Brand Management in Rural Markets

Abstract

According to C. K. Prahalad also “four billion poor can be the engine of the next round of global trade and prosperity.†As in India maximum numbers of poor is still dual in the rural market and most of the companies like Mahindra & Mahindra, HLL, ICICI, ITC, IFFCO, etc. are focusing their operations in rural India, a new market has emerged out of the blue . In this market the customer is not only becoming aware what is available but a long term bond between the company and the consumer is developing. This relationship is taking away the traditional “features and benefit†marketing toward creating experiences for their consumers. India has more than 0.6 million villages, housing two third of its people, earning one-third of the national income. All the income groups consume FMCG products though brands will be different. They prefer to purchase form the Haats, which is good channel of distribution .Moreover some youths, are also influenced by City culture and it is also reflected in their purchasing decision. The marketer should understand the psychology of rural customers before entering into the market. The objectives of the study are to know the brand preferences of rural customers, the mode of communication in rural markets, and penetration rates for various consumer durables and non-durables.