Success

Rural marketing project
on

CHIK SHAMPOO SACHET

Dr. Sanjay Patro

Report by

220 Mr. Heemanish Midde | 243 Mr. Rahul Palan | 256 Dr. Vikas Kumar Hiran

20th Nov, 2008
Xavier Institute of Management and Research, Mumbai
Mumbai University

RURAL MARKETING

An Overview
Trends indicate that the rural markets are coming up in a big way and growing twice as fast as the
urban as many 'middle income and above' households in the rural areas as there are in the urban
areas.
The share of FMCG products in rural markets is 53%, durables boasts of 59% market share.
The number of middle and high income households in rural India is expected to grow from 80 million
to 111 million by 2008. In urban India, the same is expected to grow from 46 million to 59 million.
Thus, the absolute size of rural India is expected to be double that of urban India.

“A world of opportunity”
The Indian rural market with its vast size and demand base offers great opportunities to marketers.
Two-thirds of countries consumers live in rural areas and almost half of the national income is
generated here.

Features
Large and Scattered market: It consists of over 63 crore consumers from 5,70,000 villages spread
throughout the country.
Major income from agriculture: Nearly 60 % of the rural income is from agriculture

1

Traditional Outlook: The rural consumer values old customs and tradition. They do not prefer
changes.

Challenges
1. Underdeveloped People: Vast majorities of the rural people are tradition bound, and
believe in old customs, traditions, and habits.
2. Lack of Proper Physical Communication Facilities: Physical communication of the villages is
highly expensive. Even today most villages in the eastern parts of the country are
inaccessible during the monsoon.
3. Many Languages and Dialects: The number of languages and dialects vary widely from state
to state, region to region and probably from district to district. The messages have to be...