Academic journal article International Journal of Marketing Studies

Challenges and Opportunities of Indian Rural Market

Academic journal article International Journal of Marketing Studies

Challenges and Opportunities of Indian Rural Market

Article excerpt

Abstract

Recently, the growth of the Indian economy after starting of liberalization and globalisation policy in 1991 has been substantial increase the purchasing power of the rural habitants. Since Green revolution in India, the rural areas are started to use a large quantity of consumable and non-consumable products. In this way, rural marketing has been used as a strategy to combat against the competition by the marketers. The rural marketing and agricultural marketing prior to globalisation of Indian economy convey the same meaning, but after wards both understand by the markets in different context-the later denotes agricultural and rural production for the urban consumer or industrial consumer, whereas rural marketing involves marketing of manufactured or processed inputs to rural consumers. These have changed the entire spectrum of marketing for the Indian rural market and force the marketers to move towards rural areas. Rural marketing in India is still at infancy stages, and faces the various types of problems in respect of marketing, product designing and positioning, pricing, distribution and promotion. Today's corporation must understand the rural market on different context to widen their business horizon, to expand their market and to exploiting the opportunities available in the rural areas. The Indian rural market is bigger and vast in size with its lager consumer base, its offers the great opportunities for the marketer and stay in tune with the rural marketing offerings. Rural marketing consists of around 833 million potential consumers, and majority of the Indian middle-class, and about half the country's disposable income. The marketer must understand the growing complexities of the rural market and making strategy for the proper mixing of marketing mix. It involves high risk and attractive for those who are searching challenge and having a courage to face those challenges. The key to face the challenges is to understand the market, the consumer need and behaviour.

Hence, it is proposed to undertake in this study to assess the various dimension of Indian rural markets. The main aim of this study is to observe the potentiality of Indian Rural Markets and finding out various problems are being faced by rural markets. This paper attempts to look into the challenges and opportunities of Indian rural marketing by adopting SWOT analysis matrix on rural markets.

Keywords: Indian rural market, marketing mix, urban market, SWOT analysis matrix, marketing challenges, marketing opportunities

1. Introduction

In a diverse market like India, Out of the total of 1210.2 million populations in India, the size of rural populations is 833.1 million which constituted 68.84% of total populations as census survey of 2011, the urban-rural divide is quite significant. During 2001-2011 the rural population increased by 90.4 million, and the number of villages increased by 2,279 in between 2001-2011. The majority of world's rural population lives in rural India. According to the 2011 census, 68.84 per cent of the population are scattered in 6, 41, 00 villages in India.

The demand and living pattern of Indian rural habitants are different and varies considerably. The cultural dimensions are also varies. These factors certainly make an impact on the need and behaviour of rural consumers. With its vast size and widespread array of consumers, marketers have been finding it difficult to understand and penetrate into rural areas, and finding difficulties to understand the norms of enter into the rural market. Rural Markets distinct from the other types of markets like stock market, commodity markets or Labour economic sand urban market. The rural market has been defined from various perspectives.

According to Census of India 2011, "Revenue villages with clear surveyed boundaries;, where the density of population is not more than 400 people per sq. metre, with at least 75% of the male population engaged in agricultural and allied activities and which does not have a municipal corporation and board. …

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