Affordability, access and availability must drive any rural marketing initiative. Affordability implies that products must remain simple and functional so that costs are low. Since the needs of rural customers are somewhat different, design/technology can be a powerful enabler. In recent times, rural India has fascinated marketers. But success has been hard to come by. What can marketers do to exploit the mouth-watering opportunities in rural areas? This article looks into the facets of rural marketing with examples.

In recent times, rural India has fascinated marketers. But success has been hard to come by. What can marketers do to exploit the mouth-watering opportunities in rural areas? CK Prahalad in his recent book, The Fortune at the Bottom of the Pyramid, has offered many useful insights. The companies which will succeed are the ones who will look at rural areas as an opportunity, rather than as a compulsion. Many companies go into rural markets as growth in their current markets slows down. Typically, they offer a watered down version of their existing product at a lower price. Prahalad has argued that rural customers look for value, and not just the price. So getting the price value proposition correct is critical. That calls for a bottom-up approach where the marketing mix is designed specifically for rural markets, taking into account the lack of infrastructure, the tougher environment and the need for conserving limited resources, such as water.

Affordability, access and availability must drive any rural marketing initiative. Affordability implies that products must remain simple and functional so that costs are low. Affordability means making the products available in the form and quantity that the customers want. Products must be accessible to the general public at a time and place convenient to customers. In rural markets, purchasing power varies from day to day and season to season. So products should be available when the people have the money to buy, such as during the harvest season.

But as mentioned earlier, driving consumption in rural areas is not just about lowering prices and increasing volumes. It is also about product innovation. Substantial R&D work is needed to align product features with consumer tastes and preferences. Rural markets cannot be effectively tapped by diluting current versions sold in urban/developed markets. What marketers need to do is to combine advanced technology creatively with existing infrastructure. Marketers must also appreciate that the functionality needed in rural markets may very well be different from what is offered in urban markets.

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