India’s rural market, which accommodates approximately seventy percent (70%) of the population in India has been historically overlooked. Several factors have contributed to this ‘step-motherly’, despite it being the biggest untapped potential.

1.  Inadequate infrastructure, poor road connectivity and limited access to electricity and water supply

2.  A major lack of access to finance, resulting in rural inhabitants failing to access loans or financial services due to strict lending conditions, plus an absence of meaningful alternatives

3.  A general lack of knowledge about products and/or services on the part of consumers, as well as a lack of drive by the business to educate and limited educational resources 

So what has changed in the recent years that led businesses to rural markets? 

Proactive initiatives aimed at addressing aforementioned issues have led to significant changes in the rural marketing landscape over the past few years. 

The NSSO report showed that the average monthly per capita expenditure (MPCE) in rural areas increased by 17% in the past decade. This increase in disposable income has resulted in higher demand for consumer goods and services, thereby pushing market growth. Another major factor responsible for growth in the rural market is connectivity infrastructure improvement - roads and internet. 

Pradhan Mantri Gram Sadak Yojana (PMGSY) and Digital India Program are some of the projects that were undertaken by the Indian Government, which aimed at providing all-weather raod connectivity and high-speed internet to rural areas previoously unconnected. 

The Government financial inclusion intitiatives, like Pradhan Mantri Jan Dhan Yojana (PMJDY), that focused ensuring that every household had basic banking and financial services greatly contributed towards an uplift in rural markets by helping inhabitants participate in tge national economy Strategic invetments in rural market by a major player in the lubricant industry demonstrates why investing in these neglected areas can be very lucrative. To address the rising number of vehicles and agricultural machinery, they decided to establish sub-distributors and expanded their distribution network across the country to cover more than 70,000 retail outlets, thereby increasing product availability and visibility in rural areas. 

It is a well-established fact that transposing urban strategies to rural consumers is not going to work. If a business is looking to establish its presence within the rural market, they should tailor their strategies to serve the needs of their rural consumers precisely. The following pointers, uncovered during our research, are some of the examples of how some industry-leading brands maneuvered around stumbling blocks and turned them into opportunities, thereby bridging the gap between urban and rural markets. 

Local Retail Partnerships 

For a brand that’s looking to effectively penetrate the rural markets, it must develop a strong relationship with local retailers. It is these retailers who serve as the critical link between brands and consumers; therefore, they are important partners in creating product awareness and driving sales. 

By partnering with small shop owners in rural areas, a leading brand within the lubricant industry has successfully penetrated the rural market by utilizing their extensive network. As a part of their partnership, they conducted a comprehensive training campaign where they created a training module for merchants on products specifications and benefits, enabling merchants to be their mouthpiece while also letting the consumers have a better product. 

Customized packaging 

Consequently, designing tailor-made packaging for the rural consumers can have a huge impact Affordability and Convenience is king. Rural market - driven packaging can have a huge impact on the rate at which the product is adopted. 

This insight led India’s leading beverage company to introduce smaller bottles, priced at ₹5, instead of ₹10 for the larger one. This seemingly small difference of just ₹5 was enough to nudge rural consumers into buying the smaller bottle as they are highly sensitive to pricing. 

Hyperlocal Marketing 

Address rural consumers in their language. Aligning marketing materials with rural consumer’s preferred language and cultural preferences guarantees powerful and convincing messaging. 

A top brand has effectively implemented this strategy by creating advertisements, brochures, and promotional content in various regional languages, which in turn makes the marketing material less intimidating. This way of doing things has significantly that brand’s relationship with rural inhabitants who find a copy, that is catered to their language and cultural preference, more stirring and led to increased brand loyalty and market share.