonal. 6} LOW PER CAPITAL INCOME : Per capital income is lower in rural areas compared to those in urban areas. Again, the distribution of rural income is highly skewed, since the land holding pattern, which is the basic asset, is skewed. 7} LOW LEVEL OF LITERACY RATE: Literacy rate is low in rural areas compared to urban areas. This again leads to the problem of communication for promotion purpose. Print medium becomes ineffective and to an extent irrelevant in rural areas.
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rm 3.pptx

  • 1. Meaning of FMCG on Rural Marketing FAST- MOVING CONSUMER GOODS Rural marketing is now a two-way marketing process.There is inflow of products or consumption and there is also outflow of products to urban areas.The urban to rural flow consists of agricultural inputs, fast-moving consumer goods(FMCG) such as soaps, detergents,cosmetics…etc
  • 2. Sales Promotion strategies 1. Product strategies 2. Pricing strategies 3. Distribution strategy 4. Promotion strategies
  • 3. 1. PRODUCT STRATEGIES . A Company has several major strategies at its disposal, with respect to width, depth and consistency 1 PRODUCT STRATEGIES For the rural segment and rural consumer, many MNCs and Indian companies have done market surveys to understand the product to be adopted. BRAND IMAGE The rural people identify the brands in their own way. For example:Evereday battery cells are called “red battery”.
  • 4. Small Size Packaging The low per capital income, non-availability of regular pay and cash forces the rural consumer to buy in small packets various products. The examples can be explained in plenty. F.M.C.G.: Almost all F.M.C.G. goods manufactures have come out with smaller packets and low price varieties. Toothpastes are available in 10 gm,25 gm,and 50 gm packets/ tubs. Soap powders are available for 2, 5,1/4 kg packets. The innovation in products design will be appreciated by the rural people only if it leads to price reduction.The changes made should suit their tastes and likes
  • 5. 2] PRICING STRATEGIES It is natural that pricing strategies for rural segments must be in tune with the packing and product strategy. LOW PRICING : Smaller packets of tea, toothpowder, shampoo,detergent powder, soap cakes, some standard quality and some low quality are sold at prices with very low maegins. AVOID SOPHISTICATED PACKING : For selling in rural areas, producers have resorted to use of cheap quality or ordinary packing so that to some extent, price reduction is possible.
  • 6. 3. DISTRIBUTION STRATEGY Some of the studies reveal that the bigger villages of above 5000 population are fairly covered by the marketing people of various companies manufacturing consumable and durable products. SMALL VILLAGE : In order to reach smaller villages, two types of strategies have to be adopted i.e., reach all villages above 2000 population and reach those within 50 km radius of big towns and cities. ANGRO INPUTS DEALERS Agricultural input dealers have known how and scope to deal with rural public as they are already in touch with them for essential inputs like fertilizers, seeds and chemicals.
  • 7. 4] PROMOTION STRATEGIES ▶Various types of promotion methods work as integrative system between products and consumer. ▶CINEMA : ▶For the last 60 years, cinema continues to be influencing in style, tastes, dress materials and total indian culture. ▶TELEVISON: ▶Since the last decades, TV viewing has been a regular pastime for all Indian public.The TV serials like ‘mahabharata;,’Hum log’and cricket. ▶PRINT MEDIA: ▶Due to low literacy rate and poor reading habits, this is not a popular promotion strategy.
  • 8. CHALLENGES FACED BY FMCG SECTORS FOR RURAL MARKETING 1} Transportation problems : Marketing activities require transportation facilities. Due to poor transportation facilities, farmers and marketers find it difficult to reach markets.Nearly 80% of village in the country are not connected by well constructed roads. 2} WAREHOUSING : In the rural areas, there are no facilities for public as well as private warehousing. Marketers face the problem of storage of their goods. 3} PACKAGING : It is the first important step of product processing. If the packaging cost is high, the total cost of products goes up.
  • 9. 4} MEDIAPROBLEMS : Media have lots of problems in rural areas. Television is a good medium to communicate message to the rural people. But due to non-availability of power, as well as television sets, majority of the rural population cannot get the benefits of various media. 5}SEASONAL MARKETING : The main problem of rural marketing is seasonal demand in rural areas, because 75% of rural income is also seasonal. 6} LOW PER CAPITAL INCOME : Per capital income is lower in rural areas compared to those in urban areas. Again, the distribution of rural income is highly skewed, since the land holding pattern, which is the basic asset, is skewed. 7} LOW LEVEL OF LITERACY RATE: Literacy rate is low in rural areas compared to urban areas. This again leads to the problem of communication for promotion purpose. Print medium becomes ineffective and to an extent irrelevant in rural areas.