A rural marketing strategy refers to planning an adequate supply of consumer goods and other agricultural inputs to the villages at affordable prices. Rural markets have a high potential and generate huge sales volume for companies that manufacture cost-efficient products and have active supply chain management.
In rural markets, most products that belong to spurious brands have a predominance. These have similar names that resemble well-known brands and have penetrated the rural markets due to their low prices.
A company needs to restructure its marketing strategies before entering the rural markets to suit the needs and requirements of the consumers. Rural people are mostly illiterate and have low per capita incomes, making it crucial for the marketers to craft an area-specific marketing strategy that meets the villagers’ expectations and ensures their profit.
The four A’s of rural marketing-
- Affordability: Income is meagre in rural areas, making it a deciding factor for expenses. Consumers do not spend on luxury goods and are sceptical about buying necessary products. They are concerned about spending their hard-earned money. Keeping in mind the low affordability of the rural consumers, companies should plan for small packaging of products at an economical price to snatch the attention of price-sensitive consumers.
- Availability: The regular supply of products in remote areas is another challenge that the companies face. Rural consumers are daily wage earners who spend on necessities every day. So when the product is not readily available in the rural markets, the consumers might shift to a substitute product.
- Acceptability: The product should be user-friendly so that it satisfies all the needs of the rural consumers so that they derive some value from it. Rural consumers are very concerned about their hard-earned money, and if they are willing to spend extra money for the product, it shows their acceptability towards the brand.
- Awareness: Rural consumers have low access to media and a different perspective from urban consumers. Most households do not have access to television and smartphones, which leads to unawareness. Marketers need to focus on the medium of communication that is commonly available. It will help them create brand awareness and catch the attention of potential consumers towards their product.
Rural Marketing Strategies
Product, price, place and promotion form the four components of product marketing which are crucial while crafting a strategy for rural marketing.
Product Strategies
The priority of the companies should be analysing the requirements and demands of the rural consumers. The products sold to urban consumers may not be acceptable in the villages.
Following are some factors that should be considered while framing product strategies-
- Product launch- Rural consumers, earn a meagre income during the cropping seasons, twice a year. So, one should launch the products during the harvesting seasons.
- New Product Design- The product design for an urban market may not appeal to rural consumers. Thus, the company should create a robust model for durable goods while launching it for rural consumers.
- Small Unit Low Price Packaging- Products should be packed in small units at a minimal price, keeping in mind the low disposable income of rural consumers.
- Brand Name- Brand is starting to gain significance in rural markets as people become aware. However, in these markets, the visual logos and colour of the products play a significant role.
Pricing Strategies
Rural consumers are more concerned about prices than the brand name and are responsive to the price tags. The company’s pricing decisions depend on the consumer’s occupation and income.
Distribution strategies
To create a steady demand for products, the companies should ensure a regular supply of products in the rural markets. One can achieve product availability with the help of the following components-
- Local Markets
- Company Depots
- Retailers
- Redistribution stockists and clearing agents
- Delivery vans, traders, salespeople, NGO
Promotion strategies
It is the stage when the product is introduced to the market. In rural markets, the promotion mix should be planned so that rural consumers can easily understand the product features.
Marketers use a combination of the following in their strategies-
- Mass media includes radio broadcasts, tv advertisements, print and cinema.
- Personalised media- Companies hire a salesperson to perform door-to-door sales and collect information.
- Local media includes audiovisual vans, animal parades, fairs, and folk programmes.
- Advertise through paintings- Rural consumers are attracted to bright colours and pictorial descriptions of products; hence wall paintings are the best option for rural marketing.
- Hiring models or actors for promotion- Rural people are fascinated by television actors and consider them role models. Marketers thus engage infamous faces in their television commercials to promote the brand.
Apart from these, other strategies can be used, like aligning with the cultural traditions of the rural people and planning their marketing strategies accordingly or targeting a festival with their promotional campaign.